CHINO, Calif., Jan. 19, 2015 /PRNewswire/ -- The Board of Directors of Chino Commercial Bancorp ("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, 2014. For the full year ended December 31, 2014 the company posted a consolidated net income of $1,139,773, an increase of 21.2% over net income of $940,728 for the year ended December 31, 2013. Net income for the quarter ended December 31, 2014 decreased 11.5% to $261,887 from $295,970 for quarter ended December 31, 2013. Net income per basic share and fully diluted share was $1.30 for the year ended December 31, 2014, a 21.2% increase over $1.13 per share for the year ended December 31, 2013. Earnings per basic share and diluted share for the fourth quarter ended December 31, 2014 were $0.30 as compared to $0.36 for the fourth quarter of 2013.
Dann H. Bowman, President and Chief Executive Officer stated, "We are very pleased with the performance of the Bank in 2014. This year the Bank set new records for earnings, earnings per share, total deposits and total loans. The Company's net earnings for fiscal year 2014 were up 21% over the previous year, representing a return on beginning equity of 11.8%. Deposit and Loan balances increased during the year by 5.3% and 29.7% 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, and only one delinquent loan."
Financial Condition
Non-interest bearing deposits increased 14.3% to $64.7 million at December 31, 2014 from $56.6 million at December 31, 2013. Total deposits at December 31, 2014 totaled $115.4 million, an increase of 5.3% from $109.6 million at December 31, 2013. Core deposits increased 7.5% to $108.8 million at December 31, 2014 from $101.2 million at December 31, 2013. The Bank's core deposits to total deposits increased to a very favorable 94.3% of total deposits at December 31, 2014 from 92.3% at December 31, 2013.
At December 31, 2014, total assets were $130.1 million, an increase of $7.0 million or 5.7% from $123.1 million at December 31, 2013.
Gross loans increased to $83.5 million at December 31, 2014 from $64.4 million at December 31, 2013, or an increase of 29.7%, and total investments increased to $32.1 million from $24.0 million at December 31, 2013, a 33.7% increase.
The level of "non-performing" loans decreased during the year to $0 at December 31, 2014, from one loan totaling $207,942 at December 31, 2013 or a 100% decrease. At year-end the Bank had only one overdrawn account which was more than 30 days delinquent for $285.63.
The company continued to experience net loan recoveries amounting to $163,738 in 2014 as compared with a net recovery of $57,442 in 2013, or an increase in recoveries of $106,296. Net loan loss (recovery) as a percent of gross loans was (0.20%) and (0.09%) for the years ended December 31, 2014 and 2013, respectively.
Earnings
The Company posted net interest income of $4,258,257 for the year ended December 31, 2014, as compared to $4,092,971 for the year ended December 31, 2013. Average interest-earning assets were $112.4 million with average interest-bearing liabilities of $51.6 million, yielding a net interest margin of 3.79% for the year ended December 31, 2013; as compared to average interest-earning assets of $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.
The Bank posted net interest income of $1,170,794 for the three months ended December 31, 2014 as compared to $1,084,011 for the three months ended December 31, 2013. Average interest-earning assets were $115.1 million with average interest-bearing liabilities of $52.6 million, yielding a net interest margin of 4.03% for the fourth quarter of 2014; as compared to average interest-earning assets of $106.8 million with average interest-bearing liabilities of $50.6 million, yielding a net interest margin of 4.03% for the three months ended December 31, 2013.
Non-interest income totaled $1,605,099, or an increase of 7.2% from $1,497,094, earned in the year ended December 31, 2013. Service charges on deposit accounts increased $44,399 or 3.4% to $1,344,099 in 2014.
Non-interest income for the quarter ended December 31, 2014 totaled $367,964 or a 5.9% decrease from the fourth quarter of 2013.
General and administrative expenses were $1,114,531 for the three months ended December 31, 2014 or an increase of 11.6% as compared to $998,524 for the three months ended December 31, 2013. General and administrative expenses were $4,153,316 for the year ended December 31, 2014 as compared to $4,082,037 for the year ended December 31, 2013. The largest component of general and administrative expenses was salary and benefits expense, which totaled $665,516 for the three months, ended December 31, 2014 as compared to $550,243 for the three months ended December 31, 2013. Salary and benefits expense were $2,398,764 for the year ended December 31, 2014 as compared to $2,231,308 for the year ended December 31, 2013.
