Chino Commercial Bancorp Reports 21% Increase In Profits
CHINO, Calif., Jan. 19, 2015 /PRNewswire/ -- The Board of Directors of Chino Commercial Bancorp ("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, 2014. For the full year ended December 31, 2014 the company posted a consolidated net income of $1,139,773, an increase of 21.2% over net income of $940,728 for the year ended December 31, 2013. Net income for the quarter ended December 31, 2014 decreased 11.5% to $261,887 from $295,970 for quarter ended December 31, 2013. Net income per basic share and fully diluted share was $1.30 for the year ended December 31, 2014, a 21.2% increase over $1.13 per share for the year ended December 31, 2013. Earnings per basic share and diluted share for the fourth quarter ended December 31, 2014 were $0.30 as compared to $0.36 for the fourth quarter of 2013.
Dann H. Bowman, President and Chief Executive Officer stated, "We are very pleased with the performance of the Bank in 2014. This year the Bank set new records for earnings, earnings per share, total deposits and total loans. The Company's net earnings for fiscal year 2014 were up 21% over the previous year, representing a return on beginning equity of 11.8%. Deposit and Loan balances increased during the year by 5.3% and 29.7% respectively, allowing the Bank to show improved stability of earnings and efficiency. In addition to the growth, at fiscal year end the Bank reported no OREO, and only one delinquent loan."
Financial Condition
Non-interest bearing deposits increased 14.3% to $64.7 million at December 31, 2014 from $56.6 million at December 31, 2013. Total deposits at December 31, 2014 totaled $115.4 million, an increase of 5.3% from $109.6 million at December 31, 2013. Core deposits increased 7.5% to $108.8 million at December 31, 2014 from $101.2 million at December 31, 2013. The Bank's core deposits to total deposits increased to a very favorable 94.3% of total deposits at December 31, 2014 from 92.3% at December 31, 2013.
At December 31, 2014, total assets were $130.1 million, an increase of $7.0 million or 5.7% from $123.1 million at December 31, 2013.
Gross loans increased to $83.5 million at December 31, 2014 from $64.4 million at December 31, 2013, or an increase of 29.7%, and total investments increased to $32.1 million from $24.0 million at December 31, 2013, a 33.7% increase.
The level of "non-performing" loans decreased during the year to $0 at December 31, 2014, from one loan totaling $207,942 at December 31, 2013 or a 100% decrease. At year-end the Bank had only one overdrawn account which was more than 30 days delinquent for $285.63.
The company continued to experience net loan recoveries amounting to $163,738 in 2014 as compared with a net recovery of $57,442 in 2013, or an increase in recoveries of $106,296. Net loan loss (recovery) as a percent of gross loans was (0.20%) and (0.09%) for the years ended December 31, 2014 and 2013, respectively.
Earnings
The Company posted net interest income of $4,258,257 for the year ended December 31, 2014, as compared to $4,092,971 for the year ended December 31, 2013. Average interest-earning assets were $112.4 million with average interest-bearing liabilities of $51.6 million, yielding a net interest margin of 3.79% for the year ended December 31, 2013; as compared to average interest-earning assets of $105.3 million with average interest-bearing liabilities of $53.4 million, yielding a net interest margin of 3.89% for the year ended December 31, 2013.
The Bank posted net interest income of $1,170,794 for the three months ended December 31, 2014 as compared to $1,084,011 for the three months ended December 31, 2013. Average interest-earning assets were $115.1 million with average interest-bearing liabilities of $52.6 million, yielding a net interest margin of 4.03% for the fourth quarter of 2014; as compared to average interest-earning assets of $106.8 million with average interest-bearing liabilities of $50.6 million, yielding a net interest margin of 4.03% for the three months ended December 31, 2013.
Non-interest income totaled $1,605,099, or an increase of 7.2% from $1,497,094, earned in the year ended December 31, 2013. Service charges on deposit accounts increased $44,399 or 3.4% to $1,344,099 in 2014.
Non-interest income for the quarter ended December 31, 2014 totaled $367,964 or a 5.9% decrease from the fourth quarter of 2013.
General and administrative expenses were $1,114,531 for the three months ended December 31, 2014 or an increase of 11.6% as compared to $998,524 for the three months ended December 31, 2013. General and administrative expenses were $4,153,316 for the year ended December 31, 2014 as compared to $4,082,037 for the year ended December 31, 2013. The largest component of general and administrative expenses was salary and benefits expense, which totaled $665,516 for the three months, ended December 31, 2014 as compared to $550,243 for the three months ended December 31, 2013. Salary and benefits expense were $2,398,764 for the year ended December 31, 2014 as compared to $2,231,308 for the year ended December 31, 2013.
