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Private Bancorp of America, Inc. Announces Completion of Bank Rebrand and First Quarter Financial Results

LA JOLLA, Calif., April 18, 2018 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM)

PBAM announced that its Bank has successfully completed the rebranding from San Diego Private Bank and Divisions to CalPrivate Bank effective March 21, 2018.  PBAM’s President and CEO, Thomas V. Wornham said “We continue to operate as one company throughout our expanded footprint, now under one sign, CalPrivate Bank.  We remain headquartered in La Jolla, CA and continue to serve our clients with locations from Coronado to Beverly Hills.  Our coastal southern California strategy has served us well.  We are most appreciative to our clients, team members and partners who enabled us to make this transition so smoothly.”

PBAM reported the financial results for the first quarter of fiscal year 2018.  Below are some highlights comparing the Year over Year (YOY) comparison of Q1 2018 to Q1 2017:

  • Total Assets increased to $646,230,000, up 20%
  • Total Net Loans increased to $471,635,000, up 13%
  • Total Deposits increased to $504,606,000, up 21%
  • Total Net Interest Income increased to $6,281,802, up 20%
  • Total Non-Interest Expenses increased to $4,846,000, up 46%
  • Net Income decreased to $1,129,000, down 16%

The income statement reflects net interest income growth continuing at healthy levels.  As the attached tables indicate, our challenge remains building our non-interest income businesses. We are addressing this by revamping our SBA group and refocusing our bankers on the highly competitive Treasury Management Products we have developed.

The first quarter reflects continued investment in our organic growth strategy through expansion of our existing footprint and the addition of new talent.  The increase in non-interest expense reflects the one-time cost of rebranding as well as investment in three key future revenue growth drivers. First, the addition of team members and team lift outs and the additional staff required to support them.  This is a large part of the 38% increase in salary and benefit expense.  Second, the addition and expansion of the Beverly Hills location and the relocation and expansion of our Newport location added to our occupancy and equipment expense.  Third, increased volume has increased data processing costs.

While we expect fixed costs to stabilize, the investment in people and business lines that are complementary to our core competencies and meet our clients’ needs will continue.  The recent consolidation and merger activity in the markets we serve has presented us with unique opportunities to acquire seasoned, respected, driven and qualified talent.  These new team members will provide us with greater calling and client service capabilities. The recent senior management additions have given us a deeper “succession Bench”.  Like many other investments, full benefit and returns on our investments are expected to emerge over several quarters.

Our strategy continues to be focused on organically growing through exceptional personnel recruitment, while reviewing merger and acquisition targets with the same disciplined approach we have in the past. Our philosophy remains targeting the markets we know; providing outstanding client experiences though highly qualified, client centric personnel and creative product solutions; resulting in superior shareholder returns.

RELATIONSHIPS – SOLUTIONS - TRUST

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 served through offices in Coronado, San Diego, La Jolla, Newport Beach and Beverly Hills as well as efficient electronic banking offerings. The Bank also offers SBA and cross-border Export-Import Bank programs. CalPrivate Bank is an SBA Preferred Lender and a Bauer Financial 5-Star rated bank.

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, 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   March 31, 2018   March 31, 2018
                  Q-o-Q   Y-o-Y
  SELECT FINANCIAL DATA AND PERFORMANCE RATIOS   March 31, 2018   December 31, 2017   March 31, 2017   change ($) change (%)   change ($) change (%)
  (unaudited)                        
                           
  Common shares outstanding at period-end     5,012,557       5,007,957       4,169,450       4,600   0 %     843,107   20 %
                           
  Book value per common share   $ 16.01     $ 15.88     $ 14.56     $ 0.13   1 %   $ 1.45   10 %
  Tangible book value per common share   $ 15.92     $ 15.79     $ 14.24     $ 0.13   1 %   $ 1.68   12 %
                           
  PERFORMANCE RATIOS (%):                        
  Return on average assets (annualized)     0.72 %     -0.07 %     1.00 %     0.79 % -1149 %     -0.27 % -27 %
  Return on average equity (annualized)     5.74 %     -0.55 %     8.99 %     6.29 % -1149 %     -3.24 % -36 %
  Return on average tangible common equity (annualized)     5.77 %     -0.55 %     9.14 %     6.32 % -1140 %     -3.38 % -37 %
  Net interest margin     3.94 %     3.87 %     4.02 %     0.07 % 2 %     -0.09 % -2 %
  Net interest spread     3.99 %     3.92 %     4.06 %     0.07 % 2 %     -0.07 % -2 %
  Efficiency ratio     75.39 %     64.98 %     59.05 %     10.41 % 16 %     16.34 % 28 %
  Noninterest expense / average assets     2.99 %     2.54 %     2.48 %     0.45 % 18 %     0.51 % 20 %
                           
