GlobeNewswire Inc | Apr 16, 2021 11:48AM EDT

April 16, 2021

CHINO, Calif., April 16, 2021 (GLOBE NEWSWIRE) -- 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, 2021. Net earnings for the first quarter 2021, were $838 thousand, or an increase of 36.6%, as compared with earnings of $614 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 $0.38 for the first quarter of 2021, and $0.28 for the same quarter last year.

Dann H. Bowman, President and Chief Executive Officer, stated: The Bank continues to perform well during these difficult times. Stimulus programs like the SBA PPP program for small businesses have been very helpful in allowing small businesses to remain viable. It is during difficult times like these that the Banks value proposition of providing focused, personalized service to its customers becomes more important than ever. Having a telephone number and direct contact with your banker can make a big difference when you have to make a fast decision, or need immediate help.

Financial Condition

At March 31, 2021, total assets were $338.7 million, an increase of $23.9 million or 7.6% over $314.8 million at December 31, 2020. Total deposits increased by 9.2% or $23.6 million to $281.3 million as of March 31, 2021, compared to $257.7 million as of December 31, 2020. At March 31, 2021, the Companys core deposits represent 96.8% of the total deposits.

Gross loans increased by 4.0% or $7.7 million as of March 31, 2021 to $203.4 million, as compared with $195.7 million as of December 31, 2020. The Bank had one non-performing loan for the quarters ended March 31, 2021, and December 31, 2020. OREO properties remained at zero as of March 31, 2021 and December 31, 2020 respectively.

The increases in total assets, deposits and loans are attributed to Banks response to the overwhelming request of PPP loans. Overall, since the program started the Bank approved and funded 644 PPP loans with an outstanding balance of $58.2 million as of March 31, 2021.

Earnings

The Company posted net interest income of $2.7 million for the three months ended March 31, 2021 and $2.1 million for the same quarter last year. Average interest-earning assets were $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, as compared to the average interest-earning assets of $184.0 million with average interest-bearing liabilities of $114.8 million, yielding a net interest margin of 4.56% for the first quarter of 2020.

Non-interest income totaled $463.5 thousand for the first quarter of 2021, or an increase of 1% as compared with $460.8 thousand earned during the same quarter last year. The majority of the increase is attribute to increases to dividend income and other fees.

General and administrative expenses were $1.8 million for the three months ended March 31, 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 $1.0 million for the first quarter of 2021 and for the same period last year.

Income tax expense was $328.6 thousand which represents an increase of $84 thousand or 34.4% for the three months ended March 31, 2021, as compared to $244.5 thousand for the three months ended March 31, 2020. The effective income tax rate for the first quarter of 2021 and 2020 were approximately 28.2% 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 managements 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 Companys ability to attract and retain skilled employees, customers service expectations, the Companys 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.

CHINO COMMERCIAL BANCORPCONSOLIDATED BALANCE SHEETMarch 31, 2021 and December 31, 2020

March 31, 2021 December 31, 2020 (unaudited) (audited)ASSETS: Cash and due from banks $ 78,939,945 $ 58,075,217 Federal funds sold - - Total cash and cash equivalents 78,939,945 58,075,217 Interest-bearing deposits in other banks - - Investment securities available for sale 30,155,721 32,370,042 Investment securities held to maturity (fair value approximates$17,669,746 at March 31, 2021 and 16,973,739 18,626,525 $19,556,250 at December 31, 2020)Total investments 47,129,460 50,996,567 Loans Construction 1,195,030 1,014,462 Real estate 115,763,483 119,302,116 Commercial 86,343,727 75,237,752 Installment 102,386 110,475 Gross loans 203,404,626 195,664,805 Unearned fees and discounts (2,337,377 ) (1,678,642 )Loans net of unearned fees and discount 201,067,249 193,986,163 Allowance for loan losses (3,488,458 ) (3,271,921 )Net loans 197,578,791 190,714,242 Fixed assets, net 6,097,603 6,145,711 Accrued interest receivable 979,621 1,013,732 Stock investments, restricted, at cost 1,554,200 1,554,200 Bank-owned life insurance 4,751,796 4,721,232 Other assets 1,672,294 1,618,717 Total assets $ 338,703,710 $ 314,839,618 LIABILITIES: Deposits Non-interest bearing $ 167,532,314 $ 145,433,815 Interest bearing NOW and money market 76,524,209 76,774,242 Savings 23,218,709 21,467,034 Time deposits less than $250,000 9,996,990 4,473,409 Time deposits of $250,000 or greater 4,036,340 9,563,300 Total deposits 281,308,562 257,711,800 Accrued interest payable 99,106 137,487 Borrowings from Federal Home Loan Bank 25,000,000 25,000,000 (FHLB)Accrued expenses & other payables 1,731,826 1,674,150 Subordinated notes payable to subsidiary 3,093,000 3,093,000 trustTotal liabilities 311,132,494 287,616,437 SHAREHOLDERS' EQUITY Common stock, authorized 10,000,000shares with no par value, issued andoutstanding 2,230,808 shares at March 10,502,558 10,502,557 31, 2021 and December 31, 2020,respectively.Retained earnings 17,266,670 16,428,258 Accumulated other comprehensive income/ (298,012 ) 292,366 (loss)Total shareholders' equity 27,471,216 27,223,181 Total liabilities & shareholders' equity $ 338,703,710 $ 314,839,618

