CHINO, Calif., Oct. 23, 2006 (PRIMEZONE) -- The Board of Directors of Chino Commercial Bancorp, parent company of Chino Commercial Bank NA (OTCBB:CCBC) announced the results of operations for the Bank and the consolidated holding company for the three and nine months ended September 30, 2006.
For the three months ended September 30, 2006 the Bank reported net income of $275,022, a 12.8% increase over net income of $243,810 for the same quarter last year. Net income for the nine months ended September 30, 2006 was $817,195 or a 32.5% increase over net income of $616,507 for the nine months ended September 30, 2005. Dann H. Bowman, President and Chief Executive Officer stated, "We are very pleased with the continued earnings growth of the Bank for the third quarter and year-to-date. By opening the Ontario Branch we are expanding into new markets which are very promising and with the recent formation of the bank holding company we have greater financial flexibility for future growth and development."
On September 30, 2006, Total Assets were $86.6 million, a 1.8% reduction as compared with $88.2 million at September 30, 2005; and a 5.1% decline as compared with $91.3 million on December 31, 2005. Total Deposits similarly declined 3.3% to $78.4 million on September 30, 2006 as compared to $81.1 million on September 30, 2005, and a 6.7% reduction from $84.0 million at December 31, 2005.
Total Loans increased 27.8% to $51.5 million at September 30, 2006 as compared to $40.3 million at the same time last year; and increased 21% or $8.9 million over $42.5 million at December 31, 2005. On September 30, 2006, the Bank had only 2 delinquent loans over 30 days, totaling $545 thousand, and no non-accrual loans or other real estate owned.
Chino Commercial Bancorp is a bank holding company formed for the purpose of owning and operating Chino Commercial Bank NA. The acquisition of the Bank was completed on July 1, 2006. The consolidated statements for the three months ending September 30, 2006, includes one-time organizational expenses associated with the formation of the holding company, and represents the first quarter of consolidated operations since inception, and may not provide a meaningful comparison with the same quarter last year.
The consolidated earnings of the Bank and the newly formed bank holding company for the three months ending September 30, 2006 were $212,472 or $0.24 diluted earnings per share, a reduction of $31,338 or 12.8% from the Bank only earnings for the third quarter of 2005 of $243,810 or $0.28 per diluted share, after the payment of one-time organizational expenses of $70,130 associated with the formation of the holding company. The consolidated net earnings for the nine months ended September 30, 2006 was $745,645 or $0.85 per diluted share, an increase of $129,138 or 20.9% over the Bank only net earnings last year of $616,507 or $0.70 per diluted earnings per share.
Total consolidated assets as of September 30, 2006 were $86.6 million, a reduction of 1.8% as compared with $88.2 million for the Bank only as of September 30, 2005, and a 5.1% reduction from $91.3 million for the Bank only on December 31, 2005.
The increased earnings for the nine months ended September 30, 2006 were primarily due to an increase in the net interest margin of $546,022. The Bank posted net interest income of $3,443,782 for the nine months ended September 30, 2006, an increase of $546,022 or 18.84%, as compared to $2,897,760 for the same period last year. These increases in income were partially offset by an increase in general and administrative expenses of $291,313 resulting from increased Salary and benefits expense and Other expenses. The Bank posted net interest income of $1,179,899 for the three months ended September 30, 2006, an increase of $161,894 or 15.9%, as compared to $1,018,005 for the same quarter last year. This increase in income was partially offset by an increase in general and administrative expenses of $321,757 resulting from increases in salary and benefits expense, occupancy and data and item processing fees.
Average interest-earning assets were $85.4 million with average interest-bearing liabilities of $24.0 million, yielding a net interest margin of 5.38% for the nine months ended September 30, 2006 as compared to average interest-bearing assets of $76.3 million with average interest-bearing liabilities of $17.1 million, yielding a net interest margin of 5.08% for the nine months ended September 30, 2005. The increase in net interest margin coincides with the growth in the loan portfolio and the steady rise in yields on short term investments.
Average interest-earning assets were $86.2 million with average interest-bearing liabilities of $24.9 million yielding a net interest margin of 5.47% for the three months ended September 30, 2006 as compared to average interest-bearing assets of $81.4 million with average interest-bearing liabilities of $19.4 million yielding a net interest margin of 5.0% for the three months ended September 30, 2005.
General and administrative expenses were $2,503,521 for the nine months ended September 30, 2006 as compared to $2,212,208 for the nine months ended September 30, 2005. The largest component of general and administrative expenses was salary and benefits expense of $1,260,480 for the nine months ended September 30, 2006 as compared to $1,065,997 for the nine months ended September 30, 2005. Salary and benefits increased due to higher average full-time equivalent staff, salary increases, retirement accrual and accrued incentive compensation for the nine months ended September 30, 2006 as compared to the nine months ended September 30, 2005. Also increased were occupancy expenses, which increased $113,336 with the opening of the new Ontario Branch, as well as Item and Data Processing expenses, which increased $20,525 due primarily to an increase in the volume of operational activity.
