Chino Commercial Bancorp Reports Second Quarter Net Income

Jul 17, 2015, 08:00 ET from Chino Commercial Bancorp

CHINO, Calif., July 17, 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 second quarter ended June 30, 2015, of $353,552, or $0.34 per basic and diluted share, as compared with net income of $363,551 or $0.35 per basic and diluted share for the same quarter in 2014.  The cause for the reduction was the recognition of extraordinary income of $130,000 through the reversal of Loan Loss Reserve in 2014, which did not reoccur in 2015.  Net income excluding extraordinary items for the second quarter was $340,752 or an increase of $57,814 or 20% over $282,938 for the same quarter last year.  

Year-to-date earnings for the six months ended June 30, 2015 were $672,420 or an increase of 14.4% over net income of $587,972 for the same period last year. Year-to-date net income per basic and diluted share as of June 30, 2015 was $0.66 as compared with $0.57 for the same period last year, or an increase of 14.4%.  Net earnings year-to-date of $0.66 represents a return on average equity of 12.02%.

Dann H. Bowman, President and Chief Executive Officer, stated, "The second quarter of 2015 marks a new record for the Company with total Deposits, total Loans and total Revenue all reaching new highs.  The competitive market for the Bank is very good and as the economy in Southern California continues to improve we are optimistic regarding the potential for further expansion in our markets. 

We are also pleased to report that the Bank's loan quality is also very strong, with only one being delinquent at quarter-end, and the Bank having no non-performing Loans and no OREO.  We have also been very fortunate in having no credit losses year-to-date."

Financial Condition
At June 30, 2015, total assets were $145.9 million, an increase of $15.7 million or 12.1% over $130.1 million at December 31, 2014. This is a direct result of the growth in the Company's deposits which increased by 4.5% or $5.1 million to $120.6 million at June 30, 2015, as compared with $115.4 million at December 31, 2014. At June 30, 2015, the Company's non-interest bearing deposits was 55.7% of total deposits and its core deposits was 94.7% of the total deposits.

Loans increased by $2.7 million or 3.3% to $86.2 million during the first half of 2015 as compared with $83.5 million on December 31, 2014.  The Bank's loan quality remained consistent during the second quarter as nonperforming assets and OREO remained at zero at June 30, 2015 and December 31, 2014, respectively.

Earnings
The Company posted net interest income of $1,247,489 for the quarter ended June 30, 2015 as compared to $1,069,079 for the quarter ended June 30, 2014.  For the six months ended June 30, 2015, the Company posted net interest income of $2.5 million compared to $2.0 million for the first six months of 2014, an increase of $466,577 or 23.3%.

Average interest-earning assets were $131.5 million with average interest-bearing liabilities of $64.1 million, yielding a net interest margin of 3.85% for the second quarter of 2015; as compared to the average interest-earning assets of $112.5 million with average interest-bearing liabilities of $54.6 million, yielding a net interest margin of 3.85% for the second quarter of 2014.

Non-interest income totaled $389,686 for the second quarter of 2015, or a decrease of 2.4% from $399,385 during the second quarter of 2014. Service charges on deposit accounts decreased 12.3% to $301,395 due to a decrease in income from returned items and overdraft charges.  Dividend income from restricted stock increased to $43,105 during the second quarter of 2015, from $9,020 for the second quarter of 2014.  This increase is mostly attributed to a 103.3% increase in the restricted stock investment as well as a special dividend received by the Company during the second quarter of 2015 on this investment.

General and administrative expenses were $1,061,226 for the three months ended June 30, 2015, as compared to $1,006,265 for the second quarter of 2014. The largest component of general and administrative expenses was salary and benefits expense of $650,690 for the second quarter of 2015, as compared to $575,021 for the three months ended June 30, 2014. Regulatory assessments increased to $30,683 or 1.9% in the second quarter of 2015, compared to $30,121 in the second quarter of 2014. Legal, Audit, and Other Professional fees decreased by 16.4% to $37,390 in the second quarter of 2015, from $44,703 in the quarter ended June 30, 2014 due to an overall decrease in audit fees.

Income tax expense was $220,057 for the three months ended June 30, 2015, as compared to $228,648 for the three months ended June 30, 2014. The effective income tax rate for the second quarter of 2015 and 2014 is approximately 38.4% and 38.6%, 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.

 

CHINO COMMERCIAL BANCORP

CONSOLIDATED BALANCE SHEET

June 30, 2015 and December 31, 2014



June 30, 2015


December 31, 2014


(unaudited)


(audited)

ASSETS:




Cash and due from banks

$   16,756,088


$             5,529,963

Total cash and cash equivalents

16,756,088


5,529,963





Interest-bearing deposits in other banks

9,872,000


$           19,048,000

Investment securities available for sale

1,516,619


1,637,579

Investment securities held to maturity (fair value approximates $21,810,000 at June 30, 2015 and $11,493,000 at December 31, 2014)

21,762,562


11,370,815

  Total investments

33,151,181


32,056,394

Loans




   Construction

1,079,498


613,802

   Real estate

64,387,788


65,070,148

   Commercial

20,433,885


17,437,492

   Installment

305,917


339,519

      Gross loans

86,207,088


83,460,961

   Unearned fees and discounts

(229,631)


(211,142)

      Loans net of unearned fees and discount

85,977,457


83,249,819

   Allowance for loan losses

(1,555,931)


(1,536,241)

       Net loans

84,421,526


81,713,578





Fixed assets, net

5,890,717


5,971,324

Accrued interest receivable

346,027


312,508

Stock investments, restricted, at cost

1,457,400


716,700

Bank-owned life insurance

3,131,737


3,080,794

Other assets

723,867


751,466

Total assets

$ 145,878,543


$         130,132,727





LIABILITIES:




