05/20/2022: CHINO COMMERCIAL BANCORP REPORTS 7% INCREASE IN NET EARNINGS

CHINO COMMERCIAL BANCORP REPORTS  7% INCREASE IN NET EARNINGS

Chino, California, April 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 first quarter ended March 31, 2022.  Net earnings for the first quarter of 2022, were $900 thousand, or an increase of 7.4%, as compared with earnings of $838 thousand for the same quarter last year.  Net earnings per basic and diluted share was $0.34 for the first quarter of 2022, and $0.31 for the same quarter last year.

Dann H. Bowman, President and Chief Executive Officer, stated, “Despite the setbacks of the last two years, the economy of the Inland Empire appears to be rebounding.  We are excited about the opportunities for growth and expansion of the Bank as we offer new products and services to help small businesses to grow and prosper.”

Financial Condition

At March 31, 2022, total assets were $412.8 million, an increase of $34.3 million or 9.1% over $378.5 million at December 31, 2021.  Total deposits increased by $34.8 million or 10.1% to $353.7 million as of March 31, 2022, compared to $318.9 million as of December 31, 2021.  At March 31, 2022, the Company’s core deposits represent 98.4% of the total deposits.

Gross loans remained at $176 million both at March 31, 2022 and as of December 31, 2021. The Bank had two non-performing loans for the quarter ended March 31, 2022, and one non-performing loan as of December 31, 2021.  OREO properties remained at zero as of March 31, 2022 and December 31, 2021 respectively.

Earnings

The Company posted net interest income of $2.7 million for the three months ended March 31, 2022 and $2.5 million for the same quarter last year.  Average interest-earning assets were $367.3 million with average interest-bearing liabilities of $149.9 million, yielding a net interest margin of 2.72% for the first quarter of 2022, as compared to the average interest-earning assets of $305.5 million with average interest-bearing liabilities of $138.6 million, yielding a net interest margin of 3.59% for the first quarter of 2021.

Non-interest income totaled $540.3 thousand for the first quarter of 2022, or an increase of 16.6% as compared with $463.5 thousand earned during the same quarter last year.  The majority of the increase is attribute to service charges on deposit accounts and other fees.

General and administrative expenses were $2.0 million for the three months ended March 31, 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 $1.2 million for the first quarter of 2022 and $1.0 million for the same period last year.

Income tax expense was $352 thousand which represents an increase of $23 thousand or 7.4% for the three months ended March 31, 2022, as compared to $328.6 thousand for the three months ended March 31, 2021.  The effective income tax rate for the first quarter of 2022 and 2021 were approximately 28.1% 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