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Private Bancorp of America, Inc. Reports Record Growth Ending 2018 at $847,000,000 in Total Assets

GlobeNewswire Thursday, 17 January 2019
· *Total Assets up 20%*
· *Net Loans up 40%*
· *Deposits up 31%*
· *Non-Interest Income up 151%*

LA JOLLA, Calif., Jan. 16, 2019 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM) (“PBAM”), parent company of CalPrivate Bank (“Bank”),  announced unaudited financial results for the fourth quarter and the fiscal year ending December 31, 2018. Total Assets were $847,000,000 at December 31, 2018, a 26% increase of $176,000,000 over Total Assets at December 31, 2017. The asset growth reflects record Loan growth of 40% up $196,000,000 during 2018 to $688,000,000 and a 31% increase in Deposits up $163,000,000 to $696,000,000 for the year. Credit quality remains outstanding with no loans past due more than 30 days. Non-Interest Income was a record $2,315,000 for 2018, up 151% and Net Interest Income increased 30% year over year to $29,250,000. Net interest margin was a healthy 4.52% for the three months ended December 31, 2018.

“2018 was a transformational year for our company” said Thomas V. Wornham, President and CEO of PBAM and CEO of the Bank.  “Our team members executed brilliantly on implementing our accelerated organic growth plans. The previously announced strategy involved investing in great people as they became available in the markets we serve.  Adding great people to an existing team of great people has proven to be a winning formula for us.  We ended the year with 60% more employees than at the beginning of 2018.   We appreciate the support of our customers and shareholders who make our continued success possible.”

The increase in loans resulted in a significant increase in Loan Loss Reserve, $1,731,000, up 244%. The increase in personnel and related support expenses resulted in a 60% increase in Non-interest Expenses for 2018. Together these investments partially offset the significant increase in Net Interest Income resulting in Net Income for 2018 of $4,706,000, up 21% at the Bank level. These same factors impacted PBAM’s Net Income of $4,137,000 and fully-diluted EPS of $0.81.

Rick L Sowers, who joined as President of the Bank in early 2018, said “Our ability to build client relationships based on superior solutions and mutual trust is a factor of attracting and retaining great people. It is our talented team members who drive our growth in quality client relationships through superior client service, producing positive financial results for our shareholders.  It’s a privilege to be a part of the leadership of this team.”

“During the year we rebranded as CalPrivate Bank, reflecting our commitment to establish ourselves as the leading concierge bank in coastal Southern California. We hired key senior executives, including Bob Llorens as Chief Lending Officer and Pete Cifelli as Orange County Market President. We also received approval from the FDIC for a new branch in South Bay Los Angeles (El Segundo, CA) which opened on January fourth 2019. In mid-year we added 13 new hires to our SBA team, who closed $53,000,000 in SBA loans in less than 6 months impressively impacting Non-interest income,” added Mr. Sowers.

Selwyn Isakow, Chairman of PBAM and the Bank noted, “We are very pleased with the growth in 2018 and the successful execution of our organic investment plan.  We anticipated that there would be significant initial expenses related to the talented people we hired and that this year’s earnings would also be impacted by increased provisions to our loan loss reserve related to the expanded loan portfolio. Our credit quality and capital ratios remained strong. We are encouraged by the growth across all offices in 2018, the success of the Beverly Hills office started in 2017 and the future potential of the Bank driven by the exceptional team management has assembled.”

*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, South Bay LA 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 Financial 5 star rated bank, as well as being in the Top 200 safest Banks as rated by Deposits.com.

*Investor Relations Contact *

Thomas V. Wornham
President/CEO
Private Bancorp of America, Inc. and CalPrivate Bank
(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 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 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 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.

