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.
| 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 | % | |||||||||||||