Chino Commercial Bancorp Reports 26.5% Increase in Third Quarter Earnings

Chino, California, UNITED STATES


CHINO, Calif., Oct. 19, 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 third quarter ended September 30, 2009 with net earnings of $95,080, a 26.5% increase from $75,136 for the same quarter of 2008. The net earnings for the most recent quarter represent $0.13 per diluted share, as compared with $0.10 per diluted share from the same quarter last year. The Company's profit year-to-date was up 9.5% to $287,878 or $0.39 per diluted share as compared with net earnings of $263,012 or $0.35 per diluted share for the same period last year.

Dann H. Bowman, President and Chief Executive Officer, stated, "We are very pleased with the performance of the Bank during the third quarter. Not only did the Bank post a significant improvement in net earnings, but even more important, was that we had no delinquent loans at the quarter-end. At this time in the economic cycle, we are very fortunate to be experiencing such strong performance and earnings."

Financial Condition

Balance sheet changes during the nine months of 2009 include sizeable increases in deposits and loans. Total deposits increased by $22.7 million, or 32.0%, to $93.7 million at September 30, 2009. Much of the growth was in time deposits which increased $12.3 million, or 138.1%. Non-interest bearing demand deposits increased $8.3 million or 25.4% during the nine months of 2009, ending at $40.9 million at September 30, 2009. Combined NOW and money market demand accounts increased to $2.2 million at September 30, 2009, a 7.7% increase from $28.4 million at December 31, 2008, while savings accounts decreased 7.3% from $1.1 million at December 31, 2008 to $1.0 million at September 30, 2009.

Total assets increased from $83.4 million at December 31, 2008 to $104.0 million at September 30, 2009, a 24.7% increase. Gross Loans rose from $49.8 million to $62.2 million, and due from banks time increased from $12.5 million to $16.9 million. Gross loan balances increased in part by the completion of $10.5 million dollar whole loan purchases made during the year, in addition to $1.9 million in organic loan growth.

The Company has experienced two loan losses thus far this year totaling $5,520, one non-performing loan, and very few delinquent loans in the three quarters of 2009.

Earnings

The Company posted net interest income for the quarters ended September 30, 2009 and September 30, 2008 of $1,015,974 and $840,992, respectively. For the nine months ended September 30, the Company posted net interest income of $2,732,607 and $2,626,051 for 2009 and 2008, respectively. Significant contributors to the increase in net interest income were the increased interest and fees on loans and interest from investment securities and due from banks. Loan interest increased $189,541, or 20.3%, to $1,124,989 for the third quarter of 2009 compared with the third quarter of 2008. Year-to-date interest and fees income from loans increased 69,188, or 2.4%, comparing 2009 with 2008. Interest expense on deposits increased $57,055, or 31.3%, comparing the quarters ended September 30, 2009 with September 30, 2008. On a year-to-date comparison, interest on deposits increased $157,967, or 28.8% in 2009 compared to the same period in 2008. Interest from investments and due from banks increased $78,404, or 76.1% and $261,911, or 76.8% for the quarter and nine months ended September 30, 2009 compared to the quarter and nine months ended September 30, 2008. Average interest-earning assets were $81.6 million with average interest-bearing liabilities of $49.0 million, yielding a net interest margin of 4.47% for the nine months ended September 30, 2009; as compared to average interest-bearing assets of $66.4 million with average interest-bearing liabilities of $32.3 million, yielding a net interest margin of 5.28% for the nine months ended September 30, 2008.

Non-interest income totaled $275,322 for the three months ended September 30, 2009, or a 6.1% increase from $259,508 earned during the third quarter of 2008. Non-interest income decreased 5.3% for the nine months ended September 30, 2009 at $775,483, as compared to $819,253 for the nine months ended September 30, 2008. Affecting the decline in non-interest income for year-to-date income through September 30, 2009 were a reduced income from FHLB stock of $15,643 and the recognition of a net probable loss from the sales of Other Real Estate Owned for $14,219. Service charges on deposit accounts also increased by $23,797 in the quarter-to-quarter and decreased $4,189 in the year-to-year comparisons of periods ended September 30, 2009 and 2008.

General and administrative expenses were $861,595 and $2,646,238 for the three and nine months ended September 30, 2009, respectively, as compared to $908,762 and $2,694,059 for the three and nine months ended September 30, 2008. The decreases in General and administrative expenses would have been much greater had the Company not experienced a 122.1% increase for the quarter and a 164.7% increase year-to-date from regulatory assessments.

