10/21/2022: CHINO COMMERCIAL BANCORP REPORTS 77% INCREASE IN NET EARNINGS

CHINO COMMERCIAL BANCORP REPORTS 77% INCREASE IN NET EARNINGS

Chino, California, October 21, 2022 – 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, 2022. Net earnings for the third quarter of 2022, were $1.3 million, or an increase of 77.2%, as compared with earnings of $718 thousand for the same quarter last year. Net earnings per basic and diluted share were $0.48 for the third quarter of 2022, and $0.27 for the same quarter last year.

Dann H. Bowman, President and Chief Executive Officer, stated, “The third quarter of 2022 marks a new record for the Company with total Deposits, total Revenue, and Net Earnings all reaching new record highs. The Bank’s value proposistion remains very strong, and we continue to attract new customers every month.

Though the economy is showing signs of possible weakening, so far, we have not experienced a significant down-turn in credit quality. At the end of the quarter, the Bank had only one delinquent loan, no in-process foreclosures, and no OREO.”

Financial Condition

At September 30, 2022, total assets were $416.6 million, an increase of $38.1 million or 10.1% over $378.5 million at December 31, 2021. Total deposits increased by $37.0 million or 11.6% to
$355.9 million as of September 30, 2022, compared to $318.9 million as of December 31, 2021. At September 30, 2022, the Company’s core deposits represent 98% of the total deposits.

Gross loans increased by 1.2% or $3.7 million as of September 30, 2022 to $178.3 million as compared with $176.2 million at December 31, 2021. The Bank had two non-performing loans for the quarter ended September 30, 2022, and one non-performing loan as of December 31, 2021. OREO properties remained at zero as of September 30, 2022 and December 31, 2021 respectively.

Earnings

The Company posted net interest income of $3.3 million for the three months ended September 30, 2022 and $2.5 million for the same quarter last year. Average interest-earning assets were $393.5 million with average interest-bearing liabilities of $160.2 million, yielding a net interest margin of 3.33% for the third quarter of 2022, as compared to the average interest-earning assets of $334.5 million with average interest-bearing liabilities of $145.6 million, yielding a net interest margin of 2.91% for the third quarter of 2021.

Non-interest income totaled $608.3 thousand for the third quarter of 2022, or an increase of 11.7% as compared with $544.6 thousand earned during the same quarter last year. The majority of the increase was attributed to service charges on deposit accounts.

General and administrative expenses were $2.0 million for the three months ended September 30, 2022, and $1.8 million for the same period last year. The largest component of general and administrative expenses was salary and benefits expense of $1.3 million for the third quarter of 2022 and $1.1 million for the same period last year.

Income tax expense was $506.5 thousand which represents an increase of $233 thousand or 44% for the three months ended September 30, 2022, as compared to $273.4 thousand for the three months ended September 30, 2021. The effective income tax rate for the third quarter of 2022 and 2021 were approximately 28.5% and 27.6% 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 therefrom, and changes in interest rates, loan portfolio performance, and other factors.
Contact: Dann H. Bowman, President and CEO or Melinda M. Milincu, Senior Vice President and CFO, Chino Commercial Bancorp and Chino Commercial Bank, N.A., 14245 Pipeline Avenue, Chino, CA. 91710, (909) 393-8880.