GlobeNewswire Inc | Jan 21, 2022 12:39PM EST

January 21, 2022

CHINO, Calif., Jan. 21, 2022 (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 fourth quarter, and year ended December 31, 2021. Net earnings for the fourth quarter of 2021, were $707 thousand, or an increase of 1.2%, as compared with earnings of $699 thousand for the same quarter last year. Net earnings per basic and diluted share was $0.26 for the fourth quarter of 2021, and for the same quarter last year.

Net earnings for the fiscal year ended December 31, 2021 increased by 19.3% or by $506 thousand to $3.1 million, as compared to $2.6 million for fiscal year 2020. Net earnings per basic and diluted share was $1.17 for the fiscal year 2021, and $0.98 for fiscal year 2020.

Dann H. Bowman, President and Chief Executive Officer, stated, We are very pleased with the performance of the Bank during 2021, which ended the year with record levels of Deposits, Revenue, Earnings and Earnings per Share. As we begin to emerge from the Pandemic, we are optimistic about the business opportunities available to the Bank; and we are looking forward to 2022.

Financial Condition

At December 31, 2021, total assets were $378.5 million, an increase of $63.7 million or 20.02% over $314.8 million at December 31, 2020. Total deposits increased by $61.2 million or 23.7% to $318.9 million as of December 31, 2021, compared to $257.7 million as of December 31, 2020. At December 31, 2021, the Companys core deposits represent 97.9% of the total deposits.

Gross loans decreased by 10.0 % or $19.5 million as of December 31, 2021 to $176.2 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 December 31, 2021, and December 31, 2020. OREO properties remained at zero as of December 31, 2021 and December 31, 2020 respectively.

Earnings

The Company posted net interest income of $2.6 million for the three months ended December 31, 2021 and $2.9 million for the same quarter last year. Average interest-earning assets were $348.6 million with average interest-bearing liabilities of $145.9 million, yielding a net interest margin of 2.63% for the fourth quarter of 2021, as compared to the average interest-earning assets of $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.

Non-interest income totaled $606.2 thousand for the fourth quarter of 2021, or an increase of 15.9% as compared with $440.2 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 $1.9 million for the three months ended December 31, 2021, 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 fourth quarter of 2021 and $1.1 million for the same period last year.

Income tax expense was $259.1 thousand which represents a decrease of $16 thousand or 5.9% for the three months ended December 31, 2021, as compared to $275.3 thousand for the three months ended September 30, 2020. The effective income tax rate for the fourth quarter of 2021 and 2020 were approximately 26.8% and 28.3% 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.

CHINO COMMERCIAL BANCORPCONSOLIDATED BALANCE SHEETDecember 31, 2021 and 2020

December 31, 2021 December 31, 2020 (unaudited) (audited)ASSETS: Cash and due from banks $ 135,593,445 $ 58,075,217 Federal funds sold - - Total cash and cash equivalents 135,593,445 58,075,217 Interest-bearing deposits in other banks - - Investment securities available for sale 40,270,538 32,370,042 Investment securities held to maturity (fair value approximates$12,834,547 at December 31, 2021 and 12,435,291 18,626,525 $19,556,250 at December 31, 2020)Total investments 52,705,829 50,996,567 Loans Construction 414,072 1,014,462 Real estate 119,542,970 119,302,116 Commercial 56,078,174 75,237,752 Installment 148,731 110,475 Credit Cards 0 - Gross loans 176,183,947 195,664,805 Unearned fees and discounts (1,419,084 ) (1,678,642 ) Loans net of unearned fees and 174,764,863 193,986,163 discount Allowance for loan losses (3,888,480 ) (3,271,921 )Net loans 170,876,383 190,714,242 Fixed assets, net 5,897,342 6,145,711 Accrued interest receivable 877,104 1,013,732 Stock investments, restricted, at cost 2,045,200 1,554,200 Bank-owned life insurance 7,871,339 4,721,232 Other assets 2,647,811 1,618,717 Total assets $ 378,514,453 $ 314,839,618 LIABILITIES: Deposits Non-interest bearing $ 195,274,304 $ 145,433,815 Interest bearing NOW and money market 85,144,889 76,774,242 Savings 25,147,966 21,467,034 Time deposits less than $250,000 9,616,481 4,473,409 Time deposits of $250,000 or greater 3,695,546 9,563,300 Total deposits 318,879,186 257,711,800 Accrued interest payable 130,327 137,487 Borrowings from Federal Home Loan Bank 15,000,000 25,000,000 (FHLB)Accrued expenses & other payables 1,817,704 1,674,150 Subordinated debt 10,000,000 - Subordinated notes payable to subsidiary 3,093,000 3,093,000 trustTotal liabilities 348,920,217 287,616,437 SHAREHOLDERS' EQUITY Common stock, authorized 10,000,000 shares with no par value, issued andoutstanding 2,676,799 shares at December 31, 2021 and December 31, 2020,respectively. 10,502,558 10,502,557

