##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, DC 20549
 
 FORM 10-Q
 (Mark One)
 þ
    
    Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the Quarterly Period Ended March 31, 2006.
 or
 o
    
    Transition Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the Transition Period From  to
.
 Commission File Number 1-15025
 CENTRUE FINANCIAL CORPORATION
  Delaware
    
    36-3846489(State or Other Jurisdiction of Incorporation
    
    (I.R.S. Employer Identification Number)or Organization)303 Fountains Parkway, Fairview Heights, Illinois
    
    62208(Address of Principal Executive Offices)
    
    (Zip Code)
 (618) 624-1323
 
   þ o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer þ
 o þ




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##### 



INDEX
 PageNumberPart I. FINANCIAL INFORMATIONItem 1. Consolidated Financial Statements (Unaudited)Consolidated Balance Sheets
    
    
    3Consolidated Statements of Income and Comprehensive Income
    
    
    4Consolidated Statements of Cash Flows
    
    
    5 - 6Notes to Consolidated Financial Statements
    
    
    7 - 12Item 2. Managements Discussion and Analysis of Financial Condition
and Results of Operations
    
    
    13 - 23Item 3.
Quantitative and Qualitative Disclosures
About Market Risk
    
    
    23 - 25Item 4. Controls and Procedures
    
    
    25Part II. OTHER INFORMATIONItem 1. Legal Proceedings
    
    
    26Item 1a. Risk Factors
    
    
    26Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    26Item 3. Defaults Upon Senior Securities
    
    
    26Item 4. Submission of Matters to a Vote of Security Holders
    
    
    26 - 27Item 5. Other Information
    
    
    27Item 6. Exhibits
    
    
    27SIGNATURES
    
    
    28Certification of PEO Pursuant to Rule 13a-14(a)/15d-14(a)Certification of PFO Pursuant to Rule 13a-14(a)/15d-14(a)Certification of PEO Pursuant to 18 U.S.C. Section 1350Certification of PFO Pursuant to 18 U.S.C. Section 1350
  2




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##### Table of Contents



PART I.  FINANCIAL INFORMATION
 
 Consolidated Financial Statements (Unaudited)
 
 March 31
    
    
    December 312006
    
    
    2005(dollars in thousands)AssetsCash and due from banks
    
    $
    12,865
    
    
    $
    13,566Interest bearing due from banks and other
    
    
    1,916
    
    
    
    4,692Cash and cash equivalents
    
    
    14,781
    
    
    
    18,258Certificates of Deposit
    
    
    50
    
    
    
    50Investment Securities available-for-sale, at fair value:
    
    
    120,792
    
    
    
    125,190Loans, net of allowance for loan losses of ($4,433 and
$4,486)
    
    
    427,501
    
    
    
    428,468Loans held for sale
    
    
    2,721
    
    
    
    8,373Premises and equipment
    
    
    22,634
    
    
    
    22,579Goodwill
    
    
    14,362
    
    
    
    14,362Life insurance contracts
    
    
    9,557
    
    
    
    9,465Non-marketable equity securities
    
    
    5,065
    
    
    
    5,059Accrued interest receivable
    
    
    3,117
    
    
    
    3,248Intangible assets
    
    
    1,850
    
    
    
    1,922Real estate held for sale
    
    
    1,144
    
    
    
    1,709Other assets
    
    
    2,729
    
    
    
    2,840Total Assets
    
    $
    626,303
    
    
    $
    641,523LiabilitiesDeposits:Noninterest bearing
    
    $
    67,291
    
    
    $
    67,982Interest bearing
    
    
    425,625
    
    
    
    439,934Total Deposits
    
    
    492,916
    
    
    
    507,916Short-term borrowings
    
    
    31,037
    
    
    
    27,014Long-term borrowings
    
    
    55,422
    
    
    
    58,723Other liabilities
    
    
    3,993
    
    
    
    4,767Total Liabilities
    
    
    583,368
    
    
    
    598,420Stockholders EquityPreferred stock, $.01 par value  500,000 shares
authorized
and unissued
    
    
    
    
    
    
    Common stock, $.01 par value  5,500,000 authorized;
4,200,300 shares issued
    
    
    42
    
    
    
    42Additional paid-in capital
    
    
    31,002
    
    
    
    30,806Retained income, partially restricted
    
    
    48,085
    
    
    
    47,403Accumulated other comprehensive loss
    
    
    (1,898
    )
    
