CHINO, Calif., July 25, 2005 (PRIMEZONE) -- The Board of Directors of Chino Commercial Bank, N.A. announced the results of operations for the three months ended June 30, 2005 with net income of $195,630 or $0.22 per diluted share, a 42.3% increase over net income of $137,471 or $0.16 per diluted share for the second quarter of 2004. Net income for the six months ended June 30, 2005 was $372,697 or $0.42 per diluted share, a 46.0% increase over net income of $255,226 or $0.29 per diluted share for the six months ended June 30, 2004. Dann H. Bowman, President and Chief Executive Officer stated, "The continued strong growth of the Bank coupled with the steady rise in short-term interest rates has generated outstanding earnings year to date."
During the second quarter Total Assets increased by 30.3% to $100.4 million from $77.1 million at December 31, 2004. Total Deposits increased 32.4% to $93.7 million at June 30, 2005 as compared to $70.7 million at December 31, 2004. Total Loans increased 6.6% to $36.7 million at June 30, 2005 as compared to $34.4 million at December 31, 2004. On June 30, 2005, the Bank has one delinquent loan greater than 30 days totaling $14,000, and no non-accrual or non-performing loans or other real estate owned.
The increased earnings for the six months ended June 30, 2005 were primarily due to an increase in the net interest margin of $553,784. The Bank posted net interest income of $1,879,755 for the six months ended June 30, 2005 as compared to $1,325,971 for the same period last year. These increases in income were partially offset by an increase in general and administrative expenses of $306,286 resulting from increased Salary and benefits expense, Marketing and Other expenses. The Bank posted net interest income of $999,017 for the three months ended June 30, 2005 as compared to $700,288 for the same quarter last year. These increases in income were partially offset by an increase in general and administrative expenses of $168,336 resulting from increases in salary and benefits expense, marketing, data and item processing fees, and other expenses.
Average interest-earning assets were $73.8 million with average interest-bearing liabilities of $15.9 million yielding a net interest margin of 5.10% for the six months ended June 30, 2005 as compared to average interest-bearing assets of $60.0 million with average interest-bearing liabilities of $13.0 million yielding a net interest margin of 4.42% for the six months ended June 30, 2004. The increase in net interest margin coincides with the growth in the loan portfolio and the steady rise in short-term interest rates.
Average interest-earning assets were $75.1 million with average interest-bearing liabilities of $16.7 million yielding a net interest margin of 5.32% for the three months ended June 30, 2005 as compared to average interest-bearing assets of $67.1 million with average interest-bearing liabilities of $13.8 million yielding a net interest margin of 4.17% for the three months ended June 30, 2004.
General and administrative expenses were $1,491,416 for the six months ended June 30, 2005 as compared to $1,185,130 for the six months ended June 30, 2004. The largest component of general and administrative expenses was salary and benefits expense of $717,541 for the six months ended June 30, 2005 as compared to $602,078 for the six months ended June 30, 2004. Salary and benefits increased due to higher average full-time equivalent staff, salary increases, accrued incentive compensation and retirement expenses, and temporary staffing expenses for the six months ended June 30, 2005 as compared to the six months ended June 30, 2004. Also increased were Marketing expenses, which increased $14,746, and Other expenses, which increased $153,887 due to client service charges and the reserve for unfunded commitments.
General and administrative expenses were $784,389 for the three months ended June 30, 2005 as compared to $616,053 for the three months ended June 30, 2004. The largest component of general and administrative expenses was salary and benefits expense of $383,045 for the second quarter of 2005 as compared to $294,264 for the second quarter of 2004. Salary and benefits increased due to higher average full-time equivalent staff, salary increases, accrued incentive compensation, and temporary staffing expenses for the second quarter of 2005 as compared to second quarter of 2004. Other expenses increased by $66,667 for the comparable three-month period due to primarily to an increase in the reserve for unfunded commitments and client service charges. Also increased were Advertising and marketing expenses, which increased $9,562 for marketing campaigns.
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 N. A.
