Chino Commercial Bancorp Reports 44% Increase in Profits

CHINO, Calif., Jan. 9, 2012 /PRNewswire/ -- The Board of Directors of Chino Commercial Bancorp (OTC Bulletin Board: CCBC), the parent company of Chino Commercial Bank NA, announced the results of operations for the Bank and the consolidated holding company for the three and twelve months ended December 31, 2011. For the full year ended December 31, 2011 the company posted a consolidated net income of $441,401, an increase of 44.6% over net income of $305,301 for the year end 2010. Net income for the quarter ended December 31, 2011 increased 201.0% to $167,928 from $55,781 for quarter ended December 31, 2010. Net income per basic share was $0.59 for the year ended December 31, 2011, a 40.5% increase over $0.42 per share for the year ended December 31, 2010. Net income per fully diluted share for fiscal year 2011 was $0.59 a 40.5% increase from $0.42 per diluted share for fiscal year 2010. Similarly, earnings per diluted share for the fourth quarter ended December 31, 2011 were $0.22, as compared to $0.07 per diluted share for the fourth quarter of 2010.

Dann H. Bowman, President and Chief Executive Officer stated, "We have been very fortunate this year, with the Bank posting better than expected operating results.  Loan quality also continues to improve with many of our customers experiencing better Sales and Earnings results this year; and at year-end the Bank had only one delinquent loan.  Overall, we are becoming increasingly optimistic regarding the economy and the Inland Empire Region in general.  Though we are not out of the woods yet, we believe the Bank is well positioned to benefit from the improved economic and business conditions."

Financial Condition
Non-interest bearing deposits increased 12.6% to $47.2 million at December 31, 2011 from $41.9 million at December 31, 2010. Total deposits at December 31, 2011 totaled $98.1 million, a decline of 4.8% from $103.0 million at December 31, 2010. Core deposits decreased 0.8%, to $85.9 million at December 31, 2011 from $86.6 million at December 31, 2010. The Bank's core deposits to total deposits increased to a very favorable 89.6% of total deposits at December 31, 2011 from 84.1% at December 31, 2010.

At December 31, 2011, total assets were $109.7 million, a decrease of $4.2 million or 3.7% from December 31, 2010.

Gross loans declined slightly to $56.8 million at December 31, 2011 from $60.5 million at December 31, 2010, or a decrease of 6.1%, and total investments and Federal funds sold decreased slightly to $40.1 million from $40.9 million at December 31, 2010, a 1.9% decrease.

The level of "non-performing" loans decreased during the year to $3.6 million at December 31, 2011 from $4.3 million at December 31, 2010 or a 13.5% decrease. Many of these loans have been graded as non-performing based on information contained in the borrower's income tax returns. At year-end all of the non-performing loans except one, were current on their scheduled payments. At year-end the Bank had only one loan which was more than 30 days delinquent for $171,434 and one commercial real estate property in OREO at $439,117.

The level of net loan charge-offs decreased during the year to $185,909 in 2011 from $605,125 in 2010, or a decrease of $411,455. It is important to note, however, that of the charge-offs taken in 2011 of $127,035 and in 2010 of $444,656 were charge-offs against loans that were paying as agreed. In many cases these charge-offs were taken to reflect reduced real estate collateral values.

Earnings
The Company posted net interest income of $3,732,455 for the year ended December 31, 2011 as compared to $3,892,775 for the year ended December 31, 2010. Average interest-earning assets were $93.7 million with average interest-bearing liabilities of $56.0 million yielding a net interest margin of 3.97% for the year ended December 31, 2010 as compared to average interest-bearing assets of $99.7 million with average interest-bearing liabilities of $65.2 million yielding a net interest margin of 3.90% for the year ended December 31, 2010.

The Bank posted net interest income of $926,160 for the three months ended December 31, 2011 as compared to $957,354 for the three months ended December 31, 2010. Average interest-earning assets were $93.9 million with average interest-bearing liabilities of $54.1 million yielding a net interest margin of 3.91% for the fourth quarter of 2011 as compared to average interest-earning assets of $99.6 million with average interest-bearing liabilities of $64.4 million yielding a net interest margin of 3.81% for the three months ended December 31, 2010.

Non-interest income totaled $1,347,803, or a decrease of 10.6% from $1, 506,938 earned in the year ended December 31, 2010. Service charges on deposit accounts increased $6,744, or 0.6% to $1,173,299 in 2011 due to higher volume of returned items activity. Gain on sale of foreclosed assets decreased to $61,151 in 2011 from $235,766 for the year ended December 31, 2010 due to gain on sale OREO of $61,151 received in 2011 compared to gain of foreclosed equipment totaling $127,839 and a gain on sale of OREO netting at $107,927 for the year ended December 31, 2010

Non-interest income for the quarter ended December 31, 2011 totaled $309,034 or a 29.7% decrease from the fourth quarter of 2010. The decrease is due to a gain on the sale of OREO of $107,779 recognized in the fourth quarter of 2010 that was not repeated in the fourth quarter of 2011.