    
    (1,657
    )Unearned restricted stock (9,900 and 14,750 shares)
    
    
    (302
    )
    
    
    (346
    )Treasury stock, (1,966,361 and 1,937,361 shares), at cost
    
    
    (33,994
    )
    
    
    (33,145
    )Total Stockholders Equity
    
    
    42,935
    
    
    
    43,103Total Liabilities and Stockholders Equity
    
    $
    626,303
    
    
    $
    641,523
  3




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Three Months EndedMarch 312006
    
    
    2005(dollars in thousands)Interest income:Loans
    
    $
    7,080
    
    
    $
    6,185InvestmentsTaxable
    
    
    1,122
    
    
    
    994Tax-exempt
    
    
    170
    
    
    
    173Deposits with banks and other
    
    
    7
    
    
    
    8FHLB stock dividends
    
    
    39
    
    
    
    49Total interest and dividend income
    
    
    8,418
    
    
    
    7,409Interest expense:Deposits
    
    
    2,772
    
    
    
    1,927Short-term borrowings
    
    
    232
    
    
    
    55Long-term borrowings
    
    
    720
    
    
    
    742Total interest expense
    
    
    3,724
    
    
    
    2,724Net interest income
    
    
    4,694
    
    
    
    4,685Provision for loan losses
    
    
    75
    
    
    
    250Net interest income after provision for loan losses
    
    
    4,619
    
    
    
    4,435Noninterest income:Fee income
    
    
    1,382
    
    
    
    1,099Net gain on sale of securities
    
    
    4
    
    
    
    183Net gain (loss) on sale of real estate held for sale
    
    
    (24
    )
    
    
    1Net gain on sale of loans
    
    
    107
    
    
    
    131Increase in cash surrender value of life insurance
    
    
    92
    
    
    
    91Other
    
    
    82
    
    
    
    60Total noninterest income
    
    
    1,643
    
    
    
    1,565Noninterest expense:Compensation and benefits
    
    
    3,132
    
    
    
    2,336Occupancy, net
    
    
    463
    
    
    
    387Furniture and equipment
    
    
    282
    
    
    
    329Advertising
    
    
    90
    
    
    
    80Data processing
    
    
    344
    
    
    
    158Telephone and postage
    
    
    152
    
    
    
    171Amortization of intangibles
    
    
    72
    
    
    
    61Legal and professional fees
    
    
    162
    
    
    
    142Other
    
    
    663
    
    
    
    660Total noninterest expense
    
    
    5,360
    
    
    
    4,324Income before income taxes
    
    
    902
    
    
    
    1,676Income tax expense
    
    
    220
    
    
    
    488Net income
    
    $
    682
    
    
    $
    1,188Other comprehensive income (loss):Change in unrealized losses on available for sale securities, net
of related income taxes
    
    
    (239
    )
    
    
    (899
    )Less: reclassification adjustment for gains included in net income
net of related income taxes
    
    
    2
    
    
    
    131Other comprehensive loss
    
    
    (241
    )
    
    
    (1,030
    )Comprehensive income
    
    $
    441
    
    
    $
    158Basic earnings per share
    
    $
    0.31
    
    
    $
    0.50Diluted earnings per share
    
    $
    0.30
    
    
    $
    0.50Dividends per share
    
    $
    
    
    
    $
    
  4




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Three Months EndedMarch 312006
    
    
    2005(dollars in thousands)Operating activitiesNet income
    
    $
    682
    
    
    $
    1,188Adjustments to reconcile net income to net cash provided by
operating activities:Provision for loan losses
    
    
    75
    
    
    
    250Depreciation and amortization
    
    
    418
    
    
    
    429Net amortization on investments
    
    
    26
    
    
    
    62Amortization of intangibles
    
    
    72
    
    
    
    61Share based compensation expense
    
    
    198
    
    
    
    69Deferred income taxes
    
    
    (80
    )
    
    
    (74
    )Origination of loans held for sale
    
    
    (7,225
    )
    
    
    (6,162
    )Proceeds from sales of loans held for sale
    
    
    8,192
    
    
    
    6,391Gain on sale of loans
    
    
    (107
    )
    
    
    (131
    )Gain on sale of securities, net
    
    
    (4
    )
    
    
    (183
    )(Gain) loss on sale of real estate held for sale
    
    
    24
    
    
    
