01/23/2017: 7% INCREASE IN THIRD QUARTER EARNINGS

7% INCREASE IN THIRD QUARTER EARNINGS

  Chino, California, October 21, 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 third quarter ended September 30, 2016 with net earnings of $361,258, or an increase of 7.4%, compared with net income of $336,328 for the same quarter last year. Net income per basic share for the third quarter of 2016 was $0.29 as compared to $0.27 for the same quarter last year. Financial Condition At September 30, 2016, total assets were $182.3 million, an increase of $20.9 million or 13.0% over $161.4 million at December 31, 2015. Total deposits increased by 15.1% or $19.7 million during the year to $150.0 million, compared to $130.3 million as of December 31, 2015. At September 30, 2016, the Company’s core deposits represent 95.0% of the total deposits. Gross loans increased by 15.1% or $14.1 million as of September 30, 2016 to $107.4 million as compared with $93.2 million as of December 31, 2015. The Bank had one nonperforming loan at the end of the third qurter and no nonperforming loans as of December 31, 2015. OREO properties remained at zero as of September 30, 2016, and December 31, 2015, respectively. Earnings The Company posted net interest income of $1,428,501 and $1,310,757 for the three months ended September 30, 2016 and 2015, respectively, or an increase of $117,744 or 9.0%. Average interest-earning assets were $161.7 million with average interest-bearing liabilities of $81.3 million, yielding a net interest margin of 3.51% for the third quarter of 2016, as compared to the average interest- earning assets of $142.9 million with average interest-bearing liabilities of $73.7 million, yielding a net interest margin of 3.64% for the third quarter of 2015. Non-interest income totaled $395,255 for the third quarter of 2016, or an increase of 12.7% as compared with $350,622 earned during the same quarter last year. Service charges on deposit accounts increased 13.3% to $300,936 primarily due to an increase in income from returned items and overdraft charges. Dividend income from restricted stock increased to $48,962 for the third quarter of 2016, compared to $37,951 for the same quarter in 2015. Income from bank-owned life insurance remained consistent at $25,657 in the third quarter of 2016 and $25,635 in the third quarter of 2015. General and administrative expenses were $1,202,581 for the three months ended September 30, 2016, as compared to $1,115,633 for the third quarter of 2015. The largest component of general and administrative expenses was salary and benefits expense of $704,158 for the third quarter of 2016, as compared to $650,333 for the same quarter last year. Regulatory assessments increased to $36,539 in the third quarter of 2016 in comparison with $31,611 in the third quarter of 2015. Advertising and marketing expenses increased 38.1% to $18,935 in the third quarter of 2016 from $13,714 for the same period last year. Income tax expense was $229,917 for the three months ended September 30, 2016 as compared to $209,175 for the three months ended September 30, 2015. The effective income tax rate for the third quarter of 2016 and 2015 is approximately 38.9% 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. 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.