01/21/2022: CHINO COMMERCIAL BANCORP REPORTS 19% INCREASE IN NET EARNINGS

CHINO COMMERCIAL BANCORP REPORTS 19% INCREASE IN NET EARNINGS

Chino, California, January 21, 2022 – 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, and year ended December 31, 2021.  Net earnings for the fourth quarter of 2021, were $707 thousand, or an increase of 1.2%, as compared with earnings of $699 thousand for the same quarter last year.  Net earnings per basic and diluted share was $0.26 for the fourth quarter of 2021, and for the same quarter last year.

Net earnings for the fiscal year ended December 31, 2021 increased by 19.3% or by $506 thousand to $3.1 million, as compared to $2.6 million for fiscal year 2020. Net earnings per basic and diluted share was $1.17 for the fiscal year 2021, and $0.98 for fiscal year 2020.

Dann H. Bowman, President and Chief Executive Officer, stated, “We are very pleased with the performance of the Bank during 2021, which ended the year with record levels of Deposits, Revenue, Earnings and Earnings per Share.  As we begin to emerge from the Pandemic, we are optimistic about the business opportunities available to the Bank; and we are looking forward to 2022.”

Financial Condition

At December 31, 2021, total assets were $378.5 million, an increase of $63.7 million or 20.02% over $314.8 million at December 31, 2020.  Total deposits increased by $61.2 million or 23.7% to $318.9 million as of December 31, 2021, compared to $257.7 million as of December 31, 2020.  At December 31, 2021, the Company’s core deposits represent 97.9% of the total deposits.

Gross loans decreased by 10.0 % or $19.5 million as of December 31, 2021 to $176.2 million, as compared with $195.7 million as of December 31, 2020, primarily due to pay downs on loans made under the Payroll Protection Program.  The Bank had one non-performing loan for the quarters ended December 31, 2021, and December 31, 2020.  OREO properties remained at zero as of December 31, 2021 and December 31, 2020 respectively.

Earnings

The Company posted net interest income of $2.6 million for the three months ended December 31, 2021 and $2.9 million for the same quarter last year.  Average interest-earning assets were $348.6 million with average interest-bearing liabilities of $145.9 million, yielding a net interest margin of 2.63% for the fourth quarter of 2021, as compared to the average interest-earning assets of $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.

Non-interest income totaled $606.2 thousand for the fourth quarter of 2021, or an increase of 15.9% as compared with $440.2 thousand earned during the same quarter last year.  The majority of the increase is attribute to service charges on deposit accounts and other fees.

General and administrative expenses were $1.9 million for the three months ended December 31, 2021, and $1.8 million for the same period last year.  The largest component of general and administrative expenses was salary and benefits expense of $1.2 million for the fourth quarter of 2021 and $1.1 million for the same period last year.

Income tax expense was $259.1 thousand which represents a decrease of $16 thousand or 5.9% for the three months ended December 31, 2021, as compared to $275.3 thousand for the three months ended September 30, 2020.  The effective income tax rate for the fourth quarter of 2021 and 2020 were approximately 26.8% and 28.3% 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.

CEO MessageIcon for: Message

Image for: CEO

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