Coronado First Bank Boosts Reserves

http://www.businesswire.com/news/home/20091029005111/en

CORONADO, Calif.--(Business Wire)--
Bruce Ives, President and CEO of Coronado First Bank (the "Bank") (OTCBB:CDFB)
announced today that after carefully considering the current and future economic
environment, the Bank`s Board and Management have determined that it is prudent
to increase its provision for loan loss reserves by $846,000 for the third
quarter ended September 30, 2009. Ives said that the Bank remains well
capitalized in all categories as defined by regulatory guidance. The Management
team continues to stress test the Bank`s loan portfolio on a regular basis to
ensure that there is sufficient protection against further real estate value
deterioration. Bill Huck, Chairman of the Board said, "Our Board of Directors
has been clear that we will build adequate reserves that enable the Bank to meet
all commitments to our shareholders, customers, employees and community."

Mr. Ives announced unaudited financial results for the third quarter 2009. The
Bank had a quarterly loss of $907,000 or ($0.65) per share. It should be noted
that the Bank generated a quarterly operating profit of $57,000 (Operating
profits are defined as profits prior to additions to loan loss provision and
extraordinary items). The loss included $846,000 in additions to Loan Loss
Provisions and extraordinary items of $118,000 relating primarily to FDIC
assessments. Noting that total revenue increased by 29% for the nine months
ended September 30, 2009 compared to 2008, Ives added, "Coronado First Bank is
committed to long term success, and our proactive approach will enhance our
ability to achieve stronger shareholder returns in the future." The Bank posted
a nine month loss of $1,018,000 or ($0.73) per share, which includes $1,052,000
in Loan Loss Provisions.

Total assets grew to $97 million and total deposits grew to $87 million,
increases of 46% and 64%, respectively over September 30, 2008. Total loans grew
by 61% to $82 million over the same time period. Much of this growth was
attributable to the San Diego Office which opened July 1st. It is important to
note that 90% of the deposits at the San Diego Office are core checking and
savings deposits, which was established as a priority for that office.

Ives concluded, "As always, we appreciate our shareholders support as we
continue to direct the Bank with long term shareholder value as our primary
objective."

Coronado First Bank is publicly traded on the Over-the-Counter Bulletin Board, ticker symbol: "CDFB". For more information on the Bank please contact:

Bruce Ives at 619-437-1000

www.coronadofirst.com

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.

CORONADO FIRST BANK
CONDENSED BALANCE SHEETS
(In thousands)

September 30, September 30,
2009 2008
ASSETS Unaudited Unaudited
Cash and due from banks $ 1,132 $ 1,612
Federal funds sold - 1,525
Interest-bearing deposits in FRB and other banks 11,569 1,881
Investment securities 461 9,191
Loans, net 82,172 51,014
Premises and equipment, net 1,091 873
Accrued interest receivable and other assets 529 463
Total assets $ 96,954 $ 66,559

LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing demand $ 10,726 $ 7,942
Money market 17,418 9,244
Savings and NOW 2,808 1,743
Time 55,618 33,753
Total deposits 86,570 52,682
Other borrowed money - 2,500
Accrued interest payable and other liabilities 271 255
Total liabilities 86,841 55,437
Common stock - no par value, 1,392,477 shares outstanding at September 30, 2009 and 2008, respectively 14,415 14,248
Retained earnings (4,302 ) (3,100 )
Unrealized losses on AFS securities, net - (26 )
Total stockholders' equity 10,113 11,122
Total liabilities and stockholders' equity $ 96,954 $ 66,559

CONDENSED STATEMENTS OF OPERATION
(In thousands, except per share amounts)

Nine Months Nine Months Three Months Three Months
Ended Ended Ended Ended
September 30, 2009 September 30, 2008 September 30, 2009 June 30, 2009
Unaudited Unaudited Unaudited Unaudited
Total interest income $ 3,874 $ 2,982 $ 1,379 $ 1,327
Total interest expense 1,197 1,064 427 406
Net interest income 2,677 1,918 952 921
Provision for loan losses 1,052 141 846 48
Net interest income after provision for loan losses 1,625 1,777 106 873

Noninterest income 49 67 23 14
Noninterest expense 2,691 2,194 1,036 848
Income before income taxes (1,017 ) (350 ) (907 ) 39
Income taxes 1 1 - 1
Net loss $ (1,018 ) $ (351 ) $ (907 ) $ 38

Basic and diluted loss per share $ (0.73 ) $ (0.25 ) $ (0.65 ) $ 0.03

Average basic and diluted shares outstanding 1,392 1,392 1,392 1,392

Coronado First Bank
Bruce Ives, 619-437-1000
www.coronadofirst.com

Copyright Business Wire 2009