CENTRUE FINANCIAL CORP - 10-Q filing on 2012-08-13

Fair Value (Tables)

6 Months Ended

Jun. 30, 2012



				Quoted Prices in		Significant		Significant
				Active Markets		Other		Unobservable
		Carrying		For Identical Assets		Observable Inputs		Inputs
		Amount		(Level 1)		(Level 2)		(Level 3)
June 30, 2012
U.S. government agencies	$	15,336	$	-	$	15,336	$	-
State and political subdivisions		16,249		-		16,249		-
U.S. government agency residential
mortgage-backed securities		153,865		-		153,865		-
Collateralized mortgage obligations:
Agency		25,342		-		25,342		-
Private Label		1,280		-		-		1,280
Equities		2,652		-		2,652		-
Collateralized debt obligations:
Single Issue		2,064		-		2,064		-
Pooled		6,977		-		-		6,977
Corporate		1,902		-		1,902		-
Available-for-sale securities	$	225,667	$	-	$	217,410	$	8,257

Note 9. Fair Value (Continued)



				Quoted Prices in		Significant		Significant
				Active Markets		Other		Unobservable
		Carrying		For Identical Assets		Observable Inputs		Inputs
		Amount		(Level 1)		(Level 2)		(Level 3)
December 31, 2011
U.S. government agencies	$	3,019	$	-	$	3,019	$	-
State and political subdivisions		18,125		-		18,125		-
U.S. government agency residential
mortgage-backed securities		177,539		-		177,539		-
Collateralized mortgage obligations:
Agency		15,527		-		15,527		-
Private Label		1,550		-		-		1,550
Equities		2,530		-		2,530		-
Collateralized debt obligations:
Single Issue		2,064		-		2,064		-
Pooled		6,600		-		-		6,600
Corporate		1,882		-		1,882		-
Available-for-sale securities	$	228,836	$	-	$	220,686	$	8,150



	Securities Available for Sale
	2012				2011
	CDOs		CMOs		CDOs		CMOs
Beginning balance, April 1	$	7,084	$	1,433	$	4,914	$	3,878

Transfers into Level 3		-		-		-		-
Total gains or losses (realized/unrealized) included in earnings
Security impairment		-		-		(107)		-
Payment received		(105)		(151)		-		(1,073)
Other changes in fair value		1		-		1		-
Included in other comprehensive income		(3)		(2)		662		199
Ending Balance, June 30	$	6,977		1,280		5,470		3,004

Note 9. Fair Value (Continued)



	Securities Available for Sale
	2012				2011
	CDOs		CMOs		CDOs		CMOs
Beginning balance, January 1	$	6,600	$	1,550	$	4,422	$	4,936

Transfers into Level 3		-		-		-		-
Total gains or losses (realized/unrealized) included in earnings
Security impairment		-		-		(499)		-
Payment received		(165)		(317)		-		(2,161)
Other changes in fair value		1		1		-		-
Included in other comprehensive income		541		46		1,547		229
Ending Balance, June 30	$	6,977	$	1,280	$	5,470	$	3,004


	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)

Impaired loans			Sales comparison approach	Adjustment for differences between comparable sales
Commercial
Closed End	$	1,731			20% - 100% (30%)
Line of Credit		1,172			20% - 100% (30%)
Agricultural & AGRE		51			10% - 55% (12%)
CRE - Construction, land & development		10,135			10% - 55% (14%)
CRE - all other
Owner occupied		8,695			10% - 55% (18%)
Non-owner occupied		7,602			10% - 55% (18%)
1-4 family residential
Senior lien		6,106			10% - 50% (16%)
Junior lien & lines of credit		217			20% - 100% (51%)
Consumer		5			0% - 60% (0%)



	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)

OREO property			Sales comparison approach	Adjustment for differences between comparable sales
Commercial
Closed End	$	-			-
Line of Credit		-			-
Agricultural & AGRE		261			10% (10%)
CRE - Construction, land & development		4,717			8% - 55% (25%)
CRE - all other
Owner occupied		2,100			15% - 55% (22%)
Non-owner occupied		3,845			10% - 55% (26%)
1-4 family residential
Senior lien		78			6% - 55% (26%)
Junior lien & lines of credit		-			-
Consumer		-			-



			Quoted Prices in		Significant		Significant
			Active Markets		Other		Unobservable
	Carrying		For Identical Assets		Observable Inputs		Inputs
	Amount		(Level 1)		(Level 2)		(Level 3)
June 30, 2012
Impaired loans
Commercial
Closed end	$	1,731	$	-	$	-	$	1,731
Line of credit		1,172		-		-		1,172
Agricultural & AGRE		51		-		-		51
CRE - construction, land & development		10,135		-		-		10,135
CRE - all other
Owner occupied		8,695		-		-		8,695
Non-owner occupied		7,602		-		-		7,602
1-4 family residential
Senior lien		6,106		-		-		6,106
Junior lien & lines of credit		217		-		-		217
Consumer		5		-		-		5

