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Private Bancorp of America, Inc. Announces 20% Increase in Quarterly Earnings and Closing of $17 Million Private Placement of Common Stock

LA JOLLA, Calif., April 19, 2017 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQB:PBAM)

Private Bancorp of America, Inc. (the “Company”), parent company of San Diego Private Bank (the “Bank”), announced quarterly earnings of $1.346 million for the first quarter of 2017, a 20 percent increase over the same quarter in 2016. Net Interest Income continues to increase and was $5.224 million for the three months ended March 31, 2017 compared to $4.630 million for the same period of 2016. The year-over-year growth in Interest Income to $5.808 million for the three months ended March 2017 reflects the growth in earning assets.

The balance sheet reflects strong organic growth in all areas. Total assets at March 31, 2017 were $538 million vs. $447 million at March 31, 2016, a 20% increase. Net loans also increased 20% year over year to $417 million. Total deposits at March 31, 2017 were $416 million, up 26% over the same date of the prior year. The new Treasury Management Products (ONE) and enhanced Deposit Team continues to help drive continued demand deposits growth.

Credit quality remained strong; the Bank’s Texas Ratio at March 31, 2017 was 0.20%. Capital levels at the Bank also remained well above “well capitalized” levels.

“2017 has continued the positive trends established in the second half of 2016. We are very proud of our employees who continue to turn the investments we made in the first half of 2016 into profitable tools for our customers in 2017. We believe that the enhanced platform, compliance and product investments we have made will continue to serve our customers, the bank and our shareholders well,” said Thomas V. Wornham, President and CEO. “The 18% growth in EPS is another strong indicator of continued progress.”

Chairman Selwyn Isakow commented “We are very pleased with the performance and underlying trends of the Company. This quarter we received approval to expand our “Distinctly Different” business model to Beverly Hills, under the Los Angeles Private Bank flag. Our Directors, Management and Team Members remain committed to providing creative solutions and outstanding service to the individuals, families and companies we serve.”

The Company is also pleased to announce today, the completion of a private placement of $17 million of its common stock (the “Shares”) at $21.75 per share to certain institutional accredited investors and members of the Bank’s Board of Directors. After the payment of placement agent fees and other expenses, the transaction will result in approximately $16.3 million of net proceeds to the Company. The Company plans to use the net proceeds from the offering to support organic growth, potential future acquisitions, and general corporate purposes. Sandler O'Neill + Partners, L.P. served as the sole placement agent for the private placement.

The Shares have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any security and will not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful.

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. Clients are serviced by experienced personal bankers through offices in Coronado, San Diego, La Jolla, Beverly Hills 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 and provides a full array of sophisticated treasury management and deposit products.

Investor Relations Contact

Thomas V. Wornham
President/CEO
San Diego Private Bank
(858) 875.6900

This press release may include forward looking statements that involve inherent risks and uncertainties. San Diego Private Bank cautions readers that a number of important factors could cause actual results to differ materially from those in the forward‐looking statements. These factors include economic conditions and competition in the geographic and business areas in which San Diego Private Bank 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 forward‐looking 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)
March 31, 2017
December 31, 2016
March 31, 2016
Assets
Cash and Cash Equivalents$78,693$71,706$60,027
Investments 30,303 27,984 29,897
Loans, Net 417,392 434,277 345,985
Premises, Equipment and Other Assets 11,553 11,707 11,538
Total Assets 537,941 545,674 447,447
Liabilities and Shareholders’ Equity
Demand Deposits 126,486 122,023 96,540
Interest Bearing Deposits 289,818 286,662 234,069
Total Deposits 416,304 408,685 330,609
FHLB Advances / Borrowings 57,886 75,882 60,372
Other Liabilities 3,047 2,310 2,676
Shareholders’ Equity 60,704 58,797 53,790
Total Liabilities and
Shareholders’ Equity
$537,941
$
545,674
$
447,447


Selected Ratios: March 31, 2017 December 31, 2016 March 31, 2016
Tangible Book Value Per Share $14.24 $14.04 $13.42
Tier 1 Leverage Ratio 11.27% 11.47% 12.27%
Total Risk Based Capital Ratio 14.93% 13.66% 15.83%

Asset Quality
(Non-Performing Assets + 90
Days Past Due Accruing)
divided by (Equity + Allowance
for Loan Losses)


0.20
% 0.29% 0.32%


Private Bancorp of America, Inc. and Subsidiary
Statements of Income
(Unaudited – in thousands)
Three months
ended
March 31, 2017
Three months
ended
March 31, 2016
Interest Income$5,808$5,118
Interest Expense 584 488
Net Interest Income 5,224 4,630
Provision for Loan Losses 0 51
Net Interest Income after
Provision for Loan Losses
5,224 4,579
Other Income 395 349
Operating Expenses 3,317 3,024
Operating Income 2,302 1,904
Income Taxes 956 786
Net Earnings$1,346$1,118
Basic Earnings Per Share$0.33$0.29
Diluted Earnings Per Share $0.31$0.28




Source:Private Bancorp of America, Inc.