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Coronado First Bank Continues Strong and Stable Growth with Emphasis on Quality

Thursday, October 09, 2008

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CORONADO, Calif.--(BUSINESS WIRE)--Bruce Ives, President and CEO of Coronado First Bank (the “Bank”)(OTCBB:CDFB), announced financial results for the third quarter ended Sept. 30, 2008. Total assets grew to $67 million and total deposits grew to $53 million, an increase of 41% and 50% over the same period in 2007, respectively. The Bank had total loans, net of reserves, at quarter-end of $51 million, an increase of 34% over Sept. 30, 2007. Total revenue increased 30% over Sept. 30, 2007 to $3,049,000. The net interest margin of 4.4% continues to be one of the highest in the Bank’s peer group.

Mr. Ives stated, “In these tumultuous times in our industry, you can rest assured that we remain committed to consistent, steady growth with an emphasis on core fundamental lending practices. I am proud of not only the growth that we have experienced, but the solid foundation that has been established by our measured approach. This will allow us to continue our outreach beyond Coronado to attract quality personal and business relationships that are not currently being serviced by their existing banks.” Ives continued, “With our Certificate of Deposit Account Registry Service (“CDARS”) program in place that provides up to $50 million in FDIC coverage, we continue to generate new business from all over San Diego County. We will continue to look for innovative ways to grow the Bank in a safe and sound manner.”

The Bank reduced its unaudited year-to-date loss by 37% to $351,000. This represents ($0.25) diluted loss per share (inclusive of $141,000 of additional expense relating to the implementation of FAS 123R, which requires companies to record compensation expense related to stock options).

Ives concluded, “As we move out of our De Novo status, we look forward to taking advantage of new market opportunities. Our planned expansion to the downtown San Diego market is being facilitated by long time San Diego bankers, John Penrith and Betsy Chadwick. We are well positioned with a strong balance sheet, strong capital position and a service oriented reputation that will not only allow us to survive, but thrive in this economy. As always, we thank you for your continued support as we travel down the road to Premier Performance.”

Coronado First Bank is publicly traded on the Over-the-Counter Bulletin Board, ticker symbol: “CDFB.”

This press release includes forward-looking statements that involve inherent risks and uncertainties. Coronado First Bank cautions readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. These factors include economic conditions and competition in the geographic and business areas in which Coronado First Bank operates, inflation, fluctuations in interest rates, legislation and governmental regulation. We make no promise to update any forward-looking statement, whether as a result of changes in underlying factors, new information, future events or otherwise.

Source: BUSINESS WIRE