CenterPointe Community Bank Reports 2nd Quarter Profit


HOOD RIVER, OR--(Marketwire - July 21, 2010) - CenterPointe Community Bank (OTCBB: CENP), headquartered in Hood River, Oregon, announced its first profitable quarter since opening for business nearly three years ago. The Bank reported earnings of $36,000 for the quarter ended June 30, 2010.

Financial Highlights:

--  Total Assets $69.1 million -- up 14.1% from December 31, 2009
--  Gross Loans $54.8 million -- up 35.1% from December 31, 2009
--  Total Deposits $62.8 million -- up 14.6% from December 31, 2009
--  Capital -- considered "Well Capitalized" under regulatory guidelines
--  Annualized Net Interest Margin 4.96% -- a key indicator of
    profitability, reflects improving trend and compares favorably to our
    peers

"This is a key milestone in CenterPointe Community Bank's short history of just under three years," said Steve Benton, founding director and Chairman of the Board of Directors. Adding further, "The success of our start up independent bank has come about from a very supportive and diverse customer base that calls the Columbia River Gorge region home. Though we are small in size, with two office locations we think of ourselves as a Gorge-area regional bank; our board of directors, management team and employees are active residents in their respective Gorge communities that include Dufur, White Salmon, The Dalles and Hood River."

CenterPointe Community Bank initially opened in Hood River in September 2007 and opened its second office in The Dalles in July 2008. As of June 30, 2010, the Bank had total assets of $69.1 million which represents a growth of $8.6 million (14.1%) since year end 2009 and $28.2 million (69.0%) over the twelve month period ending June 30, 2010. Gross loans totaled $54.8 million, a growth of $14.0 million (35.1%) since year end and $25.7 million (88.0%) over the past twelve months. Total deposits were $62.8 million, $8.0 million (14.6%) higher than at year end 2009 and $28.3 million or 82.0% growth since a year ago.

Mahlon Vigesaa, a founding director and CenterPointe's President and Chief Executive Officer, announced, "We are delighted to report that CenterPointe has achieved sustainable break-even operations. Achieving break-even in less than three years, especially given the economic environment of the last two years, is remarkable. The support of the Gorge community has been incredible and we look forward to further serving the banking needs of local businesses and individuals while reinvesting the Bank's deposits back into the local economy as the primary lender to the region's business and agriculture community."

"The Bank has grown steadily since opening and hit its break-even level of loan and deposit volume at the end of the first quarter 2010," according to Jim Fortner, Executive Vice President and Chief Financial Officer. "Our net interest margin has been improving steadily; our year-to-date net interest margin of 4.96% (annualized) compares very well to our peers; and our 2nd quarter net interest margin at an annualized rate of 5.18% reflects further progress towards solidifying our overall profitability. This means that the Bank is and will continue to operate as 'well capitalized' by regulatory standards and in a manner that provides for the safety and security concerns that depositors are looking for when choosing where to bank."

Adding to the safety and soundness of CenterPointe Community Bank is its strong asset quality. Britt Thomas, Executive Vice President and Chief Credit Officer, indicated, "We have no delinquencies or problem credits in our loan portfolio and our allowance for loan losses at $637,000, or 1.16% of our outstanding gross loans, is sufficient to absorb the inherent risk that exists within the portfolio. While the national media portrays that banks are not lending, our loan growth reflects that we are indeed making loans and meeting the credit needs of our community. At CenterPointe, our expertise is in business lending. We have lending staff in Hood River and The Dalles that are prepared to respond to the credit needs of local business, Ag producers and for owner-occupied commercial real estate transactions. In addition, our loan decisions are made locally, not in Portland or out-of-state. This assures local business owners access to the Bank's decision makers and the benefit of a quick response on their loan request."

ABOUT CENTERPOINTE COMMUNITY BANK

CenterPointe Community Bank (OTCBB: CENP) is a Columba River Gorge based, State of Oregon chartered and FDIC insured community bank. Initially opened September 2007, the Bank is headquartered in Hood River, Oregon, with a second full service branch office located in The Dalles, Oregon. CenterPointe Community Bank 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 State.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements about CenterPointe Community Bank that are intended to be covered under the "Safe-Harbor" provisions of Federal securities laws and which management believes are a benefit to shareholders and the general public. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from a given forward-looking statement. The reader should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. We make forward-looking statements in this press release about the prospects for earnings growth, deposit and loan growth, capital levels, the effective management of our credit quality, the collectability of loans that may become identified as non-performing, real estate market conditions and the adequacy of our Allowance for Loan Losses.

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
For the                                           Three
 Three                                            Months
 Months                                           Ended
 Ended                                     %     March 31,            %
 June 30,    2010       2009     Change  Change    2010     Change  Change
           ---------  ---------  ------  ------  ---------  ------  ------

Interest
 income    $     931  $     592  $  339    57.3% $     809  $  122    15.1%
Interest
 expense         145        158     (13)   -8.2%       147      (2)   -1.4%
           ---------  ---------  ------          ---------  ------
Net
 interest
 income          786        434     352    81.1%       662     124    18.7%
Provision
 for loan
 losses           63         31      32   103.2%        64      (1)   -1.6%
Non-interest
 income           30         13      17   130.8%        82     (52)  -63.4%
Non-interest
 expense         717        734     (17)   -2.3%       731     (14)   -1.9%
           ---------  ---------  ------          ---------  ------
Net income
 (loss)    $      36  $    (318) $  354   111.3% $     (51) $   87   170.6%
           =========  =========  ======          =========  ======

Basic and
 diluted
 earnings
 per share $    0.03  $   (0.29) $ 0.32   110.3% $   (0.05) $ 0.08   160.0%
           =========  =========  ======          =========  ======