    (1
    )Increase in cash surrender value of life insurance
    
    
    (92
    )
    
    
    (91
    )Federal Home Loan Bank stock dividends
    
    
    (6
    )
    
    
    (49
    )Changes in:Accrued interest receivable
    
    
    131
    
    
    
    (187
    )Other assets and other liabilities, net
    
    
    (459
    )
    
    
    496Net cash provided by operating activities
    
    
    1,845
    
    
    
    2,068Investing activitiesPurchases of available for sale securities
    
    
    
    
    
    
    (9,786
    )Proceeds from sales of available for sale securities
    
    
    2,475
    
    
    
    11,014Proceeds from maturities of available for sale securities
    
    
    1,536
    
    
    
    4,578Proceeds from maturities of certificates of deposit
    
    
    
    
    
    
    99Proceeds from sales of real estate held for sale
    
    
    541
    
    
    
    42Net decrease in loans
    
    
    5,684
    
    
    
    281Purchases of bank premises and equipment
    
    
    (473
    )
    
    
    (1,318
    )Net cash provided by investing activities
    
    
    9,763
    
    
    
    4,910Financing activitiesNet (decrease) in deposits
    
    
    (15,000
    )
    
    
    (29,936
    )Proceeds of long-term borrowings
    
    
    19,000
    
    
    
    19,705Repayments of long-term borrowings
    
    
    (22,301
    )
    
    
    (13,388
    )Net change in short term borrowings
    
    
    4,023
    
    
    
    18,186Proceeds from exercise of stock options
    
    
    348
    
    
    
    61Tax benefits from tax deductions in excess of compensation
cost recognized
    
    
    9
    
    
    
    Purchase of treasury stock
    
    
    (1,164
    )
    
    
    (152
    )Net cash used in financing activities
    
    
    (15,085
    )
    
    
    (5,524
    )Net increase (decrease) in cash and cash equivalents
    
    
    (3,477
    )
    
    
    1,454Cash and cash equivalents  beginning of year
    
    
    18,258
    
    
    
    13,286Cash and cash equivalents  end of period
    
    $
    14,781
    
    
    $
    14,740
 5




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Three Months EndedMarch 312006
    
    
    2005(dollars in thousands)Supplemental disclosure of cash flow informationInterest paid
    
    $
    4,036
    
    
    $
    2,584Income taxes paid
    
    
    
    
    
    
    Real estate acquired in settlement of loans
    
    
    
    
    
    
    195
  6




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Three Months EndedMarch 312006
    
    
    2005(Dollars in thousands)BasicNet income
    
    $
    682
    
    
    $
    1,188Average common shares outstanding
    
    
    2,233,548
    
    
    
    2,359,235Net income per common share  basic
    
    $
    0.31
    
    
    $
    0.50DilutedNet income
    
    $
    682
    
    
    $
    1,188Average common shares outstanding
    
    
    2,233,548
    
    
    
    2,359,235Dilutive potential due to stock options
    
    
    9,297
    
    
    
    10,014Average common shares outstanding
    
    
    2,242,845
    
    
    
    2,369,249Net income per common share  diluted
    
    $
    0.30
    
    
    $
    0.50
   8




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Time
    
    
    Long-termYears Ended December 31,
    
    Deposits
    
    
    Borrowings (1)
    
    
    Total2006
    
    $
    114,134
    
    
    $
    13,041
    
    
    $
    127,1752007
    
    
    97,003
    
    
    
    31,449
    
    
    
    128,4522008
    
    
    14,585
    
    
    
    156
    
    
    
    14,7412009
    
    
    5,304
    
    
    
    10,165
    
    
    
    15,4692010
    
    
    5,843
    
    
    
    173
    
    
    
    6,016thereafter
    
    
    1,140
    
    
    
    438
    
    
    
    1,578Total
    
    $
    238,009
    
    
    $
    55,422
    
    
    $
    293,431Financial instruments whose
contract amounts represent credit
risk:Commitment to originate loans
    
    
    
    
    
    
    
    
    
    $
    1,423Commitments to extend credit
    
    
    
    
    
    
    
    
    
    
    53,334Standby letters of credit
    
    
    
    
    
    
    
    
    
    
    3,717Total
    
    
    
    
    
    
    
    
    
    $
    351,905
 
 (1)
    
