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Private Bancorp of America, Inc. Announces Continued Strong Growth

/EIN News/ -- LA JOLLA, Calif., Oct. 18, 2017 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM)

Private Bancorp of America (“Bancorp”), parent company of San Diego Private Bank (“Bank”), announced quarterly earnings of $1,164,308 in the third quarter of 2017, compared to $1,024,774 in the second quarter 2017 and $1,076,420 for the third quarter 2016.  Net Interest Income continues to increase, $5,742,000 for the three months ended September 30, 2017 from $4,792,000 for the same period in 2016.  Net Interest Income grew to $16,425,000 for the nine months ending September 2017 compared to $14,027,000 for the same period in 2016 (up 17.1%), reflecting the growth in earning assets.  The major factor contributing to the increase in year-over-year expenses for the nine months is the cost associated with opening the new Beverly Hills location, roughly $557,000 year to date. The decrease in Other Income reflects a reduction of SBA Loan sales in the nine months ended September 30, 2017.

The balance sheet reflects continued record organic growth.  Total assets at September 30, 2017 were $590 million compared to $498 million at September 30, 2016 (18.6% increase year over year) and $545 million at December 31, 2016 (8.1% increase for the nine months).  Net Loans increased 14% year over year at September 30, 2017 to $446 million, and increased 3% for the nine months from December 31, 2016.  Total Deposits increased during the quarter to $448 million at September 30, 2017, up over 19%.

“We are very proud of team members who have worked diligently to both expand our product offerings in our traditional footprint and successfully open our new Beverly Hills location.  We believe that the enhanced geographic platform, compliance and product investments we have made will continue to serve our customers and our shareholders well,” said Thomas V. Wornham, President and CEO.  “Our Beverly Hills investment is already paying off; we opened in July and the team is producing outstanding results.  Our credit quality remains strong as do all of our key leverage, capital and asset quality ratios.”

Bancorp Chairman Selwyn Isakow commented, “We are pleased with the growth of the Bank and the positive revenue trends we see in the Bancorp.  We are delighted to have successfully opened Beverly Hills as a part of our Southern California Coastal strategy.   Our Directors, Management and Employees remain committed to providing creative solutions for our clients while providing superior service to the individuals, families and companies we serve.”

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]

 
      For the three months ended   September 30, 2017   September 30, 2017
                  Q-o-Q   Y-o-Y
  SELECT FINANCIAL DATA AND PERFORMANCE RATIOS      September 30, 2017   June 30, 2017   September 30, 2016   change ($) change (%)   change ($) change (%)
  (unaudited)                        
                           
  Common shares outstanding at period-end       4,999,427         4,989,211         4,082,989         10,216   0 %       916,438   22 %
                           
  Book value per common share   $   15.94     $   15.70     $   14.01     $   0.24   2 %   $   1.94   14 %
  Tangible book value per common share   $   15.84     $   15.58     $   13.84     $   0.26   2 %   $   2.00   14 %
                           
  PERFORMANCE RATIOS (%):                        
  Return on average assets (annualized)     0.81 %     0.76 %     0.89 %     0.05 % 6 %     -0.08 % -9 %
  Return on average equity (annualized)     5.84 %     5.66 %     7.54 %     0.19 % 3 %     -1.70 % -22 %
  Return on average tangible common equity (annualized)     5.87 %     6.14 %     7.63 %     -0.28 % -5 %     -1.76 % -23 %
  Net interest margin     4.11 %     4.20 %     4.09 %     -0.09 % -2 %     0.02 % 1 %
  Net interest spread     4.05 %     4.14 %     4.04 %     -0.10 % -2 %     0.01 % 0 %
  Efficiency ratio     65.96 %     65.64 %     62.01 %     0.32 % 0 %     3.95 % 6 %
  Noninterest expense / average assets     2.68 %     2.74 %     2.55 %     -0.06 % -2 %     0.13 % 5 %
                           
