CHINO COMMERCIAL BANCORP REPORTS 42% INCREASE IN NET EARNINGS

Chino, California, July 22, 2022 – 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, 2022. Net earnings for the second quarter of 2022, were $1.2 million, or an increase of 42.4%, as compared with earnings of $867 thousand for the same quarter last year. Net earnings per basic and diluted share was $0.46 for the second quarter of 2022, and $0.32 for the same quarter last year.

Dann H. Bowman, President and Chief Executive Officer, stated “The fundamentals of the Bank continue to remain strong. During the second quarter the company saw an increase in revenue of 35% and net earnings year-to-date increased by 25%. Loan quality continues to remain strong, with the Bank having no delinquent loans at quarter-end, no foreclosed properties. We do see some weakness in the economy over the next 18 months, however, even this has the potential to create opportunities to expand the customer base and  grow the company. We are excited about the opportunities for growth and expansion of the Bank as we offer new products and services to help small businesses to grow and innovate as we navigate through challenging times.”

Financial Condition

At June 30, 2022, total assets were $406.8 million, an increase of $28.3 million or 7.5% over $378.5 million at December 31, 2021. Total deposits increased by $28.2 million or 8.8% to $347.1 million as of June 30, 2022, compared to $318.9 million as of December 31, 2021. At June 30, 2022, the Company’s core deposits represent 98.4% of the total deposits.

Gross loans decreased by 2.1% or $3.7 million as of June 30, 2022 to $172 million as compared with $176.2 million at December 31, 2021, primarily attributed to continued payoffs of PPP loans. The Bank had two non-performing loans for the quarter ended June 30, 2022, and one non-performing loan as of December 31, 2021. OREO properties remained at zero as of June 30, 2022 and December 31, 2021 respectively.

Earnings

The Company posted net interest income of $3.3 million for the three months ended June 30, 2022 and $2.6 million for the same quarter last year. Average interest-earning assets were $385.4 million with average interest-bearing liabilities of $154.5 million, yielding a net interest margin of 3.43% for the second quarter of 2022, as compared to the average interest-earning assets of $326 million with average interest-bearing liabilities of $143.8 million, yielding a net interest margin of 3.17% for the second quarter of 2021.

Non-interest income totaled $594.5.3 thousand for the second quarter of 2022, or an increase of 12.9% as compared with $526.4 thousand earned during the same quarter last year. The majority of the increase is attributed to service charges on deposit accounts and other fees.

General and administrative expenses were $1.9 million for the three months ended June 30, 2022, and $1.7 million for the same period last year. The largest component of general and administrative expenses was salary and benefits expense of $1.2 million for the second quarter of 2022 and $1.0 million for the same period last year.

Income tax expense was $492 thousand which represents an increase of $150 thousand or 44% for the three months ended June 30, 2022, as compared to $342 thousand for the three months ended June 30, 2021. The effective income tax rate for the second quarter of 2022 and 2021 were approximately 28.5% and 28.3% 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 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.