CHINO, Calif., Jan. 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 fourth quarter ended December 31, 2023. Net earnings year-to-date increased by 4.54% or by $224 thousand, to $4.9 million, as compared to $4.7 million for the same period last year. Net earnings per basic and diluted share was $1.54 for the period ending December 31, 2023 and $1.47 for the same period last year.
Net earnings for the fourth quarter of 2023, were $1.2 million, which represents a decrease of $79 thousand of 6.0% in comparison with the same quarter last year. Net earnings per basic and diluted share were $0.38 for the fourth quarter of 2023 and $0.41 for the same quarter in 2022, respectively.
Dann H. Bowman, President and Chief Executive Officer, stated, “We are very pleased with the Bank’s performance in 2023. Total net interest income reached an all-time high at $13 million, and net earnings also reached an all-time high at $4.9 million. Though loan growth was not as high as we had hoped, credit quality was very strong, with the Bank having only one delinquent loan at year-end, no pending foreclosures, and no OREO. We are very 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 December 31, 2023, total assets were $446.4 million, an increase of $46.6 million or 11.65% over $399.8 million at December 31, 2022. Total deposits decreased by $17.7 million or 5.2% to $319.8 million as of December 31, 2023, compared to $337.5 million as of December 31, 2022. At December 31, 2023, the Company’s core deposits represent 97.8% of the total deposits.
Gross loans decreased by $1.8 million or 1.0% to $179.3 million as of December 31, 2023, compared to $181.2 million as of December 31, 2022. The Bank had three non-performing loans for the quarter ended December 31, 2023, and two non-performing loans as of December 31, 2022. OREO properties remained at zero as of December 31, 2023 and December 31, 2022 respectively.
Earnings
The Company posted net interest income of $3.3 million for the three months ended December 31, 2023 and $3.5 million for the same quarter last year, respectively. Average interest-earning assets were $386.4 million with average interest-bearing liabilities of $161.6 million, yielding a net interest margin of 2.98% for the fourth 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 3.57% for the fourth quarter of 2022.
Non-interest income totaled $677.6 thousand for the fourth quarter of 2023, or an increase of 16.16% as compared with $583.3 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 December 31, 2023, and 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 2023 and for the same period last year.
Income tax expense was $491 thousand, which represents a decrease of $23 thousand or 4.51% for the three months ended December 31, 2023, as compared to $514 thousand for the three months ended December 31, 2022. The effective income tax rate for the fourth quarter of 2022 was approximately 28.6%, and 28.2% 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
12/31/2023
12/31/2022
unaudited
audited
Assets
Cash and due from banks
$
35,503,719
$
36,436,018
Cash and cash equivalents
35,503,719
36,436,018
Fed Funds Sold
25,218
-
25,218
-
Investment securities available for sale , net of zero allowance for credit losses
6,736,976
6,347,231
Investment securities held to maturity , net of zero allowance for credit losses
208,506,305
160,668,959
Total Investments
215,243,282
167,016,191
Loans held for investment, net of allowance for credit losses of
$4,465,622 in 2023, and $4,100,516 in 2022
174,352,294
176,555,783
Stock investments, restricted, at cost
3,126,100
2,045,200
Fixed assets, net
5,466,358
5,626,850
Accrued interest receivable
1,439,178
1,153,613
Bank owned life insurance
8,247,174
8,054,491
Other assets
3,010,916
2,947,830
