Chino Commercial Bancorp (CCBC) 8-K Chino Commercial Bancorp Reports Quarterly and Year-to-date Earnings

Exhibit 99.1

CHINO COMMERCIAL BANCORP REPORTS QUARTERLY AND YEAR-TO-DATE EARNINGS

     Chino, California…July 20, 2009 - 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, 2009 with net earnings of $73,529, a 49.8% reduction from $146,405 for the same quarter of 2008. The net earnings for the most recent quarter represent $0.10 per diluted share, as compared with $0.19 per diluted share from the same quarter last year. However, the Banks profit year-to-date was up 2.6% to $192,798 or $0.26 per diluted share as compared with net earnings of $187,876 or $0.25 per dilute share for the same period last year.

     Dann H. Bowman, President and Chief Executive Officer stated, “Earnings for the Bank have been quite strong, however a FDIC special assessment during the second quarter and higher provisions for possible loan losses lowered the Bank’s net profit below the same period last year. Despite these unanticipated expenses we are very pleased with the Bank’s stability and earnings overall. During a time when many organizations are suffering from credit problems, we are proud to report at the end of June, the Company had only one loan which was delinquent more than 30 days.”

Financial Condition

     Balance sheet changes during the first half of 2009 include sizeable increases in deposits, and loans. Total deposits increased by $13.0 million, or 18.3%, to $84.0 million at June 30, 2009. The Company experienced increases in all deposit categories. Much of the growth was in time deposits which increased $7.9 million, or 89.2% . Non-interest bearing demand deposits increased $2.5 million or 7.6% during the first half of 2009 ending at $35.1 million at June 30, 2009. Combined NOW and money market account balances increased $2.5 million, or 8.9%, to $28.4 million.

     Total assets increased from $83.4 million at December 31, 2008 to $94.3 million at June 30, 2009, a 13.0% increase. Gross Loans rose from $49.8 million to $57.1 million, and due from banks time increased from $12.5 million to $18.2 million. Gross loan balances increased in part by the completion of a $6.4 million dollar whole loan purchase in early May, in addition to organic loan growth.

     The Company has experienced no loan losses thus far this year, no non-performing loans, and very few delinquent loans in the first and second quarters of 2009.

Earnings

     The Company posted net interest income for the quarters ended June 30, 2009 and June 30, 2008 of $894,333 and $900,476, respectively. For the six months ended June 30, the Company posted net interest income of $1,716,633 and $1,785,061 for 2009 and 2008, respectively. Significant contributors to the decline in net interest income were the decreased interest on loans and increased interest on deposits. Loan interest decreased $27,254, or 2.7%, to $972,656 for second quarter of 2009 compared with the second quarter of 2008. The decline in interest income from loans was $120, 352, or 6.1%, comparing the first half of 2009 with 2008.

Interest expense on deposits increased $65,520, or 39.5%, comparing the quarters ended June 30, 2009 with June 30, 2008. On a year-to-date comparison, interest on deposits increased $100,913, or 27.6%, in 2009 compared to the same period in 2008. Interest from investments increased $92, 025, or 81.9%, and $183,507, or 77.1% for the quarter and six months ended June 30, 2009 compared to the quarter and six months ended June 30, 2008. Average interest-earning assets were $78.3 million with average interest-bearing liabilities of $46.5 million yielding a net interest margin of 4.42% for the six months ended June 30, 2009 as compared to average interest-bearing assets of $66.3 million with average interest-bearing liabilities of $31.7 million yielding a net interest margin of 5.41% for the six months ended June 30, 2008.

     Non-interest income totaled $252,708 for the three months ended June 30, 2009, or a 14.4% decrease from $295,356 earned during the second quarter of 2008. Non-interest income decreased 14.4% for the six months ended June 30, 2009 at $500,161, as compared to $559,744 for the six months ended June 30, 2008. Affecting the decline in non-interest income for the second quarter and first half of 2009 were an accrual reversal for unrealized income from FHLB stock of $8,500 and the recognition of a net probable loss from the sales of Other Real Estate Owned for $13,521. Service charges on deposit accounts also declined in the quarter-to-quarter and year-to-year comparisons of periods ended June 30, 2009 and 2008.

     General and administrative expenses were $914,067 and $1,784,643 for the three and six months ended June 30, 2009, respectively, as compared to $922,549 and $1,785,298 for the three and six months ended June 30, 2008. The decreases in General and administrative expenses would have been much greater had the Company not experienced a 335.7% increase for the quarter and a 187.5% increase for the first half year from regulatory assessments.

     Income tax expense was $31,715 and $95,472 for the three and six months ended June 30, 2009, as compared to $83,105 and $93,227 for the same periods of 2008. The effective income tax rate for 2008 and 2009 is approximately 33.1% .

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.

     Contact: Dann H. Bowman, President and CEO or Sandra F. Pender, Vice President and CFO, Chino Commercial Bank, N.A., 14345 Pipeline Avenue, Chino, Ca. 91710, (909) 393-8880.

