08/03/2023: CHINO COMMERCIAL BANCORP REPORTS SECOND QUARTER EARNINGS

CHINO COMMERCIAL BANCORP REPORTS SECOND QUARTER EARNINGS

Chino, California, July 21, 2023 – 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, 2023. Net earnings for the second quarter of 2023, were $1.3 million, or an increase of 2.53%, as compared with earnings of $1.2 million for the same quarter last year.

Net earnings per basic and diluted share was $0.39 for the second quarter of 2023, and $0.38 for the same quarter last year. Net earnings year to date increased by 12.3% or by $300 thousand to $2.4 million, as compared to $2.1 million for the same period last year. Net earnings per basic and diluted share was $0.76 for the period ending June 30, 2023 and $0.76 for the same period last year.

Dann H. Bowman, President and Chief Executive Officer, stated, “The fundamentals of the Company remain strong, with the Bank having only one delinquent loan at quarter-end, and revenue up significantly over the same period last year. The Net Interest Margin for the Bank, as a percent, has contracted slightly as deposits re-price faster than earning assets, however, this compression has been partially overcome through increased total assets. In general, we are optimistic about the opportunities for growth and expansion over the next several years. We believe the economic engine of the Inland Empire is strong and diverse, and the Bank is well positioned to help small business customers in our market.”

Financial Condition

At June 30, 2023, total assets were $453.4 million, an increase of $53.5 million or 13.4% over $399.8 million at December 31, 2022. Total deposits decreased by $6.7 million or 2.0% to $330.8 million as of June 30, 2023, compared to $337.5 million as of December 31, 2022. At June 30, 2022, the Company’s core deposits represent 97.7% of the total deposits.

Gross loans decreased by $4.3 million or 2.37% to $177.0 million as of June 30, 2022, compared to $181.2 million as of December 31, 2022. The Bank had three non-performing loans for the quarter ended June 30, 2023, and two non-performing loans as of December 31, 2022. OREO properties remained at zero as of June 30, 2023 and December 31, 2022 respectively.

Earnings

The Company posted net interest income of $3.2 million for the three months ended June 30, 2023 and $3.3 million for the same quarter last year. The decrease is primarily attributed to non- reoccurring PPP loan fees recognized in the second quarter of 2022. Average interest-earning assets were $431.5 million with average interest-bearing liabilities of $224.3 million, yielding a net interest margin of 3.00% for the second quarter of 2023, as compared to the average interest-earning assets of $383.4 million with average interest-bearing liabilities of $157.5 million, yielding a net interest margin of 3.48% for the second quarter of 2022.

Non-interest income totaled $645.8 thousand for the second quarter of 2023, or an increase of 15.10% as compared with $561.0 thousand earned during the same quarter last year. The majority of the increase is attributed to service charges on deposit accounts and other fees.

General and administrative expenses were $2.2 million for the three months ended June 30, 2023, and $1.9 million for the same period last year. The largest component of general and administrative expenses was salary and benefits expense of $1.4 million for the second quarter of 2023 and $1.2 million for the same period last year.

Income tax expense was $504 thousand, which represents an increase of $11 thousand or 2.4% for the three months ended June 30, 2023, as compared to $492 thousand for the three months ended June 30, 2022. The effective income tax rate for the second quarter of 2022 and 2021 were approximately 28.5%, for both periods.

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.