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Private Bancorp of America, Inc. Continues Strong Growth

/EIN News/ -- LA JOLLA, Calif., Oct. 17, 2018 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM)

Private Bancorp of America, Inc. (“PBAM”) announced quarterly earnings today including the financial results of its subsidiary, CalPrivate Bank (“Bank”) for the third quarter and first nine months of 2018.  PBAM continues to follow its strategy of organic growth and disciplined expansion in the coastal Southern California markets it serves.  Below are some highlights of the quarter and the year to date performance for the period ending September 30, 2018.

  • Total Assets were a record $749,962,000; up 6% over the prior quarter and up 27% year over year.
  • Net Loans were a record $576,903,000; up 9% over the prior quarter and up 29% year over year.
  • Total Deposits were $549,119,000; up 4% over the prior quarter and up 23% year over year.
  • Record Net Interest Income of $20,487,000 for the first nine months of 2018; up 25% year over year.
  • Record Quarterly Net Interest Income of $7,470,000 up 11% from the prior quarter and 30% for the same quarter a year ago.
  • Noninterest Income was a record $916,000 for the quarter and $1,754,000 year to date, primarily as a result of gain on sale of SBA loans.
  • Planned increases in Noninterest Expense resulted in costs of $6,357,000 for the quarter and $17,045,000 year to date.  The largest increase was in Salaries and Employee Benefits, up 59% for the nine months ended September 30, 2018 compared to the same period of the prior year.
  • Net Income for the quarter was $1,098,000; up 27% from the prior quarter and down 6% year over year, reflecting our previously announced planned hiring and expense increases in Orange County, Los Angeles and SBA and an increase in provision for loan losses of $124,000, 33% over the prior quarter, reflecting the substantial growth of the loan portfolio. 

Thomas V. Wornham, President and CEO of PBAM commented “We are pleased with our team members’ ability to execute on our ‘organic growth’ plan, which, has allowed us to grow to $750 million in total assets and increase our Net Interest Income, Loans and Deposits to record levels.  We continue to focus on the long-term vision of being committed to investing today for tomorrow’s profits.  CalPrivate Bank is seeing the return on the additional hires in Beverly Hills and Orange County, as well as the expansion of our SBA Group and our Specialty Lending Division.  While the increase in operating expenses reflects the new hires and associated expenses and it generally takes time for them to produce, we could not be more pleased with the additions we have made.  The increase in loans has also resulted in a $665,000 year over year increase in loan loss reserves, which has further reduced net income.”

Rick L. Sowers, President of CalPrivate Bank noted “Our results reflect the positive contribution the team is making and our disciplined approach to growth. We continue to look for opportunities to add great people to our existing talented staff as we execute on our growth plan.”

Selwyn Isakow, Chairman of PBAM commented “We are delighted with the Bank’s growth and excited by our prospects.  We continue to take advantage of this unique window of opportunity, caused by the extensive M&A activity which has resulted in employee dislocations, allowing us to hire talented and proven bankers to fuel our organic growth strategy.  While this investment may negatively impact our bottom line for a few quarters, we expect significant returns in future years.  We remain focused on increasing long term shareholder value through an experienced dedicated team of professionals committed to providing the best solutions for our clients.”

About Private Bancorp of America, Inc.

Private Bancorp of America, Inc. (OTCQX: PBAM), is the holding company for CalPrivate Bank.  CalPrivate 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.  Customers are 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. CalPrivate Bank is a SBA Preferred Lender and a Bauer 5-Star Rated Bank and is rated as one of the Top 200 Safest Banks in America by Deposits.com.

Investor Relations Contact

Thomas V. Wornham
President/CEO
Private Bancorp of America, Inc.
(858) 875.6900

Safe Harbor Paragraph

This press release includes 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 and develop business through the addition of new personnel and facilities and merged banks, whether our efforts to expand loan, product and service offerings will prove profitable, the effects of the bank mergers and acquisitions in our markets, system failures and internet security, 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.

