Chino Commercial Bank, N.A. Reports Results For the 3rd Quarter of 2001

Chino, California, UNITED STATES


CHINO, Calif., Oct. 22, 2001 (PRIMEZONE) -- Chino Commercial Bank, N.A. (OTCBB:CKNA) reported growth during the third quarter of 20.6% and year-to-date growth of 107.4%. Dann H. Bowman, President and Chief Executive Officer stated, "The growth of the Bank continues to exceed our expectations, both in terms of total deposits, as well as the composition of those deposits." The Bank's deposits totaled $22.1 million at quarter end, of which 72% were non-interest bearing. The Bank's assets totaled $28.2 million at September 30, 2001; loans receivable totaled $8.9 million and investments and Fed funds totaled $18.4 million.

The Bank reported a net loss for the third quarter of $36,449 or ($.07) per share as compared to a net loss of $52,429 or ($.10) per share for the second quarter and a year-to-date loss of $174,117 or ($.32) per share. Mr. Bowman stated, "The effect of nine interest rate reductions, totaling 400 basis points over the last nine months, has had the effect of compressing the Bank's net interest margin, and significantly reducing earnings. Although the Bank's growth is very strong, the impact of economic conditions has affected the Bank's revenues and made it more difficult to maintain profitability on a month-to-month basis."

The Bank posted net interest income of $345,999 for the three months ended September 30, 2001 as compared to $306,227 for the three months ended June 30, 2001. Average interest-earning assets were $22.0 million with average interest-bearing liabilities of $6.3 million yielding a net interest margin of 6.29% for the third quarter of 2001, as compared to average interest-bearing assets of $20.9 million with average interest-bearing liabilities of $6.1 million yielding a net interest margin of 5.85% for the second quarter of 2001.

General and administrative expenses were $385,849 for the three months ended September 30, 2001 as compared to $359,335 for the three months ended June 30, 2001. The largest component of general and administrative expenses was salary and benefits expense of $183,225 for the third quarter of 2001 as compared to $169,623 for the second quarter of 2001. Staff increased from 11 employees to 13 employees, creating the increase in salary and benefit expense.

Forward-Looking Statements

The statements contained in this release that are not historical facts are forward-looking statements based upon management's current expectations and beliefs concerning future developments and their potential effect on Chino Commercial Bank. There can be no assurances that future developments affecting Chino Commercial Bank will be the same as those anticipated by management.

Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties. These include, but are not limited to, the following risks: (1)changes in performance of the financial markets; (2)changes in the demand for and market acceptance of Chino Commercial Bank's products and services; (3)changes in general economic conditions including interest rates, presence of competitors with greater financial resources, and the impact of competitive products and pricing; (4)the effect of Chino Commercial Bank's policies; (5)the continued availability of adequate funding sources.


                     CHINO COMMERCIAL BANK
                     STATEMENT OF OPERATIONS
                            (Unaudited)
 
                                For the      For the       For the
                             three months   nine months  nine months
                                ending        ending        ending
                            September 30,  September 30, September 30,
                                 2001          2000          2001
                              -----------   -----------   -----------
 Interest Income
  Interest Income - Securities $  163,783   $     2,282   $   512,748
  Interest Income - Fed Funds      21,743        29,256       152,922
  Interest and
   fee income on Loans            215,181         1,292       401,839
                              -----------   -----------   -----------
    Total Interest Income         400,707        32,830     1,067,509
                              -----------   -----------   -----------
 Interest Expense
  Interest Expense - Deposits      40,596         1,562       141,446
  Interest Expense - Borrowings    14,112          --          26,668
                              -----------   -----------   -----------
    Total Interest Expense         54,708         1,562       168,114
                              -----------   -----------   -----------
    Total net interest income     345,999        31,268       899,395
                              -----------   -----------   -----------
 Provision for loan losses         23,920         1,500        75,550
                              -----------   -----------   -----------
    Total net interest income
     after provision for
     loan losses                  322,079        29,768       823,845
                              -----------   -----------   -----------
 Non-interest income
  Service Charges on
   Deposit Accounts                26,618            49        45,301
  Other miscellaneous
   fee income                         703           160         1,433
  Gain on the
   Sale of Securities                --            --          27,141
  Other income                       --            --              77
                              -----------   -----------   -----------
    Total Non-interest income      27,321           209        73,952
                              -----------   -----------   -----------
 General &
 Administrative Expenses
  Salaries & Benefits             183,225        44,519       512,241
  Occupancy & Equipment            59,557        14,448       168,553
  Data & Item Processing           36,957         5,316        88,743
  Advertising & Marketing          12,687         2,574        38,169
  Audit & Professional fees        23,934         4,751        67,492
  Insurance                         2,730          --           7,860
  Other expenses                   66,759        12,872       188,856
  Stock Selling expenses             --          93,114          --
                              -----------   -----------   -----------
    Total general &
     administrative expense       385,849       177,594     1,071,914
                              -----------   -----------   -----------
 
