CHINO, Calif., Oct. 20, 2017 (GLOBE NEWSWIRE) -- 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, 2017 with net earnings of $459
thousand, or an increase of 27%, compared with net income of $361
thousand for the same quarter last year. Net income per basic share for
the third quarter of 2017 was $0.33 as compared to $0.29 for the same
quarter last year.
Dann
H. Bowman, President and Chief Executive Officer stated, “In addition
to the excellent third quarter earnings results, the Company also
recently completed a successful stock offering, in which demand for the
shares exceeded the amount of stock available. With the increase in
capital and the strength of the local economy, we are very pleased and
optimistic regarding growth opportunities for the Bank. In general, this
is a very good time for the Bank and we are very excited about the
future.”
Financial Condition
At
September 30, 2017, total assets were $198.3 million, an increase of
$23.2 million or 13.2% over $175.1 million at December 31, 2016. Total
deposits increased by 12.5% or $17.3 million during the year to $154.8
million, compared to $137.6 million as of December 31, 2016. At
September 30, 2017, the Company’s core deposits represent 90.5% of the
total deposits.
Gross
loans increased by 6.3% or $6.9 million as of September 30, 2017 to
$116.4 million, as compared with $109.5 million as of December 31, 2016.
The Bank did not have any nonperforming loans for the quarter ended
September 30, 2017, and one nonperforming loan as of December 31, 2016,
respectively. OREO properties remained at zero as of September 30, 2017
and December 31, 2016, respectively.
Earnings
The
Company posted net interest income of $1.6 million and $1.4 million for
the three months ended September 30, 2017 and 2016, respectively, or an
increase of $197 thousand or 13.8%. Average interest-earning assets
were $176.7 million with average interest-bearing liabilities of $101.2
million, yielding a net interest margin of 3.65% for the third quarter
of 2017, as compared to the average interest-earning assets of $161.8
million with average interest-bearing liabilities of $81.3 million,
yielding a net interest margin of 3.51% for the third quarter of 2016.
Non-interest
income totaled $389 thousand for the third quarter of 2017, or a
decrease of 1.6% as compared with $395 thousand earned during the same
quarter last year. Service charges on deposit accounts increased by $8
thousand or 2.8% to $309 thousand, primarily due to an increase in
income from returned items and overdraft charges. Dividend income from
restricted stock decreased to $36 thousand for the third quarter of
2017, compared to $49 thousand for the same quarter in 2016, 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 third quarter of 2017 and 2016, respectively.
General
and administrative expenses were $1.2 million for the three months
ended September 30, 2017, and September 30, 2016, respectively. The
largest component of general and administrative expenses was salary and
benefits expense of $732 thousand for the third quarter of 2017, as
compared to $704 thousand for the same quarter last year. Regulatory
assessments remained consistent at about $37 thousand for the third
quarter of 2017 and 2016, respectively. Advertising and marketing
expenses increased by $6 thousand or 31.7% to $25 thousand in the third
quarter of 2017 from $19 thousand for the same period last year. The
Company engaged a marketing company to assist with advertising efforts
during 2017.
Income
tax expense was $300 thousand for the three months ended September 30,
2017 as compared to $230 thousand for the three months ended September
30, 2016. The effective income tax rate for the third quarter of 2017
and 2016 is approximately 39.5% and 38.9%, 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
therefrom, changes in interest rates, loan portfolio performance, and
other factors.
