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


  • 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 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.

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 0%  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)  0   0   0   - 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% NMNM NMNM
              
         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   - 0%  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%  - 0%
 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 SHEETDecