Chino Commercial Bancorp Sees Impressive Growth in Earnings

Chino Commercial Bancorp Achieves Record Earnings

Chino Commercial Bancorp (OTC: CCBC), the parent company of Chino Commercial Bank, recently reported remarkable financial results for the fourth quarter and the entire year. The latest figures indicate that the bank's net earnings for the fourth quarter reached an impressive $1.40 million, marking an increase of 13.8% or $169.3 thousand over the same period last year. This growth is notable, showcasing the bank's resilience and capability to achieve higher returns even in a competitive market.

Yearly Performance and Financial Strength

For the full year of 2024, Chino Commercial Bancorp reported net earnings of $5.1 million, which represents a year-over-year growth of 4.10%, up from $4.9 million in 2023. Earnings per share also experienced positive traction, increasing from $1.54 in 2023 to $1.60 in 2024. "2024 was a pivotal year for us, with new records established across total assets, loans, and deposits, underscoring the strength of our business model," stated Dann H. Bowman, the bank's President and CEO.

Strategic Expansion Plans

The bank's growth narrative continues with strategic plans for expansion. In 2024, Chino Commercial Bancorp acquired a new building in Corona, positioning itself to open its fifth branch office in the first quarter of the forthcoming year. With over $9 million in deposits at the new branch already acquired by year-end, the expansion efforts are expected to significantly enhance the bank's market presence.

Merchant Services Development

In addition to physical expansion, the bank has diversified its offerings by joining the Card Brand Association in 2023. This strategic move has allowed the bank to introduce merchant services, including credit card processing. This service not only expands revenue streams but provides customers with enhanced savings and operational efficiency. Recognizing the importance of managing cash flow effectively, the bank envisions expanding its merchant services to reach a broader clientele beyond its immediate markets.

Sound Financial Condition

As of December 31, 2024, Chino Commercial Bancorp's total assets stood at $466.7 million, up by $20.3 million or 4.54% from the previous year. Total deposits increased by 9.08%, reaching $348.8 million, while core deposits constituted an impressive 97.31% of total deposits, reflecting a solid foundation for future growth.

Loan Portfolio Dynamics

Chino Commercial Bancorp reported gross loans amounting to $205.2 million, a notable rise of 14.45% from the previous year's total of $179.3 million. The quality of these loans remains robust, with only a few non-performing loans reported by the end of the year. The bank's commitment to maintaining a healthy loan portfolio is evident in its strategic lending practices and effective monitoring systems.

Revenue Growth Across Segments

The company generated a net interest income of $3.8 million for the last quarter of 2024, which is an increase from $3.3 million in the same period of 2023. Notably, average interest-earning assets were reported at $433.5 million, resulting in a healthy net interest margin of 3.45%.

Increased Non-Interest Income

Chino Commercial Bancorp experienced a 20.5% increase in non-interest income, totaling $816.5 thousand for the fourth quarter. The majority of this income can be attributed to merchant services processing revenue, which demonstrated significant growth from $56.8 thousand to $134.0 thousand compared to the same quarter of the previous year. This performance underscores the bank's effective revenue diversification.

Robust Cost Management

Even with the increase in revenue, general and administrative expenses rose to $2.6 million in the fourth quarter, up from $2.2 million a year earlier. Salary and benefits accounted for a significant portion of these expenses, reflecting the bank’s investment in its workforce for continued service excellence.

Positive Outlook for Future Growth

Chino Commercial Bancorp's effective management and strategic planning position it favorably for continued success. With plans to open new branches and enhance service offerings, the bank is committed to sustaining growth and delivering value to its shareholders and the community. The company remains well-poised to adapt to market dynamics while leveraging its strong performance metrics.

Frequently Asked Questions

What are the recent earnings reported by Chino Commercial Bancorp?

Chino Commercial Bancorp reported net earnings of $1.40 million for the fourth quarter of 2024, indicating a robust increase from the previous year.

What led to the increase in Chino Commercial Bancorp's net earnings?

The increase in net earnings can be attributed to higher revenues from loans, deposits, and new merchant services provided to customers.

What expansion plans does Chino Commercial Bancorp have?

The bank plans to open its fifth branch office and expand its merchant services beyond its current market.

How much did Chino Commercial Bancorp's total assets grow?

Total assets grew to $466.7 million, reflecting a 4.54% increase year-over-year.

What types of services does Chino Commercial Bancorp now offer?

Besides traditional banking services, the bank now offers credit card processing and merchant services to its customers, enhancing its revenue streams.

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