 

                         
PRIVATE BANCORP OF AMERICA, INC.                        
SELECTED FINANCIAL DATA                        
                         
                         
                         
    For the three months ended   September 30, 2018   September 30, 2018
                Q-o-Q   Y-o-Y
SELECT FINANCIAL DATA AND PERFORMANCE RATIOS   September 30, 2018   June 30, 2018   September 30, 2017   change ($) change (%)   change ($) change (%)
(unaudited)                        
                         
Common shares outstanding at period-end     5,047,093     5,048,658     4,999,427     (1,565) 0%     47,666 1%
                         
Book value per common share    $  16.23    $  16.01    $  15.94    $  0.21 1%    $  0.28 2%
Tangible book value per common share    $  16.07    $  15.92    $  15.84    $  0.15 1%    $  0.23 1%
                         
PERFORMANCE RATIOS (%):                        
Return on average assets (annualized)   0.62%   0.53%   0.81%   0.09% 17%   -0.19% -23%
Return on average equity (annualized)   5.35%   4.30%   5.84%   1.06% 25%   -0.49% -8%
Return on average tangible common equity (annualized)   5.41%   4.32%   5.87%   1.09% 25%   -0.46% -8%
Net interest margin   4.35%   4.23%   4.11%   0.12% 3%   0.24% 6%
Net interest spread   4.28%   4.16%   4.05%   0.12% 3%   0.24% 6%
Efficiency ratio   75.80%   78.66%   65.96%   -2.85% -4%   9.84% 15%
Noninterest expense / average assets   3.57%   3.62%   2.68%   -0.05% -1%   0.89% 33%
                         
CAPITAL RATIOS (%):                        
Tier 1 leverage ratio   11.51%   12.14%   14.31%   -0.63% -5%   -2.80% -20%
Tier 1 risk-based capital ratio   13.01%   13.78%   17.08%   -0.77% -6%   -4.07% -24%
Common equity Tier 1 ratio   13.01%   13.78%   17.08%   -0.77% -6%   -4.07% -24%
Total risk-based capital ratio   13.90%   14.66%   18.00%   -0.76% -5%   -4.10% -23%
Tangible equity / tangible assets   10.83%   11.32%   13.43%   -0.49% -4%   -2.60% -19%
                         
                September 30, 2018   September 30, 2018
                Q-o-Q   Y-o-Y
CREDIT QUALITY PROFILE AND METRICS:   September 30, 2018   June 30, 2018   September 30, 2017   change ($) change (%)   change ($) change (%)
                         
Total Loans ($000s)     582,292     532,296     450,468     49,996 9%     131,824 29%
30-89 day past due loans ($000s)     -      -      -      -  NM     -  NM
90+ day past due loans ($000s)     -      -      -      -  NM     -  NM
nonaccrual loans ($000s)     -      1,481     1,606     (1,481) -100%     (1,606) -100%
                         
NPAs / Assets (%)   0.00%   0.21%   0.27%     (0) -100%     (0) -100%
NPLs / loans & REO (%)   0.00%   0.28%   0.36%     (0) -100%     (0) -100%
Net chargeoffs ($000s)   0   0   0     -  NM     -  NM
NCOs / avg loans (annualized) (%)   0%   0%   0%     -  NM     -  NM
Reserve ratio (%)   0.93%   0.92%   0.94%   0.01% 1%     (0) -1%
Reserve coverage ratio (%)   NM   330%   263%   NM NM    NM  NM
                         
