×

Chino Commercial Bancorp Reports 7% Increase In Third Quarter Earnings

CHINO, Calif., Oct. 21, 2016 (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, 2016 with net earnings of $361,258, or an increase of 7.4%, compared with net income of $336,328 for the same quarter last year. Net income per basic share for the third quarter of 2016 was $0.29 as compared to $0.27 for the same quarter last year.

Financial Condition

At September 30, 2016, total assets were $182.3 million, an increase of $20.9 million or 13.0% over $161.4 million at December 31, 2015. Total deposits increased by 15.1% or $19.7 million during the year to $150.1 million, compared to $130.3 million as of December 31, 2015. At September 30, 2016, the Company’s core deposits represent 95.0% of the total deposits.

Gross loans increased by 15.1% or $14.1 million as of September 30, 2016 to $107.4 million as compared with $93.2 million as of December 31, 2015. The Bank had one nonperforming loan at the end of the third qurter and no nonperforming loans as of December 31, 2015. OREO properties remained at zero as of September 30, 2016, and December 31, 2015, respectively.

Earnings

The Company posted net interest income of $1,428,501 and $1,310,757 for the three months ended September 30, 2016 and 2015, respectively, or an increase of $117,744 or 9.0%. Average interest-earning assets were $161.8 million with average interest-bearing liabilities of $81.3 million, yielding a net interest margin of 3.51% for the third quarter of 2016, as compared to the average interest-earning assets of $142.9 million with average interest-bearing liabilities of $73.7 million, yielding a net interest margin of 3.64% for the third quarter of 2015.

Non-interest income totaled $395,255 for the third quarter of 2016, or an increase of 12.7% as compared with $350,622 earned during the same quarter last year. Service charges on deposit accounts increased 13.3% to $300,936 primarily due to an increase in income from returned items and overdraft charges. Dividend income from restricted stock increased to $48,962 for the third quarter of 2016, compared to $37,951 for the same quarter in 2015. Income from bank-owned life insurance remained consistent at $25,657 in the third quarter of 2016 and $25,635 in the third quarter of 2015.

General and administrative expenses were $1,202,581 for the three months ended September 30, 2016, as compared to $1,115,633 for the third quarter of 2015. The largest component of general and administrative expenses was salary and benefits expense of $704,158 for the third quarter of 2016, as compared to $650,333 for the same quarter last year. Regulatory assessments increased to $36,539 in the third quarter of 2016 in comparison with $31,611 in the third quarter of 2015. Advertising and marketing expenses increased 38.1% to $18,935 in the third quarter of 2016 from $13,714 for the same period last year.

Income tax expense was $229,917 for the three months ended September 30, 2016 as compared to $209,175 for the three months ended September 30, 2015. The effective income tax rate for the third quarter of 2016 and 2015 is approximately 38.9% and 38.3%, 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, customers’ service expectations, the Company’s ability to successfully deploy new technology and gain efficiencies there from, 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, 2016 and December 31, 2015
September 30, 2016 December 31, 2015
(unaudited) (audited)
ASSETS:
Cash and due from banks$ 39,234,964 $ 24,898,140
Total cash and cash equivalents 39,234,964 24,898,140
Interest-bearing deposits in other banks 3,472,000 4,960,000
Investment securities available for sale 4,517,291 4,931,068
Investment securities held to maturity (fair value approximates
$17,620,000 at September 30, 2016 and $23,115,000 at December 31, 2015) 17,298,944 23,100,106
Total investments 25,288,235 32,991,174
Loans
Real estate 87,494,419 72,756,410
Commercial 19,403,009 20,053,905
Installment 460,024 433,764
Gross loans 107,357,452 93,244,079
Unearned fees and discounts (331,594) (251,911)
Loans net of unearned fees and discount 107,025,858 92,992,168
Allowance for loan losses (1,800,941) (1,667,204)
Net loans 105,224,917 91,324,964
Fixed assets, net 5,992,816 6,021,446
Accrued interest receivable 269,245 395,685
Stock investments, restricted, at cost 1,901,600 1,766,500
Bank-owned life insurance 3,260,072 3,183,247
Other assets 1,154,550 803,048
Total assets$ 182,326,399 $ 161,384,204
LIABILITIES:
Deposits
Non-interest bearing $ 82,932,780 $ 74,431,378
Interest bearing
NOW and money market 51,693,004 40,980,418
Savings 4,636,936 4,815,198
Time deposits less than $250,000 3,350,545 3,913,644
Time deposits of $250,000 or greater 7,481,098 6,208,083
Total deposits 150,094,363 130,348,721
Accrued interest payable 23,208 25,229
Borrowings from Federal Home Loan Bank (FHLB) 15,000,000 15,000,000
Accrued expenses & other payables 892,197 843,691
Subordinated notes payable to subsidiary trust 3,093,000 3,093,000
Total liabilities 169,102,768 149,310,641
SHAREHOLDERS' EQUITY
Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 1,231,332 shares at September 30, 2016 and December 31, 2015, respectively. 6,089,466 6,089,466
Retained earnings 7,120,131 6,000,577
Accumulated other comprehensive income/(loss) 14,034 (16,480)
Total shareholders' equity 13,223,631 12,073,563
Total liabilities & shareholders' equity$ 182,326,399 $ 161,384,204

