CommerceFirst Bancorp Announces Results of Operations
October 19 2011 - 4:45PM
PR Newswire (US)
ANNAPOLIS, Md., Oct. 19, 2011 /PRNewswire/ -- 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 Company's 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 Company's 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 Company's 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)
|
|
|
|
|
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)
|
|
|
|
|
|
|
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 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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