N@N

Coronado First Bank Experiences Strong and Stable Growth in 2008

^{Published on Monday, January 26th 2009 at 11:48 GMT, Last Modified on 2009-01-26 11:49:27 by Market Wire}  

CORONADO, Calif.--([ BUSINESS WIRE ])--Bruce Ives, President and CEO of Coronado First Bank (the "Bank") (OTCBB:CDFB) announced unaudited financial results for the fourth quarter ended Dec. 31, 2008. Total assets grew to $72 million at Dec. 31, 2008 and total deposits grew to $58 million, an increase of 23% each, over the same period in 2007, respectively. The Bank had total loans, net of reserves, at quarter-end of $60 million, an increase of 51% over Dec. 31, 2007. Total revenue increased 23% over Dec. 31, 2007 to $4,136,000. The Bank's net interest margin of 4.11% continues to be one of the highest in it's peer group.

Mr. Ives stated, "Coronado First Bank is in a strong position to take advantage of these very challenging times. We are growing in a prudent and consistent fashion with a continued emphasis on asset quality. We have been deliberate in our approach and continue to bring in high quality customer relationships from other institutions that can no longer service their needs. I am proud of not only the growth that we have experienced, but the solid foundation that has been established by our measured approach. We continue to generate strong deposit growth through our CDARS program that provides up to $50 million per account in FDIC insurance protection. This has proved to be a valuable funding source for the strong loan demand that we continue to experience."

The Bank reduced its unaudited year-end loss by 11% to $534,000 despite the challenging economic environment. This represents ($0.38) diluted loss per share, (inclusive of $194,000 of additional expense relating to the implementation of FAS 123R, which requires companies to record compensation expense related to stock options). At year-end, the Bank's capital base was $11,036,000 or 15.24% of total assets or nearly twice the 8% standard for a bank to be considered "well capitalized".

Coronado First Bank is publicly traded on the Over-the-Counter Bulletin Board, ticker symbol: "CDFB". For more information on the Bank please contact: Bruce Ives at 619-437-1000, [ www.coronadofirst.com ].

This press release includes forward-looking statements that involve inherent risks and uncertainties. Coronado First Bank cautions readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. These factors include economic conditions and competition in the geographic and business areas in which Coronado First Bank operates, inflation, fluctuations in interest rates, legislation and governmental regulation. We make no promise to update any forward-looking statement, whether as a result of changes in underlying factors, new information, future events or otherwise.