CHINO, Calif., April 19, 2004 (PRIMEZONE) -- The Board of Directors of Chino Commercial Bank, N.A. (OTCBB:CKNA) announced the results of operations for the first quarter of 2004 with income before taxes for the quarter of $187,489, a 61.5% increase over pre-tax, net income of $116,097 for the same quarter last year. Net income for the three months ended March 31, 2004 was $117,755 or $0.22 per share, a 1.4% increase from net income of $116,097 or $0.21 per share for the three months ended March 31, 2003. Net income per fully diluted share was $0.20 and $0.21 for the quarters ending March 31, 2004 and 2003 respectively. Dann H. Bowman, President and Chief Executive Officer stated, "We are very pleased with the increase in quarterly earnings and the quality of the balance sheet as the Bank continues to grow."
Total assets increased by 41.2% to $64.0 million, as compared with total assets of $45.3 million at the end of the same quarter last year; and increased 9.3% or $5.4 million as compared to $58.6 million at December 31, 2003. Total Deposits increased 45.2% to $58.2 million at the end of the first quarter, as compared with $40.1 million at the end of the same quarter last year. Deposits also increased 9.7% during the first quarter as compared to $53.1 million at December 31, 2003. Total Loans increased 31.1% to $28.4 million at March 31, 2004 as compared to $21.7 million at March 31, 2003 and $27.2 million at December 31, 2003. To date, the Bank has had no delinquencies greater than 60 days, non-accrual or non-performing loans or other real estate owned.
The increased earnings for the quarter were primarily due to an increase in the net interest margin of $109,724. The Bank posted net interest income of $662,680 for the three months ended March 31, 2004 as compared to $565,426 for the same quarter last year. These increases in income were partially offset by an increase in general and administrative expenses of $47,980 resulting from an increase in salary and benefits expense offset by a decrease in the provision for loan losses of $38,000.
Average interest-earning assets were $52.8 million with average interest-bearing liabilities of $12.1million yielding a net interest margin of 4.74% for the first quarter of 2004 as compared to average interest-bearing assets of $40.5 million with average interest-bearing liabilities of $11.1 million yielding a net interest margin of 5.10% for the three months ended March 31, 2003.
General and administrative expenses were $569,077 for the three months ended March 31, 2004 as compared to $521,097 for the three months ended March 31, 2003. The largest component of general and administrative expenses was salary and benefits expense of $307,814 for the first quarter of 2004 as compared to $256,487 for the first quarter of 2003. Salary and benefits increased due to higher average full-time equivalent staff, salary increases, lower capitalized loan origination costs, accrued incentive compensation, temporary staffing expenses, and higher expenses relating to health insurance and workers' compensation for the first quarter of 2004 as compared to first quarter of 2003. Other expenses decreased by $20,781 for the comparable three-month period due to the recovery of $8,453 from an operating loss recorded in the fourth quarter of 2003 as well as cost reductions in various expense categories. Also increased were Audit and professional fees expenses, which increased $10,972, and Advertising and marketing expenses, which increased $3,508.
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 Bank. There can be no assurances that future developments affecting Chino Commercial Bank 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.
CHINO COMMERCIAL BANK
STATEMENT OF FINANCIAL CONDITION
March 31, December 31,
2004 2003
----------- ------------
(unaudited)
ASSETS:
Cash and Due from Banks $ 4,499,248 3,588,715
Federal Funds Sold 10,245,000 9,350,000
----------- ------------
Cash and
Cash equivalents 14,744,248 12,938,715
Interest-bearing
deposits at banks 2,388,000 2,388,000
Investment Securities
available for sale 9,335,608 9,463,551
Investment Securities
held to maturity
(fair value approximates
$6,662,858 at March 31, 2004
and $5,378,920 at
December 31, 2003) 6,541,704 5,327,521
Federal Reserve Bank stock,
at cost 154,500 154,450
Federal Home Loan Bank
stock, at cost 169,650 168,100
Pacific Coast Bankers'
Bank stock, at cost 50,000 50,000
Loans
Loans held for sale -- 126,558
Construction 1,244,076 468,101
Real estate 21,643,917 19,639,383
Commercial 5,636,569 6,475,819
Farm/Agriculture 356,836 360,269
Installment 48,358 596,534
Unearned fees and
discounts (128,560) (122,260)
Allowance for
loan losses (351,828) (351,828)
----------- ------------
Total Loans 28,449,368 27,192,576
