Chino Commercial Bancorp Reports 8.7% Increase in Net Earnings

Rhea-AI Summary

Chino Commercial Bancorp (OTC: CCBC) reported strong first quarter 2025 results with net earnings of $1.35 million, an 8.7% increase from the previous year. Earnings per share rose to $0.41 from $0.38 in Q1 2024.

The bank achieved record levels in total Assets ($471.3M), Deposits ($367.3M), and Loans ($208.2M). The net interest margin improved to 3.51% from 2.86% year-over-year. Core deposits represented 96.85% of total deposits, and loan quality remained strong with no delinquent loans reported.

Notable developments include:

• Plans to open a fifth branch office in Corona during Q2 2025
• Launch of credit card processing services for customers
• Non-interest income growth of 10.6% to $855.6K
• Increase in service charges and fees by 15.1% to $506.4K

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%

FAQ

What was CCBC's net earnings growth in Q1 2025?

CCBC reported net earnings of $1.35 million in Q1 2025, representing an 8.7% increase ($108.6K) compared to Q1 2024.

How did CCBC's loan portfolio perform in Q1 2025?

Gross loans increased by $2.9 million (1.4%) to $208.2 million, with no delinquent loans reported, though there were five non-performing loans on non-accrual status.

What is CCBC's expansion strategy for 2025?

CCBC plans to open its fifth branch office in Corona during Q2 2025, following the acquisition of a building in Corona in 2024.

How has CCBC's merchant services revenue performed since its 2023 launch?

Merchant services processing revenue reached $141.3K in Q1 2025, showing a 6.4% increase from Q1 2024's $132.7K.

What was CCBC's deposit growth in Q1 2025?

Total deposits increased by $18.4 million (5.3%) to $367.3 million, with core deposits accounting for 96.85% of total deposits.