2014

Chino Commercial Bancorp Reports 39% Increase In Third Quarter Earnings

CHINO, Calif., Oct. 21, 2013 /PRNewswire/ -- The Board of Directors of Chino Commercial Bancorp ("CCBC"), the parent company of Chino Commercial Bank, N.A., announced the results of operations for the Bank and the consolidated holding company for the third quarter ended September 30, 2013 with net earnings of $214,950, or an increase of 39.7%, as compared with net income of $153,816 for the same quarter last year. Net income per basic and diluted share for the third quarter 2013 was $0.26 as compared to $0.19 for the same quarter last year. The Company's profit for the nine months ended September 30, 2013 increased 33.8% to $644,758 or $0.77 per basic and diluted share as compared with net earnings of $481,970 or $0.60 per basic and diluted share for the same period in 2012.

Dann H. Bowman, President and Chief Executive Officer, stated, "We are very pleased with the performance of the Bank during the third quarter.  Economic conditions appear to be rapidly improving in the Inland Empire, and many of our small business customers are reporting better than expected operating results.  At the end of the third quarter the Company reported no delinquent loans, no foreclosures and has experienced no credit losses so far this year.

In addition to the excellent financial performance of the Bank during the third quarter, Management recently announced the termination of the Formal Agreement with their primary regulator the Office of the Comptroller of the Currency.  We are very pleased with the action taken by the OCC and we are gratified that our primary regulator has recognized the significant progress we have made in addressing the requirements of the Formal Agreement.

At this time the Bank is well positioned to take advantage of market opportunities and expand its lending to the businesses and consumers in our community."

Financial Condition 

At September 30, 2013, total assets were $114.9 million, which was an increase of $220,796 or 0.2% from $114.6 million at December 31, 2012. Deposits decreased slightly by 0.6% to $101.6 million at September 30, 2013 from $102.2 million at December 31, 2012. At September 30, 2013, the Company's core deposits represent 90.3% of the total deposits.

Loans net of unearned fees increased 1.4% in the nine months ended September 30, 2013 to $62.6 million from $61.8 million at December 31, 2012. The Company's asset quality improved in the nine months ended September 30, 2013, as the level of nonperforming assets to total loans and OREO decreased from 1.96% at December 31, 2012 to 0.69% at September 30, 2013.

Earnings

The Company posted net interest income of $944,563 and $923,873 for the three months ended September 30, 2013 and 2012, respectively, or an increase of $20,690 or 2.2%. For the nine months ended September 30, 2013 the Company posted net interest income of $3.0 million compared to $2.7 million for the same period in 2012, or an increase of $310,963 or 11.5%. Two loans on non-accrual status paid off in June 2013, resulting in $134,500 of the reported increased income from loans.

Income from earning assets decreased slightly by $4,056 for the third quarter of 2013 compared to the same period last year, and increased $247,255 for the nine months ended September 30, 2013 compared to same period in 2012. The interest earned in addition to the paid-off loan was due to increased average balances in interest-earning assets. Average interest-earning assets for the quarter ended September 30, 2013 were $104.8 million with average interest-bearing liabilities of $52.6 million, yielding a net interest margin of 3.58% for the third quarter of 2013; as compared to the average interest-earning assets of $98.3 million with average interest-bearing liabilities of $54.7 million, yielding a net interest margin of 3.74% for the same period in 2012. Average interest-earning assets for the nine months ended September 30, 2013 were $104.8 million with average interest-bearing liabilities of $55.0 million, yielding a net interest margin of 3.84%, compared to average interest-earning assets of $96.1 million with average interest-bearing liabilities of $53.7 million, yielding a net interest margin of 3.75% for the same period in 2012.

Non-interest income totaled $421,492 for the third quarter of 2013, or an increase of 34.1% from $314,333 earned during the third quarter of 2012. For the nine months ended September 30, 2013, non-interest income totaled $1,106,241 or a 0.5% increase from $1,101,108 earned during the same period in 2012. In the nine months ended September 30, 2012, the Company experienced a gain on sale of foreclosed assets of $93,871 while in the same period of 2013 the Company had no OREO and therefore no gain on sale.

