Chino Commercial Bancorp Reports Third Quarter Earnings

Written by Customer Service on . Posted in Public Companies.

CHINO, Calif., Oct. 20, 2023 (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 third quarter ended September 30, 2023. Net earnings for the third quarter of 2023, were $1.3 million, which remains consistent with the same quarter last year. Net earnings per basic and diluted share were $0.40 for the third quarter of 2023 and 2022, respectively.

Net earnings year-to-date increased by 8.17% or by $303 thousand, to $3.7 million, as compared to $3.4 million for the same period last year. Net earnings per basic and diluted share was $1.16 for the period ending September 30, 2023 and $1.06 for the same period last year.

Dann H. Bowman, President and Chief Executive Officer, stated, “The Bank’s operating performance in the third quarter and year-to-date was very strong. Loan quality remains solid,with the Bank having only one delinquent loan at quarter-end, and revenue was up significantly over the same period last year. Total assets reached an all time record in the third quarter, and we are 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 September 30, 2023, total assets were $465.8 million, an increase of $65.9 million or 16.49% over $399.8 million at December 31, 2022. Total deposits increased by $3.9 million or 1.2% to $341.4 million as of September 30, 2023, compared to $337.5 million as of December 31, 2022. At September 30, 2022, the Company’s core deposits represent 97.8% of the total deposits.

Gross loans decreased by $2.9 million or 1.65% to $178.2 million as of September 30, 2022, compared to $181.2 million as of December 31, 2022. The Bank had three non-performing loans for the quarter ended September 30, 2023, and two non-performing loans as of December 31, 2022. OREO properties remained at zero as of September 30, 2023 and December 31, 2022 respectively.

Earnings

The Company posted net interest income of $3.3 million for the three months ended September 30, 2023 and for the same quarter last year, respectively. Average interest-earning assets were $442.9 million with average interest-bearing liabilities of $235.8 million, yielding a net interest margin of 3.01% for the third 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 3.41% for the third quarter of 2022.

Non-interest income totaled $673.0 thousand for the third quarter of 2023, or an increase of 16.12% as compared with $579.6 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 September 30, 2023, and $2.0 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 third quarter of 2023 and $1.3 million for the same period last year.

Income tax expense was $503 thousand, which represents an decrease of $3 thousand or 0.6% for the three months ended September 30, 2023, as compared to $506 thousand for the three months ended September 30, 2022. The effective income tax rate for the third quarter of 2022 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.

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
  9/30/2023   12/31/2022
  unaudited   audited
Assets      
Cash and due from banks $ 104,561,071     $ 36,436,018  
Cash and cash equivalents   104,561,071       36,436,018  
Fed Funds Sold   2,300       –  
    2,300       –  
       
Investment securities available for sale, net of zero allowance for credit losses   6,087,441       6,347,231  
Investment securities held to maturity, net of zero allowance for credit losses   161,749,315       160,668,959  
Total Investments   167,836,756       167,016,191  
Loans held for investment, net of allowance for credit losses of $4,444,904 in 2023, and $4,100,516 in 2022   173,224,506       176,555,783  
Stock investments, restricted, at cost   3,126,100       2,045,200  
Fixed assets, net   5,515,355       5,626,850  
Accrued interest receivable   1,286,041       1,153,613  
Bank owned life insurance   8,197,290       8,054,491  
Other assets   2,021,278       2,947,830  
Total assets $ 465,770,697     $ 399,835,974  
       
Liabilities      
Deposits      
Noninterest-bearing   185,148,633       204,189,323  
Interest-bearing   156,230,416       133,263,940  
Total deposits   341,379,049       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   1,569,455       124,947  
Other liabilities   1,986,510       1,815,062  
Total liabilities   430,028,014       367,486,270  
       
Shareholders’ Equity      
Common stock, no par value, 10,000,000 shares authorized and 3,211,981 shares issued and outstanding at September 30, 2023 and December 31, 2022   10,502,558       10,502,558  
Retained earnings   27,694,744       24,269,527  
Accumulated other comprehensive loss – unrecognized loss on available for sale, net of taxes   (2,454,619 )     (2,422,382 )
Total shareholders’ equity   35,742,683       32,349,703  
Total liabilities and shareholders’ equity $ 465,770,697     $ 399,835,974  
       

