Chino Commercial BancorpOTC: CCBC

Chino Commercial Bancorp Reports 85% Increase In Net Earnings

· Issued by Chino Commercial Bancorp via GlobeNewswire

On 6ix: 6ix.com/news/chino-commercial-bancorp-reports-85percent-increase-in-net-earnings

CHINO, Calif., Jan. 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 fourth quarter ended December 31, 2022. Net earnings for the fourth quarter of 2022, were $1.3 million, or an increase of 84.6%, as compared with earnings of $706 thousand for the same quarter last year. Net earnings per basic and diluted share was $0.49 for the fourth quarter of 2022, and $0.26 for the same quarter last year.

Net earnings for the fiscal year ended December 31, 2022 increased by 50.5% or by $1.6 million to $4.7 million, as compared to $3.1 million for fiscal year 2021. Net earnings per basic and diluted share was $1.76 for the fiscal year 2021, and $1.17 for fiscal year 2021.

Dann H. Bowman, President and Chief Executive Officer, stated “Despite the rapidly rising interest rate environment, 2022 was a very good year for the Bank, in setting new records for Deposits, Revenue and Earnings and Earnings Per Share. We do see some weakness in the economy over the next 18 months, however, even this has the potential to create opportunities to expand the customer base and grow the company. 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 innovate as we navigate through challenging times.”

Financial Condition

At December 31, 2022, total assets were $399.7 million, an increase of $21.1 million or 5.6% over $378.5 million at December 31, 2021. Total deposits increased by $18.6 million or 5.8% to $337.5 million as of December 31, 2022, compared to $318.9 million as of December 31, 2021. At December 31, 2022, the Company’s core deposits represent 98.3% of the total deposits.

Gross loans increased by 2.8% or $5.0 million as of December 31, 2022 to $181.1 million as compared with $176.2 million at December 31, 2021. The Bank had two non-performing loans for the quarter ended December 31, 2022, and one non-performing loan as of December 31, 2021.   OREO properties remained at zero as of December 31, 2022 and December 31, 2021 respectively.

Earnings

The Company posted net interest income of $3.4 million for the three months ended December 31, 2022 and $2.6 million for the same quarter last year. Average interest-earning assets were $408.4 million with average interest-bearing liabilities of $158.7 million, yielding a net interest margin of 3.52% for the fourth quarter of 2022, as compared to the average interest-earning assets of $374.9 million with average interest-bearing liabilities of $145.9 million, yielding a net interest margin of 2.63% for the fourth quarter of 2021.

Non-interest income totaled $614.6 thousand for the fourth quarter of 2022, or an increase of 1.4% as compared with $606.2 thousand earned during the same quarter last year. The majority of the increase is attributed to service charges on deposit accounts.

General and administrative expenses were $2.2 million for the three months ended December 31, 2022, 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 fourth quarter of 2022 and $1.2 million for the same period last year.

