CHINO, Calif., Jan. 22, 2007 (PRIME NEWSWIRE) -- The Board of Directors of Chino Commercial Bancorp (OTCBB:CCBC), the parent company of Chino Commercial Bank NA, announced the results of operations for the Bank and the consolidated holding company for the three and twelve months ended December 31, 2006 with net income of $1,009,556, a 14.1% increase over net income of $885,173 for 2005. Net income per share for the year ended December 31, 2006 was $1.23 as compared to $1.08 per share for the year ended December 31, 2005. Net income per fully diluted share was $1.14 as compared to $1.00 per diluted share for fiscal year 2005.
Net income for the fourth quarter ended December 31, 2006 was $254,911 or $0.29 per diluted share, a 5.1% decrease compared to $268,666 or $0.30 per diluted share for the fourth quarter of 2005.
Dann H. Bowman, President and Chief Executive Officer stated, "We are very pleased with the continued growth and profitability of the Bank. Having opened the Ontario Branch in 2006, we are expanding into new markets which are very promising. During the year we also formed the bank holding company which allows the Bank greater financial flexibility for future growth and development. Net earnings represent a return on beginning equity of 15% and a return of average assets of 1.14%. Total loans increased this year by 21.8%, allowing the Bank to show improved stability of earnings and efficiency. Along with this growth, at fiscal year end the Bank reported no loan delinquencies and no loan losses for the entire year."
Financial Condition
At December 31, 2006, total assets were $90.4 million, a reduction of $843 thousand or 0.9% from December 31, 2005.
Net loans increased to $51.0 million at December 31, 2006 from $41.8 million at December 31, 2005 or an increase of 22.0%. The growth was primarily in real estate secured lending.
Total deposits decreased by 5.4% to $79.5 million at December 31, 2006 a decline from $84.0 million at December 31, 2005. Although we experienced a slight decrease in core deposits of 6.4%, from 81.8 million at December 31, 2005 to $76.6 million at December 31, 2006, our core deposits to total deposits remains very favorable at 96.4%.
Chino Commercial Bank's risk-based capital ratios were 12.53% for Tier 1 capital, 13.56% for Risk-based capital and 7.88% for Leverage capital on December 31, 2006.
Earnings
The Company posted net interest income of $4,608,058 for the year ended December 31, 2006 as compared to $4,001,071 for the year ended December 31, 2005. Average interest-earning assets were $80.4 million with average interest-bearing liabilities of $25 million yielding a net interest margin of 5.73% for the year ended December 31, 2006 as compared to average interest-bearing assets of $78.0 million with average interest-bearing liabilities of $18.2 million yielding a net interest margin of 5.13% for the year ended December 31, 2005. The 60 basis points increase in the net interest margin was the result of the higher average balances as the Bank continues to grow and the effect of upward re-pricing of the benchmark for Federal funds.
The Bank posted net interest income of $1,165,037 for the three months ended December 31, 2006 as compared to $1,103,311 for the three months ended December 31, 2005. Average interest-earning assets were $81.1 million with average interest-bearing liabilities of $28.2 million yielding a net interest margin of 5.75% for the fourth quarter of 2006 as compared to average interest-bearing assets of $82.9 million with average interest-bearing liabilities of $21.6 million yielding a net interest margin of 5.32% for the three months ended December 31, 2005.
Non-interest income totaled $670,741 or an increase of 21.2% from $553,272 earned during the year ended December 31, 2005. Service charges on deposit accounts increased 23.2% to $568,794 due to higher volume of deposit accounts.
Non-interest income totaled $196,810 or a 46.1% increase from the fourth quarter of 2005. Service charges on deposit accounts increased 35.3% to $155,534 due to increased overdraft and return item charges.
General and administrative expenses were $959,782 for the three months ended December 31, 2006 as compared to $753,250 for the three months ended December 31, 2005. General and administrative expenses were $3,599,043 for the year ended December 31, 2006 as compared to $2,965,458 for the year ended December 31, 2005. The largest component of general and administrative expenses was salary and benefits expense of $503,920 for the three months ended December 31, 2006 as compared to $385,900 for the three months ended December 31, 2005. Salary and benefits expense were $1,779,195 for the year ended December 31, 2006 as compared to $1,451,897 for the year ended December 31, 2005. The increase in Salaries and benefits expenses were reflective of the staff increases required due to the opening of a second branch office, salary increases, incentive compensation, and the increase in retirement plan accruals. Other components of general and administrative expenses that affected the increase were Occupancy and Equipment expenses which increased by $28,566 for the comparable three month period and increased by $141,902 for the comparable twelve month period due to the opening of the Ontario branch office in January 2006. Other expenses increased by $36,922 for the comparable three month period and increased by $59,243 for the comparable twelve month period due primarily to increased costs of courier and accounting services provided to certain large customers.
Income tax expense was $147,154 for the three months ended December 31, 2006 as compared to $173,640 for the three months ended December 31, 2005. Income tax expenses were $627,464 for the year ended December 31, 2006 as compared to $566,619 for the year ended December 31, 2005. The effective income tax rate for 2005 and 2006 is approximately 39%.
