Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,512.38 -3.89 -0.03%
TOPIX 1,171.40 -1.97 -0.17%
HANG SENG 22,760.24 64.23 0.28%

Chino Commercial Bancorp Reports 28% Increase In Third Quarter Earnings



   Chino Commercial Bancorp Reports 28% Increase In Third Quarter Earnings

PR Newswire

CHINO, Calif., Oct. 22, 2012

CHINO, Calif., Oct. 22, 2012 /PRNewswire/ -- The Board of Directors of Chino
Commercial Bancorp (OTCBB: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, 2012 with net
earnings of $153,816 or a 28.1% increase from net earnings of $120,113 for the
third quarter of 2011. Net income for the most recent quarter represents $0.19
per basic share, as compared with $0.16 per basic share from the same quarter
last year. The Company's profit for the nine months ended September 30, 2012
increased 76.2% to $481,970 or $0.60 per basic share as compared with net
earnings of $273,474 or $0.37 per basic share for the same period in 2011.

Dann H. Bowman, President and Chief Executive Officer, stated, "We are very
pleased with the performance and earnings of the Bank during the third
quarter.  Not only were earnings up 28% over the same period last year, but
loan quality has improved with the Bank having only two delinquent loans at
quarter-end.  Year-to-date earnings reflect an annualized return on beginning
equity of 8.60%, which in this low rate environment is an excellent return to
our shareholders.

"The economy in the Inland Empire appears to be improving, with real estate
values rising moderately and residential foreclosure rates decreasing. 
Business conditions are improving with many of our small business customers
and we are motivated and eager to provide financing for the businesses and
consumers in our community."

Financial Condition

Total assets increased from $109.7 million at December 31, 2011 to $119.3
million at September 30, 2012, or an 8.7% increase.  Investments decreased
from $26.0 million at December 31, 2011 to $23.4 million, or 10.0%, while
gross loans increased from $56.8 million to $59.4 million, and federal funds
sold increased from $14.2 million to $24.4 million.  Overall, earning assets
increased 10.6% in the nine month period ended September 30, 2012.

The Bank's asset quality improved in the nine months ended September 30, 2012
as $439,317.26 in OREO was sold and the level of nonperforming assets to total
loans and OREO moved from 7.07% at December 31, 2011 to 3.90% at September 30,
2012. Net charged-off loans were $101,692 for the nine months ended September
30, 2012 compared to $186,619 for the same period of 2011. Nonperforming loans
decreased from $4.4 million at September 30, 2011 to $2.3 million at September
30, 2012, a reduction of 47%.

Balance sheet changes in the nine months ended September 30, 2012 include an
increase in earning assets and an increase in deposits. Total deposits
increased by $8.7 million or 8.8% to $106.8 million at September 30, 2012,
compared to $98.1 million December 31, 2011. Time deposits decreased 1.0
million or 5.8% to $15.9 million at September 30, 2012 from 16.9 million at
December 31, 2011. This reduction was an intentional strategy to reduce higher
yielding deposits. Non-interest bearing deposits increased 8.2% to $51.1
million at September 30, 2012 from $47.2 million at December 31, 2011; and NOW
and money market accounts increased 17.5% to 37.9 million at September 30,
2012 from $32.2 million at December 31, 2011.  The ratio of non-interest
bearing deposits to total deposits decreased slightly from 48.1% at December
31, 2011 to 47.8% at September 30, 2012.

On September 16, 2011, the Company filed a registration statement on Form S-1
with the SEC in connection with a secondary stock offering to existing
shareholders which commenced in the fourth quarter of 2011 and was extended to
the general public in early 2012. The Company has received $668,442.14 in
additional paid in capital from the offering. The offering closed on July 15,
2012.

Earnings

The Company posted net interest income of $923,873 and $870,314 for the three
months ended September 30, 2012 and 2011, respectively. For the nine months
ended September 30, the Company posted net interest income of $2.7 million and
$2.8 million for 2012 and 2011, respectively. Interest and fee income from
loans increased $53,794, or 6.1% to $931,264 for the third quarter of 2012
compared with the third quarter of 2011. The decrease in interest income from
loans was $101,670, or 3.6%, comparing the nine months ended September 30,
2012 with same period in 2011. For the nine months ended September 30, 2012,
investment income decreased $178,172, or 39.1%, to $277,759 as compared to the
nine months ended September 30, 2011.

Non-interest income totaled $314,333 for the three months ended September 30,
2012, or a 4.1% decrease from $327,655 earned during the third quarter of
2011. Non-interest income increased 6.0% for the nine months ended September
30, 2012 to $1.1 million, as compared to $1.0 million for the nine months
ended September 30, 2011.  The major contributor to the increase in the
nine-month period was other miscellaneous income due to reimbursement of legal
expenses incurred in 2011.

