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.

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 sold46,295,000   
Total cash and cash equivalents51,341,800  25,451,866 
      
Interest-bearing deposits in other banks496,000  1,988,000 
Investment securities available for sale8,877,538  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 investments41,885,193  34,526,079 
Loans     
Real estate105,941,315  107,902,821 
Commercial24,560,974  24,029,989 
Installment242,194  241,077 
Gross loans130,744,483  132,173,887 
Unearned fees and discounts(313,175) (345,054)
Loans net of unearned fees and discount130,431,308  131,828,833 
Allowance for loan losses(2,398,035) (2,292,478)
 Net loans128,033,273  129,536,355 
      
Fixed assets, net5,948,829  6,063,350 
Accrued interest receivable622,646  585,506 
Stock investments, restricted, at cost1,440,900  1,248,400 
Bank-owned life insurance4,563,683  3,484,885 
Other assets1,623,831  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 market73,022,149  66,046,085 
Savings11,370,267  9,870,263 
Time deposits less than $250,0009,485,251  4,191,717 
Time deposits of $250,000 or greater5,182,823  7,674,742 
Total deposits186,826,774  171,019,821 
      
Accrued interest payable158,447  64,794 
Borrowings from Federal Home Loan Bank (FHLB)20,000,000  5,000,000 
Accrued expenses & other payables1,515,853  1,101,417 
Subordinated notes payable to subsidiary trust3,093,000  3,093,000 
Total liabilities211,594,074  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 earnings13,301,271  11,251,915 
Accumulated other comprehensive income/(loss)62,253  (45,258)
Total shareholders' equity23,866,081  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 income2,465,763 2,073,411 7,170,797 5,973,401
        
Interest Expense       
Interest on deposits251,358 191,937 704,973 423,419
Other borrowings123,303 31,527 274,273 151,852
Total interest expense374,661 223,464 979,246 575,271
Net interest income2,091,102 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 losses2,091,102 1,829,947 6,151,551 5,248,130
        
Non-interest income       
Service charges on deposit accounts393,926 314,173 1,148,014 919,280
Other miscellaneous income22,602 21,547 166,000 65,488
Dividend income from restricted stock24,567 20,429 71,014 80,261
Income from bank-owned life insurance31,433 24,453 78,798 73,465
Total non-interest income472,528 380,602 1,463,826 1,138,494
        
Non-interest expenses       
Salaries and employee benefits968,967 863,178 2,938,952 2,595,776
Occupancy and equipment158,623 131,149 477,028 367,372
Data and item processing120,869 99,786 345,767 288,075
Advertising and marketing12,813 25,448 66,168 83,284
Legal and professional fees146,738 39,110 212,962 112,263
Regulatory assessments32,541 33,928 94,517 100,984
Insurance9,504 9,005 27,616 26,568
Directors' fees and expenses37,580 29,482 104,400 88,444
Other expenses179,998 145,184 508,581 434,826
Total non-interest expenses1,667,633 1,376,270 4,775,991 4,097,592
Income before income tax expense895,997 834,279 2,839,386 2,289,032
Income tax expense255,752 238,910 787,823 653,799
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%