SOURCE: Coronado First Bank

Coronado First Bank

April 25, 2011 14:30 ET

Coronado First Bank Posts Positive First Quarter Results

CORONADO, CA--(Marketwire - Apr 25, 2011) - Coronado First Bank (the "Bank") (OTCBB: CDFB) announced unaudited financial results for the quarter ended March 31, 2011. The Bank posted a first quarter profit of $15,000, inclusive of $46,000 in extraordinary costs associated with the proposed merger with Embarcadero Bank, compared to its first quarter profit for 2010 of $64,000. Total revenue was $1,069,000 and total expense was reduced by 12% to $1,039,000. Management continues to realign the balance sheet emphasizing a stronger core deposit base resulting in a lower cost of funds.

Total assets were $83 million and total deposits were $74 million at March 31, 2011. As stated in previous correspondence, Management's emphasis has been on building a stable balance sheet consisting of core deposits and improved credit quality. At March 31, 2011, core deposits represented 77% of the Bank's deposit base up from 68% over the first quarter of 2010. Non-interest bearing deposit accounts represented 21% of total deposits up from 17% over first quarter 2010. This balance sheet realignment has allowed the Bank to maintain a strong net interest margin of 4.65% at March 31, 2011. The Bank was also successful in reducing Other Real Estate Owned ("OREO") by $1,750,000 resulting in no OREO at quarter end.

The Bank maintained strong capital ratios finishing the quarter with a Tier 1 Leverage Capital Ratio of 11.42% and a Total Risk Weighted Capital Ratio of 15.76%, well above the minimum regulatory guidelines.

Bruce Ives, President and CEO stated, "We are pleased with the progress that we have made over the past year as we navigated through very difficult economic and regulatory times. We also acknowledge that economic and regulatory challenges still lie ahead, which is why the Board determined that it is in the Bank's best interest to sign a definitive agreement to merge with Embarcadero Bank. We feel that this partnership will provide the capital and scale necessary to take advantage of opportunities; deal with the increased regulatory burden placed on the banking industry and create long term shareholder value. We have submitted our application for regulatory approval and anticipate a response in the third quarter. As always we look forward to continuing our pursuit of premier performance and generating strong shareholder returns for years to come."


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

This press release includes "forward-looking" statements as such term is defined in the Private Securities Litigation Reform Act of 1995 including the anticipated benefits to be achieved as a result of the merger, the successful integration of the two banks, the equity capital of the combined bank and the potential returns on investment of shareholders. These statements are subject to risks and uncertainties and actual results could differ materially due to certain risk factors. Specific relevant risks include whether the transaction is approved by regulators and by shareholders of both banks and risk related to the successful integration of the two banks. You should not place undue reliance on forward-looking statements and we undertake no obligation to update those statements.

This press release may be deemed to be solicitation material in respect of the proposed merger of Coronado First Bank with and into Embarcadero Bank. Coronado First Bank and Embarcadero Bank intend to send their shareholders a joint proxy statement regarding the proposed merger. Before making any voting or investment decision, investors and security holders of either Coronado First Bank or Embarcadero Bank are urged to carefully read the entire proxy statement, when its becomes available, because it will contain important information about the proposed transaction.

(In thousands)
March 31,March 31,
Cash and due from banks$1,293$1,175
Federal funds sold and interest bearing balances at FRB7,025465
Interest-bearing deposits in other banks7,82213,472
Investment securities6,5301,813
Loans, net58,93271,622
Premises and equipment, net8461,006
Other real estate owned, net-2,715
Accrued interest receivable and other assets626964
Total assets$83,074$93,232
Non-interest bearing demand$15,003$13,619
Money market27,66424,987
Savings and NOW3,9383,612
Total deposits73,59583,497
Accrued interest payable and other liabilities150223
Total liabilities73,74583,720
Common stock - no par value, 1,392,477 shares outstanding
at March 31, 2011 and 2010, respectively14,53814,478
Retained earnings(5,126)(4,966)
Unrealized loss on AFS securities, net(83)-
Total stockholders' equity9,3299,512
Total liabilities and stockholders' equity$83,074$93,232
(In thousands, except per share amounts)
Three MonthsThree Months
March 31, 2011March 31, 2010
Total interest income$1,045$1,228
Total interest expense124302
Net interest income921926
Provision for loan losses15-
Net interest income after provision for loan losses906926
Noninterest income2412
Noninterest expense915874
Income before income taxes1564
Income taxes--
Net profit (loss)$15$64
Basic and diluted profit (loss) per share$0.01$0.05
Average basic and diluted shares outstanding1,3921,392