Private Bancorp of America, Inc. Announces Continued Strong

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News Desk 2018

Oct 19, 2017 at 1:00 AM 53

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 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.

[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 SHEET	September 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	%

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