SOURCE: Commerce National Bank

Commerce National Bank

October 19, 2009 09:00 ET

Commerce National Bank Announces the Repayment of $5,000,000 of TARP - CPP Capital

NEWPORT BEACH, CA--(Marketwire - October 19, 2009) - Commerce National Bank (OTCBB: CNBF), a community business bank now in its sixth year of operation, announced it has redeemed the Preferred Stock issued to the United States Treasury Department (the "UST") by repaying the $5 million received from the UST in January 2009 under the term of the Troubled Asset Relief Program -- Capital Purchase Program (the "TARP - CPP").

"When the TARP - CPP was originally proposed, only strong, well capitalized banks could apply for it," stated Mark Simmons, the President & CEO. "However, after several changes were made to the program, the public perception of it changed to a negative idea that the program was supplying bailout money to troubled banks. The Board of Directors earlier this year decided that it was in the shareholders' best interest to repay the TARP - CPP funds as the bank did not need them, and was not, and is not, a troubled or problem bank. With the redemption of the Preferred Stock, the Bank's equity is $28,588,492. That results in a Tier 1 capital to assets ratio of 12.7%, which is more than twice the minimum requirement to be well capitalized under applicable federal regulations. This ratio places Commerce National Bank among the best capitalized business banks operating in Orange County. The bank's Board of Directors, officers and staff will continue to focus on delivering the highest level of service to its business and professional customers and seek out new customers in the Orange County community."

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.

Contact Information

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