CHINO, Calif., Oct. 24, 2005 (PRIMEZONE) -- The Board of Directors of Chino Commercial Bank, N.A. announced the results of operations for the three months ended September 30, 2005 with net income of $243,810 or $0.28 per diluted share, a 56.3% increase over net income of $155,970 or $0.18 per diluted share for the third quarter of 2004. Net income for the nine months ended September 30, 2005 was $616,507 or $0.70 per diluted share, a 49.9% increase over net income of $411,196 or $0.47 per diluted share for the nine months ended September 30, 2004. Dann H. Bowman, President and Chief Executive Officer stated, "We are extremely pleased with the continued strong growth and profitability of the Bank during the first three quarters of this year."
During the nine months ended September 30, 2005, Total Assets increased by 14.4% to $88.2 million from $77.1 million at December 31, 2004. Total Deposits increased 14.6% to $81.1 million at September 30, 2005 as compared to $70.7 million at December 31, 2004. Total Loans increased 15.1% to $39.6 million at September 30, 2005 as compared to $34.4 million at December 31, 2004. On September 30, 2005, the Bank had no delinquent loans over 30 days and no non-accrual or non-performing loans or other real estate owned.
The increased earnings for the nine months ended September 30, 2005 were primarily due to an increase in the net interest margin of $800,280. The Bank posted net interest income of $2,897,760 for the nine months ended September 30, 2005, an increase of $800,280 or 38.2%, as compared to $2,097,480 for the same period last year. These increases in income were partially offset by an increase in general and administrative expenses of $397,886 resulting from increased Salary and benefits expense and Other expenses. The Bank posted net interest income of $1,018,005 for the three months ended September 30, 2005, an increase of $246,496 or 31.9%, as compared to $771,509 for the same quarter last year. This increase in income was partially offset by an increase in general and administrative expenses of $70,437 resulting from increases in salary and benefits expense, marketing and data and item processing fees.
Average interest-earning assets were $76.3 million with average interest-bearing liabilities of $17.1 million yielding a net interest margin of 5.08% for the nine months ended September 30, 2005 as compared to average interest-bearing assets of $63.4 million with average interest-bearing liabilities of $13.4 million yielding a net interest margin of 4.42% for the nine months ended September 30, 2004. The increase in net interest margin coincides with the growth in the loan portfolio and the steady rise in short-term yields on short term investments.
Average interest-earning assets were $81.4 million with average interest-bearing liabilities of $19.4 million yielding a net interest margin of 5.00% for the three months ended September 30, 2005 as compared to average interest-bearing assets of $69.6 million with average interest-bearing liabilities of $14.3 million yielding a net interest margin of 4.43% for the three months ended September 30, 2004.
General and administrative expenses were $2,212,208 for the nine months ended September 30, 2005 as compared to $1,814,322 for the nine months ended September 30, 2004. The largest component of general and administrative expenses was salary and benefits expense of $1,065,997 for the nine months ended September 30, 2005 as compared to $908,506 for the nine months ended September 30, 2004. Salary and benefits increased due to higher average full-time equivalent staff, salary increases, retirement accrual and accrued incentive compensation for the nine months ended September 30, 2005 as compared to the nine months ended September 30, 2004. Also increased were Marketing expenses, which increased $30,256, and Other expenses, which increased $177,033 due primarily to client service charges and the reserve for undisbursed credit losses.
General and administrative expenses were $720,792 for the three months ended September 30, 2005 as compared to $650,355 for the three months ended September 30, 2004. The largest component of general and administrative expenses was salary and benefits expense of $348,456 for the third quarter of 2005 as compared to $306,428 for the third quarter of 2004. Salary and benefits increased due to higher average full-time equivalent staff, salary increases, and accrued incentive compensation for the third quarter of 2005 as compared to third quarter of 2004. Also increased were Advertising and marketing expenses, which increased $15,510 for marketing campaigns.
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 N. A.
