CHINO, Calif., April 20, 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 first quarter ended March 31, 2009 with net earnings of $119,269, a 159.7% increase from $45,936 for the fourth quarter of 2008, and a 187.6% increase from net income of $41,471 for the first quarter of last year. Net income per basic share for the first quarter was $0.17 as compared to $0.07 per share for the fourth quarter ended December 31, 2008, and $0.06 for the first quarter last year.
Dann H. Bowman, President and Chief Executive Officer stated, "We are very pleased with the strong financial performance of the Bank during the first quarter. Not only are earnings up substantially, but credit quality remains very good, with the Bank reporting no loan delinquency for the quarter-end. During this time when many banks have to cut back on lending, we have significant capacity to continue making loans and support our customers. Though the economy is slowing, we see great potential in the small businesses and professionals we serve, and look forward to a very good year."
Financial Condition
At March 31, 2009, total assets were $88.9 million, an increase of $5.5 million or 6.6% from December 31, 2008, and an increase of $16.7 million or 23.1% from March 31, 2008. This is a direct result of the growth of the Bank's deposits.
Total deposits increased by 10.8% to $78.6 million at March 31, 2009, an increase from $71.0 million at December 31, 2008. Total deposits increased 25.5% from March 31, 2008's balance of $62.7 million. At March 31, 2009, the Company's core deposits represent 88.5% of the total deposits.
Loans decreased $732,503 during the first quarter from December 31, 2008 with a balance at March 31, 2009 of $48.0 million. Comparing the balances of March 31, 2008, the Company's loans decreased $4.2 million or 8.0% during the twelve month period. The decline was primarily in real estate secured lending.
Earnings
The Company posted net interest income of $822,299 for the quarter ended March 31, 2009 as compared to $884,585 the quarter ended March 31, 2008, due to decreased average balances in loans and increased average balances in interest-bearing deposits. Average interest- earning assets were $75.0 million with average interest-bearing liabilities of $44.4 million yielding a net interest margin of 4.45% for the first quarter of 2009 as compared to the average interest-earning assets of $67.2 million with average interest-bearing liabilities of $32.6 million yielding a net interest margin of 5.29% for the first quarter of 2008.
Non-interest income totaled $247,452 for the first quarter of 2009, or a decrease of 6.4% from $264,387 earned during the first quarter of 2008. Service charges on deposit accounts decreased 8.4% to $212,961 due to decreased overdraft and return item charges.
The provision for loan losses decreased $218,480 to $16,151 or 93.1% in the first quarter of 2009, compared to $234,631 in the first quarter of 2008.
General and administrative expenses were $870,574 for the three months ended March 31, 2009 as compared to $862,748 for the first quarter of 2008. The largest component of general and administrative expenses was salary and benefits expense of $488,695 for the first quarter of 2009 as compared to $477,792 for the three months ended March 31, 2008. Advertising and marketing expenses decreased by $11,955 or 43.0% for the comparable three-month period. Other expenses increased by $18,355 for the comparable three-month period due to expenses of other real estate in 2009 that did not exist in 2008.
Income tax expense was $63,757 for the three months ended March 31, 2009 as compared to $10,122 for the three months ended March 31, 2008. The effective income tax rate for 2009 and 2008 is approximately 39%.
