Private Bancorp of America, Inc. Grows to Over $700 Million in Assets

LA JOLLA, Calif., July 18, 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 second quarter and first half 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 June 30, 2018.

  • Total Assets were a record $710,636,000; up 10% over the prior quarter and up 26% year over year.
  • Net Loans were a record $527,403,000; up 12% over the prior quarter and up 17% year over year.
  • Total Deposits were 528,481,000; up 5% over the prior quarter and up 35% year over year.
  • Record Net Interest Income of $13,017,000 for the first half of 2018; up 22% year over year.
  • Record Quarterly Net Interest Income of $6,735,000 up 7% from the prior quarter and 23% for the same quarter a year ago.
  • Non-interest Income was a record $691,000 for the quarter and $837,000 year to date, primarily as a result of gain on sale of SBA loans.
  • Planned increases in Noninterest Expense resulted in costs of $5,841,000 for the quarter and $10,687,000 year to date.  The largest increase was in Salaries and Employee Benefits, up 53% for the six months ended June 30, 2018 compared to the same period of the prior year.
  • Net Income for the quarter was $863,000; down 24% from the prior quarter and 16% year over year, reflecting our previously announced planned hiring and expense increases in Orange County, Los Angeles and SBA.

Thomas V. Wornham, President and CEO of PBAM commented “We are very proud of the work our team members have done and the support our customers and shareholders have provided us to grow through $700 million in total assets.  We are fortunate to have a Board of Directors with a long-term vision, committed to investing today for tomorrow’s profits.  CalPrivate Bank is already 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 Area.  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. We have already seen lift in Loan and Deposit growth, Net Interest income and finally Non Interest Income.”

Rick L. Sowers, President of CalPrivate Bank noted “We have added 35 professionals to our team this year.  This reflects our commitment to growth and hiring the right people for the right roles.  Our SBA team is already showing returns on our investment.  Our client, credit and relationship management teams are all working well together to ensure that growth does not come at the expense of service.  We have veteran bankers now managing all of our markets and we continue to look to add related businesses to our franchise as we see opportunities that make sense.”

Selwyn Isakow, Chairman of PBAM commented “We are delighted with the Bank’s growth and excited by our prospects.  We are committed to taking advantage of this unique window as extensive M&A activity has caused employee dislocations, allowing us to hire talented and proven bankers to fuel our organic growth strategy.  We recognize that this investment may negatively impact our bottom line for a few quarters, but expect significant returns in future years.  We are focused on increasing shareholder value. Our succession bench has never been stronger and we have 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.

 
    For the three months ended   June 30, 2018   June 30, 2018
                Q-o-Q   Y-o-Y
SELECT FINANCIAL DATA AND PERFORMANCE RATIOS   June 30, 2018   March 31, 2018   June 30, 2017   change ($) change (%)   change ($) change (%)
(unaudited)                        
                         
Common shares outstanding at period-end       5,048,658       5,012,557       4,989,211       36,101   1%       59,447 1%
                         
Book value per common share   $   16.01   $   16.01   $   15.70   $   0.00   0%   $   0.31 2%
Tangible book value per common share   $   15.92   $   15.92   $   15.58   $   0.01   0%   $   0.34 2%
                         
PERFORMANCE RATIOS (%):                        
Return on average assets (annualized)     0.53%     0.72%     0.76%     -0.19%   -27%     -0.23% -30%
Return on average equity (annualized)     4.30%     5.74%     5.66%     -1.44%   -25%     -1.36% -24%
Return on average tangible common equity (annualized)     4.32%     5.77%     6.14%     -1.44%   -25%     -1.82% -30%
Net interest margin     4.23%     3.99%     4.20%     0.24%   6%     0.03% 1%
Net interest spread     4.16%     3.94%     4.14%     0.22%   6%     0.01% 0%
Efficiency ratio     78.66%     75.39%     65.64%     3.27%   4%     13.01% 20%
Noninterest expense / average assets     3.62%     2.99%     2.74%     0.63%   21%     0.87% 32%
                         
CAPITAL RATIOS (%):                        
Tier 1 leverage ratio     12.14%     12.03%     14.89%     0.11%   1%     -2.75% -18%
Tier 1 risk-based capital ratio     13.78%     15.21%     16.81%     -1.43%   -9%     -3.03% -18%
Common equity Tier 1 ratio     13.78%     15.21%     16.81%     -1.43%   -9%     -3.03% -18%
Total risk-based capital ratio     14.66%     16.11%     17.73%     -1.45%   -9%     -3.07% -17%
Tangible equity / tangible assets     11.32%     12.36%     13.77%     -1.04%   -8%     -2.45% -18%
                         