Retained earnings 19,556,872 16,428,258 Accumulated other comprehensive (465,194 ) 292,366 income/(loss) Total shareholders' equity 29,594,236 27,223,181 Total liabilities & shareholders' equity $ 378,514,453 $ 314,839,618

CHINO COMMERCIAL BANCORPCONSOLIDATED STATEMENTS OF NET INCOME For the three months ended For the 12 months ended December 31 December 31 2021 2020 2021 2020 (unaudited) (unaudited) (unaudited) (unaudited)Interest income Interest and fee $ 2,271,284 $ 2,624,645 $ 9,914,710 $ 9,207,406income on loansInterest onfederal funds 47,599 14,194 130,615 154,934sold and FRBdepositsInterest on timedeposits in - - - 1,856banksInterest oninvestment 242,681 225,264 880,324 912,489securitiesTotal interest 2,561,564 2,864,103 10,925,649 10,276,685income Interest Expense Interest on 42,090 53,723 187,460 369,628depositsOther borrowings 207,193 124,947 693,963 511,815Total interest 249,283 178,670 881,423 881,443expense Net interest 2,312,281 2,685,433 10,044,226 9,395,242incomeProvision for - 400,000 555,000 770,000loan losses Net interestincome after 2,312,281 2,285,433 9,489,226 8,625,242provision forloan losses Non-interest incomeService chargeson deposit 412,268 342,342 1,545,628 1,293,966accountsOthermiscellaneous 119,487 47,642 343,247 163,514incomeDividend incomefrom restricted 28,693 18,421 101,622 71,664stockIncome frombank-owned life 45,711 31,840 150,107 125,648insuranceTotalnon-interest 606,159 440,245 2,140,604 1,654,792income Non-interest expensesSalaries andemployee 1,234,412 1,064,780 4,408,276 4,058,653benefitsOccupancy and 157,939 160,415 619,851 623,102equipmentData and item 173,749 147,958 664,422 589,351processingAdvertising and 26,664 33,869 126,457 144,167marketingLegal andprofessional 900 76,075 138,895 209,565feesRegulatory 41,768 33,480 149,569 116,167assessmentsInsurance 10,106 10,567 40,141 38,380Directors' fees 32,520 32,040 129,600 130,054and expensesOther expenses 274,294 192,528 1,018,815 692,060Totalnon-interest 1,952,352 1,751,712 7,296,026 6,601,499expensesIncome beforeincome tax 966,088 973,966 4,333,804 3,678,535expenseIncome tax 259,105 275,285 1,202,816 1,053,805expense Net income $ 706,983 $ 698,681 $ 3,130,988 $ 2,624,730 Basic earnings $ 0.26 $ 0.26 $ 1.17 $ 0.98per shareDiluted earnings $ 0.26 $ 0.26 $ 1.17 $ 0.98per share

For the three months ended For the twelve months ended December 31 December 31 2021 2020 2021 2020 KEY FINANCIAL RATIOS(unaudited) Annualizedreturn on 10.68% 11.37% 11.70% 10.69% average equityAnnualizedreturn on 0.75% 0.89% 0.89% 0.92% average assetsNet interest 2.63% 3.66% 3.06% 3.81% marginCore efficiency 66.90% 56.04% 59.88% 59.74% ratioNet chargeoffs/(recoveries) to -0.008% 0.008% -0.03% -0.07% average loans AVERAGE BALANCES (thousands, unaudited)Average assets $ 374,871 $ 313,827 $ 353,393 $ 284,525 Averageinterest-earning $ 348,574 $ 292,210 $ 328,772 $ 246,612 assetsAverage gross $ 175,748 $ 192,418 $ 187,096 $ 173,923 loansAverage deposits $ 325,436 $ 253,908 $ 305,234 $ 224,966 Average equity $ 26,488 $ 24,583 $ 26,772 $ 24,551 CREDIT QUALITY End of period (unaudited) December December 31, 2021 31, 2020 Non-performing $ 115,434 $ 119,836 loans Non-performingloans to total 0.07% 0.06% loansNon-performingloans to total 0.03% 0.04% assetsAllowance forloan losses to 2.21% 1.67% total loansNonperformingassets as apercentage of 0.07% 0.06% total loans andOREOAllowance forloan losses to 3368.57% 2730.33% non-performingloans OTHER PERIOD-END STATISTICS(unaudited) Shareholdersequity to total 7.82% 8.65% assetsNet loans to 53.59% 74.00% depositsNon-interestbearing deposits 61.24% 56.43% to totaldepositsTotal capital tototal 21.40% 18.30% risk-weightedassetsTier 1 capitalto total 24.35% 20.16% risk-weightedassetsCompany Leverage 8.84% 11.44% Ratio

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.