Chino Commercial Bancorp Reports Quarterly and Year-to-Date Earnings

Chino, California, UNITED STATES


CHINO, Calif., July 20, 2009 (GLOBE NEWSWIRE) -- The Board of Directors of Chino Commercial Bancorp (OTCBB: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 second quarter ended June 30, 2009 with net earnings of $73,529, a 49.8% reduction from $146,405 for the same quarter of 2008. The net earnings for the most recent quarter represent $0.10 per diluted share, as compared with $0.19 per diluted share from the same quarter last year. However, the Bank's profit year-to-date was up 2.6% to $192,798 or $0.26 per diluted share as compared with net earnings of $187,876 or $0.25 per diluted share for the same period last year.

Dann H. Bowman, President and Chief Executive Officer, stated, "Earnings for the Bank have been quite strong; however, a FDIC special assessment during the second quarter and higher provisions for possible loan losses lowered the Bank's net profit below the same period last year. Despite these unanticipated expenses, we are very pleased with the Bank's stability and earnings overall. During a time when many organizations are suffering from credit problems, we are proud to report at the end of June, the Company had only one loan which was delinquent more than 30 days."

Financial Condition

Balance sheet changes during the first half of 2009 include sizeable increases in deposits, and loans. Total deposits increased by $13.0 million, or 18.3%, to $84.0 million at June 30, 2009. The Company experienced increases in all deposit categories. Much of the growth was in time deposits, which increased $7.9 million, or 89.2%. Non-interest bearing demand deposits increased $2.5 million, or 7.6%, during the first half of 2009, ending at $35.1 million at June 30, 2009. Combined NOW and money market account balances increased $2.5 million, or 8.9%, to $28.4 million.

Total assets increased from $83.4 million at December 31, 2008 to $94.3 million at June 30, 2009, a 13.0% increase. Gross Loans rose from $49.8 million to $57.1 million, and due from banks time increased from $12.5 million to $18.2 million. Gross loan balances increased in part by the completion of a $6.4 million dollar whole loan purchase in early May, in addition to organic loan growth.

The Company has experienced no loan losses thus far this year, no non-performing loans, and very few delinquent loans in the first and second quarters of 2009.

Earnings

The Company posted net interest income for the quarters ended June 30, 2009 and June 30, 2008 of $894,333 and $900,476, respectively. For the six months ended June 30, the Company posted net interest income of $1,716,633 and $1,785,061 for 2009 and 2008, respectively. Significant contributors to the decline in net interest income were the decreased interest on loans and increased interest on deposits. Loan interest decreased $27,254, or 2.7%, to $972,656 for second quarter of 2009 compared with the second quarter of 2008. The decline in interest income from loans was $120,352, or 6.1%, comparing the first half of 2009 with 2008. Interest expense on deposits increased $65,520, or 39.5%, comparing the quarters ended June 30, 2009 with June 30, 2008. On a year-to-date comparison, interest on deposits increased $100,913, or 27.6%, in 2009 compared to the same period in 2008. Interest from investments increased $92,025, or 81.9%, and $183,507, or 77.1%, for the quarter and six months ended June 30, 2009 compared to the quarter and six months ended June 30, 2008. Average interest-earning assets were $78.3 million with average interest-bearing liabilities of $46.5 million yielding a net interest margin of 4.42% for the six months ended June 30, 2009 as compared to average interest-bearing assets of $66.3 million with average interest-bearing liabilities of $31.7 million yielding a net interest margin of 5.41% for the six months ended June 30, 2008.

Non-interest income totaled $252,708 for the three months ended June 30, 2009, or a 14.4% decrease from $295,356 earned during the second quarter of 2008. Non-interest income decreased 14.4% for the six months ended June 30, 2009 at $500,161, as compared to $559,744 for the six months ended June 30, 2008. Affecting the decline in non-interest income for the second quarter and first half of 2009 were an accrual reversal for unrealized income from FHLB stock of $8,500 and the recognition of a net probable loss from the sales of Other Real Estate Owned for $13,521. Service charges on deposit accounts also declined in the quarter-to-quarter and year-to-year comparisons of periods ended June 30, 2009 and 2008.

General and administrative expenses were $914,067 and $1,784,643 for the three and six months ended June 30, 2009, respectively, as compared to $922,549 and $1,785,298 for the three and six months ended June 30, 2008. The decreases in General and administrative expenses would have been much greater had the Company not experienced a 335.7% increase for the quarter and a 187.5% increase for the first half year from regulatory assessments.

