07/19/2019: 48% INCREASE IN NET EARNINGS
48% INCREASE IN NET EARNINGS
The Board of Directors of Chino Commercial Bancorp (OTC: 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, 2019, with net earnings of $787 thousand, or an increase of 48%, compared with net income of $531 thousand for the same quarter last year. Net income per basic and diluted share was $0.35 for the second quarter of 2019 and $0.24 for the same quarter 2018, respectively.
Dann H. Bowman, President and Chief Executive Officer stated, “The economic strength of the Inland Empire is supporting tremendous growth opportunities for the Bank, and the second quarter marked new record levels for total assets, loans, revenue and net earnings. In general, this is a very good time for the Bank and we are pleased and excited about the future.
Also, on May 15th the Board of Directors approved a 20% stock dividend. The dividend was issued on or about July 2, 2019 to shareholders of record as of June 14, 2019. The dividend increased the number of outstanding shares of the Company by 371,676 bringing the total shares outstanding to 2,230,808. This is the Company’s fifth stock dividend since inception in 2000”
Financial Condition
At June 30, 2019, total assets were $216.9 million, an increase of $14.9 million or 7.4% over $201.9 million at December 31, 2018. Total deposits increased by 3.6% or $6.2 million during the second quarter to $177.2 million, compared to $171.0 million as of December 31, 2018. At June 30, 2019, the Company’s core deposits represent 94.3% of the total deposits.
Gross loans increased by 6.0% or $7.8 million as of June 30, 2019 to $140.0 million, as compared with
$132.2 million as of December 31, 2018. The Bank had one nonperforming loan for the quarter ended June 30, 2019, and none as of December 31, 2018, respectively. OREO properties remained at zero as of June 30, 2019 and December 31, 2018, respectively.
Earnings
The Company posted net interest income of $2.1 million and $1.8 million for the three months ended June 30, 2019 and 2018, respectively, or an increase of $244 thousand or 13.4%. Average interest-earning assets were $188.8 million with average interest-bearing liabilities of $107.6 million, yielding a net interest margin of 4.39% for the second quarter of 2019, as compared to the average interest-earning assets of $173.8 million with average interest-bearing liabilities of $88.6.0 million, yielding a net interest margin of 4.21% for the second quarter of 2018.
Non-interest income totaled $566 thousand for the second quarter of 2019, or an increase of 52.5% as compared with $371.4 thousand earned during the same quarter last year. Service charges on deposit accounts, the largest component of non-interest income, increased by $100 thousand or 33.5% to $398 thousand, primarily due to an increase in income from returned items, overdraft charges, and analysis fees.
General and administrative expenses were $1.6 million for the three months ended June 30, 2019, and $1.4 million for the same period last year. The largest component of general and administrative expenses was salary and benefits expense of $960 thousand for the second quarter of 2019, as compared to $863 thousand for the same quarter last year. Occupancy and equipment expenses increased by $44 thousand or 36% to $165 thousand in the second quarter of 2019 from $122 thousand for the same period last year. The increase in occupancy and equipment is mostly attributed to opening the Upland branch in the fourth quarter of 2018.
Income tax expense was $281 thousand which represents an increase of $69 thousand or 32.3% for the three months ended June 30, 2019 as compared to $212.4 thousand for the three months ended June 30, 2018. The effective income tax rate for the second quarters of 2019 and 2018 is approximately 26.3% and 28.6%, 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, customer service expectations, the Company’s ability to successfully deploy new technology and gain efficiencies therefrom, and changes in interest rates, loan portfolio performance, and other factors.
Contact: Dann H. Bowman, President and CEO or Melinda M. Milincu, Vice President and CFO, Chino Commercial Bancorp and Chino Commercial Bank, N.A., 14245 Pipeline Avenue, Chino, Ca. 91710, (909) 393-8880.
