Chino Commercial Bancorp Reports 42% Increase In First Quarter Earnings
Apr 20, 2015, 08:00 ET
CHINO, Calif., April 20, 2015 /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 first quarter ended March 31, 2015 with net earnings of $318,868, or an increase of 42.1% compared with net income of $224,423 for the same quarter last year. Net income per basic share for the first quarter of 2015 was $0.31 as compared $0.22 for the same quarter last year.
Dann H. Bowman, President and Chief Executive Officer, stated, "The Company had an excellent first quarter with deposits increasing, loans increasing, and revenue increasing. In addition to very strong net earnings, the Bank also had only one delinquent loan and suffered no credit losses during the first quarter. At the end of the first quarter the Bank had no OREO.
Economic conditions appear to be improving in the Inland Empire, and many of our small business customers are reporting better than expected operating results. We continue to remain optimistic about the economy, and are eager to lend to the businesses and consumers in our community."
During the first quarter, the Board of the Directors of the Company declared a 12% stock dividend to shareholders of record on March 6, 2015. The dividend was paid to the shareholders on March 27, 2015; and the earnings per share calculations have been adjusted to reflect the dividends paid.
Separately, the Bank recently reported that it had received recognition from the Findley Reports on Financial Institutions by again receiving their highest rating of Super Premier Performing.
Financial Condition
At March 31, 2015, total assets were $145.4 million, an increase of $15.3 million or 11.8% over $130.1 million at December 31, 2014. The increase is attributed to an overall growth across all areas of the Bank. Total deposits increased by 4.4% or $5.0 million during the first quarter to $120.5 million compared to $115.4 million as of December 31, 2014. At March 31, 2015, the Company's core deposits represent 94.6% of the total deposits.
Gross loans increased by 2.2% or $1.8 million during the first quarter to $85.3 million as compared with $83.5 million as of December 31, 2014. The Bank's loan quality remained consistent during the first quarter as nonperforming assets and OREO were at zero both at December 31, 2014 and March 31, 2015.
Earnings
The Company posted net interest income of $1,225,212 for the quarter ended March 31, 2015 as compared to $937,047 for the quarter ended March 31, 2014. Average earning assets increased as well as the yield on earning assets increased by 0.58% to 4.40%. Average interest-earning assets were $119.5 million with average interest-bearing liabilities of $57.2 million, yielding a net interest margin of 4.16% for the first quarter of 2015; as compared to the average interest-earning assets of $106.9 million with average interest-bearing liabilities of $55.6 million, yielding a net interest margin of 3.56% for the first quarter of 2014.
Non-interest income totaled $368,668 for the first quarter of 2015, or a decrease of 16.1% as compared with $439,560 earned during the first quarter last year. Service charges on deposit accounts decreased 12.9% to $306,002 due to decrease in income from returned items and overdraft charges. Dividend income from restricted stock increased to $18,374 for the first quarter of 2015, compared to $14,318 for the same quarter in 2014, due to additional purchases of restricted stock. Income from bank-owned life insurance remained consistent at $25,418 in the first quarter of 2015 and $25,814 in the first quarter of 2014.
General and administrative expenses were $1,075,780 for the three months ended March 31, 2015, as compared to $1,019,710 for the first quarter of 2014. The largest component of general and administrative expenses was salary and benefits expense of $663,539 for the first quarter of 2015, as compared to $587,396 for the same quarter last year. Regulatory assessments increased by $2,298 or 8.1% to $30,519 in the first quarter of 2015 compared to $28,221 in the first quarter of 2014 due the continuous growth of the Bank. Advertising and marketing expenses decreased 51.4% to $11,528 in the first quarter of 2015 from $23,743 for the same period last year.
