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Chino Commercial Bancorp Reports 7% Increase In Third Quarter Earnings

CHINO, Calif., Oct. 21, 2016 (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 third quarter ended September 30, 2016 with net earnings of $361,258, or an increase of 7.4%, compared with net income of $336,328 for the same quarter last year. Net income per basic share for the third quarter of 2016 was $0.29 as compared to $0.27 for the same quarter last year.

Financial Condition

At September 30, 2016, total assets were $182.3 million, an increase of $20.9 million or 13.0% over $161.4 million at December 31, 2015.  Total deposits increased by 15.1% or $19.7 million during the year to $150.1 million, compared to $130.3 million as of December 31, 2015. At September 30, 2016, the Company’s core deposits represent 95.0% of the total deposits.

Gross loans increased by 15.1% or $14.1 million as of September 30, 2016 to $107.4 million as compared with $93.2 million as of December 31, 2015.  The Bank had one nonperforming loan at the end of the third qurter and no nonperforming loans as of December 31, 2015.  OREO properties remained at zero as of September 30, 2016, and December 31, 2015, respectively.

Earnings

The Company posted net interest income of $1,428,501 and $1,310,757 for the three months ended September 30, 2016 and 2015, respectively, or an increase of $117,744 or 9.0%.  Average interest-earning assets were $161.8 million with average interest-bearing liabilities of $81.3 million, yielding a net interest margin of 3.51% for the third quarter of 2016, as compared to the average interest-earning assets of $142.9 million with average interest-bearing liabilities of $73.7 million, yielding a net interest margin of 3.64% for the third quarter of 2015.

Non-interest income totaled $395,255 for the third quarter of 2016, or an increase of 12.7% as compared with $350,622 earned during the same quarter last year. Service charges on deposit accounts increased 13.3% to $300,936 primarily due to an increase in income from returned items and overdraft charges. Dividend income from restricted stock increased to $48,962 for the third quarter of 2016, compared to $37,951 for the same quarter in 2015.  Income from bank-owned life insurance remained consistent at $25,657 in the third quarter of 2016 and $25,635 in the third quarter of 2015.

General and administrative expenses were $1,202,581 for the three months ended September 30, 2016, as compared to $1,115,633 for the third quarter of 2015. The largest component of general and administrative expenses was salary and benefits expense of $704,158 for the third quarter of 2016, as compared to $650,333 for the same quarter last year.  Regulatory assessments increased to $36,539 in the third quarter of 2016 in comparison with $31,611 in the third quarter of 2015.  Advertising and marketing expenses increased 38.1% to $18,935 in the third quarter of 2016 from $13,714 for the same period last year.

Income tax expense was $229,917 for the three months ended September 30, 2016 as compared to $209,175 for the three months ended September 30, 2015. The effective income tax rate for the third quarter of 2016 and 2015 is approximately 38.9% and 38.3%, 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.

Contact: 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  
September 30, 2016 and December 31, 2015  
   
  September 30, 2016   December 31, 2015  
  (unaudited)   (audited)  
ASSETS:        
Cash and due from banks $   39,234,964     $   24,898,140    
Total cash and cash equivalents   39,234,964       24,898,140    
         
Interest-bearing deposits in other banks   3,472,000         4,960,000    
Investment securities available for sale   4,517,291       4,931,068    
Investment securities held to maturity (fair value approximates        
$17,620,000 at September 30, 2016 and $23,115,000 at December 31, 2015)   17,298,944       23,100,106    
Total investments   25,288,235       32,991,174    
Loans        
Real estate   87,494,419       72,756,410    
Commercial   19,403,009       20,053,905    
Installment   460,024       433,764    
Gross loans   107,357,452       93,244,079    
Unearned fees and discounts   (331,594 )     (251,911 )  
Loans net of unearned fees and discount   107,025,858       92,992,168    
Allowance for loan losses   (1,800,941 )     (1,667,204 )  
 Net loans   105,224,917       91,324,964    
         
Fixed assets, net   5,992,816       6,021,446    
Accrued interest receivable   269,245       395,685    
Stock investments, restricted, at cost   1,901,600       1,766,500    
Bank-owned life insurance   3,260,072       3,183,247    
Other assets   1,154,550       803,048    
Total assets $   182,326,399     $   161,384,204    
         
LIABILITIES:        
Deposits        
Non-interest bearing  $   82,932,780     $   74,431,378    
Interest bearing        
NOW and money market   51,693,004       40,980,418    
Savings   4,636,936       4,815,198    
Time deposits less than $250,000   3,350,545       3,913,644    
Time deposits of $250,000 or greater   7,481,098       6,208,083    
Total deposits   150,094,363       130,348,721    
         
Accrued interest payable   23,208       25,229    
Borrowings from Federal Home Loan Bank (FHLB)     15,000,000         15,000,000    
Accrued expenses & other payables   892,197       843,691    
Subordinated notes payable to subsidiary trust   3,093,000       3,093,000    
Total liabilities   169,102,768       149,310,641    
         
