Private Bancorp of America, Inc. Continues Record Growth in 2017

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

Private Bancorp of America, Inc. (the “Bancorp”), parent company of San Diego Private Bank (the “Bank”), announces unaudited financial results for the fourth quarter and the fiscal year ended December 31, 2017.

Total assets increased 23% during 2017 to a record $671.2 million at December 31, 2017.  2017 Net interest income increased 21% to $22.5 million and pre-tax income for 2017 was up 13% over 2016 at $7.9 million; both also record levels.  Total deposits grew 30% during 2017, ending the year at $530.7 million.  Total loans were $492.6 million at 12/31/2017, up 13% from the prior year end.  Loan and deposit growth achieved record levels. The Bancorp and the Bank accomplished significant successes in 2017:

• Strategic decision made to expand into West Los Angeles.
• Appointed Richard Smith to Bank Board of Directors in the first quarter and Monica Navarro hired to build the Beverly Hills presence.
• Opened its Beverly Hills Office in the third quarter.
• Bancorp was “up listed” to the OTCQX platform added to three indices.
• Successfully completed a $17 million capital raise at market.
• Added James Parks to Bank Board of Directors in the fourth quarter.
• Bancorp’s market cap exceeds $125 million for the first time in the fourth quarter.
• Branded “RELATIONSHIPS, SOLUTIONS, TRUST.”
• Robert Pedersen hired in fourth quarter to manage the Bank’s SBA Department.
• Beverly Hills branch exceeds $100 million in deposits in December.

“We could not be more proud of our Team Members who worked tirelessly in 2017 to implement the Board’s and Management’s visions and strategies,” said Thomas V. Wornham, President and CEO. “We remain committed to providing outstanding creative solution-based customer service to ensure sustained safe and sound organic growth.”

Credit quality and capital ratios remain healthy by all standards.

Changes in accounting rules related to the recently passed tax law negatively impacted the Bank and Bancorp.  Bancorp’s net income was $3,425,000 after a one-time $1,516,000 tax adjustment related the revaluation of deferred tax assets.  Without the impact of the 2017 Tax Reform Bill, Bancorp’s 2017 net income would have been $5.0 million, resulting in a 15% increase over 2016.  2017 earnings per share is $.74.  If adjusted for the impact of the deferred tax asset revaluation of $.30 per share, earnings per share would have been $1.04.  To accurately compare the adjusted 2017 EPS to 2016 it is important to recognize that after the 2017 capital raise there are 21% more shares outstanding at December 31, 2017 versus the same date of 2016. 

Selwyn Isakow, Chairman of the Board, said “We have doubled the asset size of the Bank in a little over three years.  We have successfully expanded the size of our service footprint from the Mexican Border to Beverly Hills.  We remain committed to being the finest relationship-focused financial service provider in Coastal Southern California.  I would like to thank our Clients, Shareholders, Directors, Team Members and Management who continue to support our record growth.  We remain committed to building client relationships through outstanding service and customized solutions in order to create exceptional trust.”

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]



