Coronado First Bank Cautiously Optimistic after First Quarter Results

CORONADO, Calif.–(BUSINESS WIRE)–Bruce Ives, President and CEO of Coronado First Bank (the “Bank”) (OTCBB: CDFB), announced unaudited financial results for the first quarter ended March 31, 2010. Total assets grew to $93 million and total deposits grew to $83 million, an increase of 14% and 19% over March 31, 2009, respectively. Total loans were reduced by 5% to $72 million, while total deposits increased by 19% to $83 million. The Bank reported a first quarter profit of $64,000 ($0.05 diluted income per share) compared with a loss of $149,000 for the first quarter of last year. At March 31, 2010, the Bank’s Tier 1 capital ratio was 9.78% and its total risk weighted capital ratio was 14.83%.

100% of the Bank’s deposit growth was in the core deposit category, which generally represents a more stable source and lower cost of funds. One of management’s primary objectives in opening an office in downtown San Diego last summer was to attract additional core deposits to assist in repositioning the Bank’s balance sheet to reflect a stronger core deposit position. Core deposits now represent 68% of the Bank’s deposit base as compared to 47% on March 31, 2009. Non-interest bearing accounts now represent 16% of total deposits as compared to 12% during the same period last year. Compared with the first quarter of 2009, net interest income (the Bank’s primary revenue source) increased by 15% as the result of higher top line revenue and lower interest expense.

Bruce Ives, President and CEO, stated, “While we are pleased with the first quarter results, we remain cautious as we begin the process of economic recovery. The Bank’s board of directors and management recognize that there are still fundamental weaknesses within our economy. We will continue to monitor our loan portfolio, actively address loan problems and adjust our balance sheet composition to try to ensure the long term success of Coronado First Bank.”

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