Chino Commercial Bancorp Reports Third Quarter Earnings
October 20, 2023 at 05:01 pm
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CHINO, Calif., Oct. 20, 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 third quarter ended September 30, 2023. Net earnings for the third quarter of 2023, were $1.3 million, which remains consistent with the same quarter last year. Net earnings per basic and diluted share were $0.40 for the third quarter of 2023 and 2022, respectively.
Net earnings year-to-date increased by 8.17% or by $303 thousand, to $3.7 million, as compared to $3.4 million for the same period last year. Net earnings per basic and diluted share was $1.16 for the period ending September 30, 2023 and $1.06 for the same period last year.
Dann H. Bowman, President and Chief Executive Officer, stated, “The Bank’s operating performance in the third quarter and year-to-date was very strong. Loan quality remains solid,with the Bank having only one delinquent loan at quarter-end, and revenue was up significantly over the same period last year. Total assets reached an all time record in the third quarter, and we are optimistic about additional 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 September 30, 2023, total assets were $465.8 million, an increase of $65.9 million or 16.49% over $399.8 million at December 31, 2022. Total deposits increased by $3.9 million or 1.2% to $341.4 million as of September 30, 2023, compared to $337.5 million as of December 31, 2022. At September 30, 2022, the Company’s core deposits represent 97.8% of the total deposits.
Gross loans decreased by $2.9 million or 1.65% to $178.2 million as of September 30, 2022, compared to $181.2 million as of December 31, 2022. The Bank had three non-performing loans for the quarter ended September 30, 2023, and two non-performing loans as of December 31, 2022. OREO properties remained at zero as of September 30, 2023 and December 31, 2022 respectively.
Earnings
The Company posted net interest income of $3.3 million for the three months ended September 30, 2023 and for the same quarter last year, respectively. Average interest-earning assets were $442.9 million with average interest-bearing liabilities of $235.8 million, yielding a net interest margin of 3.01% for the third quarter of 2023, as compared to the average interest-earning assets of $391.6 million with average interest-bearing liabilities of $163.2 million, yielding a net interest margin of 3.41% for the third quarter of 2022.
Non-interest income totaled $673.0 thousand for the third quarter of 2023, or an increase of 16.12% as compared with $579.6 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 September 30, 2023, and $2.0 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 third quarter of 2023 and $1.3 million for the same period last year.
Income tax expense was $503 thousand, which represents an decrease of $3 thousand or 0.6% for the three months ended September 30, 2023, as compared to $506 thousand for the three months ended September 30, 2022. The effective income tax rate for the third quarter of 2022 was approximately 28.3%, and 28.5% for the same quarter last year.
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 Bankcorp and Subsidiary
Consolidated Statements of Financial Condition
As of
9/30/2023
12/31/2022
unaudited
audited
Assets
Cash and due from banks
$
104,561,071
$
36,436,018
Cash and cash equivalents
104,561,071
36,436,018
Fed Funds Sold
2,300
-
2,300
-
Investment securities available for sale, net of zero allowance for credit losses
6,087,441
6,347,231
Investment securities held to maturity, net of zero allowance for credit losses
161,749,315
160,668,959
Total Investments
167,836,756
167,016,191
Loans held for investment, net of allowance for credit losses of $4,444,904 in 2023, and $4,100,516 in 2022
173,224,506
176,555,783
Stock investments, restricted, at cost
3,126,100
2,045,200
Fixed assets, net
5,515,355
5,626,850
