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CST: 27/05/2019 08:20:54   

Chino Commercial Bancorp Reports 23% Increase in Net Earnings

37 Days ago

CHINO, Calif., April 19, 2019 (GLOBE NEWSWIRE) -- The Board of Directors of Chino Commercial Bancorp (OTC: CCBC), the parent company of Chino Commercial Bank, N.A., announced the results of operations for the Bank and the consolidated holding company, for the first quarter ended March 31, 2019, with net earnings of $625 thousand, or an increase of 23%, compared with net income of $509 thousand for the same quarter last year.  Net income per basic and diluted share was $0.34 for the first quarter of 2019 and $0.27 for the same quarter 2018, respectively.   

Dann H. Bowman, President and Chief Executive Officer stated, “The economic strength of the Inland Empire is supporting tremendous growth opportunities for the Bank, and the first quarter marked new record levels for total assets, loans, revenue and net earnings.  In general, this is a very good time for the Bank and we are pleased and excited about the future.”

Financial Condition

At March 31, 2019, total assets were $209.5 million, an increase of $7.5 million or 3.7% over $201.9 million at December 31, 2018.  Total deposits increased by 2.8% or $4.8 million during the first quarter to $175.8 million, compared to $171.0 million as of December 31, 2018. At March 31, 2019, the Company’s core deposits represent 94.2% of the total deposits.

Gross loans increased by 2.6% or $3.5 million as of March 31, 2019 to $135.7 million, as compared with $132.2 million as of December 31, 2018.  The Bank did not have any nonperforming loans for the quarter ended March 31, 2019, and as of December 31, 2018, respectively.  OREO properties remained at zero as of March 31, 2019 and December 31, 2018, respectively.

Earnings

The Company posted net interest income of $2.0 million and $1.7 million for the three months ended March 31, 2019 and 2018, respectively, or an increase of $309 thousand or 17.9%.  Average interest-earning assets were $187.3 million with average interest-bearing liabilities of $98.6 million, yielding a net interest margin of 4.40% for the first quarter of 2019, as compared to the average interest-earning assets of $173.5 million with average interest-bearing liabilities of $91.0 million, yielding a net interest margin of 4.03% for the first quarter of 2018.

Non-interest income totaled $425 thousand for the first quarter of 2019, or an increase of 10.0% as compared with $386.5 thousand earned during the same quarter last year. Service charges on deposit accounts, the largest component of non-interest income, increased by $49.0 thousand or 16.0% to $356 thousand, primarily due to an increase in income from returned items, overdraft charges, and analysis fees.

General and administrative expenses were $1.5 million for the three months ended March 31, 2019, and $1.4 million for the same period last year.  The largest component of general and administrative expenses was salary and benefits expense of $1.0 million for the first quarter of 2019, as compared to $869 thousand for the same quarter last year. Occupancy and equipment expenses increased by $38 thousand or 33.6% to $153 thousand in the first quarter of 2019 from $115 thousand for the same period last year.  The increase in occupancy and equipment is mostly attributed to opening the Upland branch in the fourth quarter of 2018.

Income tax expense was $251 thousand which represents an increase of $48.6 thousand or 24.03% for the three months ended March 31, 2019 as compared to $202.5 thousand for the three months ended March 31, 2018. The effective income tax rate for the first quarters of 2019 and 2018 is approximately 28.7% and 28.5%, respectively. 

Forward-Looking Statements

The statements contained in this press release that are not historical facts are forward-looking statements based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company.  Readers are cautioned not to unduly rely on forward-looking statements.  Actual results may differ from those projected. These forward-looking statements involve risks and uncertainties, including but not limited to, the health of the national and California economies, the Company’s ability to attract and retain skilled employees, customer service expectations, the Company’s ability to successfully deploy new technology and gain efficiencies therefrom, and changes in interest rates, loan portfolio performance, and other factors.

Contact: Dann H. Bowman, President and CEO or Melinda M. Milincu, Vice President and CFO, Chino Commercial Bancorp and Chino Commercial Bank, N.A., 14245 Pipeline Avenue, Chino, Ca. 91710, (909) 393-8880.

           
  CHINO COMMERCIAL BANCORP  
  CONSOLIDATED BALANCE SHEET  
  March 31, 2019 and December 31, 2018  
     
    March 31, 2019   December 31, 2018  
    (unaudited)   (audited)  
  ASSETS:        
  Cash and due from banks $ 20,066,672     $   25,451,866    
  Total cash and cash equivalents   20,066,672       25,451,866    
           
  Interest-bearing deposits in other banks   1,988,000         1,988,000    
  Investment securities available for sale   5,644,987       5,914,736    
  Investment securities held to maturity (fair value approximates        
  $36,019,665 at March 31, 2019 and $26,092,226 at December 31, 2018)   36,312,327       26,623,343    
  Total investments   43,945,314       34,526,079    
  Loans        
  Construction     -          -     
  Real estate   112,066,869       107,902,821    
  Commercial   23,365,834       24,029,989    
  Installment   231,892       241,077    
  Gross loans   135,664,595       132,173,887    
  Unearned fees and discounts   (316,765 )     (345,054 )  
  Loans net of unearned fees and discount   135,347,830       131,828,833    
  Allowance for loan losses   (2,352,700 )     (2,292,478 )  
   Net loans   132,995,130       129,536,355    
           
