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Private Bancorp of America, Inc. Announces Continued Strong Growth

LA JOLLA, Calif., Oct. 18, 2017 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM)

Private Bancorp of America (“Bancorp”), parent company of San Diego Private Bank (“Bank”), announced quarterly earnings of $1,164,308 in the third quarter of 2017, compared to $1,024,774 in the second quarter 2017 and $1,076,420 for the third quarter 2016. Net Interest Income continues to increase, $5,742,000 for the three months ended September 30, 2017 from $4,792,000 for the same period in 2016. Net Interest Income grew to $16,425,000 for the nine months ending September 2017 compared to $14,027,000 for the same period in 2016 (up 17.1%), reflecting the growth in earning assets. The major factor contributing to the increase in year-over-year expenses for the nine months is the cost associated with opening the new Beverly Hills location, roughly $557,000 year to date. The decrease in Other Income reflects a reduction of SBA Loan sales in the nine months ended September 30, 2017.

The balance sheet reflects continued record organic growth. Total assets at September 30, 2017 were $590 million compared to $498 million at September 30, 2016 (18.6% increase year over year) and $545 million at December 31, 2016 (8.1% increase for the nine months). Net Loans increased 14% year over year at September 30, 2017 to $446 million, and increased 3% for the nine months from December 31, 2016. Total Deposits increased during the quarter to $448 million at September 30, 2017, up over 19%.

“We are very proud of team members who have worked diligently to both expand our product offerings in our traditional footprint and successfully open our new Beverly Hills location. We believe that the enhanced geographic 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. “Our Beverly Hills investment is already paying off; we opened in July and the team is producing outstanding results. Our credit quality remains strong as do all of our key leverage, capital and asset quality ratios.”

Bancorp Chairman Selwyn Isakow commented, “We are pleased with the growth of the Bank and the positive revenue trends we see in the Bancorp. We are delighted to have successfully opened Beverly Hills as a part of our Southern California Coastal strategy. 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. (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, Newport Beach and Beverly Hills 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.

[FINANCIAL TABLES FOLLOW]

For the three months ended September 30, 2017 September 30, 2017
Q-o-Q Y-o-Y
SELECT FINANCIAL DATA AND PERFORMANCE RATIOS September 30, 2017 June 30, 2017 September 30, 2016 change ($)change (%) change ($)change (%)
(unaudited)
Common shares outstanding at period-end 4,999,427 4,989,211 4,082,989 10,216 0% 916,438 22%
Book value per common share $ 15.94 $ 15.70 $ 14.01 $ 0.24 2% $ 1.94 14%
Tangible book value per common share $ 15.84 $ 15.58 $ 13.84 $ 0.26 2% $ 2.00 14%
PERFORMANCE RATIOS (%):
Return on average assets (annualized) 0.81% 0.76% 0.89% 0.05%6% -0.08%-9%
Return on average equity (annualized) 5.84% 5.66% 7.54% 0.19%3% -1.70%-22%
Return on average tangible common equity (annualized) 5.87% 6.14% 7.63% -0.28%-5% -1.76%-23%
Net interest margin 4.11% 4.20% 4.09% -0.09%-2% 0.02%1%
Net interest spread 4.05% 4.14% 4.04% -0.10%-2% 0.01%0%
Efficiency ratio 65.96% 65.64% 62.01% 0.32%0% 3.95%6%
Noninterest expense / average assets 2.68% 2.74% 2.55% -0.06%-2% 0.13%5%
CAPITAL RATIOS (%):
Tier 1 leverage ratio 14.31% 14.89% 11.23% -0.58%-4% 3.08%27%
Tier 1 risk-based capital ratio 17.08% 16.81% 12.83% 0.27%2% 4.25%33%
Common equity Tier 1 ratio 17.08% 16.81% 12.83% 0.27%2% 4.25%33%
Total risk-based capital ratio 18.00% 17.73% 13.73% 0.27%2% 4.27%31%
Tangible equity / tangible assets 13.43% 13.77% 11.36% -0.34%-2% 2.06%18%
September 30, 2017 September 30, 2017
Q-o-Q Y-o-Y
CREDIT QUALITY PROFILE AND METRICS: September 30, 2017 June 30, 2017 September 30, 2016 change ($)change (%) change ($)change (%)
Total Loans ($000s) 450,468 453,207 394,937 (2,739)-1% 55,531 14%
30-89 day past due loans ($000s) - 1,530 - (1,530)-100% - NM
90+ day past due loans ($000s) - - - - NM - NM
nonaccrual loans ($000s) 1,606 139 195 1,467 1055% 1,411 724%
NPAs / Assets (%) 0.27% 0.02% 0.04% 0 1005% 0 595%
NPLs / loans & REO (%) 0.36% 0.03% 0.05% 0 1073% 0 622%
Net chargeoffs ($000s) 0 0 0 - NM - NM
NCOs / avg loans (annualized) (%) 0% 0% 0% - NM - NM
Reserve ratio (%) 0.94% 0.93% 0.93% 0.01%1% 0.01%1%
Reserve coverage ratio (%) 263% 3024% 1877% -2762%-91% -1614%-86%
September 30, 2017 September 30, 2017
Q-o-Q Y-o-Y
LOAN PORTFOLIO COMPOSITION ($000s) September 30, 2017 June 30, 2017 September 30, 2016 change ($)change (%) change ($)change (%)
Real estate - investor owned 183,587 183,936 153,013 (349)0% 30,574 20%
Real estate - owner occupied 46,501 48,086 47,713 (1,585)-3% (1,212)-3%
Real estate - multifamily 52,595 49,518 43,953 3,077 6% 8,642 20%
Real estate - single family 51,225 54,559 53,235 (3,334)-6% (2,010)-4%
Commercial business 93,860 89,739 67,266 4,121 5% 26,594 40%
Land and construction 20,585 25,461 29,510 (4,876)-19% (8,925)-30%
Consumer 318 258 247 60 23% 71 29%
Leases - - - NM - NM
Other - - - NM - NM
Total loans held for investment 448,671 451,557 394,937 (2,886)-1% 53,734 14%
Loans held for sale 1,797 1,650 147 9% 1,797 NM
Total loans, including loans held for sale 450,468 453,207 394,937 (2,739)-1% 55,531 14%
Allowance for loan losses (4,221) (4,204) (3,660) (17)0% (561)15%
Net loans 446,247 449,003 391,277 (2,756)-1% 54,970 14%
DEPOSIT COMPOSITION ($000S)
Non interest bearing DDA 124,055 120,197 111,244 3,858 3% 12,811 12%
Interest bearing DDA 10,963 14,616 12,231 (3,653)-25% (1,268)-10%
Savings & MMA 258,235 193,396 171,943 64,839 34% 86,292 50%
Retail CD 6,793 5,703 5,480 1,090 19% 1,313 24%
Jumbo CD 48,064 57,424 74,577 (9,360)-16% (26,513)-36%
Total deposits 448,110 391,336 375,475 56,774 15% 72,635 19%


