Chino Commercial Bancorp Reports Second Quarter Earnings


CHINO, Calif., July 21, 2023 (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, 2023. Net earnings for the second quarter of 2023, were $1.3 million, or an increase of 2.53%, as compared with earnings of $1.2 million for the same quarter last year. Net earnings per basic and diluted share was $0.39 for the second quarter of 2023, and $0.38 for the same quarter last year.

Net earnings year to date increased by 12.3% or by $300 thousand to $2.4 million, as compared to $2.1 million for the same period last year. Net earnings per basic and diluted share was $0.76 for the period ending June 30, 2023 and $0.76 for the same period last year.

Dann H. Bowman, President and Chief Executive Officer, stated, “The fundamentals of the Company remain strong, with the Bank having only one delinquent loan at quarter-end, and revenue up significantly over the same period last year. The Net Interest Margin for the Bank, as a percent, has contracted slightly as deposits re-price faster than earning assets, however, this compression has been partially overcome through increased total assets. In general, we are optimistic about the 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 June 30, 2023, total assets were $453.4 million, an increase of $53.5 million or 13.4% over $399.8 million at December 31, 2022. Total deposits decreased by $6.7 million or 2.0% to $330.8 million as of June 30, 2023, compared to $337.5 million as of December 31, 2022. At June 30, 2022, the Company’s core deposits represent 97.7% of the total deposits.

Gross loans decreased by $4.3 million or 2.37% to $177.0 million as of June 30, 2022, compared to $181.2 million as of December 31, 2022. The Bank had three non-performing loans for the quarter ended June 30, 2023, and two non-performing loans as of December 31, 2022.   OREO properties remained at zero as of June 30, 2023 and December 31, 2022 respectively.  

Earnings

The Company posted net interest income of $3.2 million for the three months ended June 30, 2023 and $3.3 million for the same quarter last year. The decrease is primarily attributed to non-reoccurring PPP loan fees recognized in the second quarter of 2022. Average interest-earning assets were $431.5 million with average interest-bearing liabilities of $224.3 million, yielding a net interest margin of 3.00% for the second quarter of 2023, as compared to the average interest-earning assets of $383.4 million with average interest-bearing liabilities of $157.5 million, yielding a net interest margin of 3.48% for the second quarter of 2022.

Non-interest income totaled $645.8 thousand for the second quarter of 2023, or an increase of 15.10% as compared with $561.0 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 June 30, 2023, and $1.9 million 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 second quarter of 2023 and $1.2 million for the same period last year.

Income tax expense was $504 thousand, which represents an increase of $11 thousand or 2.4% for the three months ended June 30, 2023, as compared to $492 thousand for the three months ended June 30, 2022. The effective income tax rate for the second quarter of 2022 and 2021 were approximately 28.5%, for both periods.

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.

 

Chino Commercial Bankcorp and Subsidiary
Consolidated Statements of Financial Condition
 
          As of
          6/30/2023  12/31/2022
          unaudited  audited
Assets            
 Cash and due from banks    $99,055,945   $36,436,018 
       Cash and cash equivalents     99,055,945    36,436,018 
              
 Fed Funds Sold       4,647    - 
           4,647    - 
              
 Investment securities available for sale , net of zero allowance for credit losses 6,517,757    6,347,231 
 Investment securities held to maturity , net of zero allowance for credit losses 155,865,013    160,668,959 
                       Total Investments     162,382,770    167,016,191 
 Loans held for investment, net of allowance for credit losses of      
    $4,444,921 in 2023, and $4,100,516 in 2022    172,014,468    176,555,783 
 Stock investments, restricted, at cost     3,126,100    2,045,200 
 Fixed assets, net      5,518,847    5,626,850 
 Accrued interest receivable     1,102,968    1,153,613 
 Bank owned life insurance     8,148,613    8,054,491 
 Other assets       2,012,556    2,947,830 
              
              
 Total assets      $453,366,914 $399,835,974
Liabilities            
 Deposits           
 Noninterest-bearing     187,740,177    204,189,323 
 Interest-bearing      143,061,127    133,263,940 
              
  Total deposits     330,801,304    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     853,137    124,947 
 Other liabilities       1,893,419    1,815,062 
              
