Chino Commercial Bancorp Reports 22% Increase in First Quarter Earnings
CHINO, Calif., April 22, 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 first quarter ended March 31, 2016 with net earnings of $390,530, or an increase of 22.5%, compared with net income of $318,868 for the same quarter last year. Net income per basic share for the first quarter of 2016 was $0.38 as compared to $0.31 for the same quarter last year.
Dann H. Bowman, President and Chief Executive Officer, stated, “The Company had an excellent first quarter with strong earnings and very good loan performance. The Bank also recently received recognition from the Findley Reports on Financial Institutions by again receiving their highest rating of Super Premier Performing for fiscal year 2015.”
Financial Condition
At March 31, 2016, total assets were $164.4 million, an increase of $3.0 million or 1.9% over $161.4 million at December 31, 2015. Total deposits increased by 2.1% or $2.8 million during the first quarter to $133.1 million, compared to $130.3 million as of December 31, 2015. At March 31, 2016, the Company’s core deposits represent 95.3% of the total deposits.
Gross loans increased by 5.5% or $5.1 million during the first quarter to $98.3 million as compared with $93.2 million as of December 31, 2015. The Bank’s loan quality remained consistent during the first quarter as nonperforming assets and OREO were both at zero at March 31, 2016, and December 31, 2015.
Earnings
The Company posted net interest income of $1,400,128 and $1,225,212 for the three months ended March 31, 2016 and 2015, respectively, or an increase of $174,916 or 14.3%. Average interest-earning assets were $147.7 million with average interest-bearing liabilities of $76.0 million, yielding a net interest margin of 3.81% for the first quarter of 2016; as compared to the average interest-earning assets of $119.5 million with average interest-bearing liabilities of $60.9 million, yielding a net interest margin of 4.16% for the first quarter of 2015.
Non-interest income totaled $360,959 for the first quarter of 2016, or a decrease of 2.1% as compared with $368,668 earned during the first quarter last year. Service charges on deposit accounts decreased 9.2% to $277,873 due to a decrease in income from returned items and overdraft charges. Dividend income from restricted stock increased to $34,881 for the first quarter of 2016, compared to $18,374 for the same quarter in 2015, due to additional purchases of restricted stock. Income from bank-owned life insurance remained consistent at $25,572 in the first quarter of 2016 and $25,418 in the first quarter of 2015.
General and administrative expenses were $1,118,217 for the three months ended March 31, 2016, as compared to $1,075,780 for the first quarter of 2015. The largest component of general and administrative expenses was salary and benefits expense of $680,889 for the first quarter of 2016, as compared to $663,539 for the same quarter last year. Regulatory assessments remained consistent at $30,311 in the first quarter of 2016 and $30,519 in the first quarter of 2015. Advertising and marketing expenses increased 48.5% to $17,116 in the first quarter of 2016 from $11,528 for the same period last year.
Income tax expense was $251,294 for the three months ended March 31, 2016 as compared to $197,774 for the three months ended March 31, 2015. The effective income tax rate for the first quarter of 2016 and 2015 is approximately 39.2% 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 detailed in the Company’s SEC filings.
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, 2016 and December 31, 2015 | ||||||||
| March 31, 2016 | December 31, 2015 | |||||||
| (unaudited) | (audited) | |||||||
| ASSETS: | ||||||||
| Cash and due from banks | $ | 26,034,207 | $ | 24,898,140 | ||||
| Total cash and cash equivalents | 26,034,207 | 24,898,140 | ||||||
| Interest-bearing deposits in other banks | 4,712,000 | $ | 4,960,000 | |||||
| Investment securities available for sale | 4,856,359 | 4,931,068 | ||||||
| Investment securities held to maturity (fair value approximates | ||||||||
| $25,461,000 at March 31, 2016 and $23,115,000 at December 31, 2015) | 20,479,134 | 23,100,106 | ||||||
| Total investments | 30,047,493 | 32,991,174 | ||||||
| Loans | ||||||||
| Real estate | 79,191,724 | 72,756,410 | ||||||
| Commercial | 18,655,323 | 20,053,905 | ||||||
| Installment | 492,884 | 433,764 | ||||||
| Gross loans | 98,339,931 | 93,244,079 | ||||||
| Unearned fees and discounts | (289,944 | ) | (251,911 | ) | ||||
| Loans net of unearned fees and discount | 98,049,987 | 92,992,168 | ||||||
| Allowance for loan losses | (1,677,711 | ) | (1,667,204 | ) | ||||
| Net loans | 96,372,276 | 91,324,964 | ||||||
| Fixed assets, net | 5,949,709 | 6,021,446 | ||||||
| Accrued interest receivable | 377,195 | 395,685 | ||||||
| Stock investments, restricted, at cost | 1,766,500 | 1,766,500 | ||||||