Income tax expense was $197,774 for the three months ended March 31, 2015 as compared to $131,563 for the three months ended March 31, 2014. The effective income tax rate for the first quarter of 2015 and 2014 is approximately 38.3% and 37.0%, 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, 2015 and December 31, 2014 |
|||
| March 31, 2015 |
December 31, 2014 |
||
| (unaudited) |
(audited) |
||
| ASSETS: |
|||
| Cash and due from banks |
$ 21,528,744 |
$ 5,529,963 |
|
| Total cash and cash equivalents |
21,528,744 |
5,529,963 |
|
| Interest-bearing deposits in other banks |
16,320,000 |
$ 19,048,000 |
|
| Investment securities available for sale |
1,592,894 |
1,637,579 |
|
| Investment securities held to maturity (fair value approximates $12,495,000 at March 31, 2014 and $11,493,000 at December 31, 2014) |
|||
| 10,905,955 |
11,370,815 |
||
| Total investments |
28,818,849 |
32,056,394 |
|
| Loans |
|||
| Construction |
834,100 |
613,802 |
|
| Real estate |
64,704,547 |
65,070,148 |
|
| Commercial |
19,437,222 |
17,437,492 |
|
| Installment |
318,104 |
339,519 |
|
| Gross loans |
85,293,973 |
83,460,961 |
|
| Unearned fees and discounts |
(236,973) |
(211,142) |
|
| Loans net of unearned fees and discount |
85,057,000 |
83,249,819 |
|
| Allowance for loan losses |
(1,546,493) |
(1,536,241) |
|
| Net loans |
83,510,507 |
81,713,578 |
|
| Fixed assets, net |
5,926,806 |
5,971,324 |
|
| Accrued interest receivable |
334,010 |
312,508 |
|
| Stock investments, restricted, at cost |
1,625,400 |
716,700 |
|
| Bank-owned life insurance |
3,106,212 |
3,080,794 |
|
| Other assets |
599,030 |
751,466 |
|
| Total assets |
$ 145,449,558 |
$ 130,132,727 |
|
| LIABILITIES: |
|||
| Deposits |
|||
| Non-interest bearing |
$ 64,749,798 |
$ 64,657,125 |
|
| Interest bearing |
|||
| NOW and money market |
40,835,905 |
35,665,321 |
|
| Savings |
4,185,063 |
4,119,507 |
|
| Time deposits less than $100,000 |
4,249,746 |
4,367,455 |
|
| Time deposits of $100,000 or greater |
6,468,102 |
6,631,526 |
|
| Total deposits |
120,488,614 |
115,440,934 |
|
| Accrued interest payable |
26,694 |
26,066 |
|
| Borrowings from Federal Home Loan Bank (FHLB) |
10,000,000 |
- |
|
| Accrued expenses & other payables |
728,106 |
772,134 |
|
| Subordinated notes payable to subsidiary trust |
3,093,000 |
3,093,000 |
|
| Total liabilities |
134,336,414 |
119,332,134 |
|
| SHAREHOLDERS' EQUITY |
|||
| Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 1,026,349 shares at March 31, 2015 and 916,550 December 31, 2013, respectively. |
|||
| 6,089,466 |
4,579,730 |
||
| Retained earnings |
4,992,075 |
6,185,281 |
|
| Accumulated other comprehensive income |
31,603 |
35,582 |
|
| Total shareholders' equity |
11,113,144 |
10,800,593 |
|
| Total liabilities & shareholders' equity |
$ 145,449,558 |
$ 130,132,727 |
|
| CHINO COMMERCIAL BANCORP |
|||
| CONSOLIDATED STATEMENTS OF NET INCOME |
|||
| (unaudited) |
|||
| For the three months ended |
|||
| March 31 |
|||
| 2015 |
2014 |
||
| Interest income |
|||
| Interest and fee income on loans |
$ 1,185,445 |
$ 914,348 |
|
| Interest on federal funds sold and FRB deposits |
1,112 |
10,087 |
|
| Inerest on time deposits in banks |
30,195 |
29,613 |
|
