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CST: 20/11/2019 16:57:05   

Chino Commercial Bancorp Reports 25.5% Year to Date Increase in Net Earnings

33 Days ago

CHINO, Calif., Oct. 18, 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 third quarter ended September 30, 2019, with net earnings of $640 thousand, or an increase of 7.5%, compared with net income of $595 thousand for the same quarter last year. Year to date net earnings were $2.1 million, or an increase of 25.5%, compared with net income of $1.6 million for the period ending September 30, 2018. Net income per basic and diluted share was $0.29 for the third quarter of 2019 and $0.27 for the same quarter 2018.

Dann H. Bowman, President and Chief Executive Officer, stated, “The Bank’s operating performance in the third quarter and year-to-date has been very strong. Credit quality remains solid with the Bank having no credit losses over the first three quarters of this year, and no foreclosed properties.

Economic conditions in the Inland Empire continue to improve and the business climate is very good. With the Bank’s strong balance sheet, we have the capacity to expand our lending within the community and continue to grow the organization.”

Financial Condition

At September 30, 2019, total assets were $235.5 million, an increase of $33.5 million or 16.6% over $201.9 million at December 31, 2018. Total deposits increased by 9.2% or $15.8 million during the third quarter to $186.8 million, compared to $171.0 million as of December 31, 2018. At September 30, 2019, the Company’s core deposits represent 94.5% of the total deposits.

Gross loans decreased by 1.1% or $1.4 million as of September 30, 2019 to $130.7 million, as compared with $132.2 million as of December 31, 2018, as a result of an unexpected increase in prepayments received during the third quarter. The Bank had one nonperforming loan for the quarter ended September 30, 2019, and none as of December 31, 2018. OREO properties remained at zero as of September 30, 2019 and December 31, 2018.

Earnings

The Company posted net interest income of $2.1 million and $1.8 million for the three months ended September 30, 2019 and 2018, respectively, or an increase of $241 thousand or 13.0%. Average interest-earning assets were $179.2 million with average interest-bearing liabilities of $116.1 million, yielding a net interest margin of 4.63% for the third quarter of 2019, as compared to the average interest-earning assets of $180.8 million with average interest-bearing liabilities of $95.0 million, yielding a net interest margin of 4.06% for the third quarter of 2018.

Non-interest income totaled $472.5 thousand for the third quarter of 2019, or an increase of 24.2% as compared with $380.6 thousand earned during the same quarter last year. Service charges on deposit accounts, the largest component of non-interest income, increased by $79.8 thousand or 25.4% to $314 thousand, primarily due to an increase in income from returned items, overdraft charges, and analysis fees.

General and administrative expenses were $1.7 million for the three months ended September 30, 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 $969 thousand for the third quarter of 2019, as compared to $863 thousand for the same quarter last year. Occupancy and equipment expenses increased by $27 thousand or 21% to $159 thousand in the third quarter of 2019 from $131 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 $256 thousand which represents an increase of $17 thousand or 7% for the three months ended September 30, 2019 as compared to $239 thousand for the three months ended September 30, 2018. The effective income tax rate for the third quarters of 2019 and 2018 is approximately 28.5% and 28.6%, 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
September 30, 2019 and December 31, 2018
           
  September 30, 2019     December 31, 2018  
  (unaudited)     (audited)  
ASSETS:          
Cash and due from banks $ 5,046,800.00     $ 25,451,866  
Federal funds sold 46,295,000      
Total cash and cash equivalents 51,341,800     25,451,866  
           
Interest-bearing deposits in other banks 496,000     1,988,000  
Investment securities available for sale 8,877,538     5,914,736  
Investment securities held to maturity (fair value approximates          
$32,892,236 at September 30 2019 and $26,092,226 at December 31, 2018) 32,511,655     26,623,343  
Total investments 41,885,193     34,526,079  
Loans          
Real estate 105,941,315     107,902,821  
Commercial 24,560,974     24,029,989  
Installment 242,194     241,077  
Gross loans 130,744,483     132,173,887  
Unearned fees and discounts (313,175 )   (345,054 )
Loans net of unearned fees and discount 130,431,308     131,828,833  
Allowance for loan losses (2,398,035 )   (2,292,478 )
 Net loans 128,033,273     129,536,355  
           
Fixed assets, net 5,948,829     6,063,350  
Accrued interest receivable 622,646     585,506  
Stock investments, restricted, at cost 1,440,900     1,248,400  
Bank-owned life insurance 4,563,683     3,484,885  
Other assets 1,623,831     1,091,805  
Total assets $ 235,460,155     $ 201,988,246  
           
LIABILITIES:          
Deposits          
Non-interest bearing  $ 87,766,284     $ 83,237,014  
Interest bearing          
NOW and money market 73,022,149     66,046,085  
Savings 11,370,267     9,870,263  
Time deposits less than $250,000 9,485,251     4,191,717  
Time deposits of $250,000 or greater 5,182,823     7,674,742  
Total deposits 186,826,774     171,019,821  
           
Accrued interest payable 158,447     64,794  
Borrowings from Federal Home Loan Bank (FHLB) 20,000,000     5,000,000  
Accrued expenses & other payables 1,515,853     1,101,417  
Subordinated notes payable to subsidiary trust 3,093,000     3,093,000  
Total liabilities 211,594,074     180,279,032  
           
