SOURCE: Coronado First Bank

Coronado First Bank

October 18, 2010 11:30 ET

Coronado First Bank Posts Positive Third Quarter Earnings

CORONADO, CA--(Marketwire - October 18, 2010) -  Bruce Ives, President and CEO of Coronado First Bank (the "Bank") (OTCBB: CDFB) announced unaudited financial results for the third quarter ended Sept. 30, 2010. The Bank posted a third quarter profit of $69,000 ($0.05 diluted earnings per share) and reduced its year to date loss to $142,000 ($0.10 diluted loss per share) compared to losses in 2009 of $907,000 ($0.65 diluted loss per share) and $1,018,000 ($0.73 diluted loss per share), respectively. Total assets were $90 million and total deposits were $80 million at the quarter end. Total net loans declined 21.7% to $64 million, reflecting management's strategy of reducing non-performing loans and reducing concentrations in commercial real estate. The Bank finished the quarter with one non-performing asset, one REO asset and its Allowance for Loan and Lease Losses stood at 2.4% of gross loans.

Management's continued emphasis on core deposit generation had a positive impact on third quarter results. Non-interest bearing demand deposits increased by 47.7%, while overall deposits decreased by 7.4% over the same period last year; 100% of this reduction in deposits came in the area of the more costly time deposits. As expected, this resulted in a lower cost of funds to the Bank of 0.88% and an improved net interest margin of 4.3% as of Sept. 30, 2010. The Bank ended the quarter with a Tier I leverage capital ratio of 9.8% and a total risk-weighted capital ratio of 14.2%. 

Ives said, "The Bank's board of directors and management remain diligent in our efforts to reduce non-performing assets, reduce commercial real estate loan concentrations, improve our core deposit base and achieve sustainable profitability. Additionally, at quarter-end, the Bank did not have any performing loans that were beyond 30 days delinquent. While the economic and regulatory environment still present challenges to all banks, we are encouraged by our staff's ability to overcome these obstacles and implement our strategic plan. While we achieved profitability for the third quarter, there is still much work to be done to accomplish our goals." 

Ives concluded, "The board would like to take this opportunity to thank Edward Martin for his five years of service as a board member of Coronado First Bank. Mr. Martin made a five year commitment to the board when he joined and he is looking forward to spending more time traveling and pursuing other challenges. We truly appreciate the significant contribution that he made towards the success of Coronado First Bank and wish him the best. And as always, we 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." 

This press release includes 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 Coronado First 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.

(In thousands)  
      September 30,     September 30,  
      2010     2009  
ASSETS   Unaudited     Unaudited  
Cash and due from banks   $ 928     $ 1,132  
Interest-bearing deposits in FRB and other banks     13,340       11,569  
Investment securities     7,626       461  
Loans, net     64,301       82,172  
Premises and equipment, net     910       1,091  
Other real estate owned, net     1,770       -  
Accrued interest receivable and other assets     814       529  
  Total assets   $ 89,689     $ 96,954  
Non-interest bearing demand   $ 15,838     $ 10,726  
Money market     23,360       17,418  
Savings and NOW     3,852       2,808  
Time     37,095       55,618  
  Total deposits     80,145       86,570  
Accrued interest payable and other liabilities     169       271  
  Total liabilities     80,314       86,841  
Common stock - no par value, 1,392,477 shares outstanding at September 30, 2010 and 2009, respectively     14,542       14,415  
Retained earnings     (5,171 )     (4,302 )
Unrealized gains on AFS securities, net     4       -  
  Total stockholders' equity     9,375       10,113  
  Total liabilities and stockholders' equity   $ 89,689     $ 96,954  


  (In thousands, except per share amounts)            
      Nine Months     Nine Months     Three Months   Three Months  
      Ended     Ended     Ended   Ended  
      September 30, 2010     September 30, 2009     September 30, 2010   September 30, 2009  
      Unaudited     Unaudited     Unaudited   Unaudited  
Total interest income   $ 3,680     $ 3,874     $ 1,219   $ 1,379  
Total interest expense     761       1,197       205     427  
  Net interest income     2,919       2,677       1,014     952  
Provision for loan losses     257       1,052       18     846  
  Net interest income after provision for loan losses     2,662       1,625       996     106  
Noninterest income     47       49       17     23  
Loss on sale of Other Real Estate Owned     (113 )     -       -     -  
Noninterest expense     2,737       2,691       944     1,036  
  Income before income taxes     (141 )     (1,017 )     69     (907 )
Income taxes     1       1       -     -  
  Net profit (loss)   $ (142 )   $ (1,018 )   $ 69   $ (907 )
Basic and diluted profit (loss) per share   $ (0.10 )   $ (0.73 )   $ 0.05   $ (0.65 )
Average basic and diluted shares outstanding     1,392       1,392       1,392     1,392  

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