CHINO, Calif., April 20, 2018 (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, 2018, with net earnings of $509 thousand, or an increase of 23.5%, compared with net income of $412 thousand for the same quarter last year. Net income per basic and diluted share was $0.33 for both the first quarter of 2018 and 2017, respectively.    

Dann H. Bowman, President and Chief Executive Officer, stated, “In addition to the excellent first quarter earnings results, the Bank was recently recognized by the Findley Reports on Financial Institutions by receiving their highest rating of 'Super Premier Performing.' We are also very pleased that the Bank was included in the American Banker’s Association list of the 'Top 200 Community Banks in America' ranking number 65 on the list.

"The Bank recently received approval from the Office of the Comptroller of the Currency to establish a fourth branch office in Upland. We are excited about expanding into this community, which we believe will significantly contribute to the Company’s growth and profitability.”

Financial Condition
At March 31, 2018, total assets were $198.1 million, an increase of $5.3 million or 2.8% over $192.8 million at December 31, 2017. Total deposits increased by 6.6% or $9.8 million during the first quarter to $158.9 million, compared to $149.1 million as of December 31, 2017. At March 31, 2018, the Company’s core deposits represent 92.4% of the total deposits.

Gross loans increased by 3.4% or $4.2 million as of March 31, 2018 to $126.8 million, as compared with $122.6 million as of December 31, 2017. The Bank did not have any nonperforming loans for the quarter ended March 31, 2017, and as of December 31, 2017, respectively. OREO properties remained at zero as of March 31, 2018 and December 31, 2017, respectively.

Earnings
The Company posted net interest income of $1.7 million and $1.5 million for the three months ended March 31, 2018 and 2017, respectively, or an increase of $198 thousand or 12.9%. Average interest-earning assets were $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, as compared to the average interest-earning assets of $164.8 million with average interest-bearing liabilities of $97.1 million, yielding a net interest margin of 3.76% for the first quarter of 2017.

Non-interest income totaled $387 thousand for the first quarter of 2018, or a increase of 1.8% as compared with $380 thousand earned during the same quarter last year. Service charges on deposit accounts increased by $15.3 thousand or 5.3% to $307 thousand, primarily due to an increase in income from returned items, overdraft charges, and analysis fees. Dividend income from restricted stock decreased to $35.8 thousand for the first quarter of 2018, compared to $45 thousand for the same quarter in 2017, due to the Federal Home Loan Bank change in dividend payout percentage policy. Income from Bank-owned life insurance remained consistent at about $25 thousand in the first quarter of 2018 and 2017, respectively.

General and administrative expenses were $1.4 million for the three months ended March 31, 2017, and 1.2 million for the same period last year. The largest component of general and administrative expenses was salary and benefits expense of $869 thousand for the first quarter of 2018, as compared to $745 thousand for the same quarter last year. Advertising and marketing expenses increased by $7 thousand or 30.9% to $29 thousand in the first quarter of 2018 from $22 thousand for the same period last year. 

Income tax expense was $203 thousand which represents a decrease of $65 thousand or 24% for the three months ended March 31, 2018 as compared to $267 thousand for the three months ended March 31, 2017. The effective income tax rate for the first quarter of 2017 and 2016 is approximately 28.5% and 39.3%, respectively. The decrease in the income tax expense as well as the effective tax rate is entirely attributed to the new Tax Reform Act signed into law in December 2017.