    Fixed rate callable borrowings are included in the period of their modified duration
rather than in the period in which they are due. Borrowings include fixed rate callable
advances of $5 million and $2 million maturing in fiscal year 2008 and 2011 which are callable
in 2006 and variable rate prepayable advances of $20 million maturing in fiscal year 2007.
Trust preferred debentures of $10 million mature in both 2032 and 2034, but are callable in
2007 and 2009.   Continuous unrealized losses
    
    
    Continuous unrealizedexisting for less than 12
    
    
    losses existing greater thanmonths
    
    
    12 months
    
    
    TotalDescription of
    
    
    
    
    
    Unrealized
    
    
    
    
    
    
    Unrealized
    
    
    
    
    
    
    UnrealizedSecurities
    
    Fair Value
    
    
    losses
    
    
    Fair Value
    
    
    losses
    
    
    Fair Value
    
    
    lossesU.S. government
agencies
    
    $
    26,125
    
    
    $
    575
    
    
    $
    49,648
    
    
    $
    1,369
    
    
    $
    75,773
    
    
    $
    1,944Municipals
    
    
    2,339
    
    
    
    28
    
    
    
    18,811
    
    
    
    614
    
    
    
    21,150
    
    
    
    642Mortgage backed
securities
    
    
    5,093
    
    
    
    70
    
    
    
    6,279
    
    
    
    262
    
    
    
    11,372
    
    
    
    332Corporate Bonds
    
    
    
    
    
    
    
    
    
    
    1,943
    
    
    
    113
    
    
    
    1,943
    
    
    
    113Total temporarily
impaired securities
    
    $
    33,557
    
    
    $
    673
    
    
    $
    76,681
    
    
    $
    2,358
    
    
    $
    110,238
    
    
    $
    3,031
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Weighted-AverageWeighted-
    
    
    RemainingAverage
    
    
    Contractual
    
    
    AggregateOptions
    
    Shares
    
    
    Exercise Price
    
    
    Term
    
    
    Intrinsic ValueOutstanding at January 1, 2006
    
    
    223,800
    
    
    $
    25.41Granted
    
    
    
    
    
    
    Exercised
    
    
    (15,000
    )
    
    
    23.19Forfeited
    
    
    (500
    )
    
    
    27.50Outstanding at March 31, 2006
    
    
    208,300
    
    
    $
    25.52
    
    
    
    7.3
    
    
    $
    1,700,724Exercisable at March 31, 2006
    
    
    98,800
    
    
    $
    24.11
    
    
    
    5.5
    
    
    $
    743,014
   Weighted-AverageGrant DateNonvested Shares
    
    Shares
    
    Fair ValueNonvested at January 1, 2006
    
    
    120,000
    
    
    $
    26.58Granted
    
    
    
    
    
    
    Vested
    
    
    10,100
    
    
    
    23.66Forfeited
    
    
    400
    
    
    
    27.50Nonvested at March 31, 2006
    
    
    109,500
    
    
    $
    26.84
     11




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12




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ITEM 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
          13




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March 31
    
    
    December 312006
    
    
    2005
    
    
    Change(dollars in thousands)Non-accruing loans
    
    $
    3,178
    
    
    $
    3,823
    
    
    $
    (645
    )Accruing loans delinquent 90 days or
more
    
    
    
    
    
    
    
    
    
    
    Total nonperforming loans
    
    
    3,178
    
    
    
    3,823
    
    
    
    (645
    )Foreclosed assets
    
    
    1,144
    
    
    
    1,709
    
    
    
    (565
    )Troubled debt restructuring
    
    
    34
    
    
    
    35
    
    
    
    (1
    )Total nonperforming assets
    
    $
    4,356
    
    
    $
    5,567
    
    
    $
    (1,211
    )Allowance for loan losses to total loans
    
    
    1.02
    %
    
    
    1.02
    %Allowance for loan losses to
nonperforming loans
    
    
    139.49
    %
    
    
    117.33
    %Nonperforming loans to total loans
    
    
    0.73
    %
    
    
    0.87
    %Nonperforming assets to total loans
and foreclosed property
    
    
    1.00
    %
    
    
    1.26
    %Nonperforming assets to total assets
    
    
    0.70
    %
    
    
    0.87
    %
 14




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15




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Allowance for Loan Losses
 Goodwill
 Real Estate Held for Sale
 16




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Mortgage Servicing Rights
 Deferred Income Taxes
 Stock Compensation Plans
  17




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18




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Three Months Ended March 31,2006
    
