Attached files
| file | filename |
|---|---|
| 8-K - Chino Commercial Bancorp | v230661_8k.htm |
|
Wednesday, July 27, 2011
Chino, CA
For Immediate Release
|
CHINO COMMERCIAL BANCORP REPORTS QUARTERLY RESULTS
Chino, California…July 27, 2011 - The Board of Directors of Chino Commercial Bancorp (OTCBB: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 second quarter ended June 30, 2011 with a net loss of $49,945, an 451.9% reduction from net income of $14,193 for the same quarter of 2010. The net loss for the most recent quarter represents ($0.07) per diluted share, as compared with earnings of $0.02 per diluted share from the same quarter last year. The Company’s profit year-to-date increased 176.4% to $153,360 or $0.20 per diluted share as compared with net earnings of $55,478 or $0.08 per diluted share for the same period last year.
Dann H. Bowman, President and Chief Executive Officer stated, “Earnings for the Bank have been relatively stable, however considerably higher provisions for possible loan losses lowered the Bank’s net profit below the same period last year. Despite these provisions we are very pleased with the Bank’s overall performance. During a time when many organizations are suffering from credit problems, we are proud to report at the end of June the Company had only three loans which were delinquent more than 30 days.”
Financial Condition
Balance sheet changes in the first half of 2011 include declines in deposits, and earning assets. Total deposits decreased by $9.4 million, or 9.1%, to $93.6 million at June 30, 2011 compared to December 31, 2010. Much of the decline was in NOW and money market balances which decreased $5.4 million or 14.9%, and time deposits which decreased $4.3 million or 19.0% in the first half of 2011. This was done by design to eliminate higher yielding deposits. The ratio of non-interest bearing deposits to total deposits increased from 40.7% at December 31, 2010 to 45.4% at June 30, 2011.
Total assets decreased from $113.9 million at December 31, 2010 to $104.6 million at June 30, 2011, an 8.2% decrease. Investment securities decreased from $16.9 million at December 31, 2010 to $14.6 million or 13.4%, gross Loans declined slightly from $60.5 million to $58.5 million, and due from banks time from $19.4 million to $12.6 million. Overall, earning assets decreased 11.4% in the six month period ended June 30, 2011.
The Company experienced loan losses totaling $259,456 in the first half of 2011, had 12 non-performing loans totaling $4.4 million, and one other real estate loan for $439,317 at June 30, 2011. Loans past due over 30 days consisted of one account totaling $277,012.
Earnings
The Company increased its provision for loan losses 9.3% or $23,250 to $250,667 for the three months ended June 30, 2011 and while reducing its provision 45.7% or $234,913 to $279,439 for the six months ended June 30, 2011. The increased provisions in 2011 were posted to maintain larger balances in the allowance for loan losses due to the deteriorated economic conditions.
The Company posted net interest income for the quarters ended June 30, 2011 and June 30, 2010 of $907,439 and $977,310, respectively. For the six months ended June 30, the Company posted net interest income of $1,926,811 and $1,930,074 for 2011 and 2010, respectively. Loan interest income decreased $136,000 or 13.1% to $902,996 for the second quarter of 2011 compared with the second quarter of 2010. The decrease in interest income from loans was $199,669, or 9.4%, comparing the first half of 2011 with 2010. For the six months ended June 30, 2011, investment income decreased $77,663 or 19.4% to $322,727 as compared to the six months ended June 30, 2010.
2
Interest expense on deposits decreased $143,153 or 59.2% comparing the quarters ended June 30, 2011 with June 30, 2010. On a year-to-date comparison, interest on deposits decreased $269,539 or 55.8% in 2011 compared to the same period in 2010. Interest from investments decreased $78,919 or 34.0% for the quarter ended June 30, 2011 compared to the same period in 2010.
Non-interest income totaled $318,062 for the three months ended June 30, 2011, or a 0.3% decrease from $318,929 earned in the second quarter of 2010. Non-interest income increased 16.1% for the six months ended June 30, 2011 to $711,113, as compared to $612,762 for the six months ended June 30, 2010. The major contributor to the increase in the six-month period was service charges on deposit accounts. The Company has not increased its per-item service charges.