General and administrative expenses were $1,025,979 for the three months ended September 30, 2013, as compared to $995,743 for the third quarter of 2012; and were $3,083,514 and $3,036,344 for the nine months ended September 30, 2013 and 2012, respectively. The largest component of general and administrative expenses was salary and benefits expense of $552,905 and $1,681,065 for the three and nine months ended September 30, 2013, respectively; as compared to $513,382 and $1,633,223 for the three and nine months ended September 30, 2012, respectively.

Income tax expense was $124,879 for the third quarter of 2013 as compared to $88,571 for the same period in 2012, resulting in effective income tax rates of approximately 36.7% and 36.5%, respectively. Income tax expense for the nine months ended September 30, 2013 and 2012 were $385,279 and $278,744, respectively. The income tax rates were 37.4% and 36.6% for the nine months ended September 30, 2013 and 2012, respectively.

Forward-Looking Statements

The statements contained in this press release that are not historical facts are forward-looking statements based on management's current expectations and beliefs concerning future developments and their potential effects on the Company. Readers are cautioned not to unduly rely on forward-looking statements. Actual results may differ from those projected. These forward-looking statements involve risks and uncertainties including but not limited to the health of the national and California economies, the Company's ability to attract and retain skilled employees, customers' service expectations, the Company's ability to successfully deploy new technology and gain efficiencies there from, changes in interest rates, loan portfolio performance, and other factors.

 

CHINO COMMERCIAL BANCORP

CONSOLIDATED BALANCE SHEET

September 30, 2013 and December 31, 2012



September 30, 2013


December 31, 2012


(unaudited)


(audited)

ASSETS:




Cash and due from banks

$       4,256,322


$       2,946,454

Federal funds sold

15,857,496


17,041,826

Total cash and cash equivalents

20,113,818


19,988,280





Interest-bearing deposits in other banks

16,270,000


17,417,000

Investment securities available for sale

1,954,601


2,349,320

Investment securities held to maturity (fair value approximates




  $4,438,000 at September 30, 2013 and $4,796,000 at December 31, 2012)

4,318,745


4,606,626

Total investments

22,543,346


24,372,946

Loans




  Real estate

48,283,748


49,121,409

  Commercial

14,178,126


12,516,101

  Installment

326,799


321,502

Gross loans

62,788,673


61,959,012

  Unearned fees and discounts

(155,010)


(169,090)

Loans net of unearned fees and discount

62,633,663


61,789,922

  Allowance for loan losses

(1,465,377)


(1,438,797)

 Net loans

61,168,286


60,351,125





Accrued interest receivable

232,660


286,812

Restricted stock

605,400


623,200

Fixed assets, net

6,129,106


6,258,728

Prepaid & other assets

4,063,091


2,753,820

Total assets

$   114,855,707


$   114,634,911





LIABILITIES:




Deposits




  Non-interest bearing 

$     49,410,807


$     48,822,963

  Interest bearing




NOW and money market

35,317,846


36,340,045

Savings

2,711,779


1,989,336

Time deposits less than $100,000

4,684,878


4,565,281

Time deposits of $100,000 or greater

9,460,521


10,433,009

Total deposits

101,585,831


102,150,634





Accrued interest payable

28,463


35,674

Accrued expenses & other payables

770,797


633,705

Subordinated notes payable to subsidiary trust

3,093,000


3,093,000

Total liabilities

105,478,091


105,913,013

SHAREHOLDERS' EQUITY




Common stock, authorized 10,000,000 shares with no par value, issued
and outstanding 833,280 shares and 829,602 shares at September 30,
2013 and December 31, 2012, respectively.




