UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934 |
Date of Report (Date of earliest event reported)April 20, 2009
CHINO COMMERCIAL BANCORP
(Exact name of registrant as specified in its charter) |
| CA | | 000-52098 | | 20-4797048 |
| (State of incorporation) | | (Commission File Number) | | (IRS Employer |
| | | | | Identification No.) |
| |
| 14345 Pipeline Avenue | | | | |
| Chino, California | | | | 91710 |
| Address of Principal Executive Offices | | | | Zip Code |
(909) 393-8880
Registrant’s telephone number, including area code |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the follow provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Item 2.02 Results of Operations and Financial Condition
On April 20, 2009 the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
| Press release dated April 20, 2009 |
CHINO COMMERCIAL BANCORP REPORTS 187% INCREASE IN FIRST QUARTER EARNINGS
Chino, California, April 20, 2009 – 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, 2009 with net earnings of $119,269, a 159.7% increase from $45,936 for the fourth quarter of 2008, and a 187.6% increase from net income of $41,471 for the first quarter of last year. Net income per basic share for the first quarter was $0.17 as compared to $0.07 per share for the fourth quarter ended December 31, 2008, and $0.06 for the first quarter last year.
Dann H. Bowman, President and Chief Executive Officer stated, “We are very pleased with the strong financial performance of the Bank during the first quarter. Not only are earnings up substantially, but credit quality remains very good, with the Bank reporting no loan delinquency for the quarter-end. During this time when many banks have to cut back on lending, we have significant capacity to continue making loans and support our customers. Though the economy is slowing, we see great potential in the small businesses and professionals we serve, and look forward to a very good year.”
Financial Condition
At March 31, 2009, total assets were $88.9 million, an increase of $5.5 million or 6.6% from December 31, 2008, and an increase of $16.7 million or 23.1% from March 31, 2008. This is a direct result of the growth of the Bank’s deposits.
Total deposits increased by 10.8% to $78.6 million at March 31, 2009, an increase from $71.0 million at December 31, 2008. Total deposits increased 25.5% from March 31, 2008’s balance of $62.7 million. At March 31, 2009, the Company’s core deposits represent 88.5% of the total deposits.
Loans decreased $732,503 during the first quarter from December 31, 2008 with a balance at March 31, 2009 of $48.0 million. Comparing the balances of March 31, 2008, the Company’s loans decreased $4.2 million or 8.0% during the twelve month period. The decline was primarily in real estate secured lending.
Earnings
The Company posted net interest income of $822,299 for the quarter ended March 31, 2009 as compared to $884,585 the quarter ended March 31, 2008, due to decreased average balances in loans and increased average balances in interest-bearing deposits. Average interest-earning assets were $75.0 million with average interest-bearing liabilities of $44.4 million yielding a net interest margin of 4.45% for the first quarter of 2009 as compared to the average
interest-earning assets of $67.2 million with average interest-bearing liabilities of $32.6 million yielding a net interest margin of 5.29% for the first quarter of 2008.
Non-interest income totaled $247,452 for the first quarter of 2009, or a decrease of 6.4% from $264,387 earned during the first quarter of 2008. Service charges on deposit accounts decreased 8.4% to $212,961 due to decreased overdraft and return item charges.
The provision for loan losses decreased $218,480 to $16,151 or 93.1% in the first quarter of 2009, compared to $234,631 in the first quarter of 2008.
General and administrative expenses were $870,574 for the three months ended March 31, 2009 as compared to $862,748 for the first quarter of 2008. The largest component of general and administrative expenses was salary and benefits expense of $488,695 for the first quarter of 2009 as compared to $477,792 for the three months ended March 31, 2008. Advertising and marketing expenses decreased by $11,955 or 43.0% for the comparable three-month period. Other expenses increased by $18,355 for the comparable three-month period due to expenses of other real estate in 2009 that did not exist in 2008 Income tax expense was $63,757 for the three months ended March 31, 2009 as compared to $10,122 for the three months ended March 31, 2008. The effective income tax rate for 2009 and 2008 is approximately 39%.
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.
Contact: Dann H. Bowman, President and CEO or Sandra F. Pender, Vice President and CFO, Chino Commercial Bank, N.A., 14345 Pipeline Avenue, Chino, Ca. 91710, (909) 393-8880.
