Chino Commercial Bank, N.A. Posts 41.9 Percent Increase in Net Income25 July 2006
The Board of Directors of Chino Commercial Bank, N.A. (OTCBB:CCBC) announced the results of operations for the three months ended June 30, 2006 with net income of $277,642 or $0.31 per diluted share, a 41.9% increase over net income of $195,630 or $0.22 per diluted share for the second quarter of 2005. Net income for the six months ended June 30, 2006 was $542,173 or $0.61 per diluted share, a 45.4% increase over net income of $372,697 or $0.42 per diluted share for the six months ended June 30, 2005. Dann H. Bowman, President and Chief Executive Officer stated, "The continued strong growth in the loan portfolio of the Bank coupled with the steady rise in Interest rates has created an outstanding earnings performance for the Bank for the three and six months ended June 30, 2006."
On July 3, 2006, Chino Commercial Bank, N. A. was pleased to announce that it had completed its reorganization into a holding company structure effective June 30, 2006. As a result of the reorganization, the Bank is now wholly-owned by Chino Commercial Bancorp. Mr. Bowman commented, "The holding company reorganization was completed in order to allow more alternatives for raising capital and access to debt markets as well as capital management, increased structural alternatives for acquisitions and increased flexibility with respect to engaging in non-banking activities. Although at this time, there is no immediate need to engage in any of these activities."
Total Assets increased by 2.1% to $93.3 million from $91.3 million at December 31, 2005. Total Loans increased 10.4% to $46.2 million at June 30, 2006 as compared to $41.8 million at December 31, 2005. Total Deposits increased 1.5% to $85.3 million at June 30, 2006 as compared to $84.02 million at December 31, 2005. On June 30, 2006, the Bank had no loan delinquencies greater than 30 days, no loans on non-accrual status, and no non-performing loans or other real estate owned.
The increase in total income for the six months ended June 30, 2006 was primarily due to an increase in the net interest margin of $384,128 or 20.4%. The Bank posted net interest income of $2,263,883 for the six months ended June 30, 2006 as compared to $1,879,755 for the same period last year. This increase in income was partially offset by an increase in general and administrative expenses of $155,961 primarily resulting from an increase in Salary and Benefits expense. The Bank posted net interest income of $1,162,162 for the three months ended June 30, 2006 as compared to $999,017 for the same quarter last year. This increase in income was partially offset by an increase in general and administrative expenses of $59,750 resulting primarily from an increase in Salary and Benefits expense.
Average interest-earning assets were $80.5 million with average interest-bearing liabilities of $23.6 million yielding a net interest margin of 5.62% for the six months ended June 30, 2006 as compared to average interest-bearing assets of $73.8 million with average interest-bearing liabilities of $15.9 million yielding a net interest margin of 5.10% for the six months ended June 30, 2005. The net interest margin continues to increase as the Federal Reserve raises short-term interest rates.
Average interest-earning assets were $82.9 million with average interest-bearing liabilities of $25.0 million yielding a net interest margin of 5.61% for the three months ended June 30, 2006 as compared to average interest-bearing assets of $75.1 million with average interest-bearing liabilities of $16.7 million yielding a net interest margin of 5.32% for the three months ended June 30, 2005.
General and administrative expenses were $1,647,377 for the six months ended June 30, 2006 as compared to $1,491,416 for the six months ended June 30, 2005. The largest component of general and administrative expenses was salary and benefits expense of $842,373 for the six months ended June 30, 2006 as compared to $717,541 for the six months ended June 30, 2005. Salary and benefits increased $124,832 due primarily to higher average full-time equivalent staff associated with the opening of the Ontario Branch on January 5, 2006. Likewise, occupancy and equipment expenses increased $74,841 with the opening of the Ontario Branch.
General and administrative expenses were $844,139 for the three months ended June 30, 2006 as compared to $784,389 for the three months ended June 30, 2005. The largest component of general and administrative expense was salary and benefits expense of $433,195 for the second quarter of 2006 as compared to $383,045 for the second quarter of 2005. Salary and benefits expenses and Occupancy and equipment expenses increased for the second quarter of 2006 as compared to the second quarter of 2005 primarily due to the opening of the Ontario branch.
FORWARD-LOOKING STATEMENTS
The statements contained in this release that are not historical facts are forward-looking statements based upon management's current expectations and beliefs concerning future developments and their potential effect on Chino Commercial Bank. There can be no assurances that future developments affecting Chino Commercial Bank will be the same as those anticipated by management.
Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties. These include, but are not limited to, the following risks: (1) changes in performance of the financial markets, (2) changes in the demand for and market acceptance of Chino Commercial Bank's products and services, (3) changes in general economic conditions including interest rates, presence of competitors with greater financial resources, and the impact of competitive products and pricing, (4) the effect of Chino Commercial Bank's policies and (5) the continued availability of adequate funding sources.
CHINO COMMERCIAL BANK N. A.
STATEMENTS OF FINANCIAL CONDITION
June 30, December 31,
2006 2005
----------- -----------
(unaudited)
ASSETS:
Cash and Due from Banks $ 5,218,760 $ 5,328,842
Federal Funds Sold 9,155,000 11,370,000
----------- -----------
Cash and Cash equivalents 14,373,760 16,698,842
Interest-bearing deposits at banks 7,122,000 6,030,000
Investment Securities available for sale 15,105,602 16,311,377
Investment Securities held to maturity
(fair value approximates $5,180,028 at
June 30, 2006 and $5,764,134 at
December 31, 2005) 5,369,702 5,850,687
Federal Reserve Bank stock, at cost 159,600 159,600
Federal Home Loan Bank stock, at cost 407,100 362,600
Pacific Coast Bankers' Bank stock, at cost 50,000 50,000
----------- -----------
Total investments 28,214,004 28,764,264
----------- -----------
Loans
Construction 3,369,860 2,790,712
Real estate 33,939,533 30,444,344
Commercial 8,962,174 8,295,573
Farm/Agriculture 322,712 330,920
Installment 313,725 633,504
Unearned fees and discounts (145,827) (144,106)
Allowance for loan losses (572,390) (544,140)
----------- -----------
Total Loans 46,189,787 41,806,807
----------- -----------
Fixed Assets, net 2,302,120 1,936,168
Accrued Interest Receivable 354,067 311,849
Prepaid & Other Assets 1,880,786 1,811,979
----------- -----------
Total Assets $93,314,524 $91,329,909
=========== ===========
LIABILITIES:
Deposits
Non-interest Bearing $59,484,320 $62,610,963
Interest Bearing
Money market 21,280,312 16,793,824
Savings 1,144,417 913,249
Time deposits of $100,000 or greater,
due in one year 1,920,629 2,216,104
Time deposits less than $100,000,
due in one year 1,519,075 1,487,803
----------- -----------
Total Deposits 85,348,753 84,021,943
----------- -----------
Accrued Interest Payable 29,079 28,858
Accrued Expenses & Other Payables 693,304 588,068
----------- -----------
Total Liabilities 86,071,136 84,638,869
----------- -----------
STOCKHOLDERS' EQUITY
Common Stock, authorized 10,000,000 shares
with a par value of $3.33 per share;
issued and outstanding 825,953 shares
and 818,453 shares at June 30, 2006 and
December 31, 2005, respectively 2,753,205 2,728,230
Additional paid-in capital 2,623,798 2,590,600
Retained earnings 2,039,991 1,497,818
Accumulated other comprehensive loss (173,606) (122,608)
----------- -----------
Total Equity 7,243,388 6,694,040
----------- -----------
Total Liabilities & Equity $93,314,524 $91,332,909
=========== ===========
CHINO COMMERCIAL BANK, N. A.
