Private Bancorp of America, Inc. Reports Continued Strong

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News Desk 2018

Jul 24, 2017 at 10:00 PM 46

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 forward‐looking 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 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.


	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 SHEET	June 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

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