CenterPointe Community Bank Reports Second Quarter Earnings

HOOD RIVER, OR--(Marketwire - Aug 3, 2011) - CenterPointe Community Bank (PINKSHEETS: CENP) announced 2^nd quarter earnings of $183,000 ($0.16 per share) and year-to-date earnings of $252,000 ($0.22 per share) for the period ending June 30, 2011.

Financial Highlights and Year-Over-Year Comparative Results:

• Total Assets $77.4 million - up 12.0%
• Gross Loans $57.8 million - up 5.4%
• Total Deposits $70.2 million - up 11.7%
• Net Interest Margin 5.57% - up 39 basis points
• Excellent Asset Quality - no loan delinquencies; no non-accrual loans; no other real estate owned
• Bank remains "Well Capitalized" - as measured by regulatory guidelines

In announcing CenterPointe's fifth consecutive quarterly profit, Mahlon Vigesaa, President and Chief Executive Officer, said, "Despite the economic climate CenterPointe is achieving overall growth and the Bank's operating metrics are positive." Adding further, "We are very happy with our progress in attracting new customers and growing our local deposit base; although loan demand remains soft, CenterPointe has increased its loan volume and has plenty of funding capacity for making business and agricultural loans to creditworthy borrowers in the Columbia River gorge region."

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,		2011			2010				Change				% Change			For the three months ended March 31, 2011			Change				% Change
Interest income		$	1,115		$	931			$	184			19.8	%		$	981		$	134			13.7	%
Interest expense			88			145				(57	)		-39.3	%			94			(6	)		-6.4	%
Net interest income			1,027			786				241			30.7	%			887			140			15.8	%
Provision for loan losses			85			63				22			34.9	%			20			65			325.0	%
Non-interest income			20			30				(10	)		-33.3	%			19			1			5.3	%
Non-interest expense			779			717				62			8.6	%			817			(38	)		-4.7	%
Net income		$	183		$	36			$	147			408.3	%		$	69		$	114			165.2	%
Basic and diluted earnings per share		$	0.16		$	0.03			$	0.13			433.3	%		$	0.06		$	0.10			166.7	%
Average shares outstanding - basic and diluted			1,146,116			1,136,564				9,552			0.8	%			1,140,044			6,072			0.5	%
For the Six Months Ended June 30,
Interest income		$	2,096		$	1,740			$	356			20.5	%
Interest expense			182			292				(110	)		-37.7	%
Net interest income			1,914			1,448				466			32.2	%
Provision for loan losses			105			127				(22	)		-17.3	%
Non-interest income			39			113				(74	)		-65.5	%
Non-interest expense			1,596			1,448				148			10.2	%
Net income (loss)		$	252		$	(14	)		$	266			nm
Basic and diluted earnings per share		$	0.22		$	(0.01	)		$	0.23			nm
Average shares outstanding - basic and diluted			1,143,096			1,116,044				27,052			2.4	%

SELECTED FINANCIAL RATIOS
(annualized)											For the three
											months ended
For the Three Months Ended June 30,		2011			2010			Change			March 31, 2011			Change
Net interest margin		5.57	%		5.18	%		0.39			5.34	%		0.23
Return on average equity		10.65	%		2.41	%		8.24			4.16	%		6.49
Return on average assets		0.95	%		0.23	%		0.72			0.40	%		0.55
Efficiency ratio (1)		74.40	%		87.87	%		(13.47	)		90.18	%		(15.78	)
For the Six Months Ended June 30,
Net interest margin		5.46	%		4.96	%		0.50
Return on average equity		7.46	%		-0.49	%		7.95
Return on average assets		0.69	%		-0.05	%		0.74
Efficiency ratio (1)		81.72	%		92.76	%		(11.04	)
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,		2011				2010				Change				% Change			Balance Sheet at March 31, 2011				Change				% Change
Cash and due from banks		$	2,123			$	1,583			$	540			34.1	%		$	1,512			$	611			40.4	%
Time certificates of deposit with other banks			1,496				3,592				(2,096	)		-58.4	%			1,248				248			19.9	%
Fed funds sold			6,375				3,780				2,595			68.7	%			9,360				(2,985	)		-31.9	%
Investment securities, available-for-sale			8,600				4,209				4,391			104.3	%			7,942				658			8.3	%
Gross loans			57,762				54,803				2,959			5.4	%			56,437				1,325			2.3	%
Allowance for loan losses			(718	)			(637	)			(81	)		12.7	%			(634	)			(84	)		13.2	%
Loans, net of allowance for loan losses			57,044				54,166				2,878			5.3	%			55,803				1,241			2.2	%
Other assets			1,724				1,762				(38	)		-2.2	%			1,795				(71	)		-4.0	%
Total assets		$	77,362			$	69,092			$	8,270			12.0	%		$	77,660			$	(298	)		-0.4	%
Non-interest-bearing deposits		$	27,527			$	21,589			$	5,938			27.5	%		$	23,672			$	3,855			16.3	%
Interest-bearing deposits			42,653				41,246				1,407			3.4	%			46,562				(3,909	)		-8.4	%
Total deposits			70,180				62,835				7,345			11.7	%			70,234				(54	)		-0.1	%
Borrowings			-				-				-			0.0	%			-				-			0.0	%
Other liabilities			145				235				(90	)		-38.3	%			635				(490	)		-77.2	%
Stockholders' equity			7,037				6,022				1,015			16.9	%			6,791				246			3.6	%
Total liabilities and stockholders' equity		$	77,362			$	69,092			$	8,270			12.0	%		$	77,660			$	(298	)		-0.4	%
Period end shares outstanding			1,146,515				1,136,564				9,951			0.9	%			1,145,264				(1,251	)		-0.1	%
Book value per share		$	6.14			$	5.30			$	0.84			15.8	%		$	5.93			$	0.21			3.5	%
For the Three Months Ended June 30,		2011				2010				Change				% Change			For the three months ended March 31, 2011				Change				% Change
Average fed funds sold and investments		$	15,216			$	11,526			$	3,690			32.0	%		$	13,517			$	1,699			12.6	%
Average loans, gross			58,738				49,379				9,359			19.0	%			53,889				4,849			9.0	%
Average total assets			77,087				64,049				13,038			20.4	%			70,544				6,543			9.3	%
Average non-interest-bearing deposits			24,795				19,614				5,181			26.4	%			19,174				5,621			29.3	%
Average interest-bearing deposits			45,159				38,180				6,979			18.3	%			44,337				822			1.9	%
Average total deposits			69,954				57,794				12,160			21.0	%			63,511				6,443			10.1	%
Average total borrowings			-				52				(52	)		-100.0	%			-				0			0.0	%
Average stockholders' equity			6,895				5,992				903			15.1	%			6,731				164			2.4	%
For the Six Months Ended June 30,
Average fed funds sold and investments		$	14,371			$	12,493			$	1,878			15.0	%
Average loans, gross			56,327				46,386				9,941			21.4	%
Average total assets			73,834				62,217				11,617			18.7	%
Average non-interest-bearing deposits			22,000				17,798				4,202			23.6	%
Average interest-bearing deposits			44,750				38,557				6,193			16.1	%
Average total deposits			66,750				56,355				10,395			18.4	%
Average total borrowings			-				26				(26	)		-100.0	%
Average stockholders' equity			6,813				5,772				1,041			18.0	%