General and administrative expenses were $1,056,146 and $2,137,274 for the three and six months ended June 30, 2011, respectively, as compared to $1,045,117 and $1,974,043 for the three and six months ended June 30, 2010. Occupancy and equipment expense, as well as data and item processing expenses increased due to the addition of a third branch in April 2010.. Regulatory assessments expense increased $22,363 for the quarter and $45,617 for the six months ended June 30, 2011 due to the increased assessment rates.
Legal and other professional fees increased 234.8% and 139.5% or $92,561 and $117,779, respectively, during the three and six months ended June 30, 2011 compared to the same periods in 2010 as a result of increased loan collection activity, regulatory matters, and complexity of SEC related filings.
Other expenses decreased $63,647 to $79,427 in the second quarter of 2011, and decreased $71,056 to $173,742 in the first half of 2011 due primarily to decreases in expenses charged to analysis and other lending expenses.
3
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.
4
|
CHINO COMMERCIAL BANCORP
|
|
CONSOLIDATED BALANCE SHEET
|
|
June 30, 2011 and December 31, 2010
|
|
June 30, 2011
|
December 31, 2010
|
|||||||
|
(unaudited)
|
(audited)
|
|||||||
|
ASSETS:
|
||||||||
|
Cash and due from banks
|
$ | 4,268,706 | $ | 3,041,114 | ||||
|
Federal Funds Sold
|
5,296,122 | 4,660,527 | ||||||
|
Total cash and cash equivalents
|
9,564,828 | 7,701,641 | ||||||
|
Interest-bearing deposits in other banks
|
12,586,252 | 19,378,252 | ||||||
|
Investment securities available for sale
|
3,500,663 | 4,706,994 | ||||||
|
Investment securities held to maturity (fair value approximates
|
||||||||
|
$11,366,000 at June 30, 2011 and $12,302,000 at December 31, 2010)
|
11,101,785 | 12,153,915 | ||||||
|
Total investments
|
27,188,700 | 36,239,161 | ||||||
|
Loans
|
||||||||
|
Real estate
|
49,471,602 | 51,459,881 | ||||||
|
Commercial
|
8,328,064 | 8,411,117 | ||||||
|
Installment
|
694,199 | 649,455 | ||||||
|
Gross loans
|
58,493,865 | 60,520,453 | ||||||
|
Unearned fees and discounts
|
(28,197 | ) | (27,204 | ) | ||||
|
Loans net of unearned fees and discount
|
58,465,668 | 60,493,249 | ||||||
|
Allowance for loan losses
|
(1,462,136 | ) | (1,442,153 | ) | ||||
|
Net loans
|
57,003,532 | 59,051,096 | ||||||
|
Accrued interest receivable
|
284,183 | 382,943 | ||||||
|
Restricted stock
|
667,700 | 626,250 | ||||||
|
Fixed assets, net
|
6,539,840 | 6,342,670 | ||||||
|
Foreclosed assets
|
439,317 | 516,534 | ||||||
|
Prepaid & other assets
|
2,924,020 | 3,053,531 | ||||||
|
Total assets
|
$ | 104,612,120 | $ | 113,913,826 | ||||
|
LIABILITIES:
|
||||||||
|
Deposits
|
||||||||
|
Non-interest bearing
|
$ | 42,460,394 | $ | 41,909,584 | ||||
|
Interest Bearing
|
||||||||
|
NOW and money market
|
30,835,817 | 36,241,586 | ||||||
|
Savings
|
1,853,762 | 2,085,092 | ||||||
|
Time deposits less than $100,000
|
5,357,048 | 6,377,430 | ||||||
|
Time deposits of $100,000 or greater
|
13,083,091 | 16,385,864 | ||||||
|
Total deposits
|
93,590,112 | 102,999,556 | ||||||
|
Accrued interest payable
|
76,335 | 104,967 | ||||||
|
Accrued expenses & other payables
|
677,705 | 700,046 | ||||||
|
Subordinated notes payable to subsidiary trust
|
3,093,000 | 3,093,000 | ||||||
|
Total liabilities
|
97,437,152 | 106,897,569 | ||||||
|
STOCKHOLDERS' EQUITY
|
||||||||
|
Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 748,314 shares at June 30, 2011 and at December 31, 2010.
