CHINO, Calif., July 19, 2024 (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 second quarter ended June 30, 2024.
Net earnings year-to-date increased by 1.65% or by $40.8 thousand, to $2.48 million, as compared to $2.43 million for the same period last year. Net earnings per share was $0.77 for the period ending June 30, 2024 and 0.76 for the same period last year. Net earnings for the second quarter of 2024, were $1.23 million, which represents an decrease of $34.4 thousand or 2.7% in comparison with the same quarter last year. Net earnings per basic and diluted share were $0.38 for the second quarter of 2024 and $0.39 for the same quarter in 2023, respectively.
Dann H. Bowman, President and Chief Executive Officer stated, “We are very pleased with the Bank’s performance during the second quarter, with total asset reaching new record levels. The economic strength of the Inland Empire remains very strong, allowing for tremendous growth opportunities for the Bank. In addition to the asset growth, Loan quality remains very strong, with the Bank having no delinquent loans at quarter-end, and no pending foreclosures, or OREO.
In 2023 the Bank became a member of the Card Brand Association and began to directly process Merchant Services for its customers. Not only does this service introduce an additional non-interest source of revenue, but the Bank has also been able to provide significant savings and transparency to a number of our small business customers. For virtually every business, efficient and cost effective processing of electronic payments has become a very important part of managing cash flow. In the future we can envision expanding this service outside of our immediate market; and the revenue from this service becoming an increasingly important part of the Bank’s business model.
In March, the Bank received preliminary approval from the Office of the Comptroller of the Currency to open a new branch office in Corona. During March the Bank also completed the purchase of a commercial office building, at 1035 Montecito Avenue, Corona, CA, which will serve as the new Corona branch office. The Corona branch will be the Bank’s fifth location, and is expected to open in 4Q’24.”
Financial Condition
At June 30, 2024, total assets were $468.0 million, an increase of $21.6 million or 4.84% over $446.4 million at December 31, 2023. Total deposits increased by $19.9 million or 6.2% to $339.7 million as of June 30, 2024, compared to $319.8 million as of December 31, 2023. At June 30, 2024, the Company’s core deposits represent 97.76% of the total deposits.
Gross loans increased by $15.6 million or 8.7% to $194.6 million as of June 30, 2024, compared to $179.0 million as of December 31, 2023. The Bank had three non-performing loans for the quarter ended June 30, 2024, and as of December 31, 2023. OREO properties remained at zero as of June 30, 2024 and December 31, 2023 respectively.
Earnings
The Company posted net interest income of $3.2 million for the three months ended June 30, 2024 and for the same quarter last year, respectively. Average interest-earning assets were $432.2 million with average interest-bearing liabilities of $240.2 million, yielding a net interest margin of 2.96% for the second quarter of 2024, as compared to the average interest-earning assets of $431.5 million with average interest-bearing liabilities of $224.3 million, yielding a net interest margin of 3.03% for the second quarter of 2023.
Non-interest income totaled $822.0 thousand for the second quarter of 2024, or an increase of 27.29% as compared with $645.8 thousand earned during the same quarter last year. The majority of the increase is attributed to the Company’s merchant services processing revenue that reached $148.8 thousand, representing an increase of $102.3 thousand during the second quarter as compared to $46.3 thousand for the same period last year.
General and administrative expenses were $2.3 million for the three months ended June 30, 2024, and $2.2 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 second quarter of 2023 and for the same period last year.
Income tax expense was $485 thousand, which represents a decrease of 18 thousand or 3.58% for the three months ended June 30, 2024, as compared to $504 thousand for the same quarter last year. The effective income tax rate for the second quarter of 2024 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.
