Chino Commercial Bancorp Reports 25% Increase in Net Earnings

Rhea-AI Summary

Chino Commercial Bancorp (OTC: CCBC) reported strong Q2 2025 financial results, with net earnings reaching $1.54 million, a 25.04% increase from Q2 2024. The company achieved earnings per share of $0.48, up from $0.38 year-over-year.

Total assets grew to $481.9 million, a 3.3% increase from December 2024, while deposits rose 6.5% to $371.6 million. The bank maintained strong loan quality with no delinquent loans and opened its fifth location in Corona, which has already attracted $20 million in new deposits.

Key performance metrics showed improvement with net interest margin increasing to 3.69% from 2.95% year-over-year, and core deposits representing 97.01% of total deposits. The bank's merchant services program continued to grow, with processing revenue increasing by 20.2% compared to Q2 2024.

Positive

• Net earnings increased by 25.04% to $1.54 million in Q2 2025
• New Corona branch already attracted $20 million in new deposits
• Net interest margin improved significantly to 3.69% from 2.95%
• Zero delinquent loans reported, indicating strong loan quality
• Core deposits represent 97.01% of total deposits
• Merchant services processing revenue grew 20.2% year-over-year

Negative

• Non-performing loans of $833,565 remain on non-accrual status
• General and administrative expenses increased by 16.2% year-over-year

CHINO, Calif., July 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 second quarter ended June 30, 2025.

Net earnings for the second quarter of 2025 were $1.54 million, reflecting an increase of $308.5 thousand, or 25.04%, compared to the same period last year. Basic and diluted earnings per share were $0.48 for the second quarter of 2025, up from $0.38 for the same quarter in 2024. Net earnings year-to-date increased by 16.85% or by $417.1 thousand, to $2.89 million, as compared to $2.48 million for the same period last year. Net earnings per share was $0.90 for the period ending June 30, 2025, and $0.77 for the same period last year.

Dann H. Bowman, President and Chief Executive Officer, stated, “We are very pleased with the Bank’s performance in the second quarter of 2025, which set new records for total Assets, total Deposits, net earnings, and total Capital. Loan quality also remains very strong, with the Bank having no delinquent loans at quarter-end.

We are also proud to announce the opening of the Bank’s fifth location in Corona during the second quarter. Early business development efforts have been very productive, with the branch already having $20 million in new deposits.

The Bank’s Merchant Services program continues to deliver reliable credit card processing services for its customers, with significant savings and improved cash-flow options.”

Financial Condition

As of June 30, 2025, total assets reached $481.9 million, representing an increase of $15.3 million, or 3.3%, from $466.7 million on December 31, 2024. Total deposits rose by $22.7 million, or 6.5%, to $371.6 million, up from $348.9 million on December 31, 2024. Core deposits accounted for 97.01% of total deposits as of June 30, 2025.

Gross loans increased by $1.02 million, or 0.5%, totaling $206.3 million as of June 30, 2025, compared to $205.2 million as of December 31, 2024. The Bank reported no delinquent loans, and three non-performing loans on non-accrual status, as of June 30, 2025. As of December 31, 2024, the Bank reported no delinquent loans and five non-performing loans on all on nonaccrual status. There were no Other Real Estate Owned (OREO) properties reported at either date.

Earnings

The Company reported net interest income of $3.7 million for the three months ended June 30, 2025, compared to $3.2 million for the same period in 2024. Average interest-earning assets were $414.6 million, while average interest-bearing liabilities totaled $221.9 million, resulting in a net interest margin of 3.69% for the second quarter of 2025. This compares favorably to the prior year’s second-quarter margin of 2.95%, based on average interest-earning assets of $432.2 million and average interest-bearing liabilities of $240.2 million.

Non-interest income totaled $1.0 million in the second quarter of 2025, an increase of 23.0% compared to $822.0 thousand in the second quarter of 2024. Most of the increase was driven by higher service charges and fees on deposit accounts, which rose to $527.2 thousand—an increase of $66.5 thousand, or 14.5%, compared to $460.6 thousand in the same period last year. Merchant services processing revenue also contributed to the growth, totaling $178.8 thousand for the quarter, up $30.0 thousand, or 20.2%, from $148.8 thousand in the second quarter of 2024.

