Chino Commercial Bancorp Reports 59% Increase In Profits

CHINO, Calif., Jan. 22, 2014 /PRNewswire/ -- The Board of Directors of Chino Commercial Bancorp (OTC BB: CCBC), 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, 2013. For the full year ended December 31, 2013 the company posted a consolidated net income of $940,727, an increase of 59.5% over net income of $589,766 for the year ended December 31, 2012. Net income for the quarter ended December 31, 2013 increased 174.6% to $295,970 from $107,796 for quarter ended December 31, 2012. Net income per basic share and fully diluted share was $1.13 for the year ended December 31, 2013, a 54.8% increase over $0.73 per share for the year ended December 31, 2012. Earnings per basic share and diluted share for the fourth quarter ended December 31, 2013 were $0.36 as compared to $0.13 for the fourth quarter of 2012.

Dann H. Bowman, President and Chief Executive Officer stated, "We are very pleased with the continued growth and profitability of the Bank as the national and local economies improve.  The Company's net earnings for fiscal year 2013 were up 59% over the previous year, representing a return on beginning equity of 10.78%.  Deposit and Loan balances increased during the year by 7.28% and 3.87% respectively, allowing the Bank to show improved stability of earnings and efficiency.  In addition to the growth, at fiscal year end the Bank reported no OREO, no loan delinquencies and no loan losses for the entire year."

Financial Condition

Non-interest bearing deposits increased 15.9% to $56.6 million at December 31, 2013 from $48.8 million at December 31, 2012. Total deposits at December 31, 2013 totaled $109.6 million, an increase of 7.3% from $102.2 million at December 31, 2012. Core deposits increased 10.3%, to $101.2 million at December 31, 2013 from $91.7 million at December 31, 2012. The Bank's core deposits to total deposits increased to a very favorable 92.3% of total deposits at December 31, 2013 from 89.8% at December 31, 2012.

At December 31, 2013, total assets were $123.1 million, an increase of $8.5 million or 7.4% from 114.6 million at December 31, 2012.

Gross loans increased to $64.4 million at December 31, 2013 from $62.0 million at December 31, 2012, or an increase of 3.9%, and total investments and Federal funds sold increased to $45.4 million from $41.4 million at December 31, 2012, a 9.5% increase.

The level of "non-performing" loans decreased during the year to one loan at $207,942 at December 31, 2013, from six loans totaling $1.2 million at December 31, 2012 or an 82.9% decrease. At year-end this non-performing loan was current on its scheduled payments. At year-end the Bank had only two overdrafts which were more than 30 days delinquent for $29.50.

The level of net loan charge-offs decreased during the year to a net recovery of $57,442 in 2013 from net loss $219,438 in 2012, or a difference of $276,880. Net loan loss (recovery) as a percent of gross loans was (0.09%) and 0.35% for years ended December 31, 2013 and 2012, respectively. It is important to note, however, that the charge-offs taken in 2013 of $79,503 and in 2012 of $287,366, were charge-offs against loans that were paying as agreed.

Earnings

The Company posted net interest income of $4,092,972 for the year ended December 31, 2013 as compared to $3,654,006 for the year ended December 31, 2012. Average interest-earning assets were $105.3 million with average interest-bearing liabilities of $53.4 million yielding a net interest margin of 3.89% for the year ended December 31, 2013; as compared to average interest-earning assets of $98.2 million with average interest-bearing liabilities of $53.9 million, yielding a net interest margin of 3.73% for the year ended December 31, 2012.

The Bank posted net interest income of $1,084,011 for the three months ended December 31, 2013 as compared to $956,008 for the three months ended December 31, 2012. Average interest-earning assets were $106.8 million with average interest-bearing liabilities of $51.3 million, yielding a net interest margin of 4.03% for the fourth quarter of 2013; as compared to average interest-earning assets of $104.6 million with average interest-bearing liabilities of $57.5 million, yielding a net interest margin of 3.64% for the three months ended December 31, 2012.

Non-interest income totaled $1,497,094, or an increase of 16.5% from $1,436,537, earned in the year ended December 31, 2012. Service charges on deposit accounts increased $148,465 or 12.9% to $1,299,094 in 2013 due the reversal of $21,943 of collected income from customers with loans on non-accrual status. Gain on sale of foreclosed assets was $61,151 for the year ended December 31, 2012 while in 2013, the Bank had no foreclosed assets and therefore no gain.

Non-interest income for the quarter ended December 31, 2013 totaled $390,854 or a 16.5% increase from the fourth quarter of 2012. The increase is due mainly to the recognition in income from customers with loans on non-accrual, while in 2012 no income was recognized.

General and administrative expenses were $998,524 for the three months ended December 31, 2013 or a decrease of 1.0% as compared to $1,008,824 for the three months ended December 31, 2012. General and administrative expenses were $4,082,038 for the year ended December 31, 2013 as compared to $4,045,169 for the year ended December 31, 2012. The largest component of general and administrative expenses was salary and benefits expense which totaled $550,243 for the three months ended December 31, 2013 as compared to $545,229 for the three months ended December 31, 2012. Salary and benefits expense were $2,231,308 for the year ended December 31, 2013 as compared to $2,178,453 for the year ended December 31, 2012.

The consolidated Company's income tax expense was $181,266 for the three months ended December 31, 2013 as compared to $56,592 for the three months ended December 31, 2012. Income tax expenses were $566,545 for the year ended December 31, 2013 as compared to $335,336 for the year ended December 31, 2012. The effective income tax rate for 2013 and 2012 was approximately 37.6% and 36.2%, 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 detailed in the Company's SEC filings.

SOURCE Chino Commercial Bancorp