CHINO, Calif., Jan. 22, 2021 (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, 2020. Net earnings for the fourth quarter 2020, were $699 thousand, or an increase of 39.1%, as compared with earnings of $502 thousand for the same quarter last year. The increase in earnings is primarily attributed to the increase in loan interest and loan fee income. Net earnings per basic and diluted share was $0.31 for the fourth quarter of 2020, and $0.23 for the same quarter last year.

Dann H. Bowman, President and Chief Executive Officer, stated: “Despite the difficulty being experienced in our community because of COVID, the Bank has performed well during this time. By assisting small business customers and households, we have experienced a 37% increase in total assets, a 35% increase in total loans, and a 2.7% increase in net after tax earnings. Loan quality also remains very strong, with the Bank having no loan delinquencies and no foreclosed properties at year-end.

“We believe that during tough times like these, the Bank’s value proposition stands out the most, and we may have many more opportunities to gain new banking relationships. We have a great team, a great market, and we are excited about the prospects for the Company over the next several years.”

Financial Condition

At December 31, 2020, total assets were $314.8 million, an increase of $85.3 million or 37.2% over $229.5 million at December 31, 2019. Total deposits increased by 43.1% or $77.6 million to $257.7 million as of December 31, 2020, compared to $180.2 million as of December 31, 2019. At December 31, 2020, the Company’s core deposits represent 96.3% of the total deposits.

Gross loans increased by 35.5% or $51.3 million as of December 31, 2020 to $195.7 million, as compared with $144.4 million as of December 31, 2019. The Bank had one non-performing loan for the quarters ended December 31, 2020, and December 31, 2019. OREO properties remained at zero as of December 31, 2020 and December 31, 2019 respectively.

The increases in total assets, deposits and loans are attributed to Bank’s response to the overwhelming request of PPP loans. Overall, the Bank approved and funded 396 PPP loans with an outstanding balance of $46.7 million as of December 31, 2020.

Earnings

The Company posted net interest income of $2.3 million for the three months ended December 31, 2020 and $2.0 million for the same quarter last year. Average interest-earning assets were $292.2 million with average interest-bearing liabilities of $136.3 million, yielding a net interest margin of 3.66% for the fourth quarter of 2020, as compared to the average interest-earning assets of $177.3 million with average interest-bearing liabilities of $119.4 million, yielding a net interest margin of 4.41% for the fourth quarter of 2019.

Non-interest income totaled $440.2 thousand for the fourth quarter of 2020, or a decrease of 3.6% as compared with $456.6 thousand earned during the same quarter last year. The majority of the decrease is attribute to a significant decrease in overdraft fees.

General and administrative expenses were $1.8 million for the three months ended December 31, 2020, and $1.7 million for the same period last year. The largest component of general and administrative expenses was salary and benefits expense of $1.1 million for the fourth quarter of 2020 and $1.0 million thousand for the same period last year.

Income tax expense was $275.3 thousand which represents an increase of $78 thousand or 39.8% for the three months ended December 31, 2020, as compared to $197.0 thousand for the three months ended December 31, 2019. The effective income tax rate for the fourth quarter of 2020 and 2019 were approximately 28.6% and 28.5% respectively, and for the nine months ending December 31, 2020 and 2019, the effective income tax rates were 28.3% 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.

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
December 31, 2020 and December 31, 2019
 
 December 31, 2020 December 31, 2019
 (unaudited) (audited)
ASSETS:   
Cash and due from banks$58,075,217  $4,363,753 
Federal funds sold -   32,415,000 
Total cash and cash equivalents 58,075,217   36,778,753 
    
Interest-bearing deposits in other banks -   496,000 
Investment securities available for sale 32,370,042   7,977,936 
Investment securities held to maturity (fair value approximates   
$19,556,250 at December 31, 2020 and $21,683,834 at December 31, 2019) 18,626,525   28,367,056 
Total investments 50,996,567   36,840,992 
Loans   
Construction 1,014,462.00   - 
Real estate 119,302,116   115,633,626 
Commercial 75,237,752   28,522,543 
Installment 110,475   232,328 
Credit Cards 0   - 
Gross loans 195,664,805   144,388,497 
Unearned fees and discounts (1,678,641)  (438,380)
Loans net of unearned fees and discount 193,986,164   143,950,117 
Allowance for loan losses (3,271,921)  (2,391,765)
Net loans 190,714,243   141,558,352 
    
Fixed assets, net 6,145,711   6,401,773 
Accrued interest receivable 1,013,732   619,856 
Stock investments, restricted, at cost 1,554,200   1,440,900 
Bank-owned life insurance 4,721,232   4,595,584 
Other assets 1,618,716   1,270,936 
Total assets$314,839,618  $229,507,145 
    
LIABILITIES:   
Deposits   
Non-interest bearing$145,433,815  $88,412,668 
Interest bearing   
NOW and money market 76,774,420   64,520,387 
Savings 21,466,856   12,209,281 
Time deposits less than $250,000 9,563,300   9,537,555 
Time deposits of $250,000 or greater 4,473,409   5,471,451 
Total deposits 257,711,800   180,151,342 
    
Accrued interest payable 137,487   203,246 
Borrowings from Federal Home Loan Bank (FHLB) 25,000,000   20,000,000 
Accrued expenses & other payables 1,674,150   1,686,979 
Subordinated notes payable to subsidiary trust 3,093,000   3,093,000 
Total liabilities 287,616,437   205,134,567 
    
SHAREHOLDERS' EQUITY   
Common stock, authorized 10,000,000 shares with no par value, issued and
outstanding 2,230,808 shares at December 31, 2020 and December 31, 2019,
respectively.
   
