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Chino Commercial Bancorp Reports 77% Increase In Net Earnings

Chino Commercial Bancorp
Chino Commercial Bancorp

CHINO, Calif., Oct. 21, 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 third quarter ended September 30, 2022. Net earnings for the third quarter of 2022, were $1.3 million, or an increase of 77.2%, as compared with earnings of $718 thousand for the same quarter last year. Net earnings per basic and diluted share were $0.48 for the third quarter of 2022, and $0.27 for the same quarter last year.

Dann H. Bowman, President and Chief Executive Officer, stated, “The third quarter of 2022 marks a new record for the Company with total Deposits, total Revenue, and Net Earnings all reaching new record highs. The Bank’s value proposition remains very strong, and we continue to attract new customers every month.

Though the economy is showing signs of possible weakening, so far, we have not experienced a significant down-turn in credit quality. At the end of the quarter, the Bank had only one delinquent loan, no in-process foreclosures, and no OREO.”

Financial Condition

At September 30, 2022, total assets were $416.6 million, an increase of $38.1 million or 10.1% over $378.5 million at December 31, 2021. Total deposits increased by $37.0 million or 11.6% to $355.9 million as of September 30, 2022, compared to $318.9 million as of December 31, 2021. At September 30, 2022, the Company’s core deposits represent 98% of the total deposits.

Gross loans increased by 1.2% or $3.7 million as of September 30, 2022 to $178.3 million as compared with $176.2 million at December 31, 2021. The Bank had two non-performing loans for the quarter ended September 30, 2022, and one non-performing loan as of December 31, 2021.   OREO properties remained at zero as of September 30, 2022 and December 31, 2021 respectively.

Earnings

The Company posted net interest income of $3.3 million for the three months ended September 30, 2022 and $2.5 million for the same quarter last year. Average interest-earning assets were $393.5 million with average interest-bearing liabilities of $160.2 million, yielding a net interest margin of 3.33% for the third quarter of 2022, as compared to the average interest-earning assets of $334.5 million with average interest-bearing liabilities of $145.6 million, yielding a net interest margin of 2.91% for the third quarter of 2021.

Non-interest income totaled $608.3 thousand for the third quarter of 2022, or an increase of 11.7% as compared with $544.6 thousand earned during the same quarter last year. The majority of the increase was attributed to service charges on deposit accounts.

General and administrative expenses were $2.0 million for the three months ended September 30, 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 $1.3 million for the third quarter of 2022 and $1.1 million for the same period last year.

Income tax expense was $506.5 thousand which represents an increase of $233 thousand or 44% for the three months ended September 30, 2022, as compared to $273.4 thousand for the three months ended September 30, 2021. The effective income tax rate for the third quarter of 2022 and 2021 were approximately 28.5% and 27.6% 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, Senior 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

 

September 30, 2022 and 2021

 

 

 

 

September 30, 2022

 

December 31, 2021

 

 

(unaudited)

 

(audited)

 

ASSETS:

 

 

 

 

Cash and due from banks

$

57,195,216

 

 

$

135,593,445

 

 

Federal funds sold

 

-

 

 

 

-

 

 

Total cash and cash equivalents

 

57,195,216

 

 

 

135,593,445

 

 

 

 

 

 

 

Interest-bearing deposits in other banks

 

-

 

 

 

-

 

 

Investment securities available for sale

 

6,224,948

 

 

 

40,270,538

 

 

Investment securities held to maturity

 

160,080,875

 

 

 

12,435,291

 

 

Total investments

 

166,305,823

 

 

 

52,705,829

 

 

Loans

 

 

 

 

Construction

 

1,223,140

 

 

 

414,072

 

 

Real estate

 

145,313,932

 

 

 

125,894,826

 

 

Commercial

 

31,635,685

 

 

 

48,133,781

 

 

Installment

 

132,776

 

 

 

1,741,267

 

 

Gross loans

 

178,305,533

 

 

 

176,183,946

 

 

Unearned fees and discounts

 

(561,576

)

 

 

(1,419,084

)

 

Loans net of unearned fees and discount

 

177,743,957

 

 

 

174,764,862

 

 

Allowance for loan losses

 

(4,078,299

)

 

 

(3,888,480

)

 

Net loans

 

173,665,658

 

 

 

170,876,382

 

 

 

 

 

 

