01/25/2021: CHINO COMMERCIAL BANCORP REPORTS 3% INCREASE IN NET EARNINGS

CHINO COMMERCIAL BANCORP REPORTS 3% INCREASE IN NET EARNINGS

Chino, California, January 21, 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 fourth quarter ended December 31, 2020. Net earnings for the fourth quarter 2020, were $699 thousand, or an increase of 39.1%, as compared with earnings of $502 thousand for the same quarter last year. The increase in earnings is primarily attributed to the increase in loan interest and loan fee income. Net earnings per basic and diluted share was $0.31 for the fourth quarter of 2020, and $0.23 for the same quarter last year.

Dann H. Bowman, President and Chief Executive Officer, stated: “Despite the difficulty being experienced in our community because of COVID, the Bank has performed well during this time. By assisting small business customers and households, we have experienced a 37% increase in total assets, a 35% increase in total loans, and a 2.7% increase in net after tax earnings. Loan quality also remains very strong, with the Bank having no loan delinquencies and no foreclosed properties at year-end.

We believe that during tough times like these, the Bank’s value proposition stands out the most, and we may have many more opportunities to gain new banking relationships. 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 December 31, 2020, total assets were $314.8 million, an increase of $85.3 million or 37.2% over $229.5 million at December 31, 2019. Total deposits increased by 43.1% or $77.6 million to
$257.7 million as of December 31, 2020, compared to $180.2 million as of December 31, 2019. At December 31, 2020, the Company’s core deposits represent 96.3% of the total deposits.

Gross loans increased by 35.5% or $51.3 million as of December 31, 2020 to $195.7 million, as compared with $144.4 million as of December 31, 2019. The Bank had one non-performing loan for the quarters ended December 31, 2020, and December 31, 2019. OREO properties remained at zero as of December 31, 2020 and December 31, 2019 respectively.

The increases in total assets, deposits and loans are attributed to Bank’s response to the overwhelming request of PPP loans. Overall, the Bank approved and funded 396 PPP loans with an outstanding balance of $46.7 million as of December 31, 2020.

Earnings

The Company posted net interest income of $2.3 million for the three months ended December 31, 2020 and $2.0 million for the same quarter last year. Average interest-earning assets were $292.2 million with average interest-bearing liabilities of $136.3 million, yielding a net interest margin of 3.66% for the fourth quarter of 2020, as compared to the average interest-earning assets of $177.3 million with average interest-bearing liabilities of $119.4 million, yielding a net interest margin of 4.41% for the fourth quarter of 2019.

Non-interest income totaled $440.2 thousand for the fourth quarter of 2020, or a decrease of 3.6% as compared with $456.6 thousand earned during the same quarter last year. The majority of the decrease is attribute to a significant decrease in overdraft fees. General and administrative expenses were $1.8 million for the three months ended December 31, 2020, and $1.7 million for the same period last year. The largest component of general and administrative expenses was salary and benefits expense of $1.1 million for the fourth quarter of 2020 and $1.0 million thousand for the same period last year.

Income tax expense was $275.3 thousand which represents an increase of $78 thousand or 39.8% for the three months ended December 31, 2020, as compared to $197.0 thousand for the three months ended December 31, 2019. The effective income tax rate for the fourth quarter of 2020 and 2019 were approximately 28.6% and 28.5% respectively, and for the nine months ending December 31, 2020 and 2019, the effective income tax rates were 28.3% and 28.2% 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.

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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