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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Chino Commercial Bancorp Reports 37% Increase in Net Earnings

April 16, 2021 GMT

CHINO, Calif., April 16, 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 first quarter ended March 31, 2021. Net earnings for the first quarter 2021, were $838 thousand, or an increase of 36.6%, as compared with earnings of $614 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 $0.38 for the first quarter of 2021, and $0.28 for the same quarter last year.  

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Dann H. Bowman, President and Chief Executive Officer, stated: “The Bank continues to perform well during these difficult times. Stimulus programs like the SBA PPP program for small businesses have been very helpful in allowing small businesses to remain viable. It is during difficult times like these that the Bank’s value proposition of providing focused, personalized service to its customers becomes more important than ever. Having a telephone number and direct contact with your banker can make a big difference when you have to make a fast decision, or need immediate help.”

Financial Condition

At March 31, 2021, total assets were $338.7 million, an increase of $23.9 million or 7.6% over $314.8 million at December 31, 2020. Total deposits increased by 9.2% or $23.6 million to $281.3 million as of March 31, 2021, compared to $257.7 million as of December 31, 2020. At March 31, 2021, the Company’s core deposits represent 96.8% of the total deposits.

Gross loans increased by 4.0% or $7.7 million as of March 31, 2021 to $203.4 million, as compared with $195.7 million as of December 31, 2020.   The Bank had one non-performing loan for the quarters ended March 31, 2021, and December 31, 2020.   OREO properties remained at zero as of March 31, 2021 and December 31, 2020 respectively.

The increases in total assets, deposits and loans are attributed to Bank’s response to the overwhelming request of PPP loans. Overall, since the program started the Bank approved and funded 644 PPP loans with an outstanding balance of $58.2 million as of March 31, 2021.

Earnings

The Company posted net interest income of $2.7 million for the three months ended March 31, 2021 and $2.1 million for the same quarter last year. Average interest-earning assets were $305.5 million with average interest-bearing liabilities of $138.6 million, yielding a net interest margin of 3.59% for the first quarter of 2021, as compared to the average interest-earning assets of $184.0 million with average interest-bearing liabilities of $114.8 million, yielding a net interest margin of 4.56% for the first quarter of 2020.

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Non-interest income totaled $463.5 thousand for the first quarter of 2021, or an increase of 1% as compared with $460.8 thousand earned during the same quarter last year. The majority of the increase is attribute to increases to dividend income and other fees.

General and administrative expenses were $1.8 million for the three months ended March 31, 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 $1.0 million for the first quarter of 2021 and for the same period last year.

Income tax expense was $328.6 thousand which represents an increase of $84 thousand or 34.4% for the three months ended March 31, 2021, as compared to $244.5 thousand for the three months ended March 31, 2020. The effective income tax rate for the first quarter of 2021 and 2020 were approximately 28.2% and 28.5% 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
March 31, 2021 and December 31, 2020
 
 March 31, 2021 December 31, 2020
 (unaudited) (audited)
ASSETS:   
Cash and due from banks$78,939,945  $58,075,217 
Federal funds sold -   - 
Total cash and cash equivalents 78,939,945   58,075,217 
    
Interest-bearing deposits in other banks -   - 
Investment securities available for sale 30,155,721   32,370,042 
Investment securities held to maturity (fair value approximates   
$17,669,746 at March 31, 2021 and $19,556,250 at December 31, 2020) 16,973,739   18,626,525 
Total investments 47,129,460   50,996,567 
Loans   
Construction 1,195,030   1,014,462 
Real estate 115,763,483   119,302,116 
Commercial 86,343,727   75,237,752 
Installment 102,386   110,475 
Gross loans 203,404,626   195,664,805 
Unearned fees and discounts (2,337,377)  (1,678,642)
Loans net of unearned fees and discount 201,067,249   193,986,163 
Allowance for loan losses (3,488,458)  (3,271,921)
Net loans 197,578,791   190,714,242 
    
Fixed assets, net 6,097,603   6,145,711 
Accrued interest receivable 979,621   1,013,732 
Stock investments, restricted, at cost 1,554,200   1,554,200 
Bank-owned life insurance 4,751,796   4,721,232 
Other assets 1,672,294   1,618,717 
Total assets$338,703,710  $314,839,618 
    