3,463,912


3,429,254

Retained earnings

5,866,133


5,221,375

Accumulated other comprehensive income

47,571


71,269

Total shareholders' equity

9,377,616


8,721,898

Total liabilities & shareholders' equity

$   114,855,707


$   114,634,911





 

CHINO COMMERCIAL BANCORP

CONSOLIDATED STATEMENTS OF NET INCOME

(unaudited)










For the three months ended


For the nine months ended


June 30


June 30


2013


2012


2013


2012

Interest income








  Investment securities and due from banks

$        63,752


$        82,697


$      200,499


$      277,759

  Interest on Federal funds sold

12,852


10,280


38,876


30,102

  Interest and fee income on loans 

943,581


931,264


3,007,316


2,691,575

Total interest income

1,020,185


1,024,241


3,246,691


2,999,436

Interest expense








  Deposits

60,671


83,041


193,052


248,643

  Other borrowings

14,951


17,327


44,678


52,795

Total interest expense

75,622


100,368


237,730


301,438

Net interest income

944,563


923,873


3,008,961


2,697,998

Provision for loan losses

247


76


1,651


2,048

Net interest income after








provision for loan losses

944,316


923,797


3,007,310


2,695,950

Non-interest income








  Service charges on deposit accounts

355,816


286,132


961,171


876,973

  Gain on sale of foreclosed assets

0


0


0


93,871

  Other miscellaneous income

31,945


8,415


55,984


66,164

  Dividend income from restricted stock

7,594


2,996


26,313


12,959

  Income from bank-owned life insurance

26,137


16,790


62,773


51,141

Total non-interest income

421,492


314,333


1,106,241


1,101,108

Non-interest expenses








  Salaries and employee benefits

552,905


513,382


1,681,065


1,633,223

  Occupancy and equipment

106,451


111,905


308,482


318,971

  Data and item processing

102,574


92,848


299,365


265,691

  Advertising and marketing

16,444


13,919


49,061


38,824

  Legal and professional fees

55,008


76,224


171,173


212,983

  Regulatory assessments

61,141


54,872


178,626


166,195

  Insurance

11,059


12,062


35,641


36,497

  Directors' fees and expenses

28,781


27,167


84,322


80,207

  Other expenses

91,616


93,364


275,779


283,753

Total non-interest expenses

1,025,979


995,743


3,083,514


3,036,344

Income before income tax expense

339,829


242,387


1,030,037


760,714

Income tax expense

124,879


88,571


385,279


278,744

Net income

$      214,950


$      153,816


$      644,758


$      481,970

Basic earnings per share  

$            0.26


$            0.19


$            0.77


$            0.60

Diluted earnings per share 

$            0.26


$            0.19


$            0.77


$            0.59

 

CHINO COMMERCIAL BANCORP







For the three months ended


For the nine months ended


September 30


September 30


2013


2012


2013


2012

KEY FINANCIAL RATIOS








(unaudited)








Annualized return on average equity

9.29%


7.21%


9.51%


7.82%

Annualized return on average assets

0.73%


0.56%


0.73%


0.59%

Net interest margin

3.58%


3.74%


3.84%


3.75%

Core efficiency ratio

75.11%


80.42%


74.93%


81.95%

Net chargeoffs to average loans

0.00%


0.05%


-0.04%


0.18%









AVERAGE BALANCES








(thousands, unaudited)








Average assets

$    117,671


$    110,727


$    117,535


$    108,751

Average interest-earning assets

$    104,571


$      98,316


$    104,836


$      96,061

Average gross loans

$      62,791


$      58,075


$      62,372


$      56,266

Average deposits

$      99,599


$      98,234


$    101,462


$      96,449

Average equity

$        9,252


$        8,536


$        9,042


$        8,218

 

CREDIT QUALITY

End of period

(unaudited)

September 30, 2013


December 31, 2012

Non-performing loans

$                  430,986


$               1,216,253

Non-performing loans to total loans

0.69%


1.96%

Non-performing loans to total assets

0.38%


1.06%

Allowance for loan losses to total loans

2.33%


2.32%

Nonperforming assets as a percentage of total loans and OREO

0.69%


1.96%

Allowance for loan losses to non-performing loans

340.01%


118.30%





OTHER PERIOD-END STATISTICS




(unaudited)

September 30, 2013


December 31, 2012

Shareholders equity to total assets

8.16%


7.61%

Net Loans to deposits

60.21%


59.08%

Non-interest bearing deposits to total deposits

48.64%


47.80%

Total capital to total risk-weighted assets

17.35%


17.50%

Tier 1 capital to total risk-weighted assets

16.11%


15.95%

Tier 1 leverage ratio

10.57%


9.86%

 

SOURCE Chino Commercial Bancorp



RELATED LINKS
http://www.chinocommercialbank.com

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