2014

Chino Commercial Bancorp Reports 2013 First Quarter Earnings

CHINO, Calif., April 22, 2013 /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, 2013 with net earnings of $170,640, or an increase of 58% over the previous quarter's earnings of $107,796, and a 19.2% reduction as compared with net income of $203,959 for the same quarter last year. Net income per basic share for the first quarter in 2013 was $0.21 as compared to $0.13 for the previous quarter ended December 31, 2012, and $0.26 for the same 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.  The Bank was recently recognized by the Findley Reports on Financial Institutions by receiving their highest rating of Super Premier Performing Bank.

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 first quarter the Company reported only two delinquent loans, and suffered no loan losses during the quarter.  

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 March 31, 2013, total assets were $121.0 million, an increase of $6.4 million or 5.6% from $114.6 million at December 31, 2012. This is a direct result of the growth of the Company's deposits which increased by 6.0% to $108.3 million at March 31, 2013, an increase from $102.2 million at December 31, 2012. At March 31, 2013, the Company's core deposits represent 90.1% of the total deposits.

Loans declined slightly by $0.5 million or 0.9% during the first quarter from December 31, 2012 with a remaining balance of $61.3 million at March 31, 2013 while the Company's asset quality improved in the first quarter as the level of nonperforming assets to total loans and OREO decreased from 1.96% at December 31, 2012 to 1.71% at March 31, 2013.

Earnings
The Company posted net interest income of $990,365 for the quarter ended March 31, 2013 as compared to $895,490 for the quarter ended March 31, 2012, due to increased average balances in interest-earning assets. Average interest-earning assets were $104.0 million with average interest-bearing liabilities of $57.9 million, yielding a net interest margin of 3.82% for the first quarter of 2012; as compared to the average interest-earning assets of $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.

Non-interest income totaled $311,783 for the first quarter of 2013, or a decrease of 34.5% from $475,818 earned during the first quarter of 2012. In the first quarter of 2012 the Company experienced a gain on sale of foreclosed assets of $93,871 while in the first quarter of 2013 the Company had no OREO and therefore no gain on sale. Service charges on deposit accounts decreased 10.1% to $279,895 due to decreased income from returned items and overdraft charges. Other miscellaneous income decreased to $10,736 for the first quarter of 2013, compared to $49,934 in the same quarter in 2012 due to legal expense reimbursement received in the first quarter of 2012 that was not repeated in 2013.

General and administrative expenses were $1,028,012 for the three months ended March 31, 2013, as compared to $1,045,975 for the first quarter of 2012. The largest component of general and administrative expenses was salary and benefits expense of $571,023 for the first quarter of 2012, as compared to $573,281 for the three months ended March 31, 2012. Legal and professional fees decreased $12,600 or 18.2% to $56,509 in the first quarter of 2013 compared to $69,109 in the first quarter of 2012 due to professional service agreements that were not renewed in 2013. Other expenses decreased by $11,639 for the comparable three-month period due mainly to expenses of other real estate incurred prior to the sale in 2012 that was not repeated in 2013.

Income tax expense was $100,864 for the three months ended March 31, 2013 as compared to $121,374 for the three months ended March 31, 2012. The effective income tax rate for the first quarter of 2013 and 2012 is approximately 37.2% and 37.3%, 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 detailed in the Company's SEC filings.

 

CHINO COMMERCIAL BANCORP

CONSOLIDATED BALANCE SHEET

March 31, 2013 and December 31, 2012



March 31, 2013


December 31, 2012


(unaudited)


(audited)

ASSETS:




Cash and due from banks

$       3,913,831


$       2,946,454

Federal funds sold

24,837,973


17,041,826

Total cash and cash equivalents

28,751,804


19,988,280





Interest-bearing deposits in other banks

16,425,000


17,417,000

Investment securities available for sale

2,192,102


2,349,320

Investment securities held to maturity (fair value approximates




$4,268,000 at March 31, 2013 and $4,796,000 at December 31, 2012)

4,102,380


4,606,626

Total investments

22,719,482


24,372,946

Loans




Real estate

47,121,260


49,121,409

Commercial

13,969,006


12,516,101

Installment

337,799


321,502

Gross loans

61,428,065


61,959,012

Unearned fees and discounts

(164,208)


(169,090)

Loans net of unearned fees and discount

61,263,857


61,789,922

Allowance for loan losses

(1,458,948)


