CHINO, Calif., April 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 first quarter ended March 31, 2024.
Net earnings for the first quarter of 2024, were $1.24 million, which represents an increase of $75.2 thousand or 6.4% in comparison with the same quarter last year. Net earnings per basic and diluted share were $0.39 for the first quarter of 2024 and $0.36 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 in Q1’24. Loan quality remains very strong, with the Bank having only one delinquent loan at quarter-end, and no pending foreclosures, or OREO. Despite rising costs of doing business, so far, our small business customers have been able to adjust, and in several cases we have even seen improved financial performance. At this time the Bank has adequate capital and liquidity to continue to lend to its customers, and is expanding lending in the Inland Empire.
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. Since the Pandemic of 2020, efficient and cost effective processing of electronic payments has become a very important part of managing cash flow and business operations. 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 OCC 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 March 31, 2024, total assets were $461.5 million, an increase of $15.1 million or 3.38% over $446.4 million at December 31, 2023. Total deposits increased by $15.4 million or 4.8% to $335.2 million as of March 31, 2024, compared to $319.8 million as of December 31, 2023. At March 31, 2024, the Company’s core deposits represent 98.08% of the total deposits.
Gross loans increased by $1.5 million or 1.0% to $180.5 million as of March 31, 2024, compared to $179.0 million as of December 31, 2023. The Bank had three non-performing loans for the quarter ended March 31, 2024, and as of December 31, 2023. OREO properties remained at zero as of March 31, 2024 and December 31, 2023 respectively.
Earnings
The Company posted net interest income of $3.3 million for the three months ended March 31, 2024 and $3.2 million or the same quarter last year, respectively. Average interest-earning assets were $469.3 million with average interest-bearing liabilities of $276.9 million, yielding a net interest margin of 2.87% for the first quarter of 2024, as compared to the average interest-earning assets of $380.3 million with average interest-bearing liabilities of $168.7 million, yielding a net interest margin of 3.39% for the first quarter of 2023.
Non-interest income totaled $773.5 thousand for the first quarter of 2024, or an increase of 30.05% as compared with $594.8 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 $132.8 thousand, representing an increase of $91.8 thousand during the first quarter as compared to $41.0 thousand for the same period last year.
General and administrative expenses were $2.4 million for the three months ended March 31, 2024, and $2.1 million for the same period last year. The largest component of general and administrative expenses was salary and benefits expense of $1.5 million for the first quarter of 2023 and $1.4 million for the same period last year.
Income tax expense was $490 thousand, which represents an increase of $25 thousand or 5.47% for the three months ended March 31, 2024, as compared to $464 thousand for the same quarter last year. The effective income tax rate for the first quarter of 2024 was approximately 28.2%, and 28.4% 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 Bankcorp and Subsidiary | |||||||||||
| Consolidated Statements of Financial Condition | |||||||||||
| As of | |||||||||||
| 3/31/2024 | 12/31/2023 | ||||||||||
| unaudited | audited | ||||||||||
| Assets | |||||||||||
| Cash and due from banks | $ | 44,803,814 | $ | 35,503,719 | |||||||
| Cash and cash equivalents | 44,803,814 | 35,503,719 | |||||||||
| Fed funds sold | 30,175 | 25,218 | |||||||||
| 30,175 | 25,218 | ||||||||||
| Investment securities available for sale , net of zero allowance for credit losses | 6,615,525 | 6,736,976 | |||||||||
| Investment securities held to maturity , net of zero allowance for credit losses | 210,812,408 | 208,506,305 | |||||||||
| Total investments | 217,427,933 | 215,243,282 | |||||||||
| Loans held for investment, net of allowance for credit losses of | |||||||||||
| $4,443,654 in 2023, and $4,465,622 in 2023 | 175,570,771 | 174,352,293 | |||||||||
| Stock investments, restricted, at cost | 3,126,100 | 3,126,100 | |||||||||
| Fixed assets, net | 7,225,018 | 5,466,358 | |||||||||
| Accrued interest receivable | 1,596,955 | 1,439,178 | |||||||||
| Bank owned life insurance | 8,303,469 | 8,247,174 | |||||||||
| Other assets | 3,398,462 | 3,010,916 | |||||||||
| Total assets | $ | 461,482,698 | $ | 446,414,237 | |||||||
