CHINO, Calif., April 24, 2002 (PRIMEZONE) -- The Board of Directors of Chino Commercial Bank, N.A. (OTCBB:CKNA) announced the results of operations for the first quarter of 2002 with net income for the quarter of $12,830 or $.02 per share. Dann H. Bowman, President and Chief Executive Officer, stated, "After only nineteen months of operations, it is extremely exciting to report the Bank's first quarterly net profit. The Bank continues to grow very rapidly as assets increased by 19.8% during the first quarter to $31.3 million." Loans also increased to $12.5 million at March 31, 2002 as compared to $11.0 million at December 31, 2001. The Bank also continues to enjoy very good loan quality with no delinquencies or non-accrual loans. Total Deposits increased to $25.3 million at March 31, 2002 as compared to $20.0 million at December 31, 2001. Non-interest bearing deposits continue to exceed 65% of total deposits at March 31, 2002.
The first quarter of 2002 results of operation reflect net income of $12,830 as compared to a net loss for the first quarter of 2001 of $85,239 or $.16 per share. The income for the quarter is due primarily to the increase of $88,848 in non-interest income as compared to the first quarter of 2001. The non-interest income was derived from an increase in Service charges on deposit accounts and Income from Mortgage banking. Mr. Bowman stated, "The Bank started the mortgage banking operation in December, 2001 and we are tremendously pleased with the results for the first quarter." The Bank originated and sold $3.2 million in loans during the first quarter through two mortgage banking conduits.
The Bank posted net interest income of $319,103 for the three months ended March 31, 2002 as compared to $247,169 for the three months ended March 31, 2001. Average interest-earning assets were $27.1 million with average interest-bearing liabilities of $9.3 million yielding a net interest margin of 4.71% for the first quarter of 2002 as compared to average interest-bearing assets of $16.4 million with average interest-bearing liabilities of $4.7 million yielding a net interest margin of 6.02% for the three months ended March 31, 2001.
General and administrative expenses were $384,903 for the three months ended March 31, 2002 as compared to $326,730 for the three months ended March 31, 2001. The largest component of general and administrative expenses was salary and benefits expense of $179,816 for the first quarter of 2002 as compared to $159,393 for the first quarter of 2001. Full-time employees increased over the past year from nine employees to fourteen employees, reflected by the increase in salary and benefit expense. A portion of the salary and benefit expenses was offset by an increase in capitalized FAS91 costs as loan volume increased.
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
STATEMENT OF OPERATIONS
(unaudited)
For the three months ending
March 31,
2002 2001
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Interest Income
Interest Income - Securities $ 175,593 161,759
Interest Income - Fed Funds 11,510 72,280
Interest and fee income on Loans 191,161 62,732
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Total Interest Income 378,264 296,771
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Interest Expense
Interest Expense - Deposits 45,281 49,602
Interest Expense - Borrowings 13,880 --
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Total Interest Expense 59,161 49,602
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Total net interest income 319,103 247,169
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Provision for loan losses 14,400 9,860
Total net interest income after
provision for loan losses 304,703 237,309
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Non-interest income
Service Charges on Deposit Accounts 44,300 4,248
Other miscellaneous fee income 499 (66)
Income from Mortgage Banking 48,231 --
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Total Non-interest income 93,030 4,182
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General & Administrative Expenses
Salaries & Benefits 179,816 159,393
Occupancy & Equipment 56,876 53,167
Data & Item Processing 40,542 23,669
Advertising & Marketing 11,416 11,906
Audit & Professional fees 23,888 21,228
Insurance 3,060 2,565
Other expenses 69,305 54,802
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Total general & administrative
expenses 384,903 326,730
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Income tax expense (benefit) -- --
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Total income (loss) $ 12,830 $ (85,239)
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Basic loss per share $ 0.02 $ (0.16)
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Diluted loss per share $ 0.02 $ (0.15)
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CHINO COMMERCIAL BANK
STATEMENT OF FINANCIAL CONDITION
March 31, December 31,
2002 2001
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(unaudited)
ASSETS:
Cash and Due from Banks $ 2,117,401 2,177,720
Federal Funds Sold 1,480,000 --
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Cash and Cash equivalents 3,597,401 2,177,720
Interest-bearing deposits at banks 694,000 893,000
Investment Securities
available for sale 7,679,551 8,542,280
Investment Securities held to
maturity (fair value approximates
$5,396,718 at March 31, 2002
and $2,343,770 at December 31, 2001) 5,463,310 2,359,087
Federal Reserve Bank stock, at cost 142,550 142,550
Federal Home Loan Bank stock, at cost 108,800 107,800
Pacific Coast Bankers' Bank
stock, at cost 50,000 50,000
Loans held for sale 387,532 135,000
Loans
Construction 3,207,525 1,781,829
Real estate 4,780,747 4,497,742
Commercial 4,290,175 3,952,089
Installment 337,715 868,671
Unearned fees and discounts 14,827 30,157
Allowance for loan losses (126,000) (111,600)
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Total Loans 12,504,989 11,018,888
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Fixed Assets, net 513,585 523,848
Accrued Interest Receivable 120,344 130,555
Prepaid & Other Assets 63,178 69,700
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Total Assets $ 31,325,240 26,150,428
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LIABILITIES:
Deposits
Non-interest Bearing $ 16,950,588 12,814,625
Interest Bearing
Money market 6,322,475 5,187,852
Savings 420,246 213,980
Time deposits of $100,000
or greater, due in one year 710,428 910,428
Time deposits less than
$100,000, due in one year 927,783 873,665
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Total Deposits 25,331,520 20,000,550
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Fed Funds Purchased 160,000
Federal Home Loan
Bank Advance 1,250,000 1,250,000
Accrued Interest Payable 45,871 31,099
Accrued Expenses &
Other Payables 43,086 58,643
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Total Liabilities 26,670,477 21,500,292
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STOCKHOLDERS' EQUITY
Common Stock, authorized
10,000,000 shares with
a par value of $5
per share; issued and
outstanding 545,646 and
543,982 at December
31, 2001 and December 31,
2000, respectively 2,728,230 2,728,230
Additional paid-in capital 2,590,893 2,590,893
Accumulated deficit (659,378) (672,207)
Accumulated other
comprehensive income (4,982) 3,220
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Total Equity 4,654,763 4,650,136
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Total Liabilities & Equity $ 31,325,240 26,150,428
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