SOURCE: Coronado First Bank

Coronado First Bank

August 03, 2011 10:00 ET

Coronado First Bank Posts Second Quarter Results

CORONADO, CA--(Marketwire - Aug 3, 2011) - Coronado First Bank (the "Bank") (OTCBB: CDFB) announced unaudited financial results for the quarter ended June 30, 2011. The Bank posted a second quarter loss of $782,000 and a year-to-date loss of $767,000. The loss included extraordinary expenses related to the merger with Embarcadero Bank and a write-down to current appraised value of an asset recently taken into OREO (Other Real Estate Owned). The Bank continues to reduce its non-performing asset position with only two non-performing assets remaining on its books totaling $3,326,000, including the OREO property.

Total assets were $79 million and total deposits were $70 million at June 30, 2011. Management continues to emphasize building a stable balance sheet consisting of core deposits and improved credit quality. At June 30, 2011, core deposits represented 83% of the Bank's deposit base, up from 72% at 2nd quarter-end 2010. Non-interest deposit accounts represented 22% of total deposits. Additionally, the Bank's net interest margin continues to improve, ending the quarter at 4.67%.

The Bank maintained strong capital ratios, finishing the quarter with a Tier 1 Capital Ratio of 10.86% and a Total Risk Weighted Capital Ratio of 15.61%; well above the minimum regulatory guidelines.

Bruce Ives, President and CEO stated, "While we are pleased with the progress that we have made in reducing our problem assets, we acknowledge that this economic environment remains unstable. Our primary objective now is to complete the merger with Embarcadero Bank, resulting in an increased capital base and expanded growth opportunities. We look forward to a bright future for the combined organization."


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

This press release may include forward-looking statements that involve inherent risks and uncertainties, 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, the potential returns on investment of shareholders, economic conditions and competition in the geographic and business areas in which the Bank operates, inflation, fluctuations in interest rates, legislation and governmental regulation. These statements are subject to risks and uncertainties and actual results could differ materially due to certain risk factors. You should not place undue reliance on forward-looking statements and we undertake no obligation to update those statements whether as a result of changes in underlying factors, new information, future events or otherwise.

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 have sent their shareholders a joint proxy statement regarding the proposed merger and have, or intend to send, their shareholders a supplement to the joint proxy statement. 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 and its supplement, when its becomes available, because it will contain important information about the proposed transaction.