Commerce First Bancorp Inc. (CMFB, Financial) filed Quarterly Report for the period ended 2009-06-30.
CommerceFirst Bancorp operates as a community bank alternative to the super-regional financial institutions that dominate its primary market area. The cornerstone of the Bank's philosophy is to provide superior individualized service to its customers. The Bank focuses on relationship banking providing each customer with a number of services familiarizing itself with and addressing itself to customer needs in a proactive personalized fashion. Commerce First Bancorp Inc. has a market cap of $10.9 million; its shares were traded at around $5.9999 with and P/S ratio of 1.
Interest expense decreased by $199 thousand or 7.8% to $2.3 million for the six months ended June 30, 2009 as compared to $2.5 million during the first six months of 2008. This decrease was primarily attributable to the decrease in the cost of funds from 4.5% during the first half of 2008 to 3.6% during the first half of 2009. The decline in the cost of funds was partially offset by the increase in average interest bearing liabilities of $17.4 million during 2009 as compared to 2008.
Non-Interest Income. Non-interest income principally consists of gains from the sale of the guaranteed portion of Small Business Administration loans and from deposit account services charges. For the six months ended June 30, 2009, gains on sales of the guaranteed portion of SBA loans was $118 thousand whereas gains on sales of SBA loans amounted to $130 thousand during the first half of 2008. Generally, the Bank desires to sell the guaranteed portion of most additional SBA loans resulting in a continuing stream of income that may vary significantly from quarter to quarter, depending in part upon the volume of loans actually sold. Deposit account service charges amounted to $208 thousand during the six months ended June 30, 2009 as compared to $117 thousand for the same period in 2008 reflecting higher service charges assessed on deposit account activities. The Company increased service charge rates as well as chargeable items during 2009.
Non-Interest Income. For the three months ended June 30, 2009, gains on sales of the guaranteed portion of SBA loans were $118 thousand whereas gains on sales of SBA loans amounted to $99 thousand during the same period in 2008. Deposit account service charges amounted to $107 thousand during the three months ended June 30, 2009 as compared to $53 thousand for the same period in 2008 reflecting higher service charges assessed on deposit account activities. The Company increased service charge rates as well as chargeable items during 2009.
General. The Companys assets at June 30, 2009 were $192.1 million, an increase of $25.5 million or 15.3%, from December 31, 2008. Gross loans totaled $169.1 million is comprised of real estate loans of $101.4 million, an increase of $7.2 million, or 7.6%, from December 31, 2008 and commercial loans of $67.7 million, a decrease of $8.9 million, or 15.2% from December 31, 2008. At June 30, 2009, deposits totaled $170.5 million an increase of $25.2 million, or 17.4%, from December 31, 2008. Deposits at June 30, 2009 are comprised primarily of certificates of deposit of $130.2 million, NOW and Money Market accounts of $16.3 million, savings accounts of $3.3 million and noninterest bearing deposits of $20.7 million.
Loan Portfolio. The loan portfolio is the largest component of earning assets and accounts for the greatest portion of total interest income. At June 30, 2009, net loans were $166.9 million, a 10.5% increase from the $151.1 million in loans outstanding at December 31, 2008. In general, loans consist of internally generated loans and, to lesser degree, participation loans purchased from other local community banks. Lending activity is generally confined to our immediate market areas. The Company continues its efforts to increase investments in loans to better utilize its resources and leverage capital obtained from the issuance of common stock in 2005. The Company has not reduced its credit underwriting standards to achieve loan growth. The Company has approximately $2.4 million of acquisition and construction loans secured by residential building lots. The Company does not engage in foreign lending activities. Loans secured by residential real estate are loans to investors for commercial purposes. The Bank does not lend funds to consumers. The following table presents the composition of the loan portfolio by type of loan at the dates indicated.
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CommerceFirst Bancorp operates as a community bank alternative to the super-regional financial institutions that dominate its primary market area. The cornerstone of the Bank's philosophy is to provide superior individualized service to its customers. The Bank focuses on relationship banking providing each customer with a number of services familiarizing itself with and addressing itself to customer needs in a proactive personalized fashion. Commerce First Bancorp Inc. has a market cap of $10.9 million; its shares were traded at around $5.9999 with and P/S ratio of 1.