                September 30, 2018   September 30, 2018
                Q-o-Q   Y-o-Y
LOAN PORTFOLIO COMPOSITION ($000s)   September 30, 2018   June 30, 2018   September 30, 2017   change ($) change (%)   change ($) change (%)
Real estate - investor owned     213,139     202,025     183,587     11,114 6%     29,552 16%
Real estate - owner occupied     86,216     62,839     46,501     23,377 37%     39,715 85%
Real estate - multifamily     62,811     66,024     52,595     (3,213) -5%     10,216 19%
Real estate - single family     63,906     54,449     51,225     9,457 17%     12,681 25%
Commercial business     124,770     118,296     93,860     6,474 5%     30,910 33%
Land and construction     22,640     22,913     20,585     (273) -1%     2,055 10%
Consumer     5,967     5,750     318     217 4%     5,649 1776%
Other     -      -      -      -  NM     -  NM
Total loans held for investment     579,449     532,296     448,671     47,153 9%     130,778 29%
                         
Loans held for sale     2,843     -      1,797     2,843 NM     1,046 58%
Total loans, including loans held for sale     582,292     532,296     450,468     49,996 9%     131,824 29%
                         
Allowance for loan losses     (5,389)     (4,893)     (4,221)     (496) 10%     (1,168) 28%
Net loans     576,903     527,403     446,247     49,500 9%     130,656 29%
                         
DEPOSIT COMPOSITION ($000S)                        
Non interest bearing DDA     180,657     165,610     124,055     15,047 9%     56,602 46%
Interest bearing DDA     16,481     17,437     10,963     (956) -5%     5,518 50%
Savings & MMA     294,600     295,743     258,235     (1,143) 0%     36,365 14%
Retail CD     6,461     7,294     6,793     (833) -11%     (332) -5%
Jumbo CD     50,920     42,397     48,064     8,523 20%     2,856 6%
Total deposits     549,119     528,481     448,110     20,638 4%     101,009 23%
                         


PRIVATE BANCORP OF AMERICA, INC.                      
SELECTED FINANCIAL DATA                      
                         
                         
                         
                September 30, 2018   September 30, 2018
                Q-o-Q   Y-o-Y
BALANCE SHEET September 30, 2018   June 30, 2018   September 30, 2017   change ($) change (%)   change ($) change (%)
(unaudited - in $000s)                      
                         
Assets                      
                         
Cash and due from banks   24,273     22,688     13,363     1,585 7%     10,910 82%
Interest-bearing deposits at Federal Reserve Bank   33,061     36,621     70,336     (3,560) -10%     (37,275) -53%
      57,334     59,309     83,699     (1,975) -3%     (26,365) -31%
Interest-bearing time deposits with other institutions   2,749     2,749     2,997     -  0%     (248) -8%
Investment securities available for sale   99,217     101,451     45,512     (2,234) -2%     53,705 118%
Investment securities held to maturity   -      -      -             
                         
Loans   582,292     532,296     450,468     49,996 9%     131,824 29%
Allowance for loan losses   (5,389)     (4,893)     (4,221)     (496) 10%     (1,168) 28%
      576,903     527,403     446,247     49,500 9%     130,656 29%
                         
Federal Home Loan Bank stock, at cost   2,889     2,878     2,295     11 0%     594 26%
Premises and equipment, net   2,067     2,202     1,416     (135) -6%     651 46%
Goodwill   -      -      -      -  NM     -  NM
Other intangible assets   789     443     503     346 78%     286 57%
Deferred tax asset/liability   4,852     4,776     5,553     76 2%     (701) -13%
Accrued interest receivable   851     851     1,450     -  0%     (599) -41%
Other assets   2,311     8,574     800     (6,263) -73%     1,511 189%
      749,962     710,636     590,472     39,326 6%     159,490 27%
                         
Liabilities and Shareholders' Equity                      
                         
Liabilities                      
Noninterest Bearing    180,657     165,611     124,055     15,046 9%     56,602 46%
Interest Bearing   368,462     362,870     324,055     5,592 2%     44,407 14%
Total Deposits   549,119     528,481     448,110     20,638 4%     101,009 23%
FHLB Borrowings   107,000     90,000     50,000     17,000 19%     57,000 114%
Other borrowings   7,906     7,902     7,892     4 0%     14 0%
Accrued interest payable and other liabilities   4,046     3,415     4,756     631 18%     (710) -15%
      668,071     629,798     510,758     38,273 6%     157,313 31%
                         
