34% INCREASE IN THIRD QUARTER EARNINGS
Chino, California, October 29, 2014 – The Board of Directors of Chino Commercial Bancorp (“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 third quarter ended September 30, 2014 with net earnings of $289,916 or an increase of 34.8%, as compared with net income of $214,950 for the same quarter last year. Net income per basic and diluted share for the third quarter 2014 was $0.32 as compared to $0.26 for the same quarter last year. The Company’s income for the nine months ended September 30, 2014 increased 36.2% to $877,887 or $0.96 per basic and diluted share as compared with net earnings of $644,758 or $0.77 per basic and diluted share for the same period in 2013. Dann H. Bowman, President and Chief Executive Officer, stated, “We are very pleased with the performance of the Bank during the third quarter. Economic conditions are strong in the Inland Empire and the business climate is very good. At the end of the third quarter the Bank had no Non-performing assets, no delinquent loans, no foreclosed properties and has experienced no credit losses so far this year.” “With the Bank’s strong balance sheet, we have a number of marketing opportunities in the area and the potential to expand our lending to the businesses and families in our community.” Financial Condition At September 30, 2014, total assets were $126.7 million, which was an increase of $3.5 million or 2.9% over $123.1 million at December 31, 2013. Deposits increased by $2.5 million or 2.3% to $112.1 million at September 30, 2014, from $109.6 million at December 31, 2013. Loans net of unearned fees increased 16.3% in the nine months ended September 30, 2014 to $74.7 million from $64.2 million at December 31, 2013. The Company’s asset quality improved during the nine months ended September 30, 2014, as the level of nonperforming assets to total loans and OREO declined from 0.69% at September 30, 2013 to -0- at September 30, 2014. At quarter-end September 30, 2014 the Bank had no delinquent loans over 30 days and no OREO. Earnings The Company posted net interest income of $1,072,628 and $944,316 for the three months ended September 30, 2014 and 2013, respectively, or an increase of $128,312 or 13.6%. For the nine months ended September 30, 2014 the Company posted net interest income of $3,207,841, compared to $3,007,310 for the same period in 2013, or an increase of $200,531 or 6.6%. Income from earning assets increased by $132,353 for the third quarter of 2014 compared to the same period last year; and increased $50,555 or 1.6% for the nine months ended September 30, 2014 compared to same period in 2013. Average interest-earning assets for the quarter ended September 30, 2014 were $101.2 million, with average interest-bearing liabilities of $52.4 million, yielding a net interest margin of 3.81% for the third quarter of 2014; as compared to the average interest-earning assets of $104.5 million, with average interest-bearing liabilities of $52.6 million, yielding a net interest margin of 3.58% for the same period in 2013. Average interest-earning assets for the nine months ended September 30, 2014 were $99.6 million with average interest-bearing liabilities of $52.2 million, yielding a net interest margin of 3.88%, compared to average interest-earning assets of $104.8 million, with average interest- bearing liabilities of $55.0 million, yielding a net interest margin of 3.84% for the same period in 2013.
Non-interest income totaled $398,191 for the third quarter of 2014, or a decrease of 5.8% from $421,492 earned during the third quarter of 2013. For the nine months ended September 30, 2014, non-interest income totaled $1,237,134 or an 11.8% increase from $1,106,241 earned during the same period in 2013. General and administrative expenses were $1,004,098 for the three months ended September 30, 2014, as compared to $1,025,979 for the third quarter of 2013; and were $3,030,072 and $3,083,514 for the nine months ended September 30, 2014 and 2013, respectively. The largest component of general and administrative expenses was salary and benefits expense of $570,831, which was an increase of 3.2% over $552,905 for the third quarter ending September 30, 2014 and 2013 respectively. Salary and Benefit expenses were $1,733,247 for the nine months ended September 30, 2014, or an increase of 3.1% over $1,681,065 for the same period last year. Income tax expense for the Company was $176,805 for the third quarter of 2014 as compared to $124,879 for the same period in 2013, resulting in effective income tax rates of approximately 37.9% and 36.7%, respectively. Income tax expense for the nine months ended September 30, 2014 and 2013 were $537,016 and $385,279, respectively. The effective income tax rates for the Company were 38.0% and 37.4% for the nine months ended September 30, 2014 and 2013, 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. Contact: Dann H. Bowman, President and CEO, Chino Commercial Bancorp and Chino Commercial Bank, N.A., 14245 Pipeline Avenue, Chino, Ca. 91710, (909) 393-8880.
