CHINO, Calif., April 22, 2010 (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, 2010 with net earnings of $41,285, a 65.4% decrease from net income of $119,269 for the first quarter of last year. Net income per basic share for the first quarter was $0.06 as compared to $0.17 for the first quarter last year.
Dann H. Bowman, President and Chief Executive Officer stated, "During this time of uncertainty in the financial services industry, we are pleased to report that the Bank remains profitable and stable, however because the Bank made significant provisions to Loan Loss Reserve during the first quarter, the net earnings were lower than the same quarter last year. Fortunately, during this time when many banks have to cut back on lending, we have significant capacity to continue making loans and support the community.
"We have also recently announced the opening of the Bank's third branch office in Rancho Cucamonga. Though the economy remains slow, we see great potential for expansion in this area, and look forward to a very good year."
Financial Condition
At March 31, 2010, total assets were $110.8 million, an increase of $7.2 million or 7.0% from December 31, 2009, and an increase of $21.9 million or 24.7% from March 31, 2009. This is a direct result of the growth of the Bank's deposits.
Total deposits increased by 8.8% to $100.4 million at March 31, 2010, an increase from $92.3 million at December 31, 2009. Total deposits increased 27.7% from March 31, 2009's balance of $78.6 million. At March 31, 2010, the Company's core deposits represent 80.5% of the total deposits.
Loans decreased $940,706 during the first quarter from December 31, 2009 with a remaining balance of $60.5 million at March 31, 2010. Comparing the balances of March 31, 2009, the Company's loans increased $11.4 million or 23.3% during the twelve month period.
Earnings
The Company posted net interest income of $952,763 for the quarter ended March 31, 2010 as compared to $822,299 the quarter ended March 31, 2009, due to increased average balances in loans and increased average balances in interest-bearing deposits. Average interest- earning assets were $93.6 million with average interest-bearing liabilities of $62.3 million yielding a net interest margin of 4.13% for the first quarter of 2010 as compared to the average interest-earning assets of $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.
Non-interest income totaled $293,835 for the first quarter of 2010, or an increase of 18.8% from $247,452 earned during the first quarter of 2009. Service charges on deposit accounts increased 25.7% to $267,641 due to increased overdraft and return item charges.
The provision for loan losses increased by $247,534 to $263,685 or 1,532.6% in the first quarter of 2010, compared to $16,151 in the first quarter of 2009.
General and administrative expenses were $928,926 for the three months ended March 31, 2010 as compared to $870,574 for the first quarter of 2009. The largest component of general and administrative expenses was salary and benefits expense of $524,022 for the first quarter of 2010 as compared to $488,695 for the three months ended March 31, 2009. Occupancy, equipment, and data processing expenses also increased as expenses are incurred for the new Rancho Cucamonga office. Other expenses decreased by $14,103 for the comparable three-month period due to expenses of other real estate in 2009 that did not occur in 2010.
Income tax expense was $12,702 for the three months ended March 31, 2010 as compared to $63,757 for the three months ended March 31, 2009. The effective income tax rate for the first quarter of 2010 and 2009 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, 2010 and December 31, 2009 | ||
| March 31, 2010 | December 31, 2009 | |
| (unaudited) | (audited) | |
| ASSETS: | ||
| Cash and due from banks | $ 10,355,204 | $ 3,089,300 |
| Interest-bearing deposits in other banks | 26,672,252 | 25,433,602 |
| Investment securities available for sale | 5,237,643 | 5,567,855 |
| Investment securities held to maturity (fair value approximates $2,142,000 at March 31, 2010 and $2,332,000 at December 31, 2009) | 2,091,784 | 2,291,962 |
| Total investments | 34,001,679 | 33,293,419 |
| Loans | ||
| Construction | 0 | 0 |
| Real estate | 50,339,110 | 50,931,354 |
| Commercial | 9,312,613 | 9,621,310 |
| Installment | 815,799 | 855,564 |
| Gross loans | 60,467,522 | 61,408,228 |
| Unearned fees and discounts | (18,866) | (17,887) |
