CHINO, Calif., April 21, 2017 (GLOBE NEWSWIRE) -- The Board of Directors of Chino Commercial Bank, N.A. (OTC:CCBC) announced the results of operations for the quarter ended March 31, 2017 with net income of $411,914, or an increase of 5.5% over net income of $390,530 for March 31, 2016. Net income per basic and diluted share for the quarter ended March 31, 2017 was $0.33 as compared to $0.32 per share for the quarter ended March 31, 2016.
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.” The economic strength of the Inland Empire is supporting tremendous growth opportunities for the Bank; and the first quarter marked new record levels for total assets, loans, revenue and net earnings. In general, this is a very good time for the Bank and we are pleased and excited about the future”
Financial Condition
At March 31, 2017, total assets were $185.3 million, an increase of $10.2 million or 5.9% over $175.1 million at December 31, 2016. Total deposits increased by 7.2% or $9.9 million during the year to $147.5 million, compared to $137.6 million as of December 31, 2016. At March 31, 2017, the Company’s core deposits represent 97.1% of the total deposits.
Gross loans increased by 3.3% or $3.6 million as of March 31, 2017 to $113.1 million as compared with $109.6 million as of December 31, 2016. The Bank had one nonperforming loan for the quarter ended March 31, 2017 and December 31, 2016, respectively. OREO properties remained at zero as of March 31, 2017, and December 31, 2016, respectively.
Earnings
The Company posted net interest income of $1,527,669 and $1,400,128 for the three months ended March 31, 2017 and 2016, respectively, or an increase of $127,541 or 9.1%. Average interest-earning assets were $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, as compared to the average interest-earning assets of $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.
Non-interest income totaled $379,856 for the first quarter of 2017, or an increase of 5.2% as compared with $360,959 earned during the same quarter last year. Service charges on deposit accounts increased 5.0% to $291,643 primarily due to an increase in income from returned items and overdraft charges. Dividend income from restricted stock increased to $45,081 for the first quarter of 2017, compared to $34,881 for the same quarter in 2016. Income from bank-owned life insurance remained consistent at $25,022 in the first quarter of 2017 and $25,572 in the first quarter of 2016.
General and administrative expenses were $1,173,533 for the three months ended March 31, 2017, as compared to $1,118,217 for the first quarter of 2017. The largest component of general and administrative expenses was salary and benefits expense of $744,775 for the first quarter of 2017, as compared to $680,889 for the same quarter last year. Regulatory assessments increased to $37,610 in the first quarter of 2017 in comparison with $30,311 in the first quarter of 2016. Advertising and marketing expenses increased 27.6% to $21,844 in the first quarter of 2017 from $17,116 for the same period last year.
Income tax expense was $267,078 for the three months ended March 31, 2017 as compared to $251,294 for the three months ended March 31, 2016. The effective income tax rate for the first quarter of 2016 and 2015 is approximately 39.3% and 39.2%, 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.
| CHINO COMMERCIAL BANCORP | ||||||||
| CONSOLIDATED BALANCE SHEET | ||||||||
| March 31, 2017 and December 31, 2016 | ||||||||
| March 31, 2017 | December 31, 2016 | |||||||
| (unaudited) | (audited) | |||||||
| ASSETS: | ||||||||
| Cash and due from banks | 37,139,627 | $ | 30,498,888 | |||||
| Total cash and cash equivalents | 37,139,627 | 30,498,888 | ||||||
| Interest-bearing deposits in other banks | 2,232,000 | 2,480,000 | ||||||
| Investment securities available for sale | 3,753,782 | 3,924,102 | ||||||
| Investment securities held to maturity (fair value approximates | ||||||||
| $19,042,472 at March 31, 2017 and $18,240,000 at December 31, 2016) | 19,191,568 | 18,407,741 | ||||||
| Total investments | 25,177,350 | 24,811,843 | ||||||
| Loans | ||||||||
| Real estate | 93,882,650 | 87,306,627 | ||||||
| Commercial | 18,844,416 | 21,822,341 | ||||||
| Installment | 399,330 | 424,818 | ||||||
| Gross loans | 113,126,396 | 109,553,786 | ||||||
| Unearned fees and discounts | (352,799 | ) | (348,359 | ) | ||||
| Loans net of unearned fees and discount | 112,773,597 | 109,205,427 | ||||||
| Allowance for loan losses | (1,908,975 | ) | (1,845,447 | ) | ||||
| Net loans | 110,864,622 | 107,359,980 | ||||||
| Fixed assets, net | 5,946,157 | 6,000,404 | ||||||
| Accrued interest receivable | 281,885 | 295,102 | ||||||
| Stock investments, restricted, at cost | 1,935,300 | 1,935,300 | ||||||
| Bank-owned life insurance | 3,310,986 | 3,285,963 | ||||||
| Other assets | 678,908 | 904,338 | ||||||
| Total assets | $ | 185,334,835 | $ | 175,091,818 | ||||
| LIABILITIES: | ||||||||
| Deposits | ||||||||
| Non-interest bearing | $ | 72,583,231 | $ | 68,613,998 | ||||
| Interest bearing | ||||||||
