Chino Commercial Bancorp Reports 19% Increase in Net Earnings

·10 min read

CHINO, Calif., Jan. 21, 2022 (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, and year ended December 31, 2021. Net earnings for the fourth quarter of 2021, were $707 thousand, or an increase of 1.2%, as compared with earnings of $699 thousand for the same quarter last year. Net earnings per basic and diluted share was $0.26 for the fourth quarter of 2021, and for the same quarter last year.

Net earnings for the fiscal year ended December 31, 2021 increased by 19.3% or by $506 thousand to $3.1 million, as compared to $2.6 million for fiscal year 2020. Net earnings per basic and diluted share was $1.17 for the fiscal year 2021, and $0.98 for fiscal year 2020.

Dann H. Bowman, President and Chief Executive Officer, stated, “We are very pleased with the performance of the Bank during 2021, which ended the year with record levels of Deposits, Revenue, Earnings and Earnings per Share. As we begin to emerge from the Pandemic, we are optimistic about the business opportunities available to the Bank; and we are looking forward to 2022.”

Financial Condition

At December 31, 2021, total assets were $378.5 million, an increase of $63.7 million or 20.02% over $314.8 million at December 31, 2020. Total deposits increased by $61.2 million or 23.7% to $318.9 million as of December 31, 2021, compared to $257.7 million as of December 31, 2020. At December 31, 2021, the Company’s core deposits represent 97.9% of the total deposits.

Gross loans decreased by 10.0 % or $19.5 million as of December 31, 2021 to $176.2 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 December 31, 2021, and December 31, 2020. OREO properties remained at zero as of December 31, 2021 and December 31, 2020 respectively.

Earnings

The Company posted net interest income of $2.6 million for the three months ended December 31, 2021 and $2.9 million for the same quarter last year. Average interest-earning assets were $348.6 million with average interest-bearing liabilities of $145.9 million, yielding a net interest margin of 2.63% for the fourth quarter of 2021, as compared to the average interest-earning assets of $292.2 million with average interest-bearing liabilities of $136.3 million, yielding a net interest margin of 3.66% for the fourth quarter of 2020.

Non-interest income totaled $606.2 thousand for the fourth quarter of 2021, or an increase of 15.9% as compared with $440.2 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 $1.9 million for the three months ended December 31, 2021, and $1.8 million for the same period last year. The largest component of general and administrative expenses was salary and benefits expense of $1.2 million for the fourth quarter of 2021 and $1.1 million for the same period last year.

Income tax expense was $259.1 thousand which represents a decrease of $16 thousand or 5.9% for the three months ended December 31, 2021, as compared to $275.3 thousand for the three months ended September 30, 2020. The effective income tax rate for the fourth quarter of 2021 and 2020 were approximately 26.8% and 28.3% 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.

CHINO COMMERCIAL BANCORP

CONSOLIDATED BALANCE SHEET

December 31, 2021 and 2020

December 31, 2021

December 31, 2020

(unaudited)

(audited)

ASSETS:

Cash and due from banks

$

135,593,445

$

58,075,217

Federal funds sold

-

-

Total cash and cash equivalents

135,593,445

58,075,217

Interest-bearing deposits in other banks

-

-

Investment securities available for sale

40,270,538

32,370,042

Investment securities held to maturity (fair value approximates

$12,834,547 at December 31, 2021 and $19,556,250 at December 31, 2020)

12,435,291

18,626,525

Total investments

52,705,829

50,996,567

Loans

Construction

414,072

1,014,462

Real estate

119,542,970

119,302,116

Commercial

56,078,174

75,237,752

Installment

148,731

110,475

Credit Cards

0

-

Gross loans

176,183,947

195,664,805

Unearned fees and discounts

(1,419,084

)

(1,678,642

)

Loans net of unearned fees and discount

174,764,863

193,986,163

Allowance for loan losses

(3,888,480

)

(3,271,921

)

Net loans

170,876,383

190,714,242

Fixed assets, net

5,897,342

6,145,711

Accrued interest receivable

877,104

1,013,732

Stock investments, restricted, at cost

2,045,200

1,554,200

Bank-owned life insurance

7,871,339

4,721,232

Other assets

2,647,811

1,618,717

Total assets

$

378,514,453

$

314,839,618

LIABILITIES:

Deposits

Non-interest bearing

$

195,274,304

$

145,433,815

Interest bearing

NOW and money market

85,144,889

76,774,242

Savings

25,147,966

21,467,034

Time deposits less than $250,000

9,616,481

4,473,409

Time deposits of $250,000 or greater

3,695,546

9,563,300

Total deposits

318,879,186

257,711,800

Accrued interest payable

130,327

137,487

Borrowings from Federal Home Loan Bank (FHLB)

15,000,000

25,000,000

Accrued expenses & other payables

1,817,704

1,674,150

Subordinated debt

10,000,000

-

Subordinated notes payable to subsidiary trust

3,093,000

3,093,000

Total liabilities

348,920,217

287,616,437

SHAREHOLDERS' EQUITY

Common stock, authorized 10,000,000 shares with no par value, issued and
outstanding 2,676,799 shares at December 31, 2021 and December 31, 2020,
respectively.

