CHINO, Calif., Oct. 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 third quarter ended September 30, 2009 with net earnings of $95,080, a 26.5% increase from $75,136 for the same quarter of 2008. The net earnings for the most recent quarter represent $0.13 per diluted share, as compared with $0.10 per diluted share from the same quarter last year. The Company's profit year-to-date was up 9.5% to $287,878 or $0.39 per diluted share as compared with net earnings of $263,012 or $0.35 per diluted share for the same period last year.
Dann H. Bowman, President and Chief Executive Officer, stated, "We are very pleased with the performance of the Bank during the third quarter. Not only did the Bank post a significant improvement in net earnings, but even more important, was that we had no delinquent loans at the quarter-end. At this time in the economic cycle, we are very fortunate to be experiencing such strong performance and earnings."
Financial Condition
Balance sheet changes during the nine months of 2009 include sizeable increases in deposits and loans. Total deposits increased by $22.7 million, or 32.0%, to $93.7 million at September 30, 2009. Much of the growth was in time deposits which increased $12.3 million, or 138.1%. Non-interest bearing demand deposits increased $8.3 million or 25.4% during the nine months of 2009, ending at $40.9 million at September 30, 2009. Combined NOW and money market demand accounts increased to $2.2 million at September 30, 2009, a 7.7% increase from $28.4 million at December 31, 2008, while savings accounts decreased 7.3% from $1.1 million at December 31, 2008 to $1.0 million at September 30, 2009.
Total assets increased from $83.4 million at December 31, 2008 to $104.0 million at September 30, 2009, a 24.7% increase. Gross Loans rose from $49.8 million to $62.2 million, and due from banks time increased from $12.5 million to $16.9 million. Gross loan balances increased in part by the completion of $10.5 million dollar whole loan purchases made during the year, in addition to $1.9 million in organic loan growth.
The Company has experienced two loan losses thus far this year totaling $5,520, one non-performing loan, and very few delinquent loans in the three quarters of 2009.
Earnings
The Company posted net interest income for the quarters ended September 30, 2009 and September 30, 2008 of $1,015,974 and $840,992, respectively. For the nine months ended September 30, the Company posted net interest income of $2,732,607 and $2,626,051 for 2009 and 2008, respectively. Significant contributors to the increase in net interest income were the increased interest and fees on loans and interest from investment securities and due from banks. Loan interest increased $189,541, or 20.3%, to $1,124,989 for the third quarter of 2009 compared with the third quarter of 2008. Year-to-date interest and fees income from loans increased 69,188, or 2.4%, comparing 2009 with 2008. Interest expense on deposits increased $57,055, or 31.3%, comparing the quarters ended September 30, 2009 with September 30, 2008. On a year-to-date comparison, interest on deposits increased $157,967, or 28.8% in 2009 compared to the same period in 2008. Interest from investments and due from banks increased $78,404, or 76.1% and $261,911, or 76.8% for the quarter and nine months ended September 30, 2009 compared to the quarter and nine months ended September 30, 2008. Average interest-earning assets were $81.6 million with average interest-bearing liabilities of $49.0 million, yielding a net interest margin of 4.47% for the nine months ended September 30, 2009; as compared to average interest-bearing assets of $66.4 million with average interest-bearing liabilities of $32.3 million, yielding a net interest margin of 5.28% for the nine months ended September 30, 2008.
Non-interest income totaled $275,322 for the three months ended September 30, 2009, or a 6.1% increase from $259,508 earned during the third quarter of 2008. Non-interest income decreased 5.3% for the nine months ended September 30, 2009 at $775,483, as compared to $819,253 for the nine months ended September 30, 2008. Affecting the decline in non-interest income for year-to-date income through September 30, 2009 were a reduced income from FHLB stock of $15,643 and the recognition of a net probable loss from the sales of Other Real Estate Owned for $14,219. Service charges on deposit accounts also increased by $23,797 in the quarter-to-quarter and decreased $4,189 in the year-to-year comparisons of periods ended September 30, 2009 and 2008.