  CAPITAL RATIOS (%):                        
  Tier 1 leverage ratio     14.31 %     14.89 %     11.23 %     -0.58 % -4 %     3.08 % 27 %
  Tier 1 risk-based capital ratio     17.08 %     16.81 %     12.83 %     0.27 % 2 %     4.25 % 33 %
  Common equity Tier 1 ratio     17.08 %     16.81 %     12.83 %     0.27 % 2 %     4.25 % 33 %
  Total risk-based capital ratio     18.00 %     17.73 %     13.73 %     0.27 % 2 %     4.27 % 31 %
  Tangible equity / tangible assets     13.43 %     13.77 %     11.36 %     -0.34 % -2 %     2.06 % 18 %
                           
                  September 30, 2017   September 30, 2017
              Q-o-Q   Y-o-Y
  CREDIT QUALITY PROFILE AND METRICS:   September 30, 2017   June 30, 2017   September 30, 2016   change ($) change (%)   change ($) change (%)
                           
  Total Loans ($000s)       450,468         453,207         394,937         (2,739 ) -1 %       55,531   14 %
  30-89 day past due loans ($000s)       -          1,530         -          (1,530 ) -100 %       -    NM  
  90+ day past due loans ($000s)       -          -          -          -    NM         -    NM  
  nonaccrual loans ($000s)       1,606         139         195         1,467   1055 %       1,411   724 %
                           
  NPAs / Assets (%)     0.27 %     0.02 %     0.04 %       0   1005 %       0   595 %
  NPLs / loans & REO (%)     0.36 %     0.03 %     0.05 %       0   1073 %       0   622 %
  Net chargeoffs ($000s)     0       0       0         -    NM         -    NM  
  NCOs / avg loans (annualized) (%)     0 %     0 %     0 %       -    NM         -    NM  
  Reserve ratio (%)     0.94 %     0.93 %     0.93 %     0.01 % 1 %     0.01 % 1 %
  Reserve coverage ratio (%)     263 %     3024 %     1877 %     -2762 % -91 %     -1614 % -86 %
                           
                  September 30, 2017   September 30, 2017
              Q-o-Q   Y-o-Y
  LOAN PORTFOLIO COMPOSITION ($000s)   September 30, 2017   June 30, 2017   September 30, 2016   change ($) change (%)   change ($) change (%)
  Real estate - investor owned       183,587         183,936         153,013         (349 ) 0 %       30,574   20 %
  Real estate - owner occupied       46,501         48,086         47,713         (1,585 ) -3 %       (1,212 ) -3 %
  Real estate - multifamily       52,595         49,518         43,953         3,077   6 %       8,642   20 %
  Real estate - single family       51,225         54,559         53,235         (3,334 ) -6 %       (2,010 ) -4 %
  Commercial business       93,860         89,739         67,266         4,121   5 %       26,594   40 %
  Land and construction       20,585         25,461         29,510         (4,876 ) -19 %       (8,925 ) -30 %
  Consumer       318         258         247         60   23 %       71   29 %
  Leases       -          -              -    NM         -    NM  
  Other       -          -              -    NM         -    NM  
  Total loans held for investment       448,671         451,557         394,937         (2,886 ) -1 %       53,734   14 %
                           
  Loans held for sale       1,797         1,650             147   9 %       1,797   NM  
  Total loans, including loans held for sale       450,468         453,207         394,937         (2,739 ) -1 %       55,531   14 %
                           
  Allowance for loan losses       (4,221 )       (4,204 )       (3,660 )       (17 ) 0 %       (561 ) 15 %
  Net loans       446,247         449,003         391,277         (2,756 ) -1 %       54,970   14 %
                           
  DEPOSIT COMPOSITION ($000S)                        
  Non interest bearing DDA       124,055         120,197         111,244         3,858   3 %       12,811   12 %
  Interest bearing DDA       10,963         14,616         12,231         (3,653 ) -25 %       (1,268 ) -10 %
  Savings & MMA       258,235         193,396         171,943         64,839   34 %       86,292   50 %
  Retail CD       6,793         5,703         5,480         1,090   19 %       1,313   24 %
  Jumbo CD       48,064         57,424         74,577         (9,360 ) -16 %       (26,513 ) -36 %
  Total deposits       448,110         391,336         375,475         56,774   15 %       72,635   19 %
             