  CAPITAL RATIOS (%):                        
  Tier 1 leverage ratio     12.03 %     12.11 %     10.63 %     -0.08 % -1 %     1.40 % 13 %
  Tier 1 risk-based capital ratio     15.21 %     14.80 %     13.19 %     0.41 % 3 %     2.02 % 15 %
  Common equity Tier 1 ratio     15.21 %     14.80 %     13.19 %     0.41 % 3 %     2.02 % 15 %
  Total risk-based capital ratio     16.11 %     15.71 %     14.14 %     0.40 % 3 %     1.97 % 14 %
  Tangible equity / tangible assets     12.36 %     11.78 %     11.17 %     0.57 % 5 %     1.18 % 11 %
                           
                  March 31, 2018   March 31, 2018
                  Q-o-Q   Y-o-Y
  CREDIT QUALITY PROFILE AND METRICS:   March 31, 2018   December 31, 2017   March 31, 2017   change ($) change (%)   change ($) change (%)
                           
  Total Loans ($000s)     476,156       497,152       421,410       (20,996 ) -4 %     54,746   13 %
  30-89 day past due loans ($000s)     -       1,424       828       (1,424 ) -100 %     (828 ) -100 %
  90+ day past due loans ($000s)     -       -       -       -   NM       -   NM  
  nonaccrual loans ($000s)     1,499       1,586       137       (87 ) -5 %     1,362   994 %
                           
  NPAs / Assets (%)     0.23 %     0.24 %     0.03 %     (0 ) -2 %     0   811 %
  NPLs / loans & REO (%)     0.32 %     0.32 %     0.03 %     (0 ) -1 %     0   878 %
  Net chargeoffs ($000s)     0       0       0       -   NM       -   NM  
  NCOs / avg loans (annualized) (%)     0 %     0 %     0 %     -   NM       -   NM  
  Reserve ratio (%)     0.95 %     0.91 %     0.95 %     0.04 % 4 %     0.00 % 0 %
  Reserve coverage ratio (%)     302 %     285 %     2933 %     17 % 6 %     -2631 % -90 %
                           
                  March 31, 2018   March 31, 2018
                  Q-o-Q   Y-o-Y
  LOAN PORTFOLIO COMPOSITION ($000s)   March 31, 2018   December 31, 2017   March 31, 2017   change ($) change (%)   change ($) change (%)
  Real estate - investor owned     190,200       189,355       171,221       845   0 %     18,979   11 %
  Real estate - owner occupied     61,706       62,657       47,229       (951 ) -2 %     14,477   31 %
  Real estate - multifamily     60,948       56,500       48,423       4,448   8 %     12,525   26 %
  Real estate - single family     42,646       48,362       52,704       (5,716 ) -12 %     (10,058 ) -19 %
  Commercial business     100,090       113,218       69,965       (13,128 ) -12 %     30,125   43 %
  Land and construction     18,925       24,679       29,957       (5,754 ) -23 %     (11,032 ) -37 %
  Consumer     1,641       1,734       139       (93 ) -5 %     1,502   1081 %
  Other     -       -       -       -   NM       -   NM  
  Total loans held for investment     476,156       496,505       419,638       (20,349 ) -4 %     56,518   13 %
                           
  Loans held for sale     -       647       1,772       (647 ) -100 %     (1,772 ) NM  
  Total loans, including loans held for sale     476,156       497,152       421,410       (20,996 ) -4 %     54,746   13 %
                           
  Allowance for loan losses     (4,521 )     (4,521 )     (4,018 )     -   0 %     (503 ) 13 %
  Net loans     471,635       492,631       417,392       (20,996 ) -4 %     54,243   13 %
                           
  DEPOSIT COMPOSITION ($000S)                        
  Non interest bearing DDA     165,067       160,008       126,485       5,059   3 %     38,582   31 %
  Interest bearing DDA     15,566       16,421       14,772       (855 ) -5 %     794   5 %
  Savings & MMA     277,434       295,075       193,965       (17,641 ) -6 %     83,469   43 %
  Retail CD     7,114       6,035       6,216       1,079   18 %     898   14 %
  Jumbo CD     39,425       53,651       74,866       (14,226 ) -27 %     (35,441 ) -47 %
  Total deposits     504,606       531,190       416,304       (26,584 ) -5 %     88,302   21 %
             