The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about the Bank's plans, objectives, management's expectations, intentions, relationships, opportunities, and technology and market condition statements. When used in these presentations, the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," or words of similar meaning, or future or conditional verbs, such as "will," "would," "should," "could," or "may" are generally intended to identify forward-looking statements. These forward-looking statements are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Bank's control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the results discussed in these forward-looking statements for the reasons, among others, discussed in Bank's Annual Report on Form 10-KSB for the year ended December 31, 2006, which include: changes in general business and economic conditions may significantly affect the Bank's earnings; changes in level of market interest rates; changes in credit risks of lending activities and competitive factors; effective income tax rates, relationships with major customers, extent and timing of legislative and regulatory actions and reforms. The Bank is not obligated to update and does not undertake to update any of its forward-looking statements made herein.
CHINO COMMERCIAL BANCORP
STATEMENTS OF FINANCIAL CONDITION
Consolidated Bank Bank
Bancorp Only Only
December 31, December 31, December 31,
2006 2006 2005
----------- ----------- -----------
(unaudited) (unaudited)
ASSETS:
Cash and Due from Banks $ 4,201,391 $ 4,201,391 $ 5,328,842
Federal Funds Sold 10,775,000 10,775,000 11,370,000
----------- ----------- -----------
Cash and Cash equivalents 14,976,391 14,976,391 16,698,842
Interest-bearing deposits at
banks 2,541,000 2,541,000 6,030,000
Investment Securities
available for sale 11,839,152 11,839,152 16,311,377
Investment Securities held to
maturity (fair value
approximates $4,696,000 at
December 31, 2006 and
$5,764,134 at December 31,
2005) 4,784,277 4,784,277 5,850,687
Federal Reserve Bank stock,
at cost 159,600 159,600 159,600
Federal Home Loan Bank stock,
at cost 417,900 417,900 362,600
Pacific Coast Bankers' Bank
stock, at cost 50,000 50,000 50,000
----------- ----------- -----------
Total investments 19,791,929 19,791,929 28,764,264
----------- ----------- -----------
Loans
Construction 1,925,067 1,925,067 2,790,712
Real estate 37,516,291 37,516,291 30,444,344
Commercial 11,660,967 11,660,967 8,295,573
Farm/Agriculture 0 0 330,920
Installment 670,765 670,765 633,504
Unearned fees and discounts (136,045) (136,045) (144,106)
Allowance for loan losses (615,808) (615,808) (544,140)
----------- ----------- -----------
Total Loans 51,021,237 51,021,237 41,806,807
----------- ----------- -----------
Fixed Assets, net 2,222,503 2,222,503 1,936,168
Accrued Interest Receivable 385,764 385,764 311,849
Prepaid & Other Assets 2,037,364 1,880,127 1,811,979
----------- ----------- -----------
Total Assets $90,435,188 $90,277,951 $91,329,909
=========== =========== ===========
LIABILITIES:
Deposits
Non-interest Bearing $53,845,147 $53,929,657 $62,610,963
Interest Bearing
Money market 19,907,279 22,422,381 16,793,824
Savings 1,001,135 1,001,135 913,249
Time deposits of $100,000
or greater, due in one year 2,882,340 2,882,340 2,216,104
Time deposits less than
$100,000, due in one year 1,818,235 1,818,235 1,487,803
----------- ----------- -----------
Total Deposits 79,454,136 82,053,748 84,021,943
----------- ----------- -----------
Subordinated Trust 3,093,000 0 0
Accrued Interest Payable 61,477 52,983 28,858
Accrued Expenses & Other
Payables 466,836 426,909 588,068
----------- ----------- -----------
Total Liabilities 83,075,449 82,533,640 84,638,869
----------- ----------- -----------
STOCKHOLDERS' EQUITY
Common Stock, authorized
10,000,000 shares with no
par value, issued and
outstanding 808,214
shares and 818,453 shares
at December 31, 2006 and
December 31, 2005,
respectively 2,691,353 2,750,423 2,728,230
Additional paid-in capital 2,237,930 2,626,580 2,590,600
Retained earnings 2,507,372 2,444,224 1,497,818
Accumulated other
comprehensive loss (76,916) (76,916) (122,608)
----------- ----------- -----------
Total Equity 7,359,739 7,744,311 6,694,040
----------- ----------- -----------
Total Liabilities & Equity $90,435,188 $90,277,951 $91,332,909
=========== =========== ===========
See accompanying notes to the financial statements.
