Chino Commercial Bancorp Reports 22% Increase in Fourth Quarter Earnings
CHINO, Calif., Jan. 27, 2016 (GLOBE NEWSWIRE) -- The Board of Directors of Chino Commercial Bancorp (OTC:CCBC), the parent company of Chino Commercial Bank, N.A., announced net earnings for the Company and the consolidated Bank for the fourth quarter ended December 31, 2015 of $318,620 or an increase of 21.7%, as compared with net income of $261,886 for the same quarter last year. Net income per basic and diluted share for the fourth quarter 2015 was $0.31, as compared to $0.26 for the same quarter last year. The Company’s income for the year ended December 31, 2015 increased 16.5% to $1,327,370 or $1.29 per basic and diluted share, as compared with net earnings of $1,139,773 or $1.11 per basic and diluted share for the same period in 2014.
Dann H. Bowman, President and Chief Executive Officer stated, “The Bank had a very good year, with net earnings increasing 16% over last year. Credit quality remains solid with the Bank having no credit losses during the year, no Non-performing assets at year-end, and no foreclosed properties. Economic conditions in the Inland Empire continue to improve and the business climate is very good. With the Bank’s strong balance sheet, we have the capacity to expand our lending within the community and continue to grow the Bank.”
Financial Condition
At December 31, 2015, total assets were $161.4 million, which was an increase of $31.3 million or 24.0% over $130.1 million at December 31, 2014. Deposits increased by $14.9 million or 12.9% to $130.3 million at December 31, 2015, from $115.4 million at December 31, 2014.
Loans net of unearned fees increased 11.7% in the year ended December 31, 2015 to $93.0 million from $83.2 million at December 31, 2014. The Bank’s loan quality remained consistent, as nonperforming assets and OREO remained at zero as of December 31, 2015 and December 31, 2014, respectively.
Earnings
The Company posted net interest income of $1,355,351 and $1,170,793 for the three months ended December 31, 2015 and 2014, respectively, or an increase of $184,558 or 15.8%. For the year ended December 31, 2015 the Company posted net interest income of $5,138,809, compared to $4,258,258 for the same period in 2014, or an increase of $880,551 or 20.7%.
Average interest-earning assets were $150.7 million with average interest-bearing liabilities of $71.5 million, yielding a net interest margin of 3.57% for the fourth quarter of 2015; as compared to the average interest-earning assets of $115.1 million with average interest-bearing liabilities of $56.0 million, yielding a net interest margin of 4.03% for the fourth quarter of 2014.
Non-interest income totaled $375,022 for the fourth quarter of 2015, or an increase of 1.9% from $367,964 earned during the fourth quarter of 2014. For the year ended December 31, 2015, non-interest income totaled $1,483,998 or a 7.5% decrease from $1,605,098 earned during the same period in 2014.
General and administrative expenses were $1,176,051 for the three months ended December 31, 2015, as compared to $1,114,531 for the fourth quarter of 2014. The largest component of general and administrative expenses was salary and benefits expense of $690,496 for the fourth quarter of 2015, as compared to $665,516 for the three months ended December 31, 2014. Regulatory assessments increased to $33,767 or 65.2% in the fourth quarter of 2015, compared to $20,446 in the fourth quarter of 2014. Legal, Audit, and Other Professional fees decreased by 18.1% to $42,934 in the fourth quarter of 2015, from $52,425 in the quarter ended December 31, 2014, due to an overall decrease in audit fees.
