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8-K - FORM 8-K - Chino Commercial Bancorpccb8k02092011.htm

 

Exhibit 99.1

For Immediate Release

February 3, 2011

OTC BB: “CCBC”

 

 

CHINO COMMERCIAL BANCORP REPORTS YEAR END RESULTS.

 

Chino, California… The Board of Directors of Chino Commercial Bancorp, the parent company of Chino Commercial Bank NA, announced the results of operations for the Bank and the consolidated holding company for the three and twelve months ended December 31, 2010. For the full year ended December 31, 2010 the company posted a consolidated net income of $305,301, a decrease of 12.9% from net income of $350,671 for 2009. Net income for the quarter ended December 31, 2010 decreased 11.2% to $55,781 from $62,793 for quarter ended December 31, 2009. Net income per basic share for the year ended December 31, 2010 was $0.42, a 16.0% decrease from $0.50 per share for the year ended December 31, 2009. Net income per fully diluted share for fiscal year 2010 was $0.42 a 12.5% decrease from $0.48 per diluted share for fiscal year 2009. Similarly, earnings per diluted share for the fourth quarter ended December 31, 2010 were $0.07, as compared to $0.08 per diluted share for the fourth quarter of 2009.

 Dann H. Bowman, President and Chief Executive Officer stated, “2010 was an exciting year for the Bank, with the opening of a new branch office in Rancho Cucamonga, and the purchased of a new headquarters building in Chino. Net earnings remained relatively strong during the year, with the Bank posting positive earnings each quarter. Recently, a number of loans were downgraded; however, at year-end the Bank had only one delinquent loan.”

Financial Condition

Total deposits increased by 11.6% to $103.0 million at December 31, 2010 a substantial increase from $92.3 million at December 31, 2009. Core deposits increased 15.9%, from $74.7 million at December 31, 2009 to $86.6 million at December 31, 2010. The Bank’s core deposits to total deposits remains at a very favorable 84.1%.

At December 31, 2010, total assets were $113.9 million, an increase of $10.4 million or 10.0% from December 31, 2009.

Gross loans declined slightly to $60.5 million at December 31, 2010 from $61.4 million at December 31, 2009, or a decrease of 1.4%, while total investments increased to $40.8 million from $33.3 million at December 31, 2009, a 22.7% increase.

The level of “non-performing” loans increased during the year from $1,493,919 to $4,167,573 or 6.86% of ending loans. Many of these loans have been graded as non-performing based on information contained in the borrower’s income tax returns. At year-end all of the non-performing loans except one, were current on their scheduled payments. At year-end the Bank had only one loan which was more than 30 days delinquent for $440,723.

            The level of loan charge-offs increased during the year from $205,387 in 2009 to $616,842 in 2010, or an increase of $411,455. It is important to note however, that of the charge-offs taken in 2010 $444,656 were charge-offs against loans that were paying as agreed. In many cases these charge-offs were taken to reflect reduced real estate collateral values.

 


 

 

Earnings

The Company posted net interest income of $3,892,775 for the year ended December 31, 2010 as compared to $3,725,014 for the year ended December 31, 2009. Average interest-earning assets were $100.2 million with average interest-bearing liabilities of $65.2 million yielding a net interest margin of 3.89% for the year ended December 31, 2010 as compared to average interest-bearing assets of $84.5 million with average interest-bearing liabilities of $51.4 million yielding a net interest margin of 4.41% for the year ended December 31, 2009. The 52 basis points decrease in the net interest margin was primarily the effect of downward re-pricing of the benchmark for Federal funds rate and related Prime rate.

The Bank posted net interest income of $957,354 for the three months ended December 31, 2010 as compared to $992,405 for the three months ended December 31, 2009. Average interest-earning assets were $99.6 million with average interest-bearing liabilities of $64.4 million yielding a net interest margin of 36.81% for the fourth quarter of 2010 as compared to average interest-bearing assets of $58.6 million with average interest-bearing liabilities of $58.6 million yielding a net interest margin of 4.23% for the three months ended December 31, 2009.

Non-interest income totaled $1,450,738, or an increase of 34.6% from $1, 077,558 earned during the year ended December 31, 2009. Service charges on deposit accounts increased $181,353, or 18.4% to $1,166,555 due to higher volume of returned items activity. Other miscellaneous income increased from $15,537 in 2009 to $207,499 for the year ended December 31, 2010 due to gain on sale of foreclosed equipment totaling $127,840 and a gain on sale of OREO netting at $51,700 for the year ended December 31, 2010

Non-interest income for the quarter ended December 31, 2010 totaled $412,987 or a 36.7% increase from the fourth quarter of 2009. Service charges on deposit accounts similarly increased 8.4% to $304,249 due to increase in the volume of overdraft and return item charges.