| Liabilities | |||||||||||
| Deposits | |||||||||||
| Noninterest-bearing | 175,979,729 | 167,131,411 | |||||||||
| Interest-bearing | 159,203,159 | 152,669,374 | |||||||||
| Total deposits | 335,182,888 | 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 | 722,181 | 2,156,153 | |||||||||
| Other liabilities | 1,789,798 | 1,876,474 | |||||||||
| Total liabilities | 422,787,867 | 408,926,412 | |||||||||
| Shareholders’ Equity | |||||||||||
| Common stock, no par value, 10,000,000 shares authorized | |||||||||||
| and 3,211,970 shares issued and outstanding | |||||||||||
| at March 31, 2024 and December 31, 2023 | 10,502,558 | 10,502,557 | |||||||||
| Retained earnings | 30,164,405 | 28,920,732 | |||||||||
| Accumulated other comprehensive loss – unrecognized | |||||||||||
| loss on available for sale, net of taxes | (1,972,133 | ) | (1,935,464 | ) | |||||||
| Total shareholders’ equity | 38,694,830 | 37,487,824 | |||||||||
| Total liabilities and shareholders’ equity | $ | 461,482,698 | $ | 446,414,237 | |||||||
| Chino Commercial Bankcorp and Subsidiary | |||||||||
| Consolidated Statements of Net Income | |||||||||
| For the three month ended | |||||||||
| 31-Mar | |||||||||
| 2024 | 2023 | ||||||||
| (unaudited) | (unaudited) | ||||||||
| Interest income | |||||||||
| Interest and fees on loans | 2,727,801 | 2,390,159 | |||||||
| Interest on investment securities | 1,936,105 | 1,133,586 | |||||||
| Other interest income | 1,030,948 | 405,234 | |||||||
| Total interest income | 5,694,854 | 3,928,979 | |||||||
| Interest expense | |||||||||
| Interest on deposits | 1,032,935 | 376,861 | |||||||
| Interest on borrowings | 1,312,693 | 371,403 | |||||||
| Total interest expense | 2,345,628 | 748,264 | |||||||
| Net interest income | 3,349,226 | 3,180,716 | |||||||
| Provision for loan losses | (2,933 | ) | 2,136 | ||||||
| Net interest income after provision for loan losses | 3,352,159 | 3,178,580 | |||||||
| Noninterest income | |||||||||
| Service charges and fees on deposit accounts | 439,857 | 359,899 | |||||||
| Interchange fees | 92,271 | 103,159 | |||||||
| Earnings from bank-owned life insurance | 56,295 | 46,311 | |||||||
| Merchant services processing | 132,768 | 40,955 | |||||||
| Other miscellaneous income | 52,272 | 44,439 | |||||||
| Total noninterest income | 773,464 | 594,763 | |||||||
| Noninterest expense | |||||||||
| Salaries and employee benefits | 1,501,427 | 1,352,935 | |||||||
| Occupancy and equipment | 160,581 | 153,591 | |||||||
| Merchant services processing | 71,209 | 10,671 | |||||||
| Other expenses | 659,466 | 623,795 | |||||||
| Total noninterest expense | 2,392,683 | 2,140,992 | |||||||
| Income before income tax expense | 1,732,939 | 1,632,350 | |||||||
| Provision for income taxes | 489,266 | 463,901 | |||||||
| Net income | $ | 1,243,673 | $ | 1,168,449 | |||||
| Basic earnings per share | $ | 0.39 | $ | 0.36 | |||||
| Diluted earnings per share | $ | 0.39 | $ | 0.36 | |||||
| Chino Commercial Bankcorp and Subsidiary | |||||
| Financial Highlights | |||||
| For the three month ended | |||||
| 31-Mar | |||||
| Key Financial Ratios | 2024 | 2023 | |||
| (unaudited) | |||||
| Annualized return on average equity | 13.07 | % | 14.26 | % | |
| Annualized return on average assets | 1.01 | % | 1.16 | % | |
| Net interest margin | 2.87 | % | 3.39 | % | |
| Core efficiency ratio | 58.04 | % | 56.71 | % | |
| Net chargeoffs/(recoveries) to average loans | -0.010 | % | -0.008 | % | |
| Average Balances | |||||
| (thousands, unaudited) | |||||
| Average assets | 494,406 | 401,948 | |||
| Average interest-earning assets | 469,307 | 380,256 | |||
| Average interest-bearing liabilities | 276,918 | 168,672 | |||
| Average gross loans | 182,133 | 181,162 | |||
| Average deposits | 318,818 | 328,448 | |||
| Average equity | 38,073 | 32,770 | |||
| End of period | |||||
| 3/31/2024 | 12/31/2023 | ||||
| Credit Quality | |||||
| Non-performing loans | 475,062 | 492,242 | |||
| Non-performing loans to total loans | 0.26 | % | 0.27 | % | |
| Non-performing loans to total assets | 0.10 | % | 0.11 | % | |
| Allowance for credit losses to total loans | 2.46 | % | 2.49 | % | |
| Nonperforming assets as a percentage of total loans and OREO | 0.26 | % | 0.27 | % | |
| Allowance for credit losses to non-performing loans | 935.38 | % | 905.82 | % | |
| Other Period-end Statistics | |||||
| Shareholders equity to total assets | 8.38 | % | 8.40 | % | |
| Net loans to deposits | 52.38 | % | 54.52 | % | |
| Non-interest bearing deposits to total deposits | 52.50 | % | 52.26 | % | |
| Company leverage ratio | 8.85 | % | 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.
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