Chino Commercial Bancorp Reports 19% Increase in Net Earnings

Chino, California, UNITED STATES


CHINO, Calif., Jan. 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 fourth quarter, and year ended December 31, 2021. Net earnings for the fourth quarter of 2021, were $707 thousand, or an increase of 1.2%, as compared with earnings of $699 thousand for the same quarter last year. Net earnings per basic and diluted share was $0.26 for the fourth quarter of 2021, and for the same quarter last year.

Net earnings for the fiscal year ended December 31, 2021 increased by 19.3% or by $506 thousand to $3.1 million, as compared to $2.6 million for fiscal year 2020. Net earnings per basic and diluted share was $1.17 for the fiscal year 2021, and $0.98 for fiscal year 2020.

Dann H. Bowman, President and Chief Executive Officer, stated, “We are very pleased with the performance of the Bank during 2021, which ended the year with record levels of Deposits, Revenue, Earnings and Earnings per Share. As we begin to emerge from the Pandemic, we are optimistic about the business opportunities available to the Bank; and we are looking forward to 2022.”

Financial Condition

At December 31, 2021, total assets were $378.5 million, an increase of $63.7 million or 20.02% over $314.8 million at December 31, 2020. Total deposits increased by $61.2 million or 23.7% to $318.9 million as of December 31, 2021, compared to $257.7 million as of December 31, 2020. At December 31, 2021, the Company’s core deposits represent 97.9% of the total deposits.

Gross loans decreased by 10.0 % or $19.5 million as of December 31, 2021 to $176.2 million, as compared with $195.7 million as of December 31, 2020, primarily due to pay downs on loans made under the Payroll Protection Program.   The Bank had one non-performing loan for the quarters ended December 31, 2021, and December 31, 2020.   OREO properties remained at zero as of December 31, 2021 and December 31, 2020 respectively.

Earnings

The Company posted net interest income of $2.6 million for the three months ended December 31, 2021 and $2.9 million for the same quarter last year. Average interest-earning assets were $348.6 million with average interest-bearing liabilities of $145.9 million, yielding a net interest margin of 2.63% for the fourth quarter of 2021, as compared to the average interest-earning assets of $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.

Non-interest income totaled $606.2 thousand for the fourth quarter of 2021, or an increase of 15.9% as compared with $440.2 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 $1.9 million for the three months ended December 31, 2021, 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 fourth quarter of 2021 and $1.1 million for the same period last year.

Income tax expense was $259.1 thousand which represents a decrease of $16 thousand or 5.9% for the three months ended December 31, 2021, as compared to $275.3 thousand for the three months ended September 30, 2020. The effective income tax rate for the fourth quarter of 2021 and 2020 were approximately 26.8% 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.

    
CHINO COMMERCIAL BANCORP
CONSOLIDATED BALANCE SHEET
December 31, 2021 and 2020
 
 December 31, 2021 December 31, 2020
 (unaudited) (audited)
ASSETS:   
Cash and due from banks$135,593,445  $58,075,217 
Federal funds sold -   - 
Total cash and cash equivalents 135,593,445   58,075,217 
    
Interest-bearing deposits in other banks -   - 
Investment securities available for sale 40,270,538   32,370,042 
Investment securities held to maturity (fair value approximates   
$12,834,547 at December 31, 2021 and $19,556,250 at December 31, 2020) 12,435,291   18,626,525 
Total investments 52,705,829   50,996,567 
Loans   
Construction 414,072   1,014,462 
Real estate 119,542,970   119,302,116 
Commercial 56,078,174   75,237,752 
Installment 148,731   110,475 
Credit Cards 0   - 
Gross loans 176,183,947   195,664,805 
Unearned fees and discounts (1,419,084)  (1,678,642)
  Loans net of unearned fees and discount 174,764,863   193,986,163 
  Allowance for loan losses (3,888,480)  (3,271,921)
Net loans 170,876,383   190,714,242 
    
Fixed assets, net 5,897,342   6,145,711 
Accrued interest receivable 877,104   1,013,732 
Stock investments, restricted, at cost 2,045,200   1,554,200 
  Bank-owned life insurance 7,871,339   4,721,232 
Other assets 2,647,811   1,618,717 
Total assets$378,514,453  $314,839,618 
    
LIABILITIES:   
Deposits   
Non-interest bearing$195,274,304  $145,433,815 
Interest bearing   
NOW and money market 85,144,889   76,774,242 
Savings 25,147,966   21,467,034 
  Time deposits less than $250,000 9,616,481   4,473,409 
  Time deposits of $250,000 or greater 3,695,546   9,563,300 
Total deposits 318,879,186   257,711,800 
    
Accrued interest payable 130,327   137,487 
Borrowings from Federal Home Loan Bank (FHLB) 15,000,000   25,000,000 
Accrued expenses & other payables 1,817,704   1,674,150 
Subordinated debt 10,000,000   - 
Subordinated notes payable to subsidiary trust 3,093,000   3,093,000 
Total liabilities 348,920,217   287,616,437 
    
SHAREHOLDERS' EQUITY   
Common stock, authorized 10,000,000 shares with no par value, issued and
outstanding 2,676,799 shares at December 31, 2021 and December 31, 2020,
respectively.
   