SHAREHOLDERS' EQUITY        
Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 1,231,332 shares at September 30, 2016 and December 31, 2015, respectively.   6,089,466       6,089,466    
Retained earnings   7,120,131       6,000,577    
Accumulated other comprehensive income/(loss)   14,034       (16,480 )  
Total shareholders' equity   13,223,631       12,073,563    
Total liabilities & shareholders' equity $   182,326,399     $   161,384,204    
         

/EIN News/ --  

CHINO COMMERCIAL BANCORP  
CONSOLIDATED STATEMENTS OF NET INCOME  
(unaudited)  
   
  For the three months ended   For the year ended  
  September 30   September 30  
    2016       2015       2016       2015    
Interest income                
Interest and fee income on loans  $   1,354,618     $   1,228,781     $   4,047,265     $   3,616,409    
Interest on federal funds sold and FRB deposits     36,165         16,161         89,201         27,375    
Interest on time deposits in banks     10,272         15,004         30,651         68,193    
Interest on investment securities     134,864         132,792         423,522         303,371    
Total interest income   1,535,919       1,392,738       4,590,639       4,015,348    
                 
Interest Expense                
Interest on deposits   69,390       59,424       194,820       172,863    
Other borrowings   38,028       22,557       106,459       59,028    
Total interest expense   107,418       81,981       301,279       231,891    
Net interest income   1,428,501       1,310,757       4,289,360       3,783,457    
Provision for loan losses   30,000       243       162,410       4,041    
                 
Net interest income after provision for loan losses   1,398,501       1,310,514       4,126,950       3,779,416    
                 
Non-interest income                
Service charges on deposit accounts   300,936       265,693       847,737       873,089    
Other miscellaneous income   19,700       21,343       137,646       59,878    
Dividend income from restricted stock   48,962       37,951       121,805       99,430    
Income from bank-owned life insurance   25,657       25,635       76,825       76,578    
Total non-interest income   395,255       350,622       1,184,013       1,108,975    
                 
Non-interest expenses                
Salaries and employee benefits   704,158       650,333       2,091,401       1,964,562    
Occupancy and equipment   111,480       108,305       314,434       310,585    
Data and item processing   95,639       97,934       285,305       287,353    
Advertising and marketing   18,935       13,714       53,477       39,998    
Legal and professional fees   51,143       32,980       138,674       115,606    
Regulatory assessments   36,539       31,611       103,389       92,813    
Insurance   8,562       8,471       25,572       24,807    
Directors' fees and expenses   27,192       26,771       81,030       80,850    
Other expenses   148,933       145,514       375,146       336,063    
Total non-interest expenses   1,202,581       1,115,633       3,468,428       3,252,637    
Income before income tax expense   591,175       545,503       1,842,535       1,635,754    
Income tax expense   229,917       209,175       718,908       627,006    
Net income $   361,258     $   336,328     $   1,123,627     $   1,008,748    
                 
Basic earnings per share  $   0.29     $   0.27     $   0.91     $   0.82    
Diluted earnings per share  $   0.29     $   0.27     $   0.91     $   0.82    
                 

 

    For the three months ended   For the year ended  
    September 30   September 30  
      2016       2015       2016       2015    
KEY FINANCIAL RATIOS                  
(unaudited)                  
Annualized return on average equity     11.05 %     11.55 %     11.79 %     11.86 %  
Annualized return on average assets     0.82 %     0.86 %     0.89 %     0.93 %  
Net interest margin     3.51 %     3.64 %     3.73 %     3.85 %  
Core efficiency ratio     65.94 %     67.15 %     63.37 %     66.48 %  
Net chargeoffs/(recoveries) to average loans     -0.01 %     -0.07 %     0.03 %     -0.09 %  
                                   
AVERAGE BALANCES                                  
(thousands, unaudited)                                  
Average assets   $   176,473     $   156,751     $   168,130     $   145,101    
Average interest-earning assets   $   161,774     $   142,958     $   153,680     $   131,394    
Average gross loans   $   104,499     $   85,866     $   100,087     $   86,529    
Average deposits   $   140,514     $   125,884     $   134,204     $   119,468    
Average equity   $   13,076     $   11,651     $   12,704     $   11,345    
                   
                   
                   
                   
CREDIT QUALITY   End of period          
(unaudited)   September 30, 2016   December 31, 2015          
                   
Non-performing loans   $   536,696     $   -            
                   
Non-performing loans to total loans     0.50 %     0.00 %          
Non-performing loans to total assets     0.29 %     0.00 %          
Allowance for loan losses to total loans     1.68 %     1.79 %          
Nonperforming assets as a percentage of total loans and OREO     0.50 %     0.00 %          
Allowance for loan losses to non-performing loans     335.56 %     n/a            
                   
OTHER PERIOD-END STATISTICS                  
(unaudited)                  
Shareholders equity to total assets     7.25 %     7.48 %          
Net Loans to deposits     70.11 %     70.06 %          
Non-interest bearing deposits to total deposits     55.25 %     57.10 %          
Total capital to total risk-weighted assets     15.50 %     16.15 %          
Tier 1 capital to total risk-weighted assets     15.39 %     15.82 %          
Tier 1 leverage ratio     9.98 %     9.79 %          
Common equity tier 1     15.39 %     15.82 %          
                   

 

 

 

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