SOURCE: Commerce National Bank

Commerce National Bank

February 03, 2010 09:00 ET

Commerce National Bank Announces Fourth Quarter and 2009 Year to Date Results

NEWPORT BEACH, CA--(Marketwire - February 3, 2010) - Commerce National Bank (OTCBB: CNBF), a community business bank in its seventh year of operation, announced its financial results for the fourth quarter and full year of 2009.

For the three month period ended December 31, 2009, the Bank reported a net loss of $421,000 as compared to a net loss of $474,000 for the same period in 2008. For the twelve month period ended December 31, 2009, the Bank reported a net loss of $551,000 as compared to a net loss of $220,000 for the same period in 2008. During 2009, the Bank incurred significant expenses related to FDIC insurance assessments, other than temporary impairment charges on available-for-sale securities and provisions for loan and lease losses. For the three and twelve month periods ended December 31, 2009, respectively, the Bank recorded provisions for loan and lease losses of $730,000 and $1,455,000 as compared to provisions of $600,000 and $1,302,000 for the similar periods in 2008. For the three and twelve month periods ended December 31, 2009, respectively, the Bank recognized losses in its investment portfolio of zero and $427,000 for the portion of an investment that is considered to be Other Than Temporarily Impaired (OTTI) as compared to $475,000 and $834,000, respectively, for the similar periods in 2008. The Bank continued absorbing OTTI losses in its investment portfolio as a result of the continued weakness of retail mortgage markets, but at a lower level than in 2008. During these difficult economic times, the Bank thought it was prudent to increase its reserve for loan and lease losses.

Net interest income decreased $289,000 and $1,120,000 for the three and twelve month periods ended December 31, 2009, respectively, compared to the same periods of the prior year primarily due to lower interest rates. Non-interest income increased by $41,000 and $349,000 for the three and twelve month periods ended December 31, 2009, as compared to the same periods last year. The changes in non-interest income were primarily due to fees generated by sales of SBA loans and a gain on the sale of some available-for-sale securities. For the three month period ended December 31, 2009, non-interest expense increased $329,000; while for the twelve month period ended December 31, 2009, non-interest expense decreased $214,000, compared to the same periods in 2008. The changes in non-interest expense were primarily due to reductions in compensation costs along with the additional expenses mentioned above that were incurred in 2009.

As of December 31, 2009, the Bank reported total assets of $229.1 million, representing an increase of $7.7 million from December 31, 2008. Total deposits at December 31, 2009 were $185.8 million, an increase of $15.4 million from the prior year. Net loans at December 31, 2009 were $131.7 million, representing a decrease of $2.1 million from the prior year. Total shareholders' equity as of December 31, 2009 was $27.4 million, a decrease of $0.8 million from the prior year. At December 31, 2009 the Bank had regulatory capital ratios of 12.00% for Tier 1 leverage and 18.15% for total risk-based capital and 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 Ended   Twelve Months Ended
                                    December 31,          December 31,
                                --------------------  --------------------
                                  2009       2008       2009       2008
                                ---------  ---------  ---------  ---------
Interest Income                 $   2,546  $   2,861  $  10,399  $  11,780
Interest Expense                      549        575      2,416      2,677
                                ---------  ---------  ---------  ---------
Net Interest Income                 1,997      2,286      7,983      9,103
Provision for Loan Losses             730        600      1,455      1,302
                                ---------  ---------  ---------  ---------
Net Interest Income After
 Provision for Loan Losses          1,267      1,686      6,528      7,801
Non Interest Income                   186        145        965        616
Non Interest Expense                2,050      1,721      7,599      7,813
OTTI Charges on AFS Investment
 Securities                             0        475        427        834
                                ---------  ---------  ---------  ---------
    Loss Before Income Taxes         (598)      (365)      (533)      (230)
Income Tax Expense (Benefit)         (177)       109         17        (10)
                                ---------  ---------  ---------  ---------
Net Loss                        $    (421) $    (474) $    (551) $    (220)
                                =========  =========  =========  =========
Basic Loss Per Share            $   (0.16) $   (0.18) $   (0.21) $   (0.08)
                                =========  =========  =========  =========
  Diluted Loss Per Share        $   (0.16) $   (0.18) $   (0.21) $   (0.08)
                                =========  =========  =========  =========





                Condensed Statements of Financial Condition
                        000's Omitted  -  Unaudited

                                                          December 31,
                                                      --------------------
Assets                                                  2009       2008
                                                      ---------  ---------
  Cash & Due From Banks                               $   2,154  $   5,836
  Federal Funds Sold & Excess Balances at FRB             5,359     22,395
  Investments                                            83,120     53,169
  Loans (Net)                                           131,667    133,797
  Other Assets                                            6,800      6,215
                                                      ---------  ---------
    Total Assets                                      $ 229,100  $ 221,412
                                                      =========  =========
Liabilities & Shareholders' Equity
  Demand Deposits                                     $  45,875  $  28,021
  Money Market, Savings and NOW Accounts                 35,753    110,572
  Certificates of Deposit                               104,206     31,809
                                                      ---------  ---------
    Total Deposits                                      185,834    170,402
  Other Borrowings                                       15,000     22,000
  Other Liabilities                                         912        812
Shareholders' Equity
  Common Stock and Surplus                               31,916     31,777
  Accumulated Deficit                                    (3,854)    (3,267)
  Unrecognized Loss on AFS Securities                      (708)      (312)
                                                      ---------  ---------
    Total Shareholders' Equity                           27,354     28,198
                                                      ---------  ---------
Total Liabilities & Shareholders' Equity              $ 229,100  $ 221,412
                                                      =========  =========

Contact Information

  • Contact:
    Mark Simmons
    President/CEO
    Phone: 949-870-3860
    Fax: 949-870-4499
    E-Mail: Email Contact