 10,502,558   10,502,557 
Retained earnings 16,428,258   13,803,528 
Accumulated other comprehensive income/(loss) 292,365   66,493 
Total shareholders' equity 27,223,181   24,372,578 
Total liabilities & shareholders' equity$314,839,618  $229,507,145 



CHINO COMMERCIAL BANCORP
CONSOLIDATED STATEMENTS OF NET INCOME
        
 For the three months ended For the twelve months ended
 December 31 December 31
 2020 2019 2020 2019
 (unaudited) (unaudited) (unaudited) (unaudited)
Interest income       
Interest and fee income on loans$2,624,645 $1,982,610  $9,207,404 $7,884,573
Interest on federal funds sold and FRB deposits 14,194  184,875   154,934  510,650
Interest on time deposits in banks -  3,219   1,856  35,077
Interest on investment securities 225,264  167,707   912,489  1,078,908
Total interest income 2,864,103  2,338,411   10,276,683  9,509,208
        
Interest Expense       
Interest on deposits 53,723  230,243   369,628  935,215
Other borrowings 124,947  139,476   511,815  413,749
Total interest expense 178,670  369,719   881,443  1,348,964
Net interest income 2,685,433  1,968,692   9,395,240  8,160,244
Provision for loan losses 400,000  -   770,000  40,000
        
Net interest income after provision for loan losses 2,285,433  1,968,692   8,625,240  8,120,244
        
Non-interest income       
Service charges on deposit accounts 342,342  382,839   1,293,966  1,530,853
Other miscellaneous income 47,642  24,567   163,513  190,565
Dividend income from restricted stock 18,421  17,267   71,664  88,281
Income from bank-owned life insurance 31,840  31,901   125,648  110,699
Total non-interest income 440,245  456,574   1,654,791  1,920,398
        
Non-interest expenses       
Salaries and employee benefits 1,064,780  1,002,259   4,058,653  3,941,211
Occupancy and equipment 160,415  155,473   623,102  632,501
Data and item processing 147,958  123,409   589,351  469,176
Advertising and marketing 33,869  30,867   144,167  97,035
Legal and professional fees 76,075  217,088   209,565  430,050
Regulatory assessments 33,480  (12,940)  116,167  81,578
Insurance 10,567  10,295   38,380  37,911
Directors' fees and expenses 32,040  32,742   130,054  137,142
Other expenses 192,528  166,709   692,057  675,289
Total non-interest expenses 1,751,712  1,725,902   6,601,496  6,501,893
Income before income tax expense 973,966  699,364   3,678,535  3,538,749
Income tax expense 275,285  196,971   1,053,805  984,794
Net income$698,681 $502,393  $2,624,730 $2,553,955
        
Basic earnings per share$0.31 $0.23  $1.18 $1.14
Diluted earnings per share$0.31 $0.23  $1.18 $1.14



  For the three months ended For the nine months ended
  December 31 December 31
   2020   2019   2020   2019 
KEY FINANCIAL RATIOS        
(unaudited)        
Annualized return on average equity  11.37%  8.31%  10.69%  11.03%
Annualized return on average assets  0.89%  0.85%  0.92%  1.17%
Net interest margin  3.66%  4.41%  3.81%  4.46%
Core efficiency ratio  56.04%  71.16%  59.74%  64.50%
Net chargeoffs/(recoveries) to average loans  0.008%  0.002%  -0.07%  -0.05%
         
AVERAGE BALANCES        
(thousands, unaudited)        
Average assets $313,827  $235,723  $284,525  $219,167 
Average interest-earning assets $292,210  $177,259  $246,617  $183,108 
Average gross loans $192,418  $136,963  $173,927  $136,504 
Average deposits $253,908  $186,587  $224,971  $179,226 
Average equity $24,583  $24,182  $24,551  $23,156 
         
         
         
CREDIT QUALITY End of period    
(unaudited) December 31, 2020 December 31, 2019    
         
Non-performing loans $119,836  $120,423     
         
Non-performing loans to total loans  0.06%  0.08%    
Non-performing loans to total assets  0.04%  0.05%    
Allowance for loan losses to total loans  1.67%  1.66%    
Nonperforming assets as a percentage of total loans and OREO  0.06%  0.08%    
Allowance for loan losses to non-performing loans  2730.33%  1986.14%    
         
OTHER PERIOD-END STATISTICS        
(unaudited)        
Shareholders equity to total assets  8.65%  10.62%    
Net loans to deposits  74.00%  78.58%    
Non-interest bearing deposits to total deposits  56.43%  49.08%    
Community Bank Leverage Ratio  11.44%  13.74%