General and administrative expenses totaled $2.7 million for the three months ended June 30, 2025, compared to $2.3 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 second quarter of 2025, up from $1.4 million in the prior year.

Income tax expense for the quarter was $614.9 thousand, reflecting an increase of $129.4 thousand, or 26.7%, compared to $485.5 thousand for the same period last year. The Company’s effective income tax rate was approximately 28.5% for the period ending June 30, 2025, and 28.3 for the same period last year.

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
As of 6/30/2025
	Jun-2025 Ending Balance				Dec-2024 Ending Balance
Assets
Cash and due from banks	$56,447,198				$45,256,619
Cash and cash equivalents	$56,447,198				$45,256,619
Fed Funds Sold	$9,060				$31,029
Investment securities available for sale, net of zero
allowance for credit losses	$6,082,331				$6,558,341
Investment securities held to maturity , net of zero
allowance for credit losses	$192,972,194				$190,701,756
Total Investments	$199,054,525				$197,260,097
Gross loans held for investments	$206,254,179				$205,235,497
Allowance for Loan Losses	($4,637,060		)		($4,623,740		)
Net Loans	$201,617,119				$200,611,757
Stock investments, restricted, at cost	$3,662,000				$3,576,000
Fixed assets, net	$8,069,987				$7,255,785
Accrued Interest Receivable	$1,532,213				$1,539,505
Bank Owned Life Insurance	$8,600,690				$8,482,043
Other Assets	$3,492,678				$3,170,159
Total Assets	$481,978,760				$466,678,432
Liabilities
Deposits
Noninterest-bearing	$172,049,944				$166,668,725
Interest-bearing	$199,527,255				$182,200,703
Total Deposits	$371,577,199				$348,869,428
Federal Home Loan Bank advances	$10,000,000				$0
Federal Reserve Bank borrowings	$40,000,000				$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	$220,193				$132,812
Other Liabilities	$1,730,432				$1,877,996
Total Liabilities	$436,620,824				$423,973,236
Shareholder Equity
Common Stock **	$10,502,558				$10,502,558
Retained Earnings	$36,952,444				$34,059,943
Unrealized Gain (Loss) AFS Securities	($2,097,066		)		($1,857,305		)
Total Shareholders' Equity	$45,357,936				$42,705,196
Total Liab & Shareholders' Equity	$481,978,760				$466,678,432
** Common stock, no par value, 10,000,000 shares authorized and 3,211,970 shares issued and outstanding at 6/30/2025 and 12/31/2024

Consolidated Statements of Net Income
As of 6/30/2025
	Jun-2025 QTD Balance				Jun-2024 QTD Balance				Jun-2025 YTD Balance				Jun-2024 YTD Balance
Interest Income
Interest & Fees On Loans	$3,373,949				$2,801,198				$6,695,566				$5,528,999
Interest on Investment Securities	$1,776,975				$1,945,563				$3,479,765				$3,881,668
Other Interest Income	$176,702				$489,331				$433,028				$1,520,279
Total Interest Income	$5,327,626				$5,236,092				$10,608,359				$10,930,946
Interest Expense
Interest on Deposits	$1,255,426				$1,054,734				$2,445,727				$2,087,669
Interest on Borrowings	$273,228				$997,524				$743,147				$2,310,217
Total Interest Expense	$1,528,654				$2,052,258				$3,188,874				$4,397,886
Net Interest Income	$3,798,972				$3,183,834				$7,419,485				$6,533,060
Provision For Loan Losses	($2,622		)		$1,794				$8,082				($1,139		)
Net Interest Income After Provision for Loan Losses	$3,801,594				$3,182,040				$7,411,403				$6,534,199
Noninterest Income
Service Charges and Fees on Deposit Accounts	$527,202				$460,658				$1,033,560				$900,515
Interchange Fees	$110,482				$102,761				$216,951				$195,033
Earnings from Bank-Owned Life Insurance	$60,373				$58,579				$118,647				$114,875
Merchant Services Processing	$178,751				$148,770				$320,047				$281,538
Other Miscellaneous Income	$134,621				$51,250				$177,814				$103,522
Total Noninterest Income	$1,011,429				$822,018				$1,867,019				$1,595,483
Noninterest Expense
Salaries and Employee Benefits	$1,632,294				$1,420,868				$3,220,764				$2,922,295
Occupancy and Equipment	$219,906				$168,404				$401,359				$332,473
Merchant Services Processing	$69,552				$73,394				$146,593				$144,603
Other Expenses	$736,190				$624,150				$1,466,453				$1,280,128
Total Noninterest Expense	$2,657,942				$2,286,816				$5,235,169				$4,679,499
Income Before Income Tax Expense	$2,155,080				$1,717,243				$4,043,251				$3,450,182
Provision For Income Tax	$614,855				$485,492				$1,150,750				$974,758
Net Income	$1,540,225				$1,231,751				$2,892,501				$2,475,424
Basic earnings per share	$	0.48			$	0.38			$	0.90			$	0.77
Diluted earnings per share	$	0.48			$	0.38			$	0.90			$	0.77