            General and administrative expenses were $1,059,485 for the three months ended December 31, 2010 or an increase of 23.2% as compared to $860,294 for the three months ended December 31, 2009. General and administrative expenses were $4,138,816 for the year ended December 31, 2010 as compared to $3,506,534 for the year ended December 31, 2009. The largest component of general and administrative expenses was salary and benefits expense which totaled $555,760 for the three months ended December 31, 2010 as compared to $516,093 for the three months ended December 31, 2009. Salary and benefits expense were $2,193,710 for the year ended December 31, 2010 as compared to $1,899,192 for the year ended December 31, 2009. The increase in Salaries and benefits expenses for the year was reflective of an increase in staff due to addition of a third branch located in Rancho Cucamonga.

            The consolidated Company’s income tax expense was $15,319 for the three months ended December 31, 2010 as compared to $24,040 for the three months ended December 31, 2009. Income tax expenses were $129,644 for the year ended December 31, 2010 as compared to $166,319 for the year ended December 31, 2009. The effective income tax rate for 2010 and 2009 was approximately 30% and 32%, respectively.

 

 


 

 

Headquarters Relocation

            On January 10, 2011 Chino Commercial Bank and Chino Commercial Bancorp relocated their respective headquarters from 14345 Pipeline Avenue, Chino, CA to 14245 Pipeline Avenue, Chino, CA. The move was as a result of the purchase of the new headquarters building.

 

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 detailed in the Company’s SEC filings.

Contact: Dann H. Bowman, President and CEO or Sandra F. Pender, Senior Vice President and CFO, Chino Commercial Bank, N.A., 14245 Pipeline Avenue, Chino, Ca. 91710, (909) 393-8880.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

CHINO COMMERCIAL BANCORP

CONSOLIDATED BALANCE SHEET

December 31, 2010 and December 31, 2009

 

 

December 31, 2010

 

December 31, 2009

 

(unaudited)

 

(audited)

ASSETS:

 

 

 

Cash and due from banks

$

3,041,114

$

3,089,300

Federal Funds Sold

50,010

 

0

Total cash and cash items

3,091,124

 

3,089,300

 

 

 

 

Interest-bearing deposits in other banks

23,988,769

 

25,433,602

Investment securities available for sale

4,706,994

 

5,567,855

Investment securities held to maturity (fair value approximates

 

 

 

$12,302,000 at December 31, 2010 and $2,332,000 at December 31, 2009)

12,153,915

 

2,291,962

Total investments

40,849,678

 

33,293,419

Loans

 

 

 

Real estate

51,471,179

 

50,931,354

Commercial

8,411,117

 

9,621,310

Installment

638,157

 

855,564

Gross loans

60,520,453

 

61,408,228

Unearned fees and discounts

(27,204

)

 

(17,887

)

Loans net of unearned fees and discount

60,493,249

 

61,390,341

Allowance for loan losses

(1,442,153

)

 

(1,277,526

)

 Net loans

59,051,096

 

60,112,815

 

 

 

 

Accrued interest receivable

382,943

 

326,206

Restricted stock

626,250

 

677,650

Fixed assets, net

6,342,670

 

3,100,183

Other real estate owned

516,534

 

24,861

Prepaid & other assets

3,072,683

 

2,956,242

Total assets

$

113,932,978

$

103,580,676

 

 

 

 

LIABILITIES:

 

 

 

Deposits

 

 

 

Non-interest bearing

$

41,909,584

$

35,872,495

Interest Bearing

 

 

 

NOW and money market

36,241,586

 

31,148,654

Savings

2,085,092

 

1,003,290

Time deposits less than $100,000

6,377,430

 

6,722,558

Time deposits of $100,000 or greater

16,385,864

 

17,541,461

Total deposits

102,999,556

 

92,288,458

 

 

 

 

Accrued interest payable

104,967

 

125,823

Borrowings from Federal Home Loan Bank (FHLB)

0

 

994,000

Accrued expenses & other payables

700,046

 

612,667

Subordinated notes payable to subsidiary trust

3,093,000

 

3,093,000

Total liabilities

106,897,569

 

97,113,948

STOCKHOLDERS' EQUITY

 

 

 

Common stock, authorized 10,000,000 shares with no par value, issued

 

 

 

and outstanding 749,760 shares and 699,061 shares at December 31,

 

 

 

2010 and December 31, 2009, respectively.

