CHINO, Calif., July 23, 2002 (PRIMEZONE) -- The Board of Directors of Chino Commercial Bank, N.A. (OTCBB:CKNA) announced the results of operations for the second quarter of 2002 with net income for the quarter of $33,810 or $0.06 per share as compared to a loss of $52,429 or $(0.10) per share for the second quarter of 2001. The Bank posted net income year-to-date of $46,640 or $0.09 per share as compared to a loss of $137,668 or $(0.25) per share for the six months ended June 30, 2001.
Dann H. Bowman, President and Chief Executive Officer stated: "We are extremely pleased with the progress of the Bank, and excited to report our second quarter earnings which reflect a 163% increase over the first quarter earnings. The Bank continues to grow very rapidly as assets increased by 8.5% during the second quarter or 29.8% year-to-date to $34.0 million." Loans also increased to $13.9 million at June 30, 2002 as compared to $11.0 million at December 31, 2001. On June 30, 2002, the Bank had no delinquencies or non-accrual loans.
Total Deposits increased to $28.6 million at June 30, 2002 as compared to $20.0 million at December 31, 2001. Non-interest bearing deposits exceeded 65% of total deposits at June 30, 2002.
Bowman stated, "The growth and development of the Bank continues to exceed Plan, both in terms of assets and earnings." The second quarter of 2002 results of operations reflects Total income of $33,810 as compared to a Total loss for the second quarter of 2001 of $52,429 or $(0.10) per share. The increase in Total income for the quarter was due primarily to an increase in Total net interest income of $82,806 in addition to an increase of $62,937 in Non-interest income as compared to the second quarter of 2001 offset by the increase in general and administrative expenses. The Non-interest income was derived from an increase in Service Charges on Deposit Accounts and Income from Mortgage Banking. The Bank originated and sold $2.5 million in loans during the second quarter and $5.7 million year-to-date through two mortgage conduits. The Gain on Securities in 2001 reflects the sale of corporate notes.
The Bank posted net interest income of $388,313 for the three months ended June 30, 2002 as compared to $306,227 for the three months ended June 30, 2001. Average interest-earning assets were $29.3 million with average interest-bearing liabilities of $9.7 million yielding a net interest margin of 5.30% for the second quarter of 2002 as compared to average interest-bearing assets of $20.9 million with average interest-bearing liabilities of $6.1 million yielding a net interest margin of 5.85% for the three months ended June 30, 2001.
The Bank posted net interest income of $707,416 for the six months ended June 30, 2002 as compared to $553,396 for the six months ended June 30, 2001. Average interest-earning assets were $28.2 million with average interest-bearing liabilities of $9.5 million yielding a net interest margin of 5.02% for the six months ended June 30, 2002 as compared to average interest-bearing assets of $18.1 million with average interest-bearing liabilities of $5.4 million yielding a net interest margin of 6.12% for the six months ended June 30, 2001.
General and administrative expenses were $438,889 for the three months ended June 30, 2002 as compared to $359,335 for the three months ended June 30, 2001. General and administrative expenses were $823,792 for the six months ended June 30, 2002 as compared to $686,065 for the six months ended June 30, 2001. The largest component of general and administrative expenses was salary and benefits expense of $186,486 for the three months ended June 30, 2002 as compared to $169,623 for the three months ended June 30, 2001. Salary and benefits expense were $366,302 for the six months ended June 30, 2002 as compared to $329,016 for the six months ended June 30, 2001. Full-time employees increased over the past year from ten employees to fourteen employees, reflected by the increase in salary and benefit expense. A portion of the salary and benefit expenses were offset by an increase in capitalized FAS91 costs as loan volume increased. Other components of general and administrative expenses that affected the increase were Data and Item processing that increased by $19,631 for the comparable three months period and increased by $36,504 for the comparable six month period due primarily to increased transaction volume. Other expenses increased by $32,789 for the comparable three month period and increased by $47,292 for the comparable six month period primarily due to client service charges and courier expenses, that were effected by an increase in escrow deposits; as well as, seminar and training expenses.
