CHINO, Calif., April 19, 2019 (GLOBE NEWSWIRE) -- The Board of Directors of Chino Commercial Bancorp (OTC: 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 first quarter ended March 31, 2019, with net earnings of $625 thousand, or an increase of 23%, compared with net income of $509 thousand for the same quarter last year.  Net income per basic and diluted share was $0.34 for the first quarter of 2019 and $0.27 for the same quarter 2018, respectively.   

Dann H. Bowman, President and Chief Executive Officer stated, “The economic strength of the Inland Empire is supporting tremendous growth opportunities for the Bank, and the first quarter marked new record levels for total assets, loans, revenue and net earnings.  In general, this is a very good time for the Bank and we are pleased and excited about the future.”

Financial Condition

At March 31, 2019, total assets were $209.5 million, an increase of $7.5 million or 3.7% over $201.9 million at December 31, 2018.  Total deposits increased by 2.8% or $4.8 million during the first quarter to $175.8 million, compared to $171.0 million as of December 31, 2018. At March 31, 2019, the Company’s core deposits represent 94.2% of the total deposits.

Gross loans increased by 2.6% or $3.5 million as of March 31, 2019 to $135.7 million, as compared with $132.2 million as of December 31, 2018.  The Bank did not have any nonperforming loans for the quarter ended March 31, 2019, and as of December 31, 2018, respectively.  OREO properties remained at zero as of March 31, 2019 and December 31, 2018, respectively.

Earnings

The Company posted net interest income of $2.0 million and $1.7 million for the three months ended March 31, 2019 and 2018, respectively, or an increase of $309 thousand or 17.9%.  Average interest-earning assets were $187.3 million with average interest-bearing liabilities of $98.6 million, yielding a net interest margin of 4.40% for the first quarter of 2019, as compared to the average interest-earning assets of $173.5 million with average interest-bearing liabilities of $91.0 million, yielding a net interest margin of 4.03% for the first quarter of 2018.

Non-interest income totaled $425 thousand for the first quarter of 2019, or an increase of 10.0% as compared with $386.5 thousand earned during the same quarter last year. Service charges on deposit accounts, the largest component of non-interest income, increased by $49.0 thousand or 16.0% to $356 thousand, primarily due to an increase in income from returned items, overdraft charges, and analysis fees.

General and administrative expenses were $1.5 million for the three months ended March 31, 2019, and $1.4 million for the same period last year.  The largest component of general and administrative expenses was salary and benefits expense of $1.0 million for the first quarter of 2019, as compared to $869 thousand for the same quarter last year. Occupancy and equipment expenses increased by $38 thousand or 33.6% to $153 thousand in the first quarter of 2019 from $115 thousand for the same period last year.  The increase in occupancy and equipment is mostly attributed to opening the Upland branch in the fourth quarter of 2018.

Income tax expense was $251 thousand which represents an increase of $48.6 thousand or 24.03% for the three months ended March 31, 2019 as compared to $202.5 thousand for the three months ended March 31, 2018. The effective income tax rate for the first quarters of 2019 and 2018 is approximately 28.7% and 28.5%, 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, customer service expectations, the Company’s ability to successfully deploy new technology and gain efficiencies therefrom, and changes in interest rates, loan portfolio performance, and other factors.

Dann H. Bowman, President and CEO or Melinda M. Milincu, Vice President and CFO, Chino Commercial Bancorp and Chino Commercial Bank, N.A., 14245 Pipeline Avenue, Chino, Ca. 91710, (909) 393-8880.

      
 CHINO COMMERCIAL BANCORP 
 CONSOLIDATED BALANCE SHEET 
 March 31, 2019 and December 31, 2018 
   
  March 31, 2019 December 31, 2018 
  (unaudited) (audited) 
 ASSETS:    
 Cash and due from banks$20,066,672  $  25,451,866  
 Total cash and cash equivalents 20,066,672   25,451,866  
      
 Interest-bearing deposits in other banks 1,988,000     1,988,000  
 Investment securities available for sale 5,644,987   5,914,736  
 Investment securities held to maturity (fair value approximates    
 $36,019,665 at March 31, 2019 and $26,092,226 at December 31, 2018) 36,312,327   26,623,343  
 Total investments 43,945,314   34,526,079  
 Loans    
 Construction   -      -   
 Real estate 112,066,869   107,902,821  
 Commercial 23,365,834   24,029,989  
 Installment 231,892   241,077  
 Gross loans 135,664,595   132,173,887  
 Unearned fees and discounts (316,765)  (345,054) 
 Loans net of unearned fees and discount 135,347,830   131,828,833  
 Allowance for loan losses (2,352,700)  (2,292,478) 
  Net loans 132,995,130   129,536,355  
      
 Fixed assets, net 6,007,030   6,063,350  
 Accrued interest receivable 682,064   585,506  
 Stock investments, restricted, at cost 1,248,400   1,248,400  
 Bank-owned life insurance 3,508,396   3,484,885  
 Other assets 1,077,240   1,091,805  
 Total assets$  209,530,246  $  201,988,246  
      
