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Private Bancorp of America, Inc. Continues Strong Growth

Thu 18th October, 2018 12:23am
Private Bancorp of America, Inc. Continues Strong Growth

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%   47,6661%
             
Book value per common share  $  16.23  $  16.01  $  15.94  $  0.211%  $  0.282%
Tangible book value per common share  $  16.07  $  15.92  $  15.84  $  0.151%  $  0.231%
             
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   49,9969%   131,82429%
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% NMNM  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   11,1146%   29,55216%
Real estate - owner occupied   86,216   62,839   46,501   23,37737%   39,71585%
Real estate - multifamily   62,811   66,024   52,595   (3,213)-5%   10,21619%
Real estate - single family   63,906   54,449   51,225   9,45717%   12,68125%
Commercial business   124,770   118,296   93,860   6,4745%   30,91033%
Land and construction   22,640   22,913   20,585   (273)-1%   2,05510%
Consumer   5,967   5,750   318   2174%   5,6491776%
Other   -    -    -    - NM   - NM
Total loans held for investment   579,449   532,296   448,671   47,1539%   130,77829%
             
Loans held for sale   2,843   -    1,797   2,843NM   1,04658%
Total loans, including loans held for sale   582,292   532,296   450,468   49,9969%   131,82429%
             
Allowance for loan losses   (5,389)   (4,893)   (4,221)   (496)10%   (1,168)28%
Net loans   576,903   527,403   446,247   49,5009%   130,65629%
             
DEPOSIT COMPOSITION ($000S)            
Non interest bearing DDA   180,657   165,610   124,055   15,0479%   56,60246%
Interest bearing DDA   16,481   17,437   10,963   (956)-5%   5,51850%
Savings & MMA   294,600   295,743   258,235   (1,143)0%   36,36514%
Retail CD   6,461   7,294   6,793   (833)-11%   (332)-5%
Jumbo CD   50,920   42,397   48,064   8,52320%   2,8566%
Total deposits   549,119   528,481   448,110   20,6384%   101,00923%
             


PRIVATE BANCORP OF AMERICA, INC.           
SELECTED FINANCIAL DATA           
             
             
             
        September 30, 2018 September 30, 2018
        Q-o-Q Y-o-Y
BALANCE SHEETSeptember 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   1,5857%   10,91082%
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%   53,705118%
Investment securities held to maturity  -    -    -       
             
Loans  582,292   532,296   450,468   49,9969%   131,82429%
Allowance for loan losses  (5,389)   (4,893)   (4,221)   (496)10%   (1,168)28%
    576,903   527,403   446,247   49,5009%   130,65629%
             
Federal Home Loan Bank stock, at cost  2,889   2,878   2,295   110%   59426%
Premises and equipment, net  2,067   2,202   1,416   (135)-6%   65146%
Goodwill  -    -    -    - NM   - NM
Other intangible assets  789   443   503   34678%   28657%
Deferred tax asset/liability  4,852   4,776   5,553   762%   (701)-13%
Accrued interest receivable  851   851   1,450   - 0%   (599)-41%
Other assets  2,311   8,574   800   (6,263)-73%   1,511189%
    749,962   710,636   590,472   39,3266%   159,49027%
             
Liabilities and Shareholders' Equity           
             
Liabilities           
Noninterest Bearing   180,657   165,611   124,055   15,0469%   56,60246%
Interest Bearing  368,462   362,870   324,055   5,5922%   44,40714%
Total Deposits  549,119   528,481   448,110   20,6384%   101,00923%
FHLB Borrowings  107,000   90,000   50,000   17,00019%   57,000114%
Other borrowings  7,906   7,902   7,892   40%   140%
Accrued interest payable and other liabilities  4,046   3,415   4,756   63118%   (710)-15%
    668,071   629,798   510,758   38,2736%   157,31331%
             
Shareholders' equity           
Common stock  58,242   58,167   57,684   750%   5581%
Additional paid-in capital  2,791   2,715   2,528   763%   26310%
Retained earnings  22,318   21,254   19,350   1,0645%   2,96815%
Accumulated other comprehensive income  (1,460)   (1,298)   152   (162)12%   (1,612)-1061%
    81,891   80,838   79,714   1,0531%   2,1773%
             
Total liabilities and shareholders' equity  749,962   710,636   590,472   39,3266%   159,49027%
             


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   3,59921%
Investment securities   1,952    601   1,351225%
Deposits in other financial institutions   577    452   12528%
    23,289    18,214   5,07528%
         
Interest Expense        
Deposits    1,545    1,095   45041%
Borrowings   1,257    695   56281%
    2,802    1,790   1,01257%
         
Net interest income   20,487    16,424   4,06325%
Provision for credit losses   868    203   665328%
Net interest income after provision for credit losses   19,619    16,221   3,39821%
         
Noninterest income:        
Service charges on deposit accounts   276    255   218%
Net gain on sale of loans & leases   1,261    237   1,024432%
Gain (loss) on sale of investment securities   -     8   (8)-100%
Other noninterest income   217    195   2211%
    1,754    695   1,059152%
         
Noninterest expense:        
Salary and employee benefits   11,202    7,035   4,16759%
Occupancy and equipment   1,690    1,178   51243%
Data processing   1,361    833   52863%
Professional services   898    656   24237%
Other expenses   1,894    1,183   71160%
    17,045    10,885   6,16057%
         
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   6,3650%
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   1,00115%   1,81030%
Investment securities   698   689   227   91%   471207%
Deposits in other financial institutions   174   144   195   3021%   (21)-11%
    8,644   7,604   6,384   1,04014%   2,26035%
             
Interest Expense            
Deposits    592   476   379   11624%   21356%
Borrowings   582   393   263   18948%   319121%
    1,174   869   642   30535%   53283%
             
Net interest income   7,470   6,735   5,742   73511%   1,72830%
Provision for credit losses   496   372   17   12433%   4792818%
Net interest income after provision for credit losses   6,974   6,363   5,725   61110%   1,24922%
             
Noninterest income:            
Service charges on deposit accounts   90   115   77   (25)-22%   1317%
Net gain on sale of loans & leases   749   473   -    27658%   749NM
Gain (loss) on sale of investment securities   (6)   7   -    (13)-186%   (6)NM
Other noninterest income   83   96   45   (13)-14%   3884%
    916   691   122   22533%   794651%
             
Noninterest expense:            
Salary and employee benefits   4,269   3,870   2,492   39910%   1,77771%
Occupancy and equipment   610   558   466   529%   14431%
Data processing   487   534   278   (47)-9%   20975%
Professional services   288   240   175   4820%   11365%
Other expenses   703   639   457   6410%   24654%
    6,357   5,841   3,868   5169%   2,48964%
             
Income before provision for income tax   1,533   1,213   1,979   32026%   (446)-23%
Provision for income tax    435   350   815   8524%   (380)-47%
Net income   1,098   863   1,164   23527%   (66)-6%
Net income available to common shareholders   1,081   855   1,154   22626%   (73)-6%
             
Earnings per share            
Basic earnings per share  $  0.22  $  0.17  $  0.23  $  0.0528%  $  (0.02)-7%
Diluted earnings per share  $  0.21  $  0.17  $  0.23  $  0.0528%  $  (0.02)-7%
             
Average shares outstanding   4,967,905   4,954,863   4,941,023   13,0420%   26,8821%
Diluted average shares outstanding   5,087,829   5,074,321   5,057,025   13,5080%   30,8041%
             


                   
  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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