CHINO, Calif., Oct. 22, 2001 (PRIMEZONE) -- Chino Commercial Bank, N.A. (OTCBB:CKNA) reported growth during the third quarter of 20.6% and year-to-date growth of 107.4%. Dann H. Bowman, President and Chief Executive Officer stated, "The growth of the Bank continues to exceed our expectations, both in terms of total deposits, as well as the composition of those deposits." The Bank's deposits totaled $22.1 million at quarter end, of which 72% were non-interest bearing. The Bank's assets totaled $28.2 million at September 30, 2001; loans receivable totaled $8.9 million and investments and Fed funds totaled $18.4 million.
The Bank reported a net loss for the third quarter of $36,449 or ($.07) per share as compared to a net loss of $52,429 or ($.10) per share for the second quarter and a year-to-date loss of $174,117 or ($.32) per share. Mr. Bowman stated, "The effect of nine interest rate reductions, totaling 400 basis points over the last nine months, has had the effect of compressing the Bank's net interest margin, and significantly reducing earnings. Although the Bank's growth is very strong, the impact of economic conditions has affected the Bank's revenues and made it more difficult to maintain profitability on a month-to-month basis."
The Bank posted net interest income of $345,999 for the three months ended September 30, 2001 as compared to $306,227 for the three months ended June 30, 2001. Average interest-earning assets were $22.0 million with average interest-bearing liabilities of $6.3 million yielding a net interest margin of 6.29% for the third quarter of 2001, as compared to average interest-bearing assets of $20.9 million with average interest-bearing liabilities of $6.1 million yielding a net interest margin of 5.85% for the second quarter of 2001.
General and administrative expenses were $385,849 for the three months ended September 30, 2001 as compared to $359,335 for the three months ended June 30, 2001. The largest component of general and administrative expenses was salary and benefits expense of $183,225 for the third quarter of 2001 as compared to $169,623 for the second quarter of 2001. Staff increased from 11 employees to 13 employees, creating the increase in salary and benefit expense.
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 OPERATIONS
(Unaudited)
For the For the For the
three months nine months nine months
ending ending ending
September 30, September 30, September 30,
2001 2000 2001
----------- ----------- -----------
Interest Income
Interest Income - Securities $ 163,783 $ 2,282 $ 512,748
Interest Income - Fed Funds 21,743 29,256 152,922
Interest and
fee income on Loans 215,181 1,292 401,839
----------- ----------- -----------
Total Interest Income 400,707 32,830 1,067,509
----------- ----------- -----------
Interest Expense
Interest Expense - Deposits 40,596 1,562 141,446
Interest Expense - Borrowings 14,112 -- 26,668
----------- ----------- -----------
Total Interest Expense 54,708 1,562 168,114
----------- ----------- -----------
Total net interest income 345,999 31,268 899,395
----------- ----------- -----------
Provision for loan losses 23,920 1,500 75,550
----------- ----------- -----------
Total net interest income
after provision for
loan losses 322,079 29,768 823,845
----------- ----------- -----------
Non-interest income
Service Charges on
Deposit Accounts 26,618 49 45,301
Other miscellaneous
fee income 703 160 1,433
Gain on the
Sale of Securities -- -- 27,141
Other income -- -- 77
----------- ----------- -----------
Total Non-interest income 27,321 209 73,952
----------- ----------- -----------
General &
Administrative Expenses
Salaries & Benefits 183,225 44,519 512,241
Occupancy & Equipment 59,557 14,448 168,553
Data & Item Processing 36,957 5,316 88,743
Advertising & Marketing 12,687 2,574 38,169
Audit & Professional fees 23,934 4,751 67,492
Insurance 2,730 -- 7,860
Other expenses 66,759 12,872 188,856
Stock Selling expenses -- 93,114 --
----------- ----------- -----------
Total general &
administrative expense 385,849 177,594 1,071,914
----------- ----------- -----------
Income tax expense (benefit) -- -- --
=========== =========== ===========
Total income (loss) $ (36,449) $ (147,617) $ (174,117)
=========== =========== ===========
Basic loss per share $ (0.07) $ (0.32)
=========== ===========
Diluted loss per share $ (0.07) $ (0.31)
=========== ===========
CHINO COMMERCIAL BANK
STATEMENT OF FINANCIAL CONDITION
September 30, December 31,
2001 2000
------------ ------------
(unaudited) (audited)
ASSETS:
Cash and Due from Banks $ 4,417,176 1,162,083
Federal Funds Sold 3,180,000 8,790,000
------------ ------------
Cash and Cash equivalents 7,597,176 9,952,083
Investments 10,800,500 1,119,409
Federal Reserve Bank stock, at cost 143,800 159,100
Federal Home Loan Bank stock, at cost 62,500 500
Pacific Coast Bankers'
Bank stock, at cost 50,000 50,000
Loans
Construction 901,310 93,459
Real estate 4,198,215 602,494
Commercial 3,524,917 897,367
Installment 315,716 76,136
Unearned fees and discounts 24,739 --
Allowance for loan losses (92,250) (16,700)
------------ ------------
Total Loans 8,872,647 1,652,756
------------ ------------
Fixed Assets, net 543,620 588,549
Accrued Interest Receivable 93,381 29,784
Prepaid & Other Assets 59,286 52,646
============ ============
Total Assets $ 28,222,910 13,604,827
============ ============
LIABILITIES:
Deposits
Non-interest Bearing $ 15,828,750 5,617,940
Interest Bearing
Money market 4,761,095 2,471,755
Savings 245,577 148,105
Time deposits of $100,000 or
greater, due in one year 565,844 200,000
Time deposits less than
$100,000, due in one year 702,806 239,146
------------ ------------
Total Deposits 22,104,072 8,676,946
------------ ------------
Federal Home Loan Bank Advance 1,250,000 --
Accrued Interest Payable 40,289 4,600
Accrued Expenses & Other Payables 78,421 56,709
------------ ------------
Total Liabilities 23,472,782 8,738,255
------------ ------------
STOCKHOLDERS' EQUITY
Common Stock, authorized 10,000,000
shares with a par value of $5 per
share; issued and outstanding
545,646 and 543,982 at September 30,
2001 and December 31, 2000,
respectively 2,728,230 2,719,910
Additional paid-in capital 2,590,893 2,582,573
Accumulated deficit (617,493) (443,376)
Accumlated other comprehensive income 48,498 7,465
------------ ------------
Total Equity 4,750,128 4,866,572
------------ ------------
Total Liabilities & Equity $ 28,222,910 13,604,827
============ ============