03/31/2017: 5.5% INCREASE IN NET EARNINGS

5.5% INCREASE IN NET EARNINGS  

The Board of Directors of Chino Commercial Bank, N.A. (OTC:CCBC) announced the results of operations for the quarter ended March 31, 2017 with net income of $411,914, or an increase of 5.5% over net income of $390,530 for March 31, 2016. Net income per basic and diluted share for the quarter ended March 31, 2017 was $0.33 as compared to $0.32 per share for the quarter ended March 31, 2016. Dann H. Bowman, President and Chief Executive Officer stated, “In addition to the excellent first quarter earnings results, the Bank was recently recognized by the Findley Reports on Financial Institutions by receiving their highest rating of “Super Premier Performing.” The economic strength of the Inland Empire is supporting tremendous growth opportunities for the Bank; and the first quarter marked new record levels for total assets, loans, revenue and net earnings. In general, this is a very good time for the Bank and we are pleased and excited about the future.” Financial Condition At March 31, 2017, total assets were $185.3 million, an increase of $10.2 million or 5.9% over $175.1 million at December 31, 2016. Total deposits increased by 7.2% or $9.9 million during the year to $147.5 million, compared to $137.6 million as of December 31, 2016. At March 31, 2017, the Company’s core deposits represent 97.1% of the total deposits. Gross loans increased by 3.3% or $3.6 million as of March 31, 2017 to $113.1 million as compared with $109.6 million as of December 31, 2016. The Bank had one nonperforming loan for the quarter ended March 31, 2017 and December 31, 2016, respectively. OREO properties remained at zero as of March 31, 2017, and December 31, 2016, respectively. Earnings The Company posted net interest income of $1,527,669 and $1,400,128 for the three months ended March 31, 2017 and 2016, respectively, or an increase of $127,541 or 9.1%. Average interest- earning assets were $164.8 million with average interest-bearing liabilities of $97.1 million, yielding a net interest margin of 3.76% for the first quarter of 2017, as compared to the average interest-earning assets of $147.7 million with average interest-bearing liabilities of $76.0 million, yielding a net interest margin of 3.81% for the first quarter of 2016. Non-interest income totaled $379,856 for the first quarter of 2017, or an increase of 5.2% as compared with $360,959 earned during the same quarter last year. Service charges on deposit accounts increased 5.0% to $291,643 primarily due to an increase in income from returned items and overdraft charges. Dividend income from restricted stock increased to $45,081 for the first quarter of 2017, compared to $34,881 for the same quarter in 2016. Income from bank-owned life insurance remained consistent at $25,022 in the first quarter of 2017 and $25,572 in the first quarter of 2016. General and administrative expenses were $1,173,533 for the three months ended March 31, 2017, as compared to $1,118,217 for the first quarter of 2017. The largest component of general and administrative expenses was salary and benefits expense of $744,775 for the first quarter of 2017, as compared to $680,889 for the same quarter last year. Regulatory assessments increased to $37,610 in the first quarter of 2017 in comparison with $30,311 in the first quarter of 2016. Advertising and marketing expenses increased 27.6% to $21,844 in the first quarter of 2017 from $17,116 for the same period last year. Income tax expense was $267,078 for the three months ended March 31, 2017 as compared to $251,294 for the three months ended March 31, 2016. The effective income tax rate for the first quarter of 2016 and 2015 is approximately 39.3% and 39.2%, 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.