CHINO, Calif., Oct. 22, 2002 (PRIMEZONE) -- The Board of Directors of Chino Commercial Bank, N.A. (OTCBB:CKNA) announced that the Bank had achieved record earnings for the third quarter of 2002 with net income for the quarter of $62,990 or $0.12 per share as compared to a loss of $36,449 or $(0.07) per share for the third quarter of 2001. The Bank posted net income year-to-date of $109,630 or $0.20 per share as compared to a loss of $174,117 or $(0.32) per share for the nine months ended September 30, 2001.
Dann H. Bowman, President and Chief Executive Officer stated, "The Bank continues to grow at a steady pace with increases in deposits and loans of 17.6% and 12.7% respectively. Total assets increased during the same period by 13.7%, and total Income reflects a 86.3% increase over the second quarter earnings."
Loans increased to $17.6 million at September 30, 2002 as compared to $11.0 million at December 31, 2001. On September 30, 2002, the Bank had no delinquencies or non-accrual loans. Total Deposits increased to $33.6 million at September 30, 2002 as compared to $20.0 million at December 31, 2001. Non-interest bearing deposits exceeded 67% of total deposits at September 30, 2002.
Mr. Bowman stated, "The improvement in earnings was the result of continued development of the balance sheet, and accumulation of well priced loans, coupled with increases in mortgage banking revenue and service charges earned on deposit accounts."
The Bank posted net interest income of $438,873 for the three months ended September 30, 2002 as compared to $307,307 for the three months ended September 30, 2001. Average interest-earning assets were $32.7 million with average interest-bearing liabilities of $10.2 million yielding a net interest margin of 5.33% for the third quarter of 2002 as compared to average interest-bearing assets of $22.0 million with average interest-bearing liabilities of $6.3 million yielding a net interest margin of 5.58% for the three months ended September 30, 2001. The Bank posted net interest income of $1,146,289 for the nine months ended September 30, 2002 as compared to $811,895 for the nine months ended September 30, 2001. Average interest-earning assets were $29.7 million with average interest-bearing liabilities of $10.0 million yielding a net interest margin of 5.16% for the nine months ended September 30, 2002 as compared to average interest-bearing assets of $19.4 million with average interest-bearing liabilities of $5.7 million yielding a net interest margin of 5.59% for the nine months ended September 30, 2001.
General and administrative expenses were $472,934 for the three months ended September 30, 2002 as compared to $347,157 for the three months ended September 30, 2001. General and administrative expenses were $1,296,796 for the nine months ended September 30, 2002 as compared to $984,414 for the nine months ended September 30, 2001. The largest component of general and administrative expenses was salary and benefits expense of $222,292 for the three months ended September 30, 2002 as compared to $144,533 for the three months ended September 30, 2001. Salary and benefits expense were $588,594 for the nine months ended September 30, 2002 as compared to $424,741 for the nine months ended September 30, 2001.
Full-time employees increased over the past year from thirteen employees to sixteen employees, as reflected by the increase in salary and benefit expense. A portion of the salary and benefit expenses were offset by an increase in capitalized FAS91 costs as loan volume increased and shifted from construction participations and consumer loan transactions to commercial real estate transactions. Other components of general and administrative expenses that affected the increase were Data and Item processing that increased by $6,104 for the comparable three months period and increased by $42,608 for the comparable nine month period due primarily to increased transaction volume. Other expenses increased by $30,278 for the comparable three month period and increased by $77,570 for the comparable nine month period primarily due to client service charges and courier expenses, that were effected by an increase in escrow deposits; as well as, seminar and training expenses.
