Chino Commercial Bancorp Reports 2% Increase in YTD Net Earnings


CHINO, Calif., July 19, 2024 (GLOBE NEWSWIRE) -- The Board of Directors of Chino Commercial Bancorp (OTC: 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 second quarter ended June 30, 2024.

Net earnings year-to-date increased by 1.65% or by $40.8 thousand, to $2.48 million, as compared to $2.43 million for the same period last year. Net earnings per share was $0.77 for the period ending June 30, 2024 and 0.76 for the same period last year. Net earnings for the second quarter of 2024, were $1.23 million, which represents an decrease of $34.4 thousand or 2.7% in comparison with the same quarter last year. Net earnings per basic and diluted share were $0.38 for the second quarter of 2024 and $0.39 for the same quarter in 2023, respectively.

Dann H. Bowman, President and Chief Executive Officer stated, “We are very pleased with the Bank’s performance during the second quarter, with total asset reaching new record levels. The economic strength of the Inland Empire remains very strong, allowing for tremendous growth opportunities for the Bank. In addition to the asset growth, Loan quality remains very strong, with the Bank having no delinquent loans at quarter-end, and no pending foreclosures, or OREO.

In 2023 the Bank became a member of the Card Brand Association and began to directly process Merchant Services for its customers. Not only does this service introduce an additional non-interest source of revenue, but the Bank has also been able to provide significant savings and transparency to a number of our small business customers. For virtually every business, efficient and cost effective processing of electronic payments has become a very important part of managing cash flow. In the future we can envision expanding this service outside of our immediate market; and the revenue from this service becoming an increasingly important part of the Bank’s business model.

In March, the Bank received preliminary approval from the Office of the Comptroller of the Currency to open a new branch office in Corona. During March the Bank also completed the purchase of a commercial office building, at 1035 Montecito Avenue, Corona, CA, which will serve as the new Corona branch office. The Corona branch will be the Bank’s fifth location, and is expected to open in 4Q’24.”

Financial Condition

At June 30, 2024, total assets were $468.0 million, an increase of $21.6 million or 4.84% over $446.4 million at December 31, 2023. Total deposits increased by $19.9 million or 6.2% to $339.7 million as of June 30, 2024, compared to $319.8 million as of December 31, 2023. At June 30, 2024, the Company’s core deposits represent 97.76% of the total deposits.

Gross loans increased by $15.6 million or 8.7% to $194.6 million as of June 30, 2024, compared to $179.0 million as of December 31, 2023. The Bank had three non-performing loans for the quarter ended June 30, 2024, and as of December 31, 2023. OREO properties remained at zero as of June 30, 2024 and December 31, 2023 respectively.

Earnings

The Company posted net interest income of $3.2 million for the three months ended June 30, 2024 and for the same quarter last year, respectively. Average interest-earning assets were $432.2 million with average interest-bearing liabilities of $240.2 million, yielding a net interest margin of 2.96% for the second quarter of 2024, as compared to the average interest-earning assets of $431.5 million with average interest-bearing liabilities of $224.3 million, yielding a net interest margin of 3.03% for the second quarter of 2023.

Non-interest income totaled $822.0 thousand for the second quarter of 2024, or an increase of 27.29% as compared with $645.8 thousand earned during the same quarter last year. The majority of the increase is attributed to the Company’s merchant services processing revenue that reached $148.8 thousand, representing an increase of $102.3 thousand during the second quarter as compared to $46.3 thousand for the same period last year.

General and administrative expenses were $2.3 million for the three months ended June 30, 2024, and $2.2 million for the same period last year. The largest component of general and administrative expenses was salary and benefits expense of $1.4 million for the second quarter of 2023 and for the same period last year.

Income tax expense was $485 thousand, which represents a decrease of 18 thousand or 3.58% for the three months ended June 30, 2024, as compared to $504 thousand for the same quarter last year. The effective income tax rate for the second quarter of 2024 was approximately 28.3%, and 28.5% for the same quarter last year.

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, and changes in interest rates, loan portfolio performance, and other factors.

 
Chino Commercial Bancorp and Subsidiary
Consolidated Statements of Financial Condition
 
 As of
 6/30/2024 12/31/2023
 unaudited audited
Assets   
Cash and due from banks$41,646,706  $35,503,719 
Cash and cash equivalents 41,646,706   35,503,719 
    
Fed funds sold 33,525   25,218 
  33,525   25,218 
    
Investment securities available for sale , net of zero allowance for credit losses 6,647,591   6,736,976 
Investment securities held to maturity , net of zero allowance for credit losses 205,737,609   208,506,305 
Total investments 212,385,201   215,243,282 
Loans held for investment, net of allowance for credit losses of $4,460,100 in 2024, and $4,465,622 in 2023 189,541,846   174,352,293 
Stock investments, restricted, at cost 3,576,000   3,126,100 
Fixed assets, net 7,209,508   5,466,358 
Accrued interest receivable 1,497,988   1,439,178 
Bank owned life insurance 8,362,049   8,247,174 
Other assets 3,773,487   3,010,916 
        
Total assets$468,026,309  $446,414,237 
    
Liabilities   
Deposits   
Noninterest-bearing 179,094,579   167,131,411 
Interest-bearing 160,640,596   152,669,374 
    