Income tax expense was $46,797 and $142,269 for the three and nine months ended September 30, 2009, as compared to $33,466 and $126,693 for the same periods of 2008. The effective income tax rate for 2009 and 2008 is approximately 30.8% and 32.5%, respectively.

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
              September 30, 2009 and December 31, 2008


                                           September 30,   December 31,
                                                2009           2008
                                           -------------  -------------
                                            (unaudited)     (audited)
 ASSETS:
 Cash and due from banks                   $  10,905,856  $   3,877,897
                                           -------------  -------------

 Interest-bearing deposits in other banks     16,911,602     12,498,000

 Investment securities available for sale      6,768,646      8,791,651
 Investment securities held to maturity
  (fair value approximates $2,544,000 at
  September 30, 2009 and $3,186,000 at
  December 31, 2008)                           2,495,460      3,167,401
                                           -------------  -------------
   Total investments                          26,175,708     24,457,052
                                           -------------  -------------
 Loans
  Construction                                         0        820,888
  Real estate                                 52,207,408     37,794,240
  Commercial                                   9,167,993     10,607,103
  Installment                                    805,351        543,937
                                           -------------  -------------
   Gross loans                                62,180,752     49,766,168
  Unearned fees and discounts                     (4,973)       (77,542)
                                           -------------  -------------
   Loans net of unearned fees and discount    62,175,779     49,688,626
  Allowance for loan losses                   (1,128,796)      (702,409)
                                           -------------  -------------
    Net loans                                 61,046,983     48,986,217
                                           -------------  -------------

 Accrued interest receivable                     327,779        313,428
 Restricted stock                                677,650        677,650
 Fixed assets, net                             1,871,733      1,980,476
 Other real estate                               198,928        653,131
 Prepaid & other assets                        2,815,805      2,447,295
                                           -------------  -------------
   Total assets                            $ 104,020,442  $  83,393,146
                                           =============  =============

 LIABILITIES:
 Deposits
  Non-interest bearing                     $  40,891,066  $  32,600,750
  Interest Bearing
   NOW and money market                       30,636,568     28,434,407
   Savings                                       986,462      1,064,668
   Time deposits less than $100,000            5,548,284      3,842,310
   Time deposits of $100,000 or greater       15,639,509      5,055,617
                                           -------------  -------------
    Total deposits                            93,701,889     70,997,752
                                           -------------  -------------


 Accrued interest payable                        105,354         56,061
 Borrowings from Federal Home Loan
  Bank (FHLB)                                          0      2,400,000
 Accrued expenses & other payables               677,545        665,580
 Subordinated debentures                       3,093,000      3,093,000
                                           -------------  -------------
   Total liabilities                          97,577,788     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 September 30, 2009
   and December 31, 2008, respectively         2,532,414      2,617,542
  Retained earnings                            3,822,114      3,534,236
  Accumulated other comprehensive income          88,124         28,975
                                           -------------  -------------
   Total equity                                6,442,652      6,180,753
                                           -------------  -------------
    Total liabilities & stockholders'
     equity                                $ 104,020,440  $  83,393,146
                                           =============  =============


                      CHINO COMMERCIAL BANCORP
                 CONSOLIDATED STATEMENTS OF INCOME
                            (unaudited)

                          For the three months     For the nine months
                                 ended                   ended
                              September 30,           September 30,
                            2009        2008        2009        2008
                         ----------  ----------  ----------  ----------

