Commerce National Bank (OTCBB:CNBF), a community business bank in its third year of operation, announced its financial results for the fourth quarter of 2006. As of December 31, 2006, the Bank reported total assets of $168.7 million, representing an increase of $54.9 million, or 48% from December 31, 2005. Total deposits were $141.7 million, an increase of $52.8 million, or 59% from prior year. Net loans were $97.6 million, an increase of $32.7 million, or 50% from prior year. Total shareholders' equity as of December 31, 2006 was $26.6 million, representing an increase of $1.9 million, or 8% over total shareholders' equity of $24.7 million at December 31, 2005.
For the quarter ended December 31, 2006, Commerce National Bank reported net income of $818,000, a $768,000 increase from the same period last year, after recording stock option expense of $174,000 in the fourth quarter of 2006. The Bank also recorded an income tax benefit of $480,000 during the fourth quarter of 2006. For the year ended December 31, 2006, the Bank reported net income of $684,000, an increase of $1.4 million from the same period in 2005, after recording stock option expense of $679,000 in 2006. Beginning in January 2006, the Bank recorded stock option expense pursuant to the requirements of SFAS 123r "Share-Based Payments." In prior years, the Bank followed the intrinsic value method, which did not require the recording of stock option expense.
Basic Earnings Per Share for the fourth quarter and the year ended December 31, 2006 was $0.31 and $0.26, respectively, compared to $0.02 and ($0.42) for the same periods last year. Diluted Earnings Per Share for the fourth quarter and the year ended December 31, 2006 was $0.30 and $0.25, respectively, compared to $0.02 and ($0.42) for the same periods last year.
For the fourth quarter of 2006, net interest income totaled $1.8 million, representing an increase of $602,000, or 51%, over the same period last year. Interest income increased $1.2 million, or 73%, which was partly offset by an increase in interest expense of $551,000, or 140%. For the year ended December 31, 2006, net interest income totaled $6.2 million, representing an increase of $2.7 million, or 75%, over last year. Interest income increased $4.6 million, or 100%, which was partly offset by an increase in interest expense of $1.9 million, or 185%.
Non-interest income increased $197,000 and $468,000 for the three and twelve months ended December 31, 2006, respectively, compared to the same periods in 2005, primarily as a result of the income from the Small Business Administration (SBA) Department that was formed in March 2006.
Non-interest expense increased $552,000 and $2.2 million for the three and twelve months ended December 31, 2006, respectively, compared to the same periods in 2005. The increase was primarily due to the recording of stock option compensation expense and an increase in the number of employees in 2006.
With offices in Newport Beach and 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.
Condensed Statement of Operations (Unaudited) (In thousand dollars, except per share amounts) Three Months Ended Year Ended December 31 December 31 ------------------ ----------------- 2006 2005 2006 2005 --------- -------- -------- -------- Interest Income $2,726 $1,573 $9,180 $4,590 Interest Expense (944) (393) (2,987) (1,050) --------- -------- -------- -------- Net Interest Income 1,782 1,180 6,193 3,540 Provision for Loan Losses (75) (116) (439) (476) --------- -------- -------- -------- Net Interest Income After Provision for Loan Losses 1,707 1,064 5,754 3,064 Non Interest Income 278 81 572 104 Non Interest Expense (1,647) (1,095) (6,121) (3,930) --------- -------- -------- -------- Net Income (Loss) Before Income Taxes 338 50 205 (762) Income Tax Benefit (Expense) 480 0 479 (1) --------- -------- -------- -------- Net Income (Loss) $818 $50 $684 $(763) ========= ======== ======== ======== Basic Earnings (Loss) Per Share $0.31 $0.02 $0.26 $(0.42) ========= ======== ======== ======== Diluted Earnings (Loss) Per Share $0.30 $0.02 $0.25 $(0.42) ========= ======== ======== ========
Condensed Statement of Financial Condition (Unaudited) (In thousand dollars) December 31, ------------------- Assets 2006 2005 --------- --------- Cash & Due From Banks $4,370 $3,455 Federal Funds Sold 36,855 6,280 Investments 26,063 36,409 Loans (Net) 97,617 64,869 Other Assets 3,748 2,728 --------- --------- Total Assets $168,653 $113,741 ========= ========= Liabilities & Shareholders' Equity Demand Deposits $30,551 $22,830 Money Market, Savings, NOW & Certificates of Deposit 111,107 66,038 --------- --------- Total Deposits 141,658 88,868 Other Liabilities 436 206 Shareholders' Equity 26,559 24,667 --------- --------- Total Liabilities & Shareholders' Equity $168,653 $113,741 ========= =========
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.
Commerce National Bank Mark Simmons, President/CEO, 949-870-3860 Fax: 949-870-4499 [email protected]