SOURCE: Commerce National Bank

Commerce National Bank

January 31, 2012 06:00 ET

Commerce National Bank Announces 2011 Fourth Quarter and Year to Date Results

NEWPORT BEACH, CA--(Marketwire - Jan 31, 2012) - Commerce National Bank (OTCBB: CNBF), a community business bank in its ninth year of operation, announced its financial results for the fourth quarter and full year of 2011.

For the twelve month period ended December 31, 2011, the Bank reported net income of $676,000 as compared to net income of $102,000 for the same period in 2010. For the three month period ended December 31, 2011, the Bank reported net income of $217,000 as compared to net income of $154,000 for the same period in 2010. For the twelve and three month periods ended December 31, 2011, respectively, the Bank recorded provisions for loan and lease losses of $2,811,000 and $961,000 as compared to provisions of $1,475,000 and $100,000 for the similar periods in 2010.

Net interest income increased $726,000 and $136,000 for the twelve and three month periods ended December 31, 2011, respectively, compared to the same periods of the prior year, primarily due to lower deposit interest rates. Non-interest income increased by $1,908,000 and $296,000 for the twelve and three month periods ended December 31, 2011, as compared to the same periods last year. The changes in non-interest income were primarily due to fees generated by gains on the sales of SBA loans. For the twelve month period ended December 31, 2011, non-interest expense increased $350,000; while for the three month period ended December 31, 2011, non-interest expense decreased $486,000, compared to the same periods in 2010.

As of December 31, 2011, the Bank reported total assets of $236.5 million, representing a decrease of $19.8 million from December 31, 2010. The decline in assets resulted primarily from the Bank paying off advances of $14.7 million from the Federal Home Loan Bank of San Francisco. Total deposits at December 31, 2011 were $206.7 million, a decrease of $5.4 million from the prior year. Gross loans at December 31, 2011 were $150.7 million, representing a decrease of $1.2 million from the prior year. Total shareholders' equity as of December 31, 2011 was $28.2 million, an increase of $685 thousand from the prior year. At December 31, 2011 the Bank had regulatory capital ratios of 11.54% for Tier 1 leverage and 18.30% for total risk-based capital and continued to be well capitalized.

With its headquarters office in Newport Beach near John Wayne airport, the Bank is well positioned to serve businesses, professionals and selected real estate customers throughout Orange County. The Bank is 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
In Thousands (Except Per Share Amounts) - Unaudited
Three Months Ended Twelve Months Ended
December 31, December 31,
2011 2010 2011 2010
Interest Income $ 2,745 $ 2,729 $ 10,808 $ 10,458
Interest Expense 258 377 1,238 1,614
Net Interest Income 2,488 2,352 9,570 8,844
Provision for Loan Losses 961 100 2,811 1,475
Net Interest Income After
Provision for Loan Losses 1,527 2,252 6,759 7,369
Non-Interest Income 832 536 2,905 997
Non-Interest Expense 1,965 2,451 8,514 8,164
Gain on Securities and OREO Sales, Net 10 0 50 0
Income Before Income Taxes 404 337 1,201 202
Income Tax Expense 187 183 525 100
Net Income $ 217 $ 154 $ 676 $ 102
Basic Earnings Per Share $ 0.08 $ 0.06 $ 0.25 $ 0.04
Diluted Earnings Per Share $ 0.08 $ 0.06 $ 0.25 $ 0.04
Condensed Statements of Financial Condition
In Thousands - Unaudited
December 31,
Assets 2011 2010
Cash & Due From Banks $ 3,839 $ 2,580
Federal Funds Sold & Excess Balances at FRB 1,205 13,231
Investments 78,552 83,939
Loans, Gross 150,684 151,895
Less: Allowance for Loan and Lease Losses 4,755 3,404
Loans, Net 145,929 148,491
Other Assets 6,955 8,051
Total Assets $ 236,480 $ 256,292
Liabilities & Shareholders' Equity
Demand Deposits $ 52,145 $ 50,502
Money Market, Savings and NOW Accounts 44,139 47,309
Certificates of Deposit 110,404 114,261
Total Deposits 206,688 212,072
Other Borrowings 0 14,688
Other Liabilities 1,562 1,987
Total Shareholders' Equity 28,230 27,545
Total Liabilities & Shareholders' Equity $ 236,480 $ 256,292

Contact Information

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