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Commerce National Bank Selected to Participate in U.S. Treasury s Capital Purchase Plan

^{Published on 2008-12-03 08:51:49 - Market Wire}
 

NEWPORT BEACH, Calif.--([ BUSINESS WIRE ])--Commerce National Bank (OTCBB: CNBF), a community business bank, today announced that the Bank has obtained preliminary approval of its application for the United States Treasury Department to invest $5,000,000 in the company's preferred stock and warrants, as part of the government's much publicized Capital Purchase Plan.

On a pro forma basis, this investment will increase Commerce National Bank's strong Tier 1 capital ratio of 12.69 percent up to an even stronger 14.66 percent.

"This investment further secures Commerce National Bank as one of the most strongly capitalized banks in the Orange County area, which will expand our ability to meet the needs of our customers, shareholders and the communities we serve," said Mark Simmons, President & Chief Executive Officer. "We believe this investment represents a strong vote of confidence in Commerce National Bank, and we are pleased to participate in the Treasury's program to fortify the financial system and help support the nation's economic recovery."

Commerce National Bank said the additional capital will allow the bank to continue its growth strategy of providing superior commercial banking products and services to small and medium sized firms in its Orange County market.

The U.S. Treasury introduced the Capital Purchase Program on October 14, 2008. Following the participation of nine of the nation's largest banks, the Treasury has encouraged a select number of healthy banks to participate in the program to increase capital and lending capacity in the system to help the nation's economy.

With offices in Newport Beach near John Wayne airport and in the City of Fullerton, the Bank is well positioned to serve businesses, professionals and selected real estate customers in both the northern and southern areas of Orange County. The offices are staffed by experienced business bankers who are committed to providing exemplary service to their customers in the business community.

Forward Looking Statement

This news release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about Commerce National Bank's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: Commerce National Bank's timely development of new products and services, technological changes, changes in consumer spending and savings habits and other risks discussed from time to time in Commerce National Bank's reports and filings with the Office of the Comptroller of the Currency.In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and Commerce National Bank does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.