Average
 shares
 outstanding
 - basic
 and
 diluted   1,136,564  1,085,685  50,879     4.7% 1,085,685  50,879     4.7%


For the
 Six
 Months
 Ended
 June 30,

Interest
 income    $   1,740  $   1,089  $  651    59.8%
Interest
 expense         292        329     (37)  -11.2%
           ---------  ---------  ------
Net
 interest
 income        1,448        760     688    90.5%
Provision
 for loan
 losses          127         70      57    81.4%
Non-interest
 income          113         23      90   391.3%
Non-interest
 expense       1,448      1,469     (21)   -1.4%

           ---------  ---------  ------
Net loss   $     (14) $    (756) $  742    98.1%
           =========  =========  ======

Basic and
 diluted
 earnings
 per share $   (0.01) $   (0.70) $ 0.69    98.6%
           =========  =========  ======

Average
 shares
 outstanding
 - basic
 and
 diluted   1,116,044  1,085,685  30,359     2.8%




CENTERPOINTE COMMUNITY BANK
FINANCIAL HIGHLIGHTS
(All amounts in 000's, except per share data)
(unaudited)

                                                  Balance
BALANCE                                          Sheet at
 SHEET                                      %    March 31,             %
At June 30   2010       2009     Change  Change     2010     Change  Change
           ---------  ---------  -------  -----  ---------  -------  -----
Fed funds
 sold and
 invest-
 ments     $  11,581  $   8,224  $ 3,357   40.8% $  17,696   (6,115) -34.6%
           ---------  ---------  -------         ---------  -------
Gross
 loans        54,803     29,151   25,652   88.0%    45,682    9,121   20.0%
Allowance
 for loan
 losses         (637)      (320)    (317)  99.1%      (552)     (85)  15.4%
           ---------  ---------  -------         ---------  -------
Loans, net
 of allowance
 for loan
 losses       54,166     28,831   25,335   87.9%    45,130    9,036   20.0%
Other
 assets        3,345      3,821     (476) -12.5%     4,172     (827) -19.8%
           ---------  ---------  -------         ---------  -------
Total
 assets    $  69,092  $  40,876  $28,216   69.0% $  66,998  $ 2,094    3.1%
           =========  =========  =======         =========  =======

Non-interest-
 bearing
 deposits  $  21,589  $   8,020  $13,569  169.2% $  21,202  $   387    1.8%
Interest-
 bearing
 deposits     41,246     26,511   14,735   55.6%    39,646    1,600    4.0%
           ---------  ---------  -------         ---------  -------
Total
 deposits     62,835     34,531   28,304   82.0%    60,848    1,987    3.3%
Borrowings         -          -        -    0.0%         -        -    0.0%
Other
 liabilities     235        143       92   64.3%       176       59   33.5%
Stockholders'
 equity        6,022      6,202     (180)  -2.9%     5,974       48    0.8%
           ---------  ---------  -------         ---------  -------
Total
 liabilities
 and
 stockholders'
 equity    $  69,092  $  40,876  $28,216   69.0% $  66,998  $ 2,094    3.1%
           =========  =========  =======         =========  =======

Period end
 shares
 outstand-
 ing       1,136,564  1,085,685   50,879    4.7% 1,136,564        -    0.0%
Book value
 per share $    5.30  $    5.71  $ (0.41)  -7.2% $    5.26  $  0.04    0.8%

Allowance
 for loan
 losses:
  Balance
  beginning
  of
  period   $     488  $     250  $   238   95.2% $     488  $     -    0.0%
   Loan
    Purchase      22          -       22    0.0%         -       22    n/a
   Provision
    for loan
    losses       127         70       57   81.4%        64       63   98.4%
   Net
    (charge-offs)
    recoveries     -          -        -    0.0%         -        -    0.0%
           ---------  ---------  -------         ---------  -------
  Balance
   end of
   period  $     637  $     320  $   317   99.1% $     552  $    85   15.4%
           =========  =========  =======         =========  =======


                                                 For the
For the                                        Three Months
Three Months                                      Ended
Ended                                       %    March 31,             %
June 30      2010       2009     Change  Change    2010     Change  Change
           ---------  ---------  -------  -----  ---------  -------  -----

Average
 fed funds
 sold and
 invest-
 ments     $  11,526  $   9,468  $ 2,058   21.7% $  13,470  $(1,944) -14.4%
Average
 loans,
 gross        49,379     26,997   22,382   82.9%    43,359    6,020   13.9%
Average
 total
 assets       64,049     39,790   24,259   61.0%    60,365    3,684    6.1%
Average
 non-
 interest-
 bearing
 deposits     19,614      7,518   12,096  160.9%    15,963    3,651   22.9%
Average
 interest-
 bearing
 deposits     38,180     25,814   12,366   47.9%    38,938     (758)  -1.9%
Average
 total
 deposits     57,794     33,332   24,462   73.4%    54,901    2,893    5.3%
Average
 total
 borrowings       52          -       52     nm          -       52     nm
Average
 stockholders'
 equity        5,992      6,330     (338)  -5.3%     5,549      443    8.0%


For the Six
 Months Ended
 June 30

Average fed
 funds sold
 and
 invest-
 ments     $  12,493  $   9,565  $ 2,928   30.6%
Average
 loans,
 gross        46,386     25,266   21,120   83.6%
Average
 total
 assets       62,217     38,539   23,678   61.4%
Average
 non-
 interest-
 bearing
 deposits     17,798      6,284   11,514  183.2%
Average
 interest-
 bearing
 deposits     38,557     25,279   13,278   52.5%
Average
 total
 deposits     56,355     31,563   24,792   78.5%
Average
 total
 borrowings       26        258     (232) -89.9%
Average
 stockholders'
 equity        5,772      6,576     (804) -12.2%
GlobeNewswire