Chino Commercial Bancorp Reports 2012 First Quarter Earnings

CHINO, Calif., April 23, 2012 /PRNewswire/ -- The Board of Directors of Chino Commercial Bancorp (OTCBB: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 first quarter ended March 31, 2012 with net earnings of $203,959, a 0.3% increase from net income of $203,305 for the first quarter of last year. Net income per basic share for the first quarter was $0.26 as compared to $0.27 for the first quarter last year.

Dann H. Bowman, President and Chief Executive Officer, stated, "We are very pleased with the performance of the Bank during the first quarter.  Economic conditions appear to be slowly improving, and many of our small business customers are reporting better than expected operating results.  At the end of the first quarter the Bank reported only one delinquent loan, and suffered no loan losses in the quarter.  

We continue to remain optimistic about the economy of the Inland Empire and the customers we serve.  We are motivated and eager to continue lending to the businesses and consumers in our community."

Financial Condition

At March 31, 2012, total assets were $111.4 million, an increase of $1.7 million or 1.5% from December 31, 2011. This is a direct result of the growth of the Bank's deposits.

Total deposits increased by 0.9% to $99.0 million at March 31, 2012, an increase from $98.1 million at December 31, 2011. At March 31, 2012, the Company's core deposits represent 88.7% of the total deposits.

Loans decreased $1.2 million or 2.0% during the first quarter from December 31, 2011 with a remaining balance of $55.4 million at March 31, 2012. The Bank's asset quality improved in the first quarter as the level of OREO declined from $439 thousand to -0- and the level of Nonperforming assets to total loans and OREO improved from 7.07% at December 31, 2011 to 4.44% at March 31, 2012.

On September 16, 2011, the Company filed a registration statement on Form S-1 with the SEC in connection with a secondary stock offering to existing shareholders which commenced in the fourth quarter of 2011 and was extended to the general public in early 2012. Pricing for the offering was set at $10.50 per share. Thus far the Company has generated $799,602.50 in additional paid in capital from the offering. The offering is currently scheduled to close on April 30, 2012.

Earnings

The Company posted net interest income of $895,490 for the quarter ended March 31, 2012 as compared to $1,019,371 for the quarter ended March 31, 2011, due to decreased average balances in interest-earning assets and declining interest rates. Average interest-earning assets were $93.8 million with average interest-bearing liabilities of $53.7 million, yielding a net interest margin of 3.84% for the first quarter of 2012; as compared to the average interest-earning assets of $98.8 million with average interest-bearing liabilities of $60.4 million, yielding a net interest margin of 4.19% for the first quarter of 2011.

Non-interest income totaled $475,818 for the first quarter of 2012, or an increase of 21.1% from $393,053 earned during the first quarter of 2011. Gain on sale of foreclosed assets increased to $93,871 in the first quarter of 2012, compared to a $61,151 gain recognized in the first quarter of 2011. Service charges on deposit accounts increased 2.2% to $311,493 due to increased return item and overdraft charges. Other miscellaneous income increased to $49,934 for the first quarter of 2012, compared to $7,250 in the same quarter in 2011 due to reimbursement of legal expenses incurred in 2011.

General and administrative expenses were $1,045,975 for the three months ended March 31, 2012, as compared to $1,081,129 for the first quarter of 2011. The largest component of general and administrative expenses was salary and benefits expense of $573,281 for the first quarter of 2012, as compared to $587,399 for the three months ended March 31, 2011. Regulatory assessments decreased in the first quarter of 2012 to $55,864, compared to $75,447 in the first quarter of 2011. Directors' fees and expenses increased $9,944 due to an increase of one director and an increase in directors' fees in the first quarter of 2012. Other expenses increased by $7,223 for the comparable three-month period due mainly to expenses of other real estate incurred prior to the sale.

Income tax expense was $121,374 for the three months ended March 31, 2012 as compared to $122,468 for the three months ended March 31, 2011. The effective income tax rate for the first quarter of 2012 and 2011 is approximately 37.3% and 37.6%, respectively.

Forward-Looking Statements

The statements contained in this 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.  The forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and readers are cautioned not to unduly rely on such forward-looking statements. Actual results and performance in future periods may be materially different from any future results or performance suggested by the forward-looking statements in this release. Factors that might cause such differences include, but are not limited to, the health of the National and California economies, the Company's ability to attract and retain skilled employees, competition in the financial services market for both deposits and loans, the Company's ability to increase its customer base, customers' service expectations, the Company's ability to successfully de­ploy new technology and gain efficiencies therefrom, the success of branch expansion, changes in interest rates, loan portfolio performance, the Company's ability to enhance its earnings capacity, and other factors detailed in the Company's SEC filings, including the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recent Form 10-K.