 LIABILITIES:    
 Deposits    
 Non-interest bearing $  78,750,774  $  83,237,014  
 Interest bearing    
 NOW and money market 73,113,787   66,046,085  
 Savings 9,854,601   9,870,263  
 Time deposits less than $250,000 8,947,155   4,191,717  
 Time deposits of $250,000 or greater 5,140,705   7,674,742  
 Total deposits 175,807,022   171,019,821  
      
 Accrued interest payable 93,838   64,794  
 Borrowings from Federal Home Loan Bank (FHLB)   7,000,000     5,000,000  
 Accrued expenses & other payables 1,186,202   1,101,417  
 Subordinated notes payable to subsidiary trust 3,093,000   3,093,000  
 Total liabilities 187,180,062   180,279,032  
      
 SHAREHOLDERS' EQUITY    
 Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 1,859,132 shares at March 31, 2019 and December 31, 2018, respectively.    
     
  10,502,557   10,502,557  
 Retained earnings 11,876,425   11,251,915  
 Accumulated other comprehensive income/(loss) (28,798)  (45,258) 
 Total shareholders' equity 22,350,184   21,709,214  
 Total liabilities & shareholders' equity$  209,530,246  $  201,988,246  
      
      

 

       
 CHINO COMMERCIAL BANCORP 
 CONSOLIDATED STATEMENTS OF NET INCOME 
   
  For the three months ended  
  March 31  
   2019   2018   
  (unaudited) (unaudited)  
 Interest income     
 Interest and fee income on loans $  1,951,881  $  1,659,877   
 Interest on federal funds sold and FRB deposits   70,411     97,724   
 Interest on time deposits in banks   11,887     3,956   
 Interest on investment securities   266,232     140,573   
 Total interest income 2,300,411   1,902,130   
       
 Interest Expense     
 Interest on deposits 217,017   87,244   
 Other borrowings 49,431   89,636   
 Total interest expense 266,448   176,880   
 Net interest income 2,033,963   1,725,250   
 Provision for loan losses   40,000     50,000   
       
 Net interest income after provision for loan losses 1,993,963   1,675,250   
       
 Non-interest income     
 Service charges on deposit accounts 356,065   307,037   
 Other miscellaneous income 22,975   19,196   
 Dividend income from restricted stock 22,474   35,834   
 Income from bank-owned life insurance 23,512   24,453   
 Total non-interest income 425,026   386,520   
       
 Non-interest expenses     
 Salaries and employee benefits 1,010,328   868,915   
 Occupancy and equipment 153,132   114,656   
 Data and item processing 104,899   91,636   
 Advertising and marketing 6,318   28,586   
 Legal and professional fees 33,418   33,198   
 Regulatory assessments 29,435   33,128   
 Insurance 9,005   8,559   
 Directors' fees and expenses 33,769   30,759   
 Other expenses 162,978   140,986   
 Total non-interest expenses 1,543,282   1,350,423   
 Income before income tax expense 875,707   711,347   
 Income tax expense 251,197   202,534   
 Net income$  624,510  $  508,813   
       
 Basic earnings per share $  0.34  $  0.27   
 Diluted earnings per share $  0.34  $  0.27   
       
 Tax rate 28.7%  28.5%  
       

 

        
 CHINO COMMERCIAL BANCORP 
        
   For the three months ended  
   March 31  
    2019   2018   
 KEY FINANCIAL RATIOS      
 (unaudited)      
 Annualized return on average equity  11.33%  10.27%  
 Annualized return on average assets  1.24%  1.02%  
 Net interest margin  4.40%  4.03%  
 Core efficiency ratio  62.76%  63.95%  
 Net chargeoffs/(recoveries) to average loans  -0.010%  -0.01%  
        
 AVERAGE BALANCES      
 (thousands, unaudited)      
 Average assets $  201,500  $  199,089   
 Average interest-earning assets $  187,315  $  173,525   
 Average gross loans $  136,882  $  122,699   
 Average deposits $  171,868  $  147,053   
 Average equity $  22,051  $  19,822   
        
        
        
 CREDIT QUALITY End of period  
 (unaudited) March 31, 2019 December 31, 2018  
        
 Non-performing loans $  -  $  -   
        
 Non-performing loans to total loans  0.00%  0.00%  
 Non-performing loans to total assets  0.00%  0.00%  
 Allowance for loan losses to total loans  1.73%  1.73%  
 Nonperforming assets as a percentage of total loans and OREO  0.00%  0.00%  
 Allowance for loan losses to non-performing loans  n/a   n/a   
        
 OTHER PERIOD-END STATISTICS      
 (unaudited)      
 Shareholders equity to total assets  10.67%  10.75%  
 Net loans to deposits  75.65%  75.74%  
 Non-interest bearing deposits to total deposits  44.79%  48.67%  
 Total capital to total risk-weighted assets  19.18%  19.19%  
 Tier 1 capital to total risk-weighted assets  21.00%  20.93%  
 Tier 1 leverage ratio  14.80%  14.80%  
 Common equity tier 1  21.00%  20.93%