Total assets
$
446,414,238
$
399,835,974
Liabilities
Deposits
Noninterest-bearing
167,131,411
204,189,323
Interest-bearing
152,669,374
133,263,940
Total deposits
319,800,786
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
2,156,153
124,947
Other liabilities
1,876,475
1,815,062
Total liabilities
408,926,413
367,486,270
Shareholders' Equity
Common stock, no par value, 10,000,000 shares authorized
and 3,211,981 shares issued and outstanding
at December 31, 2023 and December 31, 2022
10,502,558
10,502,558
Retained earnings
28,920,732
24,269,527
Accumulated other comprehensive loss - unrecognized
loss on available for sale, net of taxes
(1,935,465
)
(2,422,382
)
Total shareholders' equity
37,487,824
32,349,703
Total liabilities and shareholders' equity
$
446,414,238
$
399,835,974
Chino Commercial Bankcorp and Subsidiary
Consolidated Statements of Net Income
For the three month ended
For the twelve month ended
31-Dec
31-Dec
2023
2022
2023
2022
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Interest Income
Interest and fees on loans
2,577,443
2,376,312
9,823,006
9,569,690
Interest on investment securities
1,364,796
1,127,397
4,808,931
3,323,894
Other interest income
1,159,255
387,625
4,149,741
968,329
Total interest income
5,101,493
3,891,334
18,781,678
13,861,913
Interest Expense
Interest on deposits
940,935
185,046
2,776,069
362,922
Interest on borrowings
877,294
233,400
2,990,249
874,663
Total interest expense
1,818,229
418,445
5,766,317
1,237,585
Net Interest Income
3,283,264
3,472,888
13,015,360
12,624,328
Provision For Loan Losses
1,366
7,115
(80,440
)
143,102
Net Interest Income After Provision For Loan Losses
3,281,898
3,465,773
13,095,800
12,481,226
Noninterest Income
Service charges and fees on deposit accounts
421,554
342,658
1,605,884
1,285,773
Interchange fees
98,618
110,702
413,421
475,099
Earnings from bank-owned life insurance
49,884
47,276
192,683
183,152
Other miscellaneous income
107,569
82,694
379,220
292,039
Total noninterest income
677,625
583,331
2,591,208
2,236,063
Noninterest Expense
Salaries and employee benefits
1,377,483
1,398,248
5,478,872
5,100,354
Occupancy and equipment
144,224
158,265
604,614
637,146
Other expenses
721,205
673,572
2,705,344
2,403,009
Total noninterest expense
2,242,912
2,230,085
8,788,829
8,140,509
Income before income tax expense
1,716,612
1,819,020
6,898,178
6,576,780
Provision for income taxes
490,624
513,771
1,961,483
1,864,125
Net Income
$
1,225,988
$
1,305,249
$
4,936,695
$
4,712,655
Basic earnings per share
$
0.38
$
0.41
$
1.54
$
1.47
Diluted earnings per share
$
0.38
$
0.41
$
1.54
$
1.47
Chino Commercial Bankcorp and Subsidiary
Financial Highlights
For the three month ended
31-Dec
31-Dec
Key Financial Ratios
2023
2022
2023
2022
(unaudited)
Annualized return on average equity
13.50
%
16.56
%
14.26
%
15.55
%
Annualized return on average assets
1.07
%
1.28
%
1.11
%
1.17
%
Net interest margin
2.98
%
3.57
%
3.07
%
3.30
%
Core efficiency ratio
56.63
%
54.98
%
56.31
%
54.78
%
Net chargeoffs/(recoveries) to average loans
-0.008
%
-0.008
%
-0.025
%
-0.039
%
Average Balances
(thousands, unaudited)
Average assets
459,186
408,426
444,588
404,284
Average interest-earning assets
437,455
386,370
423,343
382,555
Average interest-bearing liabilities
238,822
161,659
217,141
158,859
Average gross loans
178,998
180,687
179,066
176,759
Average deposits
333,662
346,817
333,335
343,914
Average equity
36,315
31,526
34,618
30,300
End of period
12/31/2023
12/31/2022
Credit Quality
Non-performing loans
492,242
404,095
Non-performing loans to total loans
0.27
%
0.22
%
Non-performing loans to total assets
0.11
%
0.10
%
Allowance for credit losses to total loans
2.49
%
2.26
%
Nonperforming assets as a percentage of total loans and OREO
0.27
%
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.