CHINO, Calif., Feb. 4, 2002 (PRIMEZONE) -- The Board of Directors of Chino Commercial Bank, N.A. (OTCBB:CKNA) announced the results of operations for the fiscal year 2001, which reflected an increase in assets of 92.2% to $26.2 million. Dann H. Bowman, President and Chief Executive Officer stated, "The tremendous community support has allowed the Bank to continue to grow very rapidly, even during these challenging economic times. In addition to the growth of assets, we are extremely pleased with the Bank's asset quality and the high percentage of core deposits, specifically non-interest bearing deposits which exceeded 64% of the $20.0 million in deposits at December 31, 2001."
Mr. Bowman further stated, "Our challenge in 2001 was sustaining revenue during a year which saw interest rates decline further and faster than anyone expected. With Fed funds declining from 6.50% to 1.75% in only 11 months, the Bank was challenged to increase earning assets at a pace faster than rates were declining. That reduction in interest rates significantly impacted the yield on earning assets causing the interest rate margin to decline to 5.40% at December 31, 2001 as compared with 6.72% at December 31, 2000."
Due substantially to the decline in the net interest margin and the Bank's loan growth of 575%, for which the Bank provided an increase in the loan loss reserves of $92,500, the Bank reported a year-to-date loss as of December 31, 2001 of $228,831 or $(.42) per share compared to a four month loss as of December 31, 2000 of $218,540 or $(.40) per share. The net loss for the three months ending December 31, 2001 was $54,714 or $(.10) per share for the fourth quarter compared to a loss of $164,037 for the three months ending December 31, 2000. The Bank began operations on September 1, 2000.
The Bank posted net interest income of $327,516 for the three months ended December 31, 2001 as compared to $174,128 for the three months ended December 31, 2000. Average interest-earning assets were $24.1 million with average interest-bearing liabilities of $8.5 million yielding a net interest margin of 5.44% for the fourth quarter of 2001 as compared to average interest-bearing assets of $10.3 million with average interest-bearing liabilities of $2.2 million yielding a net interest margin of 6.82% for the three months ended December 31, 2000. Net interest income was $1.1 million for the year ending December 31, 2001 as compared to $205,396 for the four months ending December 31, 2000. Average interest-earning assets were $20.6 million with average interest-bearing liabilities of $6.4 million yielding a net interest margin of 5.40% for the year ending December 31, 2001 as compared to average interest-bearing assets of $9.2 million with average interest-bearing liabilities of $1.7 million yielding a net interest margin of 6.72% for the four months ended December 31, 2000.
General and administrative expenses were $410,691 for the three months ended December 31, 2001 as compared to $325,101 for the three months ended December 31, 2000. Year-to-date general and administrative expenses were $1,365,105 for the period ending December 31, 2001 as compared to $409,581 for the four months ending December 31, 2000. The largest component of general and administrative expenses was salary and benefits expense of $193,059 for the fourth quarter of 2001 as compared to $153,513 for the fourth quarter of 2000. Year-to-date salary and benefit expense was $587,800 for the year ending 2001 compared to $198,032 for the four months ending December 31, 2000. Full-time equivalent staff increased from nine employees to thirteen employees creating the increase in salary and benefit expense.
Forward-Looking Statements
The statements contained in this release that are not historical facts are forward-looking statements based upon management's current expectations and beliefs concerning future developments and their potential effect on Chino Commercial Bank. There can be no assurances that future developments affecting Chino Commercial Bank will be the same as those anticipated by management.
Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties. These include, but are not limited to, the following risks; (1)changes in performance of the financial markets; (2)changes in the demand for and market acceptance of Chino Commercial Bank's products and services; (3)changes in general economic conditions including interest rates, presence of competitors with greater financial resources, and the impact of competitive products and pricing; (4)the effect of Chino Commercial Bank's policies; (5)the continued availability of adequate funding sources.