 

  PRIVATE BANCORP OF AMERICA, INC.                      
  SELECTED FINANCIAL DATA  
 
         
                           
                  March 31, 2018   March 31, 2018
                  Q-o-Q   Y-o-Y
  BALANCE SHEET March 31, 2018   December 31, 2017   March 31, 2017   change ($) change (%)   change ($) change (%)
  (unaudited - in $000s)                      
                           
  Assets                      
                           
  Cash and due from banks 15,596     15,128     38,273     468   3 %   (22,677 ) -59 %
  Interest-bearing deposits at Federal Reserve Bank 38,115     87,401     40,419     (49,286 ) -56 %   (2,304 ) -6 %
      53,711     102,529     78,692     (48,818 ) -48 %   (24,981 ) -32 %
  Interest-bearing time deposits with other institutions 2,998     2,997     1,245     1   0 %   1,753   141 %
  Investment securities available for sale 105,828     61,568     29,058     44,260   72 %   76,770   264 %
  Investment securities held to maturity -     -     -              
                           
  Loans 476,156     497,152     421,410     (20,996 ) -4 %   54,746   13 %
  Allowance for loan losses (4,521 )   (4,521 )   (4,018 )   -   0 %   (503 ) 13 %
      471,635     492,631     417,392     (20,996 ) -4 %   54,243   13 %
                           
  Federal Home Loan Bank stock, at cost 2,295     2,295     2,135     -   0 %   160   7 %
  Premises and equipment, net 1,969     1,530     980     439   29 %   989   101 %
  Goodwill -     -     -     -   0 %   -   0 %
  Other intangible assets 465     487     665     (22 ) -5 %   (200 ) -30 %
  Deferred tax asset/liability 4,353     3,879     5,632     474   12 %   (1,279 ) -23 %
  Accrued interest receivable 2,030     1,811     1,273     219   12 %   757   59 %
  Other assets 947     1,518     869     (571 ) -38 %   78   9 %
      646,231     671,245     537,941     (25,014 ) -4 %   108,290   20 %
                           
  Liabilities and Shareholders' Equity                      
                           
  Liabilities                      
  Noninterest Bearing 165,067     162,049     126,486     3,018   2 %   38,581   31 %
  Interest Bearing 339,539     369,141     289,818     (29,602 ) -8 %   49,721   17 %
  Total Deposits 504,606     531,190     416,304     (26,584 ) -5 %   88,302   21 %
  FHLB Borrowings 50,000     50,000     50,000     -   0 %   -   0 %
  Other borrowings 7,899     7,896     7,886     3   0 %   13   0 %
  Accrued interest payable and other liabilities 3,473     2,638     3,047     835   32 %   426   14 %
      565,978     591,724     477,237     (25,746 ) -4 %   88,741   19 %
                           
  Shareholders' equity                      
  Common stock 57,931     57,819     41,065     112   0 %   16,866   41 %
  Additional paid-in capital 2,739     2,607     2,445     132   5 %   294   12 %
  Retained earnings 20,396     19,266     17,160     1,130   6 %   3,236   19 %
  Accumulated other comprehensive income (813 )   (171 )   34     (642 ) 375 %   (847 ) -2491 %
      80,253     79,521     60,704     732   1 %   19,549   32 %
                           
  Total liabilities and shareholders' equity 646,231     671,245     537,941     (25,014 ) -4 %   108,290   20 %
                               

 

  PRIVATE BANCORP OF AMERICA, INC.                        
  SELECTED FINANCIAL DATA  
 
                  March 31, 2018   March 31, 2018
      For the three months ended   Q-o-Q   Y-o-Y
  INCOME STATEMENT   March 31, 2018   December 31, 2017   March 31, 2017   change ($) change (%)   change ($) change (%)
  (unaudited - in $000s, except per share data)                        
                           
  Interest Income                        
  Loans     6,216     6,241       5,501     (25 ) 0 %     715   13 %
  Investment securities     566     321       188     245   76 %     378   201 %
  Deposits in other financial institutions     259     214       119     45   21 %     140   118 %
        7,041     6,776       5,808     265   4 %     1,233   21 %
                           
  Interest Expense                        
  Deposits     477     429       375     48   11 %     102   27 %
  Borrowings     282     267       209     15   6 %     73   35 %
        759     696       584     63   9 %     175   30 %
                           