The consolidated Company's income tax expense was $157,743 for the three months ended December 31, 2014 as compared to $181,266 for the three months ended December 31, 2013. Income tax expenses were $694,759 for the year ended December 31, 2014 as compared to $566,545 for the year ended December 31, 2013. The effective income tax rate for 2014 and 2013 was approximately 37.9% and 37.6%, 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.
CHINO COMMERCIAL BANCORP
CONSOLIDATED BALANCE SHEET
December 31, 2014 and December 31, 2013
December 31, 2014 December 31, 2013
----------------- -----------------
(unaudited) (audited)
ASSETS:
Cash and due from banks $5,529,963 $25,538,999
Federal funds sold - 50,773
--- ------
Total cash and cash
equivalents 5,529,963 25,589,772
--------- ----------
Interest-bearing deposits in
other banks 19,048,000 18,990,000
Investment securities
available for sale 1,637,579 1,887,251
Investment securities held to maturity (fair value approximates
$11,493,000 at December 31, 2014 and $3,195,000 at December 31, 2013)
11,370,814 3,095,803
Total investments 32,056,393 23,973,054
---------- ----------
Loans
Construction 613,802 -
Real estate 65,070,148 49,370,422
Commercial 17,437,492 14,675,131
Installment 339,520 313,144
------- -------
Gross loans 83,460,962 64,358,697
Unearned fees and discounts (211,141) (98,360)
-------- -------
Loans net of unearned fees and
discount 83,249,821 64,260,337
Allowance for loan losses (1,536,241) (1,496,995)
Net loans 81,713,580 62,763,342
---------- ----------
Accrued interest receivable 312,508 270,106
Restricted stock 716,700 605,400
Fixed assets, net 5,971,324 6,140,958
Foreclosed assets 0 0
Prepaid & other assets 3,832,260 3,783,159
Total assets $130,132,728 $123,125,791
============ ============
LIABILITIES:
Deposits
Non-interest bearing $64,657,125 $56,565,703
Interest bearing
NOW and money market 35,665,321 36,984,851
Savings 4,119,507 2,937,076
Time deposits less than
$100,000 4,367,455 4,700,243
Time deposits of $100,000 or
greater 6,631,526 8,415,988
--------- ---------
Total deposits 115,440,934 109,603,861
Accrued interest payable 26,066 28,367
Accrued expenses & other
payables 772,135 724,120
Subordinated notes payable to
subsidiary trust 3,093,000 3,093,000
Total liabilities 119,332,135 113,449,348
----------- -----------
SHAREHOLDERS' EQUITY
Common stock, authorized 10,000,000 shares
with no par value, issued and outstanding
916,550 shares at December 31, 2014 and
833,280 shares at December 31, 2013.
