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

/EIN News/ -- 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 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 the operations of merged banks, 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.


[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 %

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