The provision for loan losses decreased to $76 during the third quarter of
2012, a decrease of $2,145, as compared to $2,221 for the three months ended
September 30, 2011. The Company provided $2,048 to the allowance for loan
losses during the nine months ended September 30, 2012, a reduction from
$281,660 for the same period in 2011. The lower provision for the nine months
ended September 30, 2012 was due to a lower level of charge-offs during the
period as compared to the first half of 2011 as well as a decrease in
nonperforming assets.

General and administrative expenses were $995,743 and $3,036,344 for the three
and nine months ended September 30, 2012, respectively, as compared to
$1,011,489 and $3,148,761 for the three and nine months ended September 30,
2011. Legal and professional fees decreased $98,101 to $212,983 and regulatory
assessments decreased $11,223 to $166,195 for the nine months ended September
30, 2012 compared to the same period in 2011.

Income tax expense was $278,744 for the nine months ended September 30, 2012,
as compared to $131,997 for the nine months ended September 30, 2011. The
effective income tax rate for the nine months ended September 30, 2012 and
2011 is approximately 36.6% and 32.6%, respectively.

Forward-Looking Statements

The statements contained in this 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.  The forward-looking statements are not guarantees of future
performance and involve significant risks and uncertainties, and readers are
cautioned not to unduly rely on such forward-looking statements. Actual
results and performance in future periods may be materially different from any
future results or performance suggested by the forward-looking statements in
this release. Factors that might cause such differences include, but are not
limited to, the health of the National and California economies, the Company's
ability to attract and retain skilled employees, competition in the financial
services market for both deposits and loans, the Company's ability to increase
its customer base, customers' service expectations, the Company's ability to
successfully deploy new technology and gain efficiencies therefrom, the
success of branch expansion, changes in interest rates, loan portfolio
performance, the Company's ability to enhance its earnings capacity, and other
factors detailed in the Company's SEC filings, including the "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition and Results
of Operations" sections of the Company's most recent Form 10-K.

CHINO COMMERCIAL BANCORP
CONSOLIDATED BALANCE SHEET
September 30, 2012 and December 31, 2011
                                         September 30, 2012  December 31, 2011
                                         (unaudited)         (audited)
ASSETS:
Cash and due from banks                  $     3,723,692     $     3,358,177
Federal funds sold                       24,362,107          14,165,877
Total cash and cash equivalents          28,085,799          17,524,054
Interest-bearing deposits in other banks 15,736,252          13,339,252
Investment securities available for sale 2,463,801           2,972,420
Investment securities held to maturity
(fair value approximates $5,383,000 at   5,162,608           9,652,630
September 30, 2012 and $9,861,000 at
December 31, 2011)
Total investments                        23,362,661          25,964,302
Loans
Construction                             0                   0
Real estate                              47,206,181          46,184,898
Commercial                               11,888,615          9,974,353
Installment                              343,986             643,660
Gross loans                              59,438,782          56,802,911
Unearned fees and discounts              (137,191)           (29,107)
Loans net of unearned fees and discount  59,301,591          56,773,804
Allowance for loan losses                (1,438,319)         (1,537,963)
 Net loans                               57,863,272          55,235,841
Accrued interest receivable              254,082             275,976
Restricted stock                         623,300             667,700
Fixed assets, net                        6,309,127           6,443,753
Foreclosed assets                        0                   439,317
Prepaid & other assets                   2,763,820           3,154,650
Total assets                             $ 119,262,061       $ 109,705,593
LIABILITIES:
Deposits
Non-interest bearing                     $   51,053,088      $   47,188,644
Interest bearing
NOW and money market                     37,870,150          32,241,986
Savings                                  1,965,306           1,809,536
Time deposits less than $100,000         4,379,976           4,700,126
Time deposits of $100,000 or greater     11,509,110          12,163,266
Total deposits                           106,777,630         98,103,558
Accrued interest payable                 35,314              139,646
Accrued expenses & other payables        738,591             897,363
Subordinated notes payable to subsidiary 3,093,000           3,093,000
trust
Total liabilities                        110,644,535         102,233,567
SHAREHOLDERS' EQUITY
Common stock, authorized 10,000,000
shares with no par value, issued and
outstanding 829,602 shares and 749,540   3,429,254           2,760,813
shares at September 30, 2012 and
December 31, 2011, respectively.
Retained earnings                        5,113,579           4,631,609
Accumulated other comprehensive income   74,693              79,604
Total shareholders' equity               8,617,526           7,472,026
Total liabilities & shareholders' equity $ 119,262,061       $ 109,705,593