CHINO COMMERCIAL BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
For the For the
three months ending twelve months ending
December 31, December 31,
2006 2005 2006 2005
--------- --------- --------- ---------
Interest Income
Interest Income -
Securities $ 235,742 $ 277,341 $1,107,729 $ 985,773
Interest Income -
Fed Funds 111,079 123,700 373,540 386,707
Interest and fee income
on Loans 1,007,680 781,875 3,638,663 2,888,186
--------- --------- --------- ---------
Total Interest Income 1,354,501 1,182,916 5,119,932 4,260,666
--------- --------- --------- ---------
Interest Expense
Interest Expense -
Deposits 153,490 79,605 474,240 259,595
Interest Expense -
Other Borrowings 35,974 37,634
--------- --------- --------- ---------
Total Interest Expense 189,464 79,605 511,874 259,595
--------- --------- --------- ---------
Net interest income 1,165,037 1,103,311 4,608,058 4,001,071
--------- --------- --------- ---------
Provision for loan losses 0 42,500 42,736 137,093
--------- --------- --------- ---------
Net interest income
after provision for
loan losses 1,165,037 1,060,811 4,565,322 3,863,978
--------- --------- --------- ---------
Non-interest income
Service Charges on
Deposit Accounts 155,532 115,002 568,794 461,678
Other miscellaneous
fee income 23,339 3,309 38,421 9,476
Income from Mortgage
Banking 0 0 0 17,697
Income from Bank Owned
Life Insurance 17,939 16,434 63,526 64,421
--------- --------- --------- ---------
Total Non-interest
income 196,810 134,745 670,741 553,272
--------- --------- --------- ---------
General & Administrative
Expenses
Salaries & Benefits 503,920 385,900 1,779,195 1,451,897
Occupancy & Equipment 97,811 69,245 405,320 263,418
Data & Item Processing 69,985 60,881 253,232 223,603
Advertising & Marketing 25,842 34,154 98,315 127,944
Audit & Professional
fees 53,408 30,895 259,169 163,546
Insurance 5,701 6,197 24,258 24,198
Directors' fees and
expenses 21,402 21,187 87,708 78,249
Other expenses 181,713 144,791 691,846 632,603
--------- --------- --------- ---------
Total general &
administrative
expenses 959,782 753,250 3,599,043 2,965,458
--------- --------- --------- ---------
Income before income
tax expense 402,065 442,306 1,637,020 1,451,792
Income tax expense 147,154 173,640 627,464 566,619
--------- --------- --------- ---------
Total income $ 254,911 $ 268,666 $1,009,556 $ 885,173
========= ========= ========= =========
Basic Earnings per share $ 0.31 $ 0.33 $ 1.23 $ 1.08
========= ========= ========= =========
Diluted Earnings per
share $ 0.29 $ 0.30 $ 1.14 $ 1.00
========= ========= ========= =========
See accompanying notes to the financial statements.
CHINO COMMERCIAL BANK, N. A.
STATEMENTS OF OPERATIONS (Bank only)
(unaudited)
For the For the
three months ending twelve months ending
December 31, December 31,
2006 2005 2006 2005
--------- --------- --------- ---------
Interest Income
Interest Income -
Securities $ 235,742 $ 277,341 $1,107,729 $ 985,773
Interest Income -
Fed Funds 111,079 123,700 373,540 386,707
Interest and fee income
on Loans 1,007,680 781,875 3,638,663 2,888,186
--------- --------- --------- ---------
Total Interest
Income 1,354,501 1,182,916 5,119,932 4,260,666
--------- --------- --------- ---------
Interest Expense
Interest Expense -
Deposits 176,750 79,605 497,500 259,595
Interest Expense -
Other Borrowings 300 1,200
--------- --------- --------- ---------
Total Interest Expense 177,050 79,605 498,700 259,595
--------- --------- --------- ---------
Net interest income 1,177,451 1,103,311 4,621,232 4,001,071
--------- --------- --------- ---------
Provision for loan losses 0 42,500 42,736 137,093
--------- --------- --------- ---------
Net interest income
after provision for
loan losses 1,177,451 1,060,811 4,578,496 3,863,978
--------- --------- --------- ---------
Non-interest income
Service Charges on
Deposit Accounts 155,532 115,002 568,794 461,678
Other miscellaneous fee
income 23,339 3,309 38,421 9,476
Income from Mortgage
Banking 0 0 0 17,697
Income from Bank Owned
Life Insurance 17,939 16,434 63,526 64,421
--------- --------- --------- ---------
Total Non-interest
income 196,810 134,745 670,741 553,272
--------- --------- --------- ---------
General & Administrative
Expenses
Salaries & Benefits 489,750 385,900 1,750,231 1,451,897
Occupancy & Equipment 97,811 69,245 405,320 263,418
Data & Item Processing 69,985 60,881 253,232 223,603
Advertising & Marketing 25,842 34,154 98,315 127,944
Audit & Professional fees 40,611 30,895 176,241 163,546
Insurance 5,701 6,197 24,258 24,198
Directors' fees and
expenses 19,872 21,187 84,648 78,249
Other expenses 172,766 144,791 663,885 632,603
--------- --------- --------- ---------
Total general &
administrative
expenses 922,338 753,250 3,456,130 2,965,458
--------- --------- --------- ---------
Income before income tax
expense 451,923 442,306 1,793,107 1,451,792
Income tax expense 167,709 173,640 691,701 566,619
--------- --------- --------- ---------
Total income $ 284,214 $ 268,666 $1,101,406 $ 885,173
========= ========= ========= =========
See accompanying notes to the financial statements.