CHINO, Calif., Jan. 19, 2009 (GLOBE NEWSWIRE) -- The Board of Directors of Chino Commercial Bancorp (OTCBB: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 three and twelve months ended December 31, 2008. For the full year ended December 31, 2008 the company posted a consolidated net income of $308,948 a reduction from net income of $742,609 for 2007. Net income per basic share for the year ended December 31, 2008 was $0.44 as compared to $1.02 per share for the year ended December 31, 2007 or a reduction of 56.9%. Net income per fully diluted share was $0.41 as compared to $0.94 per diluted share for fiscal year 2007.
Net income for the fourth quarter ended December 31, 2008 was $45,936 or $0.06 per diluted share, as compared to $130,144 or $0.17 per diluted share for the fourth quarter of 2007.
Dann H. Bowman, President and Chief Executive Officer stated, "Despite lower net earnings in 2008, we are very pleased with the current condition of the Bank and its prospects for the next year. During 2008 the Bank made significant provisions to Loan Loss Reserve which reduced earnings; however, at year-end the Bank had no delinquent loans, and continues to be in a strong financial condition.
In part, because of the solid financial condition of the Bank and its low number of problem loans, the Board of Directors chose not to apply for Government support through the TARP program. The Bank currently has significant capacity to make new loans and serve the needs of its customers, so taking TARP money would be using taxpayer resources that could be used elsewhere.
Looking forward, we are optimistic about 2009 and beyond. The financial condition of the Bank is strong, and loan quality is good; and we see many opportunities for growth and expansion over the next several years."
Financial Condition
Total deposits increased by 0.9% to $71.0 million at December 31, 2008 a slight increase from $70.4 million at December 31, 2007. Although we experienced a decrease in core deposits of 3.4%, from $68.2 million at December 31, 2007 to $65.9 million at December 31, 2008, our core deposits to total deposits remains very favorable at 92.9%.
At December 31, 2008, total assets were $83.4 million, a increase of $3.4 million or 4.3% from December 31, 2007.
Gross loans declined to $49.8 million at December 31, 2008 from $53.2 million at December 31, 2007 or a decrease of 6.4%, while total investments increased to $24.5 million from $11.3 million at December 31, 2007, a 116.2% increase.
Earnings
The Company posted net interest income of $3,425,701 for the year ended December 31, 2008 as compared to $4,170,211 for the year ended December 31, 2007. Average interest-earning assets were $68.3 million with average interest-bearing liabilities of $34.0 million yielding a net interest margin of 5.02% for the year ended December 31, 2008 as compared to average interest-bearing assets of $75.4 million with average interest-bearing liabilities of $31.6 million yielding a net interest margin of 5.53% for the year ended December 31, 2007. The 51 basis points decrease in the net interest margin was primarily a result of the higher average balances in interest-bearing liabilities and the effect of downward re-pricing of the benchmark for Federal funds rate and related Prime rate.
The Bank posted net interest income of $799,650 for the three months ended December 31, 2008 as compared to $960,846 for the three months ended December 31, 2007. Average interest-earning assets were $71.4 million with average interest-bearing liabilities of $39.1 million yielding a net interest margin of 4.46% for the fourth quarter of 2008 as compared to average interest-bearing assets of $71.8 million with average interest-bearing liabilities of $34.9 million yielding a net interest margin of 5.31% for the three months ended December 31, 2007.
Non-interest income totaled $1,092,529 or an increase of 16.8% from $935,103 earned during the year ended December 31, 2007. Service charges on deposit accounts increased 18.5% to $950,257 due to higher volume of returned items activity.
Non-interest income for the quarter ended December 31, 2008 totaled $273,276 or a 14.9% increase from the fourth quarter of 2007. Service charges on deposit accounts similarly increased 17.3% to $241,512 due to increased of overdraft and return item charges.
General and administrative expenses were $879,843 for the three months ended December 31, 2008 or a decrease of 2.0% as compared to $897,515 for the three months ended December 31, 2007. General and administrative expenses were $3,573,902 for the year ended December 31, 2008 as compared to $3,714,375 for the year ended December 31, 2007. The largest component of general and administrative expenses was salary and benefits expense which totaled $479,931 for the three months ended December 31, 2008 as compared to $464,190 for the three months ended December 31, 2007. Salary and benefits expense were $1,924,635 for the year ended December 31, 2008 as compared to $1,904,215 for the year ended December 31, 2007. The increase in Salaries and benefits expenses for the year was reflective of salary increases, incentive compensation, and the increase in retirement plan accruals.
The consolidated Company's income tax expense was $37,149 for the three months ended December 31, 2008 as compared to $97,837 for the three months ended December 31, 2007. Income tax expenses were $163,842 for the year ended December 31, 2008 as compared to $468,909 for the year ended December 31, 2007. The effective income tax rate for 2008 and 2007 was approximately 35% and 39%, respectively.
The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about the Bank's plans, objectives, management's expectations, intentions, relationships, opportunities, and technology and market condition statements. When used in these presentations, the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," or words of similar meaning, or future or conditional verbs, such as "will," "would," "should," "could," or "may" are generally intended to identify forward-looking statements. These forward-looking statements are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Bank's control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the results discussed in these forward-looking statements for the reasons, among others, discussed in Bank's Annual Report on Form 10-KSB for the year ended December 31, 2007, which include: changes in general business and economic conditions may significantly affect the Bank's earnings; changes in level of market interest rates; changes in credit risks of lending activities and competitive factors; effective income tax rates, relationships with major customers, extent and timing of legislative and regulatory actions and reforms. The Bank is not obligated to update and does not undertake to update any of its forward-looking statements made herein.
