GlobeNewswire
CHINO, Calif., Jan. 22, 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 fourth quarter ended December 31, 2020. Net earnings for the fourth quarter 2020, were $699 thousand, or an increase of 39.1%, as compared with earnings of $502 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 $0.31 for the fourth quarter of 2020, and $0.23 for the same quarter last year. Dann H. Bowman, President and Chief Executive Officer, stated: “Despite the difficulty being experienced in our community because of COVID, the Bank has performed well during this time. By assisting small business customers and households, we have experienced a 37% increase in total assets, a 35% increase in total loans, and a 2.7% increase in net after tax earnings. Loan quality also remains very strong, with the Bank having no loan delinquencies and no foreclosed properties at year-end. “We believe that during tough times like these, the Bank’s value proposition stands out the most, and we may have many more opportunities to gain new banking relationships. We have a great team, a great market, and we are excited about the prospects for the Company over the next several years.” Financial Condition At December 31, 2020, total assets were $314.8 million, an increase of $85.3 million or 37.2% over $229.5 million at December 31, 2019. Total deposits increased by 43.1% or $77.6 million to $257.7 million as of December 31, 2020, compared to $180.2 million as of December 31, 2019. At December 31, 2020, the Company’s core deposits represent 96.3% of the total deposits. Gross loans increased by 35.5% or $51.3 million as of December 31, 2020 to $195.7 million, as compared with $144.4 million as of December 31, 2019. The Bank had one non-performing loan for the quarters ended December 31, 2020, and December 31, 2019. OREO properties remained at zero as of December 31, 2020 and December 31, 2019 respectively. The increases in total assets, deposits and loans are attributed to Bank’s response to the overwhelming request of PPP loans. Overall, the Bank approved and funded 396 PPP loans with an outstanding balance of $46.7 million as of December 31, 2020. Earnings The Company posted net interest income of $2.3 million for the three months ended December 31, 2020 and $2.0 million for the same quarter last year. Average interest-earning assets were $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, as compared to the average interest-earning assets of $177.3 million with average interest-bearing liabilities of $119.4 million, yielding a net interest margin of 4.41% for the fourth quarter of 2019. Non-interest income totaled $440.2 thousand for the fourth quarter of 2020, or a decrease of 3.6% as compared with $456.6 thousand earned during the same quarter last year. The majority of the decrease is attribute to a significant decrease in overdraft fees. General and administrative expenses were $1.8 million for the three months ended December 31, 2020, and $1.7 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 fourth quarter of 2020 and $1.0 million thousand for the same period last year. Income tax expense was $275.3 thousand which represents an increase of $78 thousand or 39.8% for the three months ended December 31, 2020, as compared to $197.0 thousand for the three months ended December 31, 2019. The effective income tax rate for the fourth quarter of 2020 and 2019 were approximately 28.6% and 28.5% respectively, and for the nine months ending December 31, 2020 and 2019, the effective income tax rates were 28.3% and 28.2% 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 BANCORPCONSOLIDATED BALANCE SHEETDecember 31, 2020 and December 31, 2019 December 31, 2020 December 31, 2019 (unaudited) (audited)ASSETS: Cash and due from banks$58,075,217 $4,363,753 Federal funds sold - 32,415,000 Total cash and cash equivalents 58,075,217 36,778,753 Interest-bearing deposits in other banks - 496,000 Investment securities available for sale 32,370,042 7,977,936 Investment securities held to maturity (fair value approximates $19,556,250 at December 31, 2020 and $21,683,834 at December 31, 2019) 18,626,525 28,367,056 Total investments 50,996,567 36,840,992 Loans Construction 1,014,462.00 - Real estate 119,302,116 115,633,626 Commercial 75,237,752 28,522,543 Installment 110,475 232,328 Credit Cards 0 - Gross loans 195,664,805 144,388,497 Unearned fees and discounts (1,678,641) (438,380)Loans net of unearned fees and discount 193,986,164 143,950,117 Allowance for loan losses (3,271,921) (2,391,765)Net loans 190,714,243 141,558,352 Fixed assets, net 6,145,711 6,401,773 Accrued interest receivable 1,013,732 619,856 