10/20/2017: 27% INCREASE IN NET EARNINGS

27% INCREASE IN NET EARNINGS  

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 third quarter ended September 30, 2017 with net earnings of $459 thousand, or an increase of 27%, compared with net income of $361 thousand for the same quarter last year. Net income per basic share for the third quarter of 2017 was $0.33 as compared to $0.29 for the same quarter last year. Dann H. Bowman, President and Chief Executive Officer stated, “In addition to the excellent third quarter earnings results, the Company also recently completed a successful stock offering, in which demand for the shares exceeded the amount of stock available. With the increase in capital and the strength of the local economy, we are very pleased and optimistic regarding growth opportunities for the Bank. In general, this is a very good time for the Bank and we are very excited about the future.” Financial Condition At September 30, 2017, total assets were $198.3 million, an increase of $23.2 million or 13.2% over $175.1 million at December 31, 2016.  Total deposits increased by 12.5% or $17.3 million during the year to $154.8 million, compared to $137.6 million as of December 31, 2016. At September 30, 2017, the Company’s core deposits represent 90.5% of the total deposits. Gross loans increased by 6.3% or $6.9 million as of September 30, 2017 to $116.4 million, as compared with $109.5 million as of December 31, 2016. The Bank did not have any nonperforming loans for the quarter ended September 30, 2017, and one nonperforming loan as of December 31, 2016, respectively. OREO properties remained at zero as of September 30, 2017 and December 31, 2016, respectively. Earnings The Company posted net interest income of $1.6 million and $1.4 million for the three months ended September 30, 2017 and 2016, respectively, or an increase of $197 thousand or 13.8%. Average interest- earning assets were $176.7 million with average interest-bearing liabilities of $101.2 million, yielding a net interest margin of 3.65% for the third quarter of 2017, as compared to the average interest-earning assets of $161.8 million with average interest-bearing liabilities of $81.3 million, yielding a net interest margin of 3.51% for the third quarter of 2016. Non-interest income totaled $389 thousand for the third quarter of 2017, or a decrease of 1.6% as compared with $395 thousand earned during the same quarter last year. Service charges on deposit accounts increased by $8 thousand or 2.8% to $309 thousand, primarily due to an increase in income from returned items and overdraft charges. Dividend income from restricted stock decreased to $36 thousand for the third quarter of 2017, compared to $49 thousand for the same quarter in 2016, due to the Federal Home Loan Bank change in dividend payout percentage policy. Income from Bank-owned life insurance remained consistent at about $25 thousand in the third quarter of 2017 and 2016, respectively. General and administrative expenses were $1.2 million for the three months ended September 30, 2017, and September 30, 2016, respectively. The largest component of general and administrative expenses was salary and benefits expense of $732 thousand for the third quarter of 2017, as compared to $704 thousand for the same quarter last year. Regulatory assessments remained consistent at about $37 thousand for the third quarter of 2017 and 2016, respectively. Advertising and marketing expenses increased by $6 thousand or 31.7% to $25 thousand in the third quarter of 2017 from $19 thousand for the same period last year. The Company engaged a marketing company to assist with advertising efforts during 2017. Income tax expense was $300 thousand for the three months ended September 30, 2017 as compared to $230 thousand for the three months ended September 30, 2016. The effective income tax rate for the third quarter of 2017 and 2016 is approximately 39.5% and 38.9%, 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, 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.