                             
                  September 30, 2017   September 30, 2017  
                  Q-o-Q   Y-o-Y  
  BALANCE SHEET September 30, 2017   June 30, 2017   September 30, 2016   change ($) change (%)   change ($) change (%)  
  (unaudited - in $000s)                        
                             
  Assets                        
                             
  Cash and due from banks   13,363       12,179       19,427       1,184   10 %     (6,064 ) -31 %  
  Interest-bearing deposits at Federal Reserve Bank   70,336       57,189       45,873       13,147   23 %     24,463   53 %  
        83,699       69,368       65,300       14,331   21 %     18,399   28 %  
  Interest-bearing time deposits with other institutions    2,997       2,997       1,245       -    0 %     1,752   141 %  
  Investment securities available for sale   45,512       31,693       28,839       13,819   44 %     16,673   58 %  
  Investment securities held to maturity   -        -        -                 
                             
  Loans   450,468       453,207       394,937       (2,739 ) -1 %     55,531   14 %  
  Allowance for loan losses   (4,221 )     (4,204 )     (3,660 )     (17 ) 0 %     (561 ) 15 %  
        446,247       449,003       391,277       (2,756 ) -1 %     54,970   14 %  
                             
  Federal Home Loan Bank stock, at cost   2,295       2,295       2,135       -    0 %     160   7 %  
  Premises and equipment, net   1,416       1,187       925       229   19 %     491   53 %  
  Goodwill   -        -        -                 
  Other intangible assets   503       609       681       (106 ) -17 %     (178 ) -26 %  
  Deferred tax asset/liability   5,553       5,532       5,442       21   0 %     111   2 %  
  Accrued interest receivable   1,450       1,376       1,166       74   5 %     284   24 %  
  Other assets   800       841       1,038       (41 ) -5 %     (238 ) -23 %  
        590,472       564,901       498,048       25,571   5 %     92,424   19 %  
                             
  Liabilities and Shareholders' Equity                        
                             
  Liabilities                        
  Noninterest Bearing    124,055       120,197       111,244       3,858   3 %     12,811   12 %  
  Interest Bearing   324,055       271,139       264,231       52,916   20 %     59,824   23 %  
  Total Deposits   448,110       391,336       375,475       56,774   15 %     72,635   19 %  
  FHLB Borrowings   50,000       85,000       55,000       (35,000 ) -41 %     (5,000 ) -9 %  
  Other borrowings   7,892       7,889       7,879       3   0 %     13   0 %  
  Accrued interest payable and other liabilities   4,756       2,339       2,494       2,417   103 %     2,262   91 %  
        510,758       486,564       440,848       24,194   5 %     69,910   16 %  
                             
  Shareholders' equity                        
  Common stock   57,684       57,426       39,946       258   0 %     17,738   44 %  
  Additional paid-in capital   2,528       2,543       2,490       (15 ) -1 %     38   2 %  
  Retained earnings   19,350       18,184       14,447       1,166   6 %     4,903   34 %  
  Accumulated other comprehensive income   152       184       317       (32 ) -17 %     (165 ) -52 %  
        79,714       78,337       57,200       1,377   2 %     22,514   39 %  
                             
  Total liabilities and shareholders' equity   590,472       564,901       498,048       25,571   5 %       92,424   19 %  
                                 

 

 
                  September 30, 2017   September 30, 2017
      For the three months ended   Q-o-Q   Y-o-Y
  INCOME STATEMENT   September 30, 2017   June 30, 2017   September 30, 2016   change ($) change (%)   change ($) change (%)
  (unaudited - in $000s, except per share data)                        
                           
  Interest Income                        
  Loans       5,962       5,697         5,070       265   5 %       892   18 %
  Investment securities       227       186         185       41   22 %       42   23 %
  Deposits in other financial institutions       195       138         63       57   41 %       132   210 %
          6,384       6,021         5,318       363   6 %       1,066   20 %
                           
  Interest Expense                        
  Deposits        379       340         325       39   11 %       54   17 %
  Borrowings       263       223         201       40   18 %       62   31 %
          642       563         526       79   14 %       116   22 %
                           
  Net interest income       5,742       5,458         4,792       284   5 %       950   20 %
  Provision for credit losses       17       186         63       (169 ) NM         (46 ) -73 %
  Net interest income after provision for credit losses       5,725       5,272         4,729       453   9 %       996   21 %
                           