SHAREHOLDERS' EQUITY          
Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 2,230,808 shares at September 30, 2019 and December 31, 2018, respectively.   10,502,557       10,502,557  
Retained earnings 13,301,271     11,251,915  
Accumulated other comprehensive income/(loss) 62,253     (45,258 )
Total shareholders' equity 23,866,081     21,709,214  
Total liabilities & shareholders' equity $ 235,460,155     $ 201,988,246  



CHINO COMMERCIAL BANCORP
CONSOLIDATED STATEMENTS OF NET INCOME
 
  For the three months ended   For the year ended
  September 30   September 30
  2019   2018   2019   2018
  (unaudited)   (unaudited)   (unaudited)   (audited)
Interest income              
Interest and fee income on loans  $   1,973,170   $   1,778,205   $   5,901,963   $   5,184,331
Interest on federal funds sold and FRB deposits   186,073     123,758     325,775     318,445
Interest on time deposits in banks   7,953     8,638     31,858     15,748
Interest on investment securities   298,567     162,810   911,201     454,877
Total interest income 2,465,763   2,073,411   7,170,797   5,973,401
               
Interest Expense              
Interest on deposits 251,358   191,937   704,973   423,419
Other borrowings 123,303   31,527   274,273   151,852
Total interest expense 374,661   223,464   979,246   575,271
Net interest income 2,091,102   1,849,947   6,191,551   5,398,130
Provision for loan losses   -      20,000   40,000   150,000
               
Net interest income after provision for loan losses 2,091,102   1,829,947   6,151,551   5,248,130
               
Non-interest income              
Service charges on deposit accounts 393,926   314,173   1,148,014   919,280
Other miscellaneous income 22,602   21,547   166,000   65,488
Dividend income from restricted stock 24,567   20,429   71,014   80,261
Income from bank-owned life insurance 31,433   24,453   78,798   73,465
Total non-interest income 472,528   380,602   1,463,826   1,138,494
               
Non-interest expenses              
Salaries and employee benefits 968,967   863,178   2,938,952   2,595,776
Occupancy and equipment 158,623   131,149   477,028   367,372
Data and item processing 120,869   99,786   345,767   288,075
Advertising and marketing 12,813   25,448   66,168   83,284
Legal and professional fees 146,738   39,110   212,962   112,263
Regulatory assessments 32,541   33,928   94,517   100,984
Insurance 9,504   9,005   27,616   26,568
Directors' fees and expenses 37,580   29,482   104,400   88,444
Other expenses 179,998   145,184   508,581   434,826
Total non-interest expenses 1,667,633   1,376,270   4,775,991   4,097,592
Income before income tax expense 895,997   834,279   2,839,386   2,289,032
Income tax expense 255,752   238,910   787,823   653,799
Net income $   640,245   $   595,369   $   2,051,563   $   1,635,233
               
Basic earnings per share  $   0.29   $   0.27   $   0.92   $   0.73
Diluted earnings per share  $   0.29   $   0.27   $   0.92   $   0.73



 

CHINO COMMERCIAL BANCORP
         
    For the three months ended   For the year ended
    September 30   September 30
    2019     2018     2019     2018  
KEY FINANCIAL RATIOS                        
(unaudited)                        
Annualized return on average equity   10.94 %   11.43 %   12.00 %   10.73 %
Annualized return on average assets   1.12 %   1.20 %   1.28 %   1.11 %
Net interest margin   4.63 %   4.06 %   4.47 %   4.10 %
Core efficiency ratio   65.05 %   61.70 %   62.39 %   62.69 %
Net chargeoffs/(recoveries) to average loans   -0.013 %   -0.013 %   -0.05 %   -0.02 %
                         
AVERAGE BALANCES                        
(thousands, unaudited)                        
Average assets   $   227,861     $   197,849     $   213,631     $   195,609  
Average interest-earning assets   $   179,188     $   180,829     $   185,080     $   176,094  
Average gross loans   $   133,543     $   130,398     $   136,350     $   127,027  
Average deposits   $   184,145     $   172,476     $   176,746     $   161,613  
Average equity   $   23,419     $   20,836     $   22,792     $   20,325  
                         
                         
                     
CREDIT QUALITY   End of period            
(unaudited)   September 30, 2019   December 31, 2018            
Non-performing loans   $ 121,693     $ -              
                         
Non-performing loans to total loans   0.09 %   0.00 %            
Non-performing loans to total assets   0.05 %   0.00 %            
Allowance for loan losses to total loans   1.83 %   1.73 %            
Nonperforming assets as a percentage of total loans and OREO   0.09 %   0.00 %            
Allowance for loan losses to non-performing loans   1970.57 %   n/a              
                         
OTHER PERIOD-END STATISTICS                        
(unaudited)                        
Shareholders equity to total assets   10.14 %   10.75 %            
Net loans to deposits   68.53 %   75.74 %            
Non-interest bearing deposits to total deposits   46.98 %   48.67 %            
Total capital to total risk-weighted assets   19.20 %   19.19 %            
Tier 1 capital to total risk-weighted assets   21.18 %   20.93 %            
Tier 1 leverage ratio   13.93 %   14.80 %            
Common equity tier 1   21.18 %   20.93 %            

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