*Contact:*
Vince Heald
E-mail: Vince@BEHMedia.com
  PRIVATE BANCORP OF AMERICA, INC.                         SELECTED FINANCIAL DATA       *For the three months ended*   *December 31, 2018*   *December 31, 2018*                 *Q-o-Q*   *Y-o-Y* *SELECT FINANCIAL DATA AND PERFORMANCE RATIOS*   *December 31, 2018*   *September 30, 2018*   *December 31, 2017*   *change ($)* *change (%)*   *change ($)* *change (%)* (unaudited)                                                   Common shares outstanding at period-end     5,052,793       5,047,093       5,008,627       5,700   %     44,166   1 %                           Book value per common share   $ 16.49     $ 16.23     $ 15.88     $ 0.26   2 %   $ 0.61   4 % Tangible book value per common share   $ 16.32     $ 16.07     $ 15.79     $ 0.25   2 %   $ 0.53   3 %                           *PERFORMANCE RATIOS (%):*                         Return on average assets (annualized)     0.52 %     0.62 %     -0.07 %     -0.09 % -15 %     0.59 % -860 % Return on average equity (annualized)     5.03 %     5.35 %     -0.55 %     -0.33 % -6 %     5.58 % -1019 % Return on average tangible common equity (annualized)     5.08 %     5.41 %     -0.55 %     -0.32 % -6 %     5.64 % -1017 % Net interest margin     4.52 %     4.35 %     3.92 %     0.17 % 4 %     0.60 % 15 % Net interest spread     4.45 %     4.28 %     3.87 %     0.17 % 4 %     0.58 % 15 % Efficiency ratio     74.43 %     75.80 %     64.98 %     -1.37 % -2 %     9.45 % 15 % Noninterest expense / average assets     3.47 %     3.57 %     2.54 %     -0.10 % -3 %     0.93 % 36 %                           *CAPITAL RATIOS (%):*                         Tier 1 leverage ratio     10.39 %     11.51 %     12.11 %     -1.12 % -10 %     -1.72 % -14 % Tier 1 risk-based capital ratio     11.36 %     13.01 %     14.80 %     -1.65 % -13 %     -3.44 % -23 % Common equity Tier 1 ratio     11.36 %     13.01 %     14.80 %     -1.65 % -13 %     -3.44 % -23 % Total risk-based capital ratio     12.25 %     13.90 %     15.71 %     -1.65 % -12 %     -3.46 % -22 % Tangible equity / tangible assets     9.74 %     10.83 %     11.78 %     -1.08 % -10 %     -2.04 % -17 %                                           *December 31, 2018*   *December 31, 2018*                 *Q-o-Q*   *Y-o-Y* *CREDIT QUALITY PROFILE AND METRICS:*   *December 31, 2018*   *September 30, 2018*   *December 31, 2017*   *change ($)* *change (%)*   *change ($)* *change (%)*                           Total Loans ($000s)     694,531       582,292       497,152       112,239   19 %     197,379   40 % 30-89 day past due loans ($000s)     -       -       1,424       -   NM       (1,424 ) -100 % 90+ day past due loans ($000s)     -       -       -       -   NM       -   NM   nonaccrual loans ($000s)     -       -       1,586       -   NM       (1,586 ) -100 %                             NPAs / Assets (%)     0.00 %     0.00 %     0.24 %     -   NM       (0 ) -100 % NPLs / loans & REO (%)     0.00 %     0.00 %     0.32 %     -   NM       (0 ) -100 % Net chargeoffs ($000s)                       -   NM       -   NM   NCOs / avg loans (annualized) (%)     0.00 %     0.00 %     0.00 %     -   NM       -   NM   Reserve ratio (%)     0.90 %     0.93 %     0.91 %     -0.03 % -3 %     (0 ) -1 % Reserve coverage ratio (%)   NM   NM     285 %   NM NM   NM NM                                           *December 31, 2018*   *December 31, 2018*                 *Q-o-Q*   *Y-o-Y* *LOAN PORTFOLIO COMPOSITION ($000s)*   *December 31, 2018*   *September 30, 2018*   *December 31, 2017*   *change ($)* *change (%)*   *change ($)* *change (%)* Real estate - investor owned     270,582       213,139       189,355       57,443   27 %     81,227   43 % Real estate - owner occupied     86,216       86,216       62,657       -   %     23,559   38 % Real estate - multifamily     62,388       62,811       56,500       (423 ) -1 %     5,888   10 % Real estate - single family     59,685       63,906       48,362       (4,221 ) -7 %     11,323   23 % Commercial business     180,602       124,770       113,218       55,832   45 %     67,384   60 % Land and construction     24,679       22,640       24,679       2,039   9 %     -   % Consumer     5,255       5,967       1,734       (712 ) -12 %     3,521   203 % Other     -       -       -       -   NM       -   NM   Total loans held for investment     689,407       579,449       496,505       109,958   19 %     192,902   39 %                           Loans held for sale     5,124       2,843       647       2,281   NM       4,477   692 % Total loans, including loans held for sale     694,531       582,292       497,152       112,239   19 %     197,379   40 %                           Allowance for loan losses     (6,252 )     (5,389 )     (4,521 )     (863 ) 16 %     (1,731 ) 38 % Net loans     688,279       576,903       492,631       111,376   19 %     195,648   40 %                           *DEPOSIT COMPOSITION ($000S)*                         Non interest bearing DDA     226,119       180,657       162,049       45,462   25 %     64,070   40 % Interest bearing DDA     21,079       16,481       16,373       4,598   28 %     4,706   29 % Savings & MMA     344,776       294,600       295,075       50,176   17 %     49,701   17 % Retail CD     7,651       6,461       6,035       1,190   18 %     1,616   27 % Jumbo CD     96,838       50,920       53,651       45,918   90 %     43,187   80 % Total deposits     696,463       549,119       533,183       147,344   27 %     163,280   31 %            