                June 30, 2018   June 30, 2018
            Quarter ended:   Q-o-Q   Y-o-Y
CREDIT QUALITY PROFILE AND METRICS:   June 30, 2018   March 31, 2018   June 30, 2017   change ($) change (%)   change ($) change (%)
                         
Total Loans ($000s)       532,296       476,156       453,207       56,140   12%       79,089 17%
30-89 day past due loans ($000s)       –        –        –        –    NM       –  NM
90+ day past due loans ($000s)       –        –        –        –    NM       –  NM
nonaccrual loans ($000s)       1,481       1,499       139       (18)   -1%       1,342 965%
                         
NPAs / Assets (%)     0.21%     0.23%     0.02%       (0)   -10%       0 747%
NPLs / loans & REO (%)     0.28%     0.32%     0.03%       (0)   -12%       0 816%
Net chargeoffs ($000s)     0     0     0       –    NM       –  NM
NCOs / avg loans (annualized) (%)     0%     0%     0%       –    NM       –  NM
Reserve ratio (%)     0.92%     0.95%     0.93%     -0.03%   -3%       (0) -1%
Reserve coverage ratio (%)     330%     302%     3024%     29%   10%       (27) -89%
                         
                June 30, 2018   June 30, 2018
            Quarter ended:   Q-o-Q   Y-o-Y
LOAN PORTFOLIO COMPOSITION ($000s)   June 30, 2018   March 31, 2018   June 30, 2017   change ($) change (%)   change ($) change (%)
Real estate – investor owned       202,025       190,200       183,936       11,825   6%       18,089 10%
Real estate – owner occupied       62,839       61,706       48,086       1,133   2%       14,753 31%
Real estate – multifamily       66,024       60,948       49,518       5,076   8%       16,506 33%
Real estate – single family       54,449       42,646       54,559       11,803   28%       (110) 0%
Commercial business       118,296       100,090       89,739       18,206   18%       28,557 32%
Land and construction       22,913       18,925       25,461       3,988   21%       (2,548) -10%
Consumer       5,750       1,641       258       4,109   250%       5,492 2129%
Other       –        –        –        –    NM       –  NM
Total loans held for investment       532,296       476,156       451,557       56,140   12%       80,739 18%
                         
Loans held for sale       –        –        1,650       –    NM       (1,650) -100%
Total loans, including loans held for sale       532,296       476,156       453,207       56,140   12%       79,089 17%
                         
Allowance for loan losses       (4,893)       (4,521)       (4,204)       (372)   8%       (689) 16%
Net loans       527,403       471,635       449,003       55,768   12%       78,400 17%
                         
DEPOSIT COMPOSITION ($000S)                        
Non interest bearing DDA       165,610       165,067       120,197       543   0%       45,413 38%
Interest bearing DDA       17,437       15,566       14,616       1,871   12%       2,821 19%
Savings & MMA       295,743       277,434       193,396       18,309   7%       102,347 53%
Retail CD       7,294       7,114       5,703       180   3%       1,591 28%
Jumbo CD       42,397       39,425       57,424       2,972   8%       (15,027) -26%
Total deposits       528,481       504,606       391,336       23,875   5%       137,145 35%
             

 

                                 
                    June 30, 2018     June 30, 2018  
                    Q-o-Q     Y-o-Y  
BALANCE SHEET June 30, 2018     March 31, 2018     June 30, 2017     change ($)   change (%)   change ($)   change (%)
(unaudited – in $000s)                                
                                 
Assets                                
                                 
Cash and due from banks   22,688       15,596       12,179       7,092   45%     10,509   86%
Interest-bearing deposits at Federal Reserve Bank   36,621       38,115       57,189       (1,494 ) -4%     (20,568 ) -36%
    59,309       53,711       69,368       5,598   10%     (10,059 ) -15%
Interest-bearing time deposits with other institutions   2,749       2,998       2,997       (249 ) -8%     (248 ) -8%
Investment securities available for sale   101,451       105,828       31,693       (4,377 ) -4%     69,758   220%
Investment securities held to maturity   –        –        –                   
                                 
Loans   532,296       476,156       453,207       56,140   12%     79,089   17%
Allowance for loan losses   (4,893 )     (4,521 )     (4,204 )     (372 ) 8%     (689 ) 16%
    527,403       471,635       449,003       55,768   12%     78,400   17%
                                 