  Noninterest income:                        
  Service charges on deposit accounts       77       82         77       (5 ) -6 %       -    0 %
  Net gain on sale of loans & leases       -        237         -        (237 ) -100 %       -    NM  
  Gain (loss) on sale of investment securities       -        8         -        (8 ) NM         -    NM  
  Other noninterest income       45       (150 )       119       195   -130 %       (74 ) -62 %
          122       177         196       (55 ) -31 %       (74 ) -38 %
                           
  Noninterest expense:                        
  Salary and employee benefits       2,492       2,318         2,015       174   8 %       477   24 %
  Occupancy and equipment       466       393         298       73   19 %       168   56 %
  Data processing       278       265         294       13   5 %       (16 ) -5 %
  Professional services       175       314         149       (139 ) -44 %       26   17 %
  Other expenses       457       409         337       48   12 %       120   36 %
          3,868       3,699         3,093       169   5 %       775   25 %
                           
  Income before provision for income tax       1,979       1,750         1,832       229   13 %       147   8 %
  Provision for income tax        815       725         756       90   12 %       59   8 %
  Net income available to common shareholders       1,164       1,025         1,076       139   14 %       88   8 %
                           
  Earnings per share                        
  Basic earnings per share   $   0.25   $   0.23     $   0.27   $   0.02   9 %   $   (0.01 ) -5 %
  Diluted earnings per share   $   0.25   $   0.23     $   0.26   $   0.02   10 %   $   (0.01 ) -5 %
                           
  Average shares outstanding       4,596,013       4,413,085         4,041,173       182,928   4 %       554,840   14 %
  Diluted average shares outstanding       4,712,015       4,545,771         4,155,779       166,244   4 %       556,236   13 %


                                                         
      For the three months ended   For the three months ended   For the three months ended  
      September 30, 2017   June 30, 2017   September 30, 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   65,682   195   1.18 %   58,122   138   0.95 %   49,673   63   0.50 %  
  Investment securities   40,053   227   2.25 %   31,932   186   2.34 %   31,360   185   2.34 %  
  Loans   448,915   5,962   5.27 %   431,644   5,697   5.29 %   384,250   5,070   5.23 %  
  Total interest-earning assets   554,650   6,384   4.57 %   521,698   6,021   4.63 %   465,283   5,318   4.53 %  
  Noninterest-earning assets   18,041           19,251           15,356          
  Total Assets   572,691           540,949           480,639          
                                         
  Interest-Bearing Liabilities                                      
  Interest-bearing transaction accounts   12,376   6   0.19 %   15,170   7   0.19 %   12,381   6   0.19 %  
  Money market   227,391   242   0.42 %   189,070   198   0.42 %   162,279   171   0.42 %  
  Savings deposits   5,551   3   0.21 %   5,673   3   0.21 %   5,562   3   0.21 %  
  Certificates of deposit   56,758   129   0.90 %   63,612   132   0.83 %   69,613   145   0.83 %  
  Total Interest-Bearing Deposits   302,076   380   0.50 %   273,525   340   0.50 %   249,835   325   0.52 %  
                                         
  FHLB advances   50,761   158   1.23 %   50,385   120   0.96 %   50,544   97   0.76 %  
  Other borrowings   7,890   104   5.23 %   7,886   103   5.24 %   7,877   104   5.24 %  
  Total Interest-Bearing Liabilities   58,651   262   1.77 %   58,271   223   1.53 %   308,256   201   0.26 %  
                                         
  Noninterest-bearing deposits   129,918           134,087           113,433          
  Total Funding Sources   490,645   642   0.52 %   465,883   563   0.48 %   421,689   526   0.49 %  
                                         
  Noninterest-bearing liabilities   3,021           2,385           2,330          
                                         
  Shareholders' equity   79,025           72,681           56,620          
                                         
  Total Liabilities and Shareholders' Equity            572,691           540,949           480,639          
                                         
  Net interest spread           4.05 %           4.14 %           4.04 %  
                                         
  Net interest income       5,742           5,458           4,792    
  Net interest margin           4.11 %           4.20 %           4.09 %  

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