Total deposits 339,735,175   319,800,785 
    
Federal Home Loan Bank advances 8,000,000   15,000,000 
Federal Reserve Bank borrowings 64,000,000   57,000,000 
Subordinated debt 10,000,000   10,000,000 
Subordinated notes payable to subsidiary trust 3,093,000   3,093,000 
Accrued interest payable 1,395,354   2,156,153 
Other liabilities 1,799,851   1,876,474 
    
Total liabilities 428,023,380   408,926,412 
    
Shareholders' Equity   
Common stock, no par value, 10,000,000 shares authorized and 3,211,970 shares issued and outstanding at June 30, 2024 and December 31, 2023 10,502,558   10,502,557 
Retained earnings 31,396,156   28,920,732 
Accumulated other comprehensive loss - unrecognized loss on available for sale, net of taxes (1,895,784)  (1,935,464)
    
Total shareholders' equity 40,002,930   37,487,824 
        
Total liabilities and shareholders' equity$468,026,309  $446,414,237 
    


Chino Commercial Bancorp and Subsidiary
Consolidated Statements of Net Income
     
 For the three month ended For the six months ended
 30-Jun 30-Jun
  2024   2023   2024   2023 
 (unaudited) (unaudited) (unaudited) (unaudited)
Interest income       
Interest and fees on loans 2,801,198   2,388,004   5,528,999   4,778,163 
Interest on investment securities 1,945,563   1,144,162   3,881,668   2,277,748 
Other interest income 489,331   1,174,803   1,520,279   1,580,037 
        
Total interest income 5,236,092   4,706,968   10,930,945   8,635,948 
        
Interest expense       
Interest on deposits 1,054,734   616,992   2,087,669   993,852 
Interest on borrowings 997,524   864,373   2,310,217   1,235,776 
        
Total interest expense 2,052,258   1,481,364   4,397,886   2,229,628 
        
Net interest income 3,183,833   3,225,604   6,533,059   6,406,320 
        
Provision for loan losses 1,794   (90,520)  (1,139)  (88,384)
        
Net interest income after provision for loan losses 3,182,040   3,316,124   6,534,198   6,494,704 
        
Noninterest income       
Service charges and fees on deposit accounts 460,658   399,977   900,515   759,877 
Interchange fees 102,761   105,226   195,033   208,385 
Earnings from bank-owned life insurance 58,579   47,812   114,875   94,123 
Merchant services processing 148,770   46,436   281,538   87,391 
Other miscellaneous income 51,250   46,320   103,522   90,758 
        
Total noninterest income 822,019   645,770   1,595,483   1,240,533 
        
Noninterest expense       
Salaries and employee benefits 1,420,868   1,366,733   2,922,295   2,719,668 
Occupancy and equipment 168,404   158,968   332,473   321,409 
Merchant services processing 73,394   24,791   144,603   35,462 
Other expenses 624,150   641,742   1,280,128   1,256,687 
        
Total noninterest expense 2,286,816   2,192,234   4,679,499   4,333,226 
        
Income before income tax expense 1,717,243   1,769,660   3,450,182   3,402,010 
Provision for income taxes 485,492   503,534   974,758   967,435 
        
Net income$1,231,751  $1,266,126  $2,475,424  $2,434,575 
                
Basic earnings per share$0.38  $0.39  $0.77  $0.76 
        
Diluted earnings per share$0.38  $0.39  $0.77  $0.76 
        


Chino Commercial Bancorp and Subsidiary
Financial Highlights
    
 For the three month ended For the six months ended
 30-Jun 30-Jun
Key Financial Ratios2024 2023 2024 2023
(unaudited)       
Annualized return on average equity12.65% 14.92% 12.89% 14.70%
Annualized return on average assets1.07% 1.12% 1.05% 1.14%
Net interest margin2.96% 3.00% 2.91% 3.18%
Core efficiency ratio57.09% 56.63% 57.57% 56.67%
Net chargeoffs/(recoveries) to average loans-0.008% -0.010% 0.002% -0.017%
        
Average Balances       
(thousands, unaudited)       
Average assets458,364  452,401  475,291  427,314 
Average interest-earning assets432,215  431,488  450,774  406,253 
Average interest-bearing liabilities240,214  224,283  258,566  196,631 
Average gross loans187,788  177,412  184,961  179,516 
Average deposits331,039  330,835  330,473  329,648 
Average equity39,172  34,028  38,623  33,402 
        
 End of period    
 6/30/2024 12/31/2023    
Credit Quality       
Non-performing loans459,494  492,242     
Non-performing loans to total loans0.24% 0.27%    
Non-performing loans to total assets0.10% 0.11%    
Allowance for credit losses to total loans2.29% 2.49%    
Nonperforming assets as a percentage of total loans and OREO0.24% 0.27%    
Allowance for credit losses to non-performing loans970.65% 907.20%    
        
Other Period-end Statistics       
Shareholders equity to total assets8.55% 8.40%    
Net loans to deposits55.79% 54.52%    
Non-interest bearing deposits to total deposits52.72% 52.26%    
Company leverage ratio9.82% 9.26%    
        
 

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