Federal Home Loan Bank stock, at cost   2,878       2,295       2,295       583   25%     583   25%
Premises and equipment, net   2,202       1,969       1,187       233   12%     1,015   86%
Goodwill   –        –        –        –    0%     –    0%
Other intangible assets   443       465       609       (22 ) -5%     (166 ) -27%
Deferred tax asset/liability   4,776       4,353       5,532       423   10%     (756 ) -14%
Accrued interest receivable   851       2,030       1,376       (1,179 ) -58%     (525 ) -38%
Other assets   8,574       947       841       7,627   805%     7,733   920%
    710,636       646,231       564,901       64,405   10%     145,735   26%
                                 
Liabilities and Shareholders’ Equity                                
                                 
Liabilities                                
Noninterest Bearing    165,611       165,067       120,197       544   0%     45,414   38%
Interest Bearing   362,870       339,539       271,139       23,331   7%     91,731   34%
Total Deposits   528,481       504,606       391,336       23,875   5%     137,145   35%
FHLB Borrowings   90,000       50,000       85,000       40,000   80%     5,000   6%
Other borrowings   7,902       7,899       7,889       3   0%     13   0%
Accrued interest payable and other liabilities   3,415       3,473       2,339       (58 ) -2%     1,076   46%
    629,798       565,978       486,564       63,820   11%     143,234   29%
                                 
Shareholders’ equity                                
Common stock   58,167       57,931       57,426       236   0%     741   1%
Additional paid-in capital   2,715       2,739       2,543       (24 ) -1%     172   7%
Retained earnings   21,254       20,396       18,184       858   4%     3,070   17%
Accumulated other comprehensive income   (1,298 )     (813 )     184       (485 ) 60%     (1,482 ) -805%
    80,838       80,253       78,337       585   1%     2,501   3%
                                 
Total liabilities and shareholders’ equity 710,636     646,231     564,901     64,405   10%   145,735   26%
                                 

 

 
            June 30, 2018
    For the six months ended   Y-o-Y
INCOME STATEMENT   June 30, 2018   June 30, 2017   change ($) change (%)
(unaudited – in $000s, except per share data)              
               
Interest Income              
Loans       12,987       11,199       1,788   16%
Investment securities       1,255       374       881   236%
Deposits in other financial institutions       403       257       146   57%
        14,645       11,830       2,815   24%
               
Interest Expense              
Deposits        953       715       238   33%
Borrowings       675       432       243   56%
        1,628       1,147       481   42%
               
Net interest income       13,017       10,683       2,334   22%
Provision for credit losses       372       186       186   100%
Net interest income after provision for credit losses       12,645       10,497       2,148   20%
               
Noninterest income:              
Service charges on deposit accounts       125       138       (13 ) -9%
Net gain on sale of loans & leases       511       237       274   116%
Gain (loss) on sale of investment securities       7       8       (1 ) -13%
Other noninterest income       194       189       5   3%
        837       572       265   46%
               
Noninterest expense:              
Salary and employee benefits       6,933       4,543       2,390   53%
Occupancy and equipment       1,081       712       369   52%
Data processing       874       555       319   57%
Professional services       610       481       129   27%
Other expenses       1,189       726       463   64%
        10,687       7,017       3,670   52%
               
Income before provision for income tax       2,795       4,052       (1,257 ) -31%
Provision for income tax        803       1,682       (879 ) -52%
Net income       1,992       2,370       (378 ) -16%
Net income available to common shareholders       1,967       2,336.41       (369 ) -16%
               
Earnings per share              
Basic earnings per share   $   0.40   $   0.54   $   (0.13 ) -25%
Diluted earnings per share   $   0.39   $   0.51   $   (0.12 ) -24%
               
Average shares outstanding       4,952,883       4,415,902       536,981   12%
Diluted average shares outstanding       5,072,341       4,548,588       523,753   12%

 

 
                June 30, 2018   June 30, 2018
    For the three months ended   Q-o-Q   Y-o-Y
INCOME STATEMENT   June 30, 2018   March 31, 2018   June 30, 2017   change ($) change (%)   change ($) change (%)
(unaudited – in $000s, except per share data)                        
                         
Interest Income                        
Loans       6,771       6,216       5,697         555   9%       1,074   19%
Investment securities       689       566       186         123   22%       503   270%
Deposits in other financial institutions       144       259       138         (115 ) -44%       6   4%
        7,604       7,041       6,021         563   8%       1,583   26%
                         