Income tax expense was $197,455 for the three months ended December 31, 2015, as compared to $157,743 for the three months ended December 31, 2014. The effective income tax rate for the fourth quarter of 2015 and 2014 is approximately 38.3% and 37.6%, 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 | ||||||||
| December 31, 2015 and 2014 | ||||||||
| December 31, 2015 | December 31, 2014 | |||||||
| (unaudited) | (audited) | |||||||
| ASSETS: | ||||||||
| Cash and due from banks | $ | 24,898,140 | $ | 5,529,963 | ||||
| Total cash and cash equivalents | 24,898,140 | 5,529,963 | ||||||
| Interest-bearing deposits in other banks | 4,960,000 | 19,048,000 | ||||||
| Investment securities available for sale | 4,931,068 | 1,637,579 | ||||||
| Investment securities held to maturity (fair value approximates $23,115,000 at December 31, 2015 and $11,493,000 at December 31, 2014) | 23,100,106 | 11,370,815 | ||||||
| Total investments | 32,991,174 | 32,056,394 | ||||||
| Loans | ||||||||
| Construction | - | 613,802 | ||||||
| Real estate | 72,756,410 | 65,070,148 | ||||||
| Commercial | 20,053,905 | 17,437,492 | ||||||
| Installment | 433,764 | 339,519 | ||||||
| Gross loans | 93,244,079 | 83,460,961 | ||||||
| Unearned fees and discounts | (251,911 | ) | (211,142 | ) | ||||
| Loans net of unearned fees and discount | 92,992,168 | 83,249,819 | ||||||
| Allowance for loan losses | (1,667,204 | ) | (1,536,241 | ) | ||||
| Net loans | 91,324,964 | 81,713,578 | ||||||
| Fixed assets, net | 6,021,446 | 5,971,324 | ||||||
| Accrued interest receivable | 395,685 | 312,508 | ||||||
| Stock investments, restricted, at cost | 1,766,500 | 716,700 | ||||||
| Bank-owned life insurance | 3,183,247 | 3,080,794 | ||||||
| Other assets | 803,048 | 751,466 | ||||||
| Total assets | $ | 161,384,204 | $ | 130,132,727 | ||||
| LIABILITIES: | ||||||||
| Deposits | ||||||||
| Non-interest bearing | $ | 74,431,378 | $ | 64,657,125 | ||||
| Interest bearing | ||||||||
| NOW and money market | 40,980,418 | 35,665,321 | ||||||
| Savings | 4,815,198 | 4,119,507 | ||||||
| Time deposits less than $100,000 | 3,527,293 | 4,367,455 | ||||||
| Time deposits of $100,000 or greater | 6,594,434 | 6,631,526 | ||||||
| Total deposits | 130,348,721 | 115,440,934 | ||||||
| Accrued interest payable | 25,229 | 26,066 | ||||||
| Borrowings from Federal Home Loan Bank (FHLB) | 15,000,000 | - | ||||||
| Accrued expenses & other payables | 843,691 | 772,134 | ||||||
| Subordinated notes payable to subsidiary trust | 3,093,000 | 3,093,000 | ||||||
| Total liabilities | 149,310,641 | 119,332,134 | ||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 1,026,349 shares at December 31, 2015 and 916,550 December 31, 2014, respectively. | 6,089,466 | 4,579,730 | ||||||
| Retained earnings | 6,000,577 | 6,185,281 | ||||||
| Accumulated other comprehensive income | (16,480 | ) | 35,582 | |||||
| Total shareholders' equity | 12,073,563 | 10,800,593 | ||||||
| Total liabilities & shareholders' equity | $ | 161,384,204 | $ | 130,132,727 | ||||
| CHINO COMMERCIAL BANCORP | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF NET INCOME | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| For the three months ended | For the year ended | |||||||||||||||
| December 31 | December 31 | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Interest income | ||||||||||||||||
| Interest and fee income on loans | $ | 1,262,845 | $ | 1,119,762 | $ | 4,879,254 | $ | 4,084,998 | ||||||||
| Interest on federal funds sold and FRB deposits | 20,931 | 468 | 48,306 | 27,829 | ||||||||||||
| Interest on time deposits in banks | 13,056 | 36,931 | 81,249 | 138,255 | ||||||||||||
| Interest on investment securities | 142,525 | 84,198 | 445,896 | 287,524 | ||||||||||||
| Total interest income | 1,439,357 | 1,241,359 | 5,454,705 | 4,538,606 | ||||||||||||
| Interest Expense | ||||||||||||||||
| Interest on deposits | 59,969 | 55,204 | 232,831 | 221,418 | ||||||||||||
| Other borrowings | 24,037 | 15,362 | 83,065 | 58,930 | ||||||||||||
| Total interest expense | 84,006 | 70,566 | 315,896 | 280,348 | ||||||||||||