----------- ------------
Fixed Assets, net 415,671 438,393
Accrued Interest Receivable 191,555 189,574
Prepaid & Other Assets 1,575,147 267,698
----------- ------------
Total Assets $ 64,015,451 58,578,578
=========== ============
LIABILITIES:
Deposits
Non-interest Bearing $ 45,846,675 40,769,746
Interest Bearing
Money market 9,014,642 9,124,289
Savings 559,883 565,012
Time deposits of
$100,000 or
greater, due in
one year 1,202,514 897,603
Time deposits less
than $100,000,
due in one year 1,625,699 1,736,483
----------- ------------
Total Deposits 58,249,413 53,093,133
----------- ------------
Accrued Interest Payable 12,476 12,580
Accrued Expenses &
Other Payables 277,829 142,871
----------- ------------
Total Liabilities 58,539,718 53,248,584
----------- ------------
STOCKHOLDERS' EQUITY
Common Stock, authorized 10,000,000 shares with a par value of $5
per share; issued and outstanding 545,646 and 545,646
at March 31, 2004 and
December 31, 2003,
respectively. 2,728,230 2,728,230
Additional paid-in
capital 2,590,893 2,590,893
Accumulated income 149,019 31,264
Accumlated other
comprehensive
income 7,591 (20,393)
----------- ------------
Total Equity 5,475,733 5,329,994
----------- ------------
Total Liabilities
& Equity $ 64,015,451 58,578,578
=========== ============
CHINO COMMERCIAL BANK
STATEMENT OF OPERATIONS
(unaudited)
For the three months ending
March 31,
2004 2003
---------- ----------
Interest Income
Interest Income - Securities $ 145,610 $ 166,584
Interest Income - Fed Funds 18,231 11,498
Interest and fee
income on Loans 498,839 387,344
----------- ----------
Total Interest Income 662,680 565,426
----------- ----------
Interest Expense
Interest Expense - Deposits 36,997 49,467
Interest Expense - Borrowings - -
----------- ----------
Total Interest Expense 36,997 49,467
----------- ----------
Total net interest income 625,683 515,959
----------- ----------
Provision for loan losses - 38,000
----------- ----------
Total net interest income
after provision for
loan losses 625,683 477,959
----------- ----------
Non-interest income
Service Charges on
Deposit Accounts 103,266 71,224
Other miscellaneous
fee income 1,418 732
Income from Mortgage
Banking 15,445 87,279
Income from Bank Owned
Life Insurance 10,754 -
----------- ----------
Total Non-interest income 130,883 159,235
----------- ----------
General & Administrative Expenses
Salaries & Benefits 307,814 256,487
Occupancy & Equipment 58,532 61,212
Data & Item Processing 46,671 43,647
Advertising & Marketing 20,388 16,880
Audit & Professional fees 43,141 32,169
Insurance 5,655 4,173
Directors' fees and expenses 15,508 14,380
Other expenses 71,368 92,149
----------- ----------
Total general &
administrative expenses 569,077 521,097
----------- ----------
Income before income tax expense 187,489 116,097
Income tax expense 69,734 -
----------- ----------
Total income $ 117,755 $ 116,097
=========== ==========
Basic Earnings (loss) per share $ 0.22 $ 0.21
=========== ==========
Diluted Earnings (loss) per share $ 0.20 $ 0.21
=========== ==========
CHINO COMMERCIAL BANK
Selected Financial Highlights
For the three months
ended March 31,
--------------------
2004 2003
--------- ----------
Selected Operating Data:
Net interest income $ 625,683 $ 477,959
Provision for loan losses - 38,000
Non-interest income 130,883 159,235
Non-interest expense 569,077 521,097
Net income $ 117,755 $ 116,097
Share Data:
Basic income per share $ 0.22 $ 0.21
Diluted Income per share $ 0.20 $ 0.21
Weighted average common
shares outstanding
Basic 545,646 545,646
Diluted 583,327 558,449
Performance Ratios:
Return on average assets 0.82% 1.07%
Return on average equity 8.64% 9.25%
Equity to total assets
at the end of the period 9.10% 11.09%
Net interest spread 3.79% 3.79%
Net interest margin 4.74% 5.10%
Average interest-earning
assets to average-bearing
liabilities 434.48% 365.57%
Core efficiency ratio 75.17% 77.19%
Non-interest expense to
average assets 3.96% 4.82%
Selected Balance Sheet Data: 3/31/2004 12/31/2003
------------ ------------
Total assets $ 64,015,451 $ 58,578,578
Investment securities
held to maturity 6,541,704 5,327,521
Investment securities
available for sale 9,335,608 9,463,551
Loan receivable, net 28,449,368 27,192,576
Deposits 58,249,413 53,093,133
Non-interest bearing
deposits 45,846,675 40,772,019
Stockholders' equity $ 5,475,733 $ 5,329,994
Regulatory capital ratios:
Average equity to
average assets 9.48% 10.26%
Leverage capital 9.51% 9.48%
Tier I risk based 15.58% 16.64%
Risk-based capital 16.58% 17.74%
Asset Quality Ratios:
Allowance for loan losses as
a percent of gross loans
receivable 1.22% 1.27%
Net charge-offs to average loans - -0.16%
Non-performing loans to total
loans n/a n/a
Number of full-service customer
facilities 1 1