CommerceFirst Bancorp Releases 2004 Financial Results ANNAPOLIS, Md., Feb. 3 /PRNewswire-FirstCall/ -- CommerceFirst Bancorp, Inc., (OTC:CMFB) (BULLETIN BOARD: CMFB) , the parent company of CommerceFirst Bank, today released financial results for its fourth full year of operations, as follows: * Assets at December 31, 2004 were $75.9 million, an increase of $24.6 million or 48.0%, from December 31, 2003 * Gross loans totaled $53.0 million at December 31, 2004 compared to $33.3 million at December 31, 2003. * Deposits totaled $65.7 million at December 31, 2004 compared to $40.6 million at December 31, 2003. * The Company earned a net profit of $1.1 million for the year ended December 31, 2004 as compared to a net profit of $143 thousand for the year ended December 31, 2003. The substantial increase in the earnings for the year ended December 31, 2004 is attributable to the recognition of the net deferred tax benefit and to the results of operations of the Bank. Exclusive of the remaining tax benefit of $862 thousand related to the recognition of the deferred tax asset, the Company had net income of $228 thousand for the year ended December 31, 2004. (At September 30, 2004, in compliance with SFAS No. 109, Accounting for Income Taxes, the Bank eliminated the valuation allowance for the deferred tax asset, thereby recognizing $945 thousand in income tax benefits in income. In future periods the Company will recognize income tax expense based upon earnings in each period.) The Summary of Financial Information presented on the accompanying attachments provides more detail of the Company's performance for the year ended December 31, 2004 as compared to 2003. Persons wishing additional information should refer to the Company's Form 10K report to be filed with the Securities and Exchange Commission on or before March 15, 2005. 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 Consolidated Balance Sheets December 31, 2004 and 2003 December 31, Assets 2004 2003 (Unaudited) (Audited) Cash and due from banks $3,196,520 $2,374,141 Federal funds sold 14,202,382 8,583,257 Cash and cash equivalents 17,398,902 10,957,398 Investment securities available- for-sale, at fair value 4,978,100 7,087,190 Federal Reserve Bank stock, at cost 195,900 132,450 Atlantic Central Bankers Bank stock, at cost 37,000 37,000 Maryland Financial Bank stock, at cost 25,000 25,000 Loans, less allowance for credit losses of $1,153,874 (2004) and $604,100 (2003) 51,017,418 32,687,894 Loans held for sale 759,056 - Premises and equipment, at cost, less accumulated depreciation 184,832 90,625 Accrued interest receivable 233,946 172,811 Deferred tax asset 862,000 - Other assets 246,292 104,706 Total Assets $75,938,446 $51,295,074 Liabilities and Stockholders' Equity Liabilities: Deposits: Noninterest-bearing demand $20,691,315 $9,387,230 Interest-bearing 45,037,635 31,226,110 Total deposits 65,728,950 40,613,340 Securities sold under agreements to repurchase 3,086,450 4,693,879 Accrued interest payable on deposits 36,412 17,709 Other liabilities 312,534 219,076 Total Liabilities 69,164,346 45,544,004 Commitments and contingencies Stockholders' Equity Common stock, par value $.01, authorized 4,000,000 shares; issued and outstanding 822,250 shares; 8,223 8,223 Surplus 8,099,012 8,099,012 Accumulated deficit (1,305,796) (2,395,590) Accumulated other comprehensive (loss) income (27,339) 39,425 Total stockholders' equity 6,774,100 5,751,070 Total Liabilities and Stockholders' Equity $75,938,446 $51,295,074 CommerceFirst Bancorp, Inc. and Subsidiary Consolidated Statements of Income Years Ended December 31, 2004 and 2003 2004 2003 Interest income on: (Unaudited) (Audited) Loans, including fees $2,754,729 $2,252,608 U.S. Treasury securities 169,304 192,070 Other investments 10,242 8,700 Federal funds sold 66,103 35,177 Total interest income 3,000,378 2,488,555 Interest expense on: Deposits 568,954 497,640 Securities sold under agreements to repurchase 18,141 31,044 Short-term borrowings 790 1,689 Total interest expense 587,885 530,373 Net interest income 2,412,493 1,958,182 Provision for credit losses 590,000 270,000 Net interest income after provision for credit losses 1,822,493 1,688,182 Other income: Gains on sales of SBA loans 273,497 - Service charges 310,896 327,079 Total other income 584,393 327,079 Other expenses: Salaries and benefits 1,321,179 1,123,714 Legal and professional 64,754 78,760 Loan collection expenses 28,713 23,160 Rent and occupancy 223,892 197,488 Marketing and business development 44,112 28,064 Data processing 56,468 50,815 Insurance 33,820 29,218 Support services 131,906 96,896 Depreciation and amortization 79,793 100,983 Office supplies 38,289 24,593 Correspondent service charges 28,413 21,433 Other expenses 127,752 97,554 Total other expenses 2,179,091 1,872,677 Income before income tax 227,795 142,584 Federal and state income tax benefit 862,000 - Net income $1,089,795 $142,584 Basic income per share of common stock $1.33 $0.17 Diluted income per share of common stock $1.33 $0.17 Weighted average shares of common stock outstanding 822,250 822,250 DATASOURCE: CommerceFirst Bancorp, Inc. CONTACT: Richard J. Morgan, President and Chief Executive Officer of CommerceFirst Bancorp, Inc., +1-410-280-6695 Web site: http://www.commerce1st.com/

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