 Income tax expense (benefit)        --            --            --
                              ===========   ===========   ===========
    Total income (loss)       $   (36,449)  $  (147,617)  $  (174,117)
                              ===========   ===========   ===========
 Basic loss per share         $     (0.07)                $     (0.32)
                              ===========                 ===========
 Diluted loss per share       $     (0.07)                $     (0.31)
                              ===========                 ===========
 
 
                       CHINO COMMERCIAL BANK
                 STATEMENT OF FINANCIAL CONDITION
 
                                        September 30,   December 31,
                                            2001            2000
                                        ------------    ------------
                                        (unaudited)      (audited)
 ASSETS:
  Cash and Due from Banks               $  4,417,176       1,162,083
  Federal Funds Sold                       3,180,000       8,790,000
                                        ------------    ------------
   Cash and Cash equivalents               7,597,176       9,952,083
 Investments                              10,800,500       1,119,409
 Federal Reserve Bank stock, at cost         143,800         159,100
 Federal Home Loan Bank stock, at cost        62,500             500
 Pacific Coast Bankers' 
  Bank stock, at cost                         50,000          50,000
 Loans
  Construction                               901,310          93,459
  Real estate                              4,198,215         602,494
  Commercial                               3,524,917         897,367
  Installment                                315,716          76,136
  Unearned fees and discounts                 24,739            --
  Allowance for loan losses                  (92,250)        (16,700)
                                        ------------    ------------
    Total Loans                            8,872,647       1,652,756
                                        ------------    ------------
 Fixed Assets, net                           543,620         588,549
 Accrued Interest Receivable                  93,381          29,784
 Prepaid & Other Assets                       59,286          52,646
                                        ============    ============
    Total Assets                        $ 28,222,910      13,604,827
                                        ============    ============
 LIABILITIES:
 Deposits
  Non-interest Bearing                  $ 15,828,750       5,617,940
  Interest Bearing
   Money market                            4,761,095       2,471,755
   Savings                                   245,577         148,105
   Time deposits of $100,000 or
    greater, due in one year                 565,844         200,000
   Time deposits less than
    $100,000, due in one year                702,806         239,146
                                        ------------    ------------
    Total Deposits                        22,104,072       8,676,946
                                        ------------    ------------
 Federal Home Loan Bank Advance            1,250,000            --
 Accrued Interest Payable                     40,289           4,600
 Accrued Expenses & Other Payables            78,421          56,709
                                        ------------    ------------
    Total Liabilities                     23,472,782       8,738,255
                                        ------------    ------------
 STOCKHOLDERS' EQUITY
  Common Stock, authorized 10,000,000
   shares with a par value of $5 per
   share; issued and outstanding
   545,646 and 543,982 at September 30,
   2001 and December 31, 2000,
   respectively                            2,728,230       2,719,910
  Additional paid-in capital               2,590,893       2,582,573
  Accumulated deficit                       (617,493)       (443,376)
  Accumlated other comprehensive income       48,498           7,465
                                        ------------    ------------
    Total Equity                           4,750,128       4,866,572
                                        ------------    ------------
    Total Liabilities & Equity          $ 28,222,910      13,604,827
                                        ============    ============


        

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