Chino Commercial Bank, N.A. Posts 61.5% Increase in Pre-Tax Earnings.


CHINO, Calif., April 19, 2004 (PRIMEZONE) -- The Board of Directors of Chino Commercial Bank, N.A. (OTCBB:CKNA) announced the results of operations for the first quarter of 2004 with income before taxes for the quarter of $187,489, a 61.5% increase over pre-tax, net income of $116,097 for the same quarter last year. Net income for the three months ended March 31, 2004 was $117,755 or $0.22 per share, a 1.4% increase from net income of $116,097 or $0.21 per share for the three months ended March 31, 2003. Net income per fully diluted share was $0.20 and $0.21 for the quarters ending March 31, 2004 and 2003 respectively. Dann H. Bowman, President and Chief Executive Officer stated, "We are very pleased with the increase in quarterly earnings and the quality of the balance sheet as the Bank continues to grow."

Total assets increased by 41.2% to $64.0 million, as compared with total assets of $45.3 million at the end of the same quarter last year; and increased 9.3% or $5.4 million as compared to $58.6 million at December 31, 2003. Total Deposits increased 45.2% to $58.2 million at the end of the first quarter, as compared with $40.1 million at the end of the same quarter last year. Deposits also increased 9.7% during the first quarter as compared to $53.1 million at December 31, 2003. Total Loans increased 31.1% to $28.4 million at March 31, 2004 as compared to $21.7 million at March 31, 2003 and $27.2 million at December 31, 2003. To date, the Bank has had no delinquencies greater than 60 days, non-accrual or non-performing loans or other real estate owned.

The increased earnings for the quarter were primarily due to an increase in the net interest margin of $109,724. The Bank posted net interest income of $662,680 for the three months ended March 31, 2004 as compared to $565,426 for the same quarter last year. These increases in income were partially offset by an increase in general and administrative expenses of $47,980 resulting from an increase in salary and benefits expense offset by a decrease in the provision for loan losses of $38,000.

Average interest-earning assets were $52.8 million with average interest-bearing liabilities of $12.1million yielding a net interest margin of 4.74% for the first quarter of 2004 as compared to average interest-bearing assets of $40.5 million with average interest-bearing liabilities of $11.1 million yielding a net interest margin of 5.10% for the three months ended March 31, 2003.

General and administrative expenses were $569,077 for the three months ended March 31, 2004 as compared to $521,097 for the three months ended March 31, 2003. The largest component of general and administrative expenses was salary and benefits expense of $307,814 for the first quarter of 2004 as compared to $256,487 for the first quarter of 2003. Salary and benefits increased due to higher average full-time equivalent staff, salary increases, lower capitalized loan origination costs, accrued incentive compensation, temporary staffing expenses, and higher expenses relating to health insurance and workers' compensation for the first quarter of 2004 as compared to first quarter of 2003. Other expenses decreased by $20,781 for the comparable three-month period due to the recovery of $8,453 from an operating loss recorded in the fourth quarter of 2003 as well as cost reductions in various expense categories. Also increased were Audit and professional fees expenses, which increased $10,972, and Advertising and marketing expenses, which increased $3,508.

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 FINANCIAL CONDITION

                                      March 31,           December 31,
                                        2004                  2003
                                    -----------           ------------
                                     (unaudited)
 ASSETS:

 Cash and Due from Banks            $ 4,499,248             3,588,715
 Federal Funds Sold                  10,245,000             9,350,000
                                    -----------           ------------
    Cash and 
    Cash equivalents                 14,744,248            12,938,715

 Interest-bearing 
  deposits at banks                   2,388,000             2,388,000
 Investment Securities
  available for sale                  9,335,608             9,463,551

 Investment Securities 
  held to maturity 
   (fair value approximates
   $6,662,858 at March 31, 2004 
   and $5,378,920 at 
   December 31, 2003)                 6,541,704             5,327,521
 Federal Reserve Bank stock,
   at cost                              154,500               154,450
 Federal Home Loan Bank  
   stock, at cost                       169,650               168,100
 Pacific Coast Bankers' 
   Bank stock, at cost                   50,000                50,000
 Loans
     Loans held for sale                  --                  126,558
     Construction                     1,244,076               468,101
     Real estate                     21,643,917            19,639,383
     Commercial                       5,636,569             6,475,819
     Farm/Agriculture                   356,836               360,269
     Installment                         48,358               596,534
     Unearned fees and
        discounts                      (128,560)             (122,260)
     Allowance for 
        loan losses                    (351,828)             (351,828)
                                    -----------           ------------
   Total Loans                       28,449,368            27,192,576
                                    -----------           ------------
 Fixed Assets, net                      415,671               438,393

 Accrued Interest Receivable            191,555               189,574
 Prepaid & Other Assets               1,575,147               267,698
                                    -----------           ------------
           Total Assets           $  64,015,451            58,578,578
                                    ===========           ============

 LIABILITIES:

 Deposits

  Non-interest Bearing            $  45,846,675            40,769,746

  Interest Bearing

    Money market                      9,014,642             9,124,289
    Savings                             559,883               565,012
    Time deposits of 
     $100,000 or 
     greater, due in 
     one year                         1,202,514               897,603
    Time deposits less 
     than $100,000, 
     due in one year                  1,625,699             1,736,483

                                    -----------           ------------
       Total Deposits                58,249,413            53,093,133
                                    -----------           ------------


