SOURCE: Commerce National Bank

Commerce National Bank

March 02, 2009 03:00 ET

Commerce National Bank Announces 2008 Year-End and Fourth Quarter Results

NEWPORT BEACH, CA--(Marketwire - March 2, 2009) - Commerce National Bank ("the Bank") (OTCBB: CNBF), a community business bank in its sixth year of operation, announced its financial results for the full year and fourth quarter ended December 31, 2008.

For the full year ended December 31, 2008, the Bank reported a net loss of $220 thousand, or ($0.08) per diluted share, compared to net income of $1.049 million, or $0.39 per diluted share, for the year ended December 31, 2007. For the quarter ended December 31, 2008, the Bank had a net loss of $474 thousand, or ($0.18) per diluted share, compared to net income of $347 thousand, or $0.13 per diluted share, for the same period a year ago. President and CEO Mark E. Simmons stated, "The decrease in earnings for the 4th quarter and the year ended December 31, 2008 was primarily due to the unprecedented turmoil in the financial markets and national economy during 2008, and the lower interest rate environment. The Bank added $1.3 million to our loan loss reserve during the year to help address what appears to be the most severe downturn in the economy in the last 40 years. Also during 2008, the Bank recorded 'other than temporarily impaired' charges of $834 thousand on one of the investments it holds."

The Bank's total assets as of December 31, 2008, increased $15.6 million, or 7.6%, to $221.4 million from $205.8 million at December 31, 2007. Net loans at December 31, 2008, increased $14.7 million, or 12.3%, to $133.8 million from $119.1 million at December 31, 2007. Total deposits decreased $6.4 million, or 3.6%, to $170.4 million at December 31, 2008, compared to $176.8 million at December 31, 2007. Total equity decreased $74 thousand, or 0.3%, to $28.2 million at December 31, 2008, compared to $28.3 million at December 31, 2007.

The Bank remains well-capitalized, with a Tier 1 Capital to Average Assets ratio of 13.0% at year end. Nevertheless, during the fourth quarter of 2008, the Bank's Board of Directors evaluated the terms of the U.S. Department of the Treasury's Capital Purchase Program (the "CPP") and concluded that it would be in the Bank's best interest to apply for an allocation of those funds. The application was subsequently approved and $5 million of additional Tier 1 capital in the form of Preferred Stock was received on January 9, 2009, bringing the Tier 1 Capital to Assets ratio to about 15.3%.

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.

                          Commerce National Bank
                Condensed Statement of Financial Condition
                                (Unaudited)
                                  (000's)

                                                          December 31,
                                                      --------------------
Assets                                                  2008       2007
                                                      ---------  ---------
  Cash & Due From Banks                               $  27,987  $  15,028
  Federal Funds Sold                                      4,996     35,256
  Investments                                            48,417     31,516
  Loans (Net)                                           133,797    119,111
  Other Assets                                            6,216      4,882
                                                      ---------  ---------
    Total Assets                                      $ 221,412  $ 205,792
                                                      =========  =========
Liabilities & Shareholders’ Equity
  Demand Deposits                                     $  28,021  $  42,216
  Money Market, Savings and NOW Accounts                110,572    111,425
  Certificates of Deposit                                31,809     23,201
                                                      ---------  ---------
    Total Deposits                                      170,402    176,843
  Other Borrowings                                       22,000          0
  Other Liabilities                                         812        678
Shareholders' Equity
  Common Stock and Surplus                               31,777     31,464
  Accumulated Deficit                                    (3,267)    (3,048)
  Unrecognized Loss on AFS Securities                      (312)      (145)
                                                      ---------  ---------
    Total Shareholders' Equity                           28,198     28,271
                                                      ---------  ---------
Total Liabilities & Shareholders' Equity              $ 221,412  $ 205,792
                                                      =========  =========




                          Commerce National Bank
                    Condensed Statement of Operations
                    (000's, except per share amounts)


                                                          Twelve Months
                                    Three Months Ended        Ended
                                       December 31,        December 31,
                                    ------------------  ------------------
                                      2008      2007      2008      2007
                                    --------  --------  --------  --------
Interest Income                     $  2,861  $  3,301  $ 11,781  $ 12,052
Interest Expense                         575     1,068     2,677     3,715
                                    --------  --------  --------  --------
Net Interest Income                    2,285     2,233     9,103     8,337
Provision for Loan Losses                600        61     1,302       305
                                    --------  --------  --------  --------
Net Interest Income After
 Provision for Loan Losses             1,685     2,173     7,801     8,033
Non Interest Income                      145       354       616       714
Non Interest Expense                   2,198     2,301     8,647     8,178
                                    --------  --------  --------  --------
Income (Loss) Before Income Taxes       (367)      226      (229)      569
Income Tax Expense (Benefit)             106      (120)      (10)     (479)
                                    --------  --------  --------  --------
Net (Loss) Income                   ($   474) $    347  ($   220) $  1,049
                                    ========  ========  ========  ========
Basic Earnings Per Share            ($  0.18) $   0.13  ($  0.08) $   0.39
                                    ========  ========  ========  ========
Diluted Earnings Per Share          ($  0.18) $   0.13  ($  0.08) $   0.39
                                    ========  ========  ========  ========

Contact Information

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