The consolidated Company's income tax expense was $157,743 for the three months ended December 31, 2014 as compared to $181,266 for the three months ended December 31, 2013. Income tax expenses were $694,759 for the year ended December 31, 2014 as compared to $566,545 for the year ended December 31, 2013. The effective income tax rate for 2014 and 2013 was approximately 37.9% and 37.6%, 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, 2014 and December 31, 2013 |
|||
| December 31, 2014 |
December 31, 2013 |
||
| (unaudited) |
(audited) |
||
| ASSETS: |
|||
| Cash and due from banks |
$ 5,529,963 |
$ 25,538,999 |
|
| Federal funds sold |
- |
50,773 |
|
| Total cash and cash equivalents |
5,529,963 |
25,589,772 |
|
| Interest-bearing deposits in other banks |
19,048,000 |
18,990,000 |
|
| Investment securities available for sale |
1,637,579 |
1,887,251 |
|
| Investment securities held to maturity (fair value approximates $11,493,000 at December 31, 2014 and $3,195,000 at December 31, 2013) |
|||
| 11,370,814 |
3,095,803 |
||
| Total investments |
32,056,393 |
23,973,054 |
|
| Loans |
|||
| Construction |
613,802 |
- |
|
| Real estate |
65,070,148 |
49,370,422 |
|
| Commercial |
17,437,492 |
14,675,131 |
|
| Installment |
339,520 |
313,144 |
|
| Gross loans |
83,460,962 |
64,358,697 |
|
| Unearned fees and discounts |
(211,141) |
(98,360) |
|
| Loans net of unearned fees and discount |
83,249,821 |
64,260,337 |
|
| Allowance for loan losses |
(1,536,241) |
(1,496,995) |
|
| Net loans |
81,713,580 |
62,763,342 |
|
| Accrued interest receivable |
312,508 |
270,106 |
|
| Restricted stock |
716,700 |
605,400 |
|
| Fixed assets, net |
5,971,324 |
6,140,958 |
|
| Foreclosed assets |
0 |
0 |
|
| Prepaid & other assets |
3,832,260 |
3,783,159 |
|
| Total assets |
$ 130,132,728 |
$ 123,125,791 |
|
| LIABILITIES: |
|||
| Deposits |
|||
| Non-interest bearing |
$ 64,657,125 |
$ 56,565,703 |
|
| Interest bearing |
|||
| NOW and money market |
35,665,321 |
36,984,851 |
|
| Savings |
4,119,507 |
2,937,076 |
|
| Time deposits less than $100,000 |
4,367,455 |
4,700,243 |
|
| Time deposits of $100,000 or greater |
6,631,526 |
8,415,988 |
|
| Total deposits |
115,440,934 |
109,603,861 |
|
| Accrued interest payable |
26,066 |
28,367 |
|
| Accrued expenses & other payables |
772,135 |
724,120 |
|
| Subordinated notes payable to subsidiary trust |
3,093,000 |
3,093,000 |
|
| Total liabilities |
119,332,135 |
113,449,348 |
|
| SHAREHOLDERS' EQUITY |
|||
| Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 916,550 shares at December 31, 2014 and 833,280 shares at December 31, 2013. |
4,579,730 |
3,463,912 |
|
| Retained earnings |
6,185,281 |
6,162,103 |
|
| Common stock distributable |
0 |
0 |
|
| Accumulated other comprehensive income |
35,582 |
50,428 |
|
| Total shareholders' equity |
10,800,593 |
9,676,443 |
|
| Total liabilities & shareholders' equity |
$ 130,132,728 |
$ 123,125,791 |
|
| CHINO COMMERCIAL BANCORP CONSOLIDATED STATEMENTS OF NET INCOME (unaudited) |
|||||||
| For the three months ended December 31 |
For the year ended December 31 |
||||||
| 2014 |
2013 |
2014 |
2013 |
||||
| Interest income |
|||||||
| Investment securities and due from banks |
$ 121,569 |
$ 80,930 |
$ 453,482 |
$ 320,207 |
|||
| Interest on Federal funds sold |
29 |
32 |
125 |
130 |
|||
| Interest and fee income on loans |
1,119,762 |
1,074,190 |
4,084,997 |
4,081,506 |
|||
| Total interest income |
1,241,360 |
1,155,152 |
4,538,604 |
4,401,843 |
|||
| Interest expense |
|||||||
| Deposits |
55,204 |
56,326 |
221,418 |
249,378 |
|||
| Other interest expense |
687 |
- |
687 |
- |
|||
| Other borrowings |
14,675 |
14,815 |
58,243 |
59,493 |
|||
| Total interest expense |
70,566 |
71,141 |
280,348 |
308,871 |
|||
| Net interest income |
