Chino Commercial Bancorp Reports 7% Increase in Net Earnings
April 22, 2022 at 04:32 pm
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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
Chino Commercial Bancorp serves as the holding company for Chino Commercial Bank (The Bank), which is a nationally chartered bank. The Bank offers personal banking and business banking services. The Bank's personal banking services, such as personal checking and savings, individual retirement account, online banking, mobile banking, Cash on delivery, debit cards, direct deposit, e-statements, electronic tax payment services, night depository, notary services and savings bonds. Its business banking offers business checking and savings, business loans, online cash management, business mobile banking, remote deposit capture, merchant services and medical professionals. Its Commercial loan products include lines of credit, letters of credit, term loans and equipment loans, commercial real estate loans, accounts receivable financing, factoring, equipment leasing and other working capital financing. Its Financing products include home improvement lines of credit and MasterCard debit cards.