| CHINO COMMERCIAL BANCORP |
| CONSOLIDATED BALANCE SHEET |
| March 31, 2009 and December 31, 2008 |
| |
| | | | March 31, 2009 | | | | December 31, 2008 | |
| | | | (unaudited) | | | | (audited) | |
| ASSETS: | | | | | | | | |
| Cash and due from banks | | $ | 5,519,296 | | | $ | 3,877,897 | |
| Federal funds sold | | | 0 | | | | 0 | |
| Cash and cash equivalents | | | 5,519,296 | | | | 3,877,897 | |
| |
| Interest-bearing deposits in other banks | | | 17,460,729 | | | | 12,498,000 | |
| |
| Investment securities available for sale | | | 8,621,663 | | | | 8,791,651 | |
| Investment securities held to maturity (fair value approximates | | | | | | | | |
| $3,059,000 at March 31, 2009 and $3,186,000 at December 31, 2008) | | | 3,012,332 | | | | 3,167,401 | |
| Total investments | | | 29,094,724 | | | | 24,457,052 | |
| Loans | | | | | | | | |
| Construction | | | 0 | | | | 820,888 | |
| Real estate | | | 39,500,274 | | | | 37,794,240 | |
| Commercial | | | 8,933,130 | | | | 10,607,103 | |
| Installment | | | 600,261 | | | | 543,937 | |
| Gross loans | | | 49,033,665 | | | | 49,766,168 | |
| Unearned fees and discounts | | | (68,482 | ) | | | (77,542 | ) |
| Loans net of unearned fees and discount | | | 48,965,183 | | | | 49,688,626 | |
| Allowance for loan losses | | | (718,762 | ) | | | (702,409 | ) |
| Net loans | | | 48,246,421 | | | | 48,986,217 | |
| |
| Accrued interest receivable | | | 346,829 | | | | 313,428 | |
| Restricted stock | | | 677,650 | | | | 677,650 | |
| Fixed assets, net | | | 1,941,203 | | | | 1,980,476 | |
| Other real estate | | | 588,207 | | | | 653,131 | |
| Prepaid & other assets | | | 2,441,550 | | | | 2,447,295 | |
| Total assets | | $ | 88,855,880 | | | $ | 83,393,146 | |
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| LIABILITIES: | | | | | | | | |
| Deposits | | | | | | | | |
| Non-interest bearing | | $ | 35,170,219 | | | $ | 32,600,750 | |
| Interest Bearing | | | | | | | | |
| NOW and money market | | | 29,201,760 | | | | 28,434,407 | |
| Savings | | | 969,802 | | | | 1,064,668 | |
| Time deposits less than $100,000 | | | 4,233,354 | | | | 3,842,310 | |
| Time deposits of $100,000 or greater | | | 9,065,348 | | | | 5,055,617 | |
| Total deposits | | | 78,640,483 | | | | 70,997,752 | |
| |
| |
| Accrued interest payable | | | 93,715 | | | | 56,061 | |
| Borrowings from Federal Home Loan Bank | | | 0 | | | | 2,400,000 | |
| Accrued expenses & other payables | | | 769,459 | | | | 665,580 | |
| Subordinated debentures | | | 3,093,000 | | | | 3,093,000 | |
| Total liabilities | | | 82,596,657 | | | | 77,212,393 | |
| STOCKHOLDERS' EQUITY | | | | | | | | |
| Common stock, authorized 10,000,000 shares with no par value, issued and | | | | | | | | |
| outstanding 703,065 shares and 704,278 shares at March 31, 2009 and | | | | | | | | |
| December 31, 2008, respectively. | | | 2,559,146 | | | | 2,617,542 | |
| Retained earnings | | | 3,653,505 | | | | 3,534,236 | |
| Accumulated other comprehensive loss | | | 46,572 | | | | 28,975 | |
| Total equity | | | 6,259,223 | | | | 6,180,753 | |
| Total liabilities & stockholders' equity | | $ | 88,855,880 | | | $ | 83,393,146 | |
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| The accompanying notes are an integral part of these consolidated financial statements | | | | | |
| CHINO COMMERCIAL BANCORP |
| CONSOLIDATED STATEMENTS OF INCOME |
| (unaudited) |
| |
| | | For the quarter ended March 31, |
| | | | 2009 | | | 2008 |
| Interest income | | | | | | |
| Investment securities and due from banks | | $ | 217,282 | | $ | 125,801 |
| Interest on Federal funds sold | | | 34 | | | 24,991 |
| Interest and fee income on loans | | | 891,357 | | | 984,455 |
| Total interest income | | | 1,108,673 | | | 1,135,247 |
| Interest expense | | | | | | |
| Deposits | | | 235,008 | | | 199,615 |
| Interest on Federal funds purchased | | | 113 | | | 84 |
| Interest on FHLB borrowings | | | 290 | | | 0 |
| Other borrowings | | | 50,963 | | | 50,963 |
| Total interest expense | | | 286,374 | | | 250,662 |
| Net interest income | | | 822,299 | | | 884,585 |
| Provision for loan losses | | | 16,151 | | | 234,631 |
| Net interest income after | | | | | | |
| provision for loan losses | | | 806,148 | | | 649,954 |
| Non-interest income | | | | | | |
| Service charges on deposit accounts | | | 212,961 | | | 232,558 |
| Other miscellaneous fee income | | | 9,601 | | | 8,473 |
| Dividend income from restricted stock | | | 8,160 | | | 8,244 |
| Income from bank owned life insurance | | | 16,730 | | | 15,112 |
| Total non-interest income | | | 247,452 | | | 264,387 |
| General and administrative expenses | | | | | | |
| Salaries and employee benefits | | | 488,695 | | | 477,792 |
| Occupancy and equipment | | | 77,612 | | | 83,781 |
| Data and item processing | | | 73,481 | | | 82,676 |
| Advertising and marketing | | | 15,874 | | | 27,829 |
| Legal and professional fees | | | 45,065 | | | 45,312 |
| Regulatory Assessments | | | 28,028 | | | 20,481 |
| Insurance | | | 7,784 | | | 8,228 |
| Directors' fees and expenses | | | 18,207 | | | 19,176 |
| Other expenses | | | 115,828 | | | 97,473 |
| Total general & administrative expenses | | | 870,574 | | | 862,748 |
| Income before income tax expense | | | 183,026 | | | 51,593 |
| Income tax expense | | | 63,757 | | | 10,122 |
| Net income | | $ | 119,269 | | $ | 41,471 |
| Basic earnings per share | | $ | 0.17 | | $ | 0.06 |
| Diluted earnings per share | | $ | 0.16 | | $ | 0.05 |
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| The accompanying notes are an integral part of these consolidated financial statements | |
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| | By:/s/ Dann H. Bowman
Dann H. Bowman
President and Chief Executive Officer
(Officer authorized to sign on behalf of registrant) |