1,170,794 |
1,084,011 |
4,258,257 |
4,092,972 |
|||
| Provision for loan losses |
4,597 |
(895) |
(124,492) |
756 |
|||
| Net interest income after provision for loan losses |
1,166,197 |
1,084,906 |
4,382,749 |
4,092,216 |
|||
| Non-interest income |
|||||||
| Service charges on deposit accounts |
312,524 |
338,529 |
1,344,099 |
1,299,700 |
|||
| Other miscellaneous income |
19,171 |
17,891 |
108,344 |
73,874 |
|||
| Dividend income from restricted stock |
9,882 |
8,035 |
48,339 |
34,348 |
|||
| Income from bank-owned life insurance |
26,387 |
26,399 |
104,317 |
89,172 |
|||
| Total non-interest income |
367,964 |
390,854 |
1,605,099 |
1,497,094 |
|||
| Non-interest expenses |
|||||||
| Salaries and employee benefits |
665,516 |
550,243 |
2,398,764 |
2,231,308 |
|||
| Occupancy and equipment |
123,112 |
103,561 |
438,251 |
412,043 |
|||
| Data and item processing |
94,191 |
108,744 |
382,762 |
408,109 |
|||
| Advertising and marketing |
30,129 |
20,493 |
100,168 |
69,554 |
|||
| Legal and professional fees |
52,425 |
44,238 |
216,542 |
215,411 |
|||
| Regulatory assessments |
20,446 |
39,643 |
108,325 |
218,269 |
|||
| Insurance |
8,431 |
8,509 |
33,705 |
44,150 |
|||
| Directors' fees and expenses |
27,456 |
27,795 |
109,925 |
112,117 |
|||
| Other expenses |
92,825 |
95,298 |
364,874 |
371,076 |
|||
| Total non-interest expenses |
1,114,531 |
998,524 |
4,153,316 |
4,082,037 |
|||
| Income before income tax expense |
419,630 |
477,236 |
1,834,532 |
1,507,273 |
|||
| Income tax expense |
157,743 |
181,266 |
694,759 |
566,545 |
|||
| Net income |
$ 261,887 |
$ 295,970 |
$ 1,139,773 |
$ 940,728 |
|||
| Basic earnings per share |
$ 0.30 |
$ 0.36 |
$ 1.30 |
$ 1.13 |
|||
| Diluted earnings per share |
$ 0.30 |
$ 0.36 |
$ 1.30 |
$ 1.13 |
|||
| CHINO COMMERCIAL BANCORP |
|||
| CREDIT QUALITY |
End of period |
||
| (unaudited) |
December 31, 2014 |
December 31, 2013 |
|
| Non-performing loans |
$ 0 |
$ 207,942 |
|
| Non-performing loans to total loans |
0.00% |
0.32% |
|
| Non-performing loans to total assets |
0.00% |
0.17% |
|
| Allowance for loan losses to total loans |
1.84% |
2.33% |
|
| Nonperforming assets as a percentage of total loans and OREO |
0.00% |
0.32% |
|
| Allowance for loan losses to non-performing loans |
n/a |
719.91% |
|
| OTHER PERIOD-END STATISTICS |
|||
| (unaudited) |
December 31, 2014 |
December 31, 2013 |
|
| Shareholders equity to total assets |
8.30% |
7.86% |
|
| Net Loans to deposits |
70.78% |
57.26% |
|
| Non-interest bearing deposits to total deposits |
56.01% |
51.61% |
|
| Total capital to total risk-weighted assets |
16.72% |
18.18% |
|
| Tier 1 capital to total risk-weighted assets |
16.02% |
17.08% |
|
| Tier 1 leverage ratio |
11.18% |
10.69% |
|
| For the three months ended December 31 |
For the year ended December 31 |
||||||
| 2014 |
2013 |
2014 |
2013 |
||||
| KEY FINANCIAL RATIOS |
|||||||
| (unaudited) |
|||||||
| Annualized return on average equity |
9.80% |
12.47% |
22.28% |
20.55% |
|||
| Annualized return on average assets |
0.82% |
0.99% |
1.82% |
1.59% |
|||
| Net interest margin |
4.03% |
4.03% |
3.79% |
3.89% |
|||
| Core efficiency ratio |
72.43% |
67.70% |
70.84% |
73.02% |
|||
| Net chargeoffs to average loans |
-0.01% |
-0.01% |
-0.24% |
-0.03% |
|||
| AVERAGE BALANCES |
|||||||
| (thousands, unaudited) |
|||||||
| Average assets |
$ 128,349 |
$ 119,929 |
$ 125,437 |
$ 118,138 |
|||
| Average interest-earning assets |
$ 115,132 |
$ 106,771 |
$ 112,387 |
$ 105,322 |
|||
| Average gross loans |
$ 79,834 |
$ 62,839 |
$ 69,360 |
$ 62,490 |
|||
| Average deposits |
$ 108,752 |
$ 101,542 |
$ 107,061 |
$ 101,022 |
|||
| Average equity |
$ 10,689 |
$ 9,492 |
$ 10,232 |
$ 9,155 |
|||
SOURCE Chino Commercial Bancorp
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