Note 9. Fair Value (Continued)



			Quoted Prices in		Significant		Significant
			Active Markets		Other		Unobservable
	Carrying		For Identical Assets		Observable Inputs		Inputs
	Amount		(Level 1)		(Level 2)		(Level 3)

OREO property
Commercial
Closed end	$	-	$	-	$	-	$	-
Line of credit		-		-		-		-
Agricultural & AGRE		261		-		-		261
CRE - construction, land & development		4,717		-		-		4,717
CRE - all other
Owner occupied		2,100		-		-		2,100
Non-owner occupied		3,845		-		-		3,845
1-4 family residential
Senior lien		78		-		-		78
Junior lien & lines of credit		-		-		-		-
Consumer		-		-		-		-



			Quoted Prices in		Significant		Significant
			Active Markets		Other		Unobservable
	Carrying		For Identical Assets		Observable Inputs		Inputs
	Amount		(Level 1)		(Level 2)		(Level 3)
December 31, 2011
Impaired loans
Commercial
Closed end	$	764	$	-	$	-	$	764
Line of credit		911		-		-		911
Agricultural & AGRE		-		-		-		-
CRE - construction, land & development		17,381		-		-		17,381
CRE - all other
Owner occupied		11,173		-		-		11,173
Non-owner occupied		7,270		-		-		7,270
1-4 family residential
Senior lien		7,005		-		-		7,005
Junior lien & lines of credit		175		-		-		175
Consumer		1		-		-		1

Note 9. Fair Value (Continued)



			Quoted Prices in		Significant		Significant
			Active Markets		Other		Unobservable
	Carrying		For Identical Assets		Observable Inputs		Inputs
	Amount		(Level 1)		(Level 2)		(Level 3)

OREO property
Commercial
Closed end	$	-	$	-	$	-	$	-
Line of credit		-		-		-		-
Agricultural & AGRE		261		-		-		261
CRE - construction, land & development		3,312		-		-		3,312
CRE - all other
Owner occupied		4,082		-		-		4,082
Non-owner occupied		829		-		-		829
1-4 family residential
Senior lien		285		-		-		285
Junior lien & lines of credit		81		-		-		81
Consumer		-		-		-		-


			Fair Value measurements at June 30, 2012 Using
	Carrying Value		Level 1		Level 2		Level 3		Total

Financial assets
Cash and cash equivalents	$	48,253	$	43,253	$	5,000	$	-	$	48,253
Securities		225,667		-		217,410		8,257		225,667
Restricted securities		7,028		-		-		-		NA
Net loans		549,674		-		-		536,094		536,094
Accrued interest receivable		2,888		-		879		2,009		2,888
Financial liabilities
Deposits	$	782,264	$	-	$	785,071	$	-	$	785,071
Federal funds purchased and
securities sold under
agreements to repurchase		17,766		-		17,766		-		17,766
Federal Home Loan Bank advances		48,057		-		49,399		-		49,399
Notes payable		10,345		-		-		10,279		10,279
Subordinated debentures		20,620		-		-		12,469		12,469
Series B mandatorily redeemable
preferred stock		268		-		268		-		268
Accrued interest payable		4,269		-		1,000		3,269		4,269

The estimated fair values of the Company’s financial instruments at December 31, 2011 are as follows:



	December 31, 2011
	Carrying Value		Fair Value

Financial assets
Cash and cash equivalents	$	69,735	$	69,735
Securities		228,836		228,836
Restricted securities		9,150		NA
Net loans		561,163		540,612
Accrued interest receivable		3,123		3,123
Financial liabilities
Deposits	$	848,638	$	849,141
Federal funds purchased and
securities sold under
agreements to repurchase		18,036		18,036
Federal Home Loan Bank advances		23,058		24,604
Notes payable		10,440		9,321
Subordinated debentures		20,620		14,023
Series B mandatorily redeemable
preferred stock		268		268
Accrued interest payable		4,041		4,041

Collateralized Mortgage Obligations And Collateralized Debt Obligations [Member]



	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)

Collateralized mortgage obligations	$	1,280	Collateral coverage	Probability of loss	0% - 40% (34%)
				Coverage ratio	5% - 5% (5%)

Collateralized debt obligations	$	6,977	Discounted cash flow	Collateral default rate	4% - 30% (8%)
				Discount rate	3% - 5% (3%)