Centrue Financial narrowed its losses despite the deterioration of three problems loans in the third quarter.
The St. Louis company reported Tuesday a net loss of $3.3 million in the quarter; it was 30% smaller than a year earlier.
Centrue’s provision for loan losses was $5.75 million, up 140% from a year earlier. Nonperforming assets totaled $75.3 million, up 11% from the second quarter, and made up 8.33% of its assets. A year earlier the company’s nonperforming assets made up 8.02% of assets. Centrue has assets of $904 million.
Mortgage-related income and the sale of securities pushed noninterest income to $3.8 million for the quarter, up 52% from a year earlier.
Expenses decreased 31% to $8.5 million, primarily because of a $4.5 million valuation adjustment to the company’s portfolio of other real estate owned.
Centrue has applied to the Securities and Exchange Commission to deregister it shares of common stock, according to a press release. The Jumpstart Our Business Startups Act, which was enacted in April, allows bank holding companies with fewer than 1,200 shareholders to end reporting to the SEC as a way to reduce the cost of business. Centrue’s stock will continue to be traded over the counter under the ticker TRUE.PK.
Meanwhile, the Treasury Department has notified Centrue that the $32.6 million of preferred stock it issued to the government as part of the Troubled Asset Relief Program may be placed into a pooled Dutch auction, the release said.