10,502,558

10,502,557

Retained earnings

19,556,872

16,428,258

Accumulated other comprehensive income/(loss)

(465,194

)

292,366

Total shareholders' equity

29,594,236

27,223,181

Total liabilities & shareholders' equity

$

378,514,453

$

314,839,618



CHINO COMMERCIAL BANCORP

CONSOLIDATED STATEMENTS OF NET INCOME

For the three months ended

For the 12 months ended

December 31

December 31

2021

2020

2021

2020

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Interest income

Interest and fee income on loans

$

2,271,284

$

2,624,645

$

9,914,710

$

9,207,406

Interest on federal funds sold and FRB deposits

47,599

14,194

130,615

154,934

Interest on time deposits in banks

-

-

-

1,856

Interest on investment securities

242,681

225,264

880,324

912,489

Total interest income

2,561,564

2,864,103

10,925,649

10,276,685

Interest Expense

Interest on deposits

42,090

53,723

187,460

369,628

Other borrowings

207,193

124,947

693,963

511,815

Total interest expense

249,283

178,670

881,423

881,443

Net interest income

2,312,281

2,685,433

10,044,226

9,395,242

Provision for loan losses

-

400,000

555,000

770,000

Net interest income after provision for loan losses

2,312,281

2,285,433

9,489,226

8,625,242

Non-interest income

Service charges on deposit accounts

412,268

342,342

1,545,628

1,293,966

Other miscellaneous income

119,487

47,642

343,247

163,514

Dividend income from restricted stock

28,693

18,421

101,622

71,664

Income from bank-owned life insurance

45,711

31,840

150,107

125,648

Total non-interest income

606,159

440,245

2,140,604

1,654,792

Non-interest expenses

Salaries and employee benefits

1,234,412

1,064,780

4,408,276

4,058,653

Occupancy and equipment

157,939

160,415

619,851

623,102

Data and item processing

173,749

147,958

664,422

589,351

Advertising and marketing

26,664

33,869

126,457

144,167

Legal and professional fees

900

76,075

138,895

209,565

Regulatory assessments

41,768

33,480

149,569

116,167

Insurance

10,106

10,567

40,141

38,380

Directors' fees and expenses

32,520

32,040

129,600

130,054

Other expenses

274,294

192,528

1,018,815

692,060

Total non-interest expenses

1,952,352

1,751,712

7,296,026

6,601,499

Income before income tax expense

966,088

973,966

4,333,804

3,678,535

Income tax expense

259,105

275,285

1,202,816

1,053,805

Net income

$

706,983

$

698,681

$

3,130,988

$

2,624,730

Basic earnings per share

$

0.26

$

0.26

$

1.17

$

0.98

Diluted earnings per share

$

0.26

$

0.26

$

1.17

$

0.98


For the three months ended

For the twelve months ended

December 31

December 31

2021

2020

2021

2020

KEY FINANCIAL RATIOS

(unaudited)

Annualized return on average equity

10.68%

11.37%

11.70%

10.69%

Annualized return on average assets

0.75%

0.89%

0.89%

0.92%

Net interest margin

2.63%

3.66%

3.06%

3.81%

Core efficiency ratio

66.90%

56.04%

59.88%

59.74%

Net chargeoffs/(recoveries) to average loans

-0.008%

0.008%

-0.03%

-0.07%

AVERAGE BALANCES

(thousands, unaudited)

Average assets

$

374,871

$

313,827

$

353,393

$

284,525

Average interest-earning assets

$

348,574

$

292,210

$

328,772

$

246,612

Average gross loans

$

175,748

$

192,418

$

187,096

$

173,923

Average deposits

$

325,436

$

253,908

$

305,234

$

224,966

Average equity

$

26,488

$

24,583

$

26,772

$

24,551

CREDIT QUALITY

End of period

(unaudited)

December 31, 2021

December 31, 2020

Non-performing loans

$

115,434

$

119,836

Non-performing loans to total loans

0.07%

0.06%

Non-performing loans to total assets

0.03%

0.04%

Allowance for loan losses to total loans

2.21%

1.67%

Nonperforming assets as a percentage of total loans and OREO

0.07%

0.06%

Allowance for loan losses to non-performing loans

3368.57%

2730.33%

OTHER PERIOD-END STATISTICS

(unaudited)

Shareholders equity to total assets

7.82%

8.65%

Net loans to deposits

53.59%

74.00%

Non-interest bearing deposits to total deposits

61.24%

56.43%

Total capital to total risk-weighted assets

21.40%

18.30%

Tier 1 capital to total risk-weighted assets

24.35%

20.16%

Company Leverage Ratio

8.84%

11.44%

CONTACT: 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.