   
 10,502,558   10,502,557 
Retained earnings 19,556,872   16,428,258 
  Accumulated other comprehensive income/(loss) (465,194)  292,366 
  Total shareholders' equity 29,594,236   27,223,181 
Total liabilities & shareholders' equity$378,514,453  $314,839,618 
    



        
CHINO COMMERCIAL BANCORP
CONSOLIDATED STATEMENTS OF NET INCOME
        
 For the three months ended For the 12 months ended
 December 31 December 31
  2021  2020  2021  2020
 (unaudited) (unaudited) (unaudited) (unaudited)
Interest income       
Interest and fee income on loans$2,271,284 $2,624,645 $9,914,710 $9,207,406
Interest on federal funds sold and FRB deposits 47,599  14,194  130,615  154,934
Interest on time deposits in banks -  -  -  1,856
Interest on investment securities 242,681  225,264  880,324  912,489
Total interest income 2,561,564  2,864,103  10,925,649  10,276,685
        
Interest Expense       
Interest on deposits 42,090  53,723  187,460  369,628
Other borrowings 207,193  124,947  693,963  511,815
Total interest expense 249,283  178,670  881,423  881,443
  Net interest income 2,312,281  2,685,433  10,044,226  9,395,242
Provision for loan losses -  400,000  555,000  770,000
        
Net interest income after provision for loan losses 2,312,281  2,285,433  9,489,226  8,625,242
        
Non-interest income       
Service charges on deposit accounts 412,268  342,342  1,545,628  1,293,966
Other miscellaneous income 119,487  47,642  343,247  163,514
Dividend income from restricted stock 28,693  18,421  101,622  71,664
Income from bank-owned life insurance 45,711  31,840  150,107  125,648
Total non-interest income 606,159  440,245  2,140,604  1,654,792
        
Non-interest expenses       
Salaries and employee benefits 1,234,412  1,064,780  4,408,276  4,058,653
Occupancy and equipment 157,939  160,415  619,851  623,102
Data and item processing 173,749  147,958  664,422  589,351
Advertising and marketing 26,664  33,869  126,457  144,167
Legal and professional fees 900  76,075  138,895  209,565
Regulatory assessments 41,768  33,480  149,569  116,167
Insurance 10,106  10,567  40,141  38,380
Directors' fees and expenses 32,520  32,040  129,600  130,054
Other expenses 274,294  192,528  1,018,815  692,060
Total non-interest expenses 1,952,352  1,751,712  7,296,026  6,601,499
Income before income tax expense 966,088  973,966  4,333,804  3,678,535
Income tax expense 259,105  275,285  1,202,816  1,053,805
  Net income$706,983 $698,681 $3,130,988 $2,624,730
        
Basic earnings per share$0.26 $0.26 $1.17 $0.98
Diluted earnings per share$0.26 $0.26 $1.17 $0.98
        
        


  For the three months ended For the twelve months ended
  December 31 December 31
   2021   2020   2021   2020 
KEY FINANCIAL RATIOS        
(unaudited)        
Annualized return on average equity  10.68%   11.37%   11.70%   10.69% 
Annualized return on average assets  0.75%   0.89%   0.89%   0.92% 
Net interest margin  2.63%   3.66%   3.06%   3.81% 
Core efficiency ratio  66.90%   56.04%   59.88%   59.74% 
Net chargeoffs/(recoveries) to average loans  -0.008%   0.008%   -0.03%   -0.07% 
         
AVERAGE BALANCES        
(thousands, unaudited)        
Average assets $374,871  $313,827  $353,393  $284,525 
Average interest-earning assets $348,574  $292,210  $328,772  $246,612 
Average gross loans $175,748  $192,418  $187,096  $173,923 
Average deposits $325,436  $253,908  $305,234  $224,966 
Average equity $26,488  $24,583  $26,772  $24,551 
         
         
         
CREDIT QUALITY End of period    
(unaudited) December 31, 2021
  December 31, 2020     
         
Non-performing loans $115,434  $119,836     
         
Non-performing loans to total loans  0.07%   0.06%     
Non-performing loans to total assets  0.03%   0.04%     
Allowance for loan losses to total loans  2.21%   1.67%     
Nonperforming assets as a percentage of total loans and OREO  0.07%   0.06%     
Allowance for loan losses to non-performing loans  3368.57%   2730.33%     
         
OTHER PERIOD-END STATISTICS        
(unaudited)        
Shareholders equity to total assets  7.82%   8.65%     
Net loans to deposits  53.59%   74.00%     
Non-interest bearing deposits to total deposits  61.24%   56.43%     
Total capital to total risk-weighted assets  21.40%   18.30%     
Tier 1 capital to total risk-weighted assets  24.35%   20.16%     
Company Leverage Ratio  8.84%   11.44%     
 

Contact Data