CHINO, Calif., Oct. 16, 2020 (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 third quarter ended September 30, 2020. Net earnings for the third quarter 2020, were $664 thousand, or an increase of 3.72%, as compared with earnings of $640 thousand for the same quarter last year. The moderate increase in earnings is primarily attributed to an increase in provision for loan losses due to current economic conditions created by the COVID-19 pandemic. Net earnings per basic and diluted share was $0.30 for the third quarter of 2020, and $0.29 for the same quarter last year.  

Dann H. Bowman, President and Chief Executive Officer, stated: “We are very pleased with the performance of the Bank during the third quarter, and year-to-date. We have seen a tremendous surge in demand for credit by our small business customers over the last six months, with total loans increasing by 34% year-to-date. Loan quality also remains very strong, with the Bank having no loan delinquencies and no foreclosed properties at quarter-end. Similarly, deposits have also increased by $62 million, or 34% year-to-date, which has allowed the Bank to meet the increased loan demands of its customers.

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 September 30, 2020, total assets were $303.5 million, an increase of $74.0 million or 32.2% over $229.5 million at December 31, 2019. Total deposits increased by 34.4% or $61.9 million to $242.0 million as of September 30, 2020, compared to $180.2 million as of December 31, 2019. At September 30, 2020, the Company’s core deposits represent 96.5% of the total deposits.

Gross loans increased by 33.9% or $48.9 million as of September 30, 2020 to $193.3 million, as compared with $144.4 million as of December 31, 2019.   The Bank had one non-performing loan for the quarters ended September 30, 2020, and December 31, 2019.   OREO properties remained at zero as of September 30, 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 $50.2 million as of September 30, 2020.

Earnings

The Company posted net interest income of $2.4 million for the three months ended September 30, 2020 and $2.1 million for the same quarter last year. Average interest-earning assets were $304.4 million with average interest-bearing liabilities of $135.8 million, yielding a net interest margin of 3.31% for the third quarter of 2020, as compared to the average interest-earning assets of $179.2 million with average interest-bearing liabilities of $116.1 million, yielding a net interest margin of 4.63% for the third quarter of 2019.

Non-interest income totaled $396.0 thousand for the third quarter of 2020, or a decrease of 16.2% as compared with $473.0 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 $1.6 million for the three months ended September 30, 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 $999.5 thousand for the third quarter of 2020 and $969.0 thousand for the same period last year.

Income tax expense was $266.0 thousand which represents an increase of $9.7 thousand or 3.82% for the three months ended September 30, 2020, as compared to $256.0 thousand for the three months ended September 30, 2019. The effective income tax rate for the third quarter of 2020 and 2019 were approximately 28.6% and 28.5% respectively, and for the nine months ending September 30, 2020 and 2019, the effective income tax rates were 28.8% and 27.7% 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
	September 30, 2020 and December 31, 2019
			September 30, 2020			December 31, 2019
		(unaudited)				(audited)
	ASSETS:
	Cash and due from banks	$	58,947,773			$	4,363,753
	Federal funds sold		-				32,415,000
	Total cash and cash equivalents		58,947,773				36,778,753
	Interest-bearing deposits in other banks		-				496,000
	Investment securities available for sale		20,898,615				7,977,936
	Investment securities held to maturity (fair value approximates
	$21,683,834 at September 30, 2019 and $28,625,251 at December 31, 2019)		20,746,017				28,367,056
	Total investments		41,644,632				36,840,992
	Loans
	Construction		504,317.00				-
	Real estate		116,703,080				115,633,626
	Commercial		75,976,104				28,522,543
	Installment		125,276				232,328
	Credit Cards		605				-
	Gross loans		193,309,382				144,388,497
	Unearned fees and discounts		(1,980,007	)			(438,380	)
	Loans net of unearned fees and discount		191,329,375				143,950,117
	Allowance for loan losses		(2,854,821	)			(2,391,765	)
	Net loans		188,474,554				141,558,352
	Fixed assets, net		6,217,571				6,401,773
	Accrued interest receivable		857,321				619,856
	Stock investments, restricted, at cost		1,554,200				1,440,900
	Bank-owned life insurance		4,689,392				4,595,584
	Other assets		1,120,288				1,270,936
	Total assets	$	303,505,731			$	229,507,145
	LIABILITIES:
	Deposits
	Non-interest bearing	$	137,441,270			$	88,412,668
	Interest bearing
	NOW and money market		72,437,052				64,520,387
	Savings		19,060,564				12,209,281
	Time deposits less than $250,000		9,723,027				9,537,555
	Time deposits of $250,000 or greater		3,372,125				5,471,451
	Total deposits		242,034,038				180,151,342
	Accrued interest payable		119,202				203,246
	Borrowings from Federal Home Loan Bank (FHLB)		30,000,000				20,000,000
	Accrued expenses & other payables		1,717,161				1,686,979
	Subordinated notes payable to subsidiary trust		3,093,000				3,093,000
	Total liabilities		276,963,401				205,134,567
	SHAREHOLDERS' EQUITY
	Common stock, authorized 10,000,000 shares with no par value, issued and outstanding 2,230,808 shares at September 30, 2020 and December 31, 2019, respectively.
			10,502,558				10,502,557
	Retained earnings		15,729,577				13,803,528
	Accumulated other comprehensive income/(loss)		310,195				66,493
	Total shareholders' equity		26,542,330				24,372,578
	Total liabilities & shareholders' equity	$	303,505,731			$	229,507,145