  Net interest income     6,282     6,080       5,224     202   3 %     1,058   20 %
  Provision for credit losses     -     300       -     (300 ) -100 %     -   NM  
  Net interest income after provision for credit losses     6,282     5,780       5,224     502   9 %     1,058   20 %
                           
  Noninterest income:                        
  Service charges on deposit accounts     71     72       96     (1 ) -1 %     (25 ) -26 %
  Net gain on sale of loans & leases     -     73       146     (73 ) NM       (146 ) -100 %
  Gain (loss) on sale of investment securities     -     -       -     -   NM       -   NM  
  Other noninterest income     75     26       153     49   188 %     (78 ) -51 %
        146     171       395     (25 ) -15 %     (249 ) -63 %
                           
  Noninterest expense:                        
  Salary and employee benefits     3,063     2,581       2,226     482   19 %     837   38 %
  Occupancy and equipment     523     458       318     65   14 %     205   64 %
  Data processing     339     260       289     79   30 %     50   17 %
  Professional services     370     217       168     153   71 %     202   120 %
  Other expenses     551     546       317     5   1 %     234   74 %
        4,846     4,062       3,318     784   19 %     1,528   46 %
                           
  Income before provision for income tax     1,582     1,889       2,301     (307 ) -16 %     (719 ) -31 %
  Provision for income tax     453     1,999       955     (1,546 ) -77 %     (502 ) -53 %
  Net income     1,129     (110 )     1,346     1,239   NM       (217 ) -16 %
  Net income available to common shareholders     1,118     (109 )     1,334     1,227   NM       (216 ) -16 %
                             
  Earnings per share                          
  Basic earnings per share   $ 0.23   $ (0.02 )   $ 0.33   $ 0.25   NM     $ (0.10 ) -31 %
  Diluted earnings per share   $ 0.22   $ (0.02 )   $ 0.32   $ 0.24   NM     $ (0.10 ) -31 %
                           
  Average shares outstanding     4,962,128     4,954,790       4,077,070     7,338   0 %     885,058   22 %
  Diluted average shares outstanding     5,069,098     5,061,760       4,151,730     7,338   0 %     917,368   22 %

 

  PRIVATE BANCORP OF AMERICA, INC.                                  
  SELECTED FINANCIAL DATA  
 
      For the three months ended   For the three months ended   For the three months ended  
      March 31, 2018   December 31, 2017   March 31, 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   65,798   259   1.60 %   78,516   214   1.08 %   61,198   119   0.79 %  
  Investment securities   88,276   566   2.60 %   54,751   321   2.33 %   30,340   188   2.51 %  
  Loans   484,180   6,216   5.21 %   481,667   6,241   5.14 %   429,768   5,501   5.19 %  
  Total interest-earning assets   638,254   7,041   4.47 %   614,934   6,776   4.37 %   521,306   5,808   4.52 %  
  Noninterest-earning assets   18,734           18,781           20,725          
  Total Assets   656,988           633,715           542,031          
                                         
  Interest-Bearing Liabilities                                      
  Interest-bearing transaction accounts   17,002   8   0.19 %   13,469   7   0.21 %   13,490   7   0.21 %  
  Money market   281,175   361   0.52 %   279,626   302   0.43 %   183,483   192   0.42 %  
  Savings deposits   5,516   3   0.22 %   5,230   3   0.23 %   5,734   3   0.21 %  
  Certificates of deposit   53,369   106   0.81 %   53,685   116   0.86 %   89,355   173   0.79 %  
  Total Interest-Bearing Deposits   357,062   478   0.54 %   352,010   428   0.48 %   292,062   375   0.52 %  
                                         
  FHLB advances   49,778   179   1.46 %   50,000   163   1.29 %   50,400   107   0.86 %  
  Other borrowings   7,897   102   5.24 %   7,894   104   5.23 %   7,885   102   5.25 %  
  Total Interest-Bearing Liabilities   57,675   281   1.98 %   57,894   267   1.83 %   58,285   209   1.45 %  
                                         
  Noninterest-bearing deposits   158,611           140,454           129,043          
  Total Funding Sources   573,348   759   0.54 %   550,358   695   0.50 %   479,390   584   0.49 %  
                                         
  Noninterest-bearing liabilities   3,753           3,623           2,556          
                                         
  Shareholders' equity   79,887           79,734           60,085          
                                         
  Total Liabilities and Shareholders' Equity   656,988           633,715           542,031          
                                         
  Net interest spread           3.94 %           3.87 %           4.02 %  
                                         
  Net interest income       6,282           6,081         5,224    
  Net interest margin           3.99 %           3.92 %           4.06 %  

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