ANNAPOLIS, Md., Jan. 25, 2012 /PRNewswire/ -- CommerceFirst
Bancorp, Inc. (the "Company") (NASDAQ: CMFB), the holding company
for CommerceFirst Bank, earned a consolidated net profit of
$1.8 million for the year ended
December 31, 2011 compared to a net
profit of $1.4 million for the year
ended December 31, 2010. Basic
and diluted earnings were $1.00 per
share in 2011 as compared to $0.78 in
2010. Earnings improved primarily as the result of the reduction of
the cost of deposits in 2011 due to re-pricing of the deposits to
lower current market interest rates. The Company's assets increased
modestly at December 31, 2011 over
December 31, 2010 primarily with the
increase in cash and cash equivalents as the Company increased its
liquidity position. Key measurements and events for the period
include the following:
- The Company's net income was $1.8
million for the year ended December
31, 2011 as compared to net income of $1.4 million for the year ended December 31, 2010, a 27.6% increase, largely
resulting from increased net interest income during 2011.
- Net interest income, the Company's main source of income,
increased by 7.7% from $9.4 million
in 2010 to $10.2 million in 2011. Net
interest income increased primarily because of the reduced cost of
funds during 2011. Interest expense declined because of the
re-pricing of a significant portion of the Company's certificates
of deposit as they were renewed or were replaced at reduced rates
during the 2011 and the reduction in the average interest
bearing deposits during 2011. Net interest margin was 5.04% during
2011 as compared to 4.69% in 2010.
- The provision for loan losses declined by 6.7% from
$2.7 million in 2010 to $2.5 million in 2011.
- Non-interest income increased by 4.8% from $1.09 million in 2010 to $1.15 million in 2011 and non-interest expenses
increased by 6.4% from $5.4 million
in 2010 to $5.8 million in 2011.
- Total assets increased by 2.1% from $203.1 million at December
31, 2010 to $207.3 million at
December 31, 2011.
- Net loans outstanding decreased by 0.2% from $181.7 million at December
31, 2010 to $181.3 million as
of December 31, 2011.
- Non-performing loans were $2.7
million, or 1.45% of loans receivable at December 31, 2011 and $7.3
million, or 3.94% of loans receivable at December 31, 2010. The allowance for loan losses
was $3.0 million at December 31, 2011 or 113.7% of non-performing
loans.
- Deposits increased by 1.4% from $180
million at December 31, 2010
to $183 million at December 31, 2011.
In December of 2011, the Board of Directors approved a merger
agreement with Sandy Spring Bancorp, Inc. subject to stockholders
approval.
CommerceFirst Bancorp, Inc. and
Subsidiary
Condensed
Consolidated Statements of Financial Condition
December 31,
2011 and December 31, 2010
(dollars in
thousands)
|
|
|
December
31,
|
|
December 31,
|
|
|
2011
|
|
2010
|
|
|
(Unaudited)
|
|
(Audited)
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$17,800
|
|
$13,726
|
|
|
Investments in restricted
stocks, at cost
|
509
|
|
527
|
|
|
Loans receivable, net of
allowance for loan losses
|
181,265
|
|
181,709
|
|
|
Other real estate
owned
|
4,232
|
|
3,324
|
|
|
Other assets
|
3,533
|
|
3,838
|
|
|
Total Assets
|
$207,339
|
|
$203,124
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
$182,608
|
|
$180,110
|
|
|
Other liabilities
|
551
|
|
649
|
|
|
Total Liabilities
|
183,159
|
|
180,759
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Common stock - $.01 par value;
authorized 4,000,000 shares.
|
|
|
|
|
|
Issued and outstanding:
1,820,548 shares at December 31,
|
|
|
|
|
|
2011 and
2010
|
18
|
|
18
|
|
|
Additional paid-in
capital
|
17,853
|
|
17,853
|
|
|
Retained earnings
|
6,309
|
|
4,494
|
|
|
Total Stockholders' Equity
|
24,180
|
|
22,365
|
|
|
Total Liabilities and Stockholders' Equity
|
$207,339
|
|
$203,124
|
|
|
|
|
|
|
|
|
|
CommerceFirst Bancorp, Inc. and
Subsidiary
Condensed
Consolidated Statements of Operations
For the
Years ended December 31, 2011 and 2010
(dollars in
thousands except per share data)
|
|
|
|
Year
Ended
|
|
|
|
|
December
31,
|
|
|
|
2011
|
|
2010
|
|
|
|
(Unaudited)
|
|
(Audited)
|
|
|
Interest income
|
$12,241
|
|
$12,560
|
|
|
Interest expense
|
2,086
|
|
3,130
|
|
|
Net
interest income
|
10,155
|
|
9,430
|
|
|
Provision for loan
losses
|
2,533
|
|
2,716
|
|
|
Net
interest income after provision for loan losses
|
7,622
|
|
6,714
|
|
|
|
|
|
|
|
|
Non-interest income
|
1,146
|
|
1,094
|
|
|
Non-interest expenses
|
5,784
|
|
5,434
|
|
|
Income before income taxes
|
2,984
|
|
2,374
|
|
|
Income tax expense
|
1,169
|
|
951
|
|
|
Net income
|
$1,815
|
|
$1,423
|
|
|
Basic and diluted earnings per
share
|
$1.00
|
|
$0.78
|
|
|
|
|
|
|
|
|
|
|
|
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.
Additional Information About the Merger and Where to Find
It
In connection with the proposed merger, Sandy Spring Bancorp,
Inc. will file with the Securities and Exchange Commission a
Registration Statement on Form S-4 that will include a Proxy
Statement of CommerceFirst Bancorp, Inc., and a Prospectus of Sandy
Spring Bancorp, as well as other relevant documents concerning the
proposed transaction. Shareholders are urged to read the
Registration Statement and the Proxy Statement/Prospectus regarding
the merger when it becomes available and any other relevant
documents filed with the SEC, as well as any amendments or
supplements to those documents, because they will contain important
information.
A free copy of the Proxy Statement/Prospectus, as well as other
filings containing information about Sandy Spring Bancorp and
CommerceFirst Bancorp, may be obtained at the SEC's Internet site
(http://www.sec.gov). You will also be able to obtain these
documents, free of charge, from Sandy Spring Bancorp at
www.sandyspringbank.com under the tab "Investor Relations," within
the section "News & Media" and then under the heading
"Documents" or from CommerceFirst Bancorp by accessing
CommerceFirst Bancorp's website at www.commerce1st.com under the
tab "About Us," within the section "Investor Relations" and then
under the heading "CommerceFirst Bancorp Securities and Exchange
Commission (SEC) Data Feed."
Sandy Spring Bancorp and CommerceFirst Bancorp and certain of
their directors and executive officers may be deemed to be
participants in the solicitation of proxies from the shareholders
of CommerceFirst Bancorp in connection with the proposed merger.
Information about the directors and executive officers of Sandy
Spring Bancorp is set forth in the proxy statement for Sandy Spring
Bancorp's 2011 annual meeting of shareholders, as filed with the
SEC on a Schedule 14A on March 28, 2011. Information about the
directors and executive officers of CommerceFirst Bancorp is set
forth in the proxy statement for CommerceFirst Bancorp's 2011
annual meeting of shareholders, as filed with the SEC on a Schedule
14A on March 16, 2011. Additional information regarding the
interests of those participants and other persons who may be deemed
participants in the transaction may be obtained by reading the
Proxy Statement/Prospectus regarding the proposed merger when it
becomes available. Free copies of this document may be obtained as
described in the preceding paragraph.
SOURCE CommerceFirst Bancorp, Inc.