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Chino Commercial Bancorp Reports 42% Increase in Net Earnings

Chino Commercial Bancorp
Chino Commercial Bancorp

CHINO, Calif., July 22, 2022 (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, 2022. Net earnings for the second quarter of 2022, were $1.2 million, or an increase of 42.4%, as compared with earnings of $867 thousand for the same quarter last year. Net earnings per basic and diluted share was $0.46 for the second quarter of 2022, and $0.32 for the same quarter last year.

Dann H. Bowman, President and Chief Executive Officer, stated, “Despite the setbacks of the last two years, the economy of the Inland Empire appears to be rebounding. We are excited about the opportunities for growth and expansion of the Bank as we offer new products and services to help small businesses to grow and prosper.”

Financial Condition

At June 30, 2022, total assets were $406.8 million, an increase of $28.3 million or 7.5% over $378.5 million at December 31, 2021. Total deposits increased by $28.2 million or 8.8% to $347.1 million as of June 30, 2022, compared to $318.9 million as of December 31, 2021. At June 30, 2022, the Company’s core deposits represent 98.4% of the total deposits.

Gross loans decreased by 2.1% or $3.7 million as of June 30, 2022 to $172 million as compared with $176.2 million at December 31, 2021, primarily attributed to continued payoffs of PPP loans. The Bank had two non-performing loans for the quarter ended June 30, 2022, and one non-performing loan as of December 31, 2021.   OREO properties remained at zero as of June 30, 2022 and December 31, 2021 respectively.

Earnings

The Company posted net interest income of $3.3 million for the three months ended June 30, 2022 and $2.6 million for the same quarter last year. Average interest-earning assets were $385.4 million with average interest-bearing liabilities of $154.5 million, yielding a net interest margin of 3.43% for the second quarter of 2022, as compared to the average interest-earning assets of $326 million with average interest-bearing liabilities of $143.8 million, yielding a net interest margin of 3.17% for the second quarter of 2021.

Non-interest income totaled $594.5.3 thousand for the second quarter of 2022, or an increase of 12.9% as compared with $526.4 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 $1.9 million for the three months ended June 30, 2022, and $1.7 million for the same period last year. The largest component of general and administrative expenses was salary and benefits expense of $1.2 million for the second quarter of 2022 and $1.0 million for the same period last year.

Income tax expense was $492 thousand which represents an increase of $150 thousand or 44% for the three months ended June 30, 2022, as compared to $342 thousand for the three months ended June 30, 2021. The effective income tax rate for the second quarter of 2022 and 2021 were approximately 28.5% and 28.3% respectively.

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 BANCORP

CONSOLIDATED BALANCE SHEET

June 30, 2022 and 2021

 

 

June 30, 2022

 

December 31, 2021

 

(unaudited)

 

(audited)

ASSETS:

 

 

 

Cash and due from banks

$

65,532,718

 

 

$

135,593,445

 

Federal funds sold

 

-

 

 

 

-

 

Total cash and cash equivalents

 

65,532,718

 

 

 

135,593,445

 

 

 

 

 

 

 

-

 

 

 

Investment securities available for sale

 

6,754,523

 

 

 

40,270,538

 

Investment securities held to maturity

 

147,370,317

 

 

 

12,435,291

 

Total investments

 

154,124,840

 

 

 

52,705,829

 

Loans

 

 

 

Construction

 

718,156

 

 

 

414,072

 

Real estate

 

139,783,238

 

 

 

125,894,826

 

Commercial

 

31,847,131

 

 

 

48,133,781

 

Installment

 

138,524

 

 

 

1,741,267

 

Gross loans

 

172,487,049

 

 

 

176,183,946

 

Unearned fees and discounts

 

(605,511

)

 

 

(1,419,084

)

Loans net of unearned fees and discount

 

171,881,538

 

 

 

174,764,862

 

Allowance for loan losses

 

(3,969,967

)

 

 

(3,888,480

)

Net loans

 

167,911,571

 

 

 

170,876,382

 

 

 

 

 

Fixed assets, net

 

5,760,131

 

 

 

5,897,342

 

Accrued interest receivable

 

1,021,469

 

 

 

877,104

 

Stock investments, restricted, at cost

 

2,045,200

 

 

 

7,871,339

 