General and administrative expenses were $856,144 for the three months ended September 30, 2006 as compared to $720,792 for the three months ended September 30, 2005. The largest component of general and administrative expenses was salary and benefits expense of $418,107 for the third quarter of 2006 as compared to $348,456 for the third quarter of 2005. Salary and benefits increased due to higher average full-time equivalent staff, salary increases, and accrued incentive compensation for the third quarter of 2006 as compared to third quarter of 2005. Also increased were occupancy, Audit and Professional and other expenses, which increased $65,051.
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 Bancorp. There can be no assurances that future developments affecting Chino Commercial Bancorp 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.
Contact: Dann H. Bowman, President and CEO or Sandra Pender, Vice President and CFO, Chino Commercial Bancorp. 14345 Pipeline Avenue, Chino, Ca. 91710, (909) 393-8880.
CHINO COMMERCIAL BANCORP
STATEMENTS OF FINANCIAL CONDITION
Consolidated Bank Bank
Bancorp Only Only
September 30, September 30, December 31,
2006 2006 2005
----------- ----------- -----------
(unaudited) (unaudited)
ASSETS:
Cash and Due from Banks $ 4,396,426 $ 4,396,426 $ 5,328,842
Federal Funds Sold 4,775,000 4,775,000 11,370,000
----------- ----------- -----------
Cash and Cash equivalents 9,171,426 9,171,426 16,698,842
Interest-bearing deposits at
banks 3,225,000 3,225,000 6,030,000
Investment Securities
available for sale 13,243,674 13,243,674 16,311,377
Investment Securities held to
maturity (fair value
approximates $4,796,375 at
June 30, 2006 and $5,764,134
at December 31, 2005) 5,044,865 5,044,865 5,850,687
Federal Reserve Bank stock,
at cost 159,600 159,600 159,600
Federal Home Loan Bank stock,
at cost 412,200 412,200 362,600
Pacific Coast Bankers' Bank
stock, at cost 50,000 50,000 50,000
----------- ----------- -----------
Total investments 22,135,339 22,135,339 28,764,264
----------- ----------- -----------
Loans
Construction 4,175,191 4,175,191 2,790,712
Real estate 35,407,896 35,407,896 30,444,344
Commercial 11,294,078 11,294,078 8,295,573
Farm/Agriculture 0 0 330,920
Installment 574,024 574,024 633,504
Unearned fees and discounts (137,405) (137,405) (144,106)
Allowance for loan losses (617,144) (617,144) (544,140)
----------- ----------- -----------
Total Loans 50,696,640 50,696,640 41,806,807
----------- ----------- -----------
Fixed Assets, net 2,266,770 2,266,770 1,936,168
Accrued Interest Receivable 388,877 388,877 311,849
Prepaid & Other Assets 1,963,069 1,919,387 1,811,979
----------- ----------- -----------
Total Assets $86,622,121 $86,578,439 $91,329,909
=========== =========== ===========
LIABILITIES:
Deposits
Non-interest Bearing $53,283,798 $53,399,587 $62,610,963
Interest Bearing
Money market 20,110,401 20,110,401 16,793,824
Savings 1,088,536 1,088,536 913,249
Time deposits of $100,000
or greater, due in one
year 2,427,596 2,427,596 2,216,104
Time deposits less than
$100,000, due in one year 1,529,060 1,529,060 1,487,803
----------- ----------- -----------
Total Deposits 78,439,391 78,555,180 84,021,943
----------- ----------- -----------
Accrued Interest Payable 28,259 28,259 28,858
Accrued Expenses & Other
Payables 582,671 559,459 588,068
----------- ----------- -----------
Total Liabilities 79,050,321 79,142,898 84,638,869
----------- ----------- -----------
STOCKHOLDERS' EQUITY
Common Stock, authorized
10,000,000 shares with no
par value, issued
and outstanding 830,453
shares and 818,453 shares
at September 30, 2006 and
December 31, 2005,
respectively 2,753,205 2,728,230
Additional paid-in capital 5,420,812 2,623,798 2,590,600
Retained earnings 2,252,463 2,160,013 1,497,818
Accumulated other
comprehensive loss (101,475) (101,475) (122,608)
----------- ----------- -----------
Total Equity 7,571,800 7,435,541 6,694,040
----------- ----------- -----------
Total Liabilities & Equity $86,622,121 $86,578,439 $91,332,909
=========== =========== ===========
CHINO COMMERCIAL BANK, N.A.
