CHINO, Calif., July 21, 2003 (PRIMEZONE) -- The Board of Directors of Chino Commercial Bank, N.A. (OTCBB:CKNA) announced the results of operations, for the first six months ending June 30, 2003 with net earnings of $243,895 or $0.45 per share, an increase of 423% over net income of $46,640 or $0.09 per share for the six months ended June 30, 2002. The Bank also reported net profits for the three months ended June 30, 2003, with earnings of $127,798 or $0.23 per share, or an increase of 278% over net income of $33,810 or $0.06 per share for same quarter last year; and a 10% increase over the first quarter of 2003.
The Bank also reported growth in Total assets, which increased to $61.9 million, or a 48.6% rise over $41.7 million at December 31, 2002. Loans also increased to $24.7 million at June 30, 2003 as compared to $21.9 million at December 31, 2002. Total Deposits rose to $56.6 million or 55% at June 30, 2003 as compared to $36.5 million at December 31, 2002. Non-interest bearing deposits exceeded 80% of total deposits at June 30, 2003.
Dann H. Bowman, President and Chief Executive Officer stated, "We are very pleased to report the Bank's year-to-date earnings which reflect a 278% increase over the same period last year, in addition to excellent growth in core deposits."
The Bank posted net interest income of $542,801 for the three months ended June 30, 2003 as compared to $388,313 for the three months ended June 30, 2002. Average interest-earning assets were $45.2 million with average interest-bearing liabilities of $11.0 million yielding a net interest margin of 4.82% for the second quarter of 2003 as compared to average interest-bearing assets of $29.3 million with average interest-bearing liabilities of $9.7 million yielding a net interest margin of 5.30% for the three months ended June 30, 2002.
The Bank posted net interest income of $1,058,760 for the six months ended June 30, 2003 as compared to $707,416 for the six months ended June 30, 2002. Average interest-earning assets were $42.9 million with average interest-bearing liabilities of $11.0 million yielding a net interest margin of 4.94% for the six months ended June 30, 2003 as compared to average interest-bearing assets of $28.2 million with average interest-bearing liabilities of $9.5 million yielding a net interest margin of 5.02% for the six months ended June 30, 2002.
General and administrative expenses were $542,072 for the three months ended June 30, 2003 as compared to $438,889 for the three months ended June 30, 2002. General and administrative expenses were $1,063,169 for the six months ended June 30, 2003 as compared to $823,792 for the six months ended June 30, 2002. The largest component of general and administrative expenses was salary and benefits expense of $275,968 for the three months ended June 30, 2003 as compared to $186,486 for the three months ended June 30, 2002. Salary and benefits expense were $532,455 for the six months ended June 30, 2003 as compared to $366,302 for the six months ended June 30, 2002. The increase in Salary and benefits expense are reflective of the increase in full-time employees which expanded over the past year from fourteen employees to twenty employees. Other components of salary and benefits impacting the increase were incentive compensation and the increase in health and workers compensation expenses. Other components of general and administrative expenses that affected the increase were Other expenses that increased by $5,341 for the comparable three months period and increased by $33,511 for the comparable six month period due primarily to client service charges and courier expenses, that were effected by an increase in escrow deposits; as well as, seminar and training expenses. Audit and Professional fees increased by $5,729 for the comparable three month period and increased by $14,010 for the comparable six month period primarily due to increase of internal operational and information technology audits being conducted in 2003.
