04/16/2021: CHINO COMMERCIAL BANCORP REPORTS 37% INCREASE IN NET EARNINGS

CHINO COMMERCIAL BANCORP REPORTS 37% INCREASE IN NET EARNINGS

Chino, California, April 16, 2021 – 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 first quarter ended March 31, 2021. Net earnings for the first quarter 2021, were $838 thousand, or an increase of 36.6%, as compared with earnings of $614 thousand for the same quarter last year. The increase in earnings is primarily attributed to the increase in loan interest and loan fee income. Net earnings per basic and diluted share was $0.38 for the first quarter of 2021, and $0.28 for the same quarter last year.

Dann H. Bowman, President and Chief Executive Officer, stated: “The Bank continues to perform well during these difficult times. Stimulus programs like the SBA PPP program for small businesses have been very helpful in allowing small businesses to remain viable. It is during difficult times like these that the Bank’s value proposition of providing focused, personalized service to its customers becomes more important than ever. Having a telephone number and direct contact with your banker can make a big difference when you have to make a fast decision, or need immediate help.”

Financial Condition

At March 31, 2021, total assets were $338.7 million, an increase of $23.9 million or 7.6% over $314.8 million at December 31, 2020. Total deposits increased by 9.2% or $23.6 million to $281.3 million as of March 31, 2021, compared to $257.7 million as of December 31, 2020. At March 31, 2021, the Company’s core deposits represent 96.8% of the total deposits.

Gross loans increased by 4.0 % or $7.7 million as of March 31, 2021 to $203.4 million, as compared with $195.7 million as of December 31, 2020. The Bank had one non-performing loan for the quarters ended March 31, 2021, and December 31, 2020. OREO properties remained at zero as of March 31, 2021 and December 31, 2020 respectively.

The increases in total assets, deposits and loans are attributed to Bank’s response to the overwhelming request of PPP loans. Overall, since the program started the Bank approved and funded 644 PPP loans with an outstanding balance of $58.2 million as of March 31, 2021.

Earnings

The Company posted net interest income of $2.7 million for the three months ended March 31, 2021 and $2.1 million for the same quarter last year. Average interest-earning assets were $305.5 million with average interest-bearing liabilities of $138.6 million, yielding a net interest margin of 3.59% for the first quarter of 2021, as compared to the average interest-earning assets of $184.0 million with average interest-bearing liabilities of $114.8 million, yielding a net interest margin of 4.56% for the first quarter of 2020.
Non-interest income totaled $463.5 thousand for the first quarter of 2021, or an increase of 1% as compared with $460.8 thousand earned during the same quarter last year. The majority of the increase is attribute to increases to dividend income and other fees.

General and administrative expenses were $1.8 million for the three months ended March 31, 2021, and $1.6 million for the same period last year. The largest component of general and administrative expenses was salary and benefits expense of $1.0 million for the first quarter of 2021 and for the same period last year.
Income tax expense was $328.6 thousand which represents an increase of $84 thousand or 34.4% for the three months ended March 31, 2021, as compared to $244.5 thousand for the three months ended March 31, 2020. The effective income tax rate for the first quarter of 2021 and 2020 were approximately 28.2% and 28.5% 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 therefrom, and 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.