Chino Commercial Bancorp and Subsidiary
Consolidated Statements of Financial Condition
As of
6/30/2024
12/31/2023
unaudited
audited
Assets
Cash and due from banks
$
41,646,706
$
35,503,719
Cash and cash equivalents
41,646,706
35,503,719
Fed funds sold
33,525
25,218
33,525
25,218
Investment securities available for sale , net of zero allowance for credit losses
6,647,591
6,736,976
Investment securities held to maturity , net of zero allowance for credit losses
205,737,609
208,506,305
Total investments
212,385,201
215,243,282
Loans held for investment, net of allowance for credit losses of $4,460,100 in 2024, and $4,465,622 in 2023
189,541,846
174,352,293
Stock investments, restricted, at cost
3,576,000
3,126,100
Fixed assets, net
7,209,508
5,466,358
Accrued interest receivable
1,497,988
1,439,178
Bank owned life insurance
8,362,049
8,247,174
Other assets
3,773,487
3,010,916
Total assets
$
468,026,309
$
446,414,237
Liabilities
Deposits
Noninterest-bearing
179,094,579
167,131,411
Interest-bearing
160,640,596
152,669,374
Total deposits
339,735,175
319,800,785
Federal Home Loan Bank advances
8,000,000
15,000,000
Federal Reserve Bank borrowings
64,000,000
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
1,395,354
2,156,153
Other liabilities
1,799,851
1,876,474
Total liabilities
428,023,380
408,926,412
Shareholders' Equity
Common stock, no par value, 10,000,000 shares authorized and 3,211,970 shares issued and outstanding at June 30, 2024 and December 31, 2023
10,502,558
10,502,557
Retained earnings
31,396,156
28,920,732
Accumulated other comprehensive loss - unrecognized loss on available for sale, net of taxes
(1,895,784
)
(1,935,464
)
Total shareholders' equity
40,002,930
37,487,824
Total liabilities and shareholders' equity
$
468,026,309
$
446,414,237
Chino Commercial Bancorp and Subsidiary
Consolidated Statements of Net Income
For the three month ended
For the six months ended
30-Jun
30-Jun
2024
2023
2024
2023
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Interest income
Interest and fees on loans
2,801,198
2,388,004
5,528,999
4,778,163
Interest on investment securities
1,945,563
1,144,162
3,881,668
2,277,748
Other interest income
489,331
1,174,803
1,520,279
1,580,037
Total interest income
5,236,092
4,706,968
10,930,945
8,635,948
Interest expense
Interest on deposits
1,054,734
616,992
2,087,669
993,852
Interest on borrowings
997,524
864,373
2,310,217
1,235,776
Total interest expense
2,052,258
1,481,364
4,397,886
2,229,628
Net interest income
3,183,833
3,225,604
6,533,059
6,406,320
Provision for loan losses
1,794
(90,520
)
(1,139
)
(88,384
)
Net interest income after provision for loan losses
3,182,040
3,316,124
6,534,198
6,494,704
Noninterest income
Service charges and fees on deposit accounts
460,658
399,977
900,515
759,877
Interchange fees
102,761
105,226
195,033
208,385
Earnings from bank-owned life insurance
58,579
47,812
114,875
94,123
Merchant services processing
148,770
46,436
281,538
87,391
Other miscellaneous income
51,250
46,320
103,522
90,758
Total noninterest income
822,019
645,770
1,595,483
1,240,533
Noninterest expense
Salaries and employee benefits
1,420,868
1,366,733
2,922,295
2,719,668
Occupancy and equipment
168,404
158,968
332,473
321,409
Merchant services processing
73,394
24,791
144,603
35,462
Other expenses
624,150
641,742
1,280,128
1,256,687
Total noninterest expense
2,286,816
2,192,234
4,679,499
4,333,226
Income before income tax expense
1,717,243
1,769,660
3,450,182
3,402,010
Provision for income taxes
485,492
503,534
974,758
967,435
Net income
$
1,231,751
$
1,266,126
$
2,475,424
$
2,434,575
Basic earnings per share
$
0.38
$
0.39
$
0.77
$
0.76
Diluted earnings per share
$
0.38
$
0.39
$
0.77
$
0.76
Chino Commercial Bancorp and Subsidiary
Financial Highlights
For the three month ended
For the six months ended
30-Jun
30-Jun
Key Financial Ratios
2024
2023
2024
2023
(unaudited)
Annualized return on average equity
12.65
%
14.92
%
12.89
%
14.70
%
Annualized return on average assets
1.07
%
1.12
%
1.05
%
1.14
%
Net interest margin
2.96
%
3.00
%
2.91
%
3.18
%
Core efficiency ratio
57.09
%
56.63
%
57.57
%
56.67
%
Net chargeoffs/(recoveries) to average loans
-0.008
%
-0.010
%
0.002
%
-0.017
%
Average Balances
(thousands, unaudited)
Average assets
458,364
452,401
475,291
427,314
Average interest-earning assets
432,215
431,488
450,774
406,253
Average interest-bearing liabilities
240,214
224,283
258,566
196,631
Average gross loans
187,788
177,412
184,961
179,516
Average deposits
331,039
330,835
330,473
329,648
Average equity
39,172
34,028
38,623
33,402
End of period
6/30/2024
12/31/2023
Credit Quality
Non-performing loans
459,494
492,242
Non-performing loans to total loans
0.24
%
0.27
%
Non-performing loans to total assets
0.10
%
0.11
%
Allowance for credit losses to total loans
2.29
%
2.49
%
Nonperforming assets as a percentage of total loans and OREO
0.24
%
0.27
%
Allowance for credit losses to non-performing loans
970.65
%
907.20
%
Other Period-end Statistics
Shareholders equity to total assets
8.55
%
8.40
%
Net loans to deposits
55.79
%
54.52
%
Non-interest bearing deposits to total deposits
52.72
%
52.26
%
Company leverage ratio
9.82
%
9.26
%
CONTACT: Contact: Dann H. Bowman, President and CEO or Melinda M. Milincu, Senior Vice President and CFO, Chino Commercial Bancorp and Chino Commercial Bank, N.A., 14245 Pipeline Avenue, Chino, CA. 91710, (909) 393-8880.
