updated 10/25/2010 7:15:25 AM ET 2010-10-25T11:15:25

CHINO, Calif., Oct. 25, 2010 (GLOBE NEWSWIRE) -- The Board of Directors of Chino Commercial Bancorp (OTCBB: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, 2010 with net earnings of $194,041, a 104.1% increase from net income of $95,080 for the third quarter of last year. The net earnings for the most recent quarter represent $0.26 per diluted share, as compared with $0.13 per diluted share from the same quarter last year. The Company's profit year-to-date decreased 13.3% to $249,519 or $0.35 per diluted share as compared with net earnings of $287,878 or $0.39 per diluted share for the same period last year.

Dann H. Bowman, President and Chief Executive Officer, stated, "We are very pleased with the performance of the Bank during the third quarter. Not only did the Bank post a significant improvement in net earnings, but even more important was that we had no delinquent loans at the quarter-end. At this time in the economic cycle, we are very fortunate to be experiencing such strong performance and earnings."

Financial Condition

Balance sheet changes during the nine months of 2010 include a sizeable increase in deposits and a slight decrease in loans. Total deposits increased by $9.5 million, or 10.2%, to $101.7 million at September 30, 2010. Much of the growth was in demand deposits which increased $6.1 million, or 16.9%. Time deposits decreased $1.7 million or 6.9% during the nine months of 2010, ending at $22.6 million at September 30, 2010. Combined NOW and money market demand accounts increased to $4.7 million at September 30, 2010, a 15.2% increase from $31.1 million at December 31, 2009, while savings accounts increased 33.3% from $1.0 million at December 31, 2009 to $1.3 million at September 30, 2010.

Total assets increased from $103.6 million at December 31, 2009 to $112.7 million at September 30, 2010, an 8.8% increase. Gross Loans declined slightly from $61.4 million to $59.3 million, and investments increased from $33.3 million to $38.3 million.

The Company has experienced net loan losses thus far this year totaling $495,125, has three loans on non-accrual, and very few delinquent loans in the three quarters of 2010. Although on non-accrual, three loans totaling $1.5 million are current and paying as agreed.

Earnings

The Company posted net interest income for the quarters ended September 30, 2010 and September 30, 2009 of $1,005,347 and $1,015,974, respectively. For the nine months ended September 30, the Company posted net interest income of $2,935,421 and $2,732,607 for 2010 and 2009, respectively. Significant contributors to the increase in net interest income for the nine months ended September 30, 2010 were the increased interest and fees on loans and interest from investment securities. Loan interest decreased $68,918, or 6.1%, to $1,056,071 for the third quarter of 2010 compared with the third quarter of 2009. Year-to-date interest and fees income from loans increased $182,513, or 6.1%, comparing 2010 with 2009. Interest expense on deposits decreased $20,668, or 8.6%, comparing the quarters ended September 30, 2010 with 2009. On a year-to-date comparison, interest on deposits decreased $3,798, or 0.5% in 2010 compared to the same period in 2009. Interest from investments and due from banks increased $37,570, or 20.7% and $16,355, or 2.7% for the quarter and nine months ended September 30, 2010 compared to the same periods in 2009. Average interest-earning assets were $102.8 million with average interest-bearing liabilities of $65.4 million, yielding a net interest margin of 4.82% for the nine months ended September 30, 2010; as compared to average interest-bearing assets of $81.6 million with average interest-bearing liabilities of $49.0 million, yielding a net interest margin of 3.48% for the nine months ended September 30, 2009.

Non-interest income totaled $424,989 for the three months ended September 30, 2010, or a 54.4% increase from $275,322 earned during the third quarter of 2009. Non-interest income increased 33.8% for the nine months ended September 30, 2009 to $1,037,752, as compared to $775,483 for the nine months ended September 30, 2009. Affecting the increase in non-interest income through September 30, 2010 were a proceeds from the sale of repossessed equipment of $127,839 offset by the recognition of a net probable loss from the sales of Other Real Estate Owned for $27,500. Service charges on deposit accounts increased by $52,447 in the quarter-to-quarter and $157,751 in the year-to-year comparisons of periods ended September 30, 2010 and 2009.

General and administrative expenses were $1,105,290 and $3,079,333 for the three and nine months ended September 30, 2010, respectively, as compared to $861,595 and $2,646,238 for the three and nine months ended September 30, 2009. The increases in General and administrative expenses occurred mainly in Salaries and employee benefits, which increased due to the opening of a new branch in April 2010.

Income tax expense was $115,361 and $114,325 for the three and nine months ended September 30, 2009, as compared to $46,797 and $142,269 for the same periods of 2008. The effective income tax rate for 2010 and 2009 is approximately 31.4% and 33.1%, 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 there from, changes in interest rates, loan portfolio performance, and other factors detailed in the Company's SEC filings.

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