Net income for the quarter ended December 31, 2010 decreased 11.2% to $55,781 from $62,793 for quarter ended December 31, 2009. Net income per basic share for the year ended December 31, 2010 was $0.42, a 16.0% decrease from $0.50 per share for the year ended December 31, 2009. Net income per fully diluted share for fiscal year 2010 was $0.42 a 12.5% decrease from $0.48 per diluted share for fiscal year 2009. Similarly, earnings per diluted share for the fourth quarter ended December 31, 2010 were $0.07, as compared to $0.08 per diluted share for the fourth quarter of 2009.
Dann H. Bowman, President and Chief Executive Officer stated, "2010 was an exciting year for the Bank, with the opening of a new branch office in Rancho Cucamonga, and the purchased of a new headquarters building in Chino. Net earnings remained relatively strong during the year, with the Bank posting positive earnings each quarter. Recently, a number of loans were downgraded; however, at year-end the Bank had only one delinquent loan."
Financial Condition
Total deposits increased by 11.6% to $103.0 million at December 31, 2010 a substantial increase from $92.3 million at December 31, 2009. Core deposits increased 15.9%, from $74.7 million at December 31, 2009 to $86.6 million at December 31, 2010. The Bank's core deposits to total deposits remains at a very favorable 84.1%.
At December 31, 2010, total assets were $113.9 million, an increase of $10.4 million or 10.0% from December 31, 2009.
Gross loans declined slightly to $60.5 million at December 31, 2010 from $61.4 million at December 31, 2009, or a decrease of 1.4%, while total investments increased to $40.8 million from $33.3 million at December 31, 2009, a 22.7% increase.
The level of "non-performing" loans increased during the year from $1,493,919 to $4,167,573 or 6.86% of ending loans. 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 $440,723.
The level of loan charge-offs increased during the year from $205,387 in 2009 to $616,842 in 2010, or an increase of $411,455. It is important to note however, that of the charge-offs taken in 2010 $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 $3,892,775 for the year ended December 31, 2010 as compared to $3,725,014 for the year ended December 31, 2009. Average interest-earning assets were $100.2 million with average interest-bearing liabilities of $65.2 million yielding a net interest margin of 3.89% for the year ended December 31, 2010 as compared to average interest-bearing assets of $84.5 million with average interest-bearing liabilities of $51.4 million yielding a net interest margin of 4.41% for the year ended December 31, 2009. The 52 basis points decrease in the net interest margin was primarily the effect of downward re-pricing of the benchmark for Federal funds rate and related Prime rate.
The Bank posted net interest income of $957,354 for the three months ended December 31, 2010 as compared to $992,405 for the three months ended December 31, 2009. Average interest-earning assets were $99.6 million with average interest-bearing liabilities of $64.4 million yielding a net interest margin of 36.81% for the fourth quarter of 2010 as compared to average interest-bearing assets of $58.6 million with average interest-bearing liabilities of $58.6 million yielding a net interest margin of 4.23% for the three months ended December 31, 2009.
Non-interest income totaled $1,450,738, or an increase of 34.6% from $1, 077,558 earned during the year ended December 31, 2009. Service charges on deposit accounts increased $181,353, or 18.4% to $1,166,555 due to higher volume of returned items activity. Other miscellaneous income increased from $15,537 in 2009 to $207,499 for the year ended December 31, 2010 due to gain on sale of foreclosed equipment totaling $127,840 and a gain on sale of OREO netting at $51,700 for the year ended December 31, 2010
Non-interest income for the quarter ended December 31, 2010 totaled $412,987 or a 36.7% increase from the fourth quarter of 2009. Service charges on deposit accounts similarly increased 8.4% to $304,249 due to increase in the volume of overdraft and return item charges.
General and administrative expenses were $1,059,485 for the three months ended December 31, 2010 or an increase of 23.2% as compared to $860,294 for the three months ended December 31, 2009. General and administrative expenses were $4,138,816 for the year ended December 31, 2010 as compared to $3,506,534 for the year ended December 31, 2009. The largest component of general and administrative expenses was salary and benefits expense which totaled $555,760 for the three months ended December 31, 2010 as compared to $516,093 for the three months ended December 31, 2009. Salary and benefits expense were $2,193,710 for the year ended December 31, 2010 as compared to $1,899,192 for the year ended December 31, 2009. The increase in Salaries and benefits expenses for the year was reflective of an increase in staff due to addition of a third branch located in Rancho Cucamonga.
The consolidated Company's income tax expense was $15,319 for the three months ended December 31, 2010 as compared to $24,040 for the three months ended December 31, 2009. Income tax expenses were $129,644 for the year ended December 31, 2010 as compared to $166,319 for the year ended December 31, 2009. The effective income tax rate for 2010 and 2009 was approximately 30% and 32%, respectively.
Headquarters Relocation
On January 10, 2011 Chino Commercial Bank and Chino Commercial Bancorp relocated their respective headquarters from 14345 Pipeline Avenue, Chino, CA to 14245 Pipeline Avenue, Chino, CA. The move was as a result of the purchase of the new headquarters building.
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. Read More CHINO COMMERCIAL BANCORP CONSOLIDATED BALANCE SHEET December 31, 2010 and December 31, 2009 For the latest updates PRESS CTR + D or visit Stock Market news Today
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