STATEMENTS OF FINANCIAL CONDITION
June 30, December 31,
2005 2004
----------- ------------
(unaudited)
ASSETS:
Cash and Due from Banks $ 5,155,883 $ 2,374,688
Federal Funds Sold 28,445,000 10,925,000
----------- ------------
Cash and Cash
equivalents 33,600,883 13,299,688
Interest-bearing
deposits at banks 5,331,000 6,271,000
Investment Securities
available for sale 15,528,597 15,562,826
Investment Securities
held to maturity (fair
value approximates
$5,804,854 at June 30,
2005 and $4,859,395 at
December 31, 2004) 5,741,228 4,801,024
Federal Reserve Bank
stock, at cost 159,600 159,600
Federal Home Loan Bank
stock, at cost 355,000 283,500
Pacific Coast Bankers'
Bank stock, at cost 50,000 50,000
Loans
Construction 3,194,338 3,520,772
Real estate 26,128,669 23,886,582
Commercial 6,758,194 6,534,464
Farm/Agriculture 338,713 346,261
Installment 856,716 635,609
Unearned fees and discounts (144,600) (119,328)
Allowance for loan losses (460,465) (407,046)
----------- ------------
Total Loans 36,671,565 34,397,314
----------- ------------
Fixed Assets, net 1,082,217 389,965
Accrued Interest
Receivable 272,141 258,528
Prepaid & Other
Assets 1,629,310 1,612,617
----------- ------------
Total Assets $100,421,541 $ 77,086,062
============ =============
LIABILITIES:
Deposits
Non-interest Bearing $ 76,046,988 $ 56,112,375
Interest Bearing
Money market 12,709,566 10,231,507
Savings 987,362 926,275
Time deposits of $100,000
or greater, due in one
year 2,199,660 1,802,181
Time deposits less than
$100,000, due in one year 1,760,084 1,668,794
----------- ------------
Total Deposits 93,703,660 70,741,132
----------- ------------
Accrued Interest Payable 34,179 20,642
Accrued Expenses &
Other Payables 423,848 422,994
----------- ------------
Total Liabilities 94,161,687 71,184,768
----------- ------------
STOCKHOLDERS' EQUITY
Common Stock, authorized
10,000,000 shares with a
par value of $3.33 per share;
issued and outstanding 818,453
shares at June 30, 2005 and
December 31, 2004 2,728,230 2,728,230
Additional paid-in capital 2,590,600 2,590,600
Retained earnings 985,342 612,645
Accumulated other
comprehensive loss (44,318) (30,181)
----------- ------------
Total Equity 6,259,854 5,901,294
----------- ------------
Total Liabilities
& Equity $ 100,421,541 $ 77,086,062
============= =============
CHINO COMMERCIAL BANK, N. A.
STATEMENTS OF OPERATIONS
(unaudited)
For the three For the six
months ending months ending
June 30, June 30,
2005 2004 2005 2004
------ ------ ------ ------
Interest Income
Interest
Income -
Securities $ 232,747 $ 171,102 $ 454,307 $ 316,712
Interest
Income -
Fed Funds 74,553 41,237 134,705 59,468
Interest and
fee income
on Loans 751,245 529,571 1,399,819 1,028,410
---------- -------- ---------- ---------
Total
Interest
Income 1,058,545 741,910 1,988,831 1,404,590
---------- -------- ---------- ---------
Interest Expense
Interest
Expense -
Deposits 59,528 41,622 109,076 78,619
---------- -------- ---------- ---------
Total Interest
Expense 59,528 41,622 109,076 78,619
---------- -------- ---------- ---------
Net interest
income 999,017 700,288 1,879,755 1,325,971
---------- -------- ---------- ---------
Provision for
loan losses 36,350 16,000 53,418 16,000
---------- -------- ---------- ---------
Net interest
income after
provision for
loan losses 962,667 684,288 1,826,337 1,309,971
---------- -------- ---------- ---------
Non-interest
income
Service Charges
on Deposit
Accounts 111,600 96,573 220,535 199,839
Other