Accrued interest receivable
1,286,041
1,153,613
Bank owned life insurance
8,197,290
8,054,491
Other assets
2,021,278
2,947,830
Total assets
$
465,770,697
$
399,835,974
Liabilities
Deposits
Noninterest-bearing
185,148,633
204,189,323
Interest-bearing
156,230,416
133,263,940
Total deposits
341,379,049
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
1,569,455
124,947
Other liabilities
1,986,510
1,815,062
Total liabilities
430,028,014
367,486,270
Shareholders' Equity
Common stock, no par value, 10,000,000 shares authorized and 3,211,981 shares issued and outstanding at September 30, 2023 and December 31, 2022
10,502,558
10,502,558
Retained earnings
27,694,744
24,269,527
Accumulated other comprehensive loss - unrecognized loss on available for sale, net of taxes
(2,454,619
)
(2,422,382
)
Total shareholders' equity
35,742,683
32,349,703
Total liabilities and shareholders' equity
$
465,770,697
$
399,835,974
Chino Commercial Bankcorp and Subsidiary
Consolidated Statements of Net Income
For the three month ended
For the nine month ended
30-Sep
30-Sep
2023
2022
2023
2022
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Interest Income
Interest and fees on loans
2,467,400
2,289,166
7,245,563
7,193,378
Interest on investment securities
1,166,387
1,004,274
3,444,135
2,196,498
Other interest income
1,410,450
344,108
2,990,487
580,703
Total interest income
5,044,237
3,637,548
13,680,184
9,970,579
Interest Expense
Interest on deposits
841,282
86,555
1,835,134
177,876
Interest on borrowings
877,179
222,041
2,112,955
641,264
Total interest expense
1,718,460
308,597
3,948,089
819,140
Net Interest Income
3,325,776
3,328,951
9,732,096
9,151,439
Provision For Loan Losses
6,578
93,457
(81,806
)
135,987
Net Interest Income After Provision For Loan Losses
3,319,198
3,235,495
9,813,901
9,015,452
Noninterest Income
Service charges and fees on deposit accounts
424,453
324,008
1,184,329
943,114
Interchange fees
106,418
130,022
314,803
364,397
Earnings from bank-owned life insurance
48,677
46,724
142,799
135,876
Other miscellaneous income
93,502
78,876
271,651
209,345
Total noninterest income
673,049
579,630
1,913,582
1,652,732
Noninterest Expense
Salaries and employee benefits
1,381,721
1,266,765
4,101,388
3,702,106
Occupancy and equipment
156,317
166,159
460,390
478,881
Other expenses
674,654
603,331
1,984,139
1,729,437
Total noninterest expense
2,212,691
2,036,255
6,545,917
5,910,424
Income before income tax expense
1,779,556
1,778,870
5,181,566
4,757,760
Provision for income taxes
503,424
506,530
1,470,859
1,350,354
Net Income
$
1,276,132
$
1,272,340
$
3,710,707
$
3,407,406
Basic earnings per share
$
0.40
$
0.40
$
1.16
$
1.06
Diluted earnings per share
$
0.40
$
0.40
$
1.16
$
1.06
Chino Commercial Bankcorp and Subsidiary
Financial Highlights
For the three month ended
30-Sep
30-Sep
Key Financial Ratios
2023
2022
2023
2022
(unaudited)
Annualized return on average equity
14.46
%
16.62
%
14.53
%
15.20
%
Annualized return on average assets
1.10
%
1.23
%
1.13
%
1.13
%
Net interest margin
3.01
%
3.41
%
3.11
%
3.21
%
Core efficiency ratio
55.33
%
52.10
%
56.21
%
54.71
%
Net chargeoffs/(recoveries) to average loans
0.001
%
-0.008
%
-0.017
%
-0.031
%
Average Balances
(thousands, unaudited)
Average assets
463,977
413,023
439,669
402,883
Average interest-earning assets
442,867
391,582
418,587
381,264
Average interest-bearing liabilities
235,812
163,224
209,835
157,915
Average gross loans
178,251
176,252
179,089
175,436
Average deposits
340,261
352,419
333,225
342,936
Average equity
35,312
30,614
34,046
29,887
End of period
9/30/2023
12/31/2022
Credit Quality
Non-performing loans
520,726
404,095
Non-performing loans to total loans
0.29
%
0.22
%
Non-performing loans to total assets
0.11
%
0.10
%
Allowance for credit losses to total loans
2.50
%
2.26
%
Nonperforming assets as a percentage of total loans and OREO
0.29
%
0.22
%
Allowance for credit losses to non-performing loans
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.