01/20/2023: CHINO COMMERCIAL BANCORP REPORTS 85% INCREASE IN NET EARNINGS

CHINO COMMERCIAL BANCORP REPORTS 85% INCREASE IN NET EARNINGS

Chino, California, January 20, 2023 – 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, 2022. Net earnings for the fourth quarter of 2022, were $1.3 million, or an increase of 84.6%, as compared with earnings of $706 thousand for the same quarter last year. Net earnings per basic and diluted share was $0.49 for the fourth quarter of 2022, and $0.26 for the same quarter last year.

Net earnings for the fiscal year ended December 31, 2022 increased by 50.5% or by $1.6 million to $4.7 milllion, as compared to $3.1 million for fiscal year 2021. Net earnings per basic and diluted share was $1.76 for the fiscal year 2021, and $1.17 for fiscal year 2021.

Dann H. Bowman, President and Chief Executive Officer, stated “Despite the rapidly rising interest rate environment, 2022 was a very good year for the Bank, in setting new records for Deposits, Revenue and Earnings and Earnings Per Share. We do see some weakness in the economy over the next 18 months, however, even this has the potential to create opportunities to expand the customer base and grow the company. We are excited about the opportunities for growth and expansion of the Bank as we offer new products and services to help small businesses to grow and innovate as we navigate through challenging times.”

Financial Condition

At December 31, 2022, total assets were $399.7 million, an increase of $21.1 million or 5.6% over $378.5 million at December 31, 2021. Total deposits increased by $18.6 million or 5.8% to $337.5 million as of December 31, 2022, compared to $318.9 million as of December 31, 2021. At December 31, 2022, the Company’s core deposits represent 98.3% of the total deposits.

Gross loans increased by 2.8% or $5.0 million as of December 31, 2022 to $181.1 million as compared with $176.2 million at December 31, 2021. The Bank had two non-performing loans for the quarter ended December 31, 2022, and one non-performing loan as of December 31, 2021. OREO properties remained at zero as of December 31, 2022 and December 31, 2021 respectively.

Earnings

The Company posted net interest income of $3.4 million for the three months ended December 31, 2022 and $2.6 million for the same quarter last year. Average interest-earning assets were $408.4 million with average interest-bearing liabilities of $158.7 million, yielding a net interest margin of 3.52% for the fourth quarter of 2022, as compared to the average interest-earning assets of $374.9 million with average interest-bearing liabilities of $145.9 million, yielding a net interest margin of 2.63% for the fourth quarter of 2021.

Non-interest income totaled $614.6 thousand for the fourth quarter of 2022, or an increase of 1.4% as compared with $606.2 thousand earned during the same quarter last year. The majority of the increase is attributed to service charges on deposit accounts.

General and administrative expenses were $2.2 million for the three months ended December 31, 2022, and $2.0 million for the same period last year. The largest component of general and administrative expenses was salary and benefits expense of $1.4 million for the fourth quarter of 2022 and $1.2 million for the same period last year.

Income tax expense was $513.8 thousand, which represents an increase of $254.7 thousand or 98.3% for the three months ended December 31, 2022, as compared to $259.1 thousand for the three months ended December 31, 2021. The effective income tax rate for the fourth quarter of 2022 and 2021 were approximately 28.2% and 26.8% 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.

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At Chino Commercial Bank, we take pride in knowing our customers personally, and their businesses closely. Our service is always one-on-one and never "one size fits all". If you are looking for a long-term relationship you can count on, look to Chino Commercial Bank.

- Dann H. Bowman, President & CEO