HOOD RIVER, OR--(Marketwire - Aug 15, 2012) -  CenterPointe Community Bank (PINKSHEETS: CENP) announced 2^nd quarter earnings of $271,000 ($0.23 per diluted share) and year-to-date earnings of $592,000 ($0.50 per diluted share) for the period ending June 30, 2012. These results include the recognition of a deferred tax benefit of $125,000 for the second quarter and $250,000 for the year-to-date period.

Financial Highlights and Year-Over-Year Comparative Results:

• Total Assets $85.5 million - up 10.6%
• Gross Loans $65.9 million - up 14.2%
• Total Deposits $76.5 million - up 9.1%
• Net Interest Margin 5.18% - down 29 basis points
• Non-Interest Income up 289.7%
• Excellent Asset Quality - no loan delinquencies; no non-accrual loans; no other real estate owned
• Bank remains "Well Capitalized" - as measured by regulatory guidelines

Mahlon Vigesaa, President and Chief Executive Officer, commented, "CenterPointe continues to establish itself as the local community bank of choice here in the Columbia River Gorge region. The Bank is growing at a manageable rate while maintaining excellent loan quality and we are experiencing positive results of this success on our bottom line. While our net interest margin has declined over the past year due to the low rate economic environment it still ranks high compared to our peers. In addition, we have seen a significant increase in our non-interest income driven by our higher business volume. This has positively impacted deposit account service charges, interchange fees and fees for other banking services compared to a year ago and the Bank has not sold any investment securities." Vigesaa continued, "CenterPointe is in its fifth operating year and presently we are making significant upgrades in our technology platform that will provide for the Bank's future needs and better serve our customers. This investment has resulted in non-recurring expense of $88,000 for the quarter and $118,000 year-to-date." Vigesaa concluded, "As a result of our sustained and growing profitability the Bank has been able to partially recognize a quarterly reversal of its deferred tax asset valuation allowance resulting in a year-to-date $250,000 income tax benefit as of June 30, 2012."

ABOUT CENTERPOINTE COMMUNITY BANK
CenterPointe Community Bank (PINKSHEETS: CENP) is an Oregon chartered community bank. Initially opened September 2007, the Bank is based in Hood River, Oregon, with a second full service office located in The Dalles, Oregon. CenterPointe is the only local community bank headquartered in the Columbia River Gorge region. Its designated service area encompasses Wasco and Hood River counties in Oregon, and Klickitat County in Washington. 

Additional information about CenterPointe Community Bank, including its products, services, and banking locations, is available at www.centerpointebank.com

CENTERPOINTE COMMUNITY BANK FINANCIAL HIGHLIGHTS
(All amounts in 000's, except per share data)
(unaudited)
EARNINGS AND PER SHARE DATA
For the Three Months Ended June 30,		2012			2011			Change				% Change			For the three months ended March 31, 2012			Change				% Change
Interest income		$	1,082		$	1,115		$	(33	)		-3.0	%		$	1,063		$	20			1.8	%
Interest expense			61			88			(27	)		-30.7	%			69			(8	)		-11.6	%
Net interest income			1,021			1,027			(6	)		-0.6	%			994			28			2.8	%
Provision for loan losses			4			85			(81	)		-95.3	%			-			4			nm
Non-interest income			80			20			60			300.0	%			72			8			11.1	%
Non-interest expense			951			779			172			22.1	%			870			81			9.3	%
Pre-tax income			146			183			(37	)		-20.2	%			196			(50	)		-25.4	%
Income Tax Benefit			125			-			125			nm				125			-			0.0	%
Net income		$	271		$	183		$	88			48.1	%		$	321		$	(50	)		-15.5	%
Basic earnings per share		$	0.23		$	0.16		$	0.07			43.8	%		$	0.28		$	(0.04	)		-15.8	%
Diluted earnings per share		$	0.23		$	0.16		$	0.07			43.8	%		$	0.27		$	(0.04	)		-15.7	%
Average shares outstanding - basic			1,165,413			1,146,116			19,297			1.7	%			1,161,409			4,004			0.3	%
Average shares outstanding - diluted			1,175,591			1,149,214			26,377			2.3	%			1,172,033			3,558			0.3	%
For the Six Months Ended June 30,
Interest income		$	2,145		$	2,096		$	49			2.3	%
Interest expense			131			182			(51	)		-28.0	%
Net interest income			2,014			1,914			100			5.2	%
Provision for loan losses			4			105			(101	)		-96.2	%
Non-interest income			152			39			113			289.7	%
Non-interest expense			1,820			1,596			224			14.0	%
Pre-tax income			342			252			90			35.7	%
Income Tax Benefit			250			-			250			nm
Net income (loss)		$	592		$	252		$	340			134.9	%
Basic earnings per share		$	0.51		$	0.22		$	0.29			131.8	%
Diluted earnings per share		$	0.50		$	0.22		$	0.28			127.3	%
Average shares outstanding - basic			1,163,411			1,143,096			20,315			1.8	%
Average shares outstanding - diluted			1,178,485			1,146,455			32,030			2.8	%

