Chino Commercial Bancorp Reports Record Earnings

Chino Commercial Bancorp

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	%