  Total liabilities     418,640,860    367,486,270 
              
Shareholders' Equity         
 Common stock, no par value, 10,000,000 shares authorized      
    and 3,211,981 shares issued and outstanding       
    at June 30, 2023 and December 31, 2022    10,502,558    10,502,558 
 Retained earnings      26,421,206    24,269,527 
 Accumulated other comprehensive loss - unrecognized       
    loss on available for sale, net of taxes    (2,197,710)   (2,422,382)
  Total shareholders' equity    34,726,053    32,349,703 
  Total liabilities and shareholders' equity   $453,366,914   $399,835,974 
              

 

Chino Commercial Bankcorp and Subsidiary
Consolidated Statements of Net Income
      
          For the three month ended For the six month ended 
          30-Jun 30-Jun 
           2023   2022  2023   2022 
          (unaudited) (unaudited) (unaudited) (unaudited) 
Interest Income                
 Interest and fees on loans       2,388,004   2,591,015  4,778,163   4,904,212 
 Interest on investment securities      1,144,162   842,810  2,277,748   1,192,224 
 Other interest income       1,174,803   155,183  1,580,037   236,595 
                  
             Total interest income      4,706,968   3,589,007  8,635,948   6,333,031 
                  
Interest Expense                
 Interest on deposits       616,992   48,804  993,852   91,321 
 Interest on borrowings       864,373   212,719  1,235,776   419,222 
                  
             Total interest expense      1,481,364   261,522  2,229,628   510,543 
                  
Net Interest Income        3,225,604   3,327,485  6,406,320   5,822,488 
                  
Provision For Loan Losses        (90,520)  247,125  (88,384)  42,530 
                  
Net Interest Income After Provision For Loan Losses   3,316,124   3,080,360  6,494,704   5,779,958 
                  
Noninterest Income               
 Service charges and fees on deposit accounts  399,977   316,619  759,877   619,107 
 Interchange fees        105,226   127,618  208,385   234,375 
 Earnings from bank-owned life insurance   47,812   45,018  94,123   89,151 
 Other miscellaneous income      92,755   71,780  178,149   130,468 
                  
             Total noninterest income      645,770   561,035  1,240,533   1,073,101 
                  
Noninterest Expense               
 Salaries and employee benefits      1,366,733   1,191,030  2,719,668   2,435,342 
 Occupancy and equipment       150,482   152,959  304,074   312,722 
 Other expenses        675,019   570,640  1,309,485   1,126,106 
                  
             Total noninterest expense      2,192,234   1,914,629  4,333,226   3,874,169 
                  
Income before income tax expense       1,769,660   1,726,766  3,402,010   2,978,890 
Provision for income taxes        503,534   491,913  967,435   843,824 
                  
Net Income        $1,266,126$1,234,853$2,434,575$2,135,066
                  
Basic earnings per share       $0.39  $0.38 $0.76  $0.66 
                  
Diluted earnings per share      $0.39  $0.38 $0.76  $0.66 
                  

 

Chino Commercial Bankcorp and Subsidiary
Financial Highlights
   
   For the three month ended  
Key Financial Ratios2023  2022  2023  2022  
(unaudited)         
Annualized return on average equity14.88% 16.70% 14.58% 14.44% 
Annualized return on average assets1.12% 1.22% 1.14% 1.07% 
Net interest margin 3.00% 3.48% 1.75% 3.12% 
Core efficiency ratio56.63% 49.24% 56.18% 56.18% 
Net chargeoffs/(recoveries) to average loans-0.010% -0.011% -0.011% -0.022% 
           
Average Balances         
(thousands, unaudited)        
Average assets 452,401  405,447  427,314  397,719  
Average interest-earning assets431,476  383,414  406,246  376,011  
Average interest-bearing liabilities224,283  157,531  196,631  155,217  
Average gross loans177,412  175,736  179,516  175,021  
Average deposits 330,835  345,793  329,648  338,115  
Average equity 34,028  29,579  33,402  29,517  
           
   End of period     
   6/30/2023 12/31/2022     
Credit Quality         
Non-performing loans520,726  404,095      
Non-performing loans to total loans0.29% 0.22%     
Non-performing loans to total assets0.11% 0.10%     
Allowance for credit losses to total loans2.51% 2.26%     
Nonperforming assets as a percentage of total loans and OREO  0.29% 0.22%     
Allowance for credit losses to non-performing loans853.60% 1014.74%     
           
Other Period-end Statistics        
Shareholders equity to total assets7.66% 7.92%     
Net loans to deposits52.00% 52.32%     
Non-interest bearing deposits to total deposits56.75% 60.51%     
Company Leverage Ratio8.85% 8.12%     
           
 

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