SELECTED FINANCIAL RATIOS
(annualized)
For the Three Months Ended June 30,		2012			2011			Change			For the three months ended March 31, 2012			Change
Net interest margin		5.14	%		5.59	%		(0.45	)		5.17	%		(0.03	)
Return on average equity		12.87	%		10.67	%		2.20			15.90	%		(3.03	)
Return on average assets		1.28	%		0.95	%		0.33			1.57	%		(0.29	)
Efficiency ratio (1)		86.38	%		74.40	%		11.98			81.61	%		4.77
For the Six Months Ended June 30,
Net interest margin		5.18	%		5.47	%		(0.29	)
Return on average equity		14.43	%		7.48	%		6.95
Return on average assets		1.43	%		0.69	%		0.74
Efficiency ratio (1)		84.03	%		81.72	%		2.31

 

Notes:

(1) Non-interest expense divided by net interest income plus non-interest income

nm = not meaningful

CENTERPOINTE COMMUNITY BANK FINANCIAL HIGHLIGHTS
(All amounts in 000's, except per share data)
(unaudited)
BALANCE SHEET
At June 30,		2012				2011				Change				% Change		Balance Sheet at March 31, 2012				Change				% Change
Cash and due from banks		$	3,985			$	2,123			$	1,862			87.7	%	$	1,741			$	2,244			128.8	%
Interest bearing bank balances			2,229				1,500				729			48.6	%		2,489				(261	)		-10.5	%
Fed funds sold			-				6,375				(6,375	)		-100.0	%		2,800				(2,800	)		-100.0	%
Investment securities, available-for-sale			10,338				8,600				1,738			20.2	%		13,801				(3,463	)		-25.1	%
Gross loans			65,955				57,762				8,193			14.2	%		60,623				5,332			8.8	%
Allowance for loan losses			(742	)			(718	)			(24	)		3.3	%		(736	)			(6	)		0.8	%
Loans, net of allowance for loan losses			65,213				57,044				8,169			14.3	%		59,887				5,326			8.9	%
Other assets			3,787				1,720				2,067			120.2	%		3,719				68			1.8	%
Total assets		$	85,552			$	77,362			$	8,190			10.6	%	$	84,438			$	1,114			1.3	%
Non-interest-bearing deposits		$	28,607			$	27,527			$	1,080			3.9	%	$	29,268			$	(661	)		-2.3	%
Interest-bearing deposits			47,965				42,653				5,312			12.5	%		46,598				1,367			2.9	%
Total deposits			76,572				70,180				6,392			9.1	%		75,866				706			0.9	%
Borrowings			-				-				-			0.0	%		-				-			0.0	%
Other liabilities			274				145				129			88.7	%		185				89			48.1	%
Stockholders' equity			8,706				7,037				1,669			23.7	%		8,387				319			3.8	%
Total liabilities and stockholders' equity		$	85,552			$	77,362			$	8,190			10.6	%	$	84,438			$	1,114			1.3	%
Period end shares outstanding			1,165,438				1,146,515				18,923			1.7	%		1,165,299				(139	)		0.0	%
Book value per share		$	7.47			$	6.14			$	1.33			21.7	%	$	7.20			$	0.27			3.8	%

 

For the Three Months Ended June 30,			2012				2011				Change			% Change			For the three months ended March 31, 2012				Change			% Change
Average fed funds sold and investments		$	17,563			$	15,216			$	2,347			15.4	%	$	18,681			$	(1,118	)		-6.0	%
Average loans, gross			62,353				58,738				3,615			6.2	%		58,669				3,684			6.3	%
Average total assets			85,203				77,087				8,116			10.5	%		82,186				3,017			3.7	%
Average non-interest-bearing deposits			25,791				24,795				996			4.0	%		26,591				(800	)		-3.0	%
Average interest-bearing deposits			50,554				45,159				5,395			11.9	%		46,617				3,938			8.4	%
Average total deposits			76,345				69,954				6,391			9.1	%		73,208				3,138			4.3	%
Average total borrowings			64				-				64			nm			647				(583	)		-90.1	%
Average stockholders' equity			8,466				6,895				1,571			22.8	%		8,120				346			4.3	%
For the Six Months Ended June 30,
Average fed funds sold and investments		$	18,122			$	14,371			$	3,751			26.1	%
Average loans, gross			60,522				56,327				4,195			7.4	%
Average total assets			83,694				73,834				9,860			13.4	%
Average non-interest-bearing deposits			26,191				22,000				4,191			19.1	%
Average interest-bearing deposits			48,585				44,750				3,835			8.6	%
Average total deposits			74,776				66,750				8,026			12.0	%
Average total borrowings			355				-				355			nm
Average stockholders' equity			8,293				6,813				1,480			21.7	%