Coronado First Bank Strengthens Reserve Position
February 04, 2010 11:30 AM Eastern Time
CORONADO, Calif.--(EON: Enhanced Online News)--Bruce Ives, President and CEO of Coronado First Bank
(the “Bank”) (OTCBB: CDFB) announced today that based on continued analysis of the current and expected
economic conditions, the Bank increased its provision for loan losses by $717,000 in the quarter ended Dec. 31,
2009, resulting in a $728,000 loss for that period. For the full year 2009, the Bank increased its provision for loan
losses by $1,769,000, so that at year-end the provision for loan losses was 2.27% of total loans. The unaudited
financial results for the year, with the increased provision, show a loss of $1,746,000. These results equate to
($0.52) and ($1.25) loss per share, respectively.
Ives said that the Bank continues to monitor its loan portfolio in the context of the economic environment and that
increasing the reserve would provide additional protection against the effects of further economic deterioration in the
portfolio. Ives added, “While we are not pleased with the year-end loss, we remain committed to the long term
success of this organization and we are confident that building up our reserves is necessary to enable long term
success.”
Bill Huck, the Bank’s Board Chair, said “The loss for 2009 reflects substantial additions to the Bank’s provision for
loan losses, actual write-downs on residential and commercial loans in Coronado and coastal San Diego County and
increased operating costs due primarily to higher FDIC insurance premiums. We are committed to completing the
hard work necessary to both serve our market and produce the kind of results our shareholders expect from us.”
The Bank’s total revenue for 2009 increased 28% over 2008. The Bank generated a pre-provision operating profit
of $23,000 (income prior to loan loss provisions) for 2009. Total assets grew to $94 million and total deposits grew
to $84 million, increases of 29% and 46%, respectively over year-end 2