 

Fixed assets, net

 

5,695,525

 

 

 

5,897,342

 

 

Accrued interest receivable

 

1,022,524

 

 

 

877,104

 

 

Stock investments, restricted, at cost

 

2,045,200

 

 

 

7,871,339

 

 

Bank-owned life insurance

 

8,007,214

 

 

 

2,045,200

 

 

Other assets

 

2,661,018

 

 

 

2,647,812

 

 

Total assets

$

416,598,178

 

 

$

378,514,453

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

Deposits

 

 

 

 

Non-interest bearing

$

219,895,119

 

 

$

195,274,304

 

 

Interest bearing

 

 

 

 

NOW and money market

 

93,212,934

 

 

 

85,144,889

 

 

Savings

 

31,908,897

 

 

 

25,147,965

 

 

Time deposits less than $250,000

 

7,913,244

 

 

 

3,695,546

 

 

Time deposits of $250,000 or greater

 

2,920,458

 

 

 

9,616,481

 

 

Total deposits

 

355,850,652

 

 

 

318,879,185

 

 

 

 

 

 

 

Accrued interest payable

 

179,785

 

 

 

130,327

 

 

Borrowings from Federal Home Loan Bank (FHLB)

 

15,000,000

 

 

 

15,000,000

 

 

Accrued expenses & other payables

 

1,573,362

 

 

 

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

 

385,696,799

 

 

 

348,920,217

 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

10,502,558

 

 

 

10,502,557

 

 

Retained earnings

 

22,964,278

 

 

 

19,556,872

 

 

Accumulated other comprehensive income/(loss)

 

(2,565,457

)

 

 

(465,193

)

 

Total shareholders' equity

 

30,901,379

 

 

 

29,594,236

 

 

Total liabilities & shareholders' equity

$

416,598,178

 

 

$

378,514,453

 

 

 

 

 

 


CHINO COMMERCIAL BANCORP

CONSOLIDATED STATEMENTS OF NET INCOME

 

 

 

 

 

 

 

 

 

For the three months ended

 

For the nine months ended

 

September 30

 

September 30

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

Interest income

 

 

 

 

 

 

 

Interest and fee income on loans

$

2,289,166

 

$

2,458,482

 

$

7,193,378

 

$

7,643,426

Interest on federal funds sold and FRB deposits

 

315,415

 

 

42,915

 

 

490,324

 

 

83,015

Interest on time deposits in banks

 

-

 

 

-

 

 

-

 

 

-

Interest on investment securities

 

1,004,274

 

 

206,101

 

 

2,196,498

 

 

637,644

Total interest income

 

3,608,855

 

 

2,707,498

 

 

9,880,200

 

 

8,364,085

 

 

 

 

 

 

 

 

Interest Expense

 

 

 

 

 

 

 

Interest on deposits

 

86,555

 

 

46,825

 

 

177,876

 

 

145,370

Other borrowings

 

222,041

 

 

207,096

 

 

641,264

 

 

486,770

Total interest expense

 

308,596

 

 

253,921

 

 

819,140

 

 

632,140

Net interest income

 

3,300,259

 

 

2,453,577

 

 

9,061,060

 

 

7,731,945

Provision for loan losses

 

100,000

 

 

185,000

 

 

150,000

 

 

555,000

 

 

 

 

 

 

 

 

Net interest income after provision for loan losses

 

3,200,259

 

 

2,268,577

 

 

8,911,060

 

 

7,176,945

 

 

 

 

 

 

 

 

Non-interest income

 

 

 

 

 

 

 

Service charges on deposit accounts

 

454,030

 

 

394,024

 

 

1,307,511

 

 

1,133,360

Other miscellaneous income

 

78,877

 

 

81,984

 

 

209,346

 

 

223,760

Dividend income from restricted stock

 

28,693

 

 

25,903

 

 

90,379

 

 

72,928

Income from bank-owned life insurance

 

46,724

 

 

42,669

 

 

135,876

 

 

104,395

Total non-interest income

 

608,324

 

 

544,580

 

 

1,743,112

 

 

1,534,443

 

 

 

 

 

 

 

 

Non-interest expenses

 

 

 

 

 

 

 

Salaries and employee benefits

 

1,266,765

 

 

1,092,730

 

 

3,702,106

 

 

3,173,864

Occupancy and equipment

 

