07/17/2015: SECOND QUARTER NET INCOME

SECOND QUARTER NET INCOME  

Chino, California, July 17, 2015 – The Board of Directors of Chino Commercial Bancorp (“CCBC”), the parent company of Chino Commercial Bank, N.A., announced net earnings for the  Company  and  the  consolidated  Bank  for  the  second  quarter  ended  June  30,  2015,  of $353,552, or $0.34 per basic and diluted share, as compared with net income of $363,551 or $0.35 per basic and diluted share for the same quarter in 2014. The cause for the reduction was the recognition of extraordinary income of $130,000 through the reversal of Loan Loss Reserve in 2014, which did not reoccur in 2015. Net income excluding extraordinary items for the second quarter was $340,752 or an increase of $57,814 or 20% over $282,938 for the same quarter last year. Year-to-date earnings for the six months ended June 30, 2015 were $672,420 or an increase of 14.4% over net income of $587,972 for the same period last year. Year-to-date net income per basic and diluted share as of June 30, 2015 was $0.66 as compared with $0.57 for the same period last year, or an increase of 14.4%. Net earnings year-to-date of $0.66 represents a return on average equity of 12.02%. Dann H. Bowman, President and Chief Executive Officer, stated, “The second quarter of 2015 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. We are also pleased to report that the Bank’s loan quality is also very strong, with only one being delinquent at quarter-end, and the Bank having no non-performing Loans and no OREO.  We have also been very fortunate in having no credit losses year-to-date.” Financial Condition At June 30, 2015, total assets were $145.9 million, an increase of $15.7 million or 12.1% over $130.1 million at December 31, 2014. This is a direct result of the growth in the Company’s deposits which increased by 4.5% or $5.1 million to $120.6 million at June 30, 2015,  as compared with $115.4 million at December 31, 2014. At June 30, 2015, the Company’s non- interest bearing deposits was 55.7% of total deposits and its core deposits was 94.7% of the total deposits. Loans increased by $2.7 million or 3.3% to $86.2 million during the first half of 2015 as compared with $83.5 million on December 31, 2014. The Bank’s loan quality remained consistent during the second quarter as nonperforming assets and OREO remained at zero at June 30, 2015 and December 31, 2014, respectively. Earnings The Company posted net interest income of $1,247,489 for the quarter ended June 30, 2015 as compared to $1,069,079 for the quarter ended June 30, 2014. For the six months ended June 30, 2015, the Company posted net interest income of $2.5 million compared to $2.0 million for the first six months of 2014, an increase of $466,577 or 23.3%. Average interest-earning assets were $131.5 million with average interest-bearing liabilities of $64.1 million, yielding a net interest margin of 3.85% for the second quarter of 2015; as compared to the average interest-earning assets of $112.5 million with average interest- bearing liabilities of $54.6 million, yielding a net interest margin of 3.85% for the second quarter of 2014. Non-interest income totaled $389,686 for the second quarter of 2015, or a decrease of 2.4% from $399,385 during the second quarter of 2014. Service charges on deposit accounts decreased 12.3% to $301,395 due to a decrease in income from returned items and overdraft charges. Dividend income from restricted stock increased to $43,105 during the second quarter of 2015, from $9,020 for the second quarter of 2014. This increase is mostly attributed to a 103.3% increase in the restricted stock investment as well as a special dividend received by the Company during the second quarter of 2015 on this investment. General and administrative expenses were $1,061,226 for the three months ended June 30, 2015, as compared to $1,006,265 for the second quarter of 2014. The largest component of general and administrative expenses was salary and benefits expense of $650,690 for the second quarter of 2015, as compared to $575,021 for the three months ended June 30, 2014. Regulatory assessments increased to $30,683 or 1.9% in the second quarter of 2015, compared to $30,121 in the second quarter of 2014. Legal, Audit, and Other Professional fees decreased by 16.4% to $37,390 in the second quarter of 2015, from $44,703 in the quarter ended June 30, 2014 due to an overall decrease in audit fees. Income tax expense was $220,057 for the three months ended June 30, 2015, as compared to $228,648 for the three months ended June 30, 2014. The effective income tax rate for the second quarter of 2015 and 2014 is approximately 38.4% and 38.6%, 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.