Commerce National Bank Announces 2012 Fourth Quarter and Year to Date Results

NEWPORT BEACH, CA--(Marketwire - Jan 21, 2013) - Commerce National Bank (OTCBB: CNBF), a community business bank in its tenth year of operation, announced its financial results for the fourth quarter and full year of 2012. The amounts in this announcement are unaudited and subject to being revised at the conclusion of management's review of the results and the completion of the annual audit conducted by the independent auditors of the Bank.

For the twelve month period ended December 31, 2012, the Bank reported net income of $1,771,000 as compared to net income of $676,000 for the same period in 2011. For the three month period ended December 31, 2012, the Bank reported net income of $641,000 as compared to net income of $217,000 for the same period in 2011. For the twelve and three month periods ended December 31, 2012, respectively, the Bank recorded provisions for loan and lease losses of $475,000 and zero as compared to provisions of $2,811,000 and $961,000 for the similar periods in 2011.

Realized gains on the sale of available-for-sale securities increased approximately $959,000 and $288,000 for the twelve and three month periods ended December 31, 2012, respectively, compared to the same periods of the prior year. Non-interest income decreased by $867,000 and $144,000 for the twelve and three month periods ended December 31, 2012, as compared to the same periods last year. The changes in non-interest income were primarily due to smaller fees generated in 2012 by gains on the sales of SBA loans. For the twelve month period ended December 31, 2012, non-interest expense increased $608,000; while for the three month period ended December 31, 2012, non-interest expense increased $239,000, compared to the same periods in 2011.

As of December 31, 2012, the Bank reported total assets of $248.1 million, representing an increase of $11.6 million from December 31, 2011. Total deposits at December 31, 2012 were $216.5 million, an increase of $9.8 million from the prior year. Gross loans at December 31, 2012 were $152.4 million, representing an increase of $1.7 million from the prior year. Total shareholders' equity as of December 31, 2012 was $30.0 million, an increase of $1.8 million from the prior year. At December 31, 2012 the Bank continued to be a well-capitalized institution.

With its headquarters office in Newport Beach near John Wayne airport and a loan production office in Anaheim, the Bank is well positioned to serve businesses, professionals and selected real estate customers throughout Orange County. The Bank is staffed by experienced business bankers who are committed to providing exemplary service to their customers in the business community.

Forward-Looking Statement
This news release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about Commerce National Bank's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: Commerce National Bank's timely development of new products and services, technological changes, changes in consumer spending and savings habits and other risks discussed from time to time in Commerce National Bank's reports and filings with the Office of the Comptroller of the Currency. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and Commerce National Bank does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

Condensed Statements of Operations
In Thousands (Except Per Share Amounts) - Unaudited
				Three Months Ended						Twelve Months Ended
				December 31,						December 31,
				2012			2011			2012			2011
	Interest Income			$	2,531		$	2,745		$	10,533		$	10,808
	Interest Expense				231			258			934			1,238
Net Interest Income					2,300			2,488			9,599			9,570
	Provision for Loan Losses				0			961			475			2,811
Net Interest Income After
		Provision for Loan Losses			2,300			1,527			9,124			6,759
	Non-Interest Income				687			832			2,038			2,905
	Non-Interest Expense				2,204			1,965			9,122			8,514
	Gain on Securities or OREO Sales, Net				299			10			1,010			50
Income Before Income Taxes					1,082			404			3,050			1,201
	Income Tax Expense				442			187			1,279			525
Net Income				$	641		$	217		$	1,771		$	676
	Basic Earnings Per Share			$	0.24		$	0.08		$	0.67		$	0.25
	Diluted Earnings Per Share			$	0.24		$	0.08		$	0.66		$	0.25

Condensed Statements of Financial Condition
In Thousands - Unaudited
				December 31,
Assets				2012			2011
		Cash & Due From Banks		$	3,778		$	3,839
		Federal Funds Sold & Excess Balances at FRB			9,022			1,205
		Investments			81,272			78,552
		Loans, Gross			152,432			150,684
		Allowance for Loan and Lease Losses			4,388			4,755
		Loans, Net			148,044			145,929
		Other Assets			5,988			6,955
	Total Assets			$	248,104		$	236,480
Liabilities & Shareholders' Equity
		Demand Deposits		$	65,361		$	52,145
		Money Market, Savings and NOW Accounts			48,768			44,139
		Certificates of Deposit			102,376			110,404
	Total Deposits				216,505			206,688
		Other Borrowings			0			0
		Other Liabilities			1,572			1,562
	Total Shareholders' Equity				30,027			28,230
	Total Liabilities & Shareholders' Equity			$	248,104		$	236,480