×

Private Bancorp of America, Inc. Reports Continued Strong Year Over Year Growth

LA JOLLA, Calif., July 24, 2017 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM)

Private Bancorp of America, Inc. (the “Company” or “PBAM”), the holding company for San Diego Private Bank (the “Bank” or “SDPB”), announced financial results for the three and six months ended June 30, 2017.

Total assets at June 30, 2017 were a record $564,901,000, up 17% over total assets June 30, 2016. Net loans at June 30, 2017 were also up 17% over the same date a year ago. Total deposits grew 13% during the same comparative period. “We are pleased with the double digit growth year over year in all areas of our business and it is very rewarding to see the investments we made in 2016 paying off,” said Thomas V. Wornham, President and CEO. “We saw our largest growth in Commercial loans, up 28% for the quarter, and the deposit mix continues to reflect the investments we’ve made in technology and new treasury management products.”

PBAM recognized record net interest income of $10,683,000 for the first six months of 2017. This 15% increase over the first half of 2016 reflects both the increase in loan volume and solid interest margin maintenance. Pre-tax income was $4,052,000 for the first six months of 2017, an increase of 26% over $3,197,000 for the same period in 2016.

The Bank began staffing its new office in Beverly Hills in the second quarter. “We are very excited about being able to expand our footprint further up the coastal Southern California market place. Our customer centric, solution based business model is being very well received in West Los Angeles,” said Selwyn Isakow, Chairman of PBAM.

As previously reported, PBAM completed a private placement capital raise in April 2017. The proceeds are being used to help fund the Los Angeles expansion as well as the continued organic growth of the Bank. The Bank’s Orange County location also relocated to new offices in Newport Beach in May 2017.

Wornham commented that the improved EPS and ROE are somewhat muted by the additional shares issued in the capital raise. He noted the efficiency ratio reflects the startup costs associated with Beverly Hills and the Newport move.

All Capital and leverage ratios remain very strong as does the Bank’s credit quality, as reflected by the Texas ratio of 0.16% at June 30, 2017. PBAM’s Tangible book value per share increased to $15.58 at June 30, 2017.

About Private Bancorp of America, Inc.

Private Bancorp of America, Inc. (OTCQX: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.

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

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.

For the three months ended June 30, 2017 June 30, 2017
Q-o-Q Y-o-Y
SELECT FINANCIAL DATA AND PERFORMANCE RATIOS June 30,
2017
March 31,
2017
June 30,
2016
change ($)change (%) change ($)change (%)
(unaudited)
Common shares outstanding at period-end 4,989,211 4,169,450 4,082,381 819,761 20% 906,830 22%
Book value per common share $ 15.70 $ 14.56 $ 13.73 $ 1.14 8% $ 1.97 14%
Tangible book value per common share $ 15.58 $ 14.24 $ 13.55 $ 1.34 9% $ 2.03 15%
PERFORMANCE RATIOS (%):
Return on average assets (annualized) 0.76% 1.00% 0.66% -0.24%-24% 0.10%15%
Return on average equity (annualized) 5.66% 8.99% 5.59% -3.33%-37% 0.06%1%
Return on average tangible common equity (annualized) 6.14% 9.14% 5.74% -3.00%-33% 0.40%7%
Net interest margin 4.20% 4.06% 4.18% 0.13%3% 0.02%0%
Net interest spread 4.14% 4.02% 4.14% 0.12%3% 0.01%0%
Efficiency ratio 65.64% 59.05% 65.49% 6.59%11% 0.16%0%
Noninterest expense / average assets 2.74% 2.46% 2.75% 0.29%12% -0.01%0%
CAPITAL RATIOS (%):
Tier 1 leverage ratio 14.89% 11.27% 12.32% 3.62%32% 2.57%21%
Tier 1 risk-based capital ratio 16.81% 13.99% 13.49% 2.82%20% 3.32%25%
Common equity Tier 1 ratio 16.81% 13.99% 13.49% 2.82%20% 3.32%25%
Total risk-based capital ratio 17.73% 14.94% 14.39% 2.79%19% 3.34%23%
Tangible equity / tangible assets 13.77% 11.05% 11.50% 2.72%25% 2.27%20%
June 30, 2017 June 30, 2017
Quarter ended: Q-o-Q Y-o-Y
CREDIT QUALITY PROFILE AND METRICS: June 30,
2017
March 31,
2017
June 30,
2017
change ($)change (%) change ($)change (%)
Total Loans ($000s) 453,207 421,410 387,268 31,797 8% 65,939 17%
30-89 day past due loans ($000s) 1,530 1,601 865 (71)-4% 665 77%
90+ day past due loans ($000s) - - - - NM - NM
Nonaccrual loans ($000s) 139 137 196 2 1% (57)-29%
NPAs / Assets (%) 0.02% 0.03% 0.04% (0)-3% (0)-40%
NPLs / loans & REO (%) 0.03% 0.03% 0.05% (0)-6% (0)-39%
Net chargeoffs ($000s) 0 0 0 - NM - NM
NCOs / avg loans (annualized) (%) 0 0 0 - NM - NM
Reserve ratio (%) 0.93% 0.95% 0.93% -0.03%-3% 0.00%0%
Reserve coverage ratio (%) 3024% 2933% 1835% 92%3% 1189%65%
June 30, 2017 June 30, 2017
Quarter ended: Q-o-Q Y-o-Y
LOAN PORTFOLIO COMPOSITION ($000s) June 30,
2017
March 31,
2017
June 30,
2017
change ($)change (%) change ($)change (%)
Real estate - investor owned 183,936 171,221 138,329 12,715 7% 45,607 33%
Real estate - owner occupied 48,086 47,229 48,195 857 2% (109)0%
Real estate - multifamily 49,518 48,423 47,133 1,095 2% 2,385 5%
Real estate - single family 54,559 52,704 52,415 1,855 4% 2,144 4%
Commercial business 89,739 69,965 66,543 19,774 28% 23,196 35%
Land and construction 25,461 29,957 33,389 (4,496)-15% (7,928)-24%
Consumer 258 139 252 119 86% 6 2%
Leases - - - - NM - NM
Other - - - - NM - NM
Total loans held for investment 451,557 419,638 386,256 31,919 8% 65,301 17%
Loans held for sale 1,650 1,772 1,012 (122)-7% 638 63%
Total loans, including loans held for sale 453,207 421,410 387,268 31,797 8% 65,939 17%
Allowance for loan losses (4,204) (4,018) (3,597) (186)5% (607)17%
Net loans 449,003 417,392 383,671 31,611 8% 65,332 17%
DEPOSIT COMPOSITION ($000S)
Non interest bearing DDA 120,197 126,486 105,115 (6,289)-5% 15,082 14%
Interest bearing DDA 14,616 14,772 13,090 (156)-1% 1,526 12%
Savings & MMA 193,396 193,965 156,806 (569)0% 36,590 23%
Retail CD 5,703 6,216 6,348 (513)-8% (645)-10%
Jumbo CD 57,424 74,866 65,150 (17,442)-23% (7,726)-12%
Total deposits 391,336 416,305 346,509 (24,969)-6% 44,827 13%