miscellaneous
fee income 2,467 1,416 4,162 2,834
Income from
Mortgage
Banking 11,479 30,416 17,697 45,861
Income from Bank
Owned Life
Insurance 15,656 16,310 31,473 27,064
---------- -------- ---------- ---------
Total
Non-interest
income 141,202 144,715 273,867 275,598
---------- -------- ---------- ---------
General &
Administrative
Expenses
Salaries &
Benefits 383,045 294,264 717,541 602,078
Occupancy &
Equipment 64,093 64,117 127,112 122,649
Data & Item
Processing 53,912 48,338 104,782 95,009
Advertising &
Marketing 34,227 24,665 59,799 45,053
Audit &
Professional
fees 45,326 51,925 95,271 95,066
Insurance 5,982 5,657 11,964 11,312
Directors'
fees and
expenses 19,252 15,202 37,807 30,710
Other expenses 178,552 111,885 337,140 183,253
---------- -------- ---------- ---------
Total
general &
administrative
expenses 784,389 616,053 1,491,416 1,185,130
---------- -------- ---------- ---------
Income before
income tax
expense 319,480 212,950 608,788 400,439
Income tax
expense 123,850 75,479 236,091 145,213
---------- -------- ---------- ---------
Total income $ 195,630 $ 137,471 $ 372,697 $ 255,226
========== ========= ========== =========
Basic Earnings
per share (1) $ 0.24 $ 0.17 $ 0.46 $ 0.31
========== ========= ========== =========
Diluted
Earnings
per share (1) $ 0.22 $ 0.16 $ 0.42 $ 0.29
========== ========= ========== =========
(1) The 2004 earnings per share calculations have been adjusted for
the 3 for 2 stock split declared to shareholders of record on
May 20, 2004.
CHINO COMMERCIAL BANK
Selected Financial Highlights
For the three months For the six months
ended June 30, ended June 30,
-------------------- -------------------
2005 2004 2005 2004
-------- ------ ------ -------
Selected Operating
Data:
Net interest
income $ 999,017 $ 700,288 $ 1,879,755 $ 1,325,971
Provision
for loan
losses 36,350 16,000 53,418 16,000
Non-interest
income 141,202 144,715 273,867 275,598
Non-interest
expense 784,389 616,053 1,491,416 1,185,130
Net income $ 195,630 $ 137,471 $ 372,697 $ 255,226
Share Data:
Basic income
per share $ 0.24 $ 0.17 $ 0.46 $ 0.31
Diluted income
per share $ 0.22 $ 0.16 $ 0.42 $ 0.29
Weighted average
common shares
outstanding
Basic 818,453 818,453 818,453 818,453
Diluted 884,049 881,238 883,468 878,335
Performance Ratios:
Return on
average
assets 0.96% 0.75% 0.93% 0.78%
Return on
average
equity 12.66% 9.97% 12.20% 9.31%
Equity to total
assets at the
end of the
period 6.23% 5.91% 6.23% 5.91%
Net interest
spread 4.20% 3.20% 4.01% 3.47%
Net interest
margin 5.32% 4.17% 5.10% 4.42%
Average interest-
earning assets to
average-
bearing
liabilities 450.43% 487.15% 463.57% 462.99%
Core efficiency
ratio 68.77% 72.90% 69.19% 73.97%
Non-interest
expense to
average
assets 3.84% 3.38% 3.72% 3.63%
Selected Balance
Sheet Data: 6/30/2005 12/31/2004
------------ ----------
Total assets $ 100,421,541 $ 77,086,062
Investment securities
held to maturity 5,741,228 4,801,024
Investment securities
available for sale 15,528,597 15,562,826
Loan receivable,
net 36,671,565 34,397,314
Deposits 93,703,660 70,741,132
Non-interest bearing
deposits 76,046,988 56,112,375
Stockholders'
equity $ 6,259,854 $ 5,901,294
Regulatory capital ratios:
Average equity
to average
assets 7.62% 8.00%
Leverage capital 7.72% 8.36%
Tier I risk based 12.26% 13.80%
Risk-based capital 13.28% 14.81%
Asset Quality Ratios:
Allowance for loan losses as
a percent of gross loans
receivable 1.23% 1.17%
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 1 1