PRIVATE BANCORP OF AMERICA, INC.                       SELECTED FINANCIAL DATA                                                     *December 31, 2018*   *December 31, 2018*                 *Q-o-Q*   *Y-o-Y* *BALANCE SHEET* *December 31, 2018*   *September 30, 2018*   *December 31, 2017*   *change ($)* *change (%)*   *change ($)* *change (%)* (unaudited - in $000s)                                                 *Assets*                                                 Cash and due from banks 24,120     24,273     15,128     (153 ) -1 %   8,992   59 % Interest-bearing deposits at Federal Reserve Bank 18,984     33,061     87,401     (14,077 ) -43 %   (68,417 ) -78 %     43,104     57,334     102,529     (14,230 ) -25 %   (59,425 ) -58 % Interest-bearing time deposits with other institutions 2,751     2,749     2,997     2   %   (246 ) -8 % Investment securities available for sale 98,186     99,217     61,568     (1,031 ) -1 %   36,618   59 % Investment securities held to maturity -     -     -                                         Loans 694,531     582,292     497,152     112,239   19 %   197,379   40 % Allowance for loan losses (6,252 )   (5,389 )   (4,521 )   (863 ) 16 %   (1,731 ) 38 %     688,279     576,903     492,631     111,376   19 %   195,648   40 %                           Federal Home Loan Bank stock, at cost 3,310     2,889     2,295     421   15 %   1,015   44 % Premises and equipment, net 2,223     2,067     1,530     156   8 %   693   45 % Goodwill -     -     -     -   NM   -   NM Other intangible assets 884     789     487     95   12 %   397   82 % Deferred tax asset/liability 4,767     4,852     4,233     (85 ) -2 %   534   13 % Accrued interest receivable 2,531     851     1,811     1,680   197 %   720   40 % Other assets 1,119     2,311     1,164     (1,192 ) -52 %   (45 ) -4 %     847,154     749,962     671,245     97,192   13 %   175,909   26 %                           *Liabilities and Shareholders' Equity*                                                 Liabilities                       Noninterest Bearing 226,119     180,657     162,049     45,462   25 %   64,070   40 % Interest Bearing 470,344     368,462     371,134     101,882   28 %   99,210   27 % Total Deposits 696,463     549,119     533,183     147,344   27 %   163,280   31 % FHLB Borrowings 55,000     107,000     50,000     (52,000 ) -49 %   5,000   10 % Other borrowings 7,909     7,906     7,896     3   %   13   % Accrued interest payable and other liabilities 4,461     4,046     645     415   10 %   3,816   592 %     763,833     668,071     591,724     95,762   14 %   172,109   29 %                           Shareholders' equity                       Common stock 58,373     58,242     57,857     131   %   516   1 % Additional paid-in capital 2,863     2,791     2,569     72   3 %   294   11 % Retained earnings 23,365     22,318     19,265     1,047   5 %   4,100   21 % Accumulated other comprehensive income (1,280 )   (1,460 )   (170 )   180   -12 %   (1,110 ) 653 %     83,321     81,891     79,521     1,430   2 %   3,800   5 %                           Total liabilities and shareholders' equity 847,154     749,962     671,245     97,192   13 %   175,909   26 %                

