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, 2024.
Net earnings year-to-date increased by 1.65% or by $40.8 thousand, to $2.48 million, as compared to $2.43 million for the same period last year. Net earnings per share was $0.77 for the period ending June 30, 2024 and 0.76 for the same period last year. Net earnings for the second quarter of 2024, were $1.23 million, which represents an decrease of $34.4 thousand or 2.7% in comparison with the same quarter last year. Net earnings per basic and diluted share were $0.38 for the second quarter of 2024 and $0.39 for the same quarter in 2023, respectively.
Dann H. Bowman, President and Chief Executive Officer stated, “We are very pleased with the Bank’s performance during the second quarter, with total asset reaching new record levels. The economic strength of the Inland Empire remains very strong, allowing for tremendous growth opportunities for the Bank. In addition to the asset growth, Loan quality remains very strong, with the Bank having no delinquent loans at quarter-end, and no pending foreclosures, or OREO.
In 2023 the Bank became a member of the Card Brand Association and began to directly process Merchant Services for its customers. Not only does this service introduce an additional non-interest source of revenue, but the Bank has also been able to provide significant savings and transparency to a number of our small business customers. For virtually every business, efficient and cost effective processing of electronic payments has become a very important part of managing cash flow. In the future we can envision expanding this service outside of our immediate market; and the revenue from this service becoming an increasingly important part of the Bank’s business model.
In March, the Bank received preliminary approval from the Office of the Comptroller of the Currency to open a new branch office in Corona. During March the Bank also completed the purchase of a commercial office building, at 1035 Montecito Avenue, Corona, CA, which will serve as the new Corona branch office. The Corona branch will be the Bank’s fifth location, and is expected to open in 4Q’24.”
Financial Condition
At June 30, 2024, total assets were $468.0 million, an increase of $21.6 million or 4.84% over $446.4 million at December 31, 2023. Total deposits increased by $19.9 million or 6.2% to $339.7 million as of June 30, 2024, compared to $319.8 million as of December 31, 2023. At June 30, 2024, the Company’s core deposits represent 97.76% of the total deposits.
Gross loans increased by $15.6 million or 8.7% to $194.6 million as of June 30, 2024, compared to $179.0 million as of December 31, 2023. The Bank had three non-performing loans for the quarter ended June 30, 2024, and as of December 31, 2023. OREO properties remained at zero as of June 30, 2024 and December 31, 2023 respectively.
Earnings
The Company posted net interest income of $3.2 million for the three months ended June 30, 2024 and for the same quarter last year, respectively. Average interest-earning assets were $432.2 million with average interest-bearing liabilities of $240.2 million, yielding a net interest margin of 2.96% for the second quarter of 2024, as compared to the average interest-earning assets of $431.5 million with average interest-bearing liabilities of $224.3 million, yielding a net interest margin of 3.03% for the second quarter of 2023.
Non-interest income totaled $822.0 thousand for the second quarter of 2024, or an increase of 27.29% as compared with $645.8 thousand earned during the same quarter last year. The majority of the increase is attributed to the Company’s merchant services processing revenue that reached $148.8 thousand, representing an increase of $102.3 thousand during the second quarter as compared to $46.3 thousand for the same period last year.
General and administrative expenses were $2.3 million for the three months ended June 30, 2024, and $2.2 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 second quarter of 2023 and for the same period last year.
Income tax expense was $485 thousand, which represents a decrease of 18 thousand or 3.58% for the three months ended June 30, 2024, as compared to $504 thousand for the same quarter last year. The effective income tax rate for the second quarter of 2024 was approximately 28.3%, and 28.5% for the same quarter 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.