Stock investments, restricted, at cost 1,554,200 1,440,900 Bank-owned life insurance 4,721,232 4,595,584 Other assets 1,618,716 1,270,936 Total assets$314,839,618 $229,507,145 LIABILITIES: Deposits Non-interest bearing$145,433,815 $88,412,668 Interest bearing NOW and money market 76,774,420 64,520,387 Savings 21,466,856 12,209,281 Time deposits less than $250,000 9,563,300 9,537,555 Time deposits of $250,000 or greater 4,473,409 5,471,451 Total deposits 257,711,800 180,151,342 Accrued interest payable 137,487 203,246 Borrowings from Federal Home Loan Bank (FHLB) 25,000,000 20,000,000 Accrued expenses & other payables 1,674,150 1,686,979 Subordinated notes payable to subsidiary trust 3,093,000 3,093,000 Total liabilities 287,616,437 205,134,567 SHAREHOLDERS' EQUITY Common stock, authorized 10,000,000 shares with no par value, issued andoutstanding 2,230,808 shares at December 31, 2020 and December 31, 2019,respectively. 10,502,558 10,502,557 Retained earnings 16,428,258 13,803,528 Accumulated other comprehensive income/(loss) 292,365 66,493 Total shareholders' equity 27,223,181 24,372,578 Total liabilities & shareholders' equity$314,839,618 $229,507,145 CHINO COMMERCIAL BANCORPCONSOLIDATED STATEMENTS OF NET INCOME For the three months ended For the twelve months ended December 31 December 31 2020 2019 2020 2019 (unaudited) (unaudited) (unaudited) (unaudited)Interest income Interest and fee income on loans$2,624,645 $1,982,610 $9,207,404 $7,884,573Interest on federal funds sold and FRB deposits 14,194 184,875 154,934 510,650Interest on time deposits in banks - 3,219 1,856 35,077Interest on investment securities 225,264 167,707 912,489 1,078,908Total interest income 2,864,103 2,338,411 10,276,683 9,509,208 Interest Expense Interest on deposits 53,723 230,243 369,628 935,215Other borrowings 124,947 139,476 511,815 413,749Total interest expense 178,670 369,719 881,443 1,348,964Net interest income 2,685,433 1,968,692 9,395,240 8,160,244Provision for loan losses 400,000 - 770,000 40,000 Net interest income after provision for loan losses 2,285,433 1,968,692 8,625,240 8,120,244 Non-interest income Service charges on deposit accounts 342,342 382,839 1,293,966 1,530,853Other miscellaneous income 47,642 24,567 163,513 190,565Dividend income from restricted stock 18,421 17,267 71,664 88,281Income from bank-owned life insurance 31,840 31,901 125,648 110,699Total non-interest income 440,245 456,574 1,654,791 1,920,398 Non-interest expenses Salaries and employee benefits 1,064,780 1,002,259 4,058,653 3,941,211Occupancy and equipment 160,415 155,473 623,102 632,501Data and item processing 147,958 123,409 589,351 469,176Advertising and marketing 33,869 30,867 144,167 97,035Legal and professional fees 76,075 217,088 209,565 430,050Regulatory assessments 33,480 (12,940) 116,167 81,578Insurance 10,567 10,295 38,380 37,911Directors' fees and expenses 32,040 32,742 130,054 137,142Other expenses 192,528 166,709 692,057 675,289Total non-interest expenses 1,751,712 1,725,902 6,601,496 6,501,893Income before income tax expense 973,966 699,364 3,678,535 3,538,749Income tax expense 275,285 196,971 1,053,805 984,794Net income$698,681 $502,393 $2,624,730 $2,553,955 Basic earnings per share$0.31 $0.23 $1.18 $1.14Diluted earnings per share$0.31 $0.23 $1.18 $1.14 For the three months ended For the nine months ended December 31 December 31 2020 2019 2020 2019 KEY FINANCIAL RATIOS (unaudited) Annualized return on average equity 11.37% 8.31% 10.69% 11.03%Annualized return on average assets 0.89% 0.85% 0.92% 1.17%Net interest margin 3.66% 4.41% 3.81% 4.46%Core efficiency ratio 56.04% 71.16% 59.74% 64.50%Net chargeoffs/(recoveries) to average loans 0.008% 0.002% -0.07% -0.05% AVERAGE BALANCES (thousands, unaudited) Average assets $313,827 $235,723 $284,525 $219,167 Average interest-earning assets $292,210 $177,259 $246,617 $183,108 Average gross loans $192,418 $136,963 $173,927 $136,504 Average deposits $253,908 $186,587 $224,971 $179,226 Average equity $24,583 $24,182 $24,551 $23,156 CREDIT QUALITY End of period (unaudited) December 31, 2020 December 31, 2019 Non-performing loans $119,836 $120,423 Non-performing loans to total loans 0.06% 0.08% Non-performing loans to total assets 0.04% 0.05% Allowance for loan losses to total loans 1.67% 1.66% Nonperforming assets as a percentage of total loans and OREO 0.06% 0.08% Allowance for loan losses to non-performing loans 2730.33% 1986.14% OTHER PERIOD-END STATISTICS (unaudited) Shareholders equity to total assets 8.65% 10.62% Net loans to deposits 74.00% 78.58% Non-interest bearing deposits to total deposits 56.43% 49.08% Community Bank Leverage Ratio 11.44% 13.74%