CHINO, Calif., July 23, 2012 /PRNewswire/ -- 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 second quarter ended June 30, 2012 with net earnings of $124,196 a 348.7% increase from net loss of $49,945 for the second quarter of 2011. Net income for the most recent quarter represents $0.15 per basic share, as compared with losses of $0.07 per basic share from the same quarter last year. The Company's profit for the six months ended June 30, 2012 increased 114.0% to $328,154 or $0.41 per basic share as compared with net earnings of $153,360 or $0.20 per basic share for the same period in 2011.

Dann H. Bowman, President and Chief Executive Officer, stated, "We are very pleased with the performance of the Bank during the second quarter. Though economic conditions are troubling on a global scale, locally, the business environment appears to be improving. Residential real estate sales and valuations are showing signs of strength and many of our small business customers are reporting improved sales. At the end of the second quarter, the Bank reported only two delinquent loans.

"We continue to remain optimistic about the economy of the Inland Empire and the customers we serve. We are motivated and eager to continue lending to the businesses and consumers in our community."

Financial Condition

Balance sheet changes in the first half of 2012 include a slight increase in earning assets and a slight decline in deposits. Total deposits decreased by $983,903, or 1.0%, to $97.1 million at June 30, 2012 compared to December 31, 2011. The decline was in interest bearing deposits which decreased 1.1 million or 2.3% to $49.8 million at June 30, 2012 from 50.9 million at December 31, 2011. This reduction was an intentional strategy to reduce higher yielding deposits. Non-interest bearing deposits increased 0.4% to 47.4 million at June 30, 2012 from $47.2 million at December 31, 2011. The ratio of non-interest bearing deposits to total deposits increased from 48.1% at December 31, 2011 to 48.8% at June 30, 2012.

Total assets decreased slightly from $109.7 million at December 31, 2011 to $109.6 million at June 30, 2012, a 0.1% decrease. Investments decreased from $26.0 million at December 31, 2011 to $23.0 million, or 11.3%, while gross loans increased slightly from $56.8 million to $57.5 million, and federal funds sold increased from $14.2 million to $16.6 million. Overall, earning assets increased 0.2% in the six month period ended June 30, 2012.

The Bank's asset quality improved in the first half of 2012 as $439,317.26 in OREO was sold and the level of nonperforming assets to total loans and OREO moved from 7.07% at December 31, 2011 to 4.18% at June 30, 2012.

On September 16, 2011, the Company filed a registration statement on Form S-1 with the SEC in connection with a secondary stock offering to existing shareholders which commenced in the fourth quarter of 2011 and was extended to the general public in early 2012. The Company has generated $668,442.14 in additional paid in capital from the offering. The offering closed as of July 15, 2012.

Earnings

The Company posted net interest income of $878,636 and $907,439 for the three months ended June 30, 2012 and 2011, respectively. For the six months ended June 30, the Company posted net interest income of $1.8 million and $1.9 million for 2012 and 2011, respectively. Loan interest income decreased $25,863, or 2.9%, to $877,133 for the second quarter of 2012 compared with the second quarter of 2011. The decrease in interest income from loans was $155,462, or 8.1%, comparing the first half of 2012 with 2011. For the six months ended June 30, 2012, investment income decreased $127,665, or 39.6%, to $195,062 as compared to the six months ended June 30, 2011.

Non-interest income totaled $310,957 for the three months ended June 30, 2012, or a 2.2% decrease from $318,062 earned during the second quarter of 2011. Non-interest income increased 10.6% for the six months ended June 30, 2012 to $786,775, as compared to $711,113 for the six months ended June 30, 2011. The major contributor to the increase in the six-month period was other miscellaneous income due to reimbursement of legal expenses incurred in 2011.

General and administrative expenses were $994,626 and $2,040,602 for the three and six months ended June 30, 2012, respectively, as compared to $1,056,146 and $2,137,274 for the three and six months ended June 30, 2011. Legal and professional fees decreased $65,464 to $136,759 and regulatory assessments decreased $40,043 to $111,324 for the six months ended June 30, 2012 compared to the same period in 2011.

Income tax expense was $190,173 for the six months ended June 30, 2012, as compared to $67,851 for the six months ended June 30, 2011. The effective income tax rate for the six months ended June 30, 2012 and 2011 is approximately 36.7% and 30.7%, respectively.

Forward-Looking Statements

The statements contained in this 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. The forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and readers are cautioned not to unduly rely on such forward-looking statements. Actual results and performance in future periods may be materially different from any future results or performance suggested by the forward-looking statements in this release. Factors that might cause such differences include, but are not limited to, the health of the National and California economies, the Company's ability to attract and retain skilled employees, competition in the financial services market for both deposits and loans, the Company's ability to increase its customer base, customers' service expectations, the Company's ability to successfully deploy new technology and gain efficiencies therefrom, the success of branch expansion, changes in interest rates, loan portfolio performance, the Company's ability to enhance its earnings capacity, and other factors detailed in the Company's SEC filings, including the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recent Form 10-K.

CONTACT: Dann H. Bowman, President and CEO, or Sandra F. Pender, Senior Vice President and CFO, Chino Commercial Bank, N.A., +1-909-393-8880