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Chino Commercial Bancorp Reports 8% Increase in Net Earnings

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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, 2021

December 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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