10/25/2021: CHINO COMMERCIAL BANCORP REPORTS 8% INCREASE IN NET EARNINGS

Chino, California, October 21, 2021 – 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 third quarter ended September 30, 2021. Net earnings for the third quarter of 2021, were $718 thousand, or an increase of 8.1%, as compared with earnings of $664 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 $0.27 for the third quarter of 2021, and $0.25 for the same quarter last year.

Dann H. Bowman, President and Chief Executive Officer, stated, “As the economy emerges from the effects of the pandemic, the Bank continues to perform well. During the thirst quarter, the Bank posted record levels for total assets, and deposits. We are also pleased to report that loan quality remains very strong, with the Bank having no delinquent loans at quarter-end, no pending foreclosures, and no OREO. Despite the challenges of the last eighteen months, we are optimistic about the opportunities for growth and expansion in the future”

Financial Condition

At September 30, 2021, total assets were $370.2 million, an increase of $55.3 million or 17.6% over $314.8 million at December 31, 2020. Total deposits increased by $53.2 million or 20.6% to $310.9 million as of September 30, 2021, compared to $257.7 million as of December 31, 2020. At September 30, 2021, the Company’s core deposits represent 97.9% of the total deposits.

Gross loans decreased by 6.7 % or $13.1 million as of September 30, 2021 to $182.6 million, as compared with $195.7 million as of December 31, 2020, primarily due to pay downs on loans made under the Payroll Protection Program. The Bank had one non-performing loan for the quarters ended September 30, 2021, and December 31, 2020. OREO properties remained at zero as of September 30, 2021 and December 31, 2020 respectively.

Earnings

The Company posted net interest income of $2.6 million for the three months ended September 30, 2021 and $2.3 million for the same quarter last year. Average interest-earning assets were $334.5 million with average interest-bearing liabilities of $145.6 million, yielding a net interest margin of 2.91% for the third quarter of 2021, as compared to the average interest-earning assets of $283.4 million with average interest-bearing liabilities of $135.8 million, yielding a net interest margin of 3.31% for the third quarter of 2020.

Non-interest income totaled $544.6 thousand for the third quarter of 2021, or an increase of 37.5% as compared with $395.9 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 $1.8 million for the three months ended September 30, 2021, and $1.6 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 third quarter of 2021 and $999.5 thousand for the same period last year.
Income tax expense was $273.4 thousand which represents an increase of $8 thousand or 2.9% for the three months ended September 30, 2021, as compared to $265.5 thousand for the three months ended September 30, 2020. The effective income tax rate for the third quarter of 2021 and 2020 were approximately 27.6% 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.

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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