Chino Commercial Bancorp Reports 2012 First Quarter Earnings

CHINO, Calif., April 23, 2012 /PRNewswire/ -- The Board of Directors of Chino Commercial Bancorp (OTCBB: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, 2012 with net earnings of $203,959, a 0.3% increase from net income of $203,305 for the first quarter of last year. Net income per basic share for the first quarter was $0.26 as compared to $0.27 for the first 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.  Economic conditions appear to be slowly improving, and many of our small business customers are reporting better than expected operating results.  At the end of the first quarter the Bank reported only one delinquent loan, and suffered no loan losses in the quarter.  

We continue to remain optimistic about the economy of the Inland Empire and the customers we serve.  We are motivated and eager to continue lending to the businesses and consumers in our community."

Financial Condition

At March 31, 2012, total assets were $111.4 million, an increase of $1.7 million or 1.5% from December 31, 2011. This is a direct result of the growth of the Bank's deposits.

Total deposits increased by 0.9% to $99.0 million at March 31, 2012, an increase from $98.1 million at December 31, 2011. At March 31, 2012, the Company's core deposits represent 88.7% of the total deposits.

Loans decreased $1.2 million or 2.0% during the first quarter from December 31, 2011 with a remaining balance of $55.4 million at March 31, 2012. The Bank's asset quality improved in the first quarter as the level of OREO declined from $439 thousand to -0- and the level of Nonperforming assets to total loans and OREO improved from 7.07% at December 31, 2011 to 4.44% at March 31, 2012.

On September 16, 2011, the Company filed a registration statement on Form S-1 with the SEC in connection with a secondary stock offering to existing shareholders which commenced in the fourth quarter of 2011 and was extended to the general public in early 2012. Pricing for the offering was set at $10.50 per share. Thus far the Company has generated $799,602.50 in additional paid in capital from the offering. The offering is currently scheduled to close on April 30, 2012.

Earnings

The Company posted net interest income of $895,490 for the quarter ended March 31, 2012 as compared to $1,019,371 for the quarter ended March 31, 2011, due to decreased average balances in interest-earning assets and declining interest rates. Average interest-earning assets were $93.8 million with average interest-bearing liabilities of $53.7 million, yielding a net interest margin of 3.84% for the first quarter of 2012; as compared to the average interest-earning assets of $98.8 million with average interest-bearing liabilities of $60.4 million, yielding a net interest margin of 4.19% for the first quarter of 2011.

Non-interest income totaled $475,818 for the first quarter of 2012, or an increase of 21.1% from $393,053 earned during the first quarter of 2011. Gain on sale of foreclosed assets increased to $93,871 in the first quarter of 2012, compared to a $61,151 gain recognized in the first quarter of 2011. Service charges on deposit accounts increased 2.2% to $311,493 due to increased return item and overdraft charges. Other miscellaneous income increased to $49,934 for the first quarter of 2012, compared to $7,250 in the same quarter in 2011 due to reimbursement of legal expenses incurred in 2011.

General and administrative expenses were $1,045,975 for the three months ended March 31, 2012, as compared to $1,081,129 for the first quarter of 2011. The largest component of general and administrative expenses was salary and benefits expense of $573,281 for the first quarter of 2012, as compared to $587,399 for the three months ended March 31, 2011. Regulatory assessments decreased in the first quarter of 2012 to $55,864, compared to $75,447 in the first quarter of 2011. Directors' fees and expenses increased $9,944 due to an increase of one director and an increase in directors' fees in the first quarter of 2012. Other expenses increased by $7,223 for the comparable three-month period due mainly to expenses of other real estate incurred prior to the sale.

Income tax expense was $121,374 for the three months ended March 31, 2012 as compared to $122,468 for the three months ended March 31, 2011. The effective income tax rate for the first quarter of 2012 and 2011 is approximately 37.3% and 37.6%, respectively.

Forward-Looking Statements

The statements contained in this 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.  The forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and readers are cautioned not to unduly rely on such forward-looking statements. Actual results and performance in future periods may be materially different from any future results or performance suggested by the forward-looking statements in this release. Factors that might cause such differences include, but are not limited to, the health of the National and California economies, the Company's ability to attract and retain skilled employees, competition in the financial services market for both deposits and loans, the Company's ability to increase its customer base, customers' service expectations, the Company's ability to successfully de­ploy new technology and gain efficiencies therefrom, the success of branch expansion, changes in interest rates, loan portfolio performance, the Company's ability to enhance its earnings capacity, and other factors detailed in the Company's SEC filings, including the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recent Form 10-K.

SOURCE Chino Commercial Bancorp