Chino Commercial Bancorp Reports 25% Increase in Net Earnings
MWN-AI** Summary
Chino Commercial Bancorp (OTC: CCBC), the parent company of Chino Commercial Bank, reported a significant 25.04% increase in net earnings for the second quarter of 2025, achieving $1.54 million compared to $1.23 million in the same period last year. This performance translated into basic and diluted earnings per share of $0.48, up from $0.38 a year earlier. Year-to-date net earnings also rose by 16.85% to $2.89 million, leading to an earnings per share increase from $0.77 to $0.90.
CEO Dann H. Bowman expressed satisfaction with the Bank's strong performance, noting record levels in total Assets, Deposits, net earnings, and Capital. The Bank reported robust loan quality, with no delinquent loans at quarter-end, and its recent opening of a new location in Corona contributed $20 million in new deposits. The Bank's Merchant Services program saw growth, providing improved processing services to customers.
Financially, as of June 30, 2025, total assets reached $481.9 million, marking a 3.3% increase from the previous year. Total deposits rose 6.5% to $371.6 million, with core deposits making up nearly all of the total. Gross loans saw a modest increase, totaling $206.3 million.
Chino Commercial Bancorp's net interest income for the quarter stood at $3.7 million, an increase from $3.2 million in the prior year. The average net interest margin improved to 3.69%, compared to 2.95% the year before, highlighting enhanced financial performance. Non-interest income also increased by 23%, driven by higher service charges and merchant services revenue. Total noninterest expenses rose to $2.7 million due to increased staffing costs, while the company’s effective tax rate remained stable at approximately 28.5%.
MWN-AI** Analysis
Chino Commercial Bancorp (OTC: CCBC) has reported impressive financial results for the second quarter of 2025, with a notable 25% increase in net earnings to $1.54 million compared to the same period last year. This growth reflects a robust operational performance, characterized by increased net interest income and strategic expansion efforts, including the opening of a new branch in Corona, which has already amassed $20 million in deposits.
Key highlights include a rise in net interest income to $3.8 million, aided by a healthy net interest margin of 3.69%, up from 2.95% year-over-year. The bank's ability to generate income despite rising interest rates is a significant positive, suggesting effective management of interest-earning assets and liabilities. Importantly, Chino Commercial Bancorp has maintained strong loan quality, reporting no delinquent loans and a minimal number of non-performing loans, reinforcing investor confidence in its credit risk management.
Looking at the performance metrics, the annualized return on average equity at 13.88% and return on average assets at 1.41% indicate efficient use of capital and assets to generate profits, which should appeal to potential investors. Additionally, a core efficiency ratio of 55.25% suggests that the bank is operating efficiently with reasonable expense control relative to revenue generation.
In light of these results, potential investors may see opportunity in CCBC as it continues to expand its footprint and enhance its product offerings, particularly its merchant services, which have shown significant growth. The dependable balance sheet with strong core deposits (97.01% of total deposits) provides stability and positions the bank for future growth.
Prospective investors should consider getting involved, but remain mindful of external risks including economic fluctuations and interest rate changes, which could influence performance. Overall, CCBC depicts a solid investment opportunity with its recent performance trajectory and strategic initiatives.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
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 factors contributed to the 25.04% increase in net earnings for Chino Commercial Bancorp CCBC in Q2 2025 compared to the previous year, and how sustainable is this growth?
How is Chino Commercial Bancorp CCBC planning to leverage its new Corona branch to further increase total deposits and assets in the coming quarters?
With a strong loan quality leading to no delinquent loans, how does Chino Commercial Bancorp CCBC plan to maintain this trend while also expanding its lending portfolio?
Given the upward trend in operating expenses, how does Chino Commercial Bancorp CCBC intend to manage costs while continuing to enhance its merchant services and overall customer experience?
**MWN-AI FAQ is based on asking OpenAI questions about Chino Commercial Bancorp (OTC: CCBC).
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