	CHINO COMMERCIAL BANCORP
	CONSOLIDATED STATEMENTS OF NET INCOME
		For the three months ended						For the nine months ended
		September 30						September 30
		2020			2019			2020			2019
		(unaudited)			(unaudited)			(unaudited)			(unaudited)
	Interest income
	Interest and fee income on loans	$	2,301,354		$	1,973,170		$	6,582,760		$	5,901,963
	Interest on federal funds sold and FRB deposits		14,828			186,073			140,741			325,775
	Interest on time deposits in banks		-			7,953			1,856			31,858
	Interest on investment securities		232,571			298,567			687,225			911,201
	Total interest income		2,548,753			2,465,763			7,412,582			7,170,797
	Interest Expense
	Interest on deposits		63,271			251,358			315,906			704,973
	Other borrowings		125,396			123,303			386,868			274,273
	Total interest expense		188,667			374,661			702,774			979,246
	Net interest income		2,360,086			2,091,102			6,709,808			6,191,551
	Provision for loan losses		215,000			-			370,000			40,000
	Net interest income after provision for loan losses		2,145,086			2,091,102			6,339,808			6,151,551
	Non-interest income
	Service charges on deposit accounts		306,081			393,926			951,624			1,148,014
	Other miscellaneous income		39,864			22,603			115,869			165,999
	Dividend income from restricted stock		18,421			24,567			53,243			71,014
	Income from bank-owned life insurance		31,578			31,433			93,808			78,798
	Total non-interest income		395,944			472,529			1,214,544			1,463,825
	Non-interest expenses
	Salaries and employee benefits		999,501			968,967			2,993,873			2,938,952
	Occupancy and equipment		155,160			158,623			462,687			477,028
	Data and item processing		154,317			120,869			441,393			345,767
	Advertising and marketing		20,802			12,813			107,167			66,168
	Legal and professional fees		42,100			146,738			133,490			212,962
	Regulatory assessments		33,480			32,541			82,687			94,517
	Insurance		10,567			9,504			27,813			27,616
	Directors' fees and expenses		32,520			37,580			98,014			104,400
	Other expenses		162,981			179,999			502,659			508,580
	Total non-interest expenses		1,611,428			1,667,634			4,849,783			4,775,990
	Income before income tax expense		929,602			895,997			2,704,569			2,839,386
	Income tax expense		265,522			255,752			778,520			787,823
	Net income	$	664,080		$	640,245		$	1,926,049		$	2,051,563
	Basic earnings per share	$	0.30		$	0.29		$	0.86		$	0.92
	Diluted earnings per share	$	0.30		$	0.29		$	0.86		$	0.92

		For the three months ended								For the nine months ended
		September 30								September 30
			2020				2019				2020				2019
KEY FINANCIAL RATIOS
(unaudited)
Annualized return on average equity			10.06	%			10.94	%			10.03	%			12.00	%
Annualized return on average assets			0.87	%			1.12	%			0.94	%			1.28	%
Net interest margin			3.31	%			4.63	%			3.87	%			4.47	%
Core efficiency ratio			58.47	%			65.05	%			61.20	%			62.39	%
Net chargeoffs/(recoveries) to average loans			-0.007	%			-0.013	%			-0.06	%			-0.05	%
AVERAGE BALANCES
(thousands, unaudited)
Average assets		$	304,432			$	227,861			$	274,626			$	213,618
Average interest-earning assets		$	283,374			$	179,188			$	231,302			$	185,080
Average gross loans		$	186,761			$	133,543			$	167,713			$	136,350
Average deposits		$	242,964			$	184,145			$	215,248			$	176,746
Average equity		$	26,394			$	23,419			$	25,609			$	22,792
CREDIT QUALITY		End of period
(unaudited)			September 30, 2020				December 31, 2019
Non-performing loans		$	120,129			$	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			1.48	%			1.73	%
Nonperforming assets as a percentage of total loans and OREO			0.06	%			0.08	%
Allowance for loan losses to non-performing loans			2376.46	%			1986.14	%
OTHER PERIOD-END STATISTICS
(unaudited)
Shareholders equity to total assets			8.75	%			10.62	%
Net loans to deposits			77.87	%			78.58	%
Non-interest bearing deposits to total deposits			56.79	%			49.08	%
Total capital to total risk-weighted assets			19.45	%			18.30	%
Tier 1 capital to total risk-weighted assets			21.70	%			20.16	%
Community Bank Leverage Ratio			11.49	%			13.74	%

 

 

 

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.