Chino Commercial Bankcorp and Subsidiary
Consolidated Statements of Net Income
               
  For the three month ended   For the nine month ended
  30-Sep   30-Sep
    2023       2022       2023       2022  
  (unaudited)   (unaudited)   (unaudited)   (unaudited)
Interest Income              
Interest and fees on loans   2,467,400       2,289,166       7,245,563       7,193,378  
Interest on investment securities   1,166,387       1,004,274       3,444,135       2,196,498  
Other interest income   1,410,450       344,108       2,990,487       580,703  
Total interest income   5,044,237       3,637,548       13,680,184       9,970,579  
               
Interest Expense              
Interest on deposits   841,282       86,555       1,835,134       177,876  
Interest on borrowings   877,179       222,041       2,112,955       641,264  
Total interest expense   1,718,460       308,597       3,948,089       819,140  
               
Net Interest Income   3,325,776       3,328,951       9,732,096       9,151,439  
Provision For Loan Losses   6,578       93,457       (81,806 )     135,987  
Net Interest Income After Provision For Loan Losses   3,319,198       3,235,495       9,813,901       9,015,452  
               
Noninterest Income              
Service charges and fees on deposit accounts   424,453       324,008       1,184,329       943,114  
Interchange fees   106,418       130,022       314,803       364,397  
Earnings from bank-owned life insurance   48,677       46,724       142,799       135,876  
Other miscellaneous income   93,502       78,876       271,651       209,345  
Total noninterest income   673,049       579,630       1,913,582       1,652,732  
               
Noninterest Expense              
Salaries and employee benefits   1,381,721       1,266,765       4,101,388       3,702,106  
Occupancy and equipment   156,317       166,159       460,390       478,881  
Other expenses   674,654       603,331       1,984,139       1,729,437  
Total noninterest expense   2,212,691       2,036,255       6,545,917       5,910,424  
               
Income before income tax expense   1,779,556       1,778,870       5,181,566       4,757,760  
Provision for income taxes   503,424       506,530       1,470,859       1,350,354  
Net Income $ 1,276,132     $ 1,272,340     $ 3,710,707     $ 3,407,406  
Basic earnings per share $ 0.40     $ 0.40     $ 1.16     $ 1.06  
Diluted earnings per share $ 0.40     $ 0.40     $ 1.16     $ 1.06  
               

Chino Commercial Bankcorp and Subsidiary
Financial Highlights
   
  For the three month ended  
  30-Sep   30-Sep
Key Financial Ratios   2023       2022       2023       2022  
(unaudited)              
Annualized return on average equity   14.46 %     16.62 %     14.53 %     15.20 %
Annualized return on average assets   1.10 %     1.23 %     1.13 %     1.13 %
Net interest margin   3.01 %     3.41 %     3.11 %     3.21 %
Core efficiency ratio   55.33 %     52.10 %     56.21 %     54.71 %
Net chargeoffs/(recoveries) to average loans   0.001 %     -0.008 %     -0.017 %     -0.031 %
               
Average Balances              
(thousands, unaudited)              
Average assets   463,977       413,023       439,669       402,883  
Average interest-earning assets   442,867       391,582       418,587       381,264  
Average interest-bearing liabilities   235,812       163,224       209,835       157,915  
Average gross loans   178,251       176,252       179,089       175,436  
Average deposits   340,261       352,419       333,225       342,936  
Average equity   35,312       30,614       34,046       29,887  
               
  End of period        
  9/30/2023   12/31/2022        
Credit Quality              
Non-performing loans   520,726       404,095          
Non-performing loans to total loans   0.29 %     0.22 %        
Non-performing loans to total assets   0.11 %     0.10 %        
Allowance for credit losses to total loans   2.50 %     2.26 %        
Nonperforming assets as a percentage of total loans and OREO   0.29 %     0.22 %        
Allowance for credit losses to non-performing loans   854.56 %     1014.74 %        
               
Other Period-end Statistics              
Shareholders equity to total assets   7.67 %     7.92 %        
Net loans to deposits   50.74 %     52.32 %        
Non-interest bearing deposits to total deposits   54.24 %     60.51 %        
Company Leverage Ratio   8.90 %     8.12 %        
               

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