Commerce First Bancorp Inc. (CMFB, Financial) filed Quarterly Report for the period ended 2010-09-30.
Commerce First Bancorp Inc. has a market cap of $16.5 million; its shares were traded at around $8.71 with and P/S ratio of 1.3.
Total interest income increased by $807 thousand or 9.3% to $9.5 million for the nine month period ended September 30, 2010 as compared to the same period in 2009. This increase in interest income was attributable to the $23.8 million increase in average earning assets during the first three quarters of 2010 as compared to the same period in 2009. Interest income was adversely affected by the 23 basis point decline in the yield of the average earning assets from 6.5% in 2009 to 6.3% in 2010.
Interest expense decreased by $1.0 million or 29.5% to $2.5 million for the nine months ended September 30, 2010 as compared to $3.5 million during the same nine months of 2009. This decrease was primarily attributable to the 135 basis point decrease in the cost of funds from 3.4% during the first nine months of 2009 to 2.0% during the first nine months of 2010. The decline in the cost of funds was partially offset by the $23.9 million increase in average interest bearing liabilities during 2010 as compared to 2009.
The net interest income for the nine month period ended September 30, 2010 was $7.0 million as compared to $5.2 million for the same period in 2009. Net interest income increased primarily because of the increase in average earning assets and the reduced cost of funds during the nine months ended September 30, 2010 as compared to the nine months ended September 30, 2009.
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Commerce First Bancorp Inc. has a market cap of $16.5 million; its shares were traded at around $8.71 with and P/S ratio of 1.3.
Highlight of Business Operations:
General. The Company reported net income of $1.3 million for the nine months ended September 30, 2010 as compared to net income of $292 thousand for the nine month period ended September 30, 2009. Earnings increased during 2010 as the result of the increase in earning assets, reduction of interest expense and the increase in gains on loan sales. The provision for loan losses was $1.6 million during 2010 as compared to $1.1 million in 2009, an increase of $0.5 million, or 43.3%. The Company continues to experience the detrimental effects of the weakened economy on its loan customers which effects are recognized through the Companys provision for loan losses and loan charge-offs. The amount of non-accrual loans increased by $263 thousand, or 9.6%, at September 30, 2010 as compared to December 31, 2009. Net interest income increased in 2010 as compared to 2009 by $1.9 million, or 35.8%. This increase resulted primarily from increases in earning assets and reduced cost of deposits. During the first half of 2010 and the last quarter of 2009, a significant amount of high interest rate, longer term certificates of deposit matured and were either re-priced at lower rates or replaced with lower rate accounts. Additional higher rate certificates of deposit were re-priced or replaced at lower interest rates during the third quarter of 2010 resulting in increases in net interest income, net interest margin and net interest spread. However, the amount of such certificates available to be re-priced in future quarters is diminishing. There are approximately $2 million of certificates of deposit with interest rates greater than 3% at September 30, 2010. Most of these accounts mature during the fourth quarter of 2010; therefore, subsequent increases in net income, net interest margin and net interest spread as a result of reduction in the cost of deposits may be more difficult to achieve or be less significant.Total interest income increased by $807 thousand or 9.3% to $9.5 million for the nine month period ended September 30, 2010 as compared to the same period in 2009. This increase in interest income was attributable to the $23.8 million increase in average earning assets during the first three quarters of 2010 as compared to the same period in 2009. Interest income was adversely affected by the 23 basis point decline in the yield of the average earning assets from 6.5% in 2009 to 6.3% in 2010.
Interest expense decreased by $1.0 million or 29.5% to $2.5 million for the nine months ended September 30, 2010 as compared to $3.5 million during the same nine months of 2009. This decrease was primarily attributable to the 135 basis point decrease in the cost of funds from 3.4% during the first nine months of 2009 to 2.0% during the first nine months of 2010. The decline in the cost of funds was partially offset by the $23.9 million increase in average interest bearing liabilities during 2010 as compared to 2009.
The net interest income for the nine month period ended September 30, 2010 was $7.0 million as compared to $5.2 million for the same period in 2009. Net interest income increased primarily because of the increase in average earning assets and the reduced cost of funds during the nine months ended September 30, 2010 as compared to the nine months ended September 30, 2009.
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