166,159

 

 

153,998

 

 

478,881

 

 

461,912

Data and item processing

 

183,504

 

 

170,018

 

 

555,683

 

 

490,673

Advertising and marketing

 

21,952

 

 

29,035

 

 

106,939

 

 

91,121

Legal and professional fees

 

44,850

 

 

49,355

 

 

132,645

 

 

137,995

Regulatory assessments

 

56,630

 

 

37,761

 

 

145,727

 

 

107,801

Insurance

 

10,320

 

 

10,106

 

 

30,373

 

 

30,035

Directors' fees and expenses

 

32,160

 

 

31,920

 

 

96,360

 

 

97,080

Other expenses

 

247,373

 

 

246,677

 

 

647,176

 

 

753,192

Total non-interest expenses

 

2,029,713

 

 

1,821,600

 

 

5,895,890

 

 

5,343,673

Income before income tax expense

 

1,778,870

 

 

991,557

 

 

4,758,282

 

 

3,367,715

Income tax expense

 

506,530

 

 

273,434

 

 

1,350,354

 

 

943,711

Net income

$

1,272,340

 

$

718,123

 

$

3,407,928

 

$

2,424,004

 

 

 

 

 

 

 

 

Basic earnings per share

$

0.48

 

$

0.27

 

$

1.27

 

$

0.91

Diluted earnings per share

$

0.48

 

$

0.27

 

$

1.27

 

$

0.91

 

 

 

 

 

 

 

 


 

 

For the three months ended

 

For the nine months ended

 

 

September 30

 

September 30

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

KEY FINANCIAL RATIOS

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

Annualized return on average equity

 

 

16.62

%

 

 

10.71

%

 

 

15.22

%

 

 

12.03

%

Annualized return on average assets

 

 

1.23

%

 

 

0.80

%

 

 

1.13

%

 

 

0.93

%

Net interest margin

 

 

3.33

%

 

 

2.91

%

 

 

3.17

%

 

 

3.21

%

Core efficiency ratio

 

 

51.93

%

 

 

60.76

%

 

 

54.57

%

 

 

57.67

%

Net chargeoffs/(recoveries) to average loans

 

 

-0.008

%

 

 

-0.011

%

 

 

-0.03

%

 

 

-0.03

%

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES

 

 

 

 

 

 

 

 

(thousands, unaudited)

 

 

 

 

 

 

 

 

Average assets

 

$

413,023

 

 

$

360,266

 

 

$

402,883

 

 

$

346,155

 

Average interest-earning assets

 

$

393,530

 

 

$

334,456

 

 

$

382,177

 

 

$

322,099

 

Average gross loans

 

$

176,252

 

 

$

180,478

 

 

$

175,436

 

 

$

190,920

 

Average deposits

 

$

362,549

 

 

$

311,254

 

 

$

353,047

 

 

$

298,413

 

Average equity

 

$

30,620

 

 

$

26,830

 

 

$

29,859

 

 

$

26,867

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CREDIT QUALITY

 

End of period

 

 

 

 

(unaudited)

 

September 30, 2022

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans

 

$

411,992

 

 

$

115,434

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing loans to total loans

 

 

0.23

%

 

 

0.07

%

 

 

 

 

Non-performing loans to total assets

 

 

0.10

%

 

 

0.03

%

 

 

 

 

Allowance for loan losses to total loans

 

 

2.29

%

 

 

2.21

%

 

 

 

 

Nonperforming assets as a percentage of total loans and OREO

 

 

0.23

%

 

 

0.07

%

 

 

 

 

Allowance for loan losses to non-performing loans

 

 

989.90

%

 

 

3368.57

%

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER PERIOD-END STATISTICS

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

Shareholders equity to total assets

 

 

7.42

%

 

 

7.82

%

 

 

 

 

Net loans to deposits

 

 

48.80

%

 

 

53.59

%

 

 

 

 

Non-interest bearing deposits to total deposits

 

 

61.79

%

 

 

61.24

%

 

 

 

 

Total capital to total risk-weighted assets

 

 

23.53

%

 

 

18.30

%

 

 

 

 

Tier 1 capital to total risk-weighted assets

 

 

27.18

%

 

 

20.16

%

 

 

 

 

Company Leverage Ratio

 

 

8.85

%

 

 

8.84

%