Chino Commercial Bancorp Reports 8.7% Increase in Net Earnings
CHINO, Calif., April 18, 2025 (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, 2025.
Net earnings for the first quarter of 2025 were $1.35 million, reflecting an increase of $108.6 thousand, or 8.7%, compared to the same period last year. Basic and diluted earnings per share were $0.41 for the first quarter of 2025, up from $0.38 for the same quarter in 2024.
Dann H. Bowman, President and Chief Executive Officer, stated, “We are very pleased with the Bank’s performance in the first quarter of 2025. At the end of first quarter, the Bank set new records for total Assets, total Deposits, total Loans, and total Capital. Loan quality also remains very strong, with the Bank having no delinquent loans at the end of the first quarter.
In 2024, the Bank acquired a building in Corona and remains on track to open its fifth branch office during the second quarter of 2025. Early business development efforts have been very successful, and we are excited about the new office and many opportunities in the Corona market.
In 2023, the Bank became a member of the Card Brand Association and launched credit card processing (Merchant Services) for its customers. This service has not only introduced a valuable source of non-interest income but also provided significant cost savings and improved transparency for our clients. Efficient and cost-effective electronic payment processing has become essential to cash flow management for businesses. Looking ahead, we see potential to expand this offering beyond our immediate market, with expectations that merchant services revenue will become an increasingly important component of our business model.”
Financial Condition
As of March 31, 2025, total assets reached $471.3 million, representing an increase of $4.6 million, or 1.0%, from $466.7 million at December 31, 2024. Total deposits rose by $18.4 million, or 5.3%, to $367.3 million, up from $348.9 million at the end of the prior quarter. Core deposits accounted for 96.85% of total deposits as of March 31, 2025.
Gross loans increased by $2.9 million, or 1.4%, totaling $208.2 million as of March 31, 2025, compared to $205.2 million as of December 31, 2024. The Bank reported no delinquent loans, five non-performing loans, all on non-accrual status, as of March 31, 2025 and December 31, 2024. Three of the five non-performing loans have been in the process of foreclosure, however there were no Other Real Estate Owned (OREO) properties reported at either date.
Earnings
The Company reported net interest income of $3.6 million for the three months ended March 31, 2025, compared to $3.3 million for the same period in 2024. Average interest-earning assets were $419.0 million, while average interest-bearing liabilities totaled $231.1 million, resulting in a net interest margin of 3.51% for the first quarter of 2025. This compares favorably to the prior year’s first-quarter margin of 2.86%, based on average interest-earning assets of $469.3 million and average interest-bearing liabilities of $276.9 million.
Non-interest income totaled $855.6 thousand in the first quarter of 2025, an increase of 10.6% compared to $773.5 thousand in the first quarter of 2024. The majority of this increase was driven by higher service charges and fees on deposit accounts, which rose to $506.4 thousand—an increase of $66.5 thousand, or 15.1%, compared to $439.8 thousand in the same period last year. Merchant services processing revenue also contributed to the growth, totaling $141.3 thousand for the quarter, up $8.0 thousand, or 6.4%, from $132.7 thousand in the first quarter of 2024.
General and administrative expenses totaled $2.6 million for the three months ended March 31, 2025, compared to $2.4 million for the same period in 2024. The largest component of these expenses was salary and benefits, which amounted to $1.6 million in the first quarter of 2025, up from $1.5 million in the prior year.
Income tax expense for the quarter was $535.9 thousand, reflecting an increase of $46.6 thousand, or 9.5%, compared to $489.3 thousand for the same period last year. The Company’s effective income tax rate was approximately 28.3% for both Q1 2025 and Q1 2024.
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, Senior Vice President and CFO, Chino Commercial Bancorp and Chino Commercial Bank, N.A., 14245 Pipeline Avenue, Chino, CA. 91710, (909) 393-8880.
