Chino Commercial Bancorp Reports 22% Increase In Net Earnings
MWN-AI** Summary
Chino Commercial Bancorp, the parent company of Chino Commercial Bank, reported a remarkable 21.57% increase in net earnings for the third quarter of 2025, totaling $1.54 million compared to $1.27 million in the same quarter of 2024. Basic and diluted earnings per share (EPS) rose to $0.48, up from $0.39 year-over-year. For the year-to-date, net earnings climbed 18.45% to $4.43 million, marking a solid performance that reflected the Bank's growing financial strength.
President and CEO Dann H. Bowman touted a record-breaking quarter with substantial increases across total deposits, loans, revenue, and earnings. Notably, deposits surged by 10.7% to $386 million, while total assets increased by 4.8% to reach $488.9 million as of September 30, 2025. The quality of the Bank’s loan portfolio remained robust, showing no delinquent loans, and only three non-performing loans on non-accrual status, a significant improvement from last year.
In addition to excellent earnings, the Bank successfully opened its fifth branch location in Corona, quickly generating $20 million in new deposits. Their Merchant Services program also contributed positively, demonstrating a substantial 58.99% increase in revenue to $205.4 thousand for the quarter.
Reflecting on the company’s financial metrics, net interest income for the quarter rose to $4.0 million, with a favorable net interest margin of 3.79%. Non-interest income also saw an increase of 12.44%, driven by higher service charges and fees.
Overall, Chino Commercial Bancorp’s performance highlights its resilience and strategic growth in a competitive banking environment, positioning itself for further expansion and profitability.
MWN-AI** Analysis
Chino Commercial Bancorp's recent third-quarter performance demonstrates a robust financial trajectory, marked by a 22% increase in net earnings. This growth, reaching $1.54 million, surpasses previous expectations and positions CCBC as a strong player in the banking sector. Basic and diluted earnings per share rose to $0.48, reflecting an upward trend in profitability.
Key highlights include total assets increasing to nearly $489 million, driven by a notable 10.7% surge in deposits. The quality of assets remains high with no delinquent loans and a strong net interest margin of 3.79%, considerably above the previous year's 3.08%. This margin enhancement indicates effective interest rate risk management amid a fluctuating economic environment, which is critical for sustaining profitability.
Furthermore, the bank's expansion into Corona is proving fruitful, with $20 million in new deposits early on, showcasing their successful growth strategy. The strong performance of the Merchant Services program, which experienced a substantial revenue increase, demonstrates diversification and innovation within their offerings.
From an investment perspective, CCBC's solid earnings growth, coupled with no non-performing assets and a low charge-off ratio, enhances its attractiveness. The annualized return on average equity stands at an impressive 13.32%, indicating efficient management and a proactive approach in capital utilization.
Given these positive indicators, investors may consider CCBC as a strong candidate for growth investment. However, vigilance is essential, particularly in monitoring broader economic conditions that could impact interest rates and credit quality. As always, due diligence is recommended; analyzing competitor performance and macroeconomic variables will aid in making informed investment decisions regarding Chino Commercial Bancorp. Overall, the future looks promising, but careful navigation remains crucial.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
CHINO, Calif., Oct. 17, 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 third quarter ended September 30, 2025.
Net earnings for the third quarter of 2025 were $1.54 million, reflecting an increase of $273.6 thousand, or 21.57%, compared to the same period last year. Basic and diluted earnings per share were $0.48 for the third quarter of 2025, up from $0.39 for the same quarter in 2024. Net earnings year-to-date increased by 18.45% or by $690.7 thousand, to $4.43 million, as compared to $3.74 million for the same period last year. Year-to-date net earnings per share was $1.38 for the period ending September 30, 2025, and $1.17 for the same period last year.
Dann H. Bowman, President and Chief Executive Officer, stated, “The Bank’s performance in the third quarter exceeded expectations, posting new record levels for total Deposits, total Loans, Revenue, Earnings and Earnings Per Share. We are also pleased to report that loan quality remains very strong, with the Bank having no delinquent loans at quarter-end, no pending foreclosures, and no OREO.
We are also proud to announce the opening of the Bank’s fifth location in Corona during the third quarter. The early performance of the new branch is very strong, with the location generating $20 million in new deposits.
The Bank’s Merchant Services program also continues to deliver reliable credit card processing services for its customers, with significant savings and improved cash-flow options.”