| Net interest income | 1,355,351 | 1,170,793 | 5,138,809 | 4,258,258 | ||||||||||||
| Provision for loan losses | 38,247 | 4,597 | 42,288 | (124,492 | ) | |||||||||||
| Net interest income after provision for loan losses | 1,317,104 | 1,166,196 | 5,096,521 | 4,382,750 | ||||||||||||
| Non-interest income | ||||||||||||||||
| Service charges on deposit accounts | 275,640 | 312,524 | 1,148,730 | 1,344,099 | ||||||||||||
| Other miscellaneous income | 21,556 | 19,171 | 81,434 | 108,343 | ||||||||||||
| Dividend income from restricted stock | 51,951 | 9,882 | 151,381 | 48,339 | ||||||||||||
| Income from bank-owned life insurance | 25,875 | 26,387 | 102,453 | 104,317 | ||||||||||||
| Total non-interest income | 375,022 | 367,964 | 1,483,998 | 1,605,098 | ||||||||||||
| Non-interest expenses | ||||||||||||||||
| Salaries and employee benefits | 690,496 | 665,516 | 2,655,057 | 2,398,764 | ||||||||||||
| Occupancy and equipment | 114,130 | 123,112 | 424,715 | 438,251 | ||||||||||||
| Data and item processing | 99,441 | 94,191 | 386,793 | 382,762 | ||||||||||||
| Advertising and marketing | 16,438 | 30,129 | 56,437 | 100,168 | ||||||||||||
| Legal and professional fees | 42,934 | 52,425 | 158,540 | 216,542 | ||||||||||||
| Regulatory assessments | 33,767 | 20,446 | 126,580 | 108,325 | ||||||||||||
| Insurance | 8,471 | 8,431 | 33,278 | 33,705 | ||||||||||||
| Directors' fees and expenses | 26,460 | 27,456 | 107,310 | 109,925 | ||||||||||||
| Other expenses | 143,914 | 92,825 | 479,978 | 364,874 | ||||||||||||
| Total non-interest expenses | 1,176,051 | 1,114,531 | 4,428,688 | 4,153,316 | ||||||||||||
| Income before income tax expense | 516,075 | 419,629 | 2,151,831 | 1,834,532 | ||||||||||||
| Income tax expense | 197,455 | 157,743 | 824,461 | 694,759 | ||||||||||||
| Net income | $ | 318,620 | $ | 261,886 | $ | 1,327,370 | $ | 1,139,773 | ||||||||
| Basic earnings per share | $ | 0.31 | $ | 0.26 | $ | 1.29 | $ | 1.11 | ||||||||
| Diluted earnings per share | $ | 0.31 | $ | 0.26 | $ | 1.29 | $ | 1.11 | ||||||||
| Tax rate | 38.3 | % | 37.6 | % | 38.3 | % | 37.9 | % | ||||||||
| For the three months ended | For the year ended | |||||||||||||||
| December 31 | December 31 | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| KEY FINANCIAL RATIOS | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Annualized return on average equity | 10.63 | % | 9.80 | % | 11.54 | % | 11.14 | % | ||||||||
| Annualized return on average assets | 0.77 | % | 0.82 | % | 0.88 | % | 0.91 | % | ||||||||
| Net interest margin | 3.57 | % | 4.03 | % | 3.77 | % | 3.79 | % | ||||||||
| Core efficiency ratio | 67.97 | % | 72.43 | % | 66.87 | % | 70.84 | % | ||||||||
| Net chargeoffs/(recoveries) to average loans | -0.01 | % | -0.01 | % | -0.10 | % | -0.24 | % | ||||||||
| AVERAGE BALANCES | ||||||||||||||||
| (thousands, unaudited) | ||||||||||||||||
| Average assets | $ | 164,614 | $ | 128,349 | $ | 150,004 | $ | 125,437 | ||||||||
| Average interest-earning assets | $ | 150,657 | $ | 115,133 | $ | 136,231 | $ | 112,387 | ||||||||
| Average gross loans | $ | 88,730 | $ | 79,834 | $ | 87,066 | $ | 69,360 | ||||||||
| Average deposits | $ | 128,323 | $ | 112,169 | $ | 118,902 | $ | 110,896 | ||||||||
| Average equity | $ | 11,988 | $ | 10,689 | $ | 11,504 | $ | 10,232 | ||||||||
| CREDIT QUALITY | End of period | |||||||
| (unaudited) | December 31, 2015 | December 31, 2014 | ||||||
| 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 | 1.79 | % | 1.84 | % | ||||
| 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) | December 31, 2015 | December 31, 2014 | ||||||
| Shareholders equity to total assets | 7.48 | % | 8.30 | % | ||||
| Net Loans to deposits | 70.06 | % | 70.78 | % | ||||
| Non-interest bearing deposits to total deposits | 57.10 | % | 56.01 | % | ||||
| Total capital to total risk-weighted assets | 17.28 | % | 16.72 | % | ||||
| Tier 1 capital to total risk-weighted assets | 17.01 | % | 16.01 | % | ||||
| Tier 1 leverage ratio | 9.79 | % | 11.18 | % | ||||
| Common equity tier 1 | 17.01 | % | n/a | |||||
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