Community National Bank Reports Second
Quarter 2010 Results Highlighted by an Increase
in Earnings Per Share and Completion of Its $18
Million Common Stock Offering
July 23, 2010 12:46 PM Eastern Daylight Time
GREAT NECK, N.Y.--(EON: Enhanced Online News)--Community National Bank (OTC BB: CBNY) today
reported performance achievements for the quarter ended June 30, 2010, highlighted by the Bank’s increase in
earnings, improved capital position and growth in commercial loans and demand deposits.
Net income for the quarter ended June 30, 2010 was $323 thousand or $0.06 earnings per share as compared to a
net loss of $56 thousand or loss per share of $(0.01) for the comparable period in 2009.
Net Interest Income
For the quarter ended June 30, 2010, net interest income and net interest margin were $3.5 million and 3.28%,
respectively, compared to $2.9 million and 3.14% for the same period in 2009. The increases were primarily due to
the growth in commercial lending, increased demand deposits and a significant decline in the cost of funds on
deposits. The Bank will continue its efforts to expand the number of small-to-medium sized business customers and
utilize core deposits from these relationships to fund future loan growth.
On a linked quarter basis, the Bank’s net interest income decreased slightly and the net interest margin declined 36
basis points from 3.64% at March 31, 2010 to 3.28% at June 30, 2010, respectively. The decline in our net interest
margin was due to the significant increase in lower yielding money market investments during the quarter. The
increase in money market investments was due to significant deposit growth, residential loan payoffs and the Bank’s
secondary equity offering. Mr. Stuart Lubow, Chairman, President and CEO, commented, “The Bank’s increased
liquidity position coincided with a decline in interest rates during the quarter. With the yield on the 10-year U.S.
Treasury bond below 3.00%, we have made a decision to slowly invest the exce