Financial Condition
As of September 30, 2025, total assets reached $488.9 million, representing an increase of $22.2 million, or 4.8%, from $466.7 million on December 31, 2024. Total deposits rose by $37.2 million, or 10.7%, to $386.0 million, up from $348.9 million on December 31, 2024. Core deposits accounted for 97.09% of total deposits as of September 30, 2025.
Gross loans increased by $5.5 million, or 2.7%, totaling $210.8 million as of September 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 September 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 $4.0 million for the three months ended September 30, 2025, compared to $3.4 million for the same period in 2024. Average interest-earning assets were $423.0 million, while average interest-bearing liabilities totaled $223.3 million, resulting in a net interest margin of 3.79% for the third quarter of 2025. This compares favorably to the prior year’s third-quarter margin of 3.08%, based on average interest-earning assets of $442.1 million and average interest-bearing liabilities of $248.4 million.
Non-interest income totaled $891.7 thousand in the third quarter of 2025, an increase of 12.44% compared to $793.1 thousand in the third quarter of 2024. Most of the increase was driven by higher service charges and fees on deposit accounts, which rose to $464.7 thousand—an increase of $19.6 thousand, or 4.4%, compared to $445.2 thousand in the same period last year. Merchant services processing revenue also contributed to the growth, totaling $205.4 thousand for the quarter, up $76.2 thousand, or 58.99%, from $129.2 thousand in the third quarter of 2024.
General and administrative expenses totaled $2.8 million for the three months ended September 30, 2025, compared to $2.5 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 third quarter of 2025, up from $1.5 million in the prior year.
Income tax expense for the quarter was $614.1 thousand, reflecting an increase of $114.5 thousand, or 22.9%, compared to $499.6 thousand for the same period last year. The Company’s effective income tax rate was approximately 28.5% for the period ending September 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.
| Consolidated Statements of Financial Condition | ||||||
| As of 9/30/2025 | ||||||
| Sep-2025 Ending Balance | Dec-2024 Ending Balance | |||||
| Assets | ||||||
| Cash and due from banks | $ | 59,780,405 | $ | 45,256,619 | ||
| Cash and cash equivalents | $ | 59,780,405 | $ | 45,256,619 | ||
| Fed Funds Sold | $ | 19,011 | $ | 31,029 | ||
| Investment securities available for sale, net of zero | ||||||
| allowance for credit losses | $ | 6,377,096 | $ | 6,558,341 | ||
| Investment securities held to maturity , net of zero | ||||||
| allowance for credit losses | $ | 191,649,332 | $ | 190,701,756 | ||
| Total Investments | $ | 198,026,428 | $ | 197,260,097 | ||
| Gross loans held for investments | $ | 210,758,905 | $ | 205,235,497 | ||
| Deferred loan fees, net | $ | (462,854 | ) | $ | (504,564 | ) |
| Allowance for Loan Losses | $ | (4,646,798 | ) | $ | (4,623,740 | ) |
| Net Loans | $ | 205,649,253 | $ | 200,107,193 | ||
| Stock investments, restricted, at cost | $ | 3,662,000 | $ | 3,576,000 | ||
| Fixed assets, net | $ | 8,089,888 | $ | 7,255,785 | ||
| Accrued Interest Receivable | $ | 1,575,248 | $ | 1,539,505 | ||
| Bank Owned Life Insurance | $ | 8,663,792 | $ | 8,482,043 | ||
| Other Assets | $ | 3,452,044 | $ | 3,170,159 | ||
| Total Assets | $ | 488,918,070 | $ | 466,678,432 | ||
| Liabilities | ||||||
| Deposits | ||||||
