CHINO, Calif., April 26, 2005 (PRIMEZONE) -- The Board of Directors of Chino Commercial Bank, N.A. (OTCBB:CKNA) announced the results of operations for the first quarter of 2005 with net income for the quarter of $177,067 or $0.22 per share, setting a 50.3% increase over net income of $117,755 or $0.14 per share for the first quarter of 2004. Net income per fully diluted share was $0.20 and $0.13 for the quarters ending March 31, 2005 and 2004, respectively. Dann H. Bowman, President and Chief Executive Officer stated, "We are very pleased with the continued growth and earnings of the Bank. The first quarter results represent a new record in earnings for the Bank, and continue to build the stockholders' equity for even more growth in the future."
Total Assets increased by 31.9% to $84.4 million, as compared with total assets of $64.0 million at the end of the same quarter last year; and increased 9.6% or $7.4 million as compared to $77.1 million at December 31, 2004. Total Deposits increased 33.9% to $78.0 million at the end of the first quarter, as compared with $58.2 million at the end of the same quarter last year. Deposits also increased 10.3% during the first quarter as compared to $70.7 million at December 31, 2004. Total Loans increased 29.7% to $36.9 million at March 31, 2005 as compared to $28.4 million at March 31, 2004 and $34.4 million at December 31, 2004. To date, the Bank has had no delinquencies greater than $1,000, no non-accrual or non-performing loans or other real estate owned.
The increased earnings for the quarter were primarily due to an increase in the net interest margin of $255,055. The Bank posted net interest income of $880,738 for the three months ended March 31, 2005 as compared to $625,683 for the same quarter last year. This increase in income was partially offset by an increase in general and administrative expenses of $137,950 due to numerous increases in expenses but primarily resulting from an increase in salary and benefits expense and client service charges plus an increase in the provision for loan losses of $17,068.
Average interest-earning assets were $72.4 million with average interest-bearing liabilities of $15.1 million yielding a net interest margin of 4.86% for the first quarter of 2005 as compared to average interest-bearing assets of $52.8 million with average interest-bearing liabilities of $12.1 million yielding a net interest margin of 4.74% for the three months ended March 31, 2004.
General and administrative expenses were $707,027 for the three months ended March 31, 2005 as compared to $569,077 for the three months ended March 31, 2004. The largest component of general and administrative expenses was salary and benefits expense of $334,496 for the first quarter of 2005 as compared to $307,814 for the first quarter of 2004. Salary and benefits increased due to higher average full-time equivalent staff, salary increases, accrued incentive compensation, and accrued retirement expenses for the first quarter of 2005 as compared to the first quarter of 2004. The largest increase to general and administrative expense was attributable to Other expenses that increased by $87,220 for the comparable three-month periods due to increases in client service charges, courier, and various other expense categories. The three months ended March 31, 2004 reflects a recovery of $8,453 from an operating loss recorded in the fourth quarter of 2003. Other general and administrative expenses that increased were Audit and professional fees, which increased $6,804, and Advertising and marketing expenses, which increased $5,184.
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
STATEMENTS OF FINANCIAL CONDITION
March 31, December 31,
2005 2004
------------- --------------
(unaudited)
ASSETS:
Cash and Due from Banks $ 4,788,408 2,374,688
Federal Funds Sold 13,325,000 10,925,000
------------- --------------
Cash and Cash equivalents 18,113,408 13,299,688
Interest-bearing deposits at banks 5,276,000 6,271,000
Investment Securities available for
sale 14,755,169 15,562,826
Investment Securities held to
maturity (fair value approximates
$6,588,355 at March 31, 2005 and
$4,859,395 at December 31, 2004) 6,569,271 4,801,024
Federal Reserve Bank stock, at cost 159,600 159,600
Federal Home Loan Bank stock, at
cost 283,500 283,500
Pacific Coast Bankers' Bank stock,
at cost 50,000 50,000
Loans
Loans held for sale 0 0
Construction 2,458,359 3,520,772
Real estate 27,263,071 23,886,582
Commercial 6,892,952 6,534,464
Farm/Agriculture 342,448 346,261
Installment 509,358 635,609
Unearned fees and discounts (139,214) (119,328)
