Chino Commercial Bancorp Reports 16% Increase In Third Quarter Earnings
CHINO, Calif., Oct. 16, 2015 /PRNewswire/ -- The Board of Directors of Chino Commercial Bancorp ("CCBC"), the parent company of Chino Commercial Bank, N.A., announced net earnings for the Company and the consolidated Bank for the third quarter ended September 30, 2015 with net earnings of $336,328 or an increase of 16%, as compared with net income of $289,916 for the same quarter last year. Net income per basic and diluted share for the third quarter 2015 was $0.33 as compared to $0.28 for the same quarter last year. The Company's income for the nine months ended September 30, 2015 increased 14.9% to $1,008,749 or $0.98 per basic and diluted share as compared with net earnings of $877,887 or $0.86 per basic and diluted share for the same period in 2014.
Dann H. Bowman, President and Chief Executive Officer, stated, "The Bank's operating performance in the third quarter and year-to-date has been very strong. Credit quality remains solid with the Bank having no credit losses over the first three quarters, no Non-performing assets, and no foreclosed properties.
Economic conditions in the Inland Empire continue to improve and the business climate is very good. With the Bank's strong balance sheet, we have the capacity to expand our lending within the community and grow the organization."
Financial Condition
At September 30, 2015, total assets were $164.3 million, which was an increase of $34.1 million or 26.2% over $130.1 million at December 31, 2014. Deposits increased by $18.1 million or 15.7% to $133.5 million at September 30, 2015, from $115.4 million at December 31, 2014.
Loans net of unearned fees increased 4.8% in the nine months ended September 30, 2015 to $87.2 million from $83.2 million at December 31, 2014. The Bank's loan quality remained consistent during the second quarter as nonperforming assets and OREO remained at zero at September 30, 2015 and December 31, 2014, respectively.
Earnings
The Company posted net interest income of $1,310,757 and $1,081,338 for the three months ended September 30, 2015 and 2014, respectively, or an increase of $229,419 or 21.2%. For the nine months ended September 30, 2015 the Company posted net interest income of $3,783,457, compared to $3,087,463 for the same period in 2014, or an increase of $695,994 or 22.5%.
Average interest-earning assets were $143.0 million with average interest-bearing liabilities of $69.8 million, yielding a net interest margin of 3.64% for the third quarter of 2015; as compared to the average interest-earning assets of $114.9 million with average interest-bearing liabilities of $55.5 million, yielding a net interest margin of 3.73% for the third quarter of 2014.
Non-interest income totaled $350,622 for the third quarter of 2015, or a decrease of 11.9% from $398,190 earned during the third quarter of 2014. For the nine months ended September 30, 2015, non-interest income totaled $1,108,975 or a 10.4% decrease from $1,237,134 earned during the same period in 2014.
General and administrative expenses were $1,115,633 for the three months ended September 30, 2015, as compared to $1,012,807 for the third quarter of 2014. The largest component of general and administrative expenses was salary and benefits expense of $650,333 for the third quarter of 2015, as compared to $570,831 for the three months ended September 30, 2014. Regulatory assessments increased to $31,611 or 7.0% in the third quarter of 2015, compared to $29,537 in the third quarter of 2014. Legal, Audit, and Other Professional fees decreased by 44.2% to $32,980 in the third quarter of 2015, from $59,100 in the quarter ended September 30, 2014 due to an overall decrease in audit fees.