CHINO COMMERCIAL BANK
STATEMENT OF OPERATIONS
For the three months ending For the year ending
December 31, 2001 December 31,
2001 2000 (1) 2001 2000 (1)
---------- ---------- ---------- ----------
Interest Income
Interest Income
- Securities $ 161,628 23,064 $ 674,376 25,346
Interest Income
- Fed Funds 17,620 131,828 170,542 161,084
Interest and fee
income on Loans 213,173 42,693 497,512 43,985
---------- ---------- ---------- ----------
Total Interest
Income 392,421 197,585 1,342,430 230,415
---------- ---------- ---------- ----------
Interest Expense
Interest Expense
- Deposits 50,483 23,457 191,929 25,019
Interest Expense
- Borrowings 14,422 -- 41,090 --
---------- ---------- ---------- ----------
Total Interest
Expense 64,905 23,457 233,019 25,019
---------- ---------- ---------- ----------
Total net
interest income 327,516 174,128 1,109,411 205,396
---------- ---------- ---------- ----------
Provision for
loan losses 19,350 15,200 94,900 16,700
---------- ---------- ---------- ----------
Total net interest
income after
provision for
loan losses 308,166 158,928 1,014,511 188,696
---------- ---------- ---------- ----------
Non-interest income
Service Charges on
Deposit Accounts 30,871 1,562 76,172 1,611
Other miscellaneous
fee income 856 574 2,289 734
Gain on the Sale
of Securities 14,144 -- 41,285 --
Income from
Mortgage Banking 1,927 1,927
Other income 13 -- 90 --
---------- ---------- ---------- ----------
Total Non-interest
income 47,811 2,136 121,763 2,345
---------- ---------- ---------- ----------
General &
Administrative Expenses
Salaries & Benefits 193,059 153,513 587,800 198,032
Occupancy & Equipment 62,592 49,349 231,145 63,797
Data & Item
Processing 43,813 26,004 132,556 31,320
Advertising
& Marketing 15,671 18,390 53,840 20,964
Audit &
Professional fees 20,496 13,264 87,988 18,015
Insurance 3,060 2,565 10,920 3,538
Other expenses 72,000 62,016 260,856 73,915
---------- ---------- ---------- ----------
Total general &
administrative
expenses 410,691 325,101 1,365,105 409,581
---------- ---------- ---------- ----------
Income tax
expense (benefit) -- -- -- --
========== ========== ========== ==========
Total income
(loss) $ (54,714) (164,037) $ (228,831) (218,540)
========== ========== ========== ==========
Basic loss per share $ (0.10) (0.30) $ (0.42) (0.40)
========== ========== ========== ==========
Diluted loss per
Share $ (0.10) (0.30) $ (0.41) (0.39)
========== ========== ========== ==========
(1) Chino Commercial Bank was in organization until September 1, 2000
when the Bank opened for business.
CHINO COMMERCIAL BANK
STATEMENT OF FINANCIAL CONDITION
December 31, December 31,
2001 2000
------------ ------------
ASSETS:
Cash and Due from Banks $ 2,177,720 1,162,083
Federal Funds Sold -- 8,790,000
------------ ------------
Cash and Cash equivalents 2,177,720 9,952,083
Interest-bearing deposits at banks 893,000 --
Investment Securities available for sale 8,542,280 1,119,409
Investment Securities held to maturity
(fair value approximates $2,343,770) 2,359,087
Federal Reserve Bank stock, at cost 142,550 159,100
Federal Home Loan Bank stock, at cost 107,800 500
Pacific Coast Bankers'
Bank stock, at cost 50,000 50,000
Loans held for sale 135,000
Loans
Construction 1,781,829 93,459
Real estate 4,497,742 602,494
Commercial 3,952,089 897,367
Installment 868,671 76,136
Unearned fees and discounts 30,157 --
Allowance for loan losses (111,600) (16,700)
------------ ------------
Total Loans 11,018,888 1,652,756
------------ ------------
Fixed Assets, net 523,848 588,549
Accrued Interest Receivable 130,555 29,784
Prepaid & Other Assets 69,700 52,646
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Total Assets $ 26,150,428 13,604,827
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LIABILITIES:
Deposits
Non-interest Bearing $ 12,814,625 5,617,940
Interest Bearing
Money market 5,187,852 2,471,755
Savings 213,980 148,105
Time deposits of $100,000 or
greater, due in one year 910,428 200,000
Time deposits less than $100,000,
due in one year 873,665 239,146
------------ ------------
Total Deposits 20,000,550 8,676,946
------------ ------------
Fed Funds Purchased 160,000
Federal Home Loan Bank Advance 1,250,000 --
Accrued Interest Payable 31,099 4,600
Accrued Expenses & Other Payables 58,643 56,709
------------ ------------
Total Liabilities 21,500,292 8,738,255
------------ ------------
STOCKHOLDERS' EQUITY
Common Stock, authorized 10,000,000
shares with a par value of $5 per
share; issued and outstanding 545,646
and 543,982 at December 31, 2001 and
December 31, 2000, respectively 2,728,230 2,719,910
Additional paid-in capital 2,590,893 2,582,573
Accumulated deficit (672,207) (443,376)
Accumlated other comprehensive income 3,220 7,465
------------ ------------
Total Equity 4,650,136 4,866,572
------------ ------------
Total Liabilities & Equity $ 26,150,428 13,604,827
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