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, 2009 and December 31, 2008
March 31, 2009 December 31, 2008
-------------- -----------------
(unaudited) (audited)
ASSETS:
Cash and due from banks $ 5,519,296 $ 3,877,897
Federal funds sold 0 0
-------------- --------------
Cash and cash equivalents 5,519,296 3,877,897
Interest-bearing deposits in
other banks 17,460,729 12,498,000
Investment securities
available for sale 8,621,663 8,791,651
Investment securities held to
maturity (fair value
approximates $3,059,000 at
March 31, 2009 and
$3,186,000 at December 31,
2008) 3,012,332 3,167,401
-------------- --------------
Total investments 29,094,724 24,457,052
-------------- --------------
Loans
Construction 0 820,888
Real estate 39,500,274 37,794,240
Commercial 8,933,130 10,607,103
Installment 600,261 543,937
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Gross loans 49,033,665 49,766,168
Unearned fees and discounts (68,482) (77,542)
-------------- --------------
Loans net of unearned fees
and discount 48,965,183 49,688,626
Allowance for loan losses (718,762) (702,409)
-------------- --------------
Net loans 48,246,421 48,986,217
-------------- --------------
Accrued interest receivable 346,829 313,428
Restricted stock 677,650 677,650
Fixed assets, net 1,941,203 1,980,476
Other real estate 588,207 653,131
Prepaid & other assets 2,441,550 2,447,295
-------------- --------------
Total assets $ 88,855,880 $ 83,393,146
============== ==============
LIABILITIES:
Deposits
Non-interest bearing $ 35,170,219 $ 32,600,750
Interest Bearing
NOW and money market 29,201,760 28,434,407
Savings 969,802 1,064,668
Time deposits less than
$100,000 4,233,354 3,842,310
Time deposits of $100,000
or greater 9,065,348 5,055,617
-------------- --------------
Total deposits 78,640,483 70,997,752
-------------- --------------
Accrued interest payable 93,715 56,061
Borrowings from Federal Home
Loan Bank 0 2,400,000
Accrued expenses & other
payables 769,459 665,580
Subordinated debentures 3,093,000 3,093,000
-------------- --------------
Total liabilities 82,596,657 77,212,393
-------------- --------------
STOCKHOLDERS' EQUITY
Common stock, authorized
10,000,000 shares with no
par value, issued and
outstanding 703,065 shares
and 704,278 shares at
March 31, 2009 and
December 31, 2008,
respectively. 2,559,146 2,617,542
Retained earnings 3,653,505 3,534,236
Accumulated other
comprehensive loss 46,572 28,975
-------------- --------------
Total equity 6,259,223 6,180,753
-------------- --------------
Total liabilities &
stockholders' equity $ 88,855,880 $ 83,393,146
============== ==============
The accompanying notes are an integral part
of these consolidated financial statements
CHINO COMMERCIAL BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
For the quarter ended March 31,
2009 2008
------------ ------------
Interest income
Investment securities and due from
banks $ 217,282 $ 125,801
Interest on Federal funds sold 34 24,991
Interest and fee income on loans 891,357 984,455
------------ ------------
Total interest income 1,108,673 1,135,247
------------ ------------
Interest expense
Deposits 235,008 199,615
Interest on Federal funds purchased 113 84
Interest on FHLB borrowings 290 0
Other borrowings 50,963 50,963
------------ ------------
Total interest expense 286,374 250,662
------------ ------------
Net interest income 822,299 884,585
------------ ------------
Provision for loan losses 16,151 234,631
------------ ------------
Net interest income after
provision for loan losses 806,148 649,954
------------ ------------
Non-interest income
Service charges on deposit accounts 212,961 232,558
Other miscellaneous fee income 9,601 8,473
Dividend income from restricted
stock 8,160 8,244
Income from bank owned life
insurance 16,730 15,112
------------ ------------
Total non-interest income 247,452 264,387
------------ ------------
General and administrative expenses
Salaries and employee benefits 488,695 477,792
Occupancy and equipment 77,612 83,781
Data and item processing 73,481 82,676
Advertising and marketing 15,874 27,829
Legal and professional fees 45,065 45,312
Regulatory Assessments 28,028 20,481
Insurance 7,784 8,228
Directors' fees and expenses 18,207 19,176
Other expenses 115,828 97,473
------------ ------------
Total general & administrative
expenses 870,574 862,748
------------ ------------
Income before income tax expense 183,026 51,593
Income tax expense 63,757 10,122
------------ ------------
Net income $ 119,269 $ 41,471
============ ============
Basic earnings per share $ 0.17 $ 0.06
============ ============
Diluted earnings per share $ 0.16 $ 0.05
============ ============
The accompanying notes are an integral part
of these consolidated financial statements