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
June 30, December 31,
2003 2002
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(unaudited)
ASSETS:
Cash and Due from Banks $ 5,466,207 1,839,367
Federal Funds Sold 14,240,000 2,095,000
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Cash and Cash equivalents 19,706,207 3,934,367
Interest-bearing deposits at banks 2,089,000 1,685,000
Investment Securities available for sale 9,324,572 10,683,120
Investment Securities held to maturity
(fair value approximates $5,173,735 at
June 30, 2003 and $2,596,649 at
December 31, 2002) 5,054,356 2,517,031
Federal Reserve Bank stock, at cost 150,900 144,700
Federal Home Loan Bank stock, at cost 164,800 113,200
Pacific Coast Bankers' Bank stock, at cost 50,000 50,000
Loans
Loans held for sale 3,674,943 4,151,145
Construction 322,241 238,997
Real estate 14,861,933 11,581,157
Commercial 5,201,140 5,272,802
Farm/Agriculture 367,023 373,365
Installment 640,427 470,121
Unearned fees and discounts (39,035) (20,419)
Allowance for loan losses (294,028) (205,615)
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Total Loans 24,734,644 21,861,553
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Fixed Assets, net 411,202 441,866
Accrued Interest Receivable 184,090 162,861
Prepaid & Other Assets 58,588 68,667
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Total Assets $ 61,928,359 41,662,365
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LIABILITIES:
Deposits
Non-interest Bearing $ 45,423,071 25,655,491
Interest Bearing
Money market 7,767,918 7,407,219
Savings 478,025 432,811
Time deposits of $100,000 or greater,
due in one year 1,107,850 1,382,281
Time deposits less than $100,000,
due in one year 1,811,158 1,657,526
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Total Deposits 56,588,022 36,535,328
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Fed Funds Purchased -- --
Federal Home Loan Bank Advance -- --
Accrued Interest Payable 29,130 19,649
Accrued Expenses & Other Payables 162,890 171,326
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Total Liabilities 56,780,042 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 June 30, 2003 and
December 31, 2002, respectively 2,728,230 2,728,230
Additional paid-in capital 2,590,893 2,590,893
Accumulated deficit (225,350) (469,245)
Accumlated other comprehensive income 54,544 86,184
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Total Equity 5,148,317 4,936,062
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Total Liabilities & Equity $ 61,928,359 41,662,365
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CHINO COMMERCIAL BANK
Statement of Operations
(unaudited)
For the 3 months For the 6 months
ending June 30, ending June 30,
2003 2002 2003 2002
------- -------- --------- ---------
Interest Income
Interest Income - Securities $165,517 184,872 332,101 360,465
Interest Income - Fed Funds 21,344 4,447 32,842 15,957
Interest and fee income
on Loans 403,420 252,888 790,764 444,049
------- -------- --------- ---------
Total Interest Income 590,281 442,207 1,155,707 820,471
------- -------- --------- ---------
Interest Expense
Interest Expense - Deposits 47,480 49,795 96,947 95,076
Interest Expense - Borrowings -- 4,099 -- 17,979
------- -------- --------- ---------
Total Interest Expense 47,480 53,894 96,947 113,055
------- -------- --------- ---------
Total net interest income 542,801 388,313 1,058,760 707,416
------- -------- --------- ---------
Provision for loan losses 12,000 21,000 50,000 35,400
------- -------- --------- ---------
Total net interest income
after provision for loan
losses 530,801 367,313 1,008,760 672,016
------- -------- --------- ---------
Non-interest income
Service Charges on Deposit
Accounts 80,193 55,996 151,417 100,296
Other miscellaneous fee income 1,089 1,809 1,821 2,308
Income from Mortgage Banking 57,787 47,581 145,066 95,812
------- -------- --------- ---------
Total Non-interest income 139,069 105,386 298,304 198,416
------- -------- --------- ---------
General & Administrative Expenses
Salaries & Benefits 275,968 186,486 532,455 366,302
Occupancy & Equipment 62,109 59,524 123,321 116,400
Data & Item Processing 41,963 47,748 85,610 88,290
Advertising & Marketing 15,989 12,496 32,869 23,912
Audit & Professional fees 35,220 29,491 67,389 53,379
Insurance 4,789 3,060 8,962 6,120
Directors' fees and expenses 15,412 14,803 29,792 20,129
Other expenses 90,622 85,281 182,771 149,260
------- -------- --------- ---------
Total general & administrative
expenses 542,072 438,889 1,063,169 823,792
------- -------- --------- ---------
Income tax expense (benefit) -- -- -- --
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Total income (loss) $127,798 $ 33,810 $ 243,895 $ 46,640
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Basic Earnings (loss) per
share $ 0.23 $ 0.06 $ 0.45 $ 0.09
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Diluted Earnings (loss) per
share $ 0.23 $ 0.06 $ 0.43 $ 0.08
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