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 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, 2018 and December 31, 2017
	March 31, 2018				December 31, 2017
	(unaudited)				(audited)
ASSETS:
Cash and due from banks		37,488,043			$	34,157,668
Total cash and cash equivalents		37,488,043				34,157,668
Interest-bearing deposits in other banks		744,000				1,240,000
Investment securities available for sale		2,929,904				3,131,027
Investment securities held to maturity (fair value approximates
$20,068,000 at March 31, 2018 and $21,104,000 at December 31, 2017)		20,726,857				21,389,552
Total investments		24,400,761				25,760,579
Loans
Real estate		104,724,567				99,585,847
Commercial		21,756,742				22,679,268
Installment		308,481				337,455
Gross loans		126,789,790				122,602,570
Unearned fees and discounts		(384,347	)			(365,091	)
Loans net of unearned fees and discount		126,405,443				122,237,479
Allowance for loan losses		(2,145,396	)			(2,094,723	)
Net loans		124,260,047				120,142,756
Fixed assets, net		5,829,474				5,875,381
Accrued interest receivable		511,297				531,771
Stock investments, restricted, at cost		1,239,868				2,084,129
Bank-owned life insurance		3,411,207				3,386,754
Other assets		967,735				861,969
Total assets	$	198,108,432			$	192,801,007
LIABILITIES:
Deposits
Non-interest bearing	$	84,354,239			$	74,766,694
Interest bearing
NOW and money market		52,263,317				47,030,167
Savings		8,510,025				7,897,948
Time deposits less than $250,000		6,682,182				5,727,789
Time deposits of $250,000 or greater		7,119,399				13,703,790
Total deposits		158,929,162				149,126,388
Accrued interest payable		40,532				65,160
Borrowings from Federal Home Loan Bank (FHLB)		15,000,000				20,000,000
Accrued expenses & other payables		1,054,844				1,012,535
Subordinated notes payable to subsidiary trust		3,093,000				3,093,000
Total liabilities		178,117,538				173,297,083
SHAREHOLDERS' EQUITY
Common stock, authorized 10,000,000 shares with no par value, issued and  outstanding 1,549,420 shares at March 31, 2018 and December 31, 2017, respectively.		10,502,558				10,502,558
Retained earnings		9,529,378				9,020,564
Accumulated other comprehensive income/(loss)		(41,042	)			(19,198	)
Total shareholders' equity		19,990,894				19,503,924
Total liabilities & shareholders' equity	$	198,108,432			$	192,801,007

CHINO COMMERCIAL BANCORP
CONSOLIDATED STATEMENTS OF NET INCOME
	For the three months ended
	March 31
		2018				2017
	(unaudited)				(unaudited)
Interest income
Interest and fee income on loans	$	1,659,877			$	1,467,711
Interest on federal funds sold and FRB deposits		97,724				60,129
Interest on time deposits in banks		3,956				7,057
Interest on investment securities		140,573				122,745
Total interest income		1,902,130				1,657,642
Interest Expense
Interest on deposits		87,244				75,841
Other borrowings		89,636				54,132
Total interest expense		176,880				129,973
Net interest income		1,725,250				1,527,669
Provision for loan losses		50,000				55,000
Net interest income after provision for loan losses		1,675,250				1,472,669
Non-interest income
Service charges on deposit accounts		307,037				291,643
Other miscellaneous income		19,196				18,110
Dividend income from restricted stock		35,834				45,081
Income from bank-owned life insurance		24,453				25,022
Total non-interest income		386,520				379,856
Non-interest expenses
Salaries and employee benefits		868,915				744,775
Occupancy and equipment		114,656				105,532
Data and item processing		91,636				76,081
Advertising and marketing		28,586				21,844
Legal and professional fees		33,198				37,434
Regulatory assessments		33,128				37,610
Insurance		8,559				8,005
Directors' fees and expenses		30,759				26,548
Other expenses		140,986				115,704
Total non-interest expenses		1,350,423				1,173,533
Income before income tax expense		711,347				678,992
Income tax expense		202,534				267,078
Net income	$	508,813			$	411,914
Basic earnings per share	$	0.33			$	0.33
Diluted earnings per share	$	0.33			$	0.33
Tax rate		28.5	%			39.3	%

		For the three months ended
		March 31
			2018				2017
KEY FINANCIAL RATIOS
(unaudited)
Annualized return on average equity			10.27	%			11.94	%
Annualized return on average assets			1.02	%			0.92	%
Net interest margin			4.03	%			3.76	%
Core efficiency ratio			63.95	%			61.52	%
Net chargeoffs/(recoveries) to average loans			-0.01	%			-0.01	%
AVERAGE BALANCES
(thousands, unaudited)
Average assets		$	199,089			$	179,168
Average interest-earning assets		$	173,525			$	164,802
Average gross loans		$	122,699			$	110,136
Average deposits		$	147,053			$	139,925
Average equity		$	19,822			$	13,794
CREDIT QUALITY		End of period
(unaudited)		March 31, 2018				December 31, 2017
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			1.69	%			1.71	%
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			10.09	%			10.12	%
Net loans to deposits			78.19	%			80.56	%
Non-interest bearing deposits to total deposits			53.08	%			50.14	%
Total capital to total risk-weighted assets			18.39	%			18.43	%
Tier 1 capital to total risk-weighted assets			19.79	%			19.76	%
Tier 1 leverage ratio			14.17	%			13.41	%
Common equity tier 1			19.79	%			19.76	%

 

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