Income tax expense was $31,715 and $95,472 for the three and six months ended June 30, 2009, as compared to $83,105 and $93,227 for the same periods of 2008. The effective income tax rate for 2008 and 2009 is approximately 33.1%.

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 detailed in the Company's SEC filings.



                        CHINO COMMERCIAL BANCORP
                       CONSOLIDATED BALANCE SHEET
                   June 30, 2009 and December 31, 2008


                                  June 30, 2009    December 31, 2008
                                  --------------    -----------------
                                   (unaudited)          (audited)
 ASSETS:
 Cash and due from banks           $  4,399,022        $  3,877,897
                                  --------------      --------------

 Interest-bearing deposits in 
  other banks                        18,205,089          12,498,000

 Investment securities 
  available for sale                  7,037,258           8,791,651
 Investment securities held to
  maturity (fair value 
  approximates $2,822,000 at 
  June 30, 2009 and 
  $3,186,000 at December 31, 
  2008)                               2,784,610           3,167,401
                                  --------------      --------------
     Total investments               28,026,957          24,457,052
                                  --------------      --------------
 Loans
  Construction                                0             820,888
  Real estate                        47,076,433          37,794,240
  Commercial                          9,203,494          10,607,103
  Installment                           784,469             543,937
                                  --------------      --------------
   Gross loans                       57,064,396          49,766,168
  Unearned fees and discounts           (33,163)            (77,542)
                                  --------------      --------------
   Loans net of unearned fees 
    and discount                     57,031,233          49,688,626
  Allowance for loan losses            (846,492)           (702,409)
                                  --------------      --------------
      Net loans                      56,184,741          48,986,217
                                  --------------      --------------

 Accrued interest receivable            327,236             313,428
 Restricted stock                       677,650             677,650
 Fixed assets, net                    1,904,306           1,980,476
 Other real estate                      426,081             653,131
 Prepaid & other assets               2,313,372           2,447,295
                                  --------------      --------------
     Total assets                  $ 94,259,365        $ 83,393,146
                                  ==============      ==============

 LIABILITIES:
 Deposits
  Non-interest bearing             $ 35,084,544        $ 32,600,750
  Interest Bearing
   NOW and money market              30,977,628          28,434,407
   Savings                            1,117,301           1,064,668
   Time deposits less than 
    $100,000                          4,719,729           3,842,310
   Time deposits of $100,000 
    or greater                       12,117,871           5,055,617
                                  --------------      --------------
     Total deposits                  84,017,073          70,997,752
                                  --------------      --------------
 
 Accrued interest payable               123,166              56,061 
 Borrowings from Federal Home
  Loan Bank                                   0           2,400,000 
 Accrued expenses & other payables      695,767             665,580
 Subordinated debentures              3,093,000           3,093,000
                                  --------------      --------------
     Total liabilities               87,929,006          77,212,393 
                                  --------------      --------------

 STOCKHOLDERS' EQUITY
   Common stock, authorized 
    10,000,000 shares with no 
    par value, issued and 
    outstanding 701,311 shares 
    and 708,420 shares at 
    June 30, 2009 and 
    December 31, 2008, 
    respectively.                     2,532,414           2,617,542
   Retained earnings                  3,727,034           3,534,236
   Accumulated other 
    comprehensive income                 70,911              28,975
                                  --------------      --------------
     Total equity                     6,330,359           6,180,753
                                  --------------      --------------
       Total liabilities & 
        stockholders' equity       $ 94,259,365        $ 83,393,146
                                  ==============      ==============


                          CHINO COMMERCIAL BANCORP
                     CONSOLIDATED STATEMENTS OF INCOME
                                 (unaudited)