| Noninterest-bearing | $ | 185,245,278 | $ | 166,668,725 | ||
| Interest-bearing | $ | 200,800,711 | $ | 182,200,703 | ||
| Total Deposits | $ | 386,045,989 | $ | 348,869,428 | ||
| Federal Home Loan Bank advances | $ | 10,000,000 | $ | 0 | ||
| Federal Reserve Bank borrowings | $ | 30,000,000 | $ | 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 | $ | 426,691 | $ | 132,812 | ||
| Other Liabilities | $ | 2,188,745 | $ | 1,877,996 | ||
| Total Liabilities | $ | 441,754,425 | $ | 423,973,236 | ||
| Shareholder Equity | ||||||
| Common Stock ** | $ | 10,502,558 | $ | 10,502,558 | ||
| Retained Earnings | $ | 38,494,553 | $ | 34,059,943 | ||
| Unrealized Gain (Loss) AFS Securities | $ | (1,833,467 | ) | $ | (1,857,305 | ) |
| Total Shareholders' Equity | $ | 47,163,644 | $ | 42,705,196 | ||
| Total Liab & Shareholders' Equity | $ | 488,918,070 | $ | 466,678,432 | ||
| ** Common stock, no par value, 10,000,000 shares authorized and 3,211,970 shares issued and outstanding at 9/30/2025 and 12/31/2024 | ||||||
| Consolidated Statements of Net Income | ||||||||||||
| As of 9/30/2025 | ||||||||||||
| Sep-2025 QTD Balance | Sep-2024 QTD Balance | Sep-2025 YTD Balance | Sep-2024 YTD Balance | |||||||||
| Interest Income | ||||||||||||
| Interest & Fees On Loans | $ | 3,595,456 | $ | 3,035,928 | $ | 10,291,022 | $ | 8,564,927 | ||||
| Interest on Investment Securities | $ | 1,784,291 | $ | 1,843,696 | $ | 5,264,055 | $ | 5,725,365 | ||||
| Other Interest Income | $ | 247,797 | $ | 661,305 | $ | 680,824 | $ | 2,181,584 | ||||
| Total Interest Income | $ | 5,627,544 | $ | 5,540,929 | $ | 16,235,901 | $ | 16,471,876 | ||||
| Interest Expense | ||||||||||||
| Interest on Deposits | $ | 1,306,719 | $ | 1,168,014 | $ | 3,752,445 | $ | 3,255,683 | ||||
| Interest on Borrowings | $ | 289,488 | $ | 945,921 | $ | 1,032,636 | $ | 3,256,138 | ||||
| Total Interest Expense | $ | 1,596,207 | $ | 2,113,935 | $ | 4,785,081 | $ | 6,511,821 | ||||
| Net Interest Income | $ | 4,031,337 | $ | 3,426,994 | $ | 11,450,820 | $ | 9,960,055 | ||||
| Provision For Loan Losses | $ | 12,338 | $ | (14,173 | ) | $ | 20,420 | $ | (15,312 | ) | ||
| Net Interest Income After Provision for Loan Losses | $ | 4,018,999 | $ | 3,441,167 | $ | 11,430,400 | $ | 9,975,367 | ||||
| Noninterest Income | ||||||||||||
| Service Charges and Fees on Deposit Accounts | $ | 464,731 | $ | 445,176 | $ | 1,498,290 | $ | 1,345,691 | ||||
| Interchange Fees | $ | 111,218 | $ | 113,647 | $ | 328,169 | $ | 308,680 | ||||
| Earnings from Bank-Owned Life Insurance | $ | 63,103 | $ | 59,599 | $ | 181,749 | $ | 174,474 | ||||
| Merchant Services Processing | $ | 205,396 | $ | 129,184 | $ | 525,442 | $ | 410,722 | ||||
| Other Miscellaneous Income | $ | 47,295 | $ | 45,488 | $ | 225,110 | $ | 149,010 | ||||
| Total Noninterest Income | $ | 891,743 | $ | 793,094 | $ | 2,758,760 | $ | 2,388,577 | ||||
| Noninterest Expense | ||||||||||||
| Salaries and Employee Benefits | $ | 1,585,182 | $ | 1,521,825 | $ | 4,805,947 | $ | 4,444,120 | ||||
| Occupancy and Equipment | $ | 223,345 | $ | 182,813 | $ | 624,704 | $ | 515,286 | ||||
| Merchant Services Processing | $ | 86,326 | $ | 77,452 | $ | 232,919 | $ | 222,055 | ||||
| Other Expenses | $ | 859,723 | $ | 684,102 | $ | 2,326,176 | $ | 1,964,230 | ||||
| Total Noninterest Expense | $ | 2,754,576 | $ | 2,466,192 | $ | 7,989,746 | $ | 7,145,691 | ||||
| Income Before Income Tax Expense | $ | 2,156,164 | $ | 1,768,070 | $ | 6,199,415 | $ | 5,218,253 | ||||
| Provision For Income Tax | $ | 614,055 | $ | 499,565 | $ | 1,764,805 | $ | 1,474,323 | ||||