CHINO COMMERCIAL BANCORP
CONSOLIDATED BALANCE SHEET
June 30, 2009 and December 31, 2008
		June 30, 2009			December 31, 2008
		(unaudited)			(audited)
ASSETS:
Cash and due from banks	$	4,399,022		$	3,877,897
Interest-bearing deposits in other banks		18,205,089			12,498,000
Investment securities available for sale		7,037,258			8,791,651
Investment securities held to maturity(fair value approximates
$2,822,000 at June 30, 2009 and $3,186,000 at December 31, 2008)		2,784,610			3,167,401
Total investments		28,026,957			24,457,052
Loans
Construction		0			820,888
Real estate		47,076,433			37,794,240
Commercial		9,203,494			10,607,103
Installment		784,469			543,937
Gross loans		57,064,396			49,766,168
Unearned fees and discounts		(33,163	)		(77,542	)
Loans net of unearned fees and discount		57,031,233			49,688,626
Allowance for loan losses		(846,492	)		(702,409	)
Net loans		56,184,741			48,986,217
Accrued interest receivable		327,236			313,428
Restricted stock		677,650			677,650
Fixed assets, net		1,904,306			1,980,476
Other real estate		426,081			653,131
Prepaid & other assets		2,313,372			2,447,295
Total assets	$	94,259,365		$	83,393,146
LIABILITIES:
Deposits
Non-interest bearing	$	35,084,544		$	32,600,750
Interest Bearing
NOW and money market		30,977,628			28,434,407
Savings		1,117,301			1,064,668
Time deposits less than $100,000		4,719,729			3,842,310
Time deposits of $100,000 or greater		12,117,871			5,055,617
Total deposits		84,017,073			70,997,752
Accrued interest payable		123,166			56,061
Borrowings from Federal Home Loan Bank		0			2,400,000
Accrued expenses & other payables		695,767			665,580
Subordinated debentures		3,093,000			3,093,000
Total liabilities		87,929,006			77,212,393
STOCKHOLDERS' EQUITY
Common stock, authorized 10,000,000 shares with no par value, issued
and outstanding 701,311 shares and 708,420 shares at June 30, 2009
and December 31, 2008, respectively.		2,532,414			2,617,542
Retained earnings		3,727,034			3,534,236
Accumulated other comprehensive income		70,911			28,975
Total equity		6,330,359			6,180,753
Total liabilities & stockholders' equity	$	94,259,365		$	83,393,146

CHINO COMMERCIAL BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
		For the three months ended					For six months ended
		June 30,					June 30,
		2009			2008		2009		2008
Interest income
Investment securities and due from banks	$	204,323		$	112,298	$	421,605	$	238,098
Interest on Federal funds sold		22			5,987		56		30,978
Interest and fee income on loans		972,656			999,910		1,864,013		1,984,365
Total interest income		1,177,001			1,118,195		2,285,674		2,253,441
Interest expense
Deposits		231,387			165,867		466,395		365,482
Interest on Federal funds purchased		2			889		115		973
Interest on FHLB borrowings		316			0		606		0
Other borrowings		50,963			50,963		101,925		101,925
Total interest expense		282,668			217,719		569,041		468,380
Net interest income		894,333			900,476		1,716,633		1,785,061
Provision for loan losses		127,730			43,773		143,881		278,404
Net interest income after
provision for loan losses		766,603			856,703		1,572,752		1,506,657
Non-interest income
Service charges on deposit accounts		243,876			252,265		456,837		484,823
Other miscellaneous income		(2,547	)		9,246		7,054		17,719
Dividend income from restricted stock		(5,346	)		18,238		2,815		26,483
Income from bank-owned life insurance		16,725			15,607		33,455		30,719
Total non-interest income		252,708			295,356		500,161		559,744
General and administrative expenses
Salaries and employee benefits		443,780			499,499		932,475		977,291
Occupancy and equipment		78,672			82,578		156,283		166,359
Data and item processing		68,285			82,390		141,766		165,066
Advertising and marketing		17,919			12,786		33,792		40,615
Legal and professional fees		45,121			50,309		90,186		95,621
Regulatory Assessments		90,694			20,817		118,723		41,298
Insurance		7,660			7,768		15,444		15,996
Directors' fees and expenses		17,451			19,125		35,658		38,301
Other expenses		144,485			147,277		260,316		244,751
Total general & administrative expenses		914,067			922,549		1,784,643		1,785,298
Income before income tax expense		105,244			229,510		288,270		281,103
Income tax expense		31,715			83,105		95,472		93,227
Net income	$	73,529		$	146,405	$	192,798	$	187,876
Basic earnings per share	$	0.10		$	0.21	$	0.27	$	0.27
Diluted earnings per share	$	0.10		$	0.19	$	0.26	$	0.25

CHINO COMMERCIAL BANCORP
Other Financial Information

CREDIT QUALITY		End of period
(unaudited		June 30, 2009			December 31, 2008
Non-performing loans	$	-		$	412,343
Non-performing loans to total loans		n/a			0.83	%
Non-performing loans to total assets		n/a			0.49	%
Allowance for loan losses to loans		1.48	%		1.41	%
OTHER PERIOD-END STATISTICS
(unaudited		June 30, 2009			December 31, 2008
Shareholders equity to total assets		6.72	%		7.41	%
Loans to deposits		67.92	%		70.10	%
Non-interest bearing deposits to total deposits		41.76	%		45.92	%

		For the three months ended						For the sixmonths ended
		June 30						June 30
		2009			2008			2009			2008
KEYFINANCIAL RATIOS
(unaudited)
Return on average equity		4.76	%		10.07	%		6.22	%		6.42	%
Return on average assets		0.32	%		0.80	%		0.44	%		0.50	%
Net interest margin		4.39	%		5.54	%		4.42	%		5.41	%
efficiency ratio		89.67	%		80.08	%		86.09	%		86.40	%
Net chargeoffs to average loans		n/a			0.74	%		n/a			0.62	%
AVERAGE BALANCES
(thousands, unaudited)
Average assets	$	91,270		$	73,541		$	87,733		$	74,516
Average interest-earning assets	$	81,633		$	65,411		$	78,324		$	66,347
Average gross loans	$	53,188		$	54,224		$	51,086		$	53,775
Average deposits	$	80,250		$	63,859		$	76,817		$	64,837
Average equity	$	6,175		$	5,841		$	6,201		$	5,852