CORONADO, CA–(Marketwire – February 7, 2011) – Bruce Ives, President and CEO of Coronado First Bank (the “Bank”) (OTCBB: CDFB), announced today that the Bank posted a fourth quarter profit of $31,000 (inclusive of a $51,000 loss associated with the sale of a $1,718,000 Other Real Estate Owned “OREO” in January 2011), and a year-end loss of ($111,000) compared to quarterly and full year losses in 2009 of ($728,000) and ($1,746,000), respectively. “We are pleased that our 2010 operating loss is substantially lower than 2009, and that we are moving forward, posting earnings in three of four quarters in 2010,” Ives stated.
Total assets decreased by 11% to $83 million as the Bank continued to re-align its balance sheet by reducing CRE (Commercial Real Estate) concentrations and reducing non-performing assets. Emphasis was also placed on increasing the Bank’s core deposit position. The Bank finished the year with 73% of its deposit base in core deposits compared to only 49% at year-end 2009. This allowed the Bank to reduce its cost of funds and maximize its net interest margin, ending the year over 4%.
While interest income was down by 8%, this was more than offset by a 42% reduction in interest expense. This resulted in a 6% increase in net interest income for the year. Simultaneously, the Bank reduced non-interest expense by 1% on the year.
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