Chino Commercial Bancorp Reports Record Earnings
CHINO, Calif., Jan. 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 fourth quarter ended December 31, 2023. Net earnings year-to-date increased by 4.54% or by $224 thousand, to $4.9 million, as compared to $4.7 million for the same period last year. Net earnings per basic and diluted share was $1.54 for the period ending December 31, 2023 and $1.47 for the same period last year.
Net earnings for the fourth quarter of 2023, were $1.2 million, which represents a decrease of $79 thousand of 6.0% in comparison with the same quarter last year. Net earnings per basic and diluted share were $0.38 for the fourth quarter of 2023 and $0.41 for the same quarter in 2022, respectively.
Dann H. Bowman, President and Chief Executive Officer, stated, “We are very pleased with the Bank’s performance in 2023. Total net interest income reached an all-time high at $13 million, and net earnings also reached an all-time high at $4.9 million. Though loan growth was not as high as we had hoped, credit quality was very strong, with the Bank having only one delinquent loan at year-end, no pending foreclosures, and no OREO. We are very optimistic about additional opportunities for growth and expansion over the next several years. We believe the economic engine of the Inland Empire is strong and diverse, and the Bank is well positioned to help small business customers in our market.”
Financial Condition
At December 31, 2023, total assets were $446.4 million, an increase of $46.6 million or 11.65% over $399.8 million at December 31, 2022. Total deposits decreased by $17.7 million or 5.2% to $319.8 million as of December 31, 2023, compared to $337.5 million as of December 31, 2022. At December 31, 2023, the Company’s core deposits represent 97.8% of the total deposits.
Gross loans decreased by $1.8 million or 1.0% to $179.3 million as of December 31, 2023, compared to $181.2 million as of December 31, 2022. The Bank had three non-performing loans for the quarter ended December 31, 2023, and two non-performing loans as of December 31, 2022. OREO properties remained at zero as of December 31, 2023 and December 31, 2022 respectively.
Earnings
The Company posted net interest income of $3.3 million for the three months ended December 31, 2023 and $3.5 million for the same quarter last year, respectively. Average interest-earning assets were $386.4 million with average interest-bearing liabilities of $161.6 million, yielding a net interest margin of 2.98% for the fourth quarter of 2023, as compared to the average interest-earning assets of $391.6 million with average interest-bearing liabilities of $163.2 million, yielding a net interest margin of 3.57% for the fourth quarter of 2022.
Non-interest income totaled $677.6 thousand for the fourth quarter of 2023, or an increase of 16.16% as compared with $583.3 thousand earned during the same quarter last year. The majority of the increase is attributed to service charges on deposit accounts and other fees.
General and administrative expenses were $2.2 million for the three months ended December 31, 2023, and 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 fourth quarter of 2023 and for the same period last year.
Income tax expense was $491 thousand, which represents a decrease of $23 thousand or 4.51% for the three months ended December 31, 2023, as compared to $514 thousand for the three months ended December 31, 2022. The effective income tax rate for the fourth quarter of 2022 was approximately 28.6%, and 28.2% 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.
Contact: Dann H. Bowman, President and CEO or Melinda M. Milincu, Vice President and CFO, Chino Commercial Bancorp and Chino Commercial Bank, N.A., 14245 Pipeline Avenue, Chino, CA. 91710, (909) 393-8880.
