2014

Chino Commercial Bancorp Reports 108.7% Increase In Second Quarter Earnings

CHINO, Calif., July 22, 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 second quarter ended June 30, 2013 with net earnings of $259,167, or an increase of 108.7%, as compared with net income of $124,196 for the same quarter last year. Net income per basic and diluted share for the second quarter in 2013 was $0.31 as compared to $0.15 for the same quarter last year. The Company's profit for the six months ended June 30, 2013 increased 31.0% to $429,807 or $0.52 per basic and diluted share as compared with net earnings of $328,154 or $0.41 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 second 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 second quarter the Company reported only one delinquent loan and suffered no credit losses so far this year. We continue to remain optimistic about the economy, and are eager to continue lending to the businesses and consumers in our community."

Financial Condition

At June 30, 2013, total assets were $117.2 million, which was an increase of $2.5 million or 2.2% from $114.6 million at December 31, 2012. This is a direct result of the growth of the Company's deposits which increased by 2.0% to $104.1 million at June 30, 2013 from $102.2 million at December 31, 2012. At June 30, 2013, the Company's core deposits represent 90.3% of the total deposits.

Loans net of unearned fees remained relatively the same during the first half year. Loans net of unearned fees were $61.8 million at December 31, 2012 and June 30, 2013. The Company's asset quality improved in the first half year, as the level of nonperforming assets to total loans and OREO decreased from 1.96% at December 31, 2012 to 0.74% at June 30, 2013.

Earnings

The Company posted net interest income of $1,074,032 and $878,636 for the three months ended June 30, 2013 and 2012, respectively, or an increase of $ 195,396 or 22.2%. For the six months ended June 30, the Company posted net interest income of $2.1 million compared to $1.8 million for the first six months 2012 or an increase of $290,269 or 16.4%. Two loans on non-accrual status paid off in June resulting in $134,500 of the reported increased income from loans.

Income from earning assets increased $177,586 for the second quarter of 2013 compared to the same period last year, and $251,307 for the first half of 2013 compared to 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 June 30, 2013 were $106 million with average interest-bearing liabilities of $54.5 million, yielding a net interest margin of 4.07% for the second quarter of 2012; as compared to the average interest-earning assets of $96.0 million with average interest-bearing liabilities of $52.8 million, yielding a net interest margin of 3.68% for the same period in 2012. Average interest-earning assets for the first half of 2013 were $105.0 million with average interest-bearing liabilities of $56.2 million, yielding a net interest margin of 3.97% compared to the average interest-earning assets of $94.9 million with average interest-bearing liabilities of $53.2 million, yielding a net interest margin of 3.76% for the first half of 2012.

Non-interest income totaled $372,966 for the second quarter of 2013, or an increase of 19.9% from $310,957 earned during the second quarter of 2012. For the first half of 2013, non-interest income totaled $684,749 a 13.0% decrease from $786,775 earned during the same period in 2012. In the first half of 2012 the Company experienced a gain on sale of foreclosed assets of $93,871 while in the first half of 2013 the Company had no OREO and therefore no gain on sale.

General and administrative expenses were $1,029,523 for the three months ended June 30, 2013, as compared to $994,626 for the second quarter of 2012 and was $2,057,533 and $2,040,602 for the six months ended June 30, 2013 and 2012, respectively. The largest component of general and administrative expenses was salary and benefits expense of $557,138 and $1,128,161 for the second quarter and first half of 2012, respectively; as compared to $546,560 and $1,119,842 for the three and six months ended June 30, 2012, respectively.

Income tax expense was $159,536 for the second quarter of 2013 as compared to $68,799 for the same period in 2012 resulting in effective income tax rates of approximately 38.1% and 35.6%, respectively. Income tax expense for the first half of 2013 and 2012 were $260,400 and $190,173, respectively. The income tax rates were 37.7% and 36.7% for the first half of 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

June 30, 2013 and December 31, 2012



June 30, 2013


December 31, 2012


(unaudited)


(audited)

ASSETS:




Cash and due from banks

$       3,737,545


$       2,946,454

Federal funds sold

20,408,758


17,041,826

Total cash and cash equivalents

24,146,303


19,988,280





Interest-bearing deposits in other banks

16,185,000


17,417,000

Investment securities available for sale

2,104,657


2,349,320

Investment securities held to maturity (fair value approximates




$3,762,000 at June 30, 2013 and $4,796,000 at December 31, 2012)

3,660,177


4,606,626

Total investments

21,949,834


24,372,946

Loans




Real estate

47,795,639


49,121,409

Commercial

13,854,622


12,516,101

Installment

338,578


321,502

Gross loans

61,988,839


61,959,012

Unearned fees and discounts

(158,557)


(169,090)

Loans net of unearned fees and discount

61,830,282


61,789,922

Allowance for loan losses

(1,462,055)


(1,438,797)

 Net loans

60,368,227


60,351,125





Accrued interest receivable

270,976


286,812

Restricted stock

605,400


623,200

Fixed assets, net

6,170,933


6,258,728

Prepaid & other assets

3,639,156


2,753,820

Total assets

$   117,150,829


$   114,634,911





LIABILITIES:




Deposits




Non-interest bearing 

$     49,066,379


$     48,822,963

Interest bearing




NOW and money market

37,609,805


36,340,045

Savings

2,754,949


1,989,336

Time deposits less than $100,000

4,623,821


4,565,281

Time deposits of $100,000 or greater

10,088,080


10,433,009

Total deposits

104,143,034


102,150,634





Accrued interest payable

46,891


35,674

Accrued expenses & other payables

696,887


633,705

Subordinated notes payable to subsidiary trust

3,093,000


3,093,000

Total liabilities

107,979,812


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 June 30, 2013
and December 31, 2012, respectively.