Interest Expense                        
Deposits        476       477       340         (1 ) 0%       136   40%
Borrowings       393       282       223         111   39%       170   76%
        869       759       563         110   14%       306   54%
                         
Net interest income       6,735       6,282       5,458         453   7%       1,277   23%
Provision for credit losses       372       –        186         372   NM       186   NM
Net interest income after provision for credit losses       6,363       6,282       5,272         81   1%       1,091   21%
                         
Noninterest income:                        
Service charges on deposit accounts       115       46       82         69   150%       33   40%
Net gain on sale of loans & leases       473       38       91         435   1145%       382   420%
Gain (loss) on sale of investment securities       7       –        8         7   NM       (1 ) -13%
Other noninterest income       96       62       (4 )       34   55%       100   -2500%
        691       146       177         545   373%       514   290%
                         
Noninterest expense:                        
Salary and employee benefits       3,870       3,063       2,318         807   26%       1,552   67%
Occupancy and equipment       558       523       393         35   7%       165   42%
Data processing       534       339       265         195   58%       269   102%
Professional services       240       370       314         (130 ) -35%       (74 ) -24%
Other expenses       639       551       409         88   16%       230   56%
        5,841       4,846       3,699         995   21%       2,142   58%
                         
Income before provision for income tax       1,213       1,582       1,750         (369 ) -23%       (537 ) -31%
Provision for income tax        350       453       725         (103 ) -23%       (375 ) -52%
Net income       863       1,129       1,025         (266 ) -24%       (162 ) -16%
Net income available to common shareholders       855       1,118       1,015         (263 ) -24%       (160 ) -16%
                         
Earnings per share                        
Basic earnings per share   $   0.17   $   0.23   $   0.21     $   (0.05 ) -24%   $   (0.04 ) -20%
Diluted earnings per share   $   0.17   $   0.22   $   0.21     $   (0.05 ) -24%   $   (0.04 ) -20%
                         
Average shares outstanding       5,014,918       4,962,128       4,745,163         52,790   1%       269,755   6%
Diluted average shares outstanding       5,134,376       5,069,098       4,877,849         65,278   1%       256,527   5%
                                         

 

 
    For the three months ended   For the three months ended   For the three months ended
    June 30, 2018   March 31, 2018   June 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   34,236   145   1.70%   65,798   259   1.60%     58,122     138   0.95%
Investment securities   106,295   688   2.60%   88,276   566   2.60%     31,932     186   2.34%
Loans   497,917   6,771   5.45%   484,180   6,216   5.21%     431,644     5,697   5.29%
Total interest-earning assets   638,448   7,604   4.78%   638,254   7,041   4.47%     521,698     6,021   4.63%
Noninterest-earning assets   16,475           18,734             19,251        
Total Assets   654,923           656,988             540,949        
                                     
Interest-Bearing Liabilities                                    
Interest-bearing transaction accounts   17,085   9   0.21%   17,002   8   0.19%     15,170     7   0.19%
Money market   267,736   355   0.53%   281,175   361   0.52%     189,070     198   0.42%
Savings deposits   5,585   4   0.29%   5,516   3   0.22%     5,673     3   0.21%
Certificates of deposit   46,544   108   0.93%   53,369   106   0.81%     63,612     132   0.83%
Total Interest-Bearing Deposits   336,950   476   0.57%   357,062   478   0.54%     273,525     340   0.50%
                                     
FHLB advances   60,769   290   1.91%   49,778   179   1.46%     50,385     120   0.96%
Other borrowings   7,901   103   5.23%   7,897   102   5.24%     7,886     103   5.24%
Total Interest-Bearing Liabilities   68,670   393   2.30%   57,675   281   1.98%     58,271     223   1.53%
                                     
Noninterest-bearing deposits   158,079           158,611             134,087        
Total Funding Sources   563,699   869   0.62%   573,348   759   0.54%     465,883     563   0.48%
                                     
Noninterest-bearing liabilities   10,678           3,753             2,385        
                                     
Shareholders’ equity   80,546           79,887             72,681        
                                     
Total Liabilities and Shareholders’ Equity   654,923           656,988             540,949        
                                     
Net interest spread           4.16%           3.94%           4.14%
                                     
Net interest income       6,735           6,282           5,458    
Net interest margin           4.23%           3.99%           4.20%
                                     

 

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