CORONADO, CA–(Marketwire – Apr 25, 2011) – Coronado First Bank (the “Bank”) (OTCBB: CDFB) announced unaudited financial results for the quarter ended March 31, 2011. The Bank posted a first quarter profit of $15,000, inclusive of $46,000 in extraordinary costs associated with the proposed merger with Embarcadero Bank, compared to its first quarter profit for 2010 of $64,000. Total revenue was $1,069,000 and total expense was reduced by 12% to $1,039,000. Management continues to realign the balance sheet emphasizing a stronger core deposit base resulting in a lower cost of funds.
Total assets were $83 million and total deposits were $74 million at March 31, 2011. As stated in previous correspondence, Management’s emphasis has been on building a stable balance sheet consisting of core deposits and improved credit quality. At March 31, 2011, core deposits represented 77% of the Bank’s deposit base up from 68% over the first quarter of 2010. Non-interest bearing deposit accounts represented 21% of total deposits up from 17% over first quarter 2010. This balance sheet realignment has allowed the Bank to maintain a strong net interest margin of 4.65% at March 31, 2011. The Bank was also successful in reducing Other Real Estate Owned (“OREO”) by $1,750,000 resulting in no OREO at quarter end.
The Bank maintained strong capital ratios finishing the quarter with a Tier 1 Leverage Capital Ratio of 11.42% and a Total Risk Weighted Capital Ratio of 15.76%, well above the minimum regulatory guidelines.
Bruce Ives, President and CEO stated, “We are pleased with the progress that we have made over the past year as we navigated through very difficult economic and regulatory times. We also acknowledge that economic and regulatory challenges still lie ahead, which is why the Board determined that it is in the Bank’s best interest to sign a definitive agreement to merge with Embarcadero Bank. We feel that this partnership will provide the capital and scale necessary to take advantage of opportunities; deal with the increased regulatory burden placed on the banking industry and create long term shareholder value. We have submitted our application for regulatory approval and anticipate a response in the third quarter. As always we look forward to continuing our pursuit of premier performance and generating strong shareholder returns for years to come.”
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