04/22/2016: INCREASE IN FIRST QUARTER EARNINGS

22% INCREASE IN FIRST QUARTER EARNINGS  

Chino, California, April 22, 2016 – The Board of Directors of Chino Commercial Bancorp (“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, 2016 with net earnings of $390,530, or an increase of 22.5%, compared with net income of $318,868 for the same quarter last year. Net income per basic share for the first quarter of 2016 was $0.38 as compared to $0.31 for the same quarter last year. Dann H. Bowman, President and Chief Executive Officer, stated, “The Company had an excellent first quarter with strong earnings and very good loan performance. The Bank also recently received recognition from the Findley Reports on Financial Institutions by again receiving their highest rating of Super Premier Performing for fiscal year 2015.” Financial Condition At March 31, 2016, total assets were $164.4 million, an increase of $3.0 million or 1.9% over $161.4 million at December 31, 2015. Total deposits increased by 2.1% or $2.8 million during the first quarter to $133.1 million, compared to $130.3 million as of December 31, 2015. At March 31, 2016, the Company’s core deposits represent 95.3% of the total deposits. Gross loans increased by 5.5% or $5.1 million during the first quarter to $98.3 million as compared with $93.2 million as of December 31, 2015. The Bank’s loan quality remained consistent during the first quarter as nonperforming assets and OREO were both at zero at March 31, 2016, and December 31, 2015. Earnings The Company posted net interest income of $1,400,128 and $1,225,212 for the three months ended March 31, 2016 and 2015, respectively, or an increase of $174,916 or 14.3%. Average interest- earning assets were $147.7 million with average interest-bearing liabilities of $76.0 million, yielding a net interest margin of 3.81% for the first quarter of 2016; as compared to the average interest-earning assets of $119.5 million with average interest-bearing liabilities of $60.9 million, yielding a net interest margin of 4.16% for the first quarter of 2015. Non-interest income totaled $360,959 for the first quarter of 2016, or a decrease of 2.1% as compared with $368,668 earned during the first quarter last year. Service charges on deposit accounts decreased 9.2% to $277,873 due to a decrease in income from returned items and overdraft charges. Dividend income from restricted stock increased to $34,881 for the first quarter of 2016, compared to $18,374 for the same quarter in 2015, due to additional purchases of restricted stock. Income from bank-owned life insurance remained consistent at $25,572 in the first quarter of 2016 and $25,418 in the first quarter of 2015. General and administrative expenses were $1,118,217 for the three months ended March 31, 2016, as compared to $1,075,780 for the first quarter of 2015. The largest component of general and administrative expenses was salary and benefits expense of $680,889 for the first quarter of 2016, as compared to $663,539 for the same quarter last year.  Regulatory assessments remained consistent at $30,311 in the first quarter of 2016 and $30,519 in the first quarter of 2015. Advertising and marketing expenses increased 48.5% to $17,116 in the first quarter of 2016 from $11,528 for the same period last year. Income tax expense was $251,294 for the three months ended March 31, 2016 as compared to $197,774 for the three months ended March 31, 2015. The effective income tax rate for the first quarter of 2016 and 2015 is approximately 39.2% and 38.3%, respectively.   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 there from, changes in interest rates, loan portfolio performance, and other factors detailed in the Company’s SEC filings. Contact: Dann H. Bowman, President and CEO or Melinda M. Milincu, Vice President and CFO, Chino Commercial Bancorp and Chino Commercial Bank, N.A., 14245 Pipeline Avenue, Chino, Ca. 91710, (909) 393-8880.