General and administrative expenses were $969,519 for the three months ended December 31, 2011 or a decrease of 10.7% as compared to $1,085,983 for the three months ended December 31, 2010. General and administrative expenses were $4,118,282 for the year ended December 31, 2011 as compared to $4,195,016 for the year ended December 31, 2010. The largest component of general and administrative expenses was salary and benefits expense which totaled $535,442 for the three months ended December 31, 2011 as compared to $555,760 for the three months ended December 31, 2010. Salary and benefits expense were $2,182,644 for the year ended December 31, 2011 as compared to $2,193,710 for the year ended December 31, 2010.

The consolidated Company's income tax expense was $97,688 for the three months ended December 31, 2011 as compared to $15,319 for the three months ended December 31, 2010. Income tax expenses were $229,685 for the year ended December 31, 2011 as compared to $129,644 for the year ended December 31, 2010. The effective income tax rate for 2011 and 2010 was approximately 34% and 30%, 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

December 31, 2011 and December 31, 2010

 

 

December 31, 2011

 

December 31, 2010

 

(unaudited)

 

(audited)

ASSETS:

 

 

 

Cash and due from banks

$       3,358,177

 

$       3,041,114

Federal funds sold

14,165,877

 

4,660,527

Total cash and cash equivalents

17,524,054

 

7,701,641

 

 

 

 

Interest-bearing deposits in other banks

13,339,252

 

19,378,252

Investment securities available for sale

2,972,420

 

4,706,994

Investment securities held to maturity (fair value approximates

 

 

 

$9,861,000 at December 31, 2011 and $12,302,000 at December 31, 2010)

9,652,630

 

12,153,915

Total investments

25,964,302

 

36,239,161

Loans

 

 

 

Real estate

46,184,898

 

51,459,881

Commercial

9,974,353

 

8,411,117

Installment

643,660

 

649,455

Gross loans

56,802,911

 

60,520,453

Unearned fees and discounts

(29,107)

 

(27,204)

Loans net of unearned fees and discount

56,773,804

 

60,493,249

Allowance for loan losses

(1,537,963)

 

(1,442,153)

 Net loans

55,235,841

 

59,051,096

 

 

 

 

Accrued interest receivable

275,976

 

382,943

Restricted stock

667,700

 

626,250

Fixed assets, net

6,443,753

 

6,342,670

Foreclosed assets

439,317

 

516,534

Prepaid & other assets

3,154,650

 

3,053,531

Total assets

$   109,705,593

 

$   113,913,826

 

 

 

 

LIABILITIES:

 

 

 

Deposits

 

 

 

Non-interest bearing 

$     47,188,644

 

$     41,909,584

Interest bearing

 

 

 

NOW and money market

32,241,986

 

36,241,586

Savings

1,809,536

 

2,085,092

Time deposits less than $100,000

4,700,126

 

6,377,430

Time deposits of $100,000 or greater

12,163,266

 

16,385,864

Total deposits

98,103,558

 

102,999,556

 

 

 

 

Accrued interest payable

139,646

 

104,967

Accrued expenses & other payables

897,363

 

700,046

Subordinated notes payable to subsidiary trust

3,093,000

 

3,093,000

Total liabilities

102,233,567

 

106,897,569

STOCKHOLDERS' EQUITY

 

 

 

Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 749,540 shares at September 30, 2011 and at December 31, 2010.

 

 

 

 

 

 

2,760,812

 

2,750,285

Retained earnings

4,631,610

 

4,190,208

Accumulated other comprehensive income

79,604

 

75,764

Total stockholders' equity

7,472,026

 

7,016,257

Total liabilities & stockholders' equity

$   109,705,593

 

$   113,913,826

 

 

 

 

 

CHINO COMMERCIAL BANCORP

CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the year ended

 

December 31

 

December 31

 

2011

 

2010

 

2011

 

2010

 

(unaudited)

 

(unaudited)

 

(audited)

Interest income

 

 

 

 

 

 

 

Investment securities and due from banks

$      114,463

 

$      181,956

 

$      570,394

 

$      798,528

Interest on Federal funds sold

7,596

 

1,798

 

16,248

 

4,557

Interest and fee income on loans 

939,211

 

1,013,777

 

3,732,455

 

4,185,291

Total interest income

1,061,270

 

1,197,531

 

4,319,097

 

4,988,376

Interest expense

 

 

 

 

 

 

 

Deposits

89,656

 

189,210

 

397,396

 