General and administrative expenses were $861,595 and $2,646,238 for the three and nine months ended September 30, 2009, respectively, as compared to $908,762 and $2,694,059 for the three and nine months ended September 30, 2008. The decreases in General and administrative expenses would have been much greater had the Company not experienced a 122.1% increase for the quarter and a 164.7% increase year-to-date from regulatory assessments.
Income tax expense was $46,797 and $142,269 for the three and nine months ended September 30, 2009, as compared to $33,466 and $126,693 for the same periods of 2008. The effective income tax rate for 2009 and 2008 is approximately 30.8% and 32.5%, 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 detailed in the Company's SEC filings.
CHINO COMMERCIAL BANCORP
CONSOLIDATED BALANCE SHEET
September 30, 2009 and December 31, 2008
September 30, December 31,
2009 2008
------------- -------------
(unaudited) (audited)
ASSETS:
Cash and due from banks $ 10,905,856 $ 3,877,897
------------- -------------
Interest-bearing deposits in other banks 16,911,602 12,498,000
Investment securities available for sale 6,768,646 8,791,651
Investment securities held to maturity
(fair value approximates $2,544,000 at
September 30, 2009 and $3,186,000 at
December 31, 2008) 2,495,460 3,167,401
------------- -------------
Total investments 26,175,708 24,457,052
------------- -------------
Loans
Construction 0 820,888
Real estate 52,207,408 37,794,240
Commercial 9,167,993 10,607,103
Installment 805,351 543,937
------------- -------------
Gross loans 62,180,752 49,766,168
Unearned fees and discounts (4,973) (77,542)
------------- -------------
Loans net of unearned fees and discount 62,175,779 49,688,626
Allowance for loan losses (1,128,796) (702,409)
------------- -------------
Net loans 61,046,983 48,986,217
------------- -------------
Accrued interest receivable 327,779 313,428
Restricted stock 677,650 677,650
Fixed assets, net 1,871,733 1,980,476
Other real estate 198,928 653,131
Prepaid & other assets 2,815,805 2,447,295
------------- -------------
Total assets $ 104,020,442 $ 83,393,146
============= =============
LIABILITIES:
Deposits
Non-interest bearing $ 40,891,066 $ 32,600,750
Interest Bearing
NOW and money market 30,636,568 28,434,407
Savings 986,462 1,064,668
Time deposits less than $100,000 5,548,284 3,842,310
Time deposits of $100,000 or greater 15,639,509 5,055,617
------------- -------------
Total deposits 93,701,889 70,997,752
------------- -------------
Accrued interest payable 105,354 56,061
Borrowings from Federal Home Loan
Bank (FHLB) 0 2,400,000
Accrued expenses & other payables 677,545 665,580
Subordinated debentures 3,093,000 3,093,000
------------- -------------
Total liabilities 97,577,788 77,212,393
------------- -------------
STOCKHOLDERS' EQUITY
Common stock, authorized 10,000,000
shares with no par value, issued and
outstanding 701,311 shares and
708,420 shares at September 30, 2009
and December 31, 2008, respectively 2,532,414 2,617,542
Retained earnings 3,822,114 3,534,236
Accumulated other comprehensive income 88,124 28,975
------------- -------------
Total equity 6,442,652 6,180,753
------------- -------------
Total liabilities & stockholders'
equity $ 104,020,440 $ 83,393,146
============= =============
CHINO COMMERCIAL BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
For the three months For the nine months
ended ended
September 30, September 30,
2009 2008 2009 2008
---------- ---------- ---------- ----------
Interest income
Investment securities
and due from banks $ 181,370 $ 102,966 $ 602,975 $ 341,064
Interest on Federal
funds sold 46 35,855 102 66,832
Interest and fee
income on loans 1,124,989 935,448 2,989,001 2,919,813