STATEMENTS OF OPERATIONS
(unaudited)
For the For the
Three months ending Six months ending
June 30, June 30,
2006 2005 2006 2005
--------- --------- --------- ---------
Interest Income
Interest Income
- Securities $ 304,404 $ 232,747 $ 597,278 $ 454,307
Interest Income
- Fed Funds 108,702 74,553 186,576 134,705
Interest and fee
income on Loans 865,034 751,245 1,676,213 1,399,819
--------- --------- --------- ---------
Total Interest
Income 1,278,140 1,058,545 2,460,067 1,988,831
--------- --------- --------- ---------
Interest Expense
Interest Expense
- Deposits 115,678 59,528 195,584 109,076
Interest Expense
- Other Borrowings 300 600
--------- --------- --------- ---------
Total Interest
Expense 115,978 59,528 196,184 109,076
--------- --------- --------- ---------
Net interest income 1,162,162 999,017 2,263,883 1,879,755
--------- --------- --------- ---------
Provision for loan
losses 19,500 36,350 28,250 53,418
--------- --------- --------- ---------
Net interest income
after provision for
loan losses 1,142,662 962,667 2,235,633 1,826,337
--------- --------- --------- ---------
Non-interest income
Service Charges on
Deposit Accounts 134,926 111,600 263,874 220,535
Other miscellaneous
fee income 4,793 2,467 7,921 4,162
Income from Mortgage
Banking 1,740 11,479 1,740 17,697
Income from Bank
Owned Life Insurance 15,504 15,656 30,185 31,473
--------- --------- --------- ---------
Total Non-interest
income 156,963 141,202 303,720 273,867
--------- --------- --------- ---------
General &
Administrative Expenses
Salaries & Benefits 433,195 383,045 842,373 717,541
Occupancy & Equipment 97,314 64,093 201,953 127,112
Data & Item Processing 61,753 53,912 122,711 104,782
Advertising & Marketing 25,529 34,227 39,978 59,799
Audit & Professional
fees 45,541 45,326 89,363 95,271
Insurance 6,196 5,982 12,340 11,964
Directors' fees and
expenses 22,285 19,252 44,356 37,807
Other expenses 152,326 178,552 294,303 337,140
--------- --------- --------- ---------
Total general &
administrative
expenses 844,139 784,389 1,647,377 1,491,416
--------- --------- --------- ---------
Income before income
tax expense 455,486 319,480 891,976 608,788
Income tax expense 177,844 123,850 349,803 236,091
--------- --------- --------- ---------
Total income $ 277,642 $ 195,630 $ 542,173 $ 372,697
========= ========= ========= =========
Basic Earnings
per share $ 0.34 $ 0.24 $ 0.66 $ 0.46
========= ========= ========= =========
Diluted Earnings
per share $ 0.31 $ 0.22 $ 0.61 $ 0.42
========= ========= ========= =========
CHINO COMMERCIAL BANK
Selected Financial Highlights
For the three months For the six months
ended June 30, ended June 30,
-------------------- ----------------------
2006 2005 2006 2005
---------- -------- ---------- ----------
Selected Operating Data:
Net interest income $1,278,140 $999,017 $2,460,067 $1,879,755
Provision for loan
losses 19,500 36,350 28,250 53,418
Non-interest income 156,963 141,202 303,720 273,867
Non-interest expense 844,139 784,389 1,647,377 1,491,416
Net income $ 277,542 $195,630 $ 542,173 $ 372,697
Share Data:
Basic income per share $ 0.34 $ 0.24 $ 0.66 $ 0.46
Diluted Income per
share $ 0.31 $ 0.22 $ 0.61 $ 0.42
Weighted average common
shares outstanding
Basic 823,453 818,453 820,953 818,453
Diluted 889,159 884,049 888,011 883,468
Performance Ratios:
Return on average assets 1.22% 0.96% 1.22% 0.93%
Return on average equity 15.53% 12.66% 15.46% 12.20%
Equity to total assets at
the end of the period 7.76% 7.33% 7.76% 7.33%
Net interest spread 4.31% 4.20% 4.43% 4.01%
Net interest margin 5.61% 5.32% 5.62% 5.10%
Average interest-earning
assets to average-
bearing liabilities 331.46% 450.43% 341.50% 463.57%
Core efficiency ratio 63.99% 68.77% 64.14% 69.19%
Non-interest expense to
average assets 3.70% 3.84% 3.70% 3.72%
Selected Balance Sheet Data: 6/30/2006 12/31/2005
----------- -----------
Total assets $93,314,524 $91,332,909
Investment securities held to maturity 5,369,702 5,850,687
Investment securities available for sale 15,105,602 16,311,377
Loan receivable, net 46,189,787 41,806,807
Deposits 85,348,753 84,021,943
Non-interest bearing deposits 59,484,320 62,610,963
Stockholders' equity $ 7,243,388 $ 6,694,040
Regulatory capital ratios:
Average equity to average assets 7.87% 7.46%
Leverage capital 8.13% 7.54%
Tier I risk based 12.12% 12.14%
Risk-based capital 13.12% 13.21%
Asset Quality Ratios:
Allowance for loan losses as a percent
of gross loans receivable 1.22% 1.28%
Net charge-offs to average loans n/a n/a
Non-performing loans to total loans n/a n/a
Number of full-service customer facilities 2 1
CONTACT: Chino Commercial Bank, N.A.
Dann H. Bowman, President and CEO
Jo Anne Painter, Executive Vice President and CFO
(909) 393-8880
Source: primezone
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