Chino Commercial Bancorp Reports 44% Increase in Profits

CHINO, Calif., Jan. 9, 2012 /PRNewswire/ -- The Board of Directors of Chino Commercial Bancorp (OTC Bulletin Board: CCBC), the parent company of Chino Commercial Bank NA, announced the results of operations for the Bank and the consolidated holding company for the three and twelve months ended December 31, 2011. For the full year ended December 31, 2011 the company posted a consolidated net income of $441,401, an increase of 44.6% over net income of $305,301 for the year end 2010. Net income for the quarter ended December 31, 2011 increased 201.0% to $167,928 from $55,781 for quarter ended December 31, 2010. Net income per basic share was $0.59 for the year ended December 31, 2011, a 40.5% increase over $0.42 per share for the year ended December 31, 2010. Net income per fully diluted share for fiscal year 2011 was $0.59 a 40.5% increase from $0.42 per diluted share for fiscal year 2010. Similarly, earnings per diluted share for the fourth quarter ended December 31, 2011 were $0.22, as compared to $0.07 per diluted share for the fourth quarter of 2010.

Dann H. Bowman, President and Chief Executive Officer stated, "We have been very fortunate this year, with the Bank posting better than expected operating results.  Loan quality also continues to improve with many of our customers experiencing better Sales and Earnings results this year; and at year-end the Bank had only one delinquent loan.  Overall, we are becoming increasingly optimistic regarding the economy and the Inland Empire Region in general.  Though we are not out of the woods yet, we believe the Bank is well positioned to benefit from the improved economic and business conditions."

Financial Condition
Non-interest bearing deposits increased 12.6% to $47.2 million at December 31, 2011 from $41.9 million at December 31, 2010. Total deposits at December 31, 2011 totaled $98.1 million, a decline of 4.8% from $103.0 million at December 31, 2010. Core deposits decreased 0.8%, to $85.9 million at December 31, 2011 from $86.6 million at December 31, 2010. The Bank's core deposits to total deposits increased to a very favorable 89.6% of total deposits at December 31, 2011 from 84.1% at December 31, 2010.

At December 31, 2011, total assets were $109.7 million, a decrease of $4.2 million or 3.7% from December 31, 2010.

Gross loans declined slightly to $56.8 million at December 31, 2011 from $60.5 million at December 31, 2010, or a decrease of 6.1%, and total investments and Federal funds sold decreased slightly to $40.1 million from $40.9 million at December 31, 2010, a 1.9% decrease.

The level of "non-performing" loans decreased during the year to $3.6 million at December 31, 2011 from $4.3 million at December 31, 2010 or a 13.5% decrease. Many of these loans have been graded as non-performing based on information contained in the borrower's income tax returns. At year-end all of the non-performing loans except one, were current on their scheduled payments. At year-end the Bank had only one loan which was more than 30 days delinquent for $171,434 and one commercial real estate property in OREO at $439,117.

The level of net loan charge-offs decreased during the year to $185,909 in 2011 from $605,125 in 2010, or a decrease of $411,455. It is important to note, however, that of the charge-offs taken in 2011 of $127,035 and in 2010 of $444,656 were charge-offs against loans that were paying as agreed. In many cases these charge-offs were taken to reflect reduced real estate collateral values.

Earnings
The Company posted net interest income of $3,732,455 for the year ended December 31, 2011 as compared to $3,892,775 for the year ended December 31, 2010. Average interest-earning assets were $93.7 million with average interest-bearing liabilities of $56.0 million yielding a net interest margin of 3.97% for the year ended December 31, 2010 as compared to average interest-bearing assets of $99.7 million with average interest-bearing liabilities of $65.2 million yielding a net interest margin of 3.90% for the year ended December 31, 2010.

The Bank posted net interest income of $926,160 for the three months ended December 31, 2011 as compared to $957,354 for the three months ended December 31, 2010. Average interest-earning assets were $93.9 million with average interest-bearing liabilities of $54.1 million yielding a net interest margin of 3.91% for the fourth quarter of 2011 as compared to average interest-earning assets of $99.6 million with average interest-bearing liabilities of $64.4 million yielding a net interest margin of 3.81% for the three months ended December 31, 2010.

Non-interest income totaled $1,347,803, or a decrease of 10.6% from $1, 506,938 earned in the year ended December 31, 2010. Service charges on deposit accounts increased $6,744, or 0.6% to $1,173,299 in 2011 due to higher volume of returned items activity. Gain on sale of foreclosed assets decreased to $61,151 in 2011 from $235,766 for the year ended December 31, 2010 due to gain on sale OREO of $61,151 received in 2011 compared to gain of foreclosed equipment totaling $127,839 and a gain on sale of OREO netting at $107,927 for the year ended December 31, 2010

Non-interest income for the quarter ended December 31, 2011 totaled $309,034 or a 29.7% decrease from the fourth quarter of 2010. The decrease is due to a gain on the sale of OREO of $107,779 recognized in the fourth quarter of 2010 that was not repeated in the fourth quarter of 2011.

General and administrative expenses were $969,519 for the three months ended December 31, 2011 or a decrease of 10.7% as compared to $1,085,983 for the three months ended December 31, 2010. General and administrative expenses were $4,118,282 for the year ended December 31, 2011 as compared to $4,195,016 for the year ended December 31, 2010. The largest component of general and administrative expenses was salary and benefits expense which totaled $535,442 for the three months ended December 31, 2011 as compared to $555,760 for the three months ended December 31, 2010. Salary and benefits expense were $2,182,644 for the year ended December 31, 2011 as compared to $2,193,710 for the year ended December 31, 2010.

The consolidated Company's income tax expense was $97,688 for the three months ended December 31, 2011 as compared to $15,319 for the three months ended December 31, 2010. Income tax expenses were $229,685 for the year ended December 31, 2011 as compared to $129,644 for the year ended December 31, 2010. The effective income tax rate for 2011 and 2010 was approximately 34% and 30%, 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 detailed in the Company's SEC filings.

SOURCE Chino Commercial Bancorp