PRIVATE BANCORP OF AMERICA, INC.                 SELECTED FINANCIAL DATA                 *December 31, 2018*     *For the year ended*   *Y-o-Y* *INCOME STATEMENT*   *December 31, 2018*     *December 31, 2017*   *change ($)* *change (%)* (unaudited - in $000s, except per share data)                                   *Interest Income*                 Loans     30,219         23,401     6,818   29 % Investment securities     2,699         923     1,776   192 % Deposits in other financial institutions     704         666     38   6 %       33,622         24,990     8,632   35 %                   *Interest Expense*                 Deposits     2,405         1,523     882   58 % Borrowings     1,967         962     1,005   104 %       4,372         2,485     1,887   76 %                   *Net interest income*     29,250         22,505     6,745   30 % Provision for credit losses     1,731         503     1,228   244 % *Net interest income after provision for credit losses*     27,519         22,002     5,517   25 %                   *Noninterest income:*                 Service charges on deposit accounts     258         249     9   4 % Net gain on sale of loans & leases     1,670         311     1,359   437 % Gain (loss) on sale of investment securities     (13 )       8     (21 ) -263 % Other noninterest income     400         356     44   12 %       2,315         924     1,391   151 %                   *Noninterest expense:*                 Salary and employee benefits     15,943         9,616     6,327   66 % Occupancy and equipment     2,310         1,637     673   41 % Data processing     1,902         1,093     809   74 % Professional services     1,248         873     375   43 % Other expenses     2,582         1,787     795   44 %       23,985         15,006     8,979   60 %                   *Income before provision for income tax*     5,849         7,921     (2,072 ) -26 % Provision for income tax     1,712         4,496     (2,784 ) -62 % *Net income*     4,137         3,425     712   21 % Net income available to common shareholders     4,073         3,395     678   20 %                   *Earnings per share*                 Basic earnings per share   $ 0.82       $ 0.72   $ 0.10   14 % Diluted earnings per share   $ 0.80       $ 0.71   $ 0.09   12 %                   Average shares outstanding     4,959,314         4,697,526     261,788   6 % Diluted average shares outstanding     5,136,987         4,804,496     332,491   7 %                              

