Chino Commercial Bancorp Reports 7% Increase in Net Earnings

Chino Commercial Bancorp

CHINO, Calif., April 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 first quarter ended March 31, 2022. Net earnings for the first quarter of 2022, were $900 thousand, or an increase of 7.4%, as compared with earnings of $838 thousand for the same quarter last year. Net earnings per basic and diluted share was $0.34 for the first quarter of 2022, and $0.31 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 March 31, 2022, total assets were $412.8 million, an increase of $34.3 million or 9.1% over $378.5 million at December 31, 2021. Total deposits increased by $34.8 million or 10.1% to $353.7 million as of March 31, 2022, compared to $318.9 million as of December 31, 2021. At March 31, 2022, the Company’s core deposits represent 98.4% of the total deposits.

Gross loans remained at $176 million both at March 31, 2022 and as of December 31, 2021. The Bank had two non-performing loans for the quarter ended March 31, 2022, and one non-performing loan as of December 31, 2021. OREO properties remained at zero as of March 31, 2022 and December 31, 2021 respectively.

Earnings

The Company posted net interest income of $2.7 million for the three months ended March 31, 2022 and $2.5 million for the same quarter last year. Average interest-earning assets were $367.3 million with average interest-bearing liabilities of $149.9 million, yielding a net interest margin of 2.72% for the first quarter of 2022, as compared to the average interest-earning assets of $305.5 million with average interest-bearing liabilities of $138.6 million, yielding a net interest margin of 3.59% for the first quarter of 2021.

Non-interest income totaled $540.3 thousand for the first quarter of 2022, or an increase of 16.6% as compared with $463.5 thousand earned during the same quarter last year. The majority of the increase is attribute to service charges on deposit accounts and other fees.

General and administrative expenses were $2.0 million for the three months ended March 31, 2022, and $1.8 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 first quarter of 2022 and $1.0 million for the same period last year.

Income tax expense was $352 thousand which represents an increase of $23 thousand or 7.4% for the three months ended March 31, 2022, as compared to $328.6 thousand for the three months ended March 31, 2021. The effective income tax rate for the first quarter of 2022 and 2021 were approximately 28.1% and 28.2% 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
	March 31, 2022 and 2021
		March 31, 2022				December 31, 2021
		(unaudited)				(audited)
	ASSETS:
	Cash and due from banks	$	89,431,882			$	135,593,445
	Federal funds sold		-				-
	Total cash and cash equivalents		89,431,882				135,593,445
	Investment securities available for sale		7,295,369				40,270,538
	Investment securities held to maturity		125,048,973				12,435,291
	Total investments		132,344,342				52,705,829
	Loans
	Construction		414,072				414,072
	Real estate		130,638,340				125,894,826
	Commercial		44,930,167				48,133,781
	Installment		142,574				1,741,267
	Gross loans		176,125,153				176,183,946
	Unearned fees and discounts		(1,042,561	)			(1,419,084	)
	Loans net of unearned fees and discount		175,082,592				174,764,862
	Allowance for loan losses		(3,702,953	)			(3,888,480	)
	Net loans		171,379,639				170,876,382
	Fixed assets, net		5,825,761				5,897,342
	Accrued interest receivable		1,030,047				877,104
	Stock investments, restricted, at cost		2,045,200				7,871,339
	Bank-owned life insurance		7,915,472				2,045,200
	Other assets		2,825,788				2,647,812
	Total assets	$	412,798,131			$	378,514,453
	LIABILITIES:
	Deposits
	Non-interest bearing	$	224,198,426			$	195,274,304
	Interest bearing
	NOW and money market		93,314,320				85,144,889
	Savings		24,666,318				25,147,965
	Time deposits less than $250,000		8,954,762				3,695,546
	Time deposits of $250,000 or greater		2,571,046				9,616,481
	Total deposits		353,704,872				318,879,185
	Accrued interest payable		179,534				130,327
	Borrowings from Federal Home Loan Bank (FHLB)		15,000,000				15,000,000
	Accrued expenses & other payables		1,781,243				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		383,758,649				348,920,217
	SHAREHOLDERS’ EQUITY
	Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 2,676,799 shares at March 31, 2022 and December 31, 2021, respectively.		10,502,558				10,502,557
	Retained earnings		20,457,085				19,556,872
	Accumulated other comprehensive income/(loss)		(1,920,161	)			(465,193	)
	Total shareholders’ equity		29,039,482				29,594,236
	Total liabilities & shareholders’ equity	$	412,798,131			$	378,514,453

CHINO COMMERCIAL BANCORP
CONSOLIDATED STATEMENTS OF NET INCOME
	For the three months ended
	March 31
		2022			2021
	(unaudited)				(unaudited)
Interest income
Interest and fee income on loans	$	2,313,197			$	2,648,462
Interest on federal funds sold and FRB deposits		53,187				16,265
Interest on time deposits in banks		-				-
Interest on investment securities		349,414				213,442
Total interest income		2,715,798				2,878,169
Interest Expense
Interest on deposits		42,517				49,794
Other borrowings		206,504				122,064
Total interest expense		249,021				171,858
Net interest income		2,466,777				2,706,311
Provision for loan losses		(200,000	)			200,000
Net interest income after provision for loan losses		2,666,777				2,506,311
Non-interest income
Service charges on deposit accounts		409,245				348,098
Other miscellaneous income		58,689				61,715
Dividend income from restricted stock		28,226				23,108
Income from bank-owned life insurance		44,133				30,564
Total non-interest income		540,293				463,485
Non-interest expenses
Salaries and employee benefits		1,244,311				1,048,224
Occupancy and equipment		159,763				156,286
Data and item processing		181,481				156,549
Advertising and marketing		23,798				20,337
Legal and professional fees		44,025				44,265
Regulatory assessments		42,668				33,480
Insurance		9,930				9,823
Directors’ fees and expenses		32,160				32,280
Other expenses		216,810				301,580
Total non-interest expenses		1,954,946				1,802,824
Income before income tax expense		1,252,124				1,166,972
Income tax expense		351,911				328,560
Net income	$	900,213			$	838,412
Basic earnings per share	$	0.34			$	0.31
Diluted earnings per share	$	0.34			$	0.31

		For the three months ended
		March 31
			2022				2021
KEY FINANCIAL RATIOS
(unaudited)
Annualized return on average equity			12.41	%			12.38	%
Annualized return on average assets			0.92	%			1.02	%
Net interest margin			2.72	%			3.59	%
Core efficiency ratio			65.01	%			56.88	%
Net chargeoffs/(recoveries) to average loans			-0.011	%			-0.008	%
AVERAGE BALANCES
(thousands, unaudited)
Average assets		$	389,889			$	327,614
Average interest-earning assets		$	367,297			$	305,535
Average gross loans		$	174,298			$	195,983
Average deposits		$	340,439			$	270,019
Average equity		$	29,013			$	27,091
CREDIT QUALITY		End of period
(unaudited)			March 31, 2022			December 31, 2021
Non-performing loans		$	453,645			$	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			2.10	%			2.21	%
Nonperforming assets as a percentage of total loans and OREO			0.26	%			0.07	%
Allowance for loan losses to non-performing loans			816.27	%			3368.57	%
OTHER PERIOD-END STATISTICS
(unaudited)
Shareholders equity to total assets			7.03	%			7.82	%
Net loans to deposits			48.45	%			53.59	%
Non-interest bearing deposits to total deposits			63.39	%			61.24	%
Total capital to total risk-weighted assets			21.95	%			18.30	%
Tier 1 capital to total risk-weighted assets			25.08	%			20.16	%
Company Leverage Ratio			8.36	%			8.84	%