June 30, 2017 June 30, 2017
Q-o-Q Y-o-Y
BALANCE SHEETJune 30,
2017
March 31,
2017
June 30,
2017
change ($)change (%) change ($)change (%)
(unaudited - in $000s)
Assets
Cash and due from banks 12,179 38,273 28,490 (26,094)-68% (16,311)-57%
Interest-bearing deposits at Federal Reserve Bank 57,189 40,419 27,112 16,770 41% 30,077 111%
69,368 78,692 55,602 (9,324)-12% 13,766 25%
Interest-bearing time deposits with other institutions 2,997 1,245 996 1,752 141% 2,001 201%
Investment securities available for sale 31,693 29,058 29,774 2,635 9% 1,919 6%
Investment securities held to maturity - - -
Loans 453,207 421,410 387,268 31,797 8% 65,939 17%
Allowance for loan losses (4,204) (4,018) (3,597) (186)5% (607)17%
449,003 417,392 383,671 31,611 8% 65,332 17%
Federal Home Loan Bank stock, at cost 2,295 2,135 2,135 160 7% 160 7%
Premises and equipment, net 1,187 980 927 207 21% 260 28%
Goodwill - - -
Other intangible assets 609 665 744 (56)-8% (135)-18%
Deferred tax asset/liability 5,532 5,632 5,436 (100)-2% 96 2%
Accrued interest receivable 1,376 1,273 1,227 103 8% 149 12%
Other assets 841 869 1,204 (28)-3% (363)-30%
564,901 537,941 481,716 26,960 5% 83,185 17%
Liabilities and Shareholders' Equity
Liabilities
120,197 126,486 105,115 (6,289)-5% 15,082 14%
271,139 289,818 241,000 (18,679)-6% 30,139 13%
Total Deposits 391,336 416,304 346,115 (24,968)-6% 45,221 13%
FHLB Borrowings 85,000 50,000 70,000 35,000 70% 15,000 21%
Other borrowings 7,889 7,886 7,876 3 0% 13 0%
Accrued interest payable and other liabilities 2,339 3,047 1,685 (708)-23% 654 39%
486,564 477,237 425,676 9,327 2% 60,888 14%
Shareholders' equity
Common stock 57,426 41,065 39,812 16,361 40% 17,614 44%
Additional paid-in capital 2,543 2,445 2,531 98 4% 12 0%
Retained earnings 18,184 17,160 13,370 1,024 6% 4,814 36%
Accumulated other comprehensive income 184 34 327 150 441% (143)-44%
78,337 60,704 56,040 17,633 29% 22,297 40%
Total liabilities and shareholders' equity 564,901 537,941 481,716 26,960 5% 83,185 17%

