NEWPORT BEACH, CA -- 11/03/09 --
Commerce National Bank (OTCBB: CNBF), a
community business bank in its sixth year of operation, announced its
financial results for the third quarter and first nine months of 2009.
For the three month period ended September 30, 2009, the Bank reported net
income of $105,000 as compared to a net loss of $152,000 for the same
period in 2008. For the nine month period ended September 30, 2009, the
Bank reported a net loss of $130,000 as compared to net income of $254,000
for the same period in 2008. For the three and nine month periods ended
September 30, 2009, respectively, the Bank recorded provisions for loan and
lease losses of $200,000 and $725,000 as compared to provisions of $375,000
and $702,000 for the similar periods in 2008. For the three and nine month
periods ended September 30, 2009, respectively, the Bank recognized losses
in its investment portfolio of $167,000 and $427,000 for the portion of an
investment that is considered to be Other Than Temporarily Impaired (OTTI).
For the three and nine month periods ended September 30, 2008,
respectively, the Bank recognized OTTI losses in its investment portfolio
of $359,000. For the three and nine month periods ended September 30,
2009, respectively, the Bank recorded income tax expense of $358,000 and
$195,000 as compared to the recording of income tax benefits of $207,000
and $116,000 for the similar periods in 2008. Notwithstanding the profits
for the quarter, the Bank continues to absorb losses in its investment
portfolio as a result of the continued deterioration of the mortgage
markets. The Bank continues to reserve for the loan portfolio but, at this
point, has not seen a significant deterioration in the quality of the loan
portfolio.
Net interest income decreased $321,000 and $831,000 for the three and nine
month periods ended September 30, 2009, respectively, compared to the same
periods of the prior year due to lower interest rates. Non-interest income
increased by $571,000 and $308,000 for the three and nine month periods
ended September 30, 2009, as compared to the same periods last year. The
changes in non-interest income were primarily due to fees generated by a
gain on the sale of some available-for-sale securities. For the three and
nine month periods ended September 30, 2009, non-interest expense decreased
$205,000 and $542,000, respectively, compared to the same periods in 2008.
The changes in non-interest expense were primarily due to reductions in
compensation costs in 2009.
As of September 30, 2009, the Bank reported total assets of $232.2 million,
representing a decrease of $29.7 million from September 30, 2008. Total
deposits at September 30, 2009 were $179.6 million, a decrease of $31.1
million from the prior year. The 2008 deposits were increased by a
one-time, very short term deposit for $28.5 million that was on the books
over the quarter end. Net loans at September 30, 2009 were $131.8 million,
representing a decrease of $1.2 million from the prior year. Total
shareholders' equity as of September 30, 2009 was $32.9 million, an
increase of $5.0 million from the prior year. $5.0 million of the
increased equity was in the form of TARP-CPP preferred stock that the Bank
received in January of 2009 and repaid to the U.S. Treasury in October of
2009. At September 30, 2009 the Bank had regulatory capital ratios of
13.80% for Tier 1 leverage and 22.01% for total risk-based capital and
continued to be well capitalized. After the repayment of the TARP-CPP,
these ratios were 11.69% and 18.83%, respectively, and the Bank continued
to be well capitalized.
With offices in Newport Beach near John Wayne airport and in the City of
Fullerton, the Bank is well positioned to serve businesses, professionals
and selected real estate customers in both the northern and southern areas
of Orange County. The offices are staffed by experienced business bankers
who are committed to providing exemplary service to their customers in the
business community.
Forward-Looking Statement
This news release contains statements that are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements are based on current expectations, estimates and
projections about Commerce National Bank's business based, in part, on
assumptions made by management. These statements are not guarantees of
future performance and involve risks, uncertainties and assumptions that
are difficult to predict. Therefore, actual outcomes and results may differ
materially from what is expressed or forecasted in such forward-looking
statements due to numerous factors, including those described above and the
following: Commerce National Bank's timely development of new products and
services, technological changes, changes in consumer spending and savings
habits and other risks discussed from time to time in Commerce National
Bank's reports and filings with the Office of the Comptroller of the
Currency. In addition, such statements could be affected by general
industry and market conditions and growth rates, and general domestic and
international economic conditions. Such forward-looking statements speak
only as of the date on which they are made, and Commerce National Bank does
not undertake any obligation to update any forward-looking statement to
reflect events or circumstances after the date of this release.
Condensed Statements of Operations
000's Omitted (Except Per Share Amounts) - Unaudited
Three Months Nine Months
Ended Ended
September 30, September 30,
---------------- ----------------
2009 2008 2009 2008
-------- ------- ------- -------
Interest Income $ 2,654 $ 3,064 $ 7,853 $ 8,920
Interest Expense 632 721 1,867 2,102
-------- ------- ------- -------
Net Interest Income 2,022 2,343 5,987 6,818
Provision for Loan Losses 200 375 725 702
-------- ------- ------- -------
Net Interest Income After
Provision for Loan Losses 1,822 1,968 5,262 6,116
Non Interest Income 633 62 779 471
Non Interest Expense 1,825 2,030 5,548 6,090
OTTI Charges on Investments Held 167 359 427 359
-------- ------- ------- -------
Income (Loss) Before Income Taxes 462 (359) 65 138
Income Tax Expense (Benefit) 358 (207) 195 (116)
-------- ------- ------- -------
Net Income (Loss) $ 105 ($ 152) ($ 130) $ 254
======== ======= ======= =======
Basic Earnings (Loss) Per Share $ 0.04 ($ 0.06) ($ 0.05) $ 0.10
======== ======= ======= =======
Diluted Earnings (Loss) Per Share $ 0.04 ($ 0.06) ($ 0.05) $ 0.10
======== ======= ======= =======
Condensed Statements of Financial Condition
000's Omitted - Unaudited
September 30,
--------------------
Assets 2009 2008
--------- ---------
Cash & Due From Banks $ 7,216 $ 4,214
Federal Funds Sold & Excess Balances at FRB 11,336 64,551
Investments 78,236 55,832
Loans (Net) 131,810 132,975
Other Assets 3,606 4,336
--------- ---------
Total Assets $ 232,204 $ 261,908
========= =========
Liabilities & Shareholders' Equity
Demand Deposits $ 37,677 $ 77,475
Money Market, Savings and NOW Accounts 44,483 108,437
Certificates of Deposit 97,414 24,800
--------- ---------
Total Deposits 179,574 210,712
Other Borrowings 18,500 22,000
Other Liabilities 1,249 1,357
Shareholders' Equity
Preferred Stock 5,000 0
Common Stock and Surplus 31,867 31,735
Accumulated Deficit (3,397) (2,792)
Unrecognized Loss on AFS Securities (589) (1,104)
--------- ---------
Total Shareholders' Equity 32,881 27,839
--------- ---------
Total Liabilities & Shareholders' Equity $ 232,204 $ 261,908
========= =========
Contact:
Mark Simmons
President/CEO
Phone: 949-870-3860
Fax: 949-870-4499
E-Mail: Email Contact
