Attached files
file | filename |
---|---|
8-K - FORM 8-K - COMMERCEFIRST BANCORP INC | c23456e8vk.htm |
Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE:
Annapolis, Maryland
October 19, 2011
October 19, 2011
Contact:
|
Richard J. Morgan President and Chief Executive Officer (410.280.6695) |
COMMERCEFIRST BANCORP ANNOUNCES RESULTS OF OPERATIONS
CommerceFirst Bancorp, Inc. (NASDAQ: CMFB), the holding company for CommerceFirst Bank, earned a
consolidated net profit of $1.4 million for the nine months ended September 30, 2011 as compared to
$1.3 million for the nine months ended September 30, 2010. Basic and diluted earnings were $0.77
per share for the nine months ended September 30, 2011 as compared to $0.70 during the same period
in 2010. Earnings increased during 2011 as compared to 2010 because of increases in net interest
income and non-interest income. Net interest margin increased in 2011 as compared to 2010 primarily
because of reduced interest expense paid on deposits. Assets increased $1.7 million at September
30, 2011 from December 31, 2010 with increases in cash and cash equivalents offsetting the decline
in loans receivable. The Company continues to experience the detrimental effects of the weakened
economy on new loan volume as well as its loan customers ability to pay and on collateral values.
Key measurements and events for the nine months ended September 30, 2011 include the following:
| Net interest income, the Companys main source of income, increased by 7.2% from
$7.0 million in 2010 to $7.5 million in 2011. Net interest income increased primarily
because of the reduced cost of funds during 2011 as the Company renewed or replaced
certificates of deposit at lower interest rates. Net interest margin was 5.02% in the
nine months ended September 30, 2011, as compared to 4.64% in the same period in 2010. |
||
| The Companys net income of $1.4 million for the nine months ended September 30,
2011 was comparable to net income of $1.3 million for the nine months ended September
30, 2010. Net income for the three months ended September 30, 2011 was $495 thousand,
or $0.27 per share, as compared to $356 thousand, or $0.20 per share, for the three
months ended September 30, 2010. |
||
| The provision for loan losses increased from $1.6 million in the nine months ended
September 30, 2010 to $1.9 million in the nine months ended September 30, 2011. The
Company also wrote-down the recorded value of its other real estate owned by $125
thousand to recognize the decline in the value of other real estate owned in 2011 as
compared to a $75 thousand write-down during the same period in 2010. Loan collection
expenses increased from $49 thousand in 2010 to $145 thousand in 2011. These expense
increases were offset by increases in net interest income and increases in non-interest
income. |
||
| Total assets increased by 0.8% from $203 million at December 31, 2010 to $205
million at September 30, 2011. Net loans outstanding decreased by 2.2% from $182
million at December 31, 2010 to $178 million as of September 30, 2011. Deposits
increased by 0.1% from $180.1 million at December 31, 2010 to $180.3 million at
September 30, 2011. The Company has concentrated on increasing earnings through balance
sheet management to grow its capital levels and establishing strong loss reserves
during these economically challenging times. The Companys capital ratios exceed those
necessary to be considered Well Capitalized under Federal capital guidelines. |
||
| Non-performing loans declined to $5.0 million at September 30, 2011 from $7.3
million at December 31, 2010. The allowance for loan losses was $3.0 million, 1.7% of
loans receivable, at September 30, 2011 as compared to $3.2 million, 1.7% of loans
receivable, at December 31, 2010. Loans in the amount of $2.0 million, net of
recoveries, were written-off during the nine months ended September 30, 2011. |
||
| Non-interest income increased by 16.8% from $780 thousand in 2010 to $911 thousand
in 2011 primarily from gains on sales of other real estate owned, net rental income on
leased other real estate owned and increased deposit fee income during 2011.
Non-interest expenses increased by 5.5% from $4.0 million in 2010 to $4.3 million in
2011, including the asset write-offs and collection expenses noted above. |
CommerceFirst Bancorp, Inc. and Subsidiary
Condensed Consolidated Statements of Financial Condition
September 30, 2011 and December 31, 2010
(Dollars in thousands)
Condensed Consolidated Statements of Financial Condition
September 30, 2011 and December 31, 2010
(Dollars in thousands)
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
(Unaudited) | (Audited) | |||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | 20,217 | $ | 13,726 | ||||
Investments in restricted stocks, at cost |
527 | 527 | ||||||
Loans receivable, net of allowance for loan losses |
177,710 | 181,709 | ||||||
Other real estate owned |
2,637 | 3,324 | ||||||
Other assets |
3,706 | 3,838 | ||||||
Total Assets |
$ | 204,797 | $ | 203,124 | ||||
LIABILITIES |
||||||||
Deposits |
$ | 180,267 | $ | 180,110 | ||||
Other liabilities |
769 | 649 | ||||||
Total Liabilities |
181,036 | 180,759 | ||||||
STOCKHOLDERS EQUITY |
||||||||
Common stock $.01 par value; authorized 4,000,000
shares |
||||||||
Issued and outstanding: 1,820,548 shares at
September 30,
2011 and at December 31, 2010 |
18 | 18 | ||||||
Additional paid-in capital |
17,853 | 17,853 | ||||||
Retained earnings |
5,890 | 4,494 | ||||||
Total Stockholders Equity |
23,761 | 22,365 | ||||||
Total Liabilities and Stockholders Equity |
$ | 204,797 | $ | 203,124 | ||||
CommerceFirst Bancorp, Inc. and Subsidiary
Condensed Consolidated Statements of Operations
For the Nine Months Ended September 30, 2011 and 2010
(Dollars in thousands except per share data)
Condensed Consolidated Statements of Operations
For the Nine Months Ended September 30, 2011 and 2010
(Dollars in thousands except per share data)
Nine Months Ended | ||||||||
September 30, | ||||||||
2011 | 2010 | |||||||
(Unaudited) | (Unaudited) | |||||||
Interest income |
$ | 9,164 | $ | 9,533 | ||||
Interest expense |
1,628 | 2,500 | ||||||
Net interest income |
7,536 | 7,033 | ||||||
Provision for loan losses |
1,894 | 1,646 | ||||||
Net interest income after provision for loan losses |
5,642 | 5,387 | ||||||
Non-interest income |
911 | 780 | ||||||
Non-interest expenses |
4,272 | 4,048 | ||||||
Income before income taxes |
2,281 | 2,119 | ||||||
Income tax expense |
885 | 847 | ||||||
Net income |
$ | 1,396 | $ | 1,272 | ||||
Basic and diluted earnings per share |
$ | 0.77 | $ | 0.70 | ||||
Forward Looking Statements. This press release includes forward looking statements within
the meaning of Section 21(e) of the Securities Exchange Act of 1934. These statements are based on
the Companys current expectations and estimates as to prospective events and circumstances that
may or may not be in the Companys control and as to which there can be no firm assurances given.
These forward looking statements are subject to risks and uncertainties; there can be no assurance
that any of these forward looking statements may prove to be correct and actual results may differ
materially.