01/27/2016: INCREASE IN FOURTH QUARTER EARNINGS

22% INCREASE IN FOURTH QUARTER EARNINGS 

Chino, California, January 27, 2016 – The Board of Directors of Chino Commercial Bancorp (OTC:CCBC), the parent company of Chino Commercial Bank, N.A., announced net earnings for the Company and the consolidated Bank for the fourth quarter ended December 31, 2015 of $318,620 or an increase of 21.7%, as compared with net income of $261,886 for the same quarter last year. Net income per basic and diluted share for the fourth quarter 2015 was $0.31, as compared to $0.26 for the same quarter last year. The Company’s income for the year ended December 31, 2015 increased 16.5% to $1,327,370 or $1.29 per basic and diluted share, as compared with net earnings of $1,139,773 or $1.11 per basic and diluted share for the same period in 2014. Dann H. Bowman, President and Chief Executive Officer stated, “The Bank had a very good year, with net earnings increasing 16% over last year. Credit quality remains solid with the Bank having no credit losses during the year, no Non-performing assets at year-end, and no foreclosed properties. Economic conditions in the Inland Empire continue to improve and the business climate is very good. With the Bank’s strong balance sheet, we have the capacity to expand our lending within the community and continue to grow the Bank.” Financial Condition At December 31, 2015, total assets were $161.4 million, which was an increase of $31.3 million or 24.0% over $130.1 million at December 31, 2014. Deposits increased by $14.9 million or 12.9% to $130.3 million at December 31, 2015, from $115.4 million at December 31, 2014. Loans net of unearned fees increased 11.7% in the year ended December 31, 2015 to $93.0 million from $83.2 million at December 31, 2014. The Bank’s loan quality remained consistent, as nonperforming assets and OREO remained at zero as of December 31, 2015 and December 31, 2014, respectively. Earnings The Company posted net interest income of $1,355,351 and $1,170,793 for the three months ended December 31, 2015 and 2014, respectively, or an increase of $184,558 or 15.8%. For the year ended December 31, 2015 the Company posted net interest income of $5,138,809, compared to $4,258,258 for the same period in 2014, or an increase of $880,551 or 20.7%. Average interest-earning assets were $150.7 million with average interest-bearing liabilities of $71.5 million, yielding a net interest margin of 3.57% for the fourth quarter of 2015; as compared to the average interest-earning assets of $115.1 million with average interest- bearing liabilities of $56.0 million, yielding a net interest margin of 4.03% for the fourth quarter of 2014. Non-interest income totaled $375,022 for the fourth quarter of 2015, or an increase of 1.9% from $367,964 earned during the fourth quarter of 2014. For the year ended December 31, 2015, non-interest income totaled $1,483,998 or a 7.5% decrease from $1,605,098 earned during the same period in 2014. General and administrative expenses were $1,176,051 for the three months ended December 31, 2015, as compared to $1,114,531 for the fourth quarter of 2014. The largest component of general and administrative expenses was salary and benefits expense of $690,496 for the fourth quarter of 2015, as compared to $665,516 for the three months ended December 31, 2014. Regulatory assessments increased to $33,767 or 65.2% in the fourth quarter of 2015, compared to $20,446 in the fourth quarter of 2014. Legal, Audit, and Other Professional fees decreased by 18.1% to $42,934 in the fourth quarter of 2015, from $52,425 in the quarter ended December 31, 2014, due to an overall decrease in audit fees. Income tax expense was $197,455 for the three months ended December 31, 2015, as compared to $157,743 for the three months ended December 31, 2014. The effective income tax rate for the fourth quarter of 2015 and 2014 is approximately 38.3% and 37.6%, 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.