Bank-owned life insurance

 

7,960,490

 

 

 

2,045,200

 

Other assets

 

2,490,260

 

 

 

2,647,812

 

Total assets

$

406,846,679

 

 

$

378,514,453

 

 

 

 

 

LIABILITIES:

 

 

 

Deposits

 

 

 

Non-interest bearing

$

214,792,565

 

 

$

195,274,304

 

Interest bearing

 

 

 

NOW and money market

 

91,053,995

 

 

 

85,144,889

 

Savings

 

30,443,494

 

 

 

25,147,965

 

Time deposits less than $250,000

 

8,223,753

 

 

 

3,695,546

 

Time deposits of $250,000 or greater

 

2,574,278

 

 

 

9,616,481

 

Total deposits

 

347,088,085

 

 

 

318,879,185

 

 

 

 

 

Accrued interest payable

 

117,711

 

 

 

130,327

 

Borrowings from Federal Home Loan Bank (FHLB)

 

15,000,000

 

 

 

15,000,000

 

Accrued expenses & other payables

 

1,597,793

 

 

 

1,817,705

 

Subordinated debt

 

10,000,000

 

 

 

10,000,000

 

Subordinated notes payable to subsidiary trust

 

3,093,000

 

 

 

3,093,000

 

Total liabilities

 

376,896,589

 

 

 

348,920,217

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 2,676,799 shares at June 30, 2022 and December 31, 2021, respectively.

 

10,502,558

 

 

 

10,502,557

 

Retained earnings

 

21,691,938

 

 

 

19,556,872

 

Accumulated other comprehensive income/(loss)

 

(2,244,406

)

 

 

(465,193

)

Total shareholders' equity

 

29,950,090

 

 

 

29,594,236

 

Total liabilities & shareholders' equity

$

406,846,679

 

 

$

378,514,453

 

 

 

 

 



CHINO COMMERCIAL BANCORP

CONSOLIDATED STATEMENTS OF NET INCOME

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the six months ended

 

June 30

 

June 30

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

Interest income

 

 

 

 

 

 

 

Interest and fee income on loans

$

2,591,015

 

$

2,536,482

 

$

4,904,212

 

$

5,184,945

Interest on federal funds sold and FRB deposits

 

121,723

 

 

23,835

 

 

174,910

 

 

40,100

Interest on time deposits in banks

 

-

 

 

-

 

 

-

 

 

-

Interest on investment securities

 

842,810

 

 

218,100

 

 

1,192,224

 

 

431,543

Total interest income

 

3,555,548

 

 

2,778,417

 

 

6,271,346

 

 

5,656,588

 

 

 

 

 

 

 

 

Interest Expense

 

 

 

 

 

 

 

Interest on deposits

 

48,804

 

 

48,752

 

 

91,321

 

 

98,546

Other borrowings

 

212,719

 

 

155,818

 

 

419,222

 

 

277,882

Total interest expense

 

261,523

 

 

204,570

 

 

510,543

 

 

376,428

Net interest income

 

3,294,025

 

 

2,573,847

 

 

5,760,803

 

 

5,280,160

Provision for loan losses

 

250,000

 

 

170,000

 

 

50,000

 

 

370,000

 

 

 

 

 

 

 

 

Net interest income after provision for loan losses

 

3,044,025

 

 

2,403,847

 

 

5,710,803

 

 

4,910,160

 

 

 

 

 

 

 

 

Non-interest income

 

 

 

 

 

 

 

Service charges on deposit accounts

 

444,237

 

 

391,238

 

 

853,482

 

 

739,336

Other miscellaneous income

 

71,781

 

 

80,061

 

 

130,469

 

 

141,777

Dividend income from restricted stock

 

33,460

 

 

23,917

 

 

61,686

 

 

47,025

Income from bank-owned life insurance

 

45,018

 

 

31,162

 

 

89,151

 

 

61,726

Total non-interest income

 

594,496

 

 

526,378

 

 

1,134,788

 

 

989,864

 

 

 

 

 

 

 

 

Non-interest expenses

 

 

 

 

 

 

 

Salaries and employee benefits

 

1,191,030

 

 

1,032,909

 

 

2,435,342

 

 

2,081,133

Occupancy and equipment

 

152,959

 