| Consolidated Statements of Financial Condition | |||
| Mar-2025 Ending Balance | Dec-2024 Ending Balance | ||
| Assets | |||
| Cash and due from banks | $52,791,324 | $45,256,619 | |
| Cash and cash equivalents | $52,791,324 | $45,256,619 | |
| Fed Funds Sold | $6,931 | $31,029 | |
| Investment securities available for sale, net of zero | |||
| allowance for credit losses | $6,347,971 | $6,558,341 | |
| Investment securities held to maturity, net of zero | |||
| allowance for credit losses | $185,242,891 | $190,701,756 | |
| Total Investments | $191,590,862 | $197,260,097 | |
| Gross loans held for investments | $208,160,713 | $205,235,497 | |
| Allowance for Loan Losses | ($4,631,422) | ($4,623,740) | |
| Net Loans | $203,529,291 | $200,611,757 | |
| Stock investments, restricted, at cost | $3,576,000 | $3,576,000 | |
| Fixed assets, net | $7,648,905 | $7,255,785 | |
| Accrued Interest Receivable | $1,547,695 | $1,539,505 | |
| Bank Owned Life Insurance | $8,540,316 | $8,482,043 | |
| Other Assets | $2,565,398 | $3,170,159 | |
| Total Assets | $471,319,006 | $466,678,432 | |
| Liabilities | |||
| Deposits | |||
| Noninterest-bearing | $171,815,265 | $166,668,725 | |
| Interest-bearing | $195,489,783 | $182,200,703 | |
| Total Deposits | $367,305,048 | $348,869,428 | |
| Federal Home Loan Bank advances | $0 | $0 | |
| Federal Reserve Bank borrowings | $45,000,000 | $60,000,000 | |
| Subordinated debt | $10,000,000 | $10,000,000 | |
| Subordinated notes payable to subsidiary trust | $3,093,000 | $3,093,000 | |
| Accrued interest payable | $276,545 | $132,812 | |
| Other Liabilities | $1,688,305 | $1,877,996 | |
| Total Liabilities | $427,362,898 | $423,973,236 | |
| Shareholder Equity | |||
| Common Stock ** | $10,502,558 | $10,502,558 | |
| Retained Earnings | $35,412,219 | $34,059,943 | |
| Unrealized Gain (Loss) AFS Securities | ($1,958,669) | ($1,857,305) | |
| Total Shareholders' Equity | $43,956,108 | $42,705,196 | |
| Total Liab & Shareholders' Equity | $471,319,006 | $466,678,432 | |
| ** Common stock, no par value, 10,000,000 shares authorized and 3,211,970 shares issued and outstanding at 3/31/2025 and 12/31/2024 | |||
| Consolidated Statements of Net Income | |||
| Mar-2025 QTD Balance | Mar-2024 QTD Balance | ||
| Interest Income | |||
| Interest & Fees On Loans | $3,321,616 | $2,727,801 | |
| Interest on Investment Securities | $1,702,790 | $1,936,105 | |
| Other Interest Income | $256,326 | $1,030,948 | |
| Total Interest Income | $5,280,732 | $5,694,854 | |
| Interest Expense | |||
| Interest on Deposits | $1,190,301 | $1,032,935 | |
| Interest on Borrowings | $469,920 | $1,312,693 | |
| Total Interest Expense | $1,660,221 | $2,345,628 | |
| Net Interest Income | $3,620,511 | $3,349,226 | |
| Provision For Loan Losses | $10,705 | ($2,933) | |
| Net Interest Income After Provision for Loan Losses | $3,609,806 | $3,352,159 | |
| Noninterest Income | |||
| Service Charges and Fees on Deposit Accounts | $506,358 | $439,857 | |
| Interchange Fees | $106,469 | $92,271 | |
| Earnings from Bank-Owned Life Insurance | $58,273 | $56,295 | |
| Merchant Services Processing | $141,296 | $132,768 | |
| Other Miscellaneous Income | $43,194 | $52,272 | |
| Total Noninterest Income | $855,590 | $773,463 | |
| Noninterest Expense | |||
| Salaries and Employee Benefits | $1,588,471 | $1,501,427 | |
| Occupancy and Equipment | $181,453 | $164,070 | |
| Merchant Services Processing | $77,041 | $71,209 | |
| Other Expenses | $730,263 | $655,978 | |
| Total Noninterest Expense | $2,577,228 | $2,392,684 | |
| Income Before Income Tax Expense | $1,888,171 | $1,732,939 | |
| Provision For Income Tax | $535,895 | $489,266 | |
| Net Income | $1,352,276 | $1,243,673 | |
| Basic earnings per share | $0.42 | $0.39 | |
| Diluted earnings per share | $0.42 | $0.39 | |
| Financial Highlights | |||
| Mar-2025 QTD | Mar-2024 QTD | ||
| Key Financial Ratios | |||
| Annualized Return on Average Equity | 12.72% | 13.10% | |
| Annualized Return on Average Assets | 1.24% | 1.01% | |
| Net Interest Margin | 3.51% | 2.86% | |
| Core Efficiency Ratio | 57.58% | 58.04% | |
| Net Chargeoffs/Recoveries to Average Loans | -0.004% | 0.000% | |
| 3 month ended Mar-2025 QTD Avg | 3 month ended Mar-2024 QTD Avg | ||
| Average Balances | |||
| (thousands, unaudited) | |||
| Average assets | $444,235 | $492,218 | |
| Average interest-earning assets | $418,980 | $469,334 | |
| Average interest-bearing liabilities | $231,101 | $276,918 | |
| Average gross loans | $207,980 | $182,133 | |
| Average deposits | $357,417 | $329,949 | |
| Average equity | $43,224 | $38,073 | |
| Mar-2025 QTD | Dec-2024 YTD | ||
| Credit Quality | |||
| Non-performing loans | $1,110,738 | $1,228,165 | |
| Non-performing loans to total loans | 0.53% | 0.60% | |
| Non-performing loans to total assets | 0.24% | 0.26% | |
| Allowance for credit losses to total loans | 2.22% | 2.25% | |
| Nonperforming assets as a percentage of total loans and OREO | 0.53% | 0.60% | |
| Allowance for credit losses to non-performing loans | 416.97% | 376.48% | |
| Other Period-end Statistics | |||
| Shareholders equity to total assets | 9.33% | 9.15% | |
| Net Loans to Deposits | 55.28% | 57.36% | |
| Non-interest bearing deposits to total deposits | 46.78% | 47.77% | |
| Company Leverage Ratio | 11.03% | 10.40% | |
| Core Deposits / Total Deposits | 96.85% | 97.31% | |