| Bank-owned life insurance | 3,208,819 | 3,183,247 | ||||||
| Other assets | 684,373 | 803,048 | ||||||
| Total assets | $ | 164,440,572 | $ | 161,384,204 | ||||
| LIABILITIES: | ||||||||
| Deposits | ||||||||
| Non-interest bearing | $ | 76,067,362 | $ | 74,431,378 | ||||
| Interest bearing | ||||||||
| NOW and money market | 42,524,879 | 40,980,418 | ||||||
| Savings | 4,700,755 | 4,815,198 | ||||||
| Time deposits less than $250,000 | 3,591,534 | 3,913,644 | ||||||
| Time deposits of $250,000 or greater | 6,243,050 | 6,208,083 | ||||||
| Total deposits | 133,127,580 | 130,348,721 | ||||||
| Accrued interest payable | 25,414 | 25,229 | ||||||
| Borrowings from Federal Home Loan Bank (FHLB) | 15,000,000 | 15,000,000 | ||||||
| Accrued expenses & other payables | 704,069 | 843,691 | ||||||
| Subordinated notes payable to subsidiary trust | 3,093,000 | 3,093,000 | ||||||
| Total liabilities | 151,950,063 | 149,310,641 | ||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 1,026,349 shares at March 31, 2016 and December 31, 2015, respectively. | 6,089,466 | 6,089,466 | ||||||
| Retained earnings | 6,391,106 | 6,000,577 | ||||||
| Accumulated other comprehensive income | 9,937 | (16,480 | ) | |||||
| Total shareholders' equity | 12,490,509 | 12,073,563 | ||||||
| Total liabilities & shareholders' equity | $ | 164,440,572 | $ | 161,384,204 | ||||
| CHINO COMMERCIAL BANCORP | |||||||
| CONSOLIDATED STATEMENTS OF NET INCOME | |||||||
| (unaudited) | |||||||
| For the three months ended | |||||||
| March 31 | |||||||
| 2016 | 2015 | ||||||
| Interest income | |||||||
| Interest and fee income on loans | $ | 1,310,104 | $ | 1,185,445 | |||
| Interest on federal funds sold and FRB deposits | 26,333 | 1,112 | |||||
| Interest on time deposits in banks | 10,450 | 30,195 | |||||
| Interest on investment securities | 147,839 | 80,646 | |||||
| Total interest income | 1,494,726 | 1,297,398 | |||||
| Interest Expense | |||||||
| Interest on deposits | 60,347 | 55,818 | |||||
| Other borrowings | 34,251 | 16,368 | |||||
| Total interest expense | 94,598 | 72,186 | |||||
| Net interest income | 1,400,128 | 1,225,212 | |||||
| Provision for loan losses | 1,046 | 1,458 | |||||
| Net interest income after provision for loan losses | 1,399,082 | 1,223,754 | |||||
| Non-interest income | |||||||
| Service charges on deposit accounts | 277,873 | 306,002 | |||||
| Other miscellaneous income | 22,633 | 18,874 | |||||
| Dividend income from restricted stock | 34,881 | 18,374 | |||||
| Income from bank-owned life insurance | 25,572 | 25,418 | |||||
| Total non-interest income | 360,959 | 368,668 | |||||
| Non-interest expenses | |||||||
| Salaries and employee benefits | 680,889 | 663,539 | |||||
| Occupancy and equipment | 103,828 | 103,001 | |||||
| Data and item processing | 94,440 | 93,338 | |||||
| Advertising and marketing | 17,116 | 11,528 | |||||
| Legal and professional fees | 47,430 | 45,236 | |||||
| Regulatory assessments | 30,311 | 30,519 | |||||
| Insurance | 8,471 | 7,865 | |||||
| Directors' fees and expenses | 26,709 | 26,417 | |||||
| Other expenses | 109,023 | 94,337 | |||||
| Total non-interest expenses | 1,118,217 | 1,075,780 | |||||
| Income before income tax expense | 641,824 | 516,642 | |||||
| Income tax expense | 251,294 | 197,774 | |||||
| Net income | $ | 390,530 | $ | 318,868 | |||
| Basic earnings per share | $ | 0.38 | $ | 0.31 | |||
| Diluted earnings per share | $ | 0.38 | $ | 0.31 | |||
| For the three months ended | |||||||||
| March 31 | |||||||||
| 2016 | 2015 | ||||||||
| KEY FINANCIAL RATIOS | |||||||||
| (unaudited) | |||||||||
| Annualized return on average equity | 12.68 | % | 11.54 | % | |||||
| Annualized return on average assets | 0.96 | % | 0.96 | % | |||||
| Net interest margin | 3.81 | % | 4.16 | % | |||||
| Core efficiency ratio | 63.50 | % | 67.49 | % | |||||
| Net chargeoffs to average loans | -0.01 | % | -0.01 | % | |||||
| AVERAGE BALANCES | |||||||||
| (thousands, unaudited) | |||||||||
| Average assets | $ | 162,308 | $ | 132,848 | |||||
| Average interest-earning assets | $ | 147,667 | $ | 119,493 | |||||
| Average gross loans | $ | 95,183 | $ | 86,538 | |||||
| Average deposits | $ | 129,679 | $ | 112,995 | |||||
| Average equity | $ | 12,316 | $ | 11,057 | |||||
| CREDIT QUALITY | End of period | ||||||||
| (unaudited) | March 31, 2016 | December 31,2015 | |||||||
| 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 | 1.71 | % | 1.79 | % | |||||
| 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 | 7.60 | % | 7.48 | % | |||||
| Net Loans to deposits | 72.39 | % | 70.06 | % | |||||
| Non-interest bearing deposits to total deposits | 57.14 | % | 57.10 | % | |||||
| Total capital to total risk-weighted assets | 15.97 | % | 16.15 | % | |||||
| Tier 1 capital to total risk-weighted assets | 15.72 | % | 15.82 | % | |||||
| Tier 1 leverage ratio | 10.25 | % | 9.79 | % | |||||
| Common equity tier 1 | 15.72 | % | 15.82 | % | |||||
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