CHINO COMMERCIAL BANCORP
CONSOLIDATED BALANCE SHEET
December 31, 2008 and December 31, 2007
December 31, December 31,
2008 2007
------------ ------------
(unaudited) (audited)
ASSETS:
Cash and due from banks $ 3,877,897 $ 3,487,933
Federal funds sold -- 7,440,000
------------ ------------
Cash and cash equivalents 3,877,897 10,927,933
Interest-bearing deposits in
other banks 12,498,000 99,000
Investment securities
available for sale 8,791,651 7,339,354
Investment securities held
to maturity (fair value
approximates $3,186,000 at
December 31, 2008 and
$3,880,000 at December 31,
2007) 3,167,401 3,873,251
------------ ------------
Total investments 24,457,052 11,311,605
------------ ------------
Loans
Construction 820,888 2,606,750
Real estate 38,206,584 39,726,301
Commercial 10,194,759 10,062,969
Installment 543,937 790,535
------------ ------------
Gross loans 49,766,168 53,186,555
Unearned fees and discounts (77,542) (87,389)
------------ ------------
Loans net of unearned fees
and discount 49,688,626 53,099,166
Allowance for loan losses (702,409) (725,211)
------------ ------------
Net loans 48,986,217 52,373,955
------------ ------------
Accrued interest receivable 313,428 326,990
Restricted stock 677,650 654,250
Fixed assets, net 1,980,476 2,085,203
Other real estate 653,131 --
Prepaid & other assets 2,447,295 2,268,909
------------ ------------
Total assets $ 83,393,146 $ 79,948,845
------------ ------------
LIABILITIES:
Deposits
Non-interest bearing $ 32,600,750 $ 42,270,696
Interest Bearing
NOW and money market 28,434,407 22,711,556
Savings 1,064,668 1,202,965
Time deposits less than
$100,000 3,842,310 2,054,915
Time deposits of $100,000
or greater 5,055,617 2,156,778
------------ ------------
Total deposits 70,997,752 70,396,910
------------ ------------
Accrued interest payable 56,061 63,962
Borrowings from Federal Home
Loan Bank 2,400,000 --
Accrued expenses & other
payables 665,580 509,389
Subordinated debentures 3,093,000 3,093,000
------------ ------------
Total liabilities 77,212,393 74,063,261
------------ ------------
STOCKHOLDERS' EQUITY
Common stock, authorized
10,000,000 shares with
no par value, issued and
outstanding 708,420 shares
and 704,278 shares at
December 31, 2008 and
December 31, 2007,
respectively. 2,599,673 2,639,462
Retained earnings 3,552,105 3,249,982
Accumulated other
comprehensive loss 28,975 (3,860)
------------ ------------
Total equity 6,180,753 5,885,584
------------ ------------
Total liabilities &
stockholders' equity $ 83,393,146 $ 79,948,845
============ ============
CHINO COMMERCIAL BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
For the three months For the year ended
ended December 31 December 31
2008 2007 2008 2007
--------- --------- --------- ---------
Interest income
Investment securities
and due from banks $ 148,104 $ 135,202 $ 489,168 $ 632,016
Interest on Federal
funds sold 15,868 69,497 82,700 450,192
Interest and fee
income on loans 907,322 1,050,301 3,827,135 4,064,036
--------- --------- --------- ---------
Total interest income 1,071,294 1,255,000 4,399,003 5,146,244
--------- --------- --------- ---------
Interest expense
Deposits 220,527 242,991 768,324 771,083
Interest on Federal
funds purchased 89 0 1,063 0
Interest on FHLB
borrowings 65 0 65 0
Other borrowings 50,963 51,163 203,850 204,950
--------- --------- --------- ---------
Total interest
expense 271,644 294,154 973,302 976,033
--------- --------- --------- ---------
Net interest income 799,650 960,846 3,425,701 4,170,211
--------- --------- --------- ---------
Provision for loan
losses 109,998 73,218 471,538 179,421
--------- --------- --------- ---------
Net interest income after
provision for loan
losses 689,652 887,628 2,954,163 3,990,790
--------- --------- --------- ---------
Non-interest income
Service charges on
deposit accounts 241,512 205,887 950,257 801,746
Other miscellaneous
fee income 8,843 7,415 35,974 33,824
Dividend income from
restricted stock 6,920 9,105 43,381 37,257
Income from bank owned
life insurance 16,001 15,461 62,917 62,276
--------- --------- --------- ---------
Total non-interest
income 273,276 237,868 1,092,529 935,103
--------- --------- --------- ---------
General and adminis-
trative expenses
Salaries and employee
benefits 479,931 464,190 1,924,635 1,904,215
Occupancy and
equipment 84,070 82,587 345,982 340,032
Data and item
processing 77,439 87,451 323,164 331,385
Advertising and
marketing 15,778 39,776 76,282 152,984
Legal and professional
fees 46,301 44,954 191,064 207,019
Regulatory Assessments 23,609 22,437 86,946 91,717
Insurance 7,746 8,048 31,639 30,734
Directors' fees and
expenses 19,657 19,401 77,375 79,034
Other expenses 125,312 128,671 516,815 577,255
--------- --------- --------- ---------
Total general &
administrative
expenses 879,843 897,515 3,573,902 3,714,375
--------- --------- --------- ---------
Income before income
tax expense 83,085 227,981 472,790 1,211,518
Income tax expense 37,149 97,837 163,842 468,909
--------- --------- --------- ---------
Net income $ 45,936 $ 130,144 $ 308,948 $ 742,609
========= ========= ========= =========
Basic earnings per
share $ 0.07 $ 0.18 $ 0.44 $ 1.02
========= ========= ========= =========
Diluted earnings per
share $ 0.06 $ 0.17 $ 0.41 $ 0.94
========= ========= ========= =========