 Interest income
 Investment securities
  and due from banks     $  181,370  $  102,966  $  602,975  $  341,064
 Interest on Federal
  funds sold                     46      35,855         102      66,832
 Interest and fee
  income on loans         1,124,989     935,448   2,989,001   2,919,813
                         ----------  ----------  ----------  ----------
   Total interest
    income                1,306,405   1,074,269   3,592,078   3,327,709
                         ----------  ----------  ----------  ----------
 Interest expense
  Deposits                  239,369     182,314     705,764     547,797
  Interest on Federal
   funds purchased                0           0         115         973
  Interest on FHLB
   borrowings                    99           0         704           0
  Other borrowings           50,963      50,963     152,888     152,888
                         ----------  ----------  ----------  ----------
   Total interest
    expense                 290,431     233,277     859,471     701,658
                         ----------  ----------  ----------  ----------
    Net interest
     income               1,015,974     840,992   2,732,607   2,626,051
                         ----------  ----------  ----------  ----------
  Provision for loan
   losses                   287,824      83,136     431,705     361,540
                         ----------  ----------  ----------  ----------
    Net interest
     income after
     provision for
     loan losses            728,150     757,856   2,300,902   2,264,511
                         ----------  ----------  ----------  ----------
 Non-interest income
  Service charges on
   deposit accounts         247,719     223,922     704,556     708,745
  Other miscellaneous
   income                     6,889       9,411      13,943      27,131
  Dividend income from
   restricted stock           3,791       9,978       6,606      36,461
  Income from bank-owned
   life insurance            16,923      16,197      50,378      46,916
                         ----------  ----------  ----------  ----------
    Total non-interest
     income                 275,322     259,508     775,483     819,253
                         ----------  ----------  ----------  ----------
 General and admini-
  strative expenses
  Salaries and employee
   benefits                 450,624     467,413   1,383,099   1,444,704
  Occupancy and
   equipment                 86,239      95,552     242,522     261,912
  Data and item
   processing                77,134      80,659     218,900     245,726
  Advertising and
   marketing                 15,777      19,889      49,569      60,504
  Legal and professional
   fees                      47,714      49,142     137,900     144,763
  Regulatory Assessments     48,947      22,039     167,670      63,337
  Insurance                   8,096       7,898      23,540      23,894
  Directors' fees and
   expenses                  18,963      19,417      54,621      57,718
  Other expenses            108,101     146,753     368,417     391,501
                         ----------  ----------  ----------  ----------
    Total general &
     administrative
     expenses               861,595     908,762   2,646,238   2,694,059
                         ----------  ----------  ----------  ----------
  Income before income
   tax expense              141,877     108,602     430,147     389,705
  Income tax expense         46,797      33,466     142,269     126,693
                         ----------  ----------  ----------  ----------
    Net income           $   95,080  $   75,136  $  287,878  $  263,012
                         ==========  ==========  ==========  ==========
  Basic earnings per
   share                 $     0.14  $     0.11  $     0.41  $     0.38
                         ==========  ==========  ==========  ==========
  Diluted earnings per
   share                 $     0.13  $     0.10  $     0.39  $     0.35
                         ==========  ==========  ==========  ==========



                          CHINO COMMERCIAL BANCORP
                        Other Financial Information


 CREDIT QUALITY                                    End of period
 (unaudited)                               September 30,   December 31,
                                                2009           2008
                                           -------------  -------------
 Non-performing loans                      $      49,536  $     412,343
                                           =============  =============
 Non-performing loans to total loans               0.08%          0.83%
 Non-performing loans to total assets              0.05%          0.49%
 Allowance for loan losses to loans                1.82%          1.41%

 OTHER PERIOD-END STATISTICS
 (unaudited)                               September 30,   December 31,
                                                2009           2008
                                           -------------  -------------
 Shareholders equity to total assets               6.19%          7.41%
 Loans to deposits                                66.36%         70.10%
 Non-interest bearing deposits to
  total deposits                                  43.64%         45.92%



                              For the three months  For the nine months
                                     ended                 ended
                                  September 30          September 30
                                 2009      2008        2009      2008
                               --------  --------    --------  --------
 KEY FINANCIAL RATIOS
 (unaudited)
 Return on average equity         6.16%     5.19%       6.20%     6.01%
 Return on average assets         0.39%     0.40%       0.42%     0.47%
 Net interest margin              4.57%     5.02%       4.47%     5.28%
 efficiency ratio                85.86%    89.33%      86.02%    87.36%
 Net chargeoffs to average
  loans                           0.01%     0.18%       0.01%     0.81%

 AVERAGE BALANCES
 (thousands, unaudited)
 Average assets                $ 98,459  $ 75,750    $ 91,347  $ 75,052
 Average interest-earning
  assets                       $ 88,184  $ 66,638    $ 81,647  $ 66,444
 Average gross loans           $ 61,845  $ 50,226    $ 54,712  $ 52,583
 Average deposits              $ 87,848  $ 65,839    $ 80,536  $ 65,173
 Average equity                $  6,179  $  5,818    $  6,193  $  5,833

        

Mot-clé


Coordonnées