Workers expect their defined contribution plans to play a greater role in their retirement income than annuities.
CHINO, Calif., April 21, 2014 /PRNewswire/ -- The Board of Directors of Chino Commercial Bancorp (OTC BB: 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, 2014 with net earnings of $224,422, or an increase of 31.5% compared with net income of $170,640 for the same quarter last year. Net income per basic share for the first quarter of 2014 was $0.27 as compared $0.21 for the same quarter last year.
Dann H. Bowman, President and Chief Executive Officer, stated, "We are very pleased with the performance of the Bank during the first quarter. In addition to very strong net earnings, the Bank also had no delinquent loans and suffered no credit losses during the first quarter.
Economic conditions appear to be rapidly improving in the Inland Empire, and many of our small business customers are reporting better than expected operating results. We continue to remain optimistic about the economy, and are eager to lend to the businesses and consumers in our community."
Separately, the Bank recently reported that it had received recognition from the Findley Reports on Financial Institutions by again receiving their highest rating of Super Premier Performing.
At March 31, 2014, total assets were $123.9 million, an increase of $0.8 million or 0.6% over $123.1 million at December 31, 2013. The increase is a direct result of growth in the Bank's deposits which increased by 0.6% to $110.2 million at March 31, 2014, or an increase from $109.6 million at December 31, 2013. At March 31, 2014, the Company's core deposits represent 96.5% of the total deposits.
Gross loans increased by 1.4% or $0.9 million during the first quarter to $65.2 million as compared with $64.3 million as of December 31, 2013. The Bank's loan quality also improved during the first quarter as the level of nonperforming assets to total loans and OREO decreased from 0.17% at December 31, 2013 to 0.16% at March 31, 2014.
The Company posted net interest income of $937,047 for the quarter ended March 31, 2014 as compared to $990,365 for the quarter ended March 31, 2013. Although average earning assets increased, the yield on earning assets decreased by 0.36% to 3.82%. Average interest-earning assets were $106.9 million with average interest-bearing liabilities of $55.6 million, yielding a net interest margin of 3.56% for the first quarter of 2014; as compared to the average interest-earning assets of $104.0 million with average interest-bearing liabilities of $58.0 million, yielding a net interest margin of 3.86% for the first quarter of 2013.
Non-interest income totaled $439,560 for the first quarter of 2014, or an increase of 41.0% as compared with $311,783 earned during the first quarter last year. Service charges on deposit accounts increased 25.5% to $351,376 due to increased income from returned items and overdraft charges. Other miscellaneous income increased to $48,052 for the first quarter of 2014, compared to $10,736 for the same quarter in 2013, due to reimbursement of Fees in 2014 for a failed software solution; and income from leased premises received in 2014. Due to the purchase of additional BOLI, income from bank-owned life insurance increased from $16,313 in the first quarter of 2013 to $25,815 in the first quarter of 2014.
General and administrative expenses were $1,019,711 for the three months ended March 31, 2014, as compared to $1,028,012 for the first quarter of 2013. The largest component of general and administrative expenses was salary and benefits expense of $587,396 for the first quarter of 2014, as compared to $571,023 for the same quarter last year. Regulatory assessments decreased by $29.547 or 51.1% to $28,221 in the first quarter of 2014 compared to $57,768 in the first quarter of 2013 due to the termination of the Formal Agreement with the Office of the Comptroller of the Currency; in addition to a more favorable rating received from regulators in the fourth quarter of 2013. Advertising and marketing expenses increased 76.0% to $23,743 in the first quarter of 2014 from $13,489 for the same period last year.
Income tax expense was $131,563 for the three months ended March 31, 2014 as compared to $100,864 for the three months ended March 31, 2013. The effective income tax rate for the first quarter of 2014 and 2013 is approximately 37.0% and 37.2%, respectively.
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 Bancorp and Chino Commercial Bank, N.A., 14245 Pipeline Avenue, Chino, Ca. 91710, (909) 393-8880.
CHINO COMMERCIAL BANCORP
CONSOLIDATED BALANCE SHEET
March 31, 2014 and December 31, 2013
March 31, 2014
December 31, 2013
Cash and due from banks
Federal funds sold
Total cash and cash equivalents
Interest-bearing deposits in other banks
Investment securities available for sale
Investment securities held to maturity (fair value approximates
$6,819,000 at March 31, 2014 and $3,195,000 at December 31, 2013)
Unearned fees and discounts
Loans net of unearned fees and discount
Allowance for loan losses
Accrued interest receivable
Fixed assets, net
Prepaid & other assets
NOW and money market
Time deposits less than $100,000
Time deposits of $100,000 or greater
Accrued interest payable
Accrued expenses & other payables
Subordinated notes payable to subsidiary trust
Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 833,280 shares at March 31, 2014 and December 31, 2013.
Accumulated other comprehensive income
Total shareholders' equity
Total liabilities & shareholders' equity
CONSOLIDATED STATEMENTS OF NET INCOME
For the three months ended
Investment securities and due from banks
Interest on Federal funds sold
Interest and fee income on loans
Total interest income
Total interest expense
Net interest income
Provision for loan losses
Net interest income after
provision for loan losses
Service charges on deposit accounts
Other miscellaneous income
Dividend income from restricted stock
Income from bank-owned life insurance
Total non-interest income
Salaries and employee benefits
Occupancy and equipment
Data and item processing
Advertising and marketing
Legal and professional fees
Directors' fees and expenses
Total non-interest expenses
Income before income tax expense
Income tax expense
Basic earnings per share
Diluted earnings per share
For the six months ended
KEY FINANCIAL RATIOS
Annualized return on average equity
Annualized return on average assets
Net interest margin
Core efficiency ratio
Net chargeoffs to average loans
Average interest-earning assets
Average gross loans
End of period
Non-performing loans to total loans
Non-performing loans to total assets
Allowance for loan losses to total loans
Nonperforming assets as a percentage of total loans and OREO
Allowance for loan losses to non-performing loans
OTHER PERIOD-END STATISTICS
Shareholders equity to total assets
Net Loans to deposits
Non-interest bearing deposits to total deposits
Total capital to total risk-weighted assets
Tier 1 capital to total risk-weighted assets
Tier 1 leverage ratio
SOURCE Chino Commercial Bancorp