CHINO, Calif., April 24, 2006 (PRIMEZONE) -- The Board of Directors of Chino Commercial Bank, N.A. (OTCBB:CKNA) announced the results of operations for the first quarter of 2006 with net income for the quarter of $264,531 or $0.32 per share, a 49.4% increase from net income of $177,068 or $0.22 per share for the first quarter of 2005. Net income per fully diluted share was $0.30 and $0.20 for the quarters ending March 31, 2006 and 2005, respectively. Dann H. Bowman, President and Chief Executive Officer, stated, "The Bank continues to experience strong fundamental growth, especially in the loan portfolio and, with the new Ontario branch, we are building on our customer base and creating more synergy within the community."
Total assets increased by 8.4% to $91.5 million, as compared with total assets of $84.4 million at the end of the same quarter last year; and increased 0.2% or $184,073 as compared to $91.3 million at December 31, 2005. Total deposits increased 7.7% to $84.0 million at the end of the first quarter, as compared with $78.0 million at the end of the same quarter last year. Deposits remained stable at $84.0 million as compared to December 31, 2005. Total loans increased 18.1% to $43.6 million at March 31, 2006, as compared to $36.9 million at March 31, 2005 and $41.8 million at December 31, 2005.
The increased earnings for the quarter were primarily due to an increase in the net interest margin of $238,051. The Bank posted net interest income of $1,101,721 for the three months ended March 31, 2006, as compared to $880,738 for the same quarter last year. This increase in income was partially offset by an increase in general and administrative expenses of $96,211 due to numerous increases in expenses, but primarily resulting from an increase in salary and benefits expense and occupancy and equipment, due to the addition of the new Ontario branch as of January 5, 2006.
Average interest-earning assets were $78.5 million with average interest-bearing liabilities of $22.1 million, yielding a net interest margin of 5.61% for the first quarter of 2006, as compared to average interest-bearing assets of $72.4 million with average interest-bearing liabilities of $15.1 million yielding, a net interest margin of 4.86% for the three months ended March 31, 2005.
General and administrative expenses were $803,238 for the three months ended March 31, 2006, as compared to $707,026 for the three months ended March 31, 2005. The largest component of general and administrative expenses was salary and benefits expense of $409,178 for the first quarter of 2006, as compared to $334,496 for the first quarter of 2005. Salary and benefits increased due to higher average full-time equivalent staff, salary increases, and the reduction in capitalized costs related to loan origination expenses for the first quarter of 2006 as compared to first quarter of 2005. The largest increase to general and administrative expense was attributable to occupancy and equipment that increased by $41,620 for the comparable three-month period, due to the opening of the Bank's second banking facility in Ontario. Other general and administrative expenses that increased were data and item processing expenses, which increased by $12,480 due to new internet and cash management products that the Bank released as of April 1, 2005, as well as to volume increases as deposit relationships continue to build, especially with the new Ontario branch.
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
Selected Financial Highlights
For the three months
ended March 31,
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2006 2005
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Selected Operating Data:
Net interest income $ 1,181,927 $ 880,738
Provision for loan losses 8,750 17,068
Non-interest income 146,757 132,665
Non-interest expense 803,238 707,026
Net income $ 264,531 $ 177,068
Share Data:
Basic income per share $ 0.32 $ 0.22
Diluted Income per share $ 0.30 $ 0.22
Weighted average common
shares outstanding
Basic 818,453 818,453
Diluted 883,992 882,869
Performance Ratios:
Return on average assets 1.22% 0.90%
Return on average equity 15.38% 11.82%
Equity to total assets at the
end of the period 7.33% 7.66%
Net interest spread 4.56% 3.82%
Net interest margin 5.61% 4.86%
Average interest-earning assets to
average-bearing liabilities 354.51% 478.27%
Core efficiency ratio 64.29% 69.72%
Non-interest expense to average assets 3.69% 3.59%
Selected Balance Sheet Data: 3/31/2006 12/31/2005
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Total assets $ 91,516,982 $91,332,909
Investment securities held to maturity 5,649,875 5,850,687
Investment securities
available for sale 16,205,550 16,311,377
Loan receivable, net 43,571,665 41,806,807
Deposits 84,017,378 84,021,943
Non-interest bearing deposits 60,573,662 62,610,963
Stockholders' equity $ 6,953,678 $ 6,694,040
Regulatory capital ratios:
Average equity to average assets 7.91% 7.46%
Leverage capital 8.13% 7.54%
Tier I risk based 11.97% 12.14%
Risk-based capital 13.00% 13.21%
Asset Quality Ratios:
Allowance for loan losses
as a percent of gross loans receivable 1.25% 1.28%
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 2 1