Income tax expense was $513.8 thousand which represents an increase of $254.7 thousand or 98.3% for the three months ended December 31, 2022, as compared to $259.1 thousand for the three months ended December 31, 2021. The effective income tax rate for the fourth quarter of 2022 and 2021 were approximately 28.2% and 26.8% 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
December 31, 2022 and 2021
December 31, 2022December 31, 2021
(unaudited)(audited)
ASSETS:
Cash and due from banks$36,436,018$135,593,445
Federal funds sold--
Total cash and cash equivalents36,436,018135,593,445
Interest-bearing deposits in other banks--
Investment securities available for sale6,347,23140,270,538
Investment securities held to maturity160,668,95912,435,291
Total investments167,016,19052,705,829
Loans
Construction2,252,407414,072
Real estate146,467,077125,894,826
Commercial32,272,18548,133,781
Installment156,6881,741,267
Credit Cards0-
Gross loans181,148,357176,183,946
Unearned fees and discounts(492,058)(1,419,084)
Loans net of unearned fees and discount180,656,299174,764,862
Allowance for loan losses(4,100,516)(3,888,480)
Net loans176,555,783170,876,382
Fixed assets, net5,628,9505,897,342
Accrued interest receivable1,153,613877,104
Stock investments, restricted, at cost2,045,2007,871,339
Bank-owned life insurance8,054,4912,045,200
Other assets2,763,7672,647,812
Total assets$399,654,012$378,514,453
LIABILITIES:
Deposits
Non-interest bearing$204,189,323$195,274,304
Interest bearing
NOW and money market95,203,88885,144,889
Savings27,195,88325,147,965
Time deposits less than $250,0008,193,1903,695,546
Time deposits of $250,000 or greater2,670,9809,616,481
Total deposits337,453,264318,879,185
Accrued interest payable124,947130,327
Borrowings from Federal Home Loan Bank (FHLB)15,000,00015,000,000
Accrued expenses & other payables1,633,0981,817,705
Subordinated debt10,000,00010,000,000
Subordinated notes payable to subsidiary trust3,093,0003,093,000
Total liabilities367,304,309348,920,217
SHAREHOLDERS' EQUITY
Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 2,676,799 shares at December 31, 2022 and December 31, 2021, respectively.10,502,55810,502,557
Retained earnings24,269,52719,556,872
Accumulated other comprehensive income/(loss)(2,422,382)(465,193)
Total shareholders' equity32,349,70329,594,236
Total liabilities & shareholders' equity$399,654,012$378,514,453
CHINO COMMERCIAL BANCORP
CONSOLIDATED STATEMENTS OF NET INCOME
For the three months endedFor the twelve months ended
December 31December 31
2022202120222021
(unaudited)(unaudited)(unaudited)(unaudited)
Interest income
Interest and fee income on loans$2,376,312$2,271,284$9,569,690$9,914,710
Interest on federal funds sold and FRB deposits356,36347,599846,687130,615
Interest on time deposits in banks----
Interest on investment securities1,127,397242,6813,323,894880,324
Total interest income3,860,0722,561,56413,740,27110,925,649
Interest Expense
Interest on deposits185,04642,090362,922187,460
Other borrowings233,400207,193874,663693,963
Total interest expense418,446249,2831,237,585881,423
Net interest income3,441,6262,312,28112,502,68610,044,226
Provision for loan losses--150,000555,000
Net interest income after provision for loan losses3,441,6262,312,28112,352,6869,489,226
Non-interest income
Service charges on deposit accounts453,361412,2681,760,8721,545,628
Other miscellaneous income82,695119,487292,040343,246
Dividend income from restricted stock31,26228,693121,641101,622
Income from bank-owned life insurance47,27645,711183,152150,107
Total non-interest income614,594606,1592,357,7052,140,603
Non-interest expenses
Salaries and employee benefits1,398,2481,234,4125,100,3544,408,276
Occupancy and equipment158,265157,939637,146619,851
Data and item processing187,819173,749743,502664,422
Advertising and marketing34,10126,664152,684126,457
Legal and professional fees77,250900209,895138,895
Regulatory assessments53,91841,768199,645149,569
Insurance10,71310,10641,08640,141
Directors' fees and expenses37,47032,520133,830129,600
Other expenses279,416274,294915,4701,018,813
Total non-interest expenses2,237,2001,952,3528,133,6127,296,024
Income before income tax expense1,819,020966,0886,576,7794,333,805
Income tax expense513,771259,1051,864,1251,202,816
Net income$1,305,249$706,983$4,712,654$3,130,989
Basic earnings per share$0.49$0.26$1.76$1.17
Diluted earnings per share$0.49$0.26$1.76$1.17
For the three months endedFor the twelve months ended
December 31December 31
2022202120222021
KEY FINANCIAL RATIOS
(unaudited)
Annualized return on average equity19.02%10.68%16.81%11.70%
Annualized return on average assets1.28%0.75%1.17%0.89%
Net interest margin3.52%2.63%3.26%3.06%
Core efficiency ratio55.15%66.90%54.73%59.88%
Net chargeoffs/(recoveries) to average loans-0.008%-0.008%-0.04%-0.03%
AVERAGE BALANCES
(thousands, unaudited)
Average assets$408,424$374,871$404,283$353,393
Average interest-earning assets$388,271$348,574$383,713$328,772
Average gross loans$180,687$175,748$176,759$187,096
Average deposits$357,027$325,436$354,050$305,234
Average equity$27,450$26,488$28,040$26,772
CREDIT QUALITYEnd of period
(unaudited)December 31, 2022December 31, 2021
Non-performing loans$404,095$115,434
Non-performing loans to total loans0.22%0.07%
Non-performing loans to total assets0.10%0.03%
Allowance for loan losses to total loans2.26%2.21%
Nonperforming assets as a percentage of total loans and OREO0.22%0.07%
Allowance for loan losses to non-performing loans1014.74%3368.57%
OTHER PERIOD-END STATISTICS
(unaudited)
Shareholders equity to total assets8.09%7.82%
Net loans to deposits52.32%53.59%
Non-interest bearing deposits to total deposits60.51%61.24%
Total capital to total risk-weighted assets24.33%18.30%
Tier 1 capital to total risk-weighted assets28.24%20.16%
Company Leverage Ratio9.27%8.84%
Common equity tier 128.24%20.16%

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