3,463,912


3,429,254

Retained earnings

5,651,182


5,221,375

Accumulated other comprehensive income

55,923


71,269

Total shareholders' equity

9,171,017


8,721,898

Total liabilities & shareholders' equity

$   117,150,829


$   114,634,911






CHINO COMMERCIAL BANCORP

CONSOLIDATED STATEMENTS OF NET INCOME

(unaudited)










For the three months ended


For the six months ended


June 30


June 30


2013


2012


2013


2012

Interest income








Investment securities and due from banks

$        66,600


$        87,527


$      136,746


$      195,062

Interest on Federal funds sold

13,796


11,974


26,023


19,822

Interest and fee income on loans 

1,073,824


877,133


2,063,734


1,760,312

Total interest income

1,154,220


976,634


2,226,503


1,975,196

Interest expense








Deposits

65,371


80,733


132,381


165,602

Other borrowings

14,817


17,265


29,727


35,468

Total interest expense

80,188


97,998


162,108


201,070

Net interest income

1,074,032


878,636


2,064,395


1,774,126

Provision for loan losses

(1,228)


1,972


1,404


1,972

Net interest income after








provision for loan losses

1,075,260


876,664


2,062,991


1,772,154

Non-interest income








Service charges on deposit accounts

325,460


279,348


605,355


590,841

Gain on sale of foreclosed assets

0


0


0


93,871

Other miscellaneous income

13,303


7,815


24,039


57,749

Dividend income from restricted stock

13,880


6,535


18,719


9,963

Income from bank-owned life insurance

20,323


17,259


36,636


34,351

Total non-interest income

372,966


310,957


684,749


786,775

Non-interest expenses








Salaries and employee benefits

557,138


546,560


1,128,161


1,119,842

Occupancy and equipment

101,637


100,967


202,031


207,065

Data and item processing

97,976


83,831


196,791


172,844

Advertising and marketing

19,128


11,850


32,617


24,906

Legal and professional fees

59,656


67,650


116,165


136,759

Regulatory assessments

59,717


55,460


117,485


111,324

Insurance

12,335


11,968


24,582


24,435

Directors' fees and expenses

27,676


27,495


55,541


53,040

Other expenses

94,260


88,845


184,160


190,387

Total non-interest expenses

1,029,523


994,626


2,057,533


2,040,602

Income before income tax expense

418,703


192,995


690,207


518,327

Income tax expense

159,536


68,799


260,400


190,173

Net income

$      259,167


$      124,196


$      429,807


$      328,154

Basic earnings per share  

$            0.31


$            0.15


$            0.52


$            0.41

Diluted earnings per share 

$            0.31


$            0.15


$            0.52


$            0.41









 

 

CHINO COMMERCIAL BANCORP










For the three months ended


For the six months ended


June 30


June 30


2013


2012


2013


2012

KEY FINANCIAL RATIOS








(unaudited)








Annualized return on average equity

11.49%


6.03%


9.62%


8.23%

Annualized return on average assets

0.87%


0.46%


0.73%


0.61%

Net interest margin

4.07%


3.68%


3.97%


3.76%

Core efficiency ratio

71.15%


83.61%


74.84%


82.71%

Net chargeoffs to average loans

-0.01%


0.12%


-0.04%


0.13%









AVERAGE BALANCES








(thousands, unaudited)








Average assets

$    118,715


$    108,365


$    117,466


$    107,752

Average interest-earning assets

$    105,966


$      96,025


$    104,969


$      94,919

Average gross loans

$      62,872


$      54,603


$      62,159


$      55,351

Average deposits

$    101,295


$      95,935


$    102,410


$      95,546

Average equity

$        9,024


$        8,240


$        8,934


$        7,973









 









CREDIT QUALITY

End of period

(unaudited)

June 30, 2013


December 31, 2012

Non-performing loans

$                  456,633


$               1,216,253

Non-performing loans to total loans

0.74%


1.96%

Non-performing loans to total assets

0.39%


1.06%

Allowance for loan losses to total loans

2.36%


2.32%

Nonperforming assets as a percentage of total loans and OREO

1.70%


1.96%

Allowance for loan losses to non-performing loans

320.18%


118.30%





OTHER PERIOD-END STATISTICS




(unaudited)

June 30, 2013


December 31, 2012

Shareholders equity to total assets

7.83%


7.61%

Net Loans to deposits

57.97%


59.08%

Non-interest bearing deposits to total deposits

47.11%


47.80%

Total capital to total risk-weighted assets

19.22%


17.50%

Tier 1 capital to total risk-weighted assets

17.88%


15.95%

Tier 1 leverage ratio

10.48%


9.86%





 

SOURCE Chino Commercial Bancorp



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