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