Centrix Bank Reports Record Net Income in 2010

BEDFORD, N.H., Feb. 16, 2011 /PRNewswire/ -- Centrix Bank (OTC Bulletin Board: CXBT), a full service commercial bank serving small and medium-sized businesses and professionals, municipalities and not-for-profits, today announced record annual net income, assets, loans and deposits in 2010.

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For the year ended December 31, 2010, net income available to common shareholders increased 80% to $5.4 million or $1.75 per common share (diluted), as compared to net income available to common shareholders of $3.0 million or $0.99 per common share (diluted) in 2009. This increase reflected favorable net interest income due to balance sheet growth, gains recorded on the sale of select investment securities, and a decrease in the Bank's provision for loan losses. Excluding these gains, net income available to common shareholders in 2010 would have totaled a record $4.6 million or $1.48 per common share (diluted).

"Hard work, commitment to exceptional service, and a strong credit culture enabled Centrix to continue a decade-long trend of growth," said Joseph B. Reilly, President/CEO. "We closed new loans, expanded customer relationships and worked with customers to address their financial and business needs in a challenging economy. Our focus on relationship banking resulted in meaningful deposit growth, which supported lending and contributed to a net interest margin of 3.77% for the year."

For the quarter ended December 31, 2010, the Bank reported net income available to common shareholders of $957,000 or $0.31 per common share (diluted), compared with $1.2 million or $0.40 per common share (diluted) for the same period in the prior year. This decrease resulted primarily from a compressed net interest margin occurring late in 2010 and an increased provision for loan losses. "The increased provision for loan losses in this last quarter, as compared to the same period in 2009, is attributed almost exclusively to a small number of loan relationships," explained Reilly.

Total assets at December 31, 2010 were $683.8 million, up 16% from $591.3 million at December 31, 2009, reflecting growth of $92.5 million. Net loans grew to $450.2 million at December 31, 2010 from $409.2 million at December 31, 2009, an increase of 10%. Additionally, at December 31, 2010, the Bank had $26.6 million in loans held for sale, compared with $13.3 million at December 31, 2009. Deposits at December 31, 2010 rose 13% to $555.0 million, compared to $491.7 million at December 31, 2009.

Net loan charge-offs in 2010 were $1.0 million, compared with $738,000 in 2009. Total non-performing assets as a percentage of total assets at December 31, 2010 remained low at 0.84%, compared to 0.69% at December 31, 2009. The allowance for loan losses increased to $5.8 million at December 31, 2010, compared with $5.2 million at December 31, 2009, reflecting growth in the loan portfolio and recognition of credit risk in a weakened economic environment. The Bank's loss allowance as a percent of total loans, excluding loans held for sale, was 1.27% at year-end 2010, compared with 1.25% at year-end 2009.

Reilly concluded: "With a strong capital position, we believe Centrix Bank is well-positioned to seek out growth and lending opportunities in 2011. We see renewed economic energy, giving us reason for cautious optimism. As many of the largest banks continue to pull back from serving small businesses, we see many opportunities to meet their unique needs."

"Centrix Bank has made strategic investments in technology, infrastructure and people, including adding five experienced commercial lenders to our team in 2010. We anticipate our focus on operating efficiency will enable us to provide outstanding services while effectively managing net interest margin, despite ongoing pressures on margins. We are hopeful the signs of economic recovery we have seen will continue throughout the coming year."

A copy of the Fourth Quarter Report 2010 is available on the Bank's web site at centrixbank.com. To access the online Report, under the section titled "Investor Relations," click on "Financial Reports." For more information about financial reports, please contact Lucy T. Gobin, Senior Executive Vice President, CFO & COO at [phone] or [e-mail].

About the Company

Centrix Bank is a full service commercial bank offering highly personalized and responsive service to small to medium-sized businesses and professionals, municipalities and not-for-profits. The Bank services customers throughout southern New Hampshire from six full service offices located in Bedford, Concord, Dover, Manchester, Milford and Portsmouth, and a loan production office in Nashua. Centrix was named to USBanker magazine's "2010 Top 200 Community Banks" in the U.S., New Hampshire Business Review's "2009 Best of Business" for Local Best Bank for Small Business, Business NH magazine's 2010 NH's "100 Top Public Companies" and "2006 Business of the Year." The Company's common shares are quoted on the OTC Bulletin Board (OTCBB) under the symbol "CXBT." For more about Centrix Bank, please visit centrixbank.com or call [phone].

Forward-Looking Statements

This release contains information and "forward-looking statements" that relate to matters that are not historical facts and are usually preceded by the words: "may," "will," "should," "could," "would," "plan," "potential," "estimate," "project," "believe," "intend," "anticipate," "expect," "target," and similar expressions. These forward-looking statements are subject to significant risks, assumptions, and uncertainties. Because of these and other uncertainties, our actual results may be materially different from those described in these forward-looking statements. The forward-looking statements in this release speak only as of the date of the release, and we do not assume any obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contained in the forward-looking statements.

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Centrix Bank

CONTACT: Lucy T. Gobin, Senior Executive Vice President, CFO & COO,
[phone], [e-mail]

Web Site: http://www.centrixbank.com/