Shareholders' equity                      
Common stock   58,242     58,167     57,684     75 0%     558 1%
Additional paid-in capital   2,791     2,715     2,528     76 3%     263 10%
Retained earnings   22,318     21,254     19,350     1,064 5%     2,968 15%
Accumulated other comprehensive income   (1,460)     (1,298)     152     (162) 12%     (1,612) -1061%
      81,891     80,838     79,714     1,053 1%     2,177 3%
                         
Total liabilities and shareholders' equity   749,962     710,636     590,472     39,326 6%     159,490 27%
                         


PRIVATE BANCORP OF AMERICA, INC.                
SELECTED FINANCIAL DATA                
                 
                 
                 
              September 30, 2018
    for the nine months ended   Y-o-Y
INCOME STATEMENT   September 30, 2018     September 30, 2017   change ($) change (%)
(unaudited - in $000s, except per share data)                
                 
Interest Income                
Loans     20,760       17,161     3,599 21%
Investment securities     1,952       601     1,351 225%
Deposits in other financial institutions     577       452     125 28%
      23,289       18,214     5,075 28%
                 
Interest Expense                
Deposits      1,545       1,095     450 41%
Borrowings     1,257       695     562 81%
      2,802       1,790     1,012 57%
                 
Net interest income     20,487       16,424     4,063 25%
Provision for credit losses     868       203     665 328%
Net interest income after provision for credit losses     19,619       16,221     3,398 21%
                 
Noninterest income:                
Service charges on deposit accounts     276       255     21 8%
Net gain on sale of loans & leases     1,261       237     1,024 432%
Gain (loss) on sale of investment securities     -        8     (8) -100%
Other noninterest income     217       195     22 11%
      1,754       695     1,059 152%
                 
Noninterest expense:                
Salary and employee benefits     11,202       7,035     4,167 59%
Occupancy and equipment     1,690       1,178     512 43%
Data processing     1,361       833     528 63%
Professional services     898       656     242 37%
Other expenses     1,894       1,183     711 60%
      17,045       10,885     6,160 57%
                 
Income before provision for income tax     4,328       6,031     (1,703) -28%
Provision for income tax      1,238       2,496     (1,258) -50%
Net income     3,090       3,535     (445) -13%
Net income available to common shareholders     3,042       3,504     (462) -13%
                 
Earnings per share                
Basic earnings per share    $  0.61      $  0.71    $  (0.10) -14%
Diluted earnings per share    $  0.60      $  0.70    $  (0.10) -14%
                 
Average shares outstanding     4,955,683       4,949,318     6,365 0%
Diluted average shares outstanding     5,033,425       5,065,320     (31,895) -1%
                 


PRIVATE BANCORP OF AMERICA, INC.                        
SELECTED FINANCIAL DATA                        
                         
                         
                         
                September 30, 2018   September 30, 2018
    For the three months ended   Q-o-Q   Y-o-Y
INCOME STATEMENT   September 30, 2018   June 30, 2018   September 30, 2017   change ($) change (%)   change ($) change (%)
(unaudited - in $000s, except per share data)                        
                         
Interest Income                        
Loans     7,772     6,771     5,962     1,001 15%     1,810 30%
Investment securities     698     689     227     9 1%     471 207%
Deposits in other financial institutions     174     144     195     30 21%     (21) -11%
      8,644     7,604     6,384     1,040 14%     2,260 35%
                         
Interest Expense                        
Deposits      592     476     379     116 24%     213 56%
Borrowings     582     393     263     189 48%     319 121%
      1,174     869     642     305 35%     532 83%
                         
Net interest income     7,470     6,735     5,742     735 11%     1,728 30%
Provision for credit losses     496     372     17     124 33%     479 2818%
Net interest income after provision for credit losses     6,974     6,363     5,725     611 10%     1,249 22%
                         