Income tax expense was $209,175 for the three months ended September 30, 2015, as compared to $176,805 for the three months ended September 30, 2014. The effective income tax rate for the third quarter of 2015 and 2014 is approximately 38.3% and 37.9%, 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 |
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| CONSOLIDATED BALANCE SHEET |
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| September 30, 2015 and December 31, 2014 |
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| September 30, 2015 |
December 31, 2014 |
||
| (unaudited) |
(audited) |
||
| ASSETS: |
|||
| Cash and due from banks |
$ 36,595,837 |
$ 5,529,963 |
|
| Total cash and cash equivalents |
36,595,837 |
5,529,963 |
|
| Interest-bearing deposits in other banks |
5,456,000 |
$ 19,048,000 |
|
| Investment securities available for sale |
3,121,918 |
1,637,579 |
|
| Investment securities held to maturity (fair value approximates |
|||
| $21,998,000 at September 30, 2015 and $11,493,000 at December 31, 2014) |
21,777,251 |
11,370,815 |
|
| Total investments |
30,355,169 |
32,056,394 |
|
| Loans |
|||
| Construction |
1,200,000 |
613,802 |
|
| Real estate |
65,527,204 |
65,070,148 |
|
| Commercial |
20,366,126 |
17,437,492 |
|
| Installment |
376,077 |
339,519 |
|
| Gross loans |
87,469,407 |
83,460,961 |
|
| Unearned fees and discounts |
(222,732) |
(211,142) |
|
| Loans net of unearned fees and discount |
87,246,675 |
83,249,819 |
|
| Allowance for loan losses |
(1,619,773) |
(1,536,241) |
|
| Net loans |
85,626,902 |
81,713,578 |
|
| Fixed assets, net |
5,891,960 |
5,971,324 |
|
| Accrued interest receivable |
355,770 |
312,508 |
|
| Stock investments, restricted, at cost |
1,592,400 |
716,700 |
|
| Bank-owned life insurance |
3,157,372 |
3,080,794 |
|
| Other assets |
714,918 |
751,466 |
|
| Total assets |
$ 164,290,328 |
$ 130,132,727 |
|
| LIABILITIES: |
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| Deposits |
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| Non-interest bearing |
$ 77,092,870 |
$ 64,657,125 |
|
| Interest bearing |
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| NOW and money market |
41,430,640 |
35,665,321 |
|
| Savings |
4,338,307 |
4,119,507 |
|
| Time deposits less than $100,000 |
4,053,388 |
4,367,455 |
|
| Time deposits of $100,000 or greater |
6,633,531 |
6,631,526 |
|
| Total deposits |
133,548,736 |
115,440,934 |
|
| Accrued interest payable |
23,431 |
26,066 |
|
| Borrowings from Federal Home Loan Bank (FHLB) |
15,000,000 |
- |
|
| Accrued expenses & other payables |
826,913 |
772,134 |
|
| Subordinated notes payable to subsidiary trust |
3,093,000 |
3,093,000 |
|
| Total liabilities |
152,492,080 |
119,332,134 |
|
| SHAREHOLDERS' EQUITY |
|||
| Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 1,026,349 shares at September 30, 2015 and 916,550 December 31, 2014, respectively. |
|||
| 6,089,466 |
4,579,730 |
||
| Retained earnings |
5,681,956 |
6,185,281 |
|
| Accumulated other comprehensive income |
26,826 |
35,582 |
|
| Total shareholders' equity |
11,798,248 |
10,800,593 |
|
| Total liabilities & shareholders' equity |
$ 164,290,328 |
$ 130,132,727 |
|
| CHINO COMMERCIAL BANCORP |
|||||||
| CONSOLIDATED STATEMENTS OF NET INCOME |
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| (unaudited) |
|||||||
| For the three months ended |
For the year ended |
||||||
| September 30 |
September 30 |
||||||
| 2015 |
2014 |
2015 |
2014 |
||||
| Interest income |
|||||||
| Interest and fee income on loans |
$ 1,228,781 |
$ 1,021,331 |
$ 3,616,409 |
$ 2,965,236 |
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| Interest on federal funds sold and FRB deposits |
16,161 |
5,921 |
27,375 |
27,361 |
|||
| Interest on time deposits in banks |
15,004 |
38,095 |
68,193 |
101,323 |
|||
| Interest on investment securities |
132,792 |
87,190 |
303,371 |
203,325 |
|||
| Total interest income |
1,392,738 |
1,152,537 |
4,015,348 |
3,297,245 |
|||
| Interest Expense |
|||||||
| Interest on deposits |
59,424 |
56,546 |
172,863 |
166,214 |
|||
| Other borrowings |
22,557 |
14,653 |
59,028 |
43,568 |
|||
| Total interest expense |
81,981 |
71,199 |
231,891 |
209,782 |
|||
| Net interest income |
1,310,757 |
1,081,338 |
3,783,457 |
3,087,463 |
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| Provision for loan losses |
243 |
- |
4,041 |
(129,089) |
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| Net interest income after provision for loan losses |
1,310,514 |
1,081,338 |
3,779,416 |
3,216,552 |
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| Non-interest income |
|||||||
| Service charges on deposit accounts |
265,693 |
336,670 |
873,089 |
1,031,575 |
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| Other miscellaneous income |
