CHINO, Calif., Jan. 28, 2003 (PRIMEZONE) -- The Board of Directors of Chino Commercial Bank, N.A. (OTCBB:CKNA) announced that the Bank had achieved profits for the year ended December 31 2002 with earnings of $202,962 or $.37 per share, an increase of $431,793 from the net loss of $228,831 or $(.42) per share reported for the year ended December 31, 2001. Mr. Dann H. Bowman, President and Chief Executive Officer, stated, "The Bank's profitable year was the result of growth in non-interest bearing deposits and accumulation of well-priced loans as we continued to develop the balance sheet, coupled with increases in mortgage banking revenue and service charges earned on deposit accounts." The Bank posted net income for the fourth quarter 2002 of $93,332 or $0.17 per share, as compared to a loss of $54,714 or $(0.10) per share for the fourth quarter of 2001.
Mr. Bowman stated, "We are extremely pleased with this year's growth and the Bank's profitability for 2002." Loans increased to $21.9 million at December 31, 2002 as compared to $11.2 million at December 31, 2001. On December 31, 2002, the Bank had no delinquencies or non-accrual loans, but had charged-off one loan for $37,885 during the fourth quarter of 2002. Total deposits increased to $36.5 million at December 31, 2002 as compared to $20.0 million at December 31, 2001. Non-interest bearing deposits exceeded 70% of total deposits at December 31, 2002.
The Bank posted net interest income of $477,181 for the three months ended December 31, 2002, as compared to $327,516 for the three months ended December 31, 2001. Average interest-earning assets were $37.4 million with average interest-bearing liabilities of $11.5 million yielding a net interest margin of 5.10% for the fourth quarter of 2002 as compared to average interest-earning assets of $24.1 million with average interest-bearing liabilities of $8.5 million yielding a net interest margin of 5.43% for the three months ended December 31, 2001. The Bank posted net interest income of $1,623,470 for the year ended December 31, 2002, as compared to $1,109,411 for the year ended December 31, 2001. Average interest-earning assets were $32.2 million with average interest-bearing liabilities of $10.2 million yielding a net interest margin of 5.05% for the year ended December 31, 2002 as compared to average interest-earning assets of $20.6 million with average interest-bearing liabilities of $6.4 million yielding a net interest margin of 5.40% for the year ended December 31, 2001.
General and administrative expenses were $487,427 for the three months ended December 31, 2002 as compared to $410,691 for the three months ended December 31, 2001. General and administrative expenses were $1,784,153 or 5.21% of average total assets for the year ended December 31, 2002 as compared to $1,365,105 or 5.91% of average total assets for the year ended December 31, 2001. The largest component of general and administrative expenses was salary and benefits expense of $232,207 for the three months ended December 31, 2002 as compared to $193,059 for the three months ended December 31, 2001. Salary and benefits expenses were $820,801 for the year ended December 31, 2002 as compared to $587,800 for the year ended December 31, 2001. Full-time employees increased over the past year from thirteen employees to sixteen employees, as reflected by the increase in salary and benefit expenses. A portion of the salary and benefit expenses was 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 audit and professional fees that increased by $10,989 for the three-month period due to an increase in audit and legal expenses in 2002. Data and item processing increased by $44,100 for the comparable twelve-month period due primarily to increased transaction volume. Other expenses increased by $26,459 for the comparable three month period and increased by $104,029 for the comparable twelve month period primarily due to correspondent bank charges and courier expenses, that were effected by the increase in deposit accounts, as well as, Board of Directors' fees and 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 FINANCIAL CONDITION
December 31, December 31,
2002 2001
------------ ------------
(unaudited)
ASSETS:
Cash and due from banks $ 1,839,367 2,177,720
Federal Funds sold 2,095,000 --
------------ ------------
Cash and cash equivalents 3,934,367 2,177,720
Interest-bearing deposits at banks 1,685,000 893,000
Investment Securities available
for sale 10,683,120 8,542,280
Investment Securities held to
maturity (fair value approximates
$2,596,649 at December 31, 2002 and
$2,343,770 at December 31, 2001) 2,517,031 2,359,087
Federal Reserve Bank stock, at cost 144,700 142,550
Federal Home Loan Bank stock, at cost 113,200 107,800
Pacific Coast Bankers' Bank stock,
at cost 50,000 50,000
Loans
Loans held for sale 4,151,145 135,000
Construction 238,997 1,781,829
Real estate 11,581,157 4,974,373
Commercial 5,272,802 4,055,189
Installment 470,121 288,940
Farm/Agriculture 373,365 --
Unearned fees, net (20,419) 30,157
Allowance for loan losses (205,615) (111,600)
------------ ------------
Loans, net 21,861,553 11,153,888
------------ ------------
Fixed assets, net 441,866 523,848
Accrued interest receivable 162,861 130,555
Prepaid & other assets 68,667 69,700
------------ ------------
Total Assets $ 41,662,365 26,150,428
============ ============
LIABILITIES:
Deposits
Non-interest bearing $ 25,655,491 12,814,625
Interest bearing
Money market 7,407,219 5,187,852
Savings 432,811 213,980
Time deposits of $100,000 or
greater, due in one year 1,382,281 910,428
Time deposits less than $100,000,
due in one year 1,657,526 873,665
------------ ------------
Total Deposits 36,535,328 20,000,550
------------ ------------
Fed Funds purchased -- 160,000
Federal Home Loan Bank Advance -- 1,250,000
Accrued interest payable 19,649 31,099
Accrued expenses & other payables 171,326 58,643
------------ ------------
Total Liabilities 36,726,303 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 December 31,
2002 and December 31, 2001,
respectively 2,728,230 2,728,230
Additional paid-in capital 2,590,893 2,590,893
Accumulated deficit (469,245) (672,207)
Accumulated other comprehensive
income 86,184 3,220
------------ ------------
Total Stockholders' Equity 4,936,062 4,650,136
------------ ------------
Total Liabilities & Equity $ 41,662,365 26,150,428
============ ============
CHINO COMMERCIAL BANK
STATEMENT OF OPERATIONS
(unaudited)
For the three For the twelve
months ending months ending
December 31, December 31,
2002 2001 2002 2001
--------- ------- --------- ---------
Interest Income
Interest Income -
Securities $ 164,743 161,628 695,880 674,376
Interest Income -
Fed Funds 17,273 17,620 49,260 170,542
Interest and fee income
on Loans 353,020 213,173 1,106,570 497,512
--------- ------- --------- ---------
Total Interest Income 535,036 392,421 1,851,710 1,342,430
--------- ------- --------- ---------
Interest Expense
Interest Expense -
Deposits 57,855 50,483 210,261 191,929
Interest Expense -
Borrowings -- 14,422 17,979 41,090
--------- ------- --------- ---------
Total Interest
Expense 57,855 64,905 228,240 233,019
--------- ------- --------- ---------
Total net interest
income 477,181 327,516 1,623,470 1,109,411
--------- ------- --------- ---------
Provision for loan
losses 50,500 19,350 131,900 94,900
--------- ------- --------- ---------
Total net interest
income after provision
for loan losses 426,681 308,166 1,491,570 1,014,511
--------- ------- --------- ---------
Non-interest income
Service Charges on
Deposit Accounts 69,547 30,871 235,662 76,172
Other miscellaneous
fee income 1,164 869 4,048 2,379
Income from Mortgage
Banking 83,367 1,927 245,877 1,927
Gain on the Sale of
Securities -- 14,144 9,958 41,285
--------- ------- --------- ---------
Total Non-interest
income 154,078 47,811 495,545 121,763
--------- ------- --------- ---------
General & Administrative
Expenses
Salaries & Benefits 232,207 193,059 820,801 587,800
Occupancy & Equipment 61,640 62,592 239,851 231,145
Data & Item Processing 45,305 43,813 176,656 132,556
Advertising & Marketing 14,413 15,671 56,217 53,840
Audit & Professional fees 31,485 20,496 112,359 87,988
Insurance 3,918 3,060 13,384 10,920
Other expenses 98,459 72,000 364,885 260,856
--------- ------- --------- ---------
Total general &
administrative
expenses 487,427 410,691 1,784,153 1,365,105
--------- ------- --------- ---------
Income tax expense
(benefit) -- -- -- --
--------- ------- --------- ---------
Total income (loss) $ 93,332 $(54,714) $ 202,962 $(228,831)
========= ======= ========= =========
Basic Earnings (loss)
per share $ 0.17 $ (0.10) $ 0.37 $ (0.42)
========= ======= ========= =========
Diluted Earnings (loss)
per share $ 0.17 $ (0.10) $ 0.37 $ (0.41)
========= ======= ========= =========