June 30, 2017 June 30, 2017
For the three months ended Q-o-Q Y-o-Y
INCOME STATEMENT June 30,
2017
March 31,
2017
June 30,
2016
change ($)change (%) change ($)change (%)
(unaudited - in $000s, except per share data)
Interest Income
Loans 5,697 5,501 4,855 196 4% 842 17%
Investment securities 186 188 191 (2)-1% (5)-3%
Deposits in other financial institutions 138 119 60 19 16% 78 130%
6,021 5,808 5,106 213 4% 915 18%
Interest Expense
Deposits 340 375 316 (35)-9% 24 8%
Borrowings 223 209 185 14 7% 38 21%
563 584 501 (21)-4% 62 12%
Net interest income 5,458 5,224 4,605 234 4% 853 19%
Provision for credit losses 186 - 364 186 NM (178)-49%
Net interest income after provision for credit losses 5,272 5,224 4,241 48 1% 1,031 24%
Noninterest income:
Service charges on deposit accounts 82 96 76 (14)-15% 6 8%
Net gain on sale of loans & leases 91 146 31 (55)-38% 60 194%
Gain (loss) on sale of investment securities 8 - - 8 NM 8 NM
Other noninterest income (4) 153 89 (157)-103% (93)-104%
177 395 196 (218)-55% (19)-10%
Noninterest expense:
Salary and employee benefits 2,318 2,226 2,065 92 4% 253 12%
Occupany and equipment 393 318 291 75 24% 102 35%
Data processing 265 289 303 (24)-8% (38)-13%
Professional services 314 168 157 146 87% 157 100%
Other expenses 409 317 328 92 29% 81 25%
3,699 3,318 3,144 381 11% 555 18%
Income before provision for income tax 1,750 2,301 1,293 (551)-24% 457 35%
Provision for income tax 725 955 534 (230)-24% 191 36%
Net income available to common shareholders 1,025 1,346 759 (321)-24% 266 35%
Earnings per share
Basic earnings per share $ 0.23 $ 0.33 $ 0.19 $ (0.09)-29% $ 0.04 20%
Diluted earnings per share $ 0.23 $ 0.32 $ 0.18 $ (0.10)-30% $ 0.05 28%
Average shares outstanding 4,413,085 4,112,967 3,916,623 300,118 7% 496,462 13%
Diluted average shares outstanding 4,545,771 4,187,627 4,301,221 358,144 9% 244,550 6%

For the three months ended For the three months ended For the three months ended
June 30, 2017 March 31, 2017 June 30, 2016
Average Average Average Average Average Average
RATE AND YIELD TABLE Balance Interest Yield/Rate Balance Interest Yield/Rate Balance Interest Yield/Rate
(unaudited - in $000s)
Interest-Earnings Assets:
Deposits in other financial institutions 58122 138 0.95% 61,198 119 0.79% 51,304 60 0.47%
Investment securities 31932 186 2.34% 30,340 188 2.51% 32,046 190 2.38%
Loans 431644 5697 5.29% 429,768 5,501 5.19% 358,338 4,855 5.43%
Total interest-earning assets 521698 6021 4.63% 521,306 5,808 4.52% 441,688 5,106 4.64%
Noninterest-earning assets 19251 20,725 17,108
Total Assets 540949 542,031 458,796
Interest-Bearing Liabilities
Interest-bearing transaction accounts 15170 7 0.19% 13,490 7 0.21% 11,718 6 0.21%
Money market 189070 198 0.42% 183,483 192 0.42% 151,271 157 0.42%
Savings deposits 5673 3 0.21% 5,734 3 0.21% 5,048 3 0.24%
Certificates of deposit 63612 132 0.83% 89,355 173 0.79% 67,024 151 0.90%
Total Interest-Bearing Deposits 273525 340 0.50% 292,062 375 0.52% 235,061 317 0.54%
FHLB advances 50385 120 0.96% 50,400 107 0.86% 51,808 81 0.63%
Other borrowings 7886 103 5.24% 7,885 102 5.25% 7,871 104 5.30%
Total Interest-Bearing Liabilities 58271 223 1.53% 58,285 209 1.45% 59,679 185 1.24%
Noninterest-bearing deposits 134087 129,043 107,379
Total Funding Sources 465883 563 0.48% 479,390 584 0.49% 402,119 502 0.50%
Noninterest-bearing liabilities 2385 2,556 2,246
Shareholders' equity 72681 60,085 54,431
Total Liabilities and Shareholders' Equity 540949 542,031 458,796
Net interest spread 4.14% 4.02% 4.14%
Net interest income 5458 4.20% 5,224 4.06% 4,604 4.18%
Net interest margin

Source:Private Bancorp of America, Inc.

More From Press Releases