Financial Highlights
As of 6/30/2025
	Jun-2025 QTD				Jun-2024 QTD				Jun-2025 YTD				Jun-2024 YTD
Key Financial Ratios
Annualized Return on Average Equity		13.88%				12.61%				13.32%				12.85%
Annualized Return on Average Assets		1.41%				1.08%				1.32%				1.04%
Net Interest Margin		3.69%				2.95%				3.60%				2.91%
Core Efficiency Ratio		55.25%				57.09%				56.37%				57.57%
Net Chargeoffs/Recoveries to Average Loans		0.00%				0.00%				-0.01%				0.00%
	3 month ended Jun-2025 QTD Avg				3 month ended Jun-2024 QTD Avg				Jun-2025 YTD Avg				Jun-2024 YTD Avg
Average Balances
(thousands, unaudited)
Average assets	$440,184				$458,364				$442,199				$475,291
Average interest-earning assets	$414,576				$432,215				$416,766				$450,774
Average interest-bearing liabilities	$221,881				$240,214				$226,466				$258,566
Average gross loans	$206,619				$187,788				$207,296				$184,961
Average deposits	$369,282				$331,088				$363,382				$330,519
Average equity	$44,617				$39,172				$43,924				$38,623
	Jun-2025 QTD				Dec-2024 YTD
Credit Quality
Non-performing loans	$833,565				$1,228,165
Non-performing loans to total loans		0.40%				0.60%
Non-performing loans to total assets		0.17%				0.26%
Allowance for credit losses to total loans		2.25%				2.25%
Nonperforming assets as a percentage of total loans and OREO		0.40%				0.60%
Allowance for credit losses to non-performing loans		556.29%				376.48%
Other Period-end Statistics
Shareholders equity to total assets		9.41%				9.15%
Net Loans to Deposits		54.12%				57.36%
Non-interest bearing deposits to total deposits		46.30%				47.77%
Company Leverage Ratio		11.48%				10.40%
Core Deposits / Total Deposits		97.01%				97.31%

FAQ

What were CCBC's Q2 2025 earnings per share?

CCBC reported earnings per share of $0.48 for Q2 2025, up from $0.38 in Q2 2024, representing a 26.3% increase.

How much did Chino Commercial Bancorp's deposits grow in 2025?

Total deposits increased by $22.7 million or 6.5% to $371.6 million as of June 30, 2025, compared to December 31, 2024.

What is CCBC's loan quality status as of Q2 2025?

The bank reported no delinquent loans and only three non-performing loans on non-accrual status, with an allowance for credit losses to non-performing loans ratio of 556.29%.

How successful is CCBC's new Corona branch?

The new Corona branch, CCBC's fifth location, has been very successful, already attracting $20 million in new deposits during its initial operations in Q2 2025.

What was Chino Commercial Bancorp's net interest margin in Q2 2025?

CCBC's net interest margin was 3.69% in Q2 2025, improving from 2.95% in Q2 2024, based on average interest-earning assets of $414.6 million.