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8-K - FORM 8-K - COMMERCEFIRST BANCORP INC | c11383e8vk.htm |
Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE:
Annapolis, Maryland | ||
January 24, 2011 | ||
Contact:
|
Richard J. Morgan | |
President and Chief Executive Officer (410.280.6695) |
COMMERCEFIRST BANCORP ANNOUNCES RESULTS OF OPERATIONS
CommerceFirst Bancorp, Inc. (NASDAQ: CMFB), the holding company for CommerceFirst Bank, earned a
consolidated net profit of $1.4 million for the year ended December 31, 2010 compared to a net
profit of $678 thousand for the year ended December 31, 2009. Basic and diluted earnings were
$0.78 per share for 2010 as compared to $0.37 in 2009. Earnings improved primarily due to the
improvement in net interest margin through the reduction of the cost of deposits and the increase
in gains on sales of loans. The deposits were re-priced to lower current market interest rates
during late 2009 and 2010. The provision for loan losses continues to remain relatively high as
compared to prior years in recognition of the effect of uncertain economic conditions on the
Companys borrowers and collateral values. The Company assets increased modestly at December 31,
2010 from December 31, 2009 primarily with the increase in cash and cash equivalents as the Company
increased its liquidity position. Key measurements and events for the year ended December 31, 2010
include the following:
| The Companys net income was $1.4 million for the year ended December 31, 2010
as compared to net income of $678 thousand for the year ended December 31, 2009, a
109.6% increase, largely resulting from increased net interest income during 2010. |
| Net interest income, the Companys main source of income, increased by 28.5% from
$7.3 million in 2009 to $9.4 million in 2010. Net interest income increased primarily
because of the increase in average earning assets and the reduced cost of funds during
2010. Interest expense declined in spite of the increase in interest bearing deposits
because of the re-pricing of a significant portion of the Companys longer term
certificates of deposit as they were renewed or were replaced at substantially reduced
rates during the last quarter of 2009 and through 2010. Net interest margin was 4.69%
in 2010, as compared to 4.00% in 2009. |
| Non-interest income increased by 51.9% from $720 thousand in 2009 to $1.1 million in
2010 primarily from increased gains on loan sales during 2010. Non-interest expenses
increased by 2.4% from $5.3 million in 2009 to $5.4 million in 2010. |
| Total assets increased by 1.4% from $200 million at December 31, 2009 to $203
million at December 31, 2010. The Company concentrated on increasing earnings through
balance sheet management to grow its capital levels during these economically
challenging times. |
| Net loans outstanding decreased by 0.8% from $183 million at December 31, 2009 to
$182 million as of December 31, 2010. The small decrease in the loan balances from
December 31, 2009 to December 31, 2010 resulted partially from the sale of SBA
guaranteed portions of loans in the amount of $8.7 million during 2010. Without
these sales, loan balances would have increased by $7.3 million. |
| Non-performing loans were $7.3 million at December 31, 2010 and $2.7 million at
December 31, 2009. The allowance for loan losses was $3.2 million at December 31, 2010
as compared to $2.4 million at December 31, 2009. The net addition to other real estate
owned during 2010 was $862 thousand. |
| Deposits increased by 0.8% from $179 million at December 31, 2009 to $180 million at
December 31, 2010. |
CommerceFirst Bancorp, Inc. and Subsidiary
Condensed Consolidated Statements of Financial Condition
December 31, 2010 and December 31, 2009
(Dollars in thousands)
Condensed Consolidated Statements of Financial Condition
December 31, 2010 and December 31, 2009
(Dollars in thousands)
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
(Unaudited) | (Audited) | |||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 13,726 | $ | 10,488 | ||||
Investments in restricted stocks, at cost |
527 | 527 | ||||||
Loans receivable, net of allowance for loan losses |
181,709 | 183,102 | ||||||
Other real estate owned |
3,324 | 2,462 | ||||||
Other assets |
3,838 | 3,792 | ||||||
Total Assets |
$ | 203,124 | $ | 200,371 | ||||
LIABILITIES |
||||||||
Deposits |
$ | 180,110 | $ | 178,645 | ||||
Other liabilities |
649 | 784 | ||||||
Total Liabilities |
180,759 | 179,429 | ||||||
STOCKHOLDERS EQUITY |
||||||||
Common stock $.01 par value; authorized 4,000,000
shares.
Issued and outstanding: 1,820,548 shares at
December 31, 2010 and at December 31, 2009 |
18 | 18 | ||||||
Additional paid-in capital |
17,853 | 17,853 | ||||||
Retained earnings |
4,494 | 3,071 | ||||||
Total Stockholders Equity |
22,365 | 20,942 | ||||||
Total Liabilities and Stockholders Equity |
$ | 203,124 | $ | 200,371 | ||||
CommerceFirst Bancorp, Inc. and Subsidiary
Condensed Consolidated Statements of Operations
For the Years ended December 31, 2010 and 2009
(Dollars in thousands except per share data)
Condensed Consolidated Statements of Operations
For the Years ended December 31, 2010 and 2009
(Dollars in thousands except per share data)
Year Ended | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
(Unaudited) | (Audited) | |||||||
Interest income |
$ | 12,560 | $ | 11,928 | ||||
Interest expense |
3,130 | 4,587 | ||||||
Net interest income |
9,430 | 7,341 | ||||||
Provision for loan losses |
2,716 | 1,616 | ||||||
Net interest income after provision for loan losses |
6,714 | 5,725 | ||||||
Non-interest income |
1,094 | 720 | ||||||
Non-interest expenses |
5,434 | 5,315 | ||||||
Income before income taxes |
2,374 | 1,130 | ||||||
Income tax expense |
951 | 452 | ||||||
Net income |
$ | 1,423 | $ | 678 | ||||
Basic earnings per share |
$ | 0.78 | $ | 0.37 | ||||
Diluted earnings per share |
$ | 0.78 | $ | 0.37 | ||||
Forward Looking Statements. This press release includes forward looking statements within
the meaning of Section 21(e) of the Securities Exchange Act of 1934. These statements are based on
the Companys current expectations and estimates as to prospective events and circumstances that
may or may not be in the Companys control and as to which there can be no firm assurances given.
These forward looking statements are subject to risks and uncertainties; there can be no assurance
that any of these forward looking statements may prove to be correct and actual results may differ
materially.