04/19/2019: CHINO COMMERCIAL BANCORP REPORTS 23% INCREASE IN NET EARNINGS

CHINO COMMERCIAL BANCORP REPORTS 23% INCREASE IN NET EARNINGS

Chino California, April 19, 2019 – 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, 2019, with net earnings of $625 thousand, or an increase of 23%, compared with net income of $509 thousand for the same quarter last year. Net income per basic and diluted share was $0.34 for the first quarter of 2019 and $0.27 for the same quarter 2018, respectively.

Dann H. Bowman, President and Chief Executive Officer stated, “The economic strength of the Inland Empire is supporting tremendous growth opportunities for the Bank, and the first quarter marked new record levels for total assets, loans, revenue and net earnings. In general, this is a very good time for the Bank and we are pleased and excited about the future.”

Financial Condition

At March 31, 2019, total assets were $209.5 million, an increase of $7.5 million or 3.7% over $201.9 million at December 31, 2018. Total deposits increased by 2.8% or $4.8 million during the first quarter to $175.8 million, compared to $171.0 million as of December 31, 2018. At March 31, 2019, the Company’s core deposits represent 94.2% of the total deposits.

Gross loans increased by 2.6% or $3.5 million as of March 31, 2019 to $135.7 million, as compared with $132.2 million as of December 31, 2018. The Bank did not have any nonperforming loans for the quarter ended March 31, 2019, and as of December 31, 2018, respectively. OREO properties remained at zero as of March 31, 2019 and December 31, 2018, respectively.

Earnings

The Company posted net interest income of $2.0 million and $1.7 million for the three months ended March 31, 2019 and 2018, respectively, or an increase of $309 thousand or 17.9%. Average interest-earning assets were $187.3 million with average interest-bearing liabilities of $98.6 million, yielding a net interest margin of 4.40% for the first quarter of 2019, as compared to the average interest-earning assets of $173.5 million with average interest-bearing liabilities of $91.0 million, yielding a net interest margin of 4.03% for the first quarter of 2018.

Non-interest income totaled $425 thousand for the first quarter of 2019, or an increase of 10.0% as compared with $386.5 thousand earned during the same quarter last year. Service charges on deposit accounts, the largest component of non-interest income, increased by $49.0 thousand or 16.0% to $356 thousand, primarily due to an increase in income from returned items, overdraft charges, and analysis fees.

General and administrative expenses were $1.5 million for the three months ended March 31, 2019, and
$1.4 million for the same period last year. The largest component of general and administrative expenses was salary and benefits expense of $1.0 million for the first quarter of 2019, as compared to $869 thousand for the same quarter last year. Occupancy and equipment expenses increased by $38 thousand or 33.6% to $153 thousand in the first quarter of 2019 from $115 thousand for the same period last year. The increase in occupancy and equipment is mostly attributed to opening the Upland branch in the fourth quarter of 2018.

Income tax expense was $251 thousand which represents an increase of $48.6 thousand or 24.03% for the three months ended March 31, 2019 as compared to $202.5 thousand for the three months ended March 31, 2018. The effective income tax rate for the first quarters of 2019 and 2018 is approximately 28.7% and 28.5%, 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, customer 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.

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At Chino Commercial Bank, we take pride in knowing our customers personally, and their businesses closely. Our service is always one-on-one and never "one size fits all". If you are looking for a long-term relationship you can count on, look to Chino Commercial Bank.

- Dann H. Bowman, President & CEO