| Chino Commercial Bankcorp and Subsidiary | |||||||||||
| Consolidated Statements of Financial Condition | |||||||||||
| As of | |||||||||||
| 12/31/2023 | 12/31/2022 | ||||||||||
| unaudited | audited | ||||||||||
| Assets | |||||||||||
| Cash and due from banks | $ | 35,503,719 | $ | 36,436,018 | |||||||
| Cash and cash equivalents | 35,503,719 | 36,436,018 | |||||||||
| Fed Funds Sold | 25,218 | – | |||||||||
| 25,218 | – | ||||||||||
| Investment securities available for sale , net of zero allowance for credit losses | 6,736,976 | 6,347,231 | |||||||||
| Investment securities held to maturity , net of zero allowance for credit losses | 208,506,305 | 160,668,959 | |||||||||
| Total Investments | 215,243,282 | 167,016,191 | |||||||||
| Loans held for investment, net of allowance for credit losses of | |||||||||||
| $4,465,622 in 2023, and $4,100,516 in 2022 | 174,352,294 | 176,555,783 | |||||||||
| Stock investments, restricted, at cost | 3,126,100 | 2,045,200 | |||||||||
| Fixed assets, net | 5,466,358 | 5,626,850 | |||||||||
| Accrued interest receivable | 1,439,178 | 1,153,613 | |||||||||
| Bank owned life insurance | 8,247,174 | 8,054,491 | |||||||||
| Other assets | 3,010,916 | 2,947,830 | |||||||||
| Total assets | $ | 446,414,238 | $ | 399,835,974 | |||||||
| Liabilities | |||||||||||
| Deposits | |||||||||||
| Noninterest-bearing | 167,131,411 | 204,189,323 | |||||||||
| Interest-bearing | 152,669,374 | 133,263,940 | |||||||||
| Total deposits | 319,800,786 | 337,453,262 | |||||||||
| Federal Home Loan Bank advances | 15,000,000 | 15,000,000 | |||||||||
| Federal Reserve Bank borrowings | 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 | 2,156,153 | 124,947 | |||||||||
| Other liabilities | 1,876,475 | 1,815,062 | |||||||||
| Total liabilities | 408,926,413 | 367,486,270 | |||||||||
| Shareholders’ Equity | |||||||||||
| Common stock, no par value, 10,000,000 shares authorized | |||||||||||
| and 3,211,981 shares issued and outstanding | |||||||||||
| at December 31, 2023 and December 31, 2022 | 10,502,558 | 10,502,558 | |||||||||
| Retained earnings | 28,920,732 | 24,269,527 | |||||||||
| Accumulated other comprehensive loss – unrecognized | |||||||||||
| loss on available for sale, net of taxes | (1,935,465 | ) | (2,422,382 | ) | |||||||
| Total shareholders’ equity | 37,487,824 | 32,349,703 | |||||||||
| Total liabilities and shareholders’ equity | $ | 446,414,238 | $ | 399,835,974 | |||||||
| Chino Commercial Bankcorp and Subsidiary | ||||||||||||||
| Consolidated Statements of Net Income | ||||||||||||||
| For the three month ended | For the twelve month ended | |||||||||||||
| 31-Dec | 31-Dec | |||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||
| Interest Income | ||||||||||||||
| Interest and fees on loans | 2,577,443 | 2,376,312 | 9,823,006 | 9,569,690 | ||||||||||
| Interest on investment securities | 1,364,796 | 1,127,397 | 4,808,931 | 3,323,894 | ||||||||||
| Other interest income | 1,159,255 | 387,625 | 4,149,741 | 968,329 | ||||||||||
| Total interest income | 5,101,493 | 3,891,334 | 18,781,678 | 13,861,913 | ||||||||||
| Interest Expense | ||||||||||||||
| Interest on deposits | 940,935 | 185,046 | 2,776,069 | 362,922 | ||||||||||
| Interest on borrowings | 877,294 | 233,400 | 2,990,249 | 874,663 | ||||||||||
| Total interest expense | 1,818,229 | 418,445 | 5,766,317 | 1,237,585 | ||||||||||
| Net Interest Income | 3,283,264 | 3,472,888 | 13,015,360 | 12,624,328 | ||||||||||