LIABILITIES:   
Deposits   
Non-interest bearing$167,532,314  $145,433,815 
Interest bearing   
NOW and money market 76,524,209   76,774,242 
Savings 23,218,709   21,467,034 
Time deposits less than $250,000 9,996,990   4,473,409 
Time deposits of $250,000 or greater 4,036,340   9,563,300 
Total deposits 281,308,562   257,711,800 
    
Accrued interest payable 99,106   137,487 
Borrowings from Federal Home Loan Bank (FHLB) 25,000,000   25,000,000 
Accrued expenses & other payables 1,731,826   1,674,150 
Subordinated notes payable to subsidiary trust 3,093,000   3,093,000 
Total liabilities 311,132,494   287,616,437 
    
SHAREHOLDERS' EQUITY   
Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 2,230,808 shares at March 31, 2021 and December 31, 2020, respectively. 10,502,558   10,502,557 
Retained earnings 17,266,670   16,428,258 
Accumulated other comprehensive income/(loss) (298,012)  292,366 
Total shareholders' equity 27,471,216   27,223,181 
Total liabilities & shareholders' equity$338,703,710  $314,839,618 
    
CHINO COMMERCIAL BANCORP
CONSOLIDATED STATEMENTS OF NET INCOME
    
 For the three months ended
 March 31
 2021 2020
 (unaudited) (unaudited)
Interest income   
Interest and fee income on loans$2,648,462 $2,068,444
Interest on federal funds sold and FRB deposits 16,265  112,930
Interest on time deposits in banks -  1,856
Interest on investment securities 213,442  214,152
Total interest income 2,878,169  2,397,382
    
Interest Expense   
Interest on deposits 49,794  177,833
Other borrowings 122,064  134,654
Total interest expense 171,858  312,487
Net interest income 2,706,311  2,084,895
Provision for loan losses 200,000  50,000
    
Net interest income after provision for loan losses 2,506,311  2,034,895
    
Non-interest income   
Service charges on deposit accounts 348,098  368,683
Other miscellaneous income 61,716  39,100
Dividend income from restricted stock 23,108  21,971
Income from bank-owned life insurance 30,564  31,035
Total non-interest income 463,486  460,789
    
Non-interest expenses   
Salaries and employee benefits 1,048,224  1,023,362
Occupancy and equipment 156,286  149,686
Data and item processing 156,549  134,488
Advertising and marketing 20,337  42,604
Legal and professional fees 44,265  44,640
Regulatory assessments 33,480  18,261
Insurance 9,823  8,834
Directors' fees and expenses 32,280  33,214
Other expenses 301,581  182,394
Total non-interest expenses 1,802,825  1,637,483
Income before income tax expense 1,166,972  858,201
Income tax expense 328,560  244,524
Net income$838,412 $613,677
    
Basic earnings per share$0.38 $0.28
Diluted earnings per share$0.38 $0.28
    
 For the three months ended
 March 31
 2021 2020
KEY FINANCIAL RATIOS   
(unaudited)   
Annualized return on average equity 12.38%  9.89%
Annualized return on average assets 1.02%  1.05%
Net interest margin 3.59%  4.56%
Core efficiency ratio 56.88%  64.32%
Net chargeoffs/(recoveries) to average loans -0.008%  -0.056%
    
AVERAGE BALANCES   
(thousands, unaudited)   
Average assets$327,614  $233,703 
Average interest-earning assets$305,535  $184,016 
Average gross loans$195,983  $144,491 
Average deposits$270,019  $183,970 
Average equity$27,091  $24,809 
    
    
    
CREDIT QUALITYEnd of period
(unaudited)March 31, 2021 December 31, 2020
    
Non-performing loans$120,507  $107,672 
    
Non-performing loans to total loans 0.06%  0.06%
Non-performing loans to total assets 0.04%  0.03%
Allowance for loan losses to total loans 1.72%  1.67%
Nonperforming assets as a percentage of total loans and OREO 0.06%  0.06%
Allowance for loan losses to non-performing loans 2894.82%  3038.79%
    
OTHER PERIOD-END STATISTICS   
(unaudited)   
Shareholders equity to total assets 8.11%  8.65%
Net loans to deposits 70.24%  74.00%
Non-interest bearing deposits to total deposits 59.55%  56.43%
Total capital to total risk-weighted assets 20.81%  18.30%
Tier 1 capital to total risk-weighted assets 23.46%  20.16%
Community Bank Leverage Ratio 11.30%  11.44%