 

151,628

 

 

312,722

 

 

307,914

Data and item processing

 

190,698

 

 

164,107

 

 

372,179

 

 

320,655

Advertising and marketing

 

25,704

 

 

27,236

 

 

75,521

 

 

54,420

Legal and professional fees

 

43,770

 

 

46,167

 

 

87,795

 

 

90,432

Regulatory assessments

 

46,430

 

 

36,561

 

 

89,098

 

 

70,041

Insurance

 

10,124

 

 

10,106

 

 

20,053

 

 

19,929

Directors' fees and expenses

 

32,040

 

 

32,880

 

 

64,200

 

 

65,160

Other expenses

 

219,000

 

 

219,444

 

 

409,791

 

 

514,181

Total non-interest expenses

 

1,911,755

 

 

1,721,038

 

 

3,866,701

 

 

3,523,865

Income before income tax expense

 

1,726,766

 

 

1,209,187

 

 

2,978,890

 

 

2,376,159

Income tax expense

 

491,913

 

 

341,717

 

 

843,824

 

 

670,277

Net income

$

1,234,853

 

$

867,470

 

$

2,135,066

 

$

1,705,882

 

 

 

 

 

 

 

 

Basic earnings per share

$

0.46

 

$

0.32

 

$

0.80

 

$

0.64

Diluted earnings per share

$

0.46

 

$

0.32

 

$

0.80

 

$

0.64

 

 

 

 

 

 

 

 



 

For the three months ended

 

For the six months ended

 

June 30

 

June 30

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

KEY FINANCIAL RATIOS

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

Annualized return on average equity

 

17.68

%

 

 

13.00

%

 

 

15.00

%

 

 

12.69

%

Annualized return on average assets

 

1.22

%

 

 

0.99

%

 

 

1.07

%

 

 

1.01

%

Net interest margin

 

3.43

%

 

 

3.17

%

 

 

3.09

%

 

 

3.37

%

Core efficiency ratio

 

49.16

%

 

 

55.51

%

 

 

56.07

%

 

 

56.20

%

Net chargeoffs/(recoveries) to average loans

 

-0.011

%

 

 

-0.008

%

 

 

-0.02

%

 

 

-0.02

%

 

 

 

 

 

 

 

 

AVERAGE BALANCES

 

 

 

 

 

 

 

(thousands, unaudited)

 

 

 

 

 

 

 

Average assets

$

405,447

 

 

$

350,226

 

 

$

397,719

 

 

$

338,983

 

Average interest-earning assets

$

385,416

 

 

$

325,987

 

 

$

376,406

 

 

$

315,817

 

Average gross loans

$

175,736

 

 

$

196,470

 

 

$

175,021

 

 

$

196,228

 

Average deposits

$

355,910

 

 

$

303,611

 

 

$

348,217

 

 

$

291,780

 

Average equity

$

27,942

 

 

$

26,684

 

 

$

28,466

 

 

$

26,886

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY

End of period

 

 

 

 

(unaudited)

June 30, 2022

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans

$

453,427

 

 

$

115,434

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans to total loans

 

0.26

%

 

 

0.07

%

 

 

 

 

Non-performing loans to total assets

 

0.11

%

 

 

0.03

%

 

 

 

 

Allowance for loan losses to total loans

 

2.30

%

 

 

2.21

%

 

 

 

 

Nonperforming assets as a percentage of total loans and OREO

 

0.26

%

 

 

0.07

%

 

 

 

 

Allowance for loan losses to non-performing loans

 

875.55

%

 

 

3368.57

%

 

 

 

 

 

 

 

 

 

 

 

 

OTHER PERIOD-END STATISTICS

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

Shareholders equity to total assets

 

7.36

%

 

 

7.82

%

 

 

 

 

Net loans to deposits

 

48.38

%

 

 

53.59

%

 

 

 

 

Non-interest bearing deposits to total deposits

 

61.88

%

 

 

61.24

%

 

 

 

 

Total capital to total risk-weighted assets

 

22.74

%

 

 

18.30

%

 

 

 

 

Tier 1 capital to total risk-weighted assets

 

26.12

%

 

 

20.16

%

 

 

 

 

Company Leverage Ratio

 

8.16

%

 

 

8.84

%