04/17/2020: CHINO COMMERCIAL BANCORP REPORTS FIRST QUARTER EARNINGS

Chino, California, April 17, 2020 – 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 first quarter ended March 31, 2020. Net earnings for the first quarter 2020, were $614 thousand, or an decrease of 1.73%, as compared with earnings of $625 thousand for the same quarter last year. The decrease in earnings is primarily attributed to an increase in provision for loan losses due to current economic condition created by the COVID-19 pandemic. Net earnings per basic and diluted share was $0.28 for the first quarter of 2020, same as for the same quarter last year.

Dann H. Bowman, President and Chief Executive Officer, stated: “The beginning of the year started out very strong, however, the current economic, political and health conditions in our community are very troubling. With the statewide “Shelter at Home” order in place, initial jobless claims hit an all time record of 6.6 million last week. The CARE Act allocated roughly $2 Trillion to be sent to individuals and businesses, however, the process for distribution seems to be getting a slow start.

Because the Bank specializes in providing services to small businesses, we have experienced significant demand for the new SBA Payroll Protection Program loans (PPP). In the last 10 days requests for PPP loans have become overwhelming, however, we are stepping up to the challenge and are providing the credit needed by our customers during these tough times. In the end, I believe we will emerge from this experience, even stronger and more capable than we were before. We have a great team, a great market, and we are excited about the prospects for the Company over the next several years.”

Financial Condition

At March 31, 2020, total assets were $233 million, an increase of $3.5 million or 1.6% over $229.5 million at December 31, 2019. Total deposits increased by 1.7% or $3 million to $183 million as of March 31, 2020, compared to $180 million as of December 31, 2018. At March 31, 2020, the Company’s core deposits represent 95.6% of the total deposits.

Gross loans increased by 1% or $1.2 million as of March 31, 2020 to $145.6 million, as compared with $144.3 million as of December 31, 2019. The Bank had one non-performing loan for the quarters ended March 31, 2020, and December 31, 2019.  OREO properties remained at zero as of March 31, 2020 and December 31, 2019 respectively.

Earnings

The Company posted net interest income of $2 million for the three months ended March 31, 2020 and 2019 respectively. Average interest-earning assets were $184 million with average interest-bearing liabilities of $114.7 million, yielding a net interest margin of 4.56% for the first quarter of 2020, as compared to the average interest-earning assets of $184 million with average interest-bearing liabilities of $98.6 million, yielding a net interest margin of 4.46% for the first quarter of 2019. Non-interest income totaled $460 thousand for the first quarter of 2020, or an increase of 1.3% as compared with $425 thousand earned during the same quarter last year.

General and administrative expenses were $1.6 million for the three months ended March 31, 2020, and $1.5 million for the same period last year. The largest component of general and administrative expenses was salary and benefits expense of $1 million for the first quarter of 2020 and 2019, respectively.

Income tax expense was $244 thousand which represents a decrease of $10 thousand or 1.73% for the three months ended March 31, 2020, as compared to $251 thousand for the three months ended March 31, 2019. The effective income tax rate for the first quarter of 2020 and 2018 is approximately 28.5% and 28.7% respectively, and for the year ending March 31, 2020 and 2018, the effective income tax rates were 27.8% and 28.6% 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, Vice President and CFO, Chino Commercial Bancorp and Chino Commercial Bank, N.A., 14245 Pipeline Avenue, Chino, Ca. 91710, (909) 393- 8880.