September 30, 2017 September 30, 2017
Q-o-Q Y-o-Y
BALANCE SHEETSeptember 30, 2017 June 30, 2017 September 30, 2016 change ($)change (%) change ($)change (%)
(unaudited - in $000s)
Assets
Cash and due from banks 13,363 12,179 19,427 1,184 10% (6,064)-31%
Interest-bearing deposits at Federal Reserve Bank 70,336 57,189 45,873 13,147 23% 24,463 53%
83,699 69,368 65,300 14,331 21% 18,399 28%
Interest-bearing time deposits with other institutions 2,997 2,997 1,245 - 0% 1,752 141%
Investment securities available for sale 45,512 31,693 28,839 13,819 44% 16,673 58%
Investment securities held to maturity - - -
Loans 450,468 453,207 394,937 (2,739)-1% 55,531 14%
Allowance for loan losses (4,221) (4,204) (3,660) (17)0% (561)15%
446,247 449,003 391,277 (2,756)-1% 54,970 14%
Federal Home Loan Bank stock, at cost 2,295 2,295 2,135 - 0% 160 7%
Premises and equipment, net 1,416 1,187 925 229 19% 491 53%
Goodwill - - -
Other intangible assets 503 609 681 (106)-17% (178)-26%
Deferred tax asset/liability 5,553 5,532 5,442 21 0% 111 2%
Accrued interest receivable 1,450 1,376 1,166 74 5% 284 24%
Other assets 800 841 1,038 (41)-5% (238)-23%
590,472 564,901 498,048 25,571 5% 92,424 19%
Liabilities and Shareholders' Equity
Liabilities
Noninterest Bearing 124,055 120,197 111,244 3,858 3% 12,811 12%
Interest Bearing 324,055 271,139 264,231 52,916 20% 59,824 23%
Total Deposits 448,110 391,336 375,475 56,774 15% 72,635 19%
FHLB Borrowings 50,000 85,000 55,000 (35,000)-41% (5,000)-9%
Other borrowings 7,892 7,889 7,879 3 0% 13 0%
Accrued interest payable and other liabilities 4,756 2,339 2,494 2,417 103% 2,262 91%
510,758 486,564 440,848 24,194 5% 69,910 16%
Shareholders' equity
Common stock 57,684 57,426 39,946 258 0% 17,738 44%
Additional paid-in capital 2,528 2,543 2,490 (15)-1% 38 2%
Retained earnings 19,350 18,184 14,447 1,166 6% 4,903 34%
Accumulated other comprehensive income 152 184 317 (32)-17% (165)-52%
79,714 78,337 57,200 1,377 2% 22,514 39%
Total liabilities and shareholders' equity 590,472 564,901 498,048 25,571 5% 92,424 19%

