05/04/2018: 24% INCREASE IN NET EARNINGS
24% INCREASE IN NET EARNINGS
Chino, California, April 20, 2018 – 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 first quarter ended March 31, 2018, with net earnings of $509 thousand, or an increase of 23.5%, compared with net income of $412 thousand for the same quarter last year. Net income per basic and diluted share was $0.33 for both the first quarter of 2018 and 2017, respectively.
Dann H. Bowman, President and Chief Executive Officer stated, “In addition to the excellent first quarter earnings results, the Bank was recently recognized by the Findley Reports on Financial Institutions by receiving their highest rating of “Super Premier Performing.” We are also very pleased that the Bank was included in the American Banker’s Association list of the “Top 200 Community Banks in America” ranking number 65 on the list.
The Bank recently received approval from the Office of the Comptroller of the Currency to establish a fourth branch office in Upland. We are excited about expanding into this community, which we believe will significantly contribute to the Company’s growth and profitability.”
Financial Condition
At March 31, 2018, total assets were $198.1 million, an increase of $5.3 million or 2.8% over $192.8 million at December 31, 2017. Total deposits increased by 6.6% or $9.8 million during the first quarter to $158.9 million, compared to $149.1 million as of December 31, 2017. At March 31, 2018, the Company’s core deposits represent 92.4% of the total deposits.
Gross loans increased by 3.4% or $4.2 million as of March 31, 2018 to $126.8 million, as compared with $122.6 million as of December 31, 2017. The Bank did not have any nonperforming loans for the quarter ended March 31, 2017, and as of December 31, 2017, respectively. OREO properties remained at zero as of March 31, 2018 and December 31, 2017, respectively.
Earnings
The Company posted net interest income of $1.7 million and $1.5 million for the three months ended March 31, 2018 and 2017, respectively, or an increase of $198 thousand or 12.9%. Average interest-earning assets were $173.5 million with average interest-bearing liabilities of $91.0 million, yielding a net interest margin of 4.03% for the first quarter of 2018, as compared to the average interest-earning assets of $164.8 million with average interest-bearing liabilities of $97.1 million, yielding a net interest margin of 3.76% for the first quarter of 2017.
Non-interest income totaled $387 thousand for the first quarter of 2018, or a increase of 1.8% as compared with $380 thousand earned during the same quarter last year. Service charges on deposit accounts increased by $15.3 thousand or 5.3% to $307 thousand, primarily due to an increase in income from returned items, overdraft charges, and analysis fees. Dividend income from restricted stock decreased to $35.8 thousand for the first quarter of 2018, compared to $45 thousand for the same quarter in 2017, due to the Federal Home Loan Bank change in dividend payout percentage policy. Income from Bank-owned life insurance remained consistent at about $25 thousand in the first quarter of 2018 and 2017, respectively.
General and administrative expenses were $1.4 million for the three months ended March 31, 2017, and 1.2 million for the same period last year. The largest component of general and administrative expenses was salary and benefits expense of $869 thousand for the first quarter of 2018, as compared to $745 thousand for the same quarter last year. Advertising and marketing expenses increased by $7 thousand or 30.9% to $29 thousand in the first quarter of 2018 from $22 thousand for the same period last year.
Income tax expense was $203 thousand which represents a decrease of $65 thousand or 24% for the three months ended March 31, 2018 as compared to $267 thousand for the three months ended March 31, 2017. The effective income tax rate for the first quarter of 2017 and 2016 is approximately 28.5% and 39.3%, respectively. The decrease in the income tax expense as well as the effective tax rate is entirely attributed to the the new Tax Reform Act signed into law in December 2017.
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 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.