891,176

Other interest expense

0

 

6

 

75

 

575

Other borrowings

45,454

 

50,963

 

198,342

 

203,850

Total interest expense

135,110

 

240,179

 

595,813

 

1,095,601

Net interest income

926,160

 

957,352

 

3,723,284

 

3,892,775

Provision for loan losses

59

 

239,756

 

281,719

 

769,752

Net interest income after

 

 

 

 

 

 

 

provision for loan losses

926,101

 

717,596

 

3,441,565

 

3,123,023

Non-interest income

 

 

 

 

 

 

 

Service charges on deposit accounts

280,982

 

304,249

 

1,173,299

 

1,166,555

Gain on sale of foreclosed assets

0

 

107,779

 

61,151

 

235,766

Other miscellaneous income

7,456

 

7,002

 

32,262

 

27,933

Dividend income from restricted stock

2,803

 

2,892

 

11,145

 

7,310

Income from bank-owned life insurance

17,793

 

17,565

 

69,946

 

69,374

Total non-interest income

309,034

 

439,487

 

1,347,803

 

1,506,938

General and administrative expenses

 

 

 

 

 

 

 

Salaries and employee benefits

535,442

 

555,760

 

2,182,644

 

2,193,710

Occupancy and equipment

103,317

 

120,825

 

429,111

 

436,964

Data and item processing

88,525

 

92,287

 

366,487

 

355,520

Advertising and marketing

17,647

 

39,626

 

59,830

 

63,119

Legal and professional fees

44,597

 

67,365

 

355,681

 

280,918

Regulatory assessments

53,911

 

60,361

 

231,329

 

222,599

Insurance

12,467

 

10,047

 

42,703

 

37,997

Directors' fees and expenses

18,167

 

16,518

 

72,264

 

67,477

Other expenses

95,446

 

123,194

 

378,233

 

536,712

Total general & administrative expenses

969,519

 

1,085,983

 

4,118,282

 

4,195,016

Income before income tax expense

265,616

 

71,100

 

671,086

 

434,945

Income tax expense

97,688

 

15,319

 

229,685

 

129,644

Net income

$      167,928

 

$        55,781

 

$      441,401

 

$      305,301

Basic earnings per share  

$            0.22

 

$            0.07

 

$            0.59

 

$            0.42

Diluted earnings per share 

$            0.22

 

$            0.07

 

$            0.59

 

$            0.42

 

 

 

 

 

 

 

 

 

 

CHINO COMMERCIAL BANCORP
Other Financial Information
(unaudited)

 

 

 

 

CREDIT QUALITY

End of period

(unaudited)

December 31, 2011

 

December 31, 2010

Non-performing loans

$  3,605,142

 

$   4,167,573

Non-performing loans to total loans

6.35%

 

6.89%

Non-performing loans to total assets

3.29%

 

3.66%

Allowance for loan losses to total loans

2.71%

 

2.38%

Nonperforming assets as a percentage of total loans and OREO

7.07%

 

7.67%

Allowance for loan losses to non-performing loans

42.66%

 

34.60%

 

 

 

 

OTHER PERIOD-END STATISTICS

 

 

 

(unaudited)

December 31, 2011

 

December 31, 2010

Shareholders equity to total assets

6.81%

 

6.16%

Net Loans to deposits

56.30%

 

57.33%

Non-interest bearing deposits to total deposits

48.10%

 

40.69%


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the year ended

 

December 31

 

December 31

 

2011

 

2010

 

2011

 

2010

KEY FINANCIAL RATIOS

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

Annualized return on average equity

9.13%

 

3.25%

 

6.10%

 

4.61%

Annualized return on average assets

0.63%

 

0.20%

 

0.41%

 

0.27%

Net interest margin

3.91%

 

3.81%

 

3.97%

 

3.90%

Core efficiency ratio

78.49%

 

83.63%

 

82.20%

 

81.23%

Net chargeoffs to average loans

0.00%

 

0.18%

 

0.32%

 

1.00%

 

 

 

 

 

 

 

 

AVERAGE BALANCES

 

 

 

 

 

 

 

(thousands, unaudited)

 

 

 

 

 

 

 

Average assets

$ 107,300

 

$ 114,296

 

$ 107,443

 

$ 113,865

Average interest-earning assets

$ 93,942

 

$ 99,560

 

$ 93,745

 

$ 99,740

Average gross loans

$ 56,916

 

$ 59,900

 

$ 58,793

 

$ 60,679

Average deposits

$ 95,891

 

$ 103,195

 

$ 96,137

 

$ 102,776

Average equity

$ 7,360

 

$ 6,872

 

$ 7,235

 

$ 6,652

 

 

 

 

 

 

 

 

SOURCE Chino Commercial Bancorp



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