    2005Average
    
    
    Interest
    
    
    
    
    
    
    Average
    
    
    InterestOutstanding
    
    
    Earned/
    
    
    Yield/
    
    
    Outstanding
    
    
    Earned/
    
    
    Yield/Balance
    
    
    Paid
    
    
    Rate
    
    
    Balance
    
    
    Paid
    
    
    Rate(Dollars in Thousands)Interest-earning assets:Loans receivable (1) (3)
    
    $
    437,951
    
    
    $
    7,114
    
    
    
    6.59
    %
    
    $
    418,584
    
    
    $
    6,206
    
    
    
    6.01
    %Investments securities (2) (3)
    
    
    123,703
    
    
    
    1,355
    
    
    
    4.44
    %
    
    
    118,761
    
    
    
    1,237
    
    
    
    4.22
    %Other interest-earning assets
    
    
    2,351
    
    
    
    7
    
    
    
    1.21
    %
    
    
    2,370
    
    
    
    8
    
    
    
    1.37
    %FHLB stock
    
    
    4,416
    
    
    
    39
    
    
    
    3.58
    %
    
    
    3,612
    
    
    
    49
    
    
    
    5.50
    %Total interest-earning assets
    
    
    568,421
    
    
    
    8,515
    
    
    
    6.08
    %
    
    
    543,327
    
    
    
    7,500
    
    
    
    5.60
    %Other assets
    
    
    64,887
    
    
    
    
    
    
    
    
    
    
    
    57,770Total assets
    
    $
    633,308
    
    
    
    
    
    
    
    
    
    
    $
    601,097Interest-bearing liabilities:Certificate accounts
    
    $
    247,967
    
    
    
    2,099
    
    
    
    3.43
    %
    
    $
    243,751
    
    
    
    1,576
    
    
    
    2.62
    %Savings deposits
    
    
    84,948
    
    
    
    139
    
    
    
    0.66
    %
    
    
    88,721
    
    
    
    133
    
    
    
    0.61
    %Demand and NOW deposits
    
    
    100,410
    
    
    
    534
    
    
    
    2.16
    %
    
    
    88,476
    
    
    
    218
    
    
    
    1.00
    %Customer repurchase agreements
    
    
    22,791
    
    
    
    151
    
    
    
    2.69
    %
    
    
    11,814
    
    
    
    55
    
    
    
    1.89
    %Borrowings
    
    
    62,383
    
    
    
    801
    
    
    
    5.21
    %
    
    
    64,148
    
    
    
    742
    
    
    
    4.69
    %Total interest-bearing liabilities
    
    
    518,499
    
    
    
    3,724
    
    
    
    2.91
    %
    
    
    496,910
    
    
    
    2,724
    
    
    
    2.22
    %Non-interest bearing demand deposits
    
    
    66,799
    
    
    
    
    
    
    
    
    
    
    
    58,018Other liabilities
    
    
    4,484
    
    
    
    
    
    
    
    
    
    
    
    2,438Total liabilities
    
    
    589,782
    
    
    
    
    
    
    
    
    
    
    
    557,366Stockholders equity
    
    
    43,526
    
    
    
    
    
    
    
    
    
    
    
    43,731Total liabilities and stockholders equity
    
    $
    633,308
    
    
    
    
    
    
    
    
    
    
    $
    601,097Net interest income
    
    
    
    
    
    $
    4,791
    
    
    
    
    
    
    
    
    
    
    $
    4,776Net interest rate spread
    
    
    
    
    
    
    
    
    
    
    3.17
    %
    
    
    
    
    
    
    
    
    
    
    3.38
    %Net earning assets
    
    $
    49,922
    
    
    
    
    
    
    
    
    
    
    $
    46,417Net yield on average interest-earning
assets (net interest margin)
    
    
    
    
    
    
    
    
    
    
    3.42
    %
    
    
    
    
    
    
    
    
    
    
    3.56
    %Average interest-earning assets to
average interest-bearing liabilities
    
    
    
    
    
    
    109.63
    %
    
    
    
    
    
    
    
    
    
    
    109.34
    %
 
 (1)
    
    Calculated including loans held for sale, and net of deferred loan fees, loan discounts,
and the allowance for losses on loans.(2)
    
    Calculated including investment securities available-for-sale and certificates of deposit.(3)
    