| Loans net of unearned fees and discount | 60,448,656 | 61,390,341 |
| Allowance for loan losses | (1,394,095) | (1,277,526) |
| Net loans | 59,054,561 | 60,112,815 |
| Accrued interest receivable | 314,916 | 326,206 |
| Restricted stock | 677,650 | 677,650 |
| Fixed assets, net | 3,374,367 | 3,100,183 |
| Other real estate | 0 | 24,861 |
| Prepaid & other assets | 3,020,132 | 2,956,242 |
| Total assets | $ 110,798,509 | $ 103,580,676 |
| LIABILITIES: | ||
| Deposits | ||
| Non-interest bearing | $ 37,405,737 | $ 35,872,495 |
| Interest Bearing | ||
| NOW and money market | 34,751,517 | 31,148,654 |
| Savings | 1,178,593 | 1,003,290 |
| Time deposits less than $100,000 | 7,503,819 | 6,722,558 |
| Time deposits of $100,000 or greater | 19,600,618 | 17,541,461 |
| Total deposits | 100,440,284 | 92,288,458 |
| Accrued interest payable | 147,392 | 125,823 |
| Borrowings from Federal Home Loan Bank (FHLB) | 0 | 994,000 |
| Accrued expenses & other payables | 649,009 | 612,667 |
| Subordinated debentures | 3,093,000 | 3,093,000 |
| Total liabilities | 104,329,685 | 97,113,948 |
| STOCKHOLDERS' EQUITY | ||
| Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 697,961 shares and 699,061 shares at March 31, 2010 and December 31, 2009, respectively. | 2,466,649 | 2,498,664 |
| Retained earnings | 3,926,192 | 3,884,907 |
| Accumulated other comprehensive income | 75,983 | 83,157 |
| Total stockholders' equity | 6,468,824 | 6,466,728 |
| Total liabilities & stockholders' equity | $ 110,798,509 | $ 103,580,676 |
| CHINO COMMERCIAL BANCORP | ||
| CONSOLIDATED STATEMENTS OF INCOME | ||
| (unaudited) | ||
|
For the three months ended March 31, |
||
| 2010 | 2009 | |
| Interest income | ||
| Investment securities and due from banks | $ 168,592 | $ 217,282 |
| Interest on Federal funds sold | 0 | 34 |
| Interest and fee income on loans | 1,076,447 | 891,357 |
| Total interest income | 1,245,039 | 1,108,673 |
| Interest expense | ||
| Deposits | 241,283 | 235,008 |
| Interest on Federal funds purchased | 0 | 113 |
| Interest on FHLB borrowings | 30 | 290 |
| Other borrowings | 50,963 | 50,963 |
| Total interest expense | 292,276 | 286,374 |
| Net interest income | 952,763 | 822,299 |
| Provision for loan losses | 263,685 | 16,151 |
| Net interest income after provision for loan losses | 689,078 | 806,148 |
| Non-interest income | ||
| Service charges on deposit accounts | 267,641 | 212,961 |
| Other miscellaneous income | 6,083 | 9,601 |
| Dividend income from restricted stock | 3,137 | 8,160 |
| Income from bank-owned life insurance | 16,974 | 16,730 |
| Total non-interest income | 293,835 | 247,452 |
| General and administrative expenses | ||
| Salaries and employee benefits | 524,022 | 488,695 |
| Occupancy and equipment | 85,848 | 77,612 |
| Data and item processing | 80,040 | 73,481 |
| Advertising and marketing | 13,818 | 15,874 |
| Legal and professional fees | 45,016 | 45,065 |
| Regulatory Assessments | 52,193 | 28,028 |
| Insurance | 8,941 | 7,784 |
| Directors' fees and expenses | 17,323 | 18,207 |
| Other expenses | 101,725 | 115,828 |
| Total general & administrative expenses | 928,926 | 870,574 |
| Income before income tax expense | 53,987 | 183,026 |
| Income tax expense | 12,702 | 63,757 |
| Net income | $ 41,285 | $ 119,269 |
| Basic earnings per share | $ 0.06 | $ 0.17 |
| Diluted earnings per share | $ 0.06 | $ 0.16 |
|
For the three months ended March 31 |
||
| 2009 | 2008 | |
| KEY FINANCIAL RATIOS | ||
| (unaudited) | ||
| Return on average equity | 0.64% | 1.92% |
| Return on average assets | 0.04% | 0.14% |
| Net interest margin | 4.13% | 4.45% |
| efficiency ratio | 94.51% | 82.63% |
| Net chargeoffs to average loans | 0.24% | 0.00% |
| AVERAGE BALANCES | ||
| (thousands, unaudited) | ||
| Average assets | $ 108,030 | $ 84,157 |
| Average interest-earning assets | $ 93,617 | $ 74,905 |
| Average gross loans | $ 61,213 | $ 48,886 |
| Average deposits | $ 97,564 | $ 73,348 |
| Average equity | $ 6,460 | $ 6,225 |
| CREDIT QUALITY | End of period | |
| (unaudited) | March 31, 2010 | December 31, 2009 |
| Non-performing loans | $ 1,414,884 | $ 412,343 |
| Non-performing loans to total loans | 2.34% | 0.67% |
| Non-performing loans to total assets | 1.28% | 0.40% |
| Allowance for loan losses to loans | 2.31% | 2.08% |
| OTHER PERIOD-END STATISTICS | ||
| (unaudited) | March 31, 2010 | December 31, 2009 |
| Shareholders equity to total assets | 5.84% | 6.24% |
| Loans to deposits | 60.20% | 66.54% |
| Non-interest bearing deposits to total deposits | 37.24% | 38.87% |