SOURCE: Coronado First Bank

Coronado First Bank

February 07, 2011 15:21 ET

Coronado First Bank Posts Fourth Quarter Results

CORONADO, CA--(Marketwire - February 7, 2011) - Bruce Ives, President and CEO of Coronado First Bank (the "Bank") (OTCBB: CDFB), announced today that the Bank posted a fourth quarter profit of $31,000 (inclusive of a $51,000 loss associated with the sale of a $1,718,000 Other Real Estate Owned "OREO" in January 2011), and a year-end loss of ($111,000) compared to quarterly and full year losses in 2009 of ($728,000) and ($1,746,000), respectively. "We are pleased that our 2010 operating loss is substantially lower than 2009, and that we are moving forward, posting earnings in three of four quarters in 2010," Ives stated.

Total assets decreased by 11% to $83 million as the Bank continued to re-align its balance sheet by reducing CRE (Commercial Real Estate) concentrations and reducing non-performing assets. Emphasis was also placed on increasing the Bank's core deposit position. The Bank finished the year with 73% of its deposit base in core deposits compared to only 49% at year-end 2009. This allowed the Bank to reduce its cost of funds and maximize its net interest margin, ending the year over 4%.

While interest income was down by 8%, this was more than offset by a 42% reduction in interest expense. This resulted in a 6% increase in net interest income for the year. Simultaneously, the Bank reduced non-interest expense by 1% on the year.

Clearly the economic environment has been difficult, but the Bank navigated well. Some of the highlights for 2010 were:

--  Achieved profitability in 3 out of 4 quarters.
--  Maintained a strong capital position with a 10.5% Tier 1 Capital Ratio
    and 14.7% Total Capital to Risk Weighted Assets at year end.
--  Reduced non-performing and OREO assets with a loss factor limited to
    less than 10%.
--  Increased our core deposit ratio from 49% in 2009 to 73% in 2010.
--  Maintained a net interest margin in excess of 4% in a very low rate
    environment.

Ives concluded, "While we continue to make progress towards solidifying the Bank's balance sheet and establishing sustainable profitability, we recognize that there is still work that needs to be done. The board and management have developed a strategic plan that will guide us to our ultimate objective of generating strong, sustainable shareholder returns. I appreciate our shareholders support as we continue to direct the Bank with long term shareholder value as our primary objective."

Coronado First Bank is publicly traded on the Over-the-Counter Bulletin Board, ticker symbol: "CDFB".

For more information on the Bank please contact:

Bruce Ives at 619-437-1000

www.coronadofirst.com

This press release may include forward-looking statements that involve inherent risks and uncertainties. Coronado First Bank cautions readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. These factors include economic conditions and competition in the geographic and business areas in which the Bank operates, inflation, fluctuations in interest rates, legislation and governmental regulation. We make no promise to update any forward-looking statement, whether as a result of changes in underlying factors, new information, future events or otherwise.


                            CORONADO FIRST BANK
                         CONDENSED BALANCE SHEETS
                              (In thousands)

                                                December 31,  December 31,
                                                    2010          2009
ASSETS                                            Unaudited     Audited
                                                ------------  ------------
Cash and due from banks                         $        879  $      1,012
Federal funds sold                                         -             -
Interest-bearing deposits in FRB and other
 banks                                                 9,609        13,420
Investment securities                                  7,072           368
Loans, net                                            62,284        74,126
Premises and equipment, net                              880         1,044
Other Real Estate Owned, net                           1,718         2,715
Accrued interest receivable and other assets             797           996
                                                ------------  ------------
  Total assets                                  $     83,239  $     93,681
                                                ============  ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing demand                     $     15,233  $     11,022
Money market                                          24,306        20,099
Savings and NOW                                        3,706         3,153
Time                                                  30,500        49,766
                                                ------------  ------------
  Total deposits                                      73,745        84,040
Other borrowed money                                       -             -
Accrued interest payable and other liabilities           166           224
                                                ------------  ------------
  Total liabilities                                   73,911        84,264
                                                ------------  ------------
Common stock - no par value, 1,392,477 shares
 outstanding at December 31, 2009 and 2008,
 respectively                                         14,529        14,447
Retained earnings                                     (5,141)       (5,030)
Unrealized losses on AFS securities, net                 (60)            -
                                                ------------  ------------
  Total stockholders' equity                           9,328         9,417
                                                ------------  ------------
  Total liabilities and stockholders' equity    $     83,239  $     93,681
                                                ============  ============





                    CONDENSED STATEMENTS OF OPERATION
                 (In thousands, except per share amounts)



                                                  Three Months Three Months
                         Year-Ended   Year-Ended     Ended        Ended
                        December 31, December 31, December 31, December 31,
                           2010         2009         2010         2009
                         Unaudited     Audited     Unaudited    Unaudited
                        -----------  -----------  -----------  -----------
Total interest income   $     4,794  $     5,216  $     1,114  $     1,342
Total interest expense          917        1,573          156          376
                        -----------  -----------  -----------  -----------
  Net interest income         3,877        3,643          958          966
Provision for loan
 losses                         263        1,769            -          717
                        -----------  -----------  -----------  -----------
  Net interest income
   after provision for
   loan losses                3,614        1,874          958          249

Noninterest income               67           60           20           11
 Loss on sale of other
  real estate owned            (165)           -          (52)
Noninterest expense           3,626        3,679          895          988
                        -----------  -----------  -----------  -----------
  Income before income
   taxes                       (110)      (1,745)          31         (728)
Income taxes                      1            1            -            -
                        -----------  -----------  -----------  -----------
  Net loss              $      (111) $    (1,746) $        31  $      (728)
                        ===========  ===========  ===========  ===========

Basic and diluted loss
 per share              $     (0.08) $     (1.25) $      0.02  $     (0.52)
                        ===========  ===========  ===========  ===========

Average basic and
 diluted shares
 outstanding                  1,392        1,392        1,392        1,392


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