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
three months ending nine months ending
September 30, September 30,
2002 2001 2002 2001
-------- -------- ---------- ---------
Interest Income
Interest Income
- Securities $170,672 163,783 531,137 512,748
Interest Income
- Fed Funds 16,030 21,743 31,987 152,922
Interest and fee
income on Loans 309,501 176,489 753,550 314,339
-------- -------- ---------- ---------
Total Interest
Income 496,203 362,015 1,316,674 980,009
-------- -------- ---------- ---------
Interest Expense
Interest Expense
- Deposits 57,330 40,596 152,406 141,446
Interest Expense
- Borrowings 0 14,112 17,979 26,668
-------- -------- ---------- ---------
Total Interest
Expense 57,330 54,708 170,385 168,114
-------- -------- ---------- ---------
Total net interest
income 438,873 307,307 1,146,289 811,895
-------- -------- ---------- ---------
Provision for loan
losses 46,000 23,920 81,400 75,550
-------- -------- ---------- ---------
Total net interest
income after
provision for loan
losses 392,873 283,387 1,064,889 736,345
-------- -------- ---------- ---------
Non-interest income
Service Charges on
Deposit Accounts 65,819 26,618 166,115 45,301
Other miscellaneous
fee income 549 703 2,857 1,433
Income from Mortgage
Banking 66,698 -- 162,510 --
Gain on the Sale of
Securities 9,958 0 9,958 27,141
Other income 27 0 27 77
-------- -------- ---------- ---------
Total Non-interest
income 143,051 27,321 341,467 73,952
-------- -------- ---------- ---------
General &
Administrative
Expenses
Salaries & Benefits 222,292 144,533 588,594 424,741
Occupancy &
Equipment 61,811 59,557 178,211 168,553
Data & Item
Processing 43,061 36,957 131,351 88,743
Advertising &
Marketing 17,892 12,687 41,804 38,169
Audit & Professional
fees 27,495 23,934 80,874 67,492
Insurance 3,346 2,730 9,466 7,860
Other expenses 97,037 66,759 266,426 188,856
-------- -------- ---------- ---------
Total general &
administrative
expenses 472,934 347,157 1,296,726 984,414
-------- -------- ---------- ---------
Income tax expense
(benefit) -- -- -- --
======== ======== ========== =========
Total income (loss) $ 62,990 $(36,449) $ 109,630 $(174,117)
======== ======== ========== =========
Basic Earnings (loss)
per share $ 0.12 $ (0.07) $ 0.20 $ (0.32)
======== ======== ========== =========
Diluted Earnings
(loss) per share $ 0.11 $ (0.07) $ 0.20 $ (0.31)
======== ======== ========== =========
CHINO COMMERCIAL BANK
STATEMENT OF FINANCIAL CONDITION
September 30, December 31,
2002 2001
----------- -----------
ASSETS: (unaudited)
Cash and Due from Banks $ 2,419,277 2,177,720
Federal Funds Sold 6,635,000 --
----------- -----------
Cash and Cash equivalents 9,054,277 2,177,720
Interest-bearing deposits at banks 1,189,000 893,000
Investment Securities available for sale 7,115,084 8,542,280
Investment Securities held to maturity
(fair value approximates $3,007,020
at September 30, 2002 and
$2,343,770 at December 31, 2001) 2,926,924 2,359,087
Federal Reserve Bank stock, at cost 139,650 142,550
Federal Home Loan Bank stock, at cost 111,800 107,800
Pacific Coast Bankers' Bank stock,
at cost 50,000 50,000
Loans held for sale 1,694,441 135,000
Loans
Construction -- 1,781,829
Real estate 10,464,621 4,974,373
Commercial 4,899,019 4,055,189
Installment 525,547 288,940
Unearned fees and discounts (20,792) 30,157
Allowance for loan losses (193,000) (111,600)
----------- -----------
Total Loans 15,675,395 11,018,888
----------- -----------
Fixed Assets, net 460,260 523,848
Accrued Interest Receivable 141,094 130,555
Prepaid & Other Assets 47,483 69,700
----------- -----------
Total Assets $38,605,408 26,150,428
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LIABILITIES:
Deposits
Non-interest Bearing $22,514,774 12,814,625
Interest Bearing
Money market 7,832,730 5,187,852
Savings 486,228 213,980
Time deposits of $100,000 or
greater, due in one year 1,300,019 910,428
Time deposits less than
$100,000, due in one year 1,499,080 873,665
----------- -----------
Total Deposits 33,632,831 20,000,550
----------- -----------
Fed Funds Purchased -- 160,000
Federal Home Loan Bank Advance -- 1,250,000
Accrued Interest Payable 18,810 31,099
Accrued Expenses & Other Payables 130,618 58,643
----------- -----------
Total Liabilities 33,782,259 21,500,292
----------- -----------
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
September 30, 2002 and December 31,
2001, respectively 2,728,230 2,728,230
Additional paid-in capital 2,590,893 2,590,893
Accumulated deficit (562,577) (672,207)
Accumlated other comprehensive income 66,603 3,220
----------- -----------
Total Equity 4,823,149 4,650,136
----------- -----------
Total Liabilities & Equity $38,605,408 26,150,428
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