07/26/2017: 13% INCREASE IN NET EARNINGS

13% 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 second quarter ended June 30, 2017 with net earnings of $420 thousand, or an increase of 13%, compared with net income of $372 thousand for the same quarter last year. Net income per basic share for the second quarter of 2017 was $0.34 as compared to $0.30 for the same quarter last year. Dann H. Bowman, President and Chief Executive Officer stated, “In addition to the excellent second 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. In general, this is a very good time for the Bank and we are pleased and excited about the future.” Financial Condition At June 30, 2017, total assets were $180.3 million, an increase of $5.2 million or 3.0% over $175.1 million at December 31, 2016. Total deposits increased by 3.0% or $4.1 million during the year to $141.7 million, compared to $137.6 million as of December 31, 2016. At June 30, 2017, the Company’s core deposits represent 97.0% of the total deposits. Gross loans increased by 1.7% or $1.9 million as of June 30, 2017 to $111.4 million, as compared with $109.5 million as of December 31, 2016. The Bank did not have any nonperforming loans for the quarter ended June 30, 2017, and one nonperforming loan as of December 31, 2016, respectively. OREO properties remained at zero as of June 30, 2017 and December 31, 2016, respectively. Earnings The Company posted net interest income of $1.6 million and $1.5 million for the three months ended June 30, 2017 and 2016, respectively, or an increase of $102 thousand or 7.0%. Average interest- earning assets were $166.1 million with average interest-bearing liabilities of $95.3 million, yielding a net interest margin of 3.78% for the second quarter of 2017, as compared to the average interest-earning assets of $149.6 million with average interest-bearing liabilities of $77.7 million, yielding a net interest margin of 3.93% for the second quarter of 2016. Non-interest income totaled $389 thousand for the second quarter of 2017, or a decrease of 9.2% as compared with $427 thousand earned during the same quarter last year. The majority of this decrease is attributed to $77 thousand of extraordinary income recorded in the same quarter last year. Without this extraordinary income the Company would have reported a $37 thousand or 10.8% increase in non- interest income for the second quarter of 2017.  Service charges on deposit accounts increased by $48 thousand or 18.0% to $317 thousand primarily due to an increase in income from returned items and overdraft charges. Dividend income from restricted stock decreased to $28 thousand for the second quarter of 2017, compared to $38 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 $25 thousand in the second quarter of 2017 and 2016, respectively. General and administrative expenses were $1.3 million for the three months ended June 30, 2017, as compared to $1.1 million for the second quarter of 2016. The largest component of general and administrative expenses was salary and benefits expense of $772 thousand for the second quarter of 2017, as compared to $706 thousand for the same quarter last year. Regulatory assessments remained consistent at $37 thousand for the second quarter of 2017 and 2016, respectively. Advertising and marketing expenses increased by $13 thousand or 73.7% to $30 thousand in the second quarter of 2017 from $17 thousand for the same period last year. The Company engaged a marketing company to assist with advertising efforts during the second quarter of 2017. Income tax expense was $273 thousand for the three months ended June 30, 2017 as compared to $238 thousand for the three months ended June 30, 2016. The effective income tax rate for the second quarter of 2017 and 2016 is approximately 39.4% and 39.0%, 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.