Chino Commercial Bancorp Reports 8% Increase in Net Earnings

Monday, 25. October 2021 17:08

CHINO, Calif., Oct. 25, 2021 (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, 2021. Net earnings for the third quarter of 2021 were $718 thousand, or an increase of 8.1%, as compared with earnings of $664 thousand for the same quarter last year. The increase in earnings is primarily attributed to the increase in loan interest and loan fee income. Net earnings per basic and diluted share was $0.27 for the third quarter of 2021, and $0.25 for the same quarter last year.

Dann H. Bowman, President and Chief Executive Officer, stated, “As the economy emerges from the effects of the pandemic, the Bank continues to perform well. During the thirst quarter, the Bank posted record levels for total assets, and deposits. We are also pleased to report that loan quality remains very strong, with the Bank having no delinquent loans at quarter-end, no pending foreclosures, and no OREO. Despite the challenges of the last eighteen months, we are optimistic about the opportunities for growth and expansion in the future.”

Financial Condition

At September 30, 2021, total assets were $370.2 million, an increase of $55.3 million or 17.6% over $314.8 million at December 31, 2020. Total deposits increased by $53.2 million or 20.6% to $310.9 million as of September 30, 2021, compared to $257.7 million as of December 31, 2020. At September 30, 2021, the Company’s core deposits represent 97.9% of the total deposits.

Gross loans decreased by 6.7 % or $13.1 million as of September 30, 2021 to $182.6 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 September 30, 2021, and December 31, 2020.   OREO properties remained at zero as of September 30, 2021 and December 31, 2020 respectively.

Earnings

The Company posted net interest income of $2.6 million for the three months ended September 30, 2021 and $2.3 million for the same quarter last year. Average interest-earning assets were $334.5 million with average interest-bearing liabilities of $145.6 million, yielding a net interest margin of 2.91% for the third quarter of 2021, as compared to the average interest-earning assets of $283.4 million with average interest-bearing liabilities of $135.8 million, yielding a net interest margin of 3.31% for the third quarter of 2020.

Non-interest income totaled $544.6 thousand for the third quarter of 2021, or an increase of 37.5% as compared with $395.9 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 $1.8 million for the three months ended September 30, 2021, and $1.6 million for the same period last year. The largest component of general and administrative expenses was salary and benefits expense of $1.1 million for the third quarter of 2021 and $999.5 thousand for the same period last year.

Income tax expense was $273.4 thousand which represents an increase of $8 thousand or 2.9% for the three months ended September 30, 2021, as compared to $265.5 thousand for the three months ended September 30, 2020. The effective income tax rate for the third quarter of 2021 and 2020 were approximately 27.6% and 28.6% 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
September 30, 2021 and December 31, 2020
 
 September 30, 2021December 31, 2020
 (unaudited) (audited)
ASSETS:   
Cash and due from banks$123,449,196  $58,075,217 
Federal funds sold -   - 
Total cash and cash equivalents 123,449,196   58,075,217 
    
Interest-bearing deposits in other banks -   - 
Investment securities available for sale 36,474,971   32,370,042 
Investment securities held to maturity (fair value approximates   
$14,403,447 at September 30, 2021 and $19,556,250 at December 31, 2020) 13,785,218   18,626,525 
Total investments 50,260,189   50,996,567 
Loans   
Construction 414,072   1,014,462 
Real estate 120,111,335   119,302,116 
Commercial 61,901,808   75,237,752 
Installment 158,798   110,475 
Credit Cards 0   - 
Gross loans 182,586,013   195,664,805 
Unearned fees and discounts (1,615,273)  (1,678,642)
Loans net of unearned fees and discount 180,970,740   193,986,163 
Allowance for loan losses (3,877,017)  (3,271,921)
Net loans 177,093,723   190,714,242 
    
Fixed assets, net 5,953,847   6,145,711 
Accrued interest receivable 819,094   1,013,732 
Stock investments, restricted, at cost 2,045,200   1,554,200 
Bank-owned life insurance 7,825,628   4,721,232 
Other assets 2,721,997   1,618,717 
Total assets$370,168,874  $314,839,618 
    
LIABILITIES:   
Deposits   
Non-interest bearing$191,195,134  $145,433,815 
Interest bearing   
NOW and money market 80,027,619   76,774,242 
Savings 25,939,170   21,467,034 
Time deposits less than $250,000 10,074,332   4,473,409 
Time deposits of $250,000 or greater 3,646,335   9,563,300 
Total deposits 310,882,590   257,711,800 
    
Accrued interest payable 202,379   137,487 
Borrowings from Federal Home Loan Bank (FHLB) 15,000,000   25,000,000 
Accrued expenses & other payables 1,847,228   1,674,150 
Subordinated debt 10,000,000   - 
Subordinated notes payable to subsidiary trust 3,093,000   3,093,000 
Total liabilities 341,025,197   287,616,437 
    