PRIVATE BANCORP OF AMERICA, INC.
SELECTED FINANCIAL DATA
		For the three months ended												December 31, 2017						December 31, 2017
														Q-o-Q						Y-o-Y
SELECT FINANCIAL DATA AND PERFORMANCE RATIOS		December 31, 2017				September 30, 2017				December 31, 2016				change ($)			change (%)			change ($)			change (%)
(unaudited)
Common shares outstanding at period-end			5,008,627				4,999,427				4,139,664				9,200		0	%			868,963		21	%
Book value per common share		$	15.88			$	15.94			$	13.73			$	(0.07	)	0	%		$	2.15		16	%
Tangible book value per common share		$	15.79			$	15.84			$	13.55			$	(0.06	)	0	%		$	2.24		17	%
PERFORMANCE RATIOS (%):
Return on average assets (annualized)			-0.07	%			0.92	%			1.05	%			-0.99	%	-107	%			-1.12	%	-107	%
Return on average equity (annualized)			-0.55	%			6.69	%			9.36	%			-7.23	%	-108	%			-9.91	%	-106	%
Return on average tangible common equity (annualized)			-0.55	%			6.71	%			9.47	%			-7.27	%	-108	%			-10.03	%	-106	%
Net interest margin			3.92	%			4.11	%			4.01	%			-0.18	%	-4	%			-0.09	%	-2	%
Net interest spread			3.87	%			4.05	%			3.97	%			-0.18	%	-4	%			-0.10	%	-2	%
Efficiency ratio			64.98	%			64.12	%			56.75	%			0.86	%	1	%			8.23	%	15	%
Noninterest expense / average assets			2.54	%			2.68	%			2.32	%			-0.14	%	-5	%			0.22	%	10	%
CAPITAL RATIOS (%):
Tier 1 leverage ratio			12.11	%			13.39	%			10.83	%			-1.28	%	-10	%			1.28	%	12	%
Tier 1 risk-based capital ratio			14.80	%			15.99	%			12.05	%			-1.19	%	-7	%			2.75	%	23	%
Common equity Tier 1 ratio			14.80	%			15.99	%			12.05	%			-1.19	%	-7	%			2.75	%	23	%
Total risk-based capital ratio			15.71	%			16.90	%			12.95	%			-1.19	%	-7	%			2.76	%	21	%
Tangible equity / tangible assets			11.78	%			13.43	%			10.66	%			-1.64	%	-12	%			1.12	%	11	%
														December 31, 2017						December 31, 2017
														Q-o-Q						Y-o-Y
CREDIT QUALITY PROFILE AND METRICS:		December 31, 2017				September 30, 2017				December 31, 2016				change ($)			change (%)			change ($)			change (%)
Total Loans ($000s)			497,152				450,468				438,295				46,684		10	%			58,857		13	%
30-89 day past due loans ($000s)			1,424				-				-				1,424		NM				1,424		NM
90+ day past due loans ($000s)			-				-				-				-		NM				-		NM
nonaccrual loans ($000s)			1,586				1,606				191				(20	)	-1	%			1,395		730	%
NPAs / Assets (%)			0.24	%			0.27	%			0.04	%			(0	)	-13	%			0		575	%
NPLs / loans & REO (%)			0.32	%			0.36	%			0.04	%			(0	)	-11	%			0		632	%
Net chargeoffs ($000s)			0				0				0				-		NM				-		NM
NCOs / avg loans (annualized) (%)			0	%			0	%			0	%			-		NM				-		NM
Reserve ratio (%)			0.91	%			0.94	%			0.92	%			-0.03	%	-3	%			-0.01	%	-1	%
Reserve coverage ratio (%)			285	%			263	%			2104	%			22	%	8	%			-1819	%	-86	%
														December 31, 2017						December 31, 2017
														Q-o-Q						Y-o-Y
LOAN PORTFOLIO COMPOSITION ($000s)		December 31, 2017				September 30, 2017				December 31, 2016				change ($)			change (%)			change ($)			change (%)
Real estate - investor owned			189,355				183,587				178,209				5,768		3	%			11,146		6	%
Real estate - owner occupied			62,657				46,501				46,201				16,156		35	%			16,456		36	%
Real estate - multifamily			56,500				52,595				50,434				3,905		7	%			6,066		12	%
Real estate - single family			48,362				51,225				47,715				(2,863	)	-6	%			647		1	%
Commercial business			113,218				93,860				78,725				19,358		21	%			34,493		44	%
Land and construction			24,679				20,585				36,929				4,094		20	%			(12,250	)	-33	%
Consumer			1,734				318				82				1,416		445	%			1,652		2015	%
Leases			-				-				-				-		NM				-		NM
Other			-				-				-				-		NM				-		NM
Total loans held for investment			496,505				448,671				438,295				47,834		11	%			58,210		13	%
Loans held for sale			647				1,797				-				(1,150	)	-64	%			647		NM
Total loans, including loans held for sale			497,152				450,468				438,295				46,684		10	%			58,857		13	%
Allowance for loan losses			(4,521	)			(4,221	)			(4,018	)			(300	)	7	%			(503	)	13	%
Net loans			492,631				446,247				434,277				46,384		10	%			58,354		13	%
DEPOSIT COMPOSITION ($000S)
Non interest bearing DDA			162,049				124,055				122,023				37,994		31	%			40,026		33	%
Interest bearing DDA			16,373				10,963				13,292				5,410		49	%			3,081		23	%
Savings & MMA			295,075				258,235				180,258				36,840		14	%			114,817		64	%
Retail CD			6,035				6,793				5,458				(758	)	-11	%			577		11	%
Jumbo CD			53,651				48,064				87,654				5,587		12	%			(34,003	)	-39	%
Total deposits			533,183				448,110				408,685				85,073		19	%			124,498		30	%