CHINO COMMERCIAL BANCORPCONSOLIDATED STATEMENTS OF NET INCOME For the three months ended March 31 2021 2020 (unaudited) (unaudited)Interest income Interest and fee income on loans $ 2,648,462 $ 2,068,444Interest on federal funds sold and FRB deposits 16,265 112,930Interest on time deposits in banks - 1,856Interest on investment securities 213,442 214,152Total interest income 2,878,169 2,397,382 Interest Expense Interest on deposits 49,794 177,833Other borrowings 122,064 134,654Total interest expense 171,858 312,487Net interest income 2,706,311 2,084,895Provision for loan losses 200,000 50,000 Net interest income after provision for loan 2,506,311 2,034,895losses Non-interest income Service charges on deposit accounts 348,098 368,683Other miscellaneous income 61,716 39,100Dividend income from restricted stock 23,108 21,971Income from bank-owned life insurance 30,564 31,035Total non-interest income 463,486 460,789 Non-interest expenses Salaries and employee benefits 1,048,224 1,023,362Occupancy and equipment 156,286 149,686Data and item processing 156,549 134,488Advertising and marketing 20,337 42,604Legal and professional fees 44,265 44,640Regulatory assessments 33,480 18,261Insurance 9,823 8,834Directors' fees and expenses 32,280 33,214Other expenses 301,581 182,394Total non-interest expenses 1,802,825 1,637,483Income before income tax expense 1,166,972 858,201Income tax expense 328,560 244,524Net income $ 838,412 $ 613,677 Basic earnings per share $ 0.38 $ 0.28Diluted earnings per share $ 0.38 $ 0.28

For the three months ended March 31 2021 2020KEY FINANCIAL RATIOS (unaudited) Annualized return on average equity 12.38 % 9.89 %Annualized return on average assets 1.02 % 1.05 %Net interest margin 3.59 % 4.56 %Core efficiency ratio 56.88 % 64.32 %Net chargeoffs/(recoveries) to average loans -0.008 % -0.056 % AVERAGE BALANCES (thousands, unaudited) Average assets $ 327,614 $ 233,703 Average interest-earning assets $ 305,535 $ 184,016 Average gross loans $ 195,983 $ 144,491 Average deposits $ 270,019 $ 183,970 Average equity $ 27,091 $ 24,809 CREDIT QUALITY End of period(unaudited) March 31, December 31, 2021 2020 Non-performing loans $ 120,507 $ 107,672 Non-performing loans to total loans 0.06 % 0.06 %Non-performing loans to total assets 0.04 % 0.03 %Allowance for loan losses to total loans 1.72 % 1.67 %Nonperforming assets as a percentage of total 0.06 % 0.06 %loans and OREOAllowance for loan losses to non-performing 2894.82 % 3038.79 %loans OTHER PERIOD-END STATISTICS (unaudited) Shareholders equity to total assets 8.11 % 8.65 %Net loans to deposits 70.24 % 74.00 %Non-interest bearing deposits to total deposits 59.55 % 56.43 %Total capital to total risk-weighted assets 20.81 % 18.30 %Tier 1 capital to total risk-weighted assets 23.46 % 20.16 %Community Bank Leverage Ratio 11.30 % 11.44 %