---------- ---------- ---------- ----------
Total interest
income 1,306,405 1,074,269 3,592,078 3,327,709
---------- ---------- ---------- ----------
Interest expense
Deposits 239,369 182,314 705,764 547,797
Interest on Federal
funds purchased 0 0 115 973
Interest on FHLB
borrowings 99 0 704 0
Other borrowings 50,963 50,963 152,888 152,888
---------- ---------- ---------- ----------
Total interest
expense 290,431 233,277 859,471 701,658
---------- ---------- ---------- ----------
Net interest
income 1,015,974 840,992 2,732,607 2,626,051
---------- ---------- ---------- ----------
Provision for loan
losses 287,824 83,136 431,705 361,540
---------- ---------- ---------- ----------
Net interest
income after
provision for
loan losses 728,150 757,856 2,300,902 2,264,511
---------- ---------- ---------- ----------
Non-interest income
Service charges on
deposit accounts 247,719 223,922 704,556 708,745
Other miscellaneous
income 6,889 9,411 13,943 27,131
Dividend income from
restricted stock 3,791 9,978 6,606 36,461
Income from bank-owned
life insurance 16,923 16,197 50,378 46,916
---------- ---------- ---------- ----------
Total non-interest
income 275,322 259,508 775,483 819,253
---------- ---------- ---------- ----------
General and admini-
strative expenses
Salaries and employee
benefits 450,624 467,413 1,383,099 1,444,704
Occupancy and
equipment 86,239 95,552 242,522 261,912
Data and item
processing 77,134 80,659 218,900 245,726
Advertising and
marketing 15,777 19,889 49,569 60,504
Legal and professional
fees 47,714 49,142 137,900 144,763
Regulatory Assessments 48,947 22,039 167,670 63,337
Insurance 8,096 7,898 23,540 23,894
Directors' fees and
expenses 18,963 19,417 54,621 57,718
Other expenses 108,101 146,753 368,417 391,501
---------- ---------- ---------- ----------
Total general &
administrative
expenses 861,595 908,762 2,646,238 2,694,059
---------- ---------- ---------- ----------
Income before income
tax expense 141,877 108,602 430,147 389,705
Income tax expense 46,797 33,466 142,269 126,693
---------- ---------- ---------- ----------
Net income $ 95,080 $ 75,136 $ 287,878 $ 263,012
========== ========== ========== ==========
Basic earnings per
share $ 0.14 $ 0.11 $ 0.41 $ 0.38
========== ========== ========== ==========
Diluted earnings per
share $ 0.13 $ 0.10 $ 0.39 $ 0.35
========== ========== ========== ==========
CHINO COMMERCIAL BANCORP
Other Financial Information
CREDIT QUALITY End of period
(unaudited) September 30, December 31,
2009 2008
------------- -------------
Non-performing loans $ 49,536 $ 412,343
============= =============
Non-performing loans to total loans 0.08% 0.83%
Non-performing loans to total assets 0.05% 0.49%
Allowance for loan losses to loans 1.82% 1.41%
OTHER PERIOD-END STATISTICS
(unaudited) September 30, December 31,
2009 2008
------------- -------------
Shareholders equity to total assets 6.19% 7.41%
Loans to deposits 66.36% 70.10%
Non-interest bearing deposits to
total deposits 43.64% 45.92%
For the three months For the nine months
ended ended
September 30 September 30
2009 2008 2009 2008
-------- -------- -------- --------
KEY FINANCIAL RATIOS
(unaudited)
Return on average equity 6.16% 5.19% 6.20% 6.01%
Return on average assets 0.39% 0.40% 0.42% 0.47%
Net interest margin 4.57% 5.02% 4.47% 5.28%
efficiency ratio 85.86% 89.33% 86.02% 87.36%
Net chargeoffs to average
loans 0.01% 0.18% 0.01% 0.81%
AVERAGE BALANCES
(thousands, unaudited)
Average assets $ 98,459 $ 75,750 $ 91,347 $ 75,052
Average interest-earning
assets $ 88,184 $ 66,638 $ 81,647 $ 66,444
Average gross loans $ 61,845 $ 50,226 $ 54,712 $ 52,583
Average deposits $ 87,848 $ 65,839 $ 80,536 $ 65,173
Average equity $ 6,179 $ 5,818 $ 6,193 $ 5,833