 

PRIVATE BANCORP OF AMERICA, INC.
SELECTED FINANCIAL DATA
											December 31, 2017					December 31, 2017
											Q-o-Q					Y-o-Y
BALANCE SHEET		December 31, 2017			September 30, 2017			December 31, 2016			change ($)		change (%)			change ($)		change (%)
(unaudited - in $000s)
Assets
Cash and due from banks		15,128			13,363			38,368			1,765		13	%		(23,240	)	-61	%
Interest-bearing deposits at Federal Reserve Bank		87,401			70,336			32,092			17,065		24	%		55,309		172	%
		102,529			83,699			70,460			18,830		22	%		32,069		46	%
Interest-bearing time deposits with other institutions		2,997			2,997			1,245			-		0	%		1,752		141	%
Investment securities available for sale		61,568			45,512			27,984			16,056		35	%		33,584		120	%
Investment securities held to maturity		-			-			-
Loans		497,152			450,468			438,295			46,684		10	%		58,857		13	%
Allowance for loan losses		(4,521	)		(4,221	)		(4,018	)		(300	)	7	%		(503	)	13	%
		492,631			446,247			434,277			46,384		10	%		58,354		13	%
Federal Home Loan Bank stock, at cost		2,295			2,295			2,135			-		0	%		160		7	%
Premises and equipment, net		1,530			1,416			923			114		8	%		607		66	%
Goodwill		-			-			-
Other intangible assets		487			503			690			(16	)	-3	%		(203	)	-29	%
Deferred tax asset/liability		4,233			5,553			5,703			(1,320	)	-24	%		(1,470	)	-26	%
Accrued interest receivable		1,811			1,450			1,277			361		25	%		534		42	%
Other assets		1,164			800			980			364		46	%		184		19	%
		671,245			590,472			545,674			80,773		14	%		125,571		23	%
Liabilities and Shareholders' Equity
Liabilities
Noninterest Bearing		162,049			124,055			122,023			37,994		31	%		40,026		33	%
Interest Bearing		371,134			324,055			286,662			47,079		15	%		84,472		29	%
Total Deposits		533,183			448,110			408,685			85,073		19	%		124,498		30	%
FHLB Borrowings		50,000			50,000			68,000			-		0	%		(18,000	)	-26	%
Other borrowings		7,896			7,892			7,882			4		0	%		14		0	%
Accrued interest payable and other liabilities		645			4,756			2,310			(4,111	)	-86	%		(1,665	)	-72	%
		591,724			510,758			486,877			80,966		16	%		104,847		22	%
Shareholders' equity
Common stock		57,857			57,684			40,713			173		0	%		17,144		42	%
Additional paid-in capital		2,569			2,528			2,343			41		2	%		226		10	%
Retained earnings		19,265			19,350			15,814			(85	)	0	%		3,451		22	%
Accumulated other comprehensive income		(170	)		152			(73	)		(322	)	-212	%		(97	)	133	%
		79,521			79,714			58,797			(193	)	0	%		20,724		35	%
Total liabilities and shareholders' equity		671,245			590,472			545,674			80,773		14	%		125,571		23	%

 