CHINO COMMERCIAL BANCORP
CONSOLIDATED STATEMENTS OF NET INCOME
(unaudited)
For the three months ended For the year ended
September 30 September 30
2016 2015 2016 2015
Interest income
Interest and fee income on loans $ 1,354,618 $ 1,228,781 $ 4,047,265 $ 3,616,409
Interest on federal funds sold and FRB deposits 36,165 16,161 89,201 27,375
Interest on time deposits in banks 10,272 15,004 30,651 68,193
Interest on investment securities 134,864 132,792 423,522 303,371
Total interest income 1,535,919 1,392,738 4,590,639 4,015,348
Interest Expense
Interest on deposits 69,390 59,424 194,820 172,863
Other borrowings 38,028 22,557 106,459 59,028
Total interest expense 107,418 81,981 301,279 231,891
Net interest income 1,428,501 1,310,757 4,289,360 3,783,457
Provision for loan losses 30,000 243 162,410 4,041
Net interest income after provision for loan losses 1,398,501 1,310,514 4,126,950 3,779,416
Non-interest income
Service charges on deposit accounts 300,936 265,693 847,737 873,089
Other miscellaneous income 19,700 21,343 137,646 59,878
Dividend income from restricted stock 48,962 37,951 121,805 99,430
Income from bank-owned life insurance 25,657 25,635 76,825 76,578
Total non-interest income 395,255 350,622 1,184,013 1,108,975
Non-interest expenses
Salaries and employee benefits 704,158 650,333 2,091,401 1,964,562
Occupancy and equipment 111,480 108,305 314,434 310,585
Data and item processing 95,639 97,934 285,305 287,353
Advertising and marketing 18,935 13,714 53,477 39,998
Legal and professional fees 51,143 32,980 138,674 115,606
Regulatory assessments 36,539 31,611 103,389 92,813
Insurance 8,562 8,471 25,572 24,807
Directors' fees and expenses 27,192 26,771 81,030 80,850
Other expenses 148,933 145,514 375,146 336,063
Total non-interest expenses 1,202,581 1,115,633 3,468,428 3,252,637
Income before income tax expense 591,175 545,503 1,842,535 1,635,754
Income tax expense 229,917 209,175 718,908 627,006
Net income$ 361,258 $ 336,328 $ 1,123,627 $ 1,008,748
Basic earnings per share $ 0.29 $ 0.27 $ 0.91 $ 0.82
Diluted earnings per share $ 0.29 $ 0.27 $ 0.91 $ 0.82

For the three months ended For the year ended
September 30 September 30
2016 2015 2016 2015
KEY FINANCIAL RATIOS
(unaudited)
Annualized return on average equity 11.05% 11.55% 11.79% 11.86%
Annualized return on average assets 0.82% 0.86% 0.89% 0.93%
Net interest margin 3.51% 3.64% 3.73% 3.85%
Core efficiency ratio 65.94% 67.15% 63.37% 66.48%
Net chargeoffs/(recoveries) to average loans -0.01% -0.07% 0.03% -0.09%
AVERAGE BALANCES
(thousands, unaudited)
Average assets $ 176,473 $ 156,751 $ 168,130 $ 145,101
Average interest-earning assets $ 161,774 $ 142,958 $ 153,680 $ 131,394
Average gross loans $ 104,499 $ 85,866 $ 100,087 $ 86,529
Average deposits $ 140,514 $ 125,884 $ 134,204 $ 119,468
Average equity $ 13,076 $ 11,651 $ 12,704 $ 11,345
CREDIT QUALITY End of period
(unaudited) September 30, 2016 December 31, 2015
Non-performing loans $ 536,696 $ -
Non-performing loans to total loans 0.50% 0.00%
Non-performing loans to total assets 0.29% 0.00%
Allowance for loan losses to total loans 1.68% 1.79%
Nonperforming assets as a percentage of total loans and OREO 0.50% 0.00%
Allowance for loan losses to non-performing loans 335.56% n/a
OTHER PERIOD-END STATISTICS
(unaudited)
Shareholders equity to total assets 7.25% 7.48%
Net Loans to deposits 70.11% 70.06%
Non-interest bearing deposits to total deposits 55.25% 57.10%
Total capital to total risk-weighted assets 15.50% 16.15%
Tier 1 capital to total risk-weighted assets 15.39% 15.82%
Tier 1 leverage ratio 9.98% 9.79%
Common equity tier 1 15.39% 15.82%



Source:Chino Commercial Bancorp