21,343 |
20,268 |
59,878 |
89,171 |
|||
| Dividend income from restricted stock |
37,951 |
15,119 |
99,430 |
38,457 |
|||
| Income from bank-owned life insurance |
25,635 |
26,133 |
76,578 |
77,931 |
|||
| Total non-interest income |
350,622 |
398,190 |
1,108,975 |
1,237,134 |
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| Non-interest expenses |
|||||||
| Salaries and employee benefits |
650,333 |
570,831 |
1,964,562 |
1,733,248 |
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| Occupancy and equipment |
108,305 |
112,808 |
310,585 |
315,138 |
|||
| Data and item processing |
97,934 |
96,585 |
287,353 |
288,571 |
|||
| Advertising and marketing |
13,714 |
26,033 |
39,998 |
70,038 |
|||
| Legal and professional fees |
32,980 |
59,100 |
115,606 |
164,117 |
|||
| Regulatory assessments |
31,611 |
29,537 |
92,813 |
87,879 |
|||
| Insurance |
8,471 |
8,431 |
24,807 |
25,275 |
|||
| Directors' fees and expenses |
26,771 |
27,628 |
80,850 |
82,469 |
|||
| Other expenses |
145,514 |
81,854 |
336,062 |
272,048 |
|||
| Total non-interest expenses |
1,115,633 |
1,012,807 |
3,252,636 |
3,038,783 |
|||
| Income before income tax expense |
545,503 |
466,721 |
1,635,755 |
1,414,903 |
|||
| Income tax expense |
209,175 |
176,805 |
627,006 |
537,016 |
|||
| Net income |
$ 336,328 |
$ 289,916 |
$ 1,008,749 |
$ 877,887 |
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| Basic earnings per share |
$ 0.33 |
$ 0.28 |
$ 0.98 |
$ 0.86 |
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| Diluted earnings per share |
$ 0.33 |
$ 0.28 |
$ 0.98 |
$ 0.86 |
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| For the three months ended |
For the year ended |
|||||||
| September 30 |
September 30 |
|||||||
| 2015 |
2014 |
2015 |
2014 |
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| KEY FINANCIAL RATIOS |
||||||||
| (unaudited) |
||||||||
| Annualized return on average equity |
11.55% |
11.14% |
11.86% |
11.61% |
||||
| Annualized return on average assets |
0.86% |
0.91% |
0.93% |
0.94% |
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| Net interest margin |
3.64% |
3.73% |
3.85% |
3.70% |
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| Core efficiency ratio |
67.15% |
68.45% |
66.48% |
70.27% |
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| Net chargeoffs/(recoveries) to average loans |
-0.07% |
-0.02% |
-0.09% |
-0.24% |
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| AVERAGE BALANCES |
||||||||
| (thousands, unaudited) |
||||||||
| Average assets |
$ 156,751 |
$ 127,863 |
$ 145,101 |
$ 124,456 |
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| Average interest-earning assets |
$ 142,958 |
$ 114,908 |
$ 131,394 |
$ 111,461 |
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| Average gross loans |
$ 85,866 |
$ 69,029 |
$ 86,529 |
$ 65,830 |
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| Average deposits |
$ 121,976 |
$ 113,482 |
$ 115,721 |
$ 110,467 |
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| Average equity |
$ 11,651 |
$ 10,409 |
$ 11,345 |
$ 10,078 |
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| CREDIT QUALITY |
End of period |
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| (unaudited) |
September 30, 2015 |
December 31, 2014 |
||
| Non-performing loans |
$ - |
$ - |
||
| Non-performing loans to total loans |
0.00% |
0.00% |
||
| Non-performing loans to total assets |
0.00% |
0.00% |
||
| Allowance for loan losses to total loans |
1.85% |
1.84% |
||
| Nonperforming assets as a percentage of total loans and OREO |
0.00% |
0.00% |
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| Allowance for loan losses to non-performing loans |
n/a |
n/a |
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| OTHER PERIOD-END STATISTICS |
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| (unaudited) |
September 30, 2015 |
December 31, 2014 |
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| Shareholders equity to total assets |
7.18% |
8.30% |
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| Net Loans to deposits |
64.12% |
70.78% |
||
| Non-interest bearing deposits to total deposits |
57.73% |
56.01% |
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| Total capital to total risk-weighted assets |
16.93% |
16.72% |
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| Tier 1 capital to total risk-weighted assets |
16.55% |
16.01% |
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| Tier 1 leverage ratio |
10.01% |
11.18% |
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| Common equity tier 1 |
16.55% |
n/a |
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SOURCE Chino Commercial Bancorp
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