(MENAFN- GlobeNewsWire - Nasdaq) itemprop="articleBody">CHINO, Calif., April 19, 2019 (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, 2019, with net earnings of $625 thousand, or an increase of 23%, compared with net income of $509 thousand for the same quarter last year. Net income per basic and diluted share was $0.34 for the first quarter of 2019 and $0.27 for the same quarter 2018, respectively.
Dann H. Bowman, President and Chief Executive Officer stated, '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, 2019, total assets were $209.5 million, an increase of $7.5 million or 3.7% over $201.9 million at December 31, 2018. Total deposits increased by 2.8% or $4.8 million during the first quarter to $175.8 million, compared to $171.0 million as of December 31, 2018. At March 31, 2019, the Company's core deposits represent 94.2% of the total deposits.
Gross loans increased by 2.6% or $3.5 million as of March 31, 2019 to $135.7 million, as compared with $132.2 million as of December 31, 2018. The Bank did not have any nonperforming loans for the quarter ended March 31, 2019, and as of December 31, 2018, respectively. OREO properties remained at zero as of March 31, 2019 and December 31, 2018, respectively.
Earnings
The Company posted net interest income of $2.0 million and $1.7 million for the three months ended March 31, 2019 and 2018, respectively, or an increase of $309 thousand or 17.9%. Average interest-earning assets were $187.3 million with average interest-bearing liabilities of $98.6 million, yielding a net interest margin of 4.40% for the first quarter of 2019, as compared to the average interest-earning assets of $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.
Non-interest income totaled $425 thousand for the first quarter of 2019, or an increase of 10.0% as compared with $386.5 thousand earned during the same quarter last year. Service charges on deposit accounts, the largest component of non-interest income, increased by $49.0 thousand or 16.0% to $356 thousand, primarily due to an increase in income from returned items, overdraft charges, and analysis fees.
General and administrative expenses were $1.5 million for the three months ended March 31, 2019, and $1.4 million for the same period last year. The largest component of general and administrative expenses was salary and benefits expense of $1.0 million for the first quarter of 2019, as compared to $869 thousand for the same quarter last year. Occupancy and equipment expenses increased by $38 thousand or 33.6% to $153 thousand in the first quarter of 2019 from $115 thousand for the same period last year. The increase in occupancy and equipment is mostly attributed to opening the Upland branch in the fourth quarter of 2018.
Income tax expense was $251 thousand which represents an increase of $48.6 thousand or 24.03% for the three months ended March 31, 2019 as compared to $202.5 thousand for the three months ended March 31, 2018. The effective income tax rate for the first quarters of 2019 and 2018 is approximately 28.7% and 28.5%, 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, customer 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.
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, 2019 and December 31, 2018
March 31, 2019 December 31, 2018
(unaudited) (audited)
ASSETS:
Cash and due from banks $ 20,066,672 $ 25,451,866
Total cash and cash equivalents 20,066,672 25,451,866
Interest-bearing deposits in other banks 1,988,000 1,988,000
Investment securities available for sale 5,644,987 5,914,736
Investment securities held to maturity (fair value approximates
$36,019,665 at March 31, 2019 and $26,092,226 at December 31, 2018) 36,312,327 26,623,343
Total investments 43,945,314 34,526,079
Loans
Construction - -
Real estate 112,066,869 107,902,821
Commercial 23,365,834 24,029,989
Installment 231,892 241,077
Gross loans 135,664,595 132,173,887
Unearned fees and discounts (316,765 ) (345,054 )
Loans net of unearned fees and discount 135,347,830 131,828,833
Allowance for loan losses (2,352,700 ) (2,292,478 )
Net loans 132,995,130 129,536,355
Fixed assets, net 6,007,030 6,063,350
Accrued interest receivable 682,064 585,506
Stock investments, restricted, at cost 1,248,400 1,248,400
Bank-owned life insurance 3,508,396 3,484,885
Other assets 1,077,240 1,091,805
Total assets $ 209,530,246 $ 201,988,246
LIABILITIES:
Deposits
Non-interest bearing $ 78,750,774 $ 83,237,014
Interest bearing
NOW and money market 73,113,787 66,046,085
Savings 9,854,601 9,870,263
Time deposits less than $250,000 8,947,155 4,191,717
Time deposits of $250,000 or greater 5,140,705 7,674,742
Total deposits 175,807,022 171,019,821
Accrued interest payable 93,838 64,794
Borrowings from Federal Home Loan Bank (FHLB) 7,000,000 5,000,000
Accrued expenses & other payables 1,186,202 1,101,417
Subordinated notes payable to subsidiary trust 3,093,000 3,093,000
Total liabilities 187,180,062 180,279,032
SHAREHOLDERS' EQUITY
Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 1,859,132 shares at March 31, 2019 and December 31, 2018, respectively.