| NOW and money market | 58,354,775 | 52,873,006 | ||||||
| Savings | 5,890,136 | 5,165,730 | ||||||
| Time deposits less than $250,000 | 6,314,105 | 4,438,254 | ||||||
| Time deposits of $250,000 or greater | 4,319,520 | 6,471,260 | ||||||
| Total deposits | 147,461,767 | 137,562,248 | ||||||
| Accrued interest payable | 30,673 | 27,902 | ||||||
| Borrowings from Federal Home Loan Bank (FHLB) | 20,000,000 | 20,000,000 | ||||||
| Accrued expenses & other payables | 807,039 | 872,374 | ||||||
| Subordinated notes payable to subsidiary trust | 3,093,000 | 3,093,000 | ||||||
| Total liabilities | 171,392,479 | 161,555,524 | ||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 1,231,332 shares at March 31, 2017 and December 31, 2016, respectively. | ||||||||
| 6,089,466 | 6,089,466 | |||||||
| Retained earnings | 7,861,522 | 7,449,608 | ||||||
| Accumulated other comprehensive income/(loss) | (8,632 | ) | (2,780 | ) | ||||
| Total shareholders' equity | 13,942,356 | 13,536,294 | ||||||
| Total liabilities & shareholders' equity | $ | 185,334,835 | $ | 175,091,818 | ||||
| CHINO COMMERCIAL BANCORP | ||||||||
| CONSOLIDATED STATEMENTS OF NET INCOME | ||||||||
| (unaudited) | ||||||||
| For the three months ended | ||||||||
| March 31 | ||||||||
| 2017 | 2016 | |||||||
| Interest income | ||||||||
| Interest and fee income on loans | $ | 1,467,711 | $ | 1,310,104 | ||||
| Interest on federal funds sold and FRB deposits | 60,129 | 26,333 | ||||||
| Interest on time deposits in banks | 7,057 | 10,450 | ||||||
| Interest on investment securities | 122,745 | 147,839 | ||||||
| Total interest income | 1,657,642 | 1,494,726 | ||||||
| Interest Expense | ||||||||
| Interest on deposits | 75,841 | 60,347 | ||||||
| Other borrowings | 54,132 | 34,251 | ||||||
| Total interest expense | 129,973 | 94,598 | ||||||
| Net interest income | 1,527,669 | 1,400,128 | ||||||
| Provision for loan losses | 55,000 | 1,046 | ||||||
| Net interest income after provision for loan losses | 1,472,669 | 1,399,082 | ||||||
| Non-interest income | ||||||||
| Service charges on deposit accounts | 291,643 | 277,873 | ||||||
| Other miscellaneous income | 18,110 | 22,633 | ||||||
| Dividend income from restricted stock | 45,081 | 34,881 | ||||||
| Income from bank-owned life insurance | 25,022 | 25,572 | ||||||
| Total non-interest income | 379,856 | 360,959 | ||||||
| Non-interest expenses | ||||||||
| Salaries and employee benefits | 744,775 | 680,889 | ||||||
| Occupancy and equipment | 105,532 | 103,828 | ||||||
| Data and item processing | 76,081 | 77,120 | ||||||
| Advertising and marketing | 21,844 | 17,116 | ||||||
| Legal and professional fees | 37,434 | 47,430 | ||||||
| Regulatory assessments | 37,610 | 30,311 | ||||||
| Insurance | 8,005 | 8,471 | ||||||
| Directors' fees and expenses | 26,548 | 26,709 | ||||||
| Other expenses | 115,704 | 126,343 | ||||||
| Total non-interest expenses | 1,173,533 | 1,118,217 | ||||||
| Income before income tax expense | 678,992 | 641,824 | ||||||
| Income tax expense | 267,078 | 251,294 | ||||||
| Net income | $ | 411,914 | $ | 390,530 | ||||
| Basic earnings per share | $ | 0.33 | $ | 0.32 | ||||
| Diluted earnings per share | $ | 0.33 | $ | 0.32 | ||||
| Tax rate | 39.3 | % | 39.2 | % | ||||
| For the three months ended | |||||||||
| March 31 | |||||||||
| 2017 | 2016 | ||||||||
| KEY FINANCIAL RATIOS | |||||||||
| (unaudited) | |||||||||
| Annualized return on average equity | 12.18% | 12.68% | |||||||
| Annualized return on average assets | 0.92% | 0.96% | |||||||
| Net interest margin | 3.76% | 3.81% | |||||||
| Core efficiency ratio | 61.52% | 63.50% | |||||||
| Net charge offs/(recoveries) to average loans | -0.01% | -0.01% | |||||||
| AVERAGE BALANCES | |||||||||
| (thousands, unaudited) | |||||||||
| Average assets | $ | 179,168 | $ | 161,960 | |||||
| Average interest-earning assets | $ | 164,802 | $ | 147,688 | |||||
| Average gross loans | $ | 110,136 | $ | 95,183 | |||||
| Average deposits | $ | 139,925 | $ | 129,679 | |||||
| Average equity | $ | 13,532 | $ | 12,316 | |||||
| CREDIT QUALITY | End of period | ||||||||
| (unaudited) | March 31, 2017 | December 31, 2016 | |||||||
| Non-performing loans | $ | 521,696 | $ | - | |||||
| Non-performing loans to total loans | 0.46% | 0.00% | |||||||
| Non-performing loans to total assets | 0.28% | 0.00% | |||||||
| Allowance for loan losses to total loans | 1.69% | 1.68% | |||||||
| Nonperforming assets as a percentage of total loans and OREO | 0.46% | 0.00% | |||||||
| Allowance for loan losses to non-performing loans | 365.92% | n/a | |||||||
| OTHER PERIOD-END STATISTICS | |||||||||
| (unaudited) | |||||||||
| Shareholders equity to total assets | 7.52% | 7.73% | |||||||
| Net loans to deposits | 75.18% | 78.04% | |||||||
| Non-interest bearing deposits to total deposits | 49.22% | 49.88% | |||||||
| Total capital to total risk-weighted assets | 15.78% | 15.37% | |||||||
| Tier 1 capital to total risk-weighted assets | 15.85% | 15.32% | |||||||
| Tier 1 leverage ratio | 10.64% | 10.24% | |||||||
| Common equity tier 1 | 15.85% | 15.32% | |||||||