Deposits




Non-interest bearing 

$   67,180,638


$           64,657,125

Interest bearing




  NOW and money market

39,314,351


35,665,321

  Savings

3,656,309


4,119,507

  Time deposits less than $100,000

4,083,165


4,367,455

  Time deposits of $100,000 or greater

6,354,386


6,631,526

  Total deposits

120,588,849


115,440,934





Accrued interest payable

24,298


26,066

Borrowings from Federal Home Loan Bank (FHLB)

10,000,000


-

Accrued expenses & other payables

712,077


772,134

Subordinated notes payable to subsidiary trust

3,093,000


3,093,000

Total liabilities

134,418,224


119,332,134





SHAREHOLDERS' EQUITY




Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 1,026,349 shares at June 30, 2015 and 916,550 December 31, 2014, respectively.

 

6,089,466


 

4,579,730

Retained earnings

5,345,627


6,185,281

Accumulated other comprehensive income

25,226


35,582

Total shareholders' equity

11,460,319


10,800,593

Total liabilities & shareholders' equity

$ 145,878,543


$         130,132,727

 

CHINO COMMERCIAL BANCORP

CONSOLIDATED STATEMENTS OF NET INCOME

(unaudited)


For the three months ended


For the year ended


June 30


June 30


2015


2014


2015


2014

Interest income








   Interest and fee income on loans 

$ 1,202,183


$ 1,029,558


$ 2,387,628


$ 1,943,905

   Interest on federal funds sold and FRB deposits

10,102


11,353


11,214


21,440

   Interest on time deposits in banks

22,994


33,616


53,189


63,228

   Interest on investment securities

89,933


63,749


170,579


116,135

    Total interest income

1,325,212


1,138,276


2,622,610


2,144,708









Interest Expense








 Interest on deposits

57,621


54,691


113,439


109,668

 Other borrowings

20,102


14,506


36,470


28,916

   Total interest expense

77,723


69,197


149,909


138,584

  Net interest income

1,247,489


1,069,079


2,472,701


2,006,124

Provision for loan losses

2,340


(130,000)


3,798


(129,089)









      Net interest income after provision for loan losses

1,245,149


1,199,079


2,468,903


2,135,213









Non-interest income








   Service charges on deposit accounts

301,395


343,529


607,397


694,905

   Other miscellaneous income

19,661


20,852


38,535


68,904

   Dividend income from restricted stock

43,105


9,020


61,479


23,338

   Income from bank-owned life insurance

25,525


25,984


50,943


51,797

     Total non-interest income

389,686


399,385


758,354


838,944









Non-interest expenses








   Salaries and employee benefits

650,690


575,021


1,314,229


1,162,417

   Occupancy and equipment

99,280


102,528


202,281


202,330

   Data and item processing

96,081


95,004


189,419


191,986

   Advertising and marketing

14,757


20,263


26,285


44,006

   Legal and professional fees

37,390


44,703


82,626


105,017

   Regulatory assessments

30,683


30,121


61,202


58,342

   Insurance

8,471


8,431


16,336


16,844

   Directors' fees and expenses

27,663


28,172


54,080


54,841

   Other expenses

96,211


102,022


190,548


190,191

     Total non-interest expenses

1,061,226


1,006,265


2,137,006


2,025,974

Income before income tax expense

573,609


592,199


1,090,251


948,183

Income tax expense

220,057


228,648


417,831


360,211

   Net income

$   353,552


$   363,551


$   672,420


$   587,972









Basic earnings per share  

$        0.34


$        0.35


$        0.66


$        0.57

Diluted earnings per share 

$        0.34


$        0.35


$        0.66


$        0.57

 

CHINO COMMERCIAL BANCORP








For the three months ended


For the year ended



June 30


June 30



2015


2014


2015


2014

KEY FINANCIAL RATIOS









(unaudited)









Annualized return on average equity


12.49%


14.50%


12.02%


11.87%

Annualized return on average assets


0.97%


1.16%


0.97%


0.96%

Net interest margin


3.85%


3.85%


3.97%


3.69%

Core efficiency ratio


64.82%


68.53%


66.14%


71.21%

Net chargeoffs/(recoveries) to average loans


-0.01%


-0.21%


-0.02%


-0.23%










AVERAGE BALANCES









(thousands, unaudited)









Average assets


$ 145,442


$ 125,519


$ 139,180


$ 122,725

Average interest-earning assets


$ 131,473


$ 112,537


$ 125,516


$ 109,709

Average gross loans


$   87,189


$   64,079


$   86,865


$   64,204

Average deposits


$ 115,698


$ 111,594


$ 112,541


$ 108,934

Average equity


$   11,321


$   10,027


$   11,190


$     9,911

 

CREDIT QUALITY


End of period

(unaudited)


June 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


1.80%


1.84%

Nonperforming assets as a percentage of total loans and OREO


0.00%


0.00%

Allowance for loan losses to non-performing loans


n/a


n/a






OTHER PERIOD-END STATISTICS





(unaudited)


June 30, 2015


December 31, 2014

Shareholders equity to total assets


7.86%


8.30%

Net Loans to deposits


70.01%


70.78%

Non-interest bearing deposits to total deposits


55.71%


56.01%

Total capital to total risk-weighted assets


16.80%


16.72%

Tier 1 capital to total risk-weighted assets


16.31%


16.01%

Tier 1 leverage ratio


10.48%


11.18%

Common equity tier 1


16.31%


n/a

 

 

SOURCE Chino Commercial Bancorp



RELATED LINKS

http//:www.chinocommercialbank.com