CommerceFirst Bancorp Announces Results of Operations

ANNAPOLIS, Md., Nov. 5, 2010 /PRNewswire-FirstCall/ -- CommerceFirst Bancorp, Inc. (Nasdaq: CMFB), the holding company for CommerceFirst Bank, earned a consolidated net profit of $1.3 million for the nine months ended September 30, 2010 compared to a net profit of $292 thousand for the nine months ended September 30, 2009. Basic and diluted earnings were $0.70 per share for the first nine months of 2010 as compared to $0.16 for the same period in 2009. Earnings improved primarily as the result of asset growth, the reduction of the cost of deposits due to re-pricing of the deposits to lower current market interest rates and an increase in the gains on sales of loans. The provision for loan losses continues to remain relatively high as compared to prior years in recognition of the effect of uncertain economic conditions on the Company's borrowers and collateral values. The Company assets increased modestly at September 30, 2010 from December 31, 2009 primarily with the increase in cash and cash equivalents as the Company increased its liquidity position. Key measurements and events for the period include the following:

The Company's net income was $1.3 million during the nine months ended September 30, 2010 as compared to net income of $292 thousand for the nine month period ended September 30, 2009 largely resulting from increased net interest income during 2010.

Net interest income, the Company's main source of income, increased by 35.8% from $5.2 million during the nine month period ended September 30, 2009 to $7.0 million for the nine months ended September 30, 2010. Net interest income increased primarily because of the increase in average earning assets and the reduced cost of funds during 2010. Interest expense declined in spite of the increase in interest bearing deposits because of the re-pricing of a significant portion of the Company's longer term certificates of deposit as they were renewed or were replaced at substantially reduced rates during the last quarter of 2009 and first nine months of 2010. Net interest margin was 4.64% in the nine months of 2010, as compared to 3.87% in the comparable period in 2009

Non-interest income increased by 55.1% from $503 thousand for the nine month period ended September 30, 2009 to $780 thousand for the nine month period ended September 30, 2010 primarily from increased gains on loan sales during 2010. Non-interest expenses increased by 0.1% from $4.04 million for the nine months ended September 30, 2009 to $4.05 million for the nine month period ended September 30, 2010.

Total assets increased by 2.8% from $200 million at December 31, 2009 to $206 million at September 30, 2010.

Net loans outstanding decreased by 0.5% from $183 million at December 31, 2009 to $182 million as of September 30, 2010. The small decrease in the loan balances from December 31, 2009 to September 30, 2010 resulted partially from the sale of SBA guaranteed portions of loans in the amount of $6.6 million during the first nine months of 2010. Without these sales, loan balances would have increased by $5.6 million.

Non-performing loans were $3.0 million at September 30, 2010 and $2.7 million at December 31, 2009. The allowance for loan losses was $2.5 million at September 30, 2010 or 84.5% of non-performing loans. There were no additions to other real estate owned during the nine months of 2010.

Deposits increased by 2.4% from $179 million at December 31, 2009 to $183 million at September 30, 2010.

Forward Looking Statements. This press release includes forward looking statements within the meaning of Section 21(e) of the Securities Exchange Act of 1934. These statements are based on the Company's current expectations and estimates as to prospective events and circumstances that may or may not be in the Company's control and as to which there can be no firm assurances given. These forward looking statements are subject to risks and uncertainties; there can be no assurance that any of these forward looking statements may prove to be correct and actual results may differ materially.

CommerceFirst Bancorp, Inc. and Subsidiary Condensed Consolidated Statements of Financial Condition September 30, 2010 and December 31, 2009 (dollars in thousands)
	September 30,	December 31,
	2010	2009
	(Unaudited)	(Audited)
ASSETS

Cash and cash equivalents	$17,202	$10,488
Investments in restricted stocks, at cost	527	527
Loans receivable, net of allowance for loan losses	182,098	183,102
Other real estate owned	2,387	2,462
Other assets	3,773	3,792
Total Assets	$205,987	$200,371

LIABILITIES

Deposits	$182,966	$178,645
Other liabilities	807	784
Total Liabilities	183,773	179,429


STOCKHOLDERS' EQUITY
Common stock - $.01 par value; authorized 4,000,000 shares.
Issued and outstanding: 1,820,548 shares at September 30,
2010 and at December 31, 2009	18	18
Additional paid-in capital	17,853	17,853
Retained earnings	4,343	3,071
Total Stockholders' Equity	22,214	20,942
Total Liabilities and Stockholders' Equity	$205,987	$200,371

CommerceFirst Bancorp, Inc. and Subsidiary Condensed Consolidated Statements of Operations For the Nine Months ended September 30, 2010 and 2009 (dollars in thousands except per share data)
		Nine Months Ended
		September 30,
	2010		2009
	(Unaudited)		(Unaudited)
Interest income	$9,533		$8,726
Interest expense	2,500		3,547
Net interest income	7,033		5,179
Provision for loan losses	1,646		1,149
Net interest income after provision for loan losses	5,387		4,030

Non-interest income	780		503
Non-interest expenses	4,048		4,044
Income before income taxes	2,119		489
Income tax expense	847		197
Net income	$1,272		$292
Basic earnings per share	$0.70		$0.16
Diluted earnings per share	$0.70		$0.16