STATEMENTS OF OPERATIONS
(unaudited)
For the For the
three months ending nine months ending
September 30, September 30,
2006 2005 2006 2005
---------- ---------- ---------- ----------
Interest Income
Interest Income -
Securities $ 274,709 $ 254,125 $ 871,987 $ 708,432
Interest Income - Fed
Funds 75,886 128,302 262,462 263,007
Interest and fee income
on Loans 954,770 706,492 2,630,983 2,106,311
---------- ---------- ---------- ----------
Total Interest Income 1,305,365 1,088,919 3,765,432 3,077,750
---------- ---------- ---------- ----------
Interest Expense
Interest Expense -
Deposits 125,166 70,914 320,750 179,990
Interest Expense - Other
Borrowings 300 900
---------- ---------- ---------- ----------
Total Interest Expense 125,466 70,914 321,650 179,990
---------- ---------- ---------- ----------
Net interest income 1,179,899 1,018,005 3,443,782 2,897,760
---------- ---------- ---------- ----------
Provision for loan losses 44,754 41,175 73,004 94,593
---------- ---------- ---------- ----------
Net interest income
after provision for
loan losses 1,135,145 976,830 3,370,778 2,803,167
---------- ---------- ---------- ----------
Non-interest income
Service Charges on
Deposit Accounts 149,386 128,141 413,260 346,676
Other miscellaneous fee
income 7,161 2,005 15,082 6,167
Income from Mortgage
Banking (1,740) 0 0 17,697
Income from Bank Owned
Life Insurance 15,402 16,514 45,587 47,987
---------- ---------- ---------- ----------
Total Non-interest
income 170,209 146,660 473,929 418,527
---------- ---------- ---------- ----------
General & Administrative
Expenses
Salaries & Benefits 418,107 348,456 1,260,480 1,065,997
Occupancy & Equipment 105,556 67,061 307,507 194,173
Data & Item Processing 60,536 57,940 183,247 162,722
Advertising & Marketing 30,700 33,991 70,678 93,790
Audit & Professional
fees 46,267 37,380 135,630 132,651
Insurance 6,217 6,037 18,557 18,001
Directors' fees and
expenses 20,420 19,255 64,778 57,062
Other expenses 168,341 150,672 462,644 487,812
---------- ---------- ---------- ----------
Total general &
administrative
expenses 856,144 720,792 2,503,521 2,212,208
---------- ---------- ---------- ----------
Income before income tax
expense 449,210 402,698 1,341,186 1,009,486
Income tax expense 174,188 156,888 523,991 392,979
---------- ---------- ---------- ----------
Total income $ 275,022 $ 245,810 $ 817,195 $ 616,507
========== ========== ========== ==========
CHINO COMMERCIAL BANCORP
STATEMENTS OF OPERATIONS
(unaudited)
For the For the
three months ending nine months ending
September 30, September 30,
2006 2005 2006 2005
---------- ---------- ---------- ----------
Interest Income
Interest Income -
Securities $ 274,709 $ 254,125 $ 871,987 $ 708,432
Interest Income - Fed
Funds 75,886 128,302 262,462 263,007
Interest and fee income
on Loans 954,770 706,492 2,630,983 2,106,311
---------- ---------- ---------- ----------
Total Interest Income 1,305,365 1,088,919 3,765,432 3,077,750
---------- ---------- ---------- ----------
Interest Expense
Interest Expense -
Deposits 125,166 70,914 320,750 179,990
Interest Expense - Other
Borrowings 1,060 1,660
---------- ---------- ---------- ----------
Total Interest Expense 126,226 70,914 322,410 179,990
---------- ---------- ---------- ----------
Net interest income 1,179,139 1,018,005 3,443,022 2,897,760
---------- ---------- ---------- ----------
Provision for loan losses 44,754 41,175 73,004 94,593
---------- ---------- ---------- ----------
Net interest income
after provision for
loan losses 1,134,385 976,830 3,370,018 2,803,167
---------- ---------- ---------- ----------
Non-interest income
Service Charges on
Deposit Accounts 149,386 128,141 413,260 346,676
Other miscellaneous fee
income 7,161 2,005 15,082 6,167
Income from Mortgage
Banking (1,740) 0 0 17,697
Income from Bank Owned
Life Insurance 15,402 16,514 45,587 47,987
---------- ---------- ---------- ----------
Total Non-interest
income 170,209 146,660 473,929 418,527
---------- ---------- ---------- ----------
General & Administrative
Expenses
Salaries & Benefits 432,901 348,456 1,275,274 1,065,997
Occupancy & Equipment 105,556 67,061 307,509 194,173
Data & Item Processing 60,536 57,940 183,247 162,722
Advertising & Marketing 30,700 33,991 70,678 93,790
Audit & Professional
fees 116,397 37,380 205,760 132,651
Insurance 6,217 6,037 18,557 18,001
Directors' fees and
expenses 21,950 19,255 66,306 57,062
Other expenses 187,359 150,672 481,662 487,812
---------- ---------- ---------- ----------
Total general &
administrative
expenses 961,616 720,792 2,608,993 2,212,208
---------- ---------- ---------- ----------
Income before income tax
expense 342,978 402,698 1,234,954 1,009,486
Income tax expense 130,506 156,888 480,309 392,979
---------- ---------- ---------- ----------
Total income $ 212,472 $ 245,810 $ 754,645 $ 616,507
========== ========== ========== ==========
Basic Earnings per share $ 0.26 $ 0.30 $ 0.92 $ 0.75
========== ========== ========== ==========
Diluted Earnings per
share $ 0.24 $ 0.28 $ 0.85 $ 0.70
========== ========== ========== ==========