| Net Income | $ | 1,542,109 | $ | 1,268,505 | $ | 4,434,610 | $ | 3,743,930 | ||||
| Basic earnings per share | $ | 0.48 | $ | 0.39 | $ | 1.38 | $ | 1.17 | ||||
| Diluted earnings per share | $ | 0.48 | $ | 0.39 | $ | 1.38 | $ | 1.17 | ||||
| Financial Highlights | ||||||||||||
| As of 9/30/2025 | ||||||||||||
| Sep-2025 QTD | Sep-2024 QTD | Sep-2025 YTD | Sep-2024 YTD | |||||||||
| Key Financial Ratios | ||||||||||||
| Annualized Return on Average Equity | 13.32 | % | 12.39 | % | 13.32 | % | 12.69 | % | ||||
| Annualized Return on Average Assets | 1.36 | % | 1.08 | % | 1.34 | % | 1.06 | % | ||||
| Net Interest Margin | 3.79 | % | 3.08 | % | 3.66 | % | 2.96 | % | ||||
| Core Efficiency Ratio | 55.95 | % | 58.44 | % | 56.23 | % | 57.87 | % | ||||
| Net Chargeoffs/Recoveries to Average Loans | -0.00 | % | 0.00 | % | -0.01 | % | 0.000 | % | ||||
| 3 month ended Sep-2025 QTD Avg | 3 month ended Sep-2024 QTD Avg | Sep-2025 YTD Avg | Sep-2024 YTD Avg | |||||||||
| Average Balances | ||||||||||||
| (thousands, unaudited) | ||||||||||||
| Average assets | $ | 449,454 | $ | 466,891 | $ | 444,644 | $ | 472,470 | ||||
| Average interest-earning assets | $ | 423,017 | $ | 442,078 | $ | 418,872 | $ | 447,855 | ||||
| Average interest-bearing liabilities | $ | 223,314 | $ | 248,448 | $ | 225,404 | $ | 255,169 | ||||
| Average gross loans | $ | 210,494 | $ | 192,243 | $ | 208,374 | $ | 187,406 | ||||
| Average deposits | $ | 375,657 | $ | 344,433 | $ | 367,519 | $ | 335,191 | ||||
| Average equity | $ | 46,041 | $ | 40,630 | $ | 44,638 | $ | 39,297 | ||||
| Sep-2025 QTD | Dec-2024 YTD | |||||||||||
| Credit Quality | ||||||||||||
| Non-performing loans | $ | 827,155 | $ | 1,228,165 | ||||||||
| Non-performing loans to total loans | 0.39 | % | 0.60 | % | ||||||||
| Non-performing loans to total assets | 0.17 | % | 0.26 | % | ||||||||
| Allowance for credit losses to total loans | 2.20 | % | 2.25 | % | ||||||||
| Nonperforming assets as a percentage of total loans and OREO | 0.39 | % | 0.60 | % | ||||||||
| Allowance for credit losses to non-performing loans | 562.17 | % | 376.48 | % | ||||||||
| Other Period-end Statistics | ||||||||||||
| Shareholders equity to total assets | 9.65 | % | 9.15 | % | ||||||||
| Net Loans to Deposits | 53.27 | % | 57.36 | % | ||||||||
| Non-interest bearing deposits to total deposits | 47.99 | % | 47.77 | % | ||||||||
| Company Leverage Ratio | 11.59 | % | 10.40 | % | ||||||||
| Core Deposits / Total Deposits | 97.09 | % | 97.31 | % | ||||||||
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.
FAQ**
Given the significant increase in earnings and the strong performance of Chino Commercial Bancorp (CCBC) in Q3 2025, what strategies does the management plan to implement to sustain this growth momentum in the upcoming quarters?
How does Chino Commercial Bancorp (CCBC) plan to manage its loan portfolio and maintain loan quality, especially given the increase in non-performing loans reported in the last fiscal year?
With the recent opening of the new branch in Corona contributing $20 million in new deposits, does Chino Commercial Bancorp (CCBC) have plans to expand its branch network further, and what areas are being considered for future branches?
In light of the robust increase in both net interest income and non-interest income, how does Chino Commercial Bancorp (CCBC) intend to balance these revenue streams while managing operating expenses to ensure continued profitability?
**MWN-AI FAQ is based on asking OpenAI questions about Chino Commercial Bancorp (OTC: CCBC).
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