    Presented on a fully tax-equivalent basis, assuming a tax rate of 34%.  19




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TABLE 4 
    
    Non-interest Income and
Expense
 Three Months EndedMarch 31
    
    
    Change2006
    
    
    2005
    
    
    Amount
    
    
    Percent(dollars in thousands)Non-interest income:Fee income
    
    $
    1,382
    
    
    $
    1,099
    
    
    $
    283
    
    
    
    25.8
    %Net gain on sale of securities
    
    
    4
    
    
    
    183
    
    
    
    (179
    )
    
    
    (97.8
    )Net gain (loss) on sale of real estate held for sale
    
    
    (24
    )
    
    
    1
    
    
    
    (25
    )
    
    
    (2,500.0
    )Net gain on sale of loans
    
    
    107
    
    
    
    131
    
    
    
    (24
    )
    
    
    (18.3
    )Increase in cash surrender value of life insurance
    
    
    92
    
    
    
    91
    
    
    
    1
    
    
    
    1.1Other
    
    
    82
    
    
    
    60
    
    
    
    22
    
    
    
    36.7Total
    
    $
    1,643
    
    
    $
    1,565
    
    
    $
    78
    
    
    
    5.0
    %Non-interest expense:Compensation and benefits
    
    $
    3,132
    
    
    $
    2,336
    
    
    $
    796
    
    
    
    34.1
    %Occupancy, net
    
    
    463
    
    
    
    387
    
    
    
    76
    
    
    
    19.6Furniture and equipment
    
    
    282
    
    
    
    329
    
    
    
    (47
    )
    
    
    (14.3
    )Advertising
    
    
    90
    
    
    
    80
    
    
    
    10
    
    
    
    12.5Data processing
    
    
    344
    
    
    
    158
    
    
    
    186
    
    
    
    117.7Telephone and postage
    
    
    152
    
    
    
    171
    
    
    
    (19
    )
    
    
    (11.1
    )Amortization of Intangibles
    
    
    72
    
    
    
    61
    
    
    
    11
    
    
    
    18.0Legal and professional fees
    
    
    162
    
    
    
    142
    
    
    
    20
    
    
    
    14.1Other
    
    
    663
    
    
    
    660
    
    
    
    3
    
    
    
    0.5Total
    
    $
    5,360
    
    
    $
    4,324
    
    
    $
    1,036
    
    
    
    24.0
    %
   20




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21




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To be WellCapitalized UnderFor Capital
    
    Prompt CorrectiveActual
    
    Adequacy Purposes
    
    Action ProvisionsAmount
    
    Ratio
    
    Amount
    
    Ratio
    
    Amount
    
    Ratio(Dollars in Thousands)As of March 31, 2006Tier 1 Capital to Average AssetsCentrue Financial
    
    
    43,565
    
    
    
    7.06
    %
    
    
    24,684
    
    
    
    4.00
    %
    
    
    N/ACentrue Bank
    
    
    44,443
    
    
    
    7.28
    %
    
    
    24,408
    
    
    
    4.00
    %
    
    
    30,510
    
    
    
    5.00
    %Tier I Capital to Risk Weighted AssetsCentrue Financial
    
    
    43,565
    
    
    
    10.44
    %
    
    
    16,684
    
    
    
    4.00
    %
    
    
    N/ACentrue Bank
    
    
    46,443
    
    
    
    10.78
    %
    
    
    16,485
    
    
    
    4.00
    %
    
    
    24,727
    
    
    
    6.00
    %Total Capital to Risk Weighted AssetsCentrue Financial
    
    
    53,054
    
    
    
    12.72
    %
    
    
    33,369
    
    
    
    8.00
    %
    
    
    N/ACentrue Bank
    
    
    48,876
    
    
    
    11.86
    %
    
    
    32,970
    
    
    
    8.00
    %
    
    
    41,212
    
    
    
    10.00
    %As of December 31, 2005Tier 1 Capital to Average AssetsCentrue Financial
    
    
    43,396
    
    
    
    6.95
    %
    
    
    24,967
    
    
    
    4.00
    %
    
    
    N/ACentrue Bank
    
    
    43,773
    
    
    
    7.08
    %
    
    
    24,733
    
    
    
    4.00
    %
    
    
    30,917
    
    
    
    5.00
    %Tier I Capital to Risk Weighted AssetsCentrue Financial
    
    
    43,396
    
    
    
    10.33
    %
    
    
    16,796
    
    
    