10,502,557 10,502,557
Retained earnings 11,876,425 11,251,915
Accumulated other comprehensive income/(loss) (28,798 ) (45,258 )
Total shareholders' equity 22,350,184 21,709,214
Total liabilities & shareholders' equity $ 209,530,246 $ 201,988,246
CHINO COMMERCIAL BANCORP
CONSOLIDATED STATEMENTS OF NET INCOME
For the three months ended
March 31
2019 2018
(unaudited) (unaudited)
Interest income
Interest and fee income on loans $ 1,951,881 $ 1,659,877
Interest on federal funds sold and FRB deposits 70,411 97,724
Interest on time deposits in banks 11,887 3,956
Interest on investment securities 266,232 140,573
Total interest income 2,300,411 1,902,130
Interest Expense
Interest on deposits 217,017 87,244
Other borrowings 49,431 89,636
Total interest expense 266,448 176,880
Net interest income 2,033,963 1,725,250
Provision for loan losses 40,000 50,000
Net interest income after provision for loan losses 1,993,963 1,675,250
Non-interest income
Service charges on deposit accounts 356,065 307,037
Other miscellaneous income 22,975 19,196
Dividend income from restricted stock 22,474 35,834
Income from bank-owned life insurance 23,512 24,453
Total non-interest income 425,026 386,520
Non-interest expenses
Salaries and employee benefits 1,010,328 868,915
Occupancy and equipment 153,132 114,656
Data and item processing 104,899 91,636
Advertising and marketing 6,318 28,586
Legal and professional fees 33,418 33,198
Regulatory assessments 29,435 33,128
Insurance 9,005 8,559
Directors' fees and expenses 33,769 30,759
Other expenses 162,978 140,986
Total non-interest expenses 1,543,282 1,350,423
Income before income tax expense 875,707 711,347
Income tax expense 251,197 202,534
Net income $ 624,510 $ 508,813
Basic earnings per share $ 0.34 $ 0.27
Diluted earnings per share $ 0.34 $ 0.27
Tax rate 28.7 % 28.5 %
CHINO COMMERCIAL BANCORP
For the three months ended
March 31
2019 2018
KEY FINANCIAL RATIOS
(unaudited)
Annualized return on average equity 11.33 % 10.27 %
Annualized return on average assets 1.24 % 1.02 %
Net interest margin 4.40 % 4.03 %
Core efficiency ratio 62.76 % 63.95 %
Net chargeoffs/(recoveries) to average loans -0.010 % -0.01 %
AVERAGE BALANCES
(thousands, unaudited)
Average assets $ 201,500 $ 199,089
Average interest-earning assets $ 187,315 $ 173,525
Average gross loans $ 136,882 $ 122,699
Average deposits $ 171,868 $ 147,053
Average equity $ 22,051 $ 19,822
CREDIT QUALITY End of period
(unaudited) March 31, 2019 December 31, 2018
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 1.73 % 1.73 %
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 10.67 % 10.75 %
Net loans to deposits 75.65 % 75.74 %
Non-interest bearing deposits to total deposits 44.79 % 48.67 %
Total capital to total risk-weighted assets 19.18 % 19.19 %
Tier 1 capital to total risk-weighted assets 21.00 % 20.93 %
Tier 1 leverage ratio 14.80 % 14.80 %
Common equity tier 1 21.00 % 20.93 %
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