01/23/2017: 9.5% INCREASE IN NET EARNINGS

9.5% INCREASE IN NET EARNINGS

  The Board of Directors of Chino Commercial Bank, N.A. (OTC:CCBC) announced the results of operations for the year ended December 31, 2016 with net income of $1,453,103, or an increase of 9.5% over net income of $1,327,370 for December 31, 2015. Net income per basic and diluted share for the year ended December 31, 2016 was $1.18 as compared to $1.08 per share for the year ended December 31, 2015. Net income for the fourth quarter ended December 31, 2016 was $329,476, or an increase of 3.4%, as compared with net income of $318,620 for the same quarter last year. Net income per basic and diluted share for the fourth quarter of 2016 was $0.27 as compared to $0.26 for the same quarter last year. Dann H. Bowman, President and Chief Executive Officer stated, “We are very pleased with the performance of the Bank in 2016. This year the Bank set new records for total deposits, loans and earnings. The Company’s net earnings for fiscal year 2016 were up over 9.4%, representing a return on beginning equity of 12%. Deposit and Loan balances increased during the year by 5.5% and 17.5% respectively, allowing the Bank to show improved stability of earnings and efficiency.” Financial Condition At December 31, 2016, total assets were $175.1 million, an increase of $13.7 million or 8.5% over $161.4 million at December 31, 2015. Total deposits increased by 5.5% or $7.2 million during the year to $137.6 million, compared to $130.3 million as of December 31, 2015. At December 31, 2016, the Company’s core deposits represent 96.8% of the total deposits. Gross loans increased by 17.5% or $16.3 million as of December 31, 2016 to $109.5 million as compared with $93.2 million as of December 31, 2015. The Bank had one nonperforming loan at the end of the fourth qurter and no nonperforming loans as of December 31, 2015. OREO properties remained at zero as of December 31, 2016, and December 31, 2015, respectively. Earnings The Company posted net interest income of $1,478,873 and $1,355,351 for the three months ended December 31, 2016 and 2015, respectively, or an increase of $123,522 or 9.1%. Average interest- earning assets were $161.87 million with average interest-bearing liabilities of $85.9 million, yielding a net interest margin of 3.64% for the fourth quarter of 2016, as compared to the average interest-earning assets of $150.7 million with average interest-bearing liabilities of $75.4 million, yielding a net interest margin of 3.57% for the fourth quarter of 2015. Non-interest income totaled $383,362 for the fourth quarter of 2016, or an increase of 2.2% as compared with $375,022 earned during the same quarter last year. Service charges on deposit accounts decreased 12.5% to $241,256 primarily due to a decrease in income from returned items and overdraft charges. Dividend income from restricted stock increased to $99,694 for the fourth quarter of 2016, compared to $51,951 for the same quarter in 2015. Income from bank-owned life insurance remained consistent at $25,891 in the fourth quarter of 2016 and $25,875 in the fourth quarter of 2015.   General and administrative expenses were $1,283,729 for the three months ended December 31, 2016, as compared to $1,176,051 for the fourth quarter of 2015. The largest component of general and administrative expenses was salary and benefits expense of $791,133 for the fourth quarter of 2016, as compared to $690,496 for the same quarter last year. Regulatory assessments increased to $37,611 in the fourth quarter of 2016 in comparison with $33,767 in the fourth quarter of 2015. Advertising and marketing expenses increased 37.5% to $22,598 in the fourth quarter of 2016 from $16,438 for the same period last year. Income tax expense was $209,030 for the three months ended December 31, 2016 as compared to $197,455 for the three months ended December 31, 2015. The effective income tax rate for the fourth quarter of 2016 and 2015 is approximately 38.8% 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.