                           For the three months      For six months 
                               ended June 30         ended June 30
                              2009       2008        2009       2008
                           ---------  ---------   ---------  ---------
  Interest income
   Investment securities
    and due from banks     $ 204,323  $ 112,298   $ 461,605  $ 238,098
   Interest on Federal
    funds sold                    22      5,987          56     30,978 
   Interest and fee
    income on loans          972,656    999,910   1,864,013  1,984,365
                           ---------  ---------   ---------  ---------
    Total interest income  1,117,001  1,118,195   2,285,674  2,253,441
                           ---------  ---------   ---------  ---------
  Interest expense
   Deposits                  231,387    165,867     466,395    365,482
   Interest on Federal
    funds purchased                2        889         115        973
   Interest on FHLB
    borrowings                   316          0         606          0
   Other borrowings           50,963     50,963     101,925    101,925
                           ---------  ---------   ---------  ---------
    Total interest
     expense                 282,668    217,719     569,041    468,380 
                           ---------  ---------   ---------  ---------
     Net interest income     894,333    900,476   1,716,633  1,785,061 
                           ---------  ---------   ---------  ---------
  Provision for loan
   losses                    127,730     43,773     143,881    278,404 
                           ---------  ---------   ---------  ---------
  Net interest income after
   provision for loan
    losses                   766,603    856,703   1,572,752  1,506,657
                           ---------  ---------   ---------  ---------
  Non-interest income
   Service charges on
    deposit accounts         243,876    252,265     456,837    484,823
   Other miscellaneous
    fee income                (2,547)     9,246       7,054     17,719
   Dividend income from
    restricted stock          (5,346)    18,238       2,815     26,483 
   Income from bank owned
    life insurance            16,725     15,607      33,455     30,719 
                           ---------  ---------   ---------  ---------
    Total non-interest
     income                  252,708    295,356     500,161    559,744
                           ---------  ---------   ---------  ---------
  General and adminis-
   trative expenses
   Salaries and employee
    benefits                 443,780    499,499     932,475    977,291 
   Occupancy and
    equipment                 78,672     82,578     156,283    166,359 
   Data and item
    processing                68,285     82,390     141,766    165,066 
   Advertising and
    marketing                 17,919     12,786      33,792     40,615
   Legal and professional
    fees                      45,121     50,309      90,186     95,621
   Regulatory Assessments     90,694     20,817     118,723     41,298 
   Insurance                   7,660      7,768      15,444     15,996
   Directors' fees and
    expenses                  17,451     19,125      35,658     38,301 
   Other expenses            144,485    147,277     260,316    244,751 
                           ---------  ---------   ---------  ---------
    Total general &
     administrative
     expenses                914,067    922,549   1,784,643  1,785,298 
                           ---------  ---------   ---------  ---------
  Income before income
   tax expense               105,244    229,510     288,270    281,103 
  Income tax expense          31,715     83,105      95,472     93,227
                           ---------  ---------   ---------  ---------
    Net income             $  73,529  $ 146,405   $ 192,798  $ 187,876
                           =========  =========   =========  =========
  Basic earnings per
   share                   $    0.10  $    0.21   $    0.27  $    0.27
                           =========  =========   =========  =========
  Diluted earnings per
   share                   $    0.10  $    0.19   $    0.26  $    0.25
                           =========  =========   =========  =========


 CREDIT QUALITY                             End of Period
                                        June 30,    December 31, 
                                          2009         2008
                                      ------------  ------------
 Non-performing loans                   $      --     $ 412,343 
                                      ------------  ------------

 Non-performing loans to total loans          n/a          0.83%
 Non-performing loans to total assets         n/a          0.49%
 Allowance for loan losses to loans          1.48%         1.41%

 OTHER PERIOD-END STATISTICS            June 30,    December 31,
 (unaudited)                              2009          2008
                                      ------------  ------------
 Shareholders equity to total assets         6.72%         7.41%
 Loans to deposits                          67.92%        70.10%
 Non-interest bearing deposits to 
  total deposits                            41.76%        45.92%


                           For the three months      For six months 
                               ended June 30         ended June 30
                              2009       2008        2009       2008
                           ---------  ---------   ---------  ---------
  KEY FINANCIAL RATIOS
  (unaudited)
  Return on average equity     4.76%     10.07%       6.22%      6.42%
  Return on average assets     0.32%      0.80%       0.44%      0.50%
  Net interest margin          4.39%      5.54%       4.42%      5.41%
  Efficiency ratio            89.67%     80.08%      86.09%     86.40%
  Net chargeoffs to  
   average loans                n/a       0.74%        n/a       0.62%

  AVERAGE BALANCES
  (thousands, unaudited)
  Average assets             $91,270    $73,541     $87,733    $74,516
  Average interest-earning
   assets                    $81,633    $65,411     $78,324    $66,347 
  Average gross loans        $53,188    $54,224     $51,086    $53,775 
  Average deposits           $80,250    $63,859     $76,817    $64,837 
  Average equity             $ 6,175    $ 5,841     $ 6,201    $ 5,852

        

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