  Fixed assets, net   6,007,030       6,063,350    
  Accrued interest receivable   682,064       585,506    
  Stock investments, restricted, at cost   1,248,400       1,248,400    
  Bank-owned life insurance   3,508,396       3,484,885    
  Other assets   1,077,240       1,091,805    
  Total assets $   209,530,246     $   201,988,246    
           
  LIABILITIES:        
  Deposits        
  Non-interest bearing  $   78,750,774     $   83,237,014    
  Interest bearing        
  NOW and money market   73,113,787       66,046,085    
  Savings   9,854,601       9,870,263    
  Time deposits less than $250,000   8,947,155       4,191,717    
  Time deposits of $250,000 or greater   5,140,705       7,674,742    
  Total deposits   175,807,022       171,019,821    
           
  Accrued interest payable   93,838       64,794    
  Borrowings from Federal Home Loan Bank (FHLB)     7,000,000         5,000,000    
  Accrued expenses & other payables   1,186,202       1,101,417    
  Subordinated notes payable to subsidiary trust   3,093,000       3,093,000    
  Total liabilities   187,180,062       180,279,032    
           
  SHAREHOLDERS' EQUITY        
  Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 1,859,132 shares at March 31, 2019 and December 31, 2018, respectively.        
         
    10,502,557       10,502,557    
  Retained earnings   11,876,425       11,251,915    
  Accumulated other comprehensive income/(loss)   (28,798 )     (45,258 )  
  Total shareholders' equity   22,350,184       21,709,214    
  Total liabilities & shareholders' equity $   209,530,246     $   201,988,246    
           
           

 

             
  CHINO COMMERCIAL BANCORP  
  CONSOLIDATED STATEMENTS OF NET INCOME  
     
    For the three months ended    
    March 31    
      2019       2018      
    (unaudited)   (unaudited)    
  Interest income          
  Interest and fee income on loans  $   1,951,881     $   1,659,877      
  Interest on federal funds sold and FRB deposits     70,411         97,724      
  Interest on time deposits in banks     11,887         3,956      
  Interest on investment securities     266,232         140,573      
  Total interest income   2,300,411       1,902,130      
             
  Interest Expense          
  Interest on deposits   217,017       87,244      
  Other borrowings   49,431       89,636      
  Total interest expense   266,448       176,880      
  Net interest income   2,033,963       1,725,250      
  Provision for loan losses     40,000         50,000      
             
  Net interest income after provision for loan losses   1,993,963       1,675,250      
             
  Non-interest income          
  Service charges on deposit accounts   356,065       307,037      
  Other miscellaneous income   22,975       19,196      
  Dividend income from restricted stock   22,474       35,834      
  Income from bank-owned life insurance   23,512       24,453      
  Total non-interest income   425,026       386,520      
             
  Non-interest expenses          
  Salaries and employee benefits   1,010,328       868,915      
  Occupancy and equipment   153,132       114,656      
  Data and item processing   104,899       91,636      
  Advertising and marketing   6,318       28,586      
  Legal and professional fees   33,418       33,198      
  Regulatory assessments   29,435       33,128      
  Insurance   9,005       8,559      
  Directors' fees and expenses   33,769       30,759      
  Other expenses   162,978       140,986      
  Total non-interest expenses   1,543,282       1,350,423      
  Income before income tax expense   875,707       711,347      
  Income tax expense   251,197       202,534      
  Net income $   624,510     $   508,813      
             
  Basic earnings per share  $   0.34     $   0.27      
  Diluted earnings per share  $   0.34     $   0.27      
             
  Tax rate   28.7 %     28.5 %    
             

 

               
  CHINO COMMERCIAL BANCORP  
               
      For the three months ended    
      March 31    
        2019       2018      
  KEY FINANCIAL RATIOS            
  (unaudited)            
  Annualized return on average equity     11.33 %     10.27 %    
  Annualized return on average assets     1.24 %     1.02 %    
  Net interest margin     4.40 %     4.03 %    
  Core efficiency ratio     62.76 %     63.95 %    
  Net chargeoffs/(recoveries) to average loans     -0.010 %     -0.01 %    
               
  AVERAGE BALANCES            
  (thousands, unaudited)            
  Average assets   $   201,500     $   199,089      
  Average interest-earning assets   $   187,315     $   173,525      
  Average gross loans   $   136,882     $   122,699      
  Average deposits   $   171,868     $   147,053      
  Average equity   $   22,051     $   19,822      
               
               
               
  CREDIT QUALITY   End of period    
  (unaudited)   March 31, 2019   December 31, 2018    
               
  Non-performing loans   $   -     $   -      
               
  Non-performing loans to total loans     0.00 %     0.00 %    
  Non-performing loans to total assets     0.00 %     0.00 %    
  Allowance for loan losses to total loans     1.73 %     1.73 %    
  Nonperforming assets as a percentage of total loans and OREO     0.00 %     0.00 %    
  Allowance for loan losses to non-performing loans     n/a       n/a      
               
  OTHER PERIOD-END STATISTICS            
  (unaudited)            
  Shareholders equity to total assets     10.67 %     10.75 %    
  Net loans to deposits     75.65 %     75.74 %    
  Non-interest bearing deposits to total deposits     44.79 %     48.67 %    
  Total capital to total risk-weighted assets     19.18 %     19.19 %    
  Tier 1 capital to total risk-weighted assets     21.00 %     20.93 %    
  Tier 1 leverage ratio     14.80 %     14.80 %    
  Common equity tier 1     21.00 %     20.93 %    
               

 

 




 

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