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Private Bancorp of America, Inc. Announces Strong Quarterly Growth

LA JOLLA, Calif., Oct. 14, 2016 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQB:PBAM) (“Bancorp”), parent company of San Diego Private Bank (“Bank”), announced quarterly earnings of $1,076,000 in the third quarter of 2016, compared to $759,000 in the second quarter 2016 and $1,359,000 for the third quarter 2015. Net Interest Income continues to increase, $4,792,000 for the three months ended September 30, 2016 from $4,738,000 for the same period in 2015. Interest Income grew to $15,542,000 for the nine months ending September 2016 compared to $15,009,000 for the same period in 2015, reflecting the growth in earning assets. The three major factors contributing to the increase in year-over-year expenses for the nine months are:

  • Increased cost associated with new holding company $366,000
  • Increased loan loss reserves related to loan growth $402,000
  • Investments in technology, compliance and new products $600,000

The decrease in Other Income reflects a reduction of SBA Loan sales in the nine months ended September 30, 2016.

The Balance sheet reflects record organic growth. Total Assets at September 30, 2016 were $498 million compared to $438 million at September 30, 2015 (13.6% increase) and $454 million at December 31, 2015 (9.7% increase for the nine months). Net Loans increased 18% in the year ended September 30, 2016 to $391 million and increased 10% for the nine months from December 31, 2015. Total Deposits increased during the quarter to $375 million at September 30, 2016, up over 14% from September 30, 2015 and 9.5% from December 31, 2015. The new Treasury Management products and enhanced deposit gathering team have helped drive deposits up, keeping pace with loan growth.

“We are very proud of our employees who have turned the investments we made in the first half of 2016 into effective tools for our customers. We believe that the enhanced platform, compliance and product investments we have made will continue to serve our customers and our shareholders well,” said Thomas V. Wornham, President and CEO. “New loan originations are up 55% for the first nine months of 2016 over the same period in 2015. We continue to remain committed to our traditional business lines while expanding our C&I portfolio which is up 22% year to date. Our credit quality remains strong as do all of our key leverage, capital and asset quality ratios.”

Bancorp Chairman Selwyn Isakow commented, “We are very pleased with the growth of the Bank and the positive revenue trends we see in the Bancorp. This quarter we will celebrate the tenth anniversary of our formation. Our Directors, Management and Employees remain committed to providing creative solutions for our clients while providing superior service to the individuals, families and companies we serve.”

About Private Bancorp of America, Inc.

Private Bancorp of America, Inc. (OTCQB:PBAM), is the holding company for San Diego Private Bank. San Diego Private Bank, provides a Distinctly Different banking experience through unparalleled service and creative funding solutions to high net worth individuals, professionals, locally owned businesses and real estate entrepreneurs; serviced through offices in Coronado, San Diego, La Jolla and Newport Beach as well as efficient electronic banking offerings. The Bank also offers various portfolio and government guaranteed lending programs, including SBA and cross-border Export-Import Bank programs. San Diego Private Bank is a SBA Preferred Lender.

Safe Harbor Paragraph

This press release may include forward-looking statements that involve inherent risks and uncertainties. Private Bancorp of America, Inc. cautions readers that a number of important factors could cause actual results to differ materially from those in the forwardlooking statements. These factors include economic conditions and competition in the geographic and business areas in which Private Bancorp of America, Inc. operates, our ability to successfully integrate the operations of merged banks, inflation, fluctuations in interest rates, legislation and governmental regulation. You should not place undue reliance on forwardlooking statements and we undertake no obligation to update those statements whether as a result of changes in underlying factors, new information, future events or otherwise.

[FINANCIAL TABLES FOLLOW]

Private Bancorp of America, Inc. and Subsidiary
Statements of Condition
(Unaudited – in thousands)
September 30, 2016 December 31, 2015 September 30, 2015
Assets
Cash and Cash Equivalents$66,545 $58,075 $71,503
Investments 28,839 29,385 24,058
Loans, Net 391,277 354,708 330,254
Premises, Equipment and Other Assets 11,387 12,787 12,478
Total Assets 498,048 454,955 438,293
Liabilities and Shareholders’ Equity
Demand Deposits 111,244 110,976 113,036
Interest Bearing Deposits 264,230 228,855 213,966
Total Deposits 375,474 339,831 327,002
FHLB Advances / Borrowings 62,879 60,369 52,500
Other Liabilities 2,495 3,603 2,623
Shareholders’ Equity 57,200 51,152 56,168
Total Liabilities and Shareholders’ Equity$498,048 $ 454,955 $ 438,293
Selected Ratios:September 30, 2016 December 31, 2015 September 30, 2015
Tangible Book Value Per Share$13.84 $13.19 $13.23
Tier 1 Leverage Ratio (Bank) 12.02% 11.85% 11.84%
Total Capital Ratio (Bank) 14.65% 15.48% 16.28%
Asset Quality
(Non-Performing Assets + 90
Days Past Due Accruing)
divided by (Equity + Allowance
for Loan Losses)
0.30% 0.37% 0.76%


Private Bancorp of America, Inc. and Subsidiary
Statements of Income
(Unaudited – in thousands)
Three months
ended
Sept 30, 2016
Three months
ended
Sept 30, 2015
Nine months
ended
Sept 30, 2016
Nine months
ended
Sept 30, 2015
Interest Income
Interest Income$5,318 $5,101 $15,542 $15,009
Interest Expense 526 363 1,515 1,115
Net Interest Income 4,792 4,738 14,026 13,894
Provision for Loan Losses 63 2 478 76
Net Interest Income after Provision for Loan Losses 4,729 4,736 13,548 13,818
Other Income 196 366 741 1,148
Operating Expenses 3,092 2.797 9,261 8,553
Operating Income 1,831 2,305 5,029 6,413
Income Taxes 755 946 2,075 2,648
Net Earnings$1,076 $1,359 $2,954 $3,765
Selected Ratios:
Earnings Per Share$0.26 $0.33 $0.75 $0.91
Diluted Earnings Per Share$0.25 $0.32 $0.73 $0.89


Investor Relations Contact Thomas V. Wornham President/CEO Private Bancorp of America, Inc. and San Diego Private Bank (858) 875.6900

Source:Private Bancorp of America, Inc.