4,579,730 3,463,912
Retained earnings 6,185,281 6,162,103
Common stock distributable 0 0
Accumulated other
comprehensive income 35,582 50,428
Total shareholders' equity 10,800,593 9,676,443
---------- ---------
Total liabilities &
shareholders' equity $130,132,728 $123,125,791
============ ============
CHINO COMMERCIAL BANCORP
CONSOLIDATED STATEMENTS OF NET INCOME
(unaudited)
For the three months ended For the year ended
December 31 December 31
2014 2013 2014 2013
---- ---- ---- ----
Interest income
Investment
securities and due
from banks $121,569 $80,930 $453,482 $320,207
Interest on Federal
funds sold 29 32 125 130
Interest and fee
income on loans 1,119,762 1,074,190 4,084,997 4,081,506
Total interest
income 1,241,360 1,155,152 4,538,604 4,401,843
--------- --------- --------- ---------
Interest expense
Deposits 55,204 56,326 221,418 249,378
Other interest
expense 687 - 687 -
Other borrowings 14,675 14,815 58,243 59,493
Total interest
expense 70,566 71,141 280,348 308,871
------ ------ ------- -------
Net interest income 1,170,794 1,084,011 4,258,257 4,092,972
Provision for loan
losses 4,597 (895) (124,492) 756
----- ---- -------- ---
Net interest income after
provision for loan losses
1,166,197 1,084,906 4,382,749 4,092,216
--------- --------- --------- ---------
Non-interest income
Service charges on
deposit accounts 312,524 338,529 1,344,099 1,299,700
Other miscellaneous
income 19,171 17,891 108,344 73,874
Dividend income from
restricted stock 9,882 8,035 48,339 34,348
Income from bank-
owned life
insurance 26,387 26,399 104,317 89,172
Total non-interest
income 367,964 390,854 1,605,099 1,497,094
------- ------- --------- ---------
Non-interest expenses
Salaries and
employee benefits 665,516 550,243 2,398,764 2,231,308
Occupancy and
equipment 123,112 103,561 438,251 412,043
Data and item
processing 94,191 108,744 382,762 408,109
Advertising and
marketing 30,129 20,493 100,168 69,554
Legal and
professional fees 52,425 44,238 216,542 215,411
Regulatory
assessments 20,446 39,643 108,325 218,269
Insurance 8,431 8,509 33,705 44,150
Directors' fees and
expenses 27,456 27,795 109,925 112,117
Other expenses 92,825 95,298 364,874 371,076
Total non-interest
expenses 1,114,531 998,524 4,153,316 4,082,037
--------- ------- --------- ---------
Income before income
tax expense 419,630 477,236 1,834,532 1,507,273
Income tax expense 157,743 181,266 694,759 566,545
Net income $261,887 $295,970 $1,139,773 $940,728
Basic earnings per
share $0.30 $0.36 $1.30 $1.13
===== ===== ===== =====
Diluted earnings per
share $0.30 $0.36 $1.30 $1.13
===== ===== ===== =====
CHINO COMMERCIAL BANCORP
Other Financial Information
(unaudited)
CREDIT
QUALITY End of period
(unaudited) December 31, 2014 December 31, 2013
Non-
performing
loans $0 $207,942
=== ========
Non-
performing
loans
to
total
loans 0.00% 0.32%
Non-
performing
loans
to
total
assets 0.00% 0.17%
Allowance
for
loan
losses
to
total
loans 1.84% 2.33%
Nonperforming
assets
as a
percentage
of
total
loans
and
OREO 0.00% 0.32%
Allowance
for
loan
losses
to
non-
performing
loans n/a 719.91%
OTHER PERIOD-END STATISTICS
(unaudited) December 31, 2014 December 31, 2013
----------------- -----------------
Shareholders
equity
to
total
assets 8.30% 7.86%
Net
Loans
to
deposits 70.78% 57.26%
Non-
interest
bearing
deposits
to
total
deposits 56.01% 51.61%
Total
capital
to
total
risk-
weighted
assets 16.72% 18.18%
Tier
1
capital
to
total
risk-
weighted
assets 16.02% 17.08%
Tier
1
leverage
ratio 11.18% 10.69%
For the three months ended For the year ended
December 31 December 31
2014 2013 2014 2013
---- ---- ---- ----
KEY
FINANCIAL
RATIOS
(unaudited)
Annualized
return
on
average
equity 9.80% 12.47% 22.28% 20.55%
Annualized
return
on
average
assets 0.82% 0.99% 1.82% 1.59%
Net
interest
margin 4.03% 4.03% 3.79% 3.89%
Core
efficiency
ratio 72.43% 67.70% 70.84% 73.02%
Net
chargeoffs
to
average
loans -0.01% -0.01% -0.24% -0.03%
AVERAGE
BALANCES
(thousands,
unaudited)
Average
assets $128,349 $119,929 $125,437 $118,138
Average
interest-
earning
assets $115,132 $106,771 $112,387 $105,322
Average
gross
loans $79,834 $62,839 $69,360 $62,490
Average
deposits $108,752 $101,542 $107,061 $101,022
Average
equity $10,689 $9,492 $10,232 $9,155
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SOURCE Chino Commercial Bancorp