2,769,437

 

2,498,664

Retained earnings

4,190,207

 

3,884,907

Accumulated other comprehensive income

75,765

 

83,157

Total stockholders' equity

7,035,409

 

6,466,728

Total liabilities & stockholders' equity

$

113,932,978

$

103,580,676

 

 

 

 

 

 

 

 

 

 

 


 

 

CHINO COMMERCIAL BANCORP

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the year ended

 

 

December 31

 

December 31

 

 

2010

 

2009

 

2010

 

2009

 

Interest income

 

 

 

 

 

 

 

 

Investment securities and due from banks

 $      183,745

 

 $      180,119

 

 $      803,075

 

 $      783,094

 

Interest on Federal funds sold

10

 

0

 

10

 

102

 

Interest and fee income on loans

1,013,777

 

1,104,535

 

4,185,291

 

4,093,537

 

Total interest income

1,197,532

 

1,284,654

 

4,988,376

 

4,876,733

 

Interest expense

 

 

 

 

 

 

 

 

Deposits

189,210

 

241,253

 

891,176

 

947,017

 

Other borrowings

50,968

 

50,996

 

204,425

 

204,702

 

Total interest expense

240,178

 

292,249

 

1,095,601

 

1,151,719

 

Net interest income

957,354

 

992,405

 

3,892,775

 

3,725,014

 

Provision for loan losses

239,756

 

347,343

 

769,752

 

779,048

 

Net interest income after

 

 

 

 

 

 

 

 

provision for loan losses

717,598

 

645,062

 

3,123,023

 

2,945,966

 

Non-interest income

 

 

 

 

 

 

 

 

Service charges on deposit accounts

304,249

 

280,645

 

1,166,555

 

985,202

 

Other miscellaneous income

88,281

 

1,594

 

207,499

 

15,537

 

Dividend income from restricted stock

2,892

 

2,825

 

7,310

 

9,430

 

Income from bank-owned life insurance

17,565

 

17,011

 

69,374

 

67,389

 

Total non-interest income

412,987

 

302,075

 

1,450,738

 

1,077,558

 

General and administrative expenses

 

 

 

 

 

 

 

 

Salaries and employee benefits

555,760

 

516,093

 

2,193,710

 

1,899,192

 

Occupancy and equipment

120,825

 

80,332

 

436,964

 

322,854

 

Data and item processing

92,287

 

67,826

 

355,520

 

286,726

 

Advertising and marketing

39,626

 

14,538

 

63,119

 

64,107

 

Legal and professional fees

67,365

 

43,992

 

280,918

 

181,892

 

Regulatory assessments

60,361

 

52,982

 

222,599

 

220,652

 

Insurance

10,047

 

8,595

 

37,997

 

32,135

 

Directors' fees and expenses

16,518

 

17,516

 

67,477

 

72,136

 

Other expenses

96,696

 

58,420

 

480,512

 

426,840

 

Total general & administrative expenses

1,059,485

 

860,294

 

4,138,816

 

3,506,534

 

Income before income tax expense

71,100

 

86,843

 

434,945

 

516,990

 

Income tax expense

15,319

 

24,050

 

129,644

 

166,319

 

Net income

 $        55,781

 

 $        62,793

 

 $      305,301

 

 $      350,671

 

Basic earnings per share 

 $            0.07

 

 $            0.09

 

 $            0.42

 

 $            0.50

 

Diluted earnings per share

 $            0.07

 

 $            0.08

 

 $            0.42

 

 $            0.48

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

CHINO COMMERCIAL BANCORP

Other Financial Information

 

 

 

 

CREDIT QUALITY

End of period

(unaudited)

December 31, 2010

 

December 31, 2009

Non-performing loans

 $               4,167,573

 

 $               1,493,919

Non-performing loans to total loans

6.89%

 

2.43%

Non-performing loans to total assets

3.66%

 

1.44%

Allowance for loan losses to gross loans

2.38%

 

2.08%

 

 

 

 

OTHER PERIOD-END STATISTICS

 

 

 

(unaudited)

December 31, 2010

 

December 31, 2009

Shareholders equity to total assets

6.18%

 

6.24%

Loans to deposits

58.76%

 

66.54%

Non-interest bearing deposits to total deposits

40.69%

 

38.87%

 

 

 

 

 

 

For the three months ended

 

For the year ended

 

December 31

 

December 31

 

2010

 

2009

 

2010

 

2009

KEY FINANCIAL RATIOS

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

Return on average equity

3.30%

 

4.08%

 

4.61%

 

5.67%

Return on average assets

0.20%

 

0.24%

 

0.27%

 

0.37%

Net interest margin

3.81%

 

4.23%

 

3.89%

 

4.42%

efficiency ratio

77.32%

 

66.46%

 

77.45%

 

73.01%

Net chargeoffs to average loans

0.18%

 

0.32%

 

1.00%

 

0.36%

 

 

 

 

 

 

 

 

AVERAGE BALANCES

 

 

 

 

 

 

 

(thousands, unaudited)

 

 

 

 

 

 

 

Average assets

 $    114,296

 

 $    103,811

 

 $    114,292

 

 $      94,489

Average interest-earning assets

 $      99,566

 

 $      93,160

 

 $    100,173

 

 $      84,513

Average gross loans

 $      59,900

 

 $      61,729

 

 $      60,679

 

 $      56,450

Average deposits

 $    103,195

 

 $      93,342

 

 $    102,776

 

 $      83,764

Average equity

 $        6,770

 

 $        6,172

 

 $        6,630

 

 $        6,193