|
2,750,285 | 2,750,285 | ||||||
|
Retained earnings
|
4,343,568 | 4,190,208 | ||||||
|
Accumulated other comprehensive income
|
81,115 | 75,764 | ||||||
|
Total stockholders' equity
|
7,174,968 | 7,016,257 | ||||||
|
Total liabilities & stockholders' equity
|
$ | 104,612,120 | $ | 113,913,826 | ||||
5
|
CHINO COMMERCIAL BANCORP
|
|||||||
|
CONSOLIDATED STATEMENTS OF INCOME
|
|||||||
|
(unaudited)
|
|
For the three months ended
|
For the six months ended
|
|||||||||||||||
|
June 30,
|
June 30,
|
|||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||
|
Interest income
|
||||||||||||||||
|
Investment securities and due from banks
|
$ | 152,879 | $ | 231,798 | $ | 322,727 | $ | 400,390 | ||||||||
|
Interest on Federal funds sold
|
1,431 | 0 | 4,036 | 0 | ||||||||||||
|
Interest and fee income on loans
|
902,996 | 1,038,996 | 1,915,774 | 2,115,443 | ||||||||||||
|
Total interest income
|
1,057,306 | 1,270,794 | 2,242,537 | 2,515,833 | ||||||||||||
|
Interest expense
|
||||||||||||||||
|
Deposits
|
98,829 | 241,982 | 213,726 | 483,265 | ||||||||||||
|
Interest on Federal funds purchased
|
0 | 18 | 0 | 18 | ||||||||||||
|
Interest on FHLB borrowings
|
75 | 521 | 75 | 551 | ||||||||||||
|
Other borrowings
|
50,963 | 50,963 | 101,925 | 101,925 | ||||||||||||
|
Total interest expense
|
149,867 | 293,484 | 315,726 | 585,759 | ||||||||||||
|
Net interest income
|
907,439 | 977,310 | 1,926,811 | 1,930,074 | ||||||||||||
|
Provision for loan losses
|
273,917 | 250,667 | 279,439 | 514,352 | ||||||||||||
|
Net interest income after
|
||||||||||||||||
|
provision for loan losses
|
633,522 | 726,643 | 1,647,372 | 1,415,722 | ||||||||||||
|
Non-interest income
|
||||||||||||||||
|
Service charges on deposit accounts
|
289,420 | 294,500 | 594,076 | 562,140 | ||||||||||||
|
Gain on sale of foreclosed assets
|
0 | 0 | 61,151 | 149 | ||||||||||||
|
Other miscellaneous income
|
8,257 | 8,742 | 15,506 | 14,675 | ||||||||||||
|
Dividend income from restricted stock
|
2,789 | (1,679 | ) | 5,559 | 1,457 | |||||||||||
|
Income from bank-owned life insurance
|
17,596 | 17,366 | 34,821 | 34,341 | ||||||||||||
|
Total non-interest income
|
318,062 | 318,929 | 711,113 | 612,762 | ||||||||||||
|
General and administrative expenses
|
||||||||||||||||
|
Salaries and employee benefits
|
520,894 | 570,428 | 1,108,294 | 1,094,450 | ||||||||||||
|
Occupancy and equipment
|
112,221 | 105,622 | 226,802 | 191,470 | ||||||||||||
|
Data and item processing
|
94,213 | 91,800 | 191,185 | 171,840 | ||||||||||||
|
Advertising and marketing
|
11,083 | 15,063 | 27,236 | 28,881 | ||||||||||||
|
Legal and professional fees
|
131,989 | 39,428 | 202,223 | 84,444 | ||||||||||||
|
Regulatory assessments