    4.00
    %
    
    
    N/ACentrue Bank
    
    
    43,773
    
    
    
    10.49
    %
    
    
    16,696
    
    
    
    4.00
    %
    
    
    25,044
    
    
    
    6.00
    %Total Capital to Risk Weighted AssetsCentrue Financial
    
    
    52,962
    
    
    
    12.61
    %
    
    
    33,593
    
    
    
    8.00
    %
    
    
    N/ACentrue Bank
    
    
    48,259
    
    
    
    11.56
    %
    
    
    33,391
    
    
    
    8.00
    %
    
    
    41,739
    
    
    
    10.00
    %
 22




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Quantitative and Qualitative Disclosures About Market Risk
     23




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EVE RatiosMarch 31,
    
    December 31,Changes in Interest Rates
    
    2006
    
    2005300 basis point rise
    
    
    8.14
    %
    
    
    7.60
    %200 basis point rise
    
    
    8.08
    %
    
    
    7.43
    %100 basis point rise
    
    
    8.00
    %
    
    
    7.33
    %Base rate scenario
    
    
    7.36
    %
    
    
    6.86
    %100 basis point decline
    
    
    5.92
    %
    
    
    5.24
    %200 basis point decline
    
    
    4.27
    %
    
    
    3.60
    %
   24




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Controls and Procedures
  25




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PART II  OTHER INFORMATION
 
 Legal Proceedings
  
 Risk Factors
  
 Unregistered Sales of Equity Securities and Use of Proceeds
  Total Number
    
    
    Maximumof Shares
    
    
    Number ofPurchased as
    
    
    Shares that MayPart of Publicly
    
    
    Yet BeTotal Number
    
    
    
    
    
    
    Announced
    
    
    Purchased Underof Shares
    
    
    Average Price
    
    
    Plans or
    
    
    the Plans orPeriod
    
    Purchased
    
    
    Paid per Share
    
    
    Programs (1)
    
    
    Programs (1)January 1 - January 31, 2006
    
    
    8,000
    
    
    $
    26.76
    
    
    
    8,000
    
    
    
    259,298February 1 - February 28, 2006
    
    
    6,000
    
    
    
    26.80
    
    
    
    6,000
    
    
    
    253,298March 1 - March 31, 2006
    
    
    4,250
    
    
    
    26.30
    
    
    
    4,250
    
    
    
    249,048Total
    
    
    18,250
    
    
    $
    26.66
    
    
    
    18,250
    
    
    
    249,048
 
 (1)
    
    The Company announced its original stock repurchase program on October 21, 2004,
which authorizes the Company to purchase up to 20% of the shares outstanding, or 484,663.
The plan which would have expired on December 31, 2005, was extended through December 31,
2006. The Company purchased all of the shares listed above on the open market and under the
repurchase program. 
 Defaults Upon Senior Securities
  
 Submission of Matters to a Vote of Security Holders
   26




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##### Table of Contents



1.
    
    For the election of three (3) directors of the Company:NOMINEE: Thomas A. Daiber
 FOR
    
    ABSTAIN1,989,373
    
    
    29.605
  FOR
    
    ABSTAIN1,982,528
    
    
    36,450
  FOR
    
    ABSTAIN1,992,679
    
    
    26,299
 2.
    
    To approve the appointment of McGladrey & Pullen LLP as the Companys
auditors for the year ending December 31, 2006.
 FOR
    
    AGAINST
    
    ABSTAIN
    
    BROKER NON-VOTES2,004,933
    
    
    8,461
    
    
    
    5,584
    
    
    
    
 
 Other Information
  
 Exhibits
 a.
    
    Exhibits
 31.1
    
    Certification of Principal Executive Officer Pursuant to Rule
13a-14(a)/15d-14(a)31.2
    
    Certification of Principal Financial Officer Pursuant to Rule
13a-14(a)/15d- 14(a)32.1
    
    Certification of Principal Executive Officer Pursuant to 18 U.S.C.
Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.32.2
    
    Certification of Principal Financial Officer Pursuant to 18 U.S.C.
Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
 27




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SIGNATURES
  CENTRUE FINANCIAL CORPORATIONRegistrantDate: May 12, 2006
    
    
    
    /s/ THOMAS A. DAIBERPresident and Chief Executive OfficerDate: May 12, 2006
    
    
    
    /s/ JOHN A. BETTSCorporate Controller and InterimPrincipal Financial Officer
 28