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.

SOURCE Chino Commercial Bancorp