STATEMENTS OF FINANCIAL CONDITION
September 30, December 31,
2005 2004
-------------- --------------
(unaudited)
ASSETS:
Cash and Due from
Banks $ 4,992,378 $ 2,374,688
Federal Funds Sold 10,610,000 10,925,000
-------------- --------------
Cash and Cash equivalents 15,602,378 13,299,688
Interest-bearing
deposits at banks 6,229,000 6,271,000
Investment Securities
available for sale 16,508,252 15,562,826
Investment Securities held to
maturity (fair value
approximates $6,218,435 at
September 30, 2005 and
$4,859,395 at December 31, 2004) 6,225,418 4,801,024
Federal Reserve Bank
stock, at cost 159,600 159,600
Federal Home Loan Bank
stock, at cost 358,500 283,500
Pacific Coast Bankers'
Bank stock, at cost 50,000 50,000
Loans
Construction 2,478,187 3,520,772
Real estate 30,015,165 23,886,582
Commercial 7,011,098 6,596,517
Farm/Agriculture 334,895 346,261
Installment 416,969 573,556
Unearned fees and discounts (147,851) (119,328)
Allowance for loan losses (501,640) (407,046)
-------------- --------------
Total Loans 39,606,823 34,397,314
-------------- --------------
Fixed Assets, net 1,446,142 389,965
Accrued Interest Receivable 286,271 258,528
Prepaid & Other Assets 1,694,957 1,612,617
-------------- --------------
Total Assets $ 88,167,341 $ 77,086,062
============== ==============
LIABILITIES:
Deposits
Non-interest Bearing $ 60,483,000 $ 56,112,375
Interest Bearing
Money market 16,086,523 10,231,507
Savings 915,759 926,275
Time deposits of $100,000
or greater, due in one
year 2,105,477 1,802,181
Time deposits less than
$100,000, due in one year 1,494,358 1,668,794
-------------- --------------
Total Deposits 81,085,117 70,741,132
-------------- --------------
Accrued Interest Payable 26,409 20,642
Accrued Expenses & Other Payables 581,617 422,994
-------------- --------------
Total Liabilities 81,693,143 71,184,768
-------------- --------------
STOCKHOLDERS' EQUITY
Common Stock, authorized 10,000,000
shares with a par value of $3.33 per
share; issued and outstanding 818,453
shares at September 30,
2005 and December 31, 2004 2,728,230 2,728,230
Additional paid-in capital 2,590,600 2,590,600
Retained earnings 1,229,152 612,645
Accumulated other
comprehensive loss (73,784) (30,181)
-------------- --------------
Total Equity 6,474,198 5,901,294
-------------- --------------
Total Liabilities
& Equity $ 88,167,341 $ 77,086,062
============== ==============
CHINO COMMERCIAL BANK, N. A.
STATEMENTS OF OPERATIONS
(unaudited)
For the three months For the nine months
ending September 30, ending September 30,
2005 2004 2005 2004
---------- -------- ---------- ----------
Interest Income
Interest
Income -
Securities $ 254,125 $226,416 $ 708,432 $ 543,128
Interest Income
- Fed Funds 128,302 34,797 263,007 94,265
Interest and
fee income on
Loans 706,492 555,208 2,106,311 1,583,618
---------- -------- ---------- ----------
Total Interest
Income 1,088,919 816,421 3,077,750 2,221,011
---------- -------- ---------- ----------
Interest Expense
Interest
Expense -
Deposits 70,914 44,912 179,990 123,531
---------- -------- ---------- ----------
Total Interest
Expense 70,914 44,912 179,990 123,531
---------- -------- ---------- ----------
Net interest
income 1,018,005 771,509 2,897,760 2,097,480
---------- -------- ---------- ----------
Provision for
loan losses 41,175 11,837 94,593 49,000
---------- -------- ---------- ----------
Net interest
income after
provision for
loan losses 976,830 759,672 2,803,167 2,048,480
---------- -------- ---------- ----------
Non-interest
income
Service Charges
on Deposit
Accounts 126,141 109,182 346,676 309,021
