Chino Commercial Bancorp Reports Year End Results

Chino, California, UNITED STATES


CHINO, Calif., Feb. 2, 2010 (GLOBE NEWSWIRE) -- The Board of Directors of Chino Commercial Bancorp (OTCBB:CCBC), the parent company of Chino Commercial Bank NA, announced the results of operations for the Bank and the consolidated holding company for the three and twelve months ended December 31, 2009. For the full year ended December 31, 2009 the company posted a consolidated net income of $350,671, an increase of 13.5% from net income of $308,948 for 2008. Net income for the quarter ended December 31, 2009 increased 36.7% to $62,793 from $45,936 for quarter ended December 31, 2008. Net income per basic share for the year ended December 31, 2009 was $0.50, a 13.6% increase over $0.44 per share for the year ended December 31, 2008. Net income per fully diluted share for fiscal year 2009 was $0.48 a 17.1% increase over $0.41 per diluted share for fiscal year 2008. Net income for the fourth quarter ended December 31, 2009 was $62,793, a 36.7% increase over $45,936 for the fourth quarter of 2008. Similarly, earnings per diluted share for the fourth quarter ended December 31, 2009 was $0.08, as compared to $0.06 per diluted share for the fourth quarter of 2008.

Dann H. Bowman, President and Chief Executive Officer, stated, "We are very pleased with the improved earnings during 2009, in addition to the significant increase in the Bank's earning assets.  Looking forward, we are optimistic about 2010 and beyond. The financial condition of the Bank is strong, the loan quality is good, and we see many opportunities for growth and expansion over the next several years."

Financial Condition

Total deposits increased by 30.0% to $92.3 million at December 31, 2009 a substantial increase from $71.0 million at December 31, 2008. Core deposits increased 13.4%, from $65.9 million at December 31, 2008 to $74.7 million at December 31, 2009. The Bank's core deposits to total deposits remains at a very favorable 81.0%.

At December 31, 2009, total assets were $103.6 million, an increase of $20.2 million or 24.2% from December 31, 2008.

Gross loans increased to $61.4 million at December 31, 2009 from $49.8 million at December 31, 2008, or an increase of 23.4%, while total investments increased to $33.3 million from $24.5 million at December 31, 2008, a 36.1% increase.

Earnings

The Company posted net interest income of $3,725,014 for the year ended December 31, 2009 as compared to $3,425,701 for the year ended December 31, 2008. Average interest-earning assets were $84.5 million with average interest-bearing liabilities of $51.4 million yielding a net interest margin of 4.41% for the year ended December 31, 2009 as compared to average interest-bearing assets of $68.4 million with average interest-bearing liabilities of $34.1 million yielding a net interest margin of 5.02% for the year ended December 31, 2008. The 39 basis points decrease in the net interest margin was primarily the effect of downward re-pricing of the benchmark for Federal funds rate and related Prime rate.

The Bank posted net interest income of $992,405 for the three months ended December 31, 2009 as compared to $799,650 for the three months ended December 31, 2008. Average interest-earning assets were $93.1 million with average interest-bearing liabilities of $58.6 million yielding a net interest margin of 4.23% for the fourth quarter of 2009 as compared to average interest-bearing assets of $71.6 million with average interest-bearing liabilities of $39.2 million yielding a net interest margin of 4.45% for the three months ended December 31, 2008.

Non-interest income totaled $1,077,558, or a decrease of 1.4% from $1,092,529 earned during the year ended December 31, 2008. While service charges on deposit accounts increased $34,945, or 3.7% to $985,202 due to higher volume of returned items activity, dividend income from restricted stock decreased $33,951, or 78.3% to $9,430 and other miscellaneous income decreased $20,437, or 56.8% to 15,537 for year ended December 31, 2009.

Non-interest income for the quarter ended December 31, 2009 totaled $302,075 or a 10.5% increase from the fourth quarter of 2008. Service charges on deposit accounts similarly increased 16.2% to $280,645 due to increase of overdraft and return item charges. 

General and administrative expenses were $860,294 for the three months ended December 31, 2009 or a decrease of 2.2% as compared to $879,843 for the three months ended December 31, 2008. General and administrative expenses were $3,506,534 for the year ended December 31, 2009 as compared to $3,573,902 for the year ended December 31, 2008. The largest component of general and administrative expenses was salary and benefits expense which totaled $516,093 for the three months ended December 31, 2009 as compared to $479,931 for the three months ended December 31, 2008. Salary and benefits expense were $1,899,192 for the year ended December 31, 2009 as compared to $1,924,635 for the year ended December 31, 2008. The decrease in Salaries and benefits expenses for the year was reflective of a decrease in staff due to attrition.

The consolidated Company's income tax expense was $24,040 for the three months ended December 31, 2009 as compared to $37,149 for the three months ended December 31, 2008. Income tax expenses were $166,319 for the year ended December 31, 2009 as compared to $163,842 for the year ended December 31, 2008. The effective income tax rate for 2009 and 2008 was approximately 32% and 35%, 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
December 31, 2009 and December 31, 2008
 
  December 31, 2009   December 31, 2008
  (unaudited)   (audited)
ASSETS:      
Cash and due from banks $3,089,300   $3,877,897
       
