CommerceFirst Bancorp Announces Results of Operations
July 22 2011 - 9:00AM
PR Newswire (US)
ANNAPOLIS, Md., July 22, 2011 /PRNewswire/ -- CommerceFirst
Bancorp, Inc. (NASDAQ: CMFB), the holding company for CommerceFirst
Bank, earned a consolidated net profit of $901 thousand for the six months ended
June 30, 2011 as compared to
$916 thousand for the six months
ended June 30, 2010. Basic and
diluted earnings were $0.49 per share
for the six months ended June 30,
2011 as compared to $0.50
during the same period in 2010. Earnings declined slightly during
2011 as compared to 2010 as the increase in net interest margin was
largely offset by an increase in the provision for loan losses,
write-downs of other real estate owned and increased loan
collection expenses. The Company continues to experience the
detrimental effects of the weakened economy on new, quality loan
volume as well as its loan customers' ability to pay and on
collateral values. Net interest margin increased in 2011 as
compared to 2010 primarily because of reduced interest expense paid
on deposits. The Company assets increased $7.5 million at June 30,
2011 from December 31, 2010
with increases in cash and cash equivalents offsetting the decline
in loans receivable. Key measurements and events for the six months
ended June 30, 2011 include the
following:
- Net interest income, the Company's main source of income,
increased by 9.1% from $4.6 million
in 2010 to $5.0 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
5.03% in the six months ended June 30,
2011, as compared to 4.56% in the same period in 2010.
- The Company's net income of $901
thousand for the six months ended June 30, 2011 was comparable to net income of
$916 thousand for the six months
ended June 30, 2010. The $15 thousand decline in net income is primarily
attributable to the increase in the provision for loan losses,
write-downs of other real estate owned and increased loan
collection expenses.
- The provision for loan losses increased from $1.0 million in the six months ended June 30, 2010 to $1.3
million in the six months ended June
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; no such write-down was needed in 2010. Loan
collection expenses increased from $37
thousand in 2010 to $89
thousand in 2011. Collectively, these expenses were
$451 thousand higher in 2011 as
compared to the same period in 2010.
- Total assets increased by 3.7% from $203
million at December 31, 2010
to $211 million at June 30, 2011. Net loans outstanding decreased by
2.5% from $182 million at
December 31, 2010 to $177 million as of June
30, 2011. Deposits increased by 3.6% from $180 million at December
31, 2010 to $187 million at
June 30, 2011. The Company has
concentrated on increasing earnings through balance sheet
management to grow its capital levels during these economically
challenging times. The Company's capital ratios exceed those
necessary to be considered "Well Capitalized" under Federal capital
guidelines.
- Non-performing loans declined to $6.7
million at June 30, 2011 from
$7.3 million at December 31, 2010. The allowance for loan losses
was $3.4 million, 1.9% of loans
receivable, at June 30, 2011 as
compared to $3.2 million, 1.7% of
loans receivable, at December 31,
2010. Loans in the amount of $1.1
million, net of recoveries, were written-off during the six
months ended June 30, 2011.
- Non-interest income increased by 11.2% from $616 thousand in 2010 to $685 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 10.6% from $2.6 million in 2010 to $2.9 million in 2011, including the asset
write-offs and collection expenses noted above.
CommerceFirst Bancorp, Inc. and
Subsidiary
Condensed
Consolidated Statements of Financial Condition
June 30,
2011 and December 31, 2010
(Dollars in
thousands)
|
|
|
June
30,
|
|
December
31,
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
(Audited)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$25,755
|
|
$13,726
|
|
Investments in restricted
stocks, at cost
|
527
|
|
527
|
|
Loans receivable, net of
allowance for loan losses
|
177,249
|
|
181,709
|
|
Other real estate
owned
|
3,332
|
|
3,324
|
|
Other assets
|
3,733
|
|
3,838
|
|
Total Assets
|
$210,596
|
|
$203,124
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Deposits
|
$186,638
|
|
$180,110
|
|
Other liabilities
|
692
|
|
649
|
|
Total Liabilities
|
187,330
|
|
180,759
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
|
Common stock - $.01 par value;
authorized 4,000,000 shares.
|
|
|
|
|
Issued and outstanding:
1,820,548 shares at June 30,
|
|
|
|
|
2011 and at
December 31, 2010
|
18
|
|
18
|
|
Additional paid-in
capital
|
17,853
|
|
17,853
|
|
Retained earnings
|
5,395
|
|
4,494
|
|
Total Stockholders' Equity
|
23,266
|
|
22,365
|
|
Total Liabilities and Stockholders' Equity
|
$210,596
|
|
$203,124
|
|
|
|
|
|
|
|
CommerceFirst Bancorp, Inc. and
Subsidiary
Condensed Consolidated
Statements of Operations
For the Six
Months Ended June 30, 2011 and 2010
(Dollars in
thousands except per share data)
|
|
|
Six Months
Ended
|
|
|
June
30,
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Interest income
|
$6,117
|
|
$6,330
|
|
Interest expense
|
1,118
|
|
1,747
|
|
Net
interest income
|
4,999
|
|
4,583
|
|
Provision for loan
losses
|
1,308
|
|
1,034
|
|
Net
interest income after provision for loan losses
|
3,691
|
|
3,549
|
|
|
|
|
|
|
Non-interest income
|
685
|
|
616
|
|
Non-interest expenses
|
2,919
|
|
2,640
|
|
Income before income taxes
|
1,457
|
|
1,525
|
|
Income tax expense
|
556
|
|
609
|
|
Net income
|
$901
|
|
$916
|
|
Basic and diluted earnings per
share
|
$0.49
|
|
$0.50
|
|
|
|
|
|
|
|
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 Company's current expectations and estimates as to
prospective events and circumstances that may or may not be in the
Company's 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.
SOURCE CommerceFirst Bancorp, Inc.
Copyright 2011 PR Newswire
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