07/22/2016: INCREASE IN SECOND QUARTER EARNINGS

5% INCREASE IN SECOND QUARTER EARNINGS  

Chino, California, July 22, 2016 – 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, 2016 with net earnings of $371,840, or an increase of 5.2%, compared with net income of $353,552 for the same quarter last year. Net income per basic share for the second quarter of 2016 was $0.30 as compared to $0.29 for the same quarter last year. Dann H. Bowman, President and Chief Executive Officer, stated, “The second quarter of 2016 marks a new record for the Company with total Deposits, total Loans and total Revenue all reaching new highs. The competitive market for the Bank is very good and as the economy in Southern California continues to improve we are optimistic regarding the potential for further expansion in our markets. Financial Condition At June 30, 2016, total assets were $178.6 million, an increase of $17.2 million or 10.6% over $161.4 million at December 31, 2015. Total deposits increased by 8.7% or $11.3 million during the year to $141.6 million, compared to $130.3 million as of December 31, 2015. At June 30, 2016, the Company’s core deposits represent 95.4% of the total deposits. Gross loans increased by 10.4% or $9.7 million as of June 30, 2016 to $103.0 million as compared with $93.2 million as of December 31, 2015. The Bank’s loan quality remained consistent during the second quarter as nonperforming assets and OREO were both at zero as of June 30, 2016, and December 31, 2015, respectively. Earnings The Company posted net interest income of $1,460,731 and $1,247,489 for the three months ended June 30, 2016 and 2015, respectively, or an increase of $213,242 or 17.1%. Average interest- earning assets were $149.6 million with average interest-bearing liabilities of $77.7 million, yielding a net interest margin of 3.93% for the second quarter of 2016; as compared to the average interest-earning assets of $131.5 million with average interest-bearing liabilities of $67.8 million, yielding a net interest margin of 3.85% for the second quarter of 2015. Non-interest income totaled $427,800 for the second quarter of 2016, or an increase of 9.8% as compared with $389,686 earned during the same quarter last year. Service charges on deposit accounts decreased 10.8% to $268,928 due to a decrease in income from returned items and overdraft charges. Dividend income from restricted stock decreased to $37,962 for the second quarter of 2016, compared to $43,105 for the same quarter in 2015 due to special dividend payout during the second quarter of 2015 from the Federal Home Loan Bank.   Income from bank-owned life insurance remained consistent at $25,597 in the second quarter of 2016 and $25,525 in the second quarter of 2015. General and administrative expenses were $1,147,630 for the three months ended June 30, 2016, as compared to $1,061,226 for the second quarter of 2015. The largest component of general and administrative expenses was salary and benefits expense of $706,355 for the second quarter of 2016, as compared to $650,690 for the same quarter last year. Regulatory assessments increased to $36,539 in the second quarter of 2016 in comparison with $30,683 in the second quarter of 2015. Advertising and marketing expenses increased 18.1% to $17,426 in the second quarter of 2016 from $14,757 for the same period last year. Income tax expense was $237,697 for the three months ended June 30, 2016 as compared to $220,057 for the three months ended June 30, 2015. The effective income tax rate for the second quarter of 2016 and 2015 is approximately 39.0% and 38.4%, 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. 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.