|
75,920 | 53,557 | 151,367 | 105,750 | ||||||||||||
|
Insurance
|
9,224 | 9,050 | 19,649 | 17,992 | ||||||||||||
|
Directors' fees and expenses
|
21,175 | 17,095 | 36,776 | 34,418 | ||||||||||||
|
Other expenses
|
79,427 | 143,074 | 173,742 | 244,798 | ||||||||||||
|
Total general & administrative expenses
|
1,056,146 | 1,045,117 | 2,137,274 | 1,974,043 | ||||||||||||
|
Income before income tax expense
|
(104,562 | ) | 455 | 221,211 | 54,441 | |||||||||||
|
Income tax expense
|
(54,617 | ) | (13,738 | ) | 67,851 | (1,037 | ) | |||||||||
|
Net income
|
$ | (49,945 | ) | $ | 14,193 | $ | 153,360 | $ | 55,478 | |||||||
|
Basic earnings per share
|
$ | (0.07 | ) | $ | 0.02 | $ | 0.20 | $ | 0.08 | |||||||
|
Diluted earnings per share
|
$ | (0.07 | ) | $ | 0.02 | $ | 0.20 | $ | 0.08 | |||||||
6
CHINO COMMERCIAL BANCORP
Other Financial Information
|
CREDIT QUALITY
|
End of period
|
|||||||
|
(unaudited)
|
June 30, 2011
|
December 31, 2010
|
||||||
|
Non-performing loans
|
$ | 4,416,122 | $ | 4,167,573 | ||||
|
Non-performing loans to total loans
|
7.55 | % | 6.89 | % | ||||
|
Non-performing loans to total assets
|
4.22 | % | 3.66 | % | ||||
|
Allowance for loan losses to loans
|
2.50 | % | 2.38 | % | ||||
|
OTHER PERIOD-END STATISTICS
|
||||||||
|
(unaudited)
|
June 30, 2011
|
December 31, 2010
|
||||||
|
Shareholders equity to total assets
|
6.86 | % | 6.16 | % | ||||
|
Loans to deposits
|
62.50 | % | 58.76 | % | ||||
|
Non-interest bearing deposits to total deposits
|
45.37 | % | 40.69 | % | ||||
|
For the three months ended
|
For the six months ended
|
|||||||||||||||
|
June 30
|
June 30
|
|||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||
|
KEY FINANCIAL RATIOS
|
||||||||||||||||
|
(unaudited)
|
||||||||||||||||
|
Annualized return on average equity
|
-2.85 | % | 0.88 | % | 2.18 | % | 1.73 | % | ||||||||
|
Annualized return on average assets
|
-0.19 | % | 0.05 | % | 0.28 | % | 0.10 | % | ||||||||
|
Net interest margin
|
4.00 | % | 3.88 | % | 4.09 | % | 3.94 | % | ||||||||
|
Core efficiency ratio
|
90.71 | % | 80.63 | % | 90.62 | % | 97.32 | % | ||||||||
|
Net chargeoffs to average loans
|
0.44 | % | 0.55 | % | 0.43 | % | 0.78 | % | ||||||||
|
AVERAGE BALANCES
|
||||||||||||||||
|
(thousands, unaudited)
|
||||||||||||||||
|
Average assets
|
$ | 104,653 | $ | 113,841 | $ | 108,905 | $ | 112,431 | ||||||||
|
Average interest-earning assets
|
$ | 91,075 | $ | 100,976 | $ | 94,891 | $ | 98,752 | ||||||||
|
Average gross loans
|
$ | 59,336 | $ | 60,816 | $ | 59,804 | $ | 61,149 | ||||||||
|
Average deposits
|
$ | 93,109 | $ | 102,492 | $ | 97,597 | $ | 100,903 | ||||||||
|
Average equity
|
$ | 7,007 | $ | 6,452 | $ | 7,047 | $ | 6,430 | ||||||||
7