Chino Commercial Bancorp Reports 23% Increase in Net Earnings

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.

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
	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	%