| Provision For Loan Losses | 1,366 | 7,115 | (80,440 | ) | 143,102 | |||||||||
| Net Interest Income After Provision For Loan Losses | 3,281,898 | 3,465,773 | 13,095,800 | 12,481,226 | ||||||||||
| Noninterest Income | ||||||||||||||
| Service charges and fees on deposit accounts | 421,554 | 342,658 | 1,605,884 | 1,285,773 | ||||||||||
| Interchange fees | 98,618 | 110,702 | 413,421 | 475,099 | ||||||||||
| Earnings from bank-owned life insurance | 49,884 | 47,276 | 192,683 | 183,152 | ||||||||||
| Other miscellaneous income | 107,569 | 82,694 | 379,220 | 292,039 | ||||||||||
| Total noninterest income | 677,625 | 583,331 | 2,591,208 | 2,236,063 | ||||||||||
| Noninterest Expense | ||||||||||||||
| Salaries and employee benefits | 1,377,483 | 1,398,248 | 5,478,872 | 5,100,354 | ||||||||||
| Occupancy and equipment | 144,224 | 158,265 | 604,614 | 637,146 | ||||||||||
| Other expenses | 721,205 | 673,572 | 2,705,344 | 2,403,009 | ||||||||||
| Total noninterest expense | 2,242,912 | 2,230,085 | 8,788,829 | 8,140,509 | ||||||||||
| Income before income tax expense | 1,716,612 | 1,819,020 | 6,898,178 | 6,576,780 | ||||||||||
| Provision for income taxes | 490,624 | 513,771 | 1,961,483 | 1,864,125 | ||||||||||
| Net Income | $ | 1,225,988 | $ | 1,305,249 | $ | 4,936,695 | $ | 4,712,655 | ||||||
| Basic earnings per share | $ | 0.38 | $ | 0.41 | $ | 1.54 | $ | 1.47 | ||||||
| Diluted earnings per share | $ | 0.38 | $ | 0.41 | $ | 1.54 | $ | 1.47 | ||||||
| Chino Commercial Bankcorp and Subsidiary | |||||||||||
| Financial Highlights | |||||||||||
| For the three month ended | |||||||||||
| 31-Dec | 31-Dec | ||||||||||
| Key Financial Ratios | 2023 | 2022 | 2023 | 2022 | |||||||
| (unaudited) | |||||||||||
| Annualized return on average equity | 13.50 | % | 16.56 | % | 14.26 | % | 15.55 | % | |||
| Annualized return on average assets | 1.07 | % | 1.28 | % | 1.11 | % | 1.17 | % | |||
| Net interest margin | 2.98 | % | 3.57 | % | 3.07 | % | 3.30 | % | |||
| Core efficiency ratio | 56.63 | % | 54.98 | % | 56.31 | % | 54.78 | % | |||
| Net chargeoffs/(recoveries) to average loans | -0.008 | % | -0.008 | % | -0.025 | % | -0.039 | % | |||
| Average Balances | |||||||||||
| (thousands, unaudited) | |||||||||||
| Average assets | 459,186 | 408,426 | 444,588 | 404,284 | |||||||
| Average interest-earning assets | 437,455 | 386,370 | 423,343 | 382,555 | |||||||
| Average interest-bearing liabilities | 238,822 | 161,659 | 217,141 | 158,859 | |||||||
| Average gross loans | 178,998 | 180,687 | 179,066 | 176,759 | |||||||
| Average deposits | 333,662 | 346,817 | 333,335 | 343,914 | |||||||
| Average equity | 36,315 | 31,526 | 34,618 | 30,300 | |||||||
| End of period | |||||||||||
| 12/31/2023 | 12/31/2022 | ||||||||||
| Credit Quality | |||||||||||
| Non-performing loans | 492,242 | 404,095 | |||||||||
| Non-performing loans to total loans | 0.27 | % | 0.22 | % | |||||||
| Non-performing loans to total assets | 0.11 | % | 0.10 | % | |||||||
| Allowance for credit losses to total loans | 2.49 | % | 2.26 | % | |||||||
| Nonperforming assets as a percentage of total loans and OREO | 0.27 | % | 0.22 | % | |||||||
| Allowance for credit losses to non-performing loans | 907.20 | % | 1014.74 | % | |||||||
| Other Period-end Statistics | |||||||||||
| Shareholders equity to total assets | 8.40 | % | 7.92 | % | |||||||
| Net loans to deposits | 54.52 | % | 52.32 | % | |||||||
| Non-interest bearing deposits to total deposits | 52.26 | % | 60.51 | % | |||||||
| Company Leverage Ratio | 9.26 | % | 8.12 | % | |||||||
