Business & Finance
Business and Finance
Business and Finance 
Wed, November 4, 2009
Tue, November 3, 2009
Commerce National Bank Announces Third Quarter 2009 Results
NEWPORT BEACH, CA--(Marketwire - November 3, 2009) - Commerce National Bank (
For the three month period ended September 30, 2009, the Bank reported net income of $105,000 as compared to a net loss of $152,000 for the same period in 2008. For the nine month period ended September 30, 2009, the Bank reported a net loss of $130,000 as compared to net income of $254,000 for the same period in 2008. For the three and nine month periods ended September 30, 2009, respectively, the Bank recorded provisions for loan and lease losses of $200,000 and $725,000 as compared to provisions of $375,000 and $702,000 for the similar periods in 2008. For the three and nine month periods ended September 30, 2009, respectively, the Bank recognized losses in its investment portfolio of $167,000 and $427,000 for the portion of an investment that is considered to be Other Than Temporarily Impaired (OTTI). For the three and nine month periods ended September 30, 2008, respectively, the Bank recognized OTTI losses in its investment portfolio of $359,000. For the three and nine month periods ended September 30, 2009, respectively, the Bank recorded income tax expense of $358,000 and $195,000 as compared to the recording of income tax benefits of $207,000 and $116,000 for the similar periods in 2008. Notwithstanding the profits for the quarter, the Bank continues to absorb losses in its investment portfolio as a result of the continued deterioration of the mortgage markets. The Bank continues to reserve for the loan portfolio but, at this point, has not seen a significant deterioration in the quality of the loan portfolio.
Net interest income decreased $321,000 and $831,000 for the three and nine month periods ended September 30, 2009, respectively, compared to the same periods of the prior year due to lower interest rates. Non-interest income increased by $571,000 and $308,000 for the three and nine month periods ended September 30, 2009, as compared to the same periods last year. The changes in non-interest income were primarily due to fees generated by a gain on the sale of some available-for-sale securities. For the three and nine month periods ended September 30, 2009, non-interest expense decreased $205,000 and $542,000, respectively, compared to the same periods in 2008. The changes in non-interest expense were primarily due to reductions in compensation costs in 2009.
As of September 30, 2009, the Bank reported total assets of $232.2 million, representing a decrease of $29.7 million from September 30, 2008. Total deposits at September 30, 2009 were $179.6 million, a decrease of $31.1 million from the prior year. The 2008 deposits were increased by a one-time, very short term deposit for $28.5 million that was on the books over the quarter end. Net loans at September 30, 2009 were $131.8 million, representing a decrease of $1.2 million from the prior year. Total shareholders' equity as of September 30, 2009 was $32.9 million, an increase of $5.0 million from the prior year. $5.0 million of the increased equity was in the form of TARP-CPP preferred stock that the Bank received in January of 2009 and repaid to the U.S. Treasury in October of 2009. At September 30, 2009 the Bank had regulatory capital ratios of 13.80% for Tier 1 leverage and 22.01% for total risk-based capital and continued to be well capitalized. After the repayment of the TARP-CPP, these ratios were 11.69% and 18.83%, respectively, and the Bank continued to be well capitalized.
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.
Condensed Statements of Operations 000's Omitted (Except Per Share Amounts) - Unaudited Three Months Nine Months Ended Ended September 30, September 30, ---------------- ---------------- 2009 2008 2009 2008 -------- ------- ------- ------- Interest Income $ 2,654 $ 3,064 $ 7,853 $ 8,920 Interest Expense 632 721 1,867 2,102 -------- ------- ------- ------- Net Interest Income 2,022 2,343 5,987 6,818 Provision for Loan Losses 200 375 725 702 -------- ------- ------- ------- Net Interest Income After Provision for Loan Losses 1,822 1,968 5,262 6,116 Non Interest Income 633 62 779 471 Non Interest Expense 1,825 2,030 5,548 6,090 OTTI Charges on Investments Held 167 359 427 359 -------- ------- ------- ------- Income (Loss) Before Income Taxes 462 (359) 65 138 Income Tax Expense (Benefit) 358 (207) 195 (116) -------- ------- ------- ------- Net Income (Loss) $ 105 ($ 152) ($ 130) $ 254 ======== ======= ======= ======= Basic Earnings (Loss) Per Share $ 0.04 ($ 0.06) ($ 0.05) $ 0.10 ======== ======= ======= ======= Diluted Earnings (Loss) Per Share $ 0.04 ($ 0.06) ($ 0.05) $ 0.10 ======== ======= ======= ======= Condensed Statements of Financial Condition 000's Omitted - Unaudited September 30, -------------------- Assets 2009 2008 --------- --------- Cash & Due From Banks $ 7,216 $ 4,214 Federal Funds Sold & Excess Balances at FRB 11,336 64,551 Investments 78,236 55,832 Loans (Net) 131,810 132,975 Other Assets 3,606 4,336 --------- --------- Total Assets $ 232,204 $ 261,908 ========= ========= Liabilities & Shareholders' Equity Demand Deposits $ 37,677 $ 77,475 Money Market, Savings and NOW Accounts 44,483 108,437 Certificates of Deposit 97,414 24,800 --------- --------- Total Deposits 179,574 210,712 Other Borrowings 18,500 22,000 Other Liabilities 1,249 1,357 Shareholders' Equity Preferred Stock 5,000 0 Common Stock and Surplus 31,867 31,735 Accumulated Deficit (3,397) (2,792) Unrecognized Loss on AFS Securities (589) (1,104) --------- --------- Total Shareholders' Equity 32,881 27,839 --------- --------- Total Liabilities & Shareholders' Equity $ 232,204 $ 261,908 ========= =========