Interest-bearing deposits in other banks 25,433,602   12,498,000
       
Investment securities available for sale 5,567,855   8,791,651
Investment securities held to maturity (fair value approximates $2,332,000 at December 31, 2009 and $3,186,000 at December 31, 2008) 2,291,962   3,167,401
Total investments 33,293,419   24,457,052
Loans      
Construction 0   820,888
Real estate 50,931,354   37,794,240
Commercial 9,621,310   10,607,103
Installment 855,564   543,937
Gross loans 61,408,228   49,766,168
Unearned fees and discounts (17,887)   (77,542)
Loans net of unearned fees and discount 61,390,341   49,688,626
Allowance for loan losses (1,277,526)   (702,409)
Net loans 60,112,815   48,986,217
       
Accrued interest receivable 326,206   313,428
Restricted stock 677,650   677,650
Fixed assets, net 3,100,183   1,980,476
Other real estate 24,861   653,131
Prepaid & other assets 2,956,242   2,447,295
Total assets $103,580,676   $83,393,146
       
LIABILITIES:      
Deposits      
Non-interest bearing $35,872,495   $32,600,750
Interest Bearing      
NOW and money market 31,148,654   28,434,407
Savings 1,003,290   1,064,668
Time deposits less than $100,000 6,722,558   3,842,310
Time deposits of $100,000 or greater 17,541,461   5,055,617
Total deposits 92,288,458   70,997,752
       
Accrued interest payable 125,823   56,061
Borrowings from Federal Home Loan Bank (FHLB) 994,000   2,400,000
Accrued expenses & other payables 612,667   665,580
Subordinated debentures 3,093,000   3,093,000
Total liabilities 97,113,948   77,212,393
STOCKHOLDERS' EQUITY      
Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 699,061 shares and 708,420 shares at December 31, 2009 and December 31, 2008, respectively. 2,498,664   2,617,542
Retained earnings 3,884,907   3,534,236
Accumulated other comprehensive income 83,157   28,975
Total stockholders' equity 6,466,728   6,180,753
Total liabilities & stockholders' equity $103,580,676   $83,393,146

 

CHINO COMMERCIAL BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
         
  For the three months ended
December 31,
For the nine months ended
December 31,
  2009 2008 2009 2008
Interest income        
Investment securities and due from banks $180,119 $148,104 $783,094 $489,168
Interest on Federal funds sold 0 15,868 102 82,700
Interest and fee income on loans 1,104,535 907,322 4,093,537 3,827,135
Total interest income 1,284,654 1,071,294 4,876,733 4,399,003
Interest expense        
Deposits 241,253 220,527 947,017 768,324
Interest on Federal funds purchased 0 89 115 1,063
Interest on FHLB borrowings 33 65 737 65
Other borrowings 50,963 50,963 203,850 203,850
Total interest expense 292,249 271,644 1,151,719 973,302
Net interest income 992,405 799,650 3,725,014 3,425,701
Provision for loan losses 347,343 109,998 779,048 471,538
Net interest income after provision for loan losses 645,062 689,652 2,945,966 2,954,163
Non-interest income        
Service charges on deposit accounts 280,645 241,512 985,202 950,257
Other miscellaneous income 1,594 8,843 15,537 35,974
Dividend income from restricted stock 2,825 6,920 9,430 43,381
Income from bank-owned life insurance 17,011 16,001 67,389 62,917
Total non-interest income 302,075 273,276 1,077,558 1,092,529

General and administrative expenses

       
Salaries and employee benefits 516,093 479,931 1,899,192 1,924,635
Occupancy and equipment 80,332 84,070 322,854 345,982
Data and item processing 67,826 77,439 286,726 323,164
Advertising and marketing 14,538 15,778 64,107 76,282
Legal and professional fees 43,992 46,301 181,892 191,064
Regulatory Assessments 52,982 23,609 220,652 86,946
Insurance 8,595 7,746 32,135 31,639
Directors' fees and expenses 17,516 19,657 72,136 77,375
Other expenses 58,420 125,312 426,840 516,815
Total general & administrative expenses 860,294 879,843 3,506,534 3,573,902
Income before income tax expense 86,843 83,085 516,990 472,790
Income tax expense 24,050 37,149 166,319 163,842
Net income $62,793 $45,936 $350,671 $308,948
Basic earnings per share $0.09 $0.07 $0.50 $0.44
Diluted earnings per share $0.08 $0.06 $0.48 $0.41

 

CREDIT QUALITY End of period
(unaudited) December 31, 2009 December 31, 2008
Non-performing loans $1,493,919 $412,343
Non-performing loans to total loans 2.43% 0.83%
Non-performing loans to total assets 1.44% 0.49%
Allowance for loan losses to loans 2.08% 1.41%
     
OTHER PERIOD-END STATISTICS    
(unaudited) December 31, 2009 December 31, 2008
Shareholders equity to total assets 6.24% 7.41%
Loans to deposits 66.54% 70.10%
Non-interest bearing deposits to total deposits 38.87% 45.92%

 

  For the three months
ended December 31
For the year ended
December 31
  2009 2008 2009 2008
KEY FINANCIAL RATIOS        
(unaudited)        
Return on average equity 4.08% 3.19% 7.55% 7.07%
Return on average assets 0.24% 0.23% 0.49% 0.53%
Net interest margin 4.23% 4.45% 4.41% 5.02%
efficiency ratio 90.83% 91.37% 87.15% 88.32%
Net chargeoffs to average loans 0.32% 1.02% 0.36% 0.96%
         
AVERAGE BALANCES        
(thousands, unaudited)        
Average assets $103,811 $80,691 $94,489 $77,419
Average interest-earning assets $93,135 $71,554 $84,513 $68,424
Average gross loans $61,729 $48,607 $56,450 $51,584
Average deposits $93,342 $70,513 $83,764 $66,515
Average equity $6,152 $5,782 $6,193 $5,821

        

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