Noninterest income:                        
Service charges on deposit accounts     90     115     77     (25) -22%     13 17%
Net gain on sale of loans & leases     749     473     -      276 58%     749 NM
Gain (loss) on sale of investment securities     (6)     7     -      (13) -186%     (6) NM
Other noninterest income     83     96     45     (13) -14%     38 84%
      916     691     122     225 33%     794 651%
                         
Noninterest expense:                        
Salary and employee benefits     4,269     3,870     2,492     399 10%     1,777 71%
Occupancy and equipment     610     558     466     52 9%     144 31%
Data processing     487     534     278     (47) -9%     209 75%
Professional services     288     240     175     48 20%     113 65%
Other expenses     703     639     457     64 10%     246 54%
      6,357     5,841     3,868     516 9%     2,489 64%
                         
Income before provision for income tax     1,533     1,213     1,979     320 26%     (446) -23%
Provision for income tax      435     350     815     85 24%     (380) -47%
Net income     1,098     863     1,164     235 27%     (66) -6%
Net income available to common shareholders     1,081     855     1,154     226 26%     (73) -6%
                         
Earnings per share                        
Basic earnings per share    $  0.22    $  0.17    $  0.23    $  0.05 28%    $  (0.02) -7%
Diluted earnings per share    $  0.21    $  0.17    $  0.23    $  0.05 28%    $  (0.02) -7%
                         
Average shares outstanding     4,967,905     4,954,863     4,941,023     13,042 0%     26,882 1%
Diluted average shares outstanding     5,087,829     5,074,321     5,057,025     13,508 0%     30,804 1%
                         


                                     
    For the three months ended   For the three months ended   For the three months ended
    September 30, 2018   June 30, 2018   September 30, 2017
    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   36,585   174   1.89%   34,236   145   1.70%     65,682     195   1.18%
Investment securities   103,618   698   2.67%   106,295   688   2.60%     40,053     227   2.25%
Loans   541,049   7,772   5.70%   497,917   6,771   5.45%     448,915     5,962   5.27%
Total interest-earning assets   681,252   8,644   5.03%   638,448   7,604   4.78%     554,650     6,384   4.57%
Noninterest-earning assets   24,817           16,475             18,041        
Total Assets   706,069           654,923             572,691        
                                     
Interest-Bearing Liabilities                                    
Interest-bearing transaction accounts   15,649   8   0.20%   17,085   9   0.21%     12,376     6   0.19%
Money market   277,216   394   0.56%   267,736   355   0.53%     227,391     242   0.42%
Savings deposits   5,580   4   0.28%   5,585   4   0.29%     5,551     3   0.21%
Certificates of deposit   56,743   186   1.30%   46,544   108   0.93%     56,758     129   0.90%
Total Interest-Bearing Deposits   355,188   592   0.66%   336,950   476   0.57%     302,076     380   0.50%
                                     
FHLB advances   83,978   478   2.26%   60,769   290   1.91%     50,761     158   1.23%
Other borrowings   7,904   104   5.22%   7,901   103   5.23%     7,890     104   5.23%
Total Interest-Bearing Liabilities   91,882   582   2.51%   68,670   393   2.30%     58,651     262   1.77%
                                     
Noninterest-bearing deposits   173,335           158,079             129,918        
Total Funding Sources   620,405   1,174   0.75%   563,699   869   0.62%     490,645     642   0.52%
                                     
Noninterest-bearing liabilities   4,300           10,678             3,021        
                                     
Shareholders' equity   81,364           80,546             79,025        
                                     
Total Liabilities and Shareholders' Equity   706,069           654,923             572,691        
                                     
Net interest spread           4.28%           4.16%           4.05%
                                     
Net interest income       7,470           6,735             5,742    
Net interest margin           4.35%           4.23%           4.11%
                                     
                                     


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