CHINO COMMERCIAL BANCORP
CONSOLIDATED STATEMENTS OF NET INCOME
(unaudited)
                         For the three months ended  For the nine months ended
                         September 30                September 30
                         2012           2011         2012          2011
Interest income
Investment securities    $   82,697     $ 133,204    $ 277,759     $ 455,931
and due from banks
Interest on Federal      10,280         4,616        30,102        8,651
funds sold
Interest and fee income  931,264        877,470      2,691,575     2,793,245
on loans 
Total interest income    1,024,241      1,015,290    2,999,436     3,257,827
Interest expense
Deposits                 83,041         94,013       248,643       307,740
Other interest expense   0              0            0             75
Other borrowings         17,327         50,963       52,795        152,888
Total interest expense   100,368        144,976      301,438       460,703
Net interest income      923,873        870,314      2,697,998     2,797,124
Provision for loan       76             2,221        2,048         281,660
losses
Net interest income
after
provision for loan       923,797        868,093      2,695,950     2,515,464
losses
Non-interest income
Service charges on       286,132        298,241      876,973       892,317
deposit accounts
Gain on sale of          0              0            93,871        61,151
foreclosed assets
Other miscellaneous      8,415          9,299        66,164        24,805
income
Dividend income from     2,996          2,783        12,959        8,342
restricted stock
Income from bank-owned   16,790         17,332       51,141        52,153
life insurance
Total non-interest       314,333        327,655      1,101,108     1,038,768
income
Non-interest expenses
Salaries and employee    513,382        538,909      1,633,223     1,647,203
benefits
Occupancy and equipment  111,905        98,992       318,971       325,794
Data and item processing 92,848         86,777       265,691       277,962
Advertising and          13,919         14,947       38,824        42,183
marketing
Legal and professional   76,224         108,861      212,983       311,084
fees
Regulatory assessments   54,872         26,051       166,195       177,418
Insurance                12,062         10,587       36,497        30,236
Directors' fees and      27,167         17,321       80,207        54,097
expenses
Other expenses           93,364         109,044      283,753       282,784
Total non-interest       995,743        1,011,489    3,036,344     3,148,761
expenses
Income (loss) before     242,387        184,259      760,714       405,471
income tax expense
Income tax expense       88,571         64,146       278,744       131,997
(benefit)
Net income (loss)        $ 153,816      $ 120,113    $ 481,970     $ 273,474
Basic earnings per       $      0.19    $      0.16  $      0.60   $      0.37
share  
Diluted earnings (loss)  $      0.19    $      0.16  $      0.59   $      0.37
per share 

CHINO COMMERCIAL BANCORP
                         For the three months ended  For the nine months ended
                         September 30                September 30
                         2012           2011         2012          2011
KEY FINANCIAL RATIOS
(unaudited)
Annualized return on     7.21%          6.80%        7.82%         5.17%
average equity
Annualized return on     0.56%          0.46%        0.59%         0.34%
average assets
Net interest margin      3.74%          3.78%        3.75%         3.99%
Core efficiency ratio    80.42%         84.43%       81.95%        83.42%
Net chargeoffs to        0.18%          -0.12%       0.18%         0.31%
average loans
AVERAGE BALANCES
(thousands, unaudited)
Average assets           $ 110,727      $ 104,712    $ 108,751     $ 107,492
Average interest-earning $   98,316     $   91,289   $   96,061    $   93,677
assets
Average gross loans      $   58,075     $   58,679   $   56,266    $   59,425
Average deposits         $   98,234     $   93,509   $   96,449    $   96,219
Average equity           $     8,536    $     7,062  $     8,218   $     7,052

CREDIT QUALITY                        End of period
(unaudited)                           September 30, 2012  December 31, 2011
Non-performing loans                  $                   $          3,605,142
                                      2,318,247
Non-performing loans to total loans   3.90%               6.35%
Non-performing loans to total assets  1.94%               3.29%
Allowance for loan losses to total    2.42%               2.71%
loans
Nonperforming assets as a percentage  3.90%               7.07%
of total loans and OREO
Allowance for loan losses to          62.04%              42.66%
non-performing loans
OTHER PERIOD-END STATISTICS
(unaudited)                           September 30, 2012  December 31, 2011
Shareholders equity to total assets   7.23%               6.81%
Net Loans to deposits                 54.19%              56.30%
Non-interest bearing deposits to      47.81%              48.10%
total deposits

 

SOURCE Chino Commercial Bancorp

Website: http://www.chinocommercialbank.com
Contact: Dann H. Bowman, President and CEO, or Sandra F. Pender, Senior Vice
President and CFO, Chino Commercial Bank, N.A., +1-909-393-8880
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement