CHINO, Calif., April 21, 2003 (PRIMEZONE) -- The Board of Directors of Chino Commercial Bank, N.A. (OTCBB:CKNA) announced the results of operations for the first quarter of 2003 with net income for the quarter of $116,097 or $0.21 per share, a 905% increase over net income of $12,830 or $.02 per share for the same quarter last year. First quarter earnings were also up 24% as compared with the fourth quarter earnings for 2002, which were $93,332 or $.17 per share. Dann H. Bowman, President and Chief Executive Officer stated, "We are very pleased with the growth of the Bank and the number of new customers who have joined us. This growth has allowed the Bank to increase earnings relatively quickly, and enhance shareholder value."
Total Assets increased by 45% to $45.3 million, as compared with total assets of $31.3 million for at the end of the same quarter last year; and increased 8.8% or $3.7 million as compared to $41.7 million at December 31, 2002. Total Deposits increased 58% to $40.1 million at the end of the first quarter, as compared with $25.3 million at the end of the same quarter last year. Deposits also increased 10% during the first quarter as compared to $36.5 million at December 31, 2002.
The increased earnings for the quarter were primarily due to an increase in the net interest margin of $196,856, coupled with an increase in non-interest income of $66,205. The Bank posted net interest income of $565,426 for the three months ended March 31, 2003 as compared to $378,264 for the same quarter last year. These increases in income were partially offset by an increase in general and administrative expenses of $136,194 resulting from additional volumes of business activity, in addition to an increase in the provision for loan losses of $23,600.
Average interest-earning assets were $40.5 million with average interest-bearing liabilities of $11.1 million yielding a net interest margin of 5.10% for the first quarter of 2003 as compared to average interest-bearing assets of $27.1 million with average interest-bearing liabilities of $9.3 million yielding a net interest margin of 4.71% for the three months ended March 31, 2002.
General and administrative expenses were $521,097 for the three months ended March 31, 2003 as compared to $384,903 for the three months ended March 31, 2002. The largest component of general and administrative expenses was salary and benefits expense of $256,487 for the first quarter of 2003 as compared to $179,816 for the first quarter of 2002. Salary and benefits increased due to higher average full-time equivalent staff, salary increases, lower capitalized loan origination costs, accrued incentive compensation, recruiting expenses, and higher expenses relating to health insurance and workers' compensation for the first quarter of 2003 as compared to first quarter of 2002. Other expenses increased by $24,087 for the comparable three-month period, primarily due to increased supply costs, customer services provided and courier expenses, that were the result of increased business activity. Also increased were audit expenses, which increased $8,281, and Board of Directors' fees, which increased $14,380.
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,
2003 2002
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(unaudited)
ASSETS:
Cash and Due from Banks $ 3,174,678 1,839,367
Federal Funds Sold 5,370,000 2,095,000
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Cash and Cash equivalents 8,544,678 3,934,367
Interest-bearing deposits at banks 1,685,000 1,685,000
Investment Securities available for sale 7,770,202 10,683,120
Investment Securities held to maturity
(fair value approximates $4,698,531 at
March 31, 2003 and $2,596,649 at
December 31, 2002) 4,648,405 2,517,031
Federal Reserve Bank stock, at cost 144,700 144,700
Federal Home Loan Bank stock, at cost 113,200 113,200
Pacific Coast Bankers' Bank stock, at cost 50,000 50,000
Loans
Loans held for sale 3,183,313 4,151,145
Construction 359,346 238,997
Real estate 12,301,406 11,581,157
Commercial 5,245,616 5,272,802
Farm/Agriculture 370,160 373,365
Installment 528,795 470,121
Unearned fees and discounts (23,851) (20,419)
Allowance for loan losses (257,528) (205,615)
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Total Loans 21,707,257 21,861,553
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Fixed Assets, net 417,453 441,866
Accrued Interest Receivable 196,466 162,861
Prepaid & Other Assets 56,011 68,667
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Total Assets $45,333,372 41,662,365
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LIABILITIES:
Deposits
Non-interest Bearing $28,443,474 25,655,491
Interest Bearing
Money market 8,173,773 7,407,219
Savings 489,327 432,811
Time deposits of $100,000 or greater,
due in one year 1,204,854 1,382,281
Time deposits less than $100,000,
due in one year 1,815,240 1,657,526
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Total Deposits 40,126,668 36,535,328
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Fed Funds Purchased -- --
Federal Home Loan Bank Advance -- --
Accrued Interest Payable 26,099 19,649
Accrued Expenses & Other Payables 151,248 171,326
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Total Liabilities 40,304,015 36,726,303
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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, 2003 and December 31, 2002,
respectively 2,728,230 2,728,230
Additional paid-in capital 2,590,893 2,590,893
Accumulated deficit (353,148) (469,245)
Accumlated other comprehensive income 63,382 86,184
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Total Equity 5,029,357 4,936,062
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Total Liabilities & Equity $45,333,372 41,662,365
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CHINO COMMERCIAL BANK
STATEMENT OF OPERATIONS
(unaudited)
For the three months ending
March 31,
2003 2002
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Interest Income
Interest Income - Securities 166,584 175,593
Interest Income - Fed Funds 11,498 11,510
Interest and fee income on Loans 387,344 191,161
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Total Interest Income 565,426 378,264
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Interest Expense
Interest Expense - Deposits 49,467 45,281
Interest Expense - Borrowings -- 13,880
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Total Interest Expense 49,467 59,161
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Total net interest income 515,959 319,103
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Provision for loan losses 38,000 14,400
Total net interest income after
provision for loan losses 477,959 304,703
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Non-interest income
Service Charges on Deposit Accounts 71,224 44,300
Other miscellaneous fee income 732 499
Income from Mortgage Banking 87,279 48,231
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Total Non-interest income 159,235 93,030
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General & Administrative Expenses
Salaries & Benefits 256,487 179,816
Occupancy & Equipment 61,212 56,876
Data & Item Processing 42,404 40,542
Advertising & Marketing 16,880 11,416
Audit & Professional fees 32,169 23,888
Insurance 4,173 3,060
Directors' fees and expenses 14,380 --
Other expenses 93,392 69,305
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Total general & administrative expenses 521,097 384,903
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Income tax expense (benefit) -- --
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Total income (loss) $116,097 $ 12,830
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Basic Earnings (loss) per share $ 0.21 $ 0.02
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Diluted Earnings (loss) per share $ 0.21 $ 0.02
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