PRIVATE BANCORP OF AMERICA, INC.                         SELECTED FINANCIAL DATA                   *December 31, 2018*   *December 31, 2018*     *For the three months ended*   *Q-o-Q*   *Y-o-Y* *INCOME STATEMENT*   *December 31, 2018*   *September 30, 2018*   *December 31, 2017*   *change ($)* *change (%)*   *change ($)* *change (%)* (unaudited - in $000s, except per share data)                                                   *Interest Income*                         Loans     9,459       7,772       6,241       1,687   22 %     3,218   52 % Investment securities     747       698       321       49   7 %     426   133 % Deposits in other financial institutions     127       174       214       (47 ) -27 %     (87 ) -41 %       10,333       8,644       6,776       1,689   20 %     3,557   52 %                           *Interest Expense*                         Deposits     860       592       429       268   45 %     431   100 % Borrowings     710       582       267       128   22 %     443   166 %       1,570       1,174       696       396   34 %     874   126 %                           *Net interest income*     8,763       7,470       6,080       1,293   17 %     2,683   44 % Provision for credit losses     863       496       300       367   74 %     563   188 % *Net interest income after provision for credit losses*     7,900       6,974       5,780       926   13 %     2,120   37 %                           *Noninterest income:*                         Service charges on deposit accounts     96       90       72       6   7 %     24   33 % Net gain on sale of loans & leases     410       749       73       (339 ) -45 %     337   NM Gain (loss) on sale of investment securities     (13 )     (6 )     -       (7 ) 117 %     (13 ) NM Other noninterest income     68       83       26       (15 ) -18 %     42   162 %       561       916       171       (355 ) -39 %     390   228 %                           *Noninterest expense:*                         Salary and employee benefits     4,741       4,269       2,581       472   11 %     2,160   84 % Occupancy and equipment     620       610       458       10   2 %     162   35 % Data processing     541       487       260       54   11 %     281   108 % Professional services     350       288       217       62   22 %     133   61 % Other expenses     688       703       546       (15 ) -2 %     142   26 %       6,940       6,357       4,062       583   9 %     2,878   71 %                           *Income before provision for income tax*     1,521       1,533       1,889       (12 ) -1 %     (368 ) -19 % Provision for income tax     474       435       1,999       39   9 %     (1,525 ) -76 % Net income     1,047       1,098       (110 )     (51 ) -5 %     1,157   -1052 % *Net income available to common shareholders*     1,025       1,081       (109 )     (56 ) -5 %     1,134   -1040 %                           *Earnings per share*                         Basic earnings per share   $ 0.21     $ 0.22     $ (0.02 )   $ (0.01 ) -5 %   $ 0.23   -1051 % Diluted earnings per share   $ 0.20     $ 0.21     $ (0.02 )   $ (0.01 ) -6 %   $ 0.22   -1096 %                           Average shares outstanding     4,970,090       4,967,905       4,948,981       2,185   %     21,109   % Diluted average shares outstanding     5,147,858       5,087,829       5,071,375       60,029   1 %     76,483   2 %                                                  

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, 2018*   *September 30, 2018*   *December 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   24,810   127   2.03 %   36,585   174   1.89 %   78,516   214   1.08 %   Investment securities   102,746   747   2.88 %   103,618   698   2.67 %   54,751   321   2.33 %   Loans   640,963   9,459   5.85 %   541,049   7,772   5.70 %   481,667   6,241   5.14 %   Total interest-earning assets   768,519   10,333   5.33 %   681,252   8,644   5.03 %   614,934   6,776   4.37 %   Noninterest-earning assets   24,752           24,817           18,781           *Total Assets*   793,271           706,069           633,715                                                   *Interest-Bearing Liabilities*                                       Interest-bearing transaction accounts   17,890   9   0.20 %   15,649   8   0.20 %   13,469   7   0.21 %   Money market   306,361   530   0.69 %   277,216   394   0.56 %   279,626   302   0.43 %   Savings deposits   6,385   4   0.25 %   5,580   4   0.28 %   5,230   3   0.23 %   Certificates of deposit   70,416   317   1.79 %   56,743   186   1.30 %   53,685   116   0.86 %   *Total Interest-Bearing Deposits*   401,052   860   0.85 %   355,188   592   0.66 %   352,010   428   0.48 %                                           FHLB advances   97,918   605   2.45 %   83,978   478   2.26 %   50,000   163   1.29 %   Other borrowings   7,907   105   5.27 %   7,904   104   5.22 %   7,894   104   5.23 %   *Total Interest-Bearing Liabilities*   105,825   710   2.66 %   91,882   582   2.51 %   57,894   267   1.83 %                                           Noninterest-bearing deposits   199,588           173,335           140,454           *Total Funding Sources*   706,465   1,570   0.88 %   620,405   1,174   0.75 %   550,358   695   0.50 %                                           Noninterest-bearing liabilities   4,200           4,300           3,623                                                   Shareholders' equity   82,606           81,364           79,734                                                   *Total Liabilities and Shareholders' Equity*   793,271           706,069           633,715                                                   Net interest spread           4.45 %           4.28 %           3.87 %                                           Net interest income       8,763           7,470         6,081     Net interest margin           4.52 %           4.35 %           3.92 %  
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