| Interest on investment securities |
80,646 |
52,386 |
|
| Total interest income |
1,297,398 |
1,006,434 |
|
| Interest Expense |
|||
| Interest on deposits |
55,818 |
54,977 |
|
| Other borrowings |
16,368 |
14,410 |
|
| Total interest expense |
72,186 |
69,387 |
|
| Net interest income |
1,225,212 |
937,047 |
|
| Provision for loan losses |
1,458 |
911 |
|
| Net interest income after provision for loan losses |
1,223,754 |
936,136 |
|
| Non-interest income |
|||
| Service charges on deposit accounts |
306,002 |
351,376 |
|
| Other miscellaneous income |
18,874 |
48,052 |
|
| Dividend income from restricted stock |
18,374 |
14,318 |
|
| Income from bank-owned life insurance |
25,418 |
25,814 |
|
| Total non-interest income |
368,668 |
439,560 |
|
| Non-interest expenses |
|||
| Salaries and employee benefits |
663,539 |
587,396 |
|
| Occupancy and equipment |
103,001 |
99,802 |
|
| Data and item processing |
93,338 |
96,982 |
|
| Advertising and marketing |
11,528 |
23,743 |
|
| Legal and professional fees |
45,236 |
60,314 |
|
| Regulatory assessments |
30,519 |
28,221 |
|
| Insurance |
7,865 |
8,413 |
|
| Directors' fees and expenses |
26,417 |
26,669 |
|
| Other expenses |
94,337 |
88,170 |
|
| Total non-interest expenses |
1,075,780 |
1,019,710 |
|
| Income before income tax expense |
516,642 |
355,986 |
|
| Income tax expense |
197,774 |
131,563 |
|
| Net income |
$ 318,868 |
$ 224,423 |
|
| Basic earnings per share |
$ 0.31 |
$ 0.22 |
|
| Diluted earnings per share |
$ 0.31 |
$ 0.22 |
|
| CHINO COMMERCIAL BANCORP |
||||
| For the three months ended |
||||
| March 31 |
||||
| 2015 |
2014 |
|||
| KEY FINANCIAL RATIOS |
||||
| (unaudited) |
||||
| Annualized return on average equity |
11.54% |
9.17% |
||
| Annualized return on average assets |
0.96% |
0.75% |
||
| Net interest margin |
4.16% |
3.56% |
||
| Core efficiency ratio |
67.49% |
74.07% |
||
| Net chargeoffs to average loans |
-0.01% |
-0.01% |
||
| AVERAGE BALANCES |
||||
| (thousands, unaudited) |
||||
| Average assets |
$ 132,848 |
$ 119,901 |
||
| Average interest-earning assets |
$ 119,493 |
$ 106,850 |
||
| Average gross loans |
$ 86,538 |
$ 64,330 |
||
| Average deposits |
$ 109,349 |
$ 106,245 |
||
| Average equity |
$ 11,057 |
$ 9,793 |
||
| CREDIT QUALITY |
End of period |
||
| (unaudited) |
March 31, 2015 |
March 31, 2014 |
|
| Non-performing loans |
$ - |
$ 198,766 |
|
| Non-performing loans to total loans |
0.00% |
0.24% |
|
| Non-performing loans to total assets |
0.00% |
0.15% |
|
| Allowance for loan losses to total loans |
1.81% |
1.84% |
|
| Nonperforming assets as a percentage of total loans and OREO |
0.00% |
0.24% |
|
| Allowance for loan losses to non-performing loans |
n/a |
772.89% |
|
| OTHER PERIOD-END STATISTICS |
|||
| (unaudited) |
March 31, 2015 |
March 31, 2014 |
|
| Shareholders equity to total assets |
7.64% |
8.30% |
|
| Net Loans to deposits |
69.31% |
70.78% |
|
| Non-interest bearing deposits to total deposits |
53.74% |
56.01% |
|
| Total capital to total risk-weighted assets |
16.82% |
18.55% |
|
| Tier 1 capital to total risk-weighted assets |
16.23% |
17.54% |
|
| Tier 1 leverage ratio |
11.12% |
10.95% |
|
| Common equity tier 1 |
16.23% |
n/a |
|
SOURCE Chino Commercial Bancorp