ANNAPOLIS, Md., Feb. 8 /PRNewswire-FirstCall/ -- CommerceFirst Bancorp, Inc. , the holding company for CommerceFirst Bank, earned a consolidated net profit of $1,087,814 for the year ended December 31, 2007 compared to a net profit of $1,282,528 for the year ended December 31, 2006. The Company continued its pattern of growth during the year ended December 31, 2007. This growth has resulted in increased revenues as compared to prior periods. The Company continues to experience strong loan demand for commercial loans and commercial real estate loans. The Company has no consumer loans and commercial loans are primarily provided to locally owned business relationships that are based in the Bank's primary service area. Key measurements and events for the year ended December 31, 2007 include the following:
-- Net loans outstanding increased by 31.1% to $125 million as of December 31, 2007 from $95 million as of December 31, 2006. -- Total assets as of December 31, 2007 increased by 5.3% to $149 million as compared to $141 million as of December 31, 2006. -- Deposits as of December 31, 2007 were $123 million, an increase of $11 million or 10.0% from December 31, 2006. -- The Company's net income decreased to $1.088 million, or 15.2%, for the year ended December 31, 2007 as compared to net income of $1.282 million for the year ended December 31, 2006. -- Net interest income, the Company's main source of income, was $6.0 million during the year ended December 31, 2007 compared to $5.3 million for the same period in 2006. This represents an increase of 12.4% for the year December 31, 2007 as compared to 2006. -- Non-interest expenses increased by $1.096 million or 30.0%, for the year ended December 31, 2007, as compared to 2006 as the result of changing the Bank's core data processor, its internet service provider, changes to its communication system and costs of additional branches.
Earnings were adversely influenced by a decline in the Company's net interest margin and increased expenses compared to last year. Net interest margin declined from 5.06% in 2006 to 4.38% in 2007 as the cost of funds increased faster than increases in the yields on interest earning assets. The increase in expenses was primarily the relate of the strategic implementation and expansion of the Bank's branch network from two to five over the past fifteen months. Additionally, management implemented other infrastructure objectives in many areas of technology, changed core processing vendors, retained a new internet banking provider and renovated the Company's head office branch and administrative facilities. These improvements will allow the Company to support its measured growth plan.
Forward Looking Statements. This press release includes forward looking statements within the meaning of Section 21(e) of the Securities Exchange Act of 1934. These statements are based on the Company's current expectations and estimates as to prospective events and circumstances that may or may not be in the Company's control and as to which there can be no firm assurances given. These forward looking statements are subject to risks and uncertainties; there can be no assurance that any of these forward looking statements may prove to be correct and actual results may differ materially.
CommerceFirst Bancorp, Inc. and Subsidiary Consolidated Statements of Financial Condition December 31, 2007 and December 31, 2006 December 31, December 31, 2007 2006 ASSETS (Unaudited) (Audited) Cash and due from banks $3,001,573 $3,689,487 Federal funds sold 8,723,315 28,665,993 Cash and cash equivalents 11,724,888 32,355,480 Investment securities - available for sale, at fair value 9,167,700 11,012,774 Investments in restricted stocks, at cost 467,000 467,000 Loans receivable, net of allowance for loan losses of $1,665,000 at December 31, 2007 and $1,613,693 at December 31, 2006 124,669,790 95,080,787 Premises and equipment, net 1,097,927 578,024 Accrued interest receivable 742,766 654,044 Deferred income taxes 551,882 549,021 Other assets 388,630 572,641 Total Assets $148,810,583 $141,269,771 LIABILITIES Non-interest bearing deposits $19,245,887 $19,014,612 Interest bearing deposits 104,161,959 93,190,128 Total deposits 123,407,846 112,204,740 Securities sold under agreements to repurchase 4,305,936 9,579,116 Accrued interest payable 201,253 175,839 Other liabilities 839,187 623,091 Total Liabilities 128,754,222 122,582,786 STOCKHOLDERS' EQUITY Common stock - $.01 par value; authorized 4,000,000 shares. Issued and outstanding: 1,820,548 shares at December 31, 2007 and 1,803,583 at December 31, 2006 18,205 18,036 Additional paid-in capital 17,852,931 17,683,450 Retained earnings 2,097,967 1,010,153 Accumulated other comprehensive loss: Unrealized gain (loss) on securities available for sale 87,258 (24,654) Total Stockholders' Equity 20,056,361 18,686,985 Total Liabilities and Stockholders' Equity $148,810,583 $141,269,771 CommerceFirst Bancorp, Inc. and Subsidiary Consolidated Statement of Operations For the years Ended December 31, 2007, 2006 and 2005 December 31, December 31, December 31, 2007 2006 2005 Interest income: (Unaudited) (Audited) (Audited) Interest and fees on loans $9,680,244 $7,451,852 $4,949,541 U.S. Treasury securities 434,685 251,378 275,168 Investment in stocks 25,153 25,087 20,923 Federal funds sold 682,783 477,785 393,253 Total interest income 10,822,865 8,206,102 5,638,885 Interest expense: Deposits 4,775,274 2,773,737 1,402,736 Repurchase agreements 91,605 127,863 35,993 Federal funds purchased - 3,876 - Total interest expense 4,866,879 2,905,476 1,438,729 Net interest income 5,955,986 5,300,626 4,200,155 Provision for loan losses 45,383 225,000 360,000 Net interest income after provision for loan losses 5,910,603 5,075,626 3,840,155 Non-interest income: Gain on sale of SBA loans 344,421 300,443 329,887 Service charges and other income 276,433 332,443 294,634 Total non-interest income 620,854 632,886 624,521 Non-interest expenses: Compensation and benefits 2,646,492 2,210,744 1,732,805 Legal and professional 221,479 174,990 111,576 Rent and occupancy 500,911 329,989 254,199 Marketing and business development 107,617 111,850 53,196 Core processing conversion 117,227 - - Insurance 42,433 41,858 33,953 Data processing 112,287 83,230 72,161 Support services 132,546 154,161 164,403 Communications 106,260 33,523 13,053 Office supplies 101,406 90,470 42,810 SBA interest strip amortization 61,413 79,835 24,457 Depreciation and amortization 233,681 119,565 83,331 Other 365,386 221,970 187,158 Total non-interest expenses 4,749,138 3,652,185 2,773,102 Income before income taxes 1,782,319 2,056,327 1,691,575 Income tax expense 694,505 773,799 658,155 Net income $1,087,814 $1,282,528 $1,033,420 Basic earnings per share $0.60 $0.71 $0.63 Diluted earnings per share $0.59 $0.69 $0.62