SHAREHOLDERS' EQUITY   
Common stock, authorized 10,000,000 shares with no par value, issued and   
outstanding 2,676,799 shares at September 30, 2021 and December 31, 2020,   
respectively. 10,502,558   10,502,557 
Retained earnings 18,849,889   16,428,258 
Accumulated other comprehensive income/(loss) (208,770)  292,366 
Total shareholders' equity 29,143,677   27,223,181 
Total liabilities & shareholders' equity$370,168,874  $314,839,618 
    



CHINO COMMERCIAL BANCORP
CONSOLIDATED STATEMENTS OF NET INCOME
        
 For the three months ended For the nine months ended
 September 30 September 30
 2021 2020 2021 2020 
 (unaudited) (unaudited) (unaudited) (unaudited)
Interest income       
Interest and fee income on loans$2,458,482 $2,301,354 $7,643,426 $6,582,760 
Interest on federal funds sold and FRB deposits 42,915  14,828  83,015  140,741 
Interest on time deposits in banks -  -  -  1,856 
Interest on investment securities 206,101  232,571  637,644  687,225 
Total interest income 2,707,498  2,548,753  8,364,085  7,412,582 
        
Interest Expense       
Interest on deposits 46,825  63,271  145,370  315,906 
Other borrowings 207,096  125,396  486,770  386,868 
Total interest expense 253,921  188,667  632,140  702,774 
Net interest income 2,453,577  2,360,086  7,731,945  6,709,808 
Provision for loan losses 185,000  215,000  555,000  370,000 
        
Net interest income after provision for loan losses 2,268,577  2,145,086  7,176,945  6,339,808 
        
Non-interest income       
Service charges on deposit accounts 394,024  306,081  1,133,360  951,624 
Other miscellaneous income 81,984  39,864  223,761  115,872 
Dividend income from restricted stock 25,903  18,421  72,928  53,243 
Income from bank-owned life insurance 42,669  31,578  104,395  93,808 
Total non-interest income 544,580  395,944  1,534,444  1,214,547 
        
Non-interest expenses       
Salaries and employee benefits 1,092,730  999,501  3,173,864  2,993,873 
Occupancy and equipment 153,998  155,160  461,912  462,687 
Data and item processing 170,018  154,317  490,673  441,393 
Advertising and marketing 29,035  20,802  91,121  107,167 
Legal and professional fees 49,355  42,100  137,995  133,490 
Regulatory assessments 37,761  33,480  107,801  82,687 
Insurance 10,106  10,567  30,035  27,813 
Directors' fees and expenses 31,920  32,520  97,080  98,014 
Other expenses 246,677  162,981  753,192  502,659 
Total non-interest expenses 1,821,600  1,611,428  5,343,673  4,849,783 
Income before income tax expense 991,557  929,602  3,367,716  2,704,572 
Income tax expense 273,434  265,522  943,711  778,520 
Net income$718,123 $664,080 $2,424,005 $1,926,052 
        
Basic earnings per share$0.27 $0.25 $0.91 $0.72 
Diluted earnings per share$0.27 $0.25 $0.91 $0.72 
        



  For the three months ended For the nine months ended
  September 30 September 30
   2021   2020   2021   2020 
KEY FINANCIAL RATIOS        
(unaudited)        
Annualized return on average equity  10.71%  10.06%  12.03%  10.03%
Annualized return on average assets  0.80%  0.87%  0.93%  0.94%
Net interest margin  2.91%  3.31%  3.21%  3.87%
Core efficiency ratio  60.76%  58.47%  57.67%  61.20%
Net chargeoffs/(recoveries) to average loans  -0.011%  -0.007%  -0.03%  -0.06%
         
AVERAGE BALANCES        
(thousands, unaudited)        
Average assets $360,266  $304,432  $346,155  $274,626 
Average interest-earning assets $334,456  $283,374  $322,099  $231,302 
Average gross loans $180,478  $186,761  $190,920  $167,713 
Average deposits $311,254  $242,964  $298,413  $215,248 
Average equity $26,830  $26,394  $26,867  $25,609 
         
         
         
CREDIT QUALITY End of period    
(unaudited) September 30, 2021 December 31, 2020   
         
Non-performing loans $118,448  $107,672     
         
Non-performing loans to total loans  0.06%  0.06%    
Non-performing loans to total assets  0.03%  0.03%    
Allowance for loan losses to total loans  2.12%  1.67%    
Nonperforming assets as a percentage of total loans and OREO  0.06%  0.06%    
Allowance for loan losses to non-performing loans  3273.18%  3038.79%    
         
OTHER PERIOD-END STATISTICS        
(unaudited)        
Shareholders equity to total assets  7.87%  8.65%    
Net loans to deposits  56.96%  74.00%    
Non-interest bearing deposits to total deposits  61.50%  56.43%    
Total capital to total risk-weighted assets  20.97%  18.30%    
Tier 1 capital to total risk-weighted assets  23.77%  20.16%    
Company Leverage Ratio  9.01%  11.44%    

 

 


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