Allowance for loan losses (424,114) (407,046)
------------- --------------
Total Loans 36,902,860 34,397,314
------------- --------------
Fixed Assets, net 415,338 389,965
Accrued Interest Receivable 263,547 258,528
Prepaid & Other Assets 1,659,539 1,612,617
------------- --------------
Total Assets $ 84,448,232 77,086,062
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LIABILITIES:
Deposits
Non-interest Bearing $ 62,532,068 56,112,375
Interest Bearing
Money market 10,959,505 10,231,507
Savings 954,174 926,275
Time deposits of $100,000 or
greater, due in one year 1,900,266 1,802,181
Time deposits less than
$100,000, due in one year 1,688,537 1,668,794
------------- --------------
Total Deposits 78,034,550 70,741,132
------------- --------------
Accrued Interest Payable 22,099 20,642
Accrued Expenses & Other Payables 369,855 422,994
------------- --------------
Total Liabilities 78,426,504 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
March 31, 2005 and December 31,
2004. 2,728,230 2,728,230
Additional paid-in capital 2,590,600 2,590,600
Retained earnings 789,712 612,645
Accumulated other comprehensive
loss (86,814) (30,181)
------------- --------------
Total Equity 6,021,728 5,901,294
------------- --------------
Total Liabilities & Equity $ 84,448,232 77,086,062
============= ==============
CHINO COMMERCIAL BANK
STATEMENTS OF OPERATIONS
(unaudited)
For the three months ending
March 31,
2005 2004
--------- ---------
Interest Income
Interest Income - Securities $ 221,560 $ 145,610
Interest Income - Fed Funds 60,152 18,231
Interest and fee income on Loans 648,574 498,839
--------- ---------
Total Interest Income 930,286 662,680
--------- ---------
Interest Expense
Interest Expense - Deposits 49,548 36,997
--------- ---------
Total Interest Expense 49,548 36,997
--------- ---------
Net interest income 880,738 625,683
--------- ---------
Provision for loan losses 17,068 --
--------- ---------
Net interest income after
provision for loan losses 863,670 625,683
--------- ---------
Non-interest income
Service Charges on Deposit
Accounts 108,935 103,266
Other miscellaneous fee income 1,695 1,418
Income from Mortgage Banking 6,218 15,445
Income from Bank Owned Life
Insurance 15,817 10,754
--------- ---------
Total Non-interest income 132,665 130,883
--------- ---------
General & Administrative Expenses
Salaries & Benefits 334,496 307,814
Occupancy & Equipment 63,019 58,532
Data & Item Processing 50,870 46,671
Advertising & Marketing 25,572 20,388
Audit & Professional fees 49,945 43,141
Insurance 5,982 5,655
Directors' fees and expenses 18,555 15,508
Other expenses 158,588 71,368
--------- ---------
Total general & administrative
expenses 707,027 569,077
--------- ---------
Income before income tax expense 289,308 187,489
Income tax expense 112,241 69,734
--------- ---------
Total income $ 177,067 $ 117,755
========= =========
Basic Earnings per share $ 0.22 $ 0.14
========= =========
Diluted Earnings per share $ 0.20 $ 0.13
========= =========
CHINO COMMERCIAL BANK
Selected Financial Highlights
For the three months
ended March 31,
--------------------
2005 2004
-------- --------
Selected Operating Data:
Net interest income $ 880,738 $ 625,683
Provision for loan losses 17,068 --
Non-interest income 132,665 130,883
Non-interest expense 707,027 569,077
Net income $ 177,067 $ 117,755
Share Data:
Basic income per share $ 0.22 $ 0.14
Diluted Income per share $ 0.20 $ 0.13
Weighted average common shares
outstanding
Basic 818,453 818,453
Diluted 882,869 874,991
Performance Ratios:
Return on average assets 0.90% 0.82%
Return on average equity 11.82% 8.64%
Equity to total assets at the end
of the period 7.66% 9.10%
Net interest spread 3.82% 3.79%
Net interest margin 4.86% 4.74%
Average interest-earning assets
to average-bearing liabilities 478.27% 434.48%
Core efficiency ratio 69.72% 75.17%
Non-interest expense to average
assets 3.59% 3.96%
Selected Balance Sheet Data: 3/31/2005 12/31/2004
--------- ----------
Total assets $ 84,448,232 $ 77,086,062
Investment securities held to
maturity 6,569,271 4,801,024
Investment securities available
for sale 14,755,169 15,562,826
Loan receivable, net 36,902,860 34,397,314
Deposits 78,034,550 70,741,132
Non-interest bearing deposits 62,532,068 56,112,375
Stockholders' equity $ 6,021,728 $ 5,901,294
Regulatory capital ratios:
Average equity to average assets 7.62% 8.00%
Leverage capital 7.75% 8.36%
Tier I risk based 13.04% 13.80%
Risk-based capital 14.05% 14.81%
Asset Quality Ratios:
Allowance for loan losses as a
percent
of gross loans receivable 1.13% 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