PRIVATE BANCORP OF AMERICA, INC.
SELECTED FINANCIAL DATA
												December 31, 2017						December 31, 2017
		For the three months ended										Q-o-Q						Y-o-Y
INCOME STATEMENT		December 31, 2017				September 30, 2017			December 31, 2016			change ($)			change (%)			change ($)			change (%)
(unaudited - in $000s, except per share data)
Interest Income
Loans			6,241				5,962			5,283			279		5	%			958		18	%
Investment securities			321				227			259			94		41	%			62		24	%
Deposits in other financial institutions			214				195			67			19		10	%			147		219	%
			6,776				6,384			5,609			392		6	%			1,167		21	%
Interest Expense
Deposits			429				379			383			50		13	%			46		12	%
Borrowings			267				263			202			4		2	%			65		32	%
			696				642			585			54		8	%			111		19	%
Net interest income			6,080				5,742			5,024			338		6	%			1,056		21	%
Provision for credit losses			300				17			340			283		NM				(40	)	-12	%
Net interest income after provision for credit losses			5,780				5,725			4,684			55		1	%			1,096		23	%
Noninterest income:
Service charges on deposit accounts			72				77			94			(5	)	-6	%			(22	)	-23	%
Net gain on sale of loans & leases			73				69			168			4		6	%			(95	)	-57	%
Gain (loss) on sale of investment securities			-				-			-			-		NM				-		NM
Other noninterest income			26				45			46			(19	)	-42	%			(20	)	-43	%
			171				191			308			(20	)	-10	%			(137	)	-44	%
Noninterest expense:
Salary and employee benefits			2,581				2,492			2,025			89		4	%			556		27	%
Occupancy and equipment			458				466			302			(8	)	-2	%			156		52	%
Data processing			260				278			251			(18	)	-6	%			9		4	%
Professional services			217				175			105			42		24	%			112		107	%
Other expenses			546				457			343			89		19	%			203		59	%
			4,062				3,868			3,026			194		5	%			1,036		34	%
Income before provision for income tax			1,889				2,048			1,966			(159	)	-8	%			(77	)	-4	%
Provision for income tax			1,999				815			598			1,184		145	%			1,401		234	%
Net income available to common shareholders			(110	)			1,233			1,368			(1,343	)	-109	%			(1,478	)	-108	%
Earnings per share
Basic earnings per share		$	(0.02	)		$	0.27		$	0.34		$	(0.29	)	-108	%		$	(0.36	)	-107	%
Diluted earnings per share		$	(0.02	)		$	0.26		$	0.33		$	(0.28	)	-108	%		$	(0.35	)	-107	%
Average shares outstanding			4,948,981				4,596,013			4,071,993			352,968		8	%			876,988		22	%
Diluted average shares outstanding			5,071,375				4,712,015			4,187,134			359,360		8	%			884,241		21	%

 

PRIVATE BANCORP OF AMERICA, INC.
SELECTED FINANCIAL DATA
		For the three months ended							For the three months ended							For the three months ended
		December 31, 2017							September 30, 2017							December 31, 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		78,516		214		1.08	%		65,682		195		1.18	%		54,702		67		0.49	%
Investment securities		54,751		321		2.33	%		40,053		227		2.25	%		30,697		259		3.35	%
Loans		481,667		6,241		5.14	%		448,915		5,962		5.27	%		411,814		5,283		5.09	%
Total interest-earning assets		614,934		6,776		4.37	%		554,650		6,384		4.57	%		497,213		5,609		4.48	%
Noninterest-earning assets		18,781							18,041							19,842
Total Assets		633,715							572,691							517,055
Interest-Bearing Liabilities
Interest-bearing transaction accounts		13,469		7		0.21	%		12,376		6		0.19	%		13,032		6		0.18	%
Money market		279,626		302		0.43	%		227,391		242		0.42	%		176,234		204		0.46	%
Savings deposits		5,230		3		0.23	%		5,551		3		0.21	%		4,749		3		0.25	%
Certificates of deposit		53,685		116		0.86	%		56,758		129		0.90	%		79,818		170		0.84	%
Total Interest-Bearing Deposits		352,010		428		0.48	%		302,076		380		0.50	%		273,833		383		0.55	%
FHLB advances		50,000		163		1.29	%		50,761		158		1.23	%		50,554		97		0.76	%
Other borrowings		7,894		104		5.23	%		7,890		104		5.23	%		7,881		105		5.29	%
Total Interest-Bearing Liabilities		57,894		267		1.83	%		58,651		262		1.77	%		332,268		202		0.24	%
Noninterest-bearing deposits		140,454							129,918							124,203
Total Funding Sources		550,358		695		0.50	%		490,645		642		0.52	%		456,471		585		0.51	%
Noninterest-bearing liabilities		3,623							3,021							2,586
Shareholders' equity		79,734							79,025							57,998
Total Liabilities and Shareholders' Equity		633,715							572,691							517,055
Net interest spread						3.87	%						4.05	%						3.97	%
Net interest income				6,081							5,742							5,024
Net interest margin						3.92	%						4.11	%						4.01	%