Highlight of Business Operations:
The Company reported net income of $99.9 thousand for the six-month period ended June 30, 2009 as compared to net income of $309.5 thousand for the six-month period ended June 30, 2008. The reduced earnings in 2009 are the result of the increase in the provision for loan losses from $59 thousand during the first six months of 2008 to $799 thousand for the same period in 2009. The Company is increasing its allowance for loan losses in recognition of the detrimental effect of the weakened economy on its loan customers. The level of impaired loans and the amount of loans for which specific reserves have been established have increased as compared to the first quarter of 2008 resulting in the increase of provisions for loan losses during the first half of 2009 as compared to the same period in 2008. Net interest income increased in 2009 as compared to 2008 by $512 thousand (18.2%). During 2008, the Companys net interest income was negatively affected by the reduced interest rate environment initiated by the Federal Reserve Bank in late 2007. In the first half of 2009, the average interest rate paid on interest bearing funds declined at a more rapid pace then the decline in the average interest rate earned on interest earning assets. This resulted in increases in net interest spread, net interest margin and net interest income. The increase in non-interest expenses of $128 thousand was somewhat offset by increases in non- interest income of $38 thousand. The largest non-interest expense increase was the $162 thousand increase in federal deposit insurance premiums.Interest expense decreased by $199 thousand or 7.8% to $2.3 million for the six months ended June 30, 2009 as compared to $2.5 million during the first six months of 2008. This decrease was primarily attributable to the decrease in the cost of funds from 4.5% during the first half of 2008 to 3.6% during the first half of 2009. The decline in the cost of funds was partially offset by the increase in average interest bearing liabilities of $17.4 million during 2009 as compared to 2008.
Non-Interest Income. Non-interest income principally consists of gains from the sale of the guaranteed portion of Small Business Administration loans and from deposit account services charges. For the six months ended June 30, 2009, gains on sales of the guaranteed portion of SBA loans was $118 thousand whereas gains on sales of SBA loans amounted to $130 thousand during the first half of 2008. Generally, the Bank desires to sell the guaranteed portion of most additional SBA loans resulting in a continuing stream of income that may vary significantly from quarter to quarter, depending in part upon the volume of loans actually sold. Deposit account service charges amounted to $208 thousand during the six months ended June 30, 2009 as compared to $117 thousand for the same period in 2008 reflecting higher service charges assessed on deposit account activities. The Company increased service charge rates as well as chargeable items during 2009.
Non-Interest Income. For the three months ended June 30, 2009, gains on sales of the guaranteed portion of SBA loans were $118 thousand whereas gains on sales of SBA loans amounted to $99 thousand during the same period in 2008. Deposit account service charges amounted to $107 thousand during the three months ended June 30, 2009 as compared to $53 thousand for the same period in 2008 reflecting higher service charges assessed on deposit account activities. The Company increased service charge rates as well as chargeable items during 2009.
General. The Companys assets at June 30, 2009 were $192.1 million, an increase of $25.5 million or 15.3%, from December 31, 2008. Gross loans totaled $169.1 million is comprised of real estate loans of $101.4 million, an increase of $7.2 million, or 7.6%, from December 31, 2008 and commercial loans of $67.7 million, a decrease of $8.9 million, or 15.2% from December 31, 2008. At June 30, 2009, deposits totaled $170.5 million an increase of $25.2 million, or 17.4%, from December 31, 2008. Deposits at June 30, 2009 are comprised primarily of certificates of deposit of $130.2 million, NOW and Money Market accounts of $16.3 million, savings accounts of $3.3 million and noninterest bearing deposits of $20.7 million.
Loan Portfolio. The loan portfolio is the largest component of earning assets and accounts for the greatest portion of total interest income. At June 30, 2009, net loans were $166.9 million, a 10.5% increase from the $151.1 million in loans outstanding at December 31, 2008. In general, loans consist of internally generated loans and, to lesser degree, participation loans purchased from other local community banks. Lending activity is generally confined to our immediate market areas. The Company continues its efforts to increase investments in loans to better utilize its resources and leverage capital obtained from the issuance of common stock in 2005. The Company has not reduced its credit underwriting standards to achieve loan growth. The Company has approximately $2.4 million of acquisition and construction loans secured by residential building lots. The Company does not engage in foreign lending activities. Loans secured by residential real estate are loans to investors for commercial purposes. The Bank does not lend funds to consumers. The following table presents the composition of the loan portfolio by type of loan at the dates indicated.
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