September 30, 2017 September 30, 2017
For the three months ended Q-o-Q Y-o-Y
INCOME STATEMENT September 30, 2017 June 30, 2017 September 30, 2016 change ($)change (%) change ($)change (%)
(unaudited - in $000s, except per share data)
Interest Income
Loans 5,962 5,697 5,070 265 5% 892 18%
Investment securities 227 186 185 41 22% 42 23%
Deposits in other financial institutions 195 138 63 57 41% 132 210%
6,384 6,021 5,318 363 6% 1,066 20%
Interest Expense
Deposits 379 340 325 39 11% 54 17%
Borrowings 263 223 201 40 18% 62 31%
642 563 526 79 14% 116 22%
Net interest income 5,742 5,458 4,792 284 5% 950 20%
Provision for credit losses 17 186 63 (169)NM (46)-73%
Net interest income after provision for credit losses 5,725 5,272 4,729 453 9% 996 21%
Noninterest income:
Service charges on deposit accounts 77 82 77 (5)-6% - 0%
Net gain on sale of loans & leases - 237 - (237)-100% - NM
Gain (loss) on sale of investment securities - 8 - (8)NM - NM
Other noninterest income 45 (150) 119 195 -130% (74)-62%
122 177 196 (55)-31% (74)-38%
Noninterest expense:
Salary and employee benefits 2,492 2,318 2,015 174 8% 477 24%
Occupancy and equipment 466 393 298 73 19% 168 56%
Data processing 278 265 294 13 5% (16)-5%
Professional services 175 314 149 (139)-44% 26 17%
Other expenses 457 409 337 48 12% 120 36%
3,868 3,699 3,093 169 5% 775 25%
Income before provision for income tax 1,979 1,750 1,832 229 13% 147 8%
Provision for income tax 815 725 756 90 12% 59 8%
Net income available to common shareholders 1,164 1,025 1,076 139 14% 88 8%
Earnings per share
Basic earnings per share $ 0.25 $ 0.23 $ 0.27 $ 0.02 9% $ (0.01)-5%
Diluted earnings per share $ 0.25 $ 0.23 $ 0.26 $ 0.02 10% $ (0.01)-5%
Average shares outstanding 4,596,013 4,413,085 4,041,173 182,928 4% 554,840 14%
Diluted average shares outstanding 4,712,015 4,545,771 4,155,779 166,244 4% 556,236 13%


For the three months ended For the three months ended For the three months ended
September 30, 2017 June 30, 2017 September 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 65,682 195 1.18% 58,122 138 0.95% 49,673 63 0.50%
Investment securities 40,053 227 2.25% 31,932 186 2.34% 31,360 185 2.34%
Loans 448,915 5,962 5.27% 431,644 5,697 5.29% 384,250 5,070 5.23%
Total interest-earning assets 554,650 6,384 4.57% 521,698 6,021 4.63% 465,283 5,318 4.53%
Noninterest-earning assets 18,041 19,251 15,356
Total Assets 572,691 540,949 480,639
Interest-Bearing Liabilities
Interest-bearing transaction accounts 12,376 6 0.19% 15,170 7 0.19% 12,381 6 0.19%
Money market 227,391 242 0.42% 189,070 198 0.42% 162,279 171 0.42%
Savings deposits 5,551 3 0.21% 5,673 3 0.21% 5,562 3 0.21%
Certificates of deposit 56,758 129 0.90% 63,612 132 0.83% 69,613 145 0.83%
Total Interest-Bearing Deposits 302,076 380 0.50% 273,525 340 0.50% 249,835 325 0.52%
FHLB advances 50,761 158 1.23% 50,385 120 0.96% 50,544 97 0.76%
Other borrowings 7,890 104 5.23% 7,886 103 5.24% 7,877 104 5.24%
Total Interest-Bearing Liabilities 58,651 262 1.77% 58,271 223 1.53% 308,256 201 0.26%
Noninterest-bearing deposits 129,918 134,087 113,433
Total Funding Sources 490,645 642 0.52% 465,883 563 0.48% 421,689 526 0.49%
Noninterest-bearing liabilities 3,021 2,385 2,330
Shareholders' equity 79,025 72,681 56,620
Total Liabilities and Shareholders' Equity 572,691 540,949 480,639
Net interest spread 4.05% 4.14% 4.04%
Net interest income 5,742 5,458 4,792
Net interest margin 4.11% 4.20% 4.09%

Source:Private Bancorp of America, Inc.