 Accrued Interest Payable                12,476                12,580

 Accrued Expenses & 
   Other Payables                       277,829               142,871

                                    -----------           ------------
      Total Liabilities              58,539,718            53,248,584
                                    -----------           ------------

 STOCKHOLDERS' EQUITY

  Common Stock, authorized 10,000,000 shares with a par value of $5
    per share; issued and outstanding 545,646 and 545,646
    at March 31, 2004 and 
    December 31, 2003,
    respectively.                     2,728,230             2,728,230

   Additional paid-in
    capital                           2,590,893             2,590,893
   Accumulated income                   149,019                31,264
   Accumlated other 
    comprehensive 
    income                                7,591               (20,393)
                                    -----------           ------------
    Total Equity                      5,475,733             5,329,994
                                    -----------           ------------
   Total Liabilities 
    & Equity                      $  64,015,451            58,578,578
                                    ===========           ============
 


                         CHINO COMMERCIAL BANK

                        STATEMENT OF OPERATIONS
                              (unaudited)

                                        For the three months ending
                                                 March 31,
                                        2004                   2003
                                     ----------             ----------
 Interest Income                       

   Interest Income - Securities       $ 145,610             $ 166,584
   Interest Income - Fed Funds           18,231                11,498

   Interest and fee 
    income on Loans                     498,839               387,344
                                    -----------             ----------
       Total Interest Income            662,680               565,426
                                    -----------             ----------

 Interest Expense

   Interest Expense - Deposits           36,997                49,467
   Interest Expense - Borrowings          -                       -
                                    -----------             ----------  
      Total Interest Expense             36,997                49,467
                                    -----------             ----------
      Total net interest income         625,683               515,959
                                    -----------             ----------

 Provision for loan losses                 -                   38,000
                                    -----------             ----------

     Total net interest income 
      after provision for 
      loan losses                       625,683               477,959
                                    -----------             ----------

 Non-interest income

    Service Charges on 
     Deposit Accounts                   103,266                71,224
    Other miscellaneous 
     fee income                           1,418                   732
    Income from Mortgage 
     Banking                             15,445                87,279
    Income from Bank Owned 
     Life Insurance                      10,754                     -
                                    -----------             ----------
      Total Non-interest income         130,883               159,235
                                    -----------             ----------

 General & Administrative Expenses

   Salaries & Benefits                  307,814               256,487
   Occupancy & Equipment                 58,532                61,212
   Data & Item Processing                46,671                43,647
   Advertising & Marketing               20,388                16,880
   Audit & Professional fees             43,141                32,169
   Insurance                              5,655                 4,173
   Directors' fees and expenses          15,508                14,380
   Other expenses                        71,368                92,149
                                    -----------             ----------
    Total general & 
      administrative expenses           569,077               521,097
                                    -----------             ----------

 Income before income tax expense       187,489               116,097
 Income tax expense                      69,734                -
                                    -----------             ----------
             Total income             $ 117,755             $ 116,097
                                    ===========             ==========
 Basic Earnings (loss) per share         $ 0.22                $ 0.21
                                    ===========             ==========
 Diluted Earnings (loss) per share       $ 0.20                $ 0.21
                                    ===========             ==========




                             CHINO COMMERCIAL BANK
                          Selected Financial Highlights


                                           For the three months
                                             ended March 31,
                                           --------------------
                                         2004                   2003
                                      ---------             ----------
 Selected Operating Data:

   Net interest income                $ 625,683             $ 477,959
   Provision for loan losses              -                    38,000
   Non-interest income                  130,883               159,235
   Non-interest expense                 569,077               521,097
   Net income                         $ 117,755             $ 116,097
 Share Data:
   Basic income per share                $ 0.22               $  0.21
   Diluted Income per share              $ 0.20               $  0.21
   Weighted average common 
     shares outstanding
        Basic                           545,646               545,646
        Diluted                         583,327               558,449

 Performance Ratios:
   Return on average assets                0.82%                 1.07%
   Return on average equity                8.64%                 9.25%
   Equity to total assets 
     at the end of the period              9.10%                11.09%
   Net interest spread                     3.79%                 3.79%
   Net interest margin                     4.74%                 5.10%
   Average interest-earning 
    assets to average-bearing
    liabilities                          434.48%               365.57%
   Core efficiency ratio                  75.17%                77.19%
   Non-interest expense to 
    average assets                         3.96%                 4.82%


 Selected Balance Sheet Data:        3/31/2004            12/31/2003
                                   ------------          ------------

   Total assets                    $ 64,015,451          $ 58,578,578
   Investment securities 
    held to maturity                  6,541,704             5,327,521
   Investment securities 
    available for sale                9,335,608             9,463,551
   Loan receivable, net              28,449,368            27,192,576
   Deposits                          58,249,413            53,093,133
   Non-interest bearing 
    deposits                         45,846,675            40,772,019
   Stockholders' equity            $  5,475,733          $  5,329,994

 Regulatory capital ratios:

   Average equity to 
    average assets                         9.48%                10.26%
   Leverage capital                        9.51%                 9.48%
   Tier I risk based                      15.58%                16.64%
   Risk-based capital                     16.58%                17.74%

 Asset Quality Ratios:
   Allowance for loan losses as
     a percent of gross loans 
     receivable                            1.22%                 1.27%
   Net charge-offs to average loans         -                   -0.16%
   Non-performing loans to total 
     loans                                  n/a                   n/a

 Number of full-service customer
      facilities                             1                      1


            

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