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 For the
Three Months Ending Six Months Ending
June 30, June 30,
2002 2001 2002 2001
-------- -------- -------- ---------
Interest Income
Interest Income
- Securities $184,872 $187,206 $360,465 $ 348,965
Interest Income
- Fed Funds 4,447 58,899 15,957 131,179
Interest and fee
income on Loans 252,888 123,926 444,049 186,658
-------- -------- -------- ---------
Total Interest
Income 442,207 370,031 820,471 666,802
-------- -------- -------- ---------
Interest Expense
Interest Expense
- Deposits 49,795 51,248 95,076 100,850
Interest Expense
- Borrowings 4,099 12,556 17,979 12,556
-------- -------- -------- ---------
Total Interest
Expense 53,894 63,804 113,055 113,406
-------- -------- -------- ---------
Total net interest
income 388,313 306,227 707,416 553,396
-------- -------- -------- ---------
Provision for loan
losses 21,000 41,770 35,400 51,630
-------- -------- -------- ---------
Total net interest
income after
provision for
loan losses 367,313 264,457 672,016 501,766
-------- -------- -------- ---------
Non-interest income
Service Charges on
Deposit Accounts 55,996 14,436 100,296 18,683
Other miscellaneous
fee income 1,809 795 2,308 730
Income from Mortgage
Banking 47,581 -- 95,812 --
Gain on the Sale of
Securities -- 27,141 -- 27,141
Other income -- 77 -- 77
-------- -------- -------- ---------
Total Non-interest
income 105,386 42,449 198,416 46,631
-------- -------- -------- ---------
General &
Administrative
Expenses
Salaries & Benefits 186,486 169,623 366,302 329,016
Occupancy & Equipment 59,524 55,829 116,400 108,996
Data & Item Processing 47,748 28,117 88,290 51,786
Advertising &
Marketing 12,496 13,576 23,912 25,482
Audit & Professional
fees 29,491 22,330 53,379 43,558
Insurance 3,060 2,565 6,120 5,130
Other expenses 100,084 67,295 169,389 122,097
-------- -------- -------- ---------
Total general &
administrative
expenses 438,889 359,335 823,792 686,065
-------- -------- -------- ---------
Income tax expense
(benefit) -- -- -- --
-------- -------- -------- ---------
Total income (loss) $ 33,810 $(52,429) $ 46,640 $(137,668)
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Basic Earnings (loss)
per share $ 0.06 $ (0.10) $ 0.09 $ (0.25)
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Diluted Earnings
(loss) per share $ 0.06 $ (0.09) $ 0.08 $ (0.25)
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CHINO COMMERCIAL BANK
STATEMENT OF FINANCIAL CONDITION
June 30, December 31,
2002 2001
------------ ------------
(unaudited)
ASSETS:
Cash and Due from Banks $ 3,315,142 2,177,720
Federal Funds Sold 730,000 --
------------ ------------
Cash and Cash equivalents 4,045,142 2,177,720
Interest-bearing deposits at banks 1,189,000 893,000
Investment Securities available
for sale 7,372,925 8,542,280
Investment Securities held to maturity
(fair value approximates $5,332,109 at
June 30, 2002 and $2,343,770 at
December 31, 2001) 5,240,270 2,359,087
Federal Reserve Bank stock, at cost 139,650 142,550
Federal Home Loan Bank stock, at cost 110,300 107,800
Pacific Coast Bankers' Bank stock,
at cost 50,000 50,000
Loans held for sale 1,189,001 135,000
Loans
Construction 1,808,984 1,781,829
Real estate 7,120,490 4,497,742
Commercial 4,666,786 3,952,089
Installment 460,620 868,671
Unearned fees and discounts 1,195 30,157
Allowance for loan losses (147,000) (111,600)
------------ ------------
Total Loans 13,911,075 11,018,888
------------ ------------
Fixed Assets, net 487,878 523,848
Accrued Interest Receivable 159,864 130,555
Prepaid & Other Assets 60,347 69,700
------------ ------------
Total Assets $ 33,955,452 26,150,428
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LIABILITIES:
Deposits
Non-interest Bearing $ 18,819,948 12,814,625
Interest Bearing
Money market 6,843,721 5,187,852
Savings 617,848 213,980
Time deposits of $100,000 or
greater, due in one year 1,080,812 910,428
Time deposits less than $100,000,
due in one year 1,238,783 873,665
------------ ------------
Total Deposits 28,601,112 20,000,550
------------ ------------
Fed Funds Purchased -- 160,000
Federal Home Loan Bank Advance 500,000 1,250,000
Accrued Interest Payable 27,918 31,099
Accrued Expenses & Other Payables 110,832 58,643
------------ ------------
Total Liabilities 29,239,862 21,500,292
------------ ------------
STOCKHOLDERS' EQUITY
Common Stock, authorized 10,000,000
shares with a par value of $5 per
share; issued and outstanding
545,646 and 545,646 at June 30, 2002
and December 31, 2001, respectively 2,728,230 2,728,230
Additional paid-in capital 2,590,893 2,590,893
Accumulated deficit (625,567) (672,207)
Accumlated other comprehensive
income 22,034 3,220
------------ ------------
Total Equity 4,715,590 4,650,136
------------ ------------
Total Liabilities & Equity $ 33,955,452 26,150,428
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