CENTRUE FINANCIAL CORP - 10-Q filing on 2012-11-13

Fair Value (Tables)

9 Months Ended

Sep. 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)
September 30, 2012
U.S. government agencies	$	7,069	$	-	$	7,069	$	-
State and political subdivisions		16,243		-		16,243		-
U.S. government agency residential
mortgage-backed securities		119,130		-		119,130		-
Collateralized mortgage obligations:
Agency		23,336		-		23,336		-
Private Label		1,083		-		-		1,083
Equities		2,683		-		2,683		-
Collateralized debt obligations:
Single Issue		2,064		-		2,064		-
Pooled		7,888		-		-		7,888
Corporate		2,000		-		2,000		-
Available-for-sale securities	$	181,496	$	-	$	172,525	$	8,971

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, July 1	$	6,977	$	1,280	$	5,470	$	3,004

Transfers into Level 3		-		-		-		-
Total gains or losses (realized/unrealized) included in earnings
Security impairment		-		-		-		-
Payment received		(75)		(155)		(1)		(955)
Other changes in fair value		-		-		-		1
Included in other comprehensive income		986		(42)		294		128
Ending Balance, September 30	$	7,888		1,083		5,763		2,178

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		(240)		(472)		14		(3,117)
Other changes in fair value		1		1		3		2
Included in other comprehensive income		1,527		4		1,823		357
Ending Balance, September 30	$	7,888	$	1,083	$	5,763	$	2,178



	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)

Impaired loans			Sales comparison approach	Adjustment for differences between comparable sales
Commercial
Closed End	$	1,785			20% - 100% (30%)
Line of Credit		1,171			20% - 100% (30%)
Agricultural & AGRE		85			10% - 55% (12%)
CRE - Construction, land & development		9,936			10% - 55% (14%)
CRE - all other
Owner occupied		6,579			10% - 55% (18%)
Non-owner occupied		7,028			10% - 55% (18%)
1-4 family residential
Senior lien		5,707			10% - 50% (16%)
Junior lien & lines of credit		102			20% - 100% (51%)
Consumer		-			0% - 60% (0%)

Note 9. Fair Value (Continued)



	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		7,963			8% - 55% (17%)
CRE - all other
Owner occupied		2,100			15% - 55% (15%)
Non-owner occupied		3,755			10% - 55% (13%)
1-4 family residential
Senior lien		72			6% - 55% (12%)
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)
September 30, 2012
Impaired loans
Commercial
Closed end	$	1,785	$	-	$	-	$	1,785
Line of credit		1,171		-		-		1,171
Agricultural & AGRE		85		-		-		85
CRE - construction, land & development		9,936		-		-		9,936
CRE - all other
Owner occupied		6,579		-		-		6,579
Non-owner occupied		7,028		-		-		7,028
1-4 family residential
Senior lien		5,707		-		-		5,707
Junior lien & lines of credit		102		-		-		102
Consumer		-		-		-		-



			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		7,963		-		-		7,963
CRE - all other
Owner occupied		2,100		-		-		2,100
Non-owner occupied		3,755		-		-		3,755
1-4 family residential
Senior lien		72		-		-		72
Junior lien & lines of credit		-		-		-		-
Consumer		-		-		-		-

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
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



			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 September 30, 2012 Using
	Carrying Value		Level 1		Level 2		Level 3		Total

Financial assets
Cash and cash equivalents	$	79,423	$	74,423	$	5,000	$	-	$	79,423
Securities		181,496		-		172,525		8,971		181,496
Restricted securities		7,028		-		-		-		NA
Net loans		540,406		-		-		527,836		527,836
Accrued interest receivable		3,003		-		813		2,190		3,003
Financial liabilities
Deposits	$	782,597	$	-	$	784,872	$	-	$	784,872
Federal funds purchased and
securities sold under
agreements to repurchase		16,669		-		16,669		-		16,669
Federal Home Loan Bank advances		30,057		-		31,333		-		31,333
Notes payable		10,345		-		-		10,375		10,375
Subordinated debentures		20,620		-		-		12,792		12,792
Series B mandatorily redeemable
preferred stock		268		-		268		-		268
Accrued interest payable		4,189		-		762		3,427		4,189

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	$	1,083	Collateral coverage	Probability of loss	0% - 40% (34%)
				Coverage ratio	5% - 5% (5%)

Collateralized debt obligations	$	7,888	Discounted cash flow	Collateral default rate	4% - 30% (8%)
				Discount rate	3% - 5% (3%)