(1,438,797)

 Net loans

59,804,909


60,351,125





Accrued interest receivable

284,810


286,812

Restricted stock

623,200


623,200

Fixed assets, net

6,220,815


6,258,728

Prepaid & other assets

2,606,620


2,753,820

Total assets

$   121,011,640


$   114,634,911





LIABILITIES:




Deposits




Non-interest bearing 

$     50,707,347


$     48,822,963

Interest bearing




NOW and money market

39,707,160


36,340,045

Savings

2,797,450


1,989,336

Time deposits less than $100,000

4,400,589


4,565,281

Time deposits of $100,000 or greater

10,694,120


10,433,009

Total deposits

108,306,666


102,150,634





Accrued interest payable

44,606


35,674

Accrued expenses & other payables

642,408


633,705

Subordinated notes payable to subsidiary trust

3,093,000


3,093,000

Total liabilities

112,086,680


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 March 31, 2013 and December 31, 2012, respectively.







3,463,912


3,429,254

Retained earnings

5,392,016


5,221,375

Accumulated other comprehensive income

69,032


71,269

Total shareholders' equity

8,924,960


8,721,898

Total liabilities & shareholders' equity

$   121,011,640


$   114,634,911









 

CHINO COMMERCIAL BANCORP

CONSOLIDATED STATEMENTS OF NET INCOME

(unaudited)






For the three months ended


March 31


2013


2012

Interest income




Investment securities and due from banks

$        70,147


$      107,535

Interest on Federal funds sold

12,228


7,848

Interest and fee income on loans 

989,910


883,179

Total interest income

1,072,285


998,562

Interest expense




Deposits

67,010


84,869

Other borrowings

14,910


18,203

Total interest expense

81,920


103,072

Net interest income

990,365


895,490

Provision for loan losses

2,632


0

Net interest income after




provision for loan losses

987,733


895,490

Non-interest income




Service charges on deposit accounts

279,895


311,493

Gain on sale of foreclosed assets

0


93,871

Other miscellaneous income

10,736


49,934

Dividend income from restricted stock

4,839


3,428

Income from bank-owned life insurance

16,313


17,092

Total non-interest income

311,783


475,818

Non-interest expenses




Salaries and employee benefits

571,023


573,281

Occupancy and equipment

100,394


106,099

Data and item processing

98,815


89,013

Advertising and marketing

13,489


13,056

Legal and professional fees

56,509


69,109

Regulatory assessments

57,768


55,864

Insurance

12,247


12,467

Directors' fees and expenses

27,865


25,545

Other expenses

89,902


101,541

Total non-interest expenses

1,028,012


1,045,975

Income before income tax expense

271,504


325,333

Income tax expense

100,864


121,374

Net income

$      170,640


$      203,959

Basic earnings per share  

$            0.21


$            0.26

Diluted earnings per share 

$            0.21


$            0.26





 

CHINO COMMERCIAL BANCORP







For the three months ended


March 31


2013


2012

KEY FINANCIAL RATIOS




(unaudited)




Annualized return on average equity

7.72%


10.57%

Annualized return on average assets

0.59%


0.76%

Net interest margin

3.82%


3.84%

Core efficiency ratio

78.95%


81.88%

Net chargeoffs to average loans

-0.03%


0.00%





AVERAGE BALANCES




(thousands, unaudited)




Average assets

$    116,203


$    107,139

Average interest-earning assets

$    103,961


$      93,814

Average gross loans

$      61,438


$      56,099

Average deposits

$    103,536


$      95,157

Average equity

$        8,844


$        7,718





 

CREDIT QUALITY

End of period

(unaudited)

March 31, 2013


December 31, 2012

Non-performing loans

$               1,053,415


$               1,216,253

Non-performing loans to total loans

1.71%


1.96%

Non-performing loans to total assets

0.87%


1.06%

Allowance for loan losses to total loans

2.38%


2.32%

Nonperforming assets as a percentage of total loans and OREO

1.71%


1.96%

Allowance for loan losses to non-performing loans

138.50%


118.30%





OTHER PERIOD-END STATISTICS




(unaudited)

March 31, 2013


December 31, 2012

Shareholders equity to total assets

7.38%


7.61%

Net Loans to deposits

55.22%


59.08%

Non-interest bearing deposits to total deposits

46.82%


47.80%





 

 

SOURCE Chino Commercial Bancorp



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