CHINO COMMERCIAL BANCORP

CONSOLIDATED BALANCE SHEET

March 31, 2012 and December 31, 2011



March 31, 2012


December 31, 2011


(unaudited)


(audited)

ASSETS:




Cash and due from banks

$     4,721,765


$       3,358,177

Federal funds sold

17,699,876


14,165,877

Total cash and cash equivalents

22,421,641


17,524,054





Interest-bearing deposits in other banks

13,091,252


13,339,252

Investment securities available for sale

2,693,033


2,972,420

Investment securities held to maturity (fair value approximates




$9,205,000 at March 31, 2012 and $9,861,000 at December 31, 2011)

9,000,590


9,652,630

Total investments

24,784,875


25,964,302

Loans




Real estate

45,686,695


46,184,898

Commercial

9,587,635


9,974,353

Installment

372,459


643,660

Gross loans

55,646,789


56,802,911

Unearned fees and discounts

(155,566)


(29,107)

Loans net of unearned fees and discount

55,491,223


56,773,804

Allowance for loan losses

(1,535,243)


(1,537,963)

 Net loans

53,955,980


55,235,841





Accrued interest receivable

265,631


275,976

Restricted stock

667,700


667,700

Fixed assets, net

6,407,441


6,443,753

Foreclosed assets

0


439,317

Prepaid & other assets

2,888,910


3,154,650

Total assets

$ 111,392,178


$   109,705,593





LIABILITIES:




Deposits




Non-interest bearing 

$   49,288,661


$     47,188,644

Interest bearing




NOW and money market

31,423,967


32,241,986

Savings

2,254,938


1,809,536

Time deposits less than $100,000

4,900,481


4,700,126

Time deposits of $100,000 or greater

11,146,318


12,163,266

Total deposits

99,014,365


98,103,558





Accrued interest payable

161,160


139,646

Accrued expenses & other payables

770,186


897,363

Subordinated notes payable to subsidiary trust

3,093,000


3,093,000

Total liabilities

103,038,711


102,233,567

SHAREHOLDERS' EQUITY




Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 829,402 shares and 749,540 shares at March 31, 2012 and December 31, 2011, respectively.







3,441,723


2,760,812

Retained earnings

4,835,568


4,631,610

Accumulated other comprehensive income

76,176


79,604

Total shareholders' equity

8,353,467


7,472,026

Total liabilities & shareholders' equity

$ 111,392,178


$   109,705,593

 

CHINO COMMERCIAL BANCORP

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)






For the three months ended


March 31


2012


2011

Interest income




Investment securities and due from banks

$ 107,535


$ 169,848

Interest on Federal funds sold

7,848


2,605

Interest and fee income on loans 

883,179


1,012,779

Total interest income

998,562


1,185,232

Interest expense




Deposits

84,869


114,898

Other interest expense

0


0

Other borrowings

18,203


50,963

Total interest expense

103,072


165,861

Net interest income

895,490


1,019,371

Provision for loan losses

0


5,522

Net interest income after




provision for loan losses

895,490


1,013,849

Non-interest income




Service charges on deposit accounts

311,493


304,657

Gain on sale of foreclosed assets

93,871


61,151

Other miscellaneous income

49,934


7,250

Dividend income from restricted stock

3,428


2,770

Income from bank-owned life insurance

17,092


17,225

Total non-interest income

475,818


393,053

General and administrative expenses




Salaries and employee benefits

573,281


587,399

Occupancy and equipment

106,099


114,581

Data and item processing

89,013


96,972

Advertising and marketing

13,056


16,153

Legal and professional fees

69,109


70,233

Regulatory assessments

55,864


75,447

Insurance

12,467


10,425

Directors' fees and expenses

25,545


15,601

Other expenses

101,541


94,318

Total general & administrative expenses

1,045,975


1,081,129

Income before income tax expense

325,333


325,773

Income tax expense

121,374


122,468

Net income

$ 203,959


$ 203,305

Basic earnings per share  

$       0.26


$       0.27

Diluted earnings per share 

$       0.26


$       0.27

 

CHINO COMMERCIAL BANCORP






For the three months ended


March 31


2012


2011

KEY FINANCIAL RATIOS




(unaudited)




Annualized return on average equity

10.57%


11.48%

Annualized return on average assets

0.76%


0.72%

Net interest margin

3.84%


4.19%

Core efficiency ratio

81.88%


80.01%

Net chargeoffs to average loans

0.00%


0.00%





AVERAGE BALANCES




(thousands, unaudited)




Average assets

$ 107,139


$ 113,206

Average interest-earning assets

$   93,814


$   98,751

Average gross loans

$   56,099


$   60,277

Average deposits

$   95,157


$ 102,136

Average equity

$     7,718


$     7,086









CREDIT QUALITY

End of period

(unaudited)

March 31, 2012


December 31, 2011

Non-performing loans

$       2,471,101


$             3,605,142

Non-performing loans to total loans

4.44%


6.35%

Non-performing loans to total assets

2.22%


3.29%

Allowance for loan losses to total loans

2.76%


2.71%

Nonperforming assets as a percentage of total loans and OREO

4.44%


7.07%

Allowance for loan losses to non-performing loans

62.13%


42.66%





OTHER PERIOD-END STATISTICS




(unaudited)

March 31, 2012


December 31, 2011

Shareholders equity to total assets

7.50%


6.81%

Net Loans to deposits

54.49%


56.30%

Non-interest bearing deposits to total deposits

49.78%


48.10%

SOURCE Chino Commercial Bancorp



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