Other
miscellaneous
fee income 2,005 1,454 6,167 4,288
Income from
Mortgage
Banking 0 8,073 17,697 53,934
Income from
Bank Owned
Life Insurance 16,514 16,310 47,987 43,374
---------- -------- ---------- ----------
Total
Non-interest
income 144,660 135,019 418,527 410,617
---------- -------- ---------- ----------
General &
Administrative
Expenses
Salaries &
Benefits 348,456 306,428 1,065,997 908,506
Occupancy &
Equipment 67,061 65,692 194,173 188,341
Data & Item
Processing 57,940 48,988 162,722 143,997
Advertising &
Marketing 33,991 18,481 93,790 63,534
Audit &
Professional
fees 37,380 38,561 132,651 133,627
Insurance 6,037 5,782 18,001 17,094
Directors'
fees and
expenses 19,255 17,734 57,062 48,444
Other expenses 150,672 148,689 487,812 310,779
---------- -------- ---------- ----------
Total general
&
administrative
expenses 720,792 650,355 2,212,208 1,814,322
---------- -------- ---------- ----------
Income before
income tax
expense 400,698 244,336 1,009,486 644,775
Income tax
expense 156,888 88,366 392,979 233,579
---------- -------- ---------- ----------
Total income $ 243,810 $155,970 $ 616,507 $ 411,196
========== ======== ========== ==========
Basic Earnings
per share (a) $ 0.30 $ 0.19 $ 0.75 $ 0.50
========== ======== ========== ==========
Diluted Earnings
per share (a) $ 0.28 $ 0.18 $ 0.70 $ 0.47
========== ======== ========== ==========
(a) The 2004 earnings per share calculations have been adjusted for
the 3 for 2 stock split declared to shareholders of record on
May 20, 2004.
CHINO COMMERCIAL BANK
Selected Financial Highlights
For the three months For the nine months
ended September 30, ended September 30,
----------------------- ------------------------
2005 2004 2005 2004
---------- ---------- ---------- -----------
Selected Operating Data:
Net interest
income $1,018,005 $ 771,509 $2,897,760 $2,097,480
Provision for
loan losses 41,175 11,837 94,593 49,000
Non-interest
income 144,660 135,019 418,527 410,617
Non-interest
expense 720,792 650,355 2,212,208 1,814,322
Net income $ 243,810 $ 155,970 $ 616,507 $ 411,196
Share Data:
Basic income
per share $ 0.30 $ 0.19 $ 0.75 $ 0.50
Diluted Income
per share $ 0.28 $ 0.18 $ 0.70 $ 0.47
Weighted average
common shares
outstanding
Basic 818,453 818,453 818,453 818,453
Diluted 885,400 884,278 884,134 880,512
Performance Ratios:
Return on average
assets 1.11% 0.81% 0.99% 0.79%
Return on average
equity 15.21% 10.92% 13.23% 9.81%
Equity to total
assets at the end
of the period 7.34% 7.35% 7.34% 7.35%
Net interest
spread 3.89% 3.44% 3.97% 3.44%
Net interest
margin 5.00% 4.43% 5.08% 4.42%
Average interest-
earning assets
to average-bearing
liabilities 420.74% 486.89% 447.13% 472.60%
Core efficiency
ratio 68.77% 71.55% 69.19% 73.10%
Non-interest expense
to average
assets 3.56% 3.39% 3.61% 3.54%
Selected Balance Sheet Data:
9/30/2005 12/31/2004
--------- ----------
Total assets $ 88,167,341 $ 77,086,062
Investment
securities
held
to maturity 6,225,418 4,801,024
Investment
securities
available
for
sale 16,508,252 15,562,826
Loan receivable,
net 39,606,823 34,397,314
Deposits 81,085,117 70,741,132
Non-interest
bearing
deposits 60,483,000 56,112,375
Stockholders'
equity $ 6,474,198 $ 5,901,294
Regulatory capital ratios:
Average equity
to average assets 7.51% 8.00%
Leverage capital 7.42% 8.36%
Tier I risk based 12.44% 13.80%
Risk-based capital 13.51% 14.81%
Asset Quality Ratios:
Allowance for loan
losses as a percent
of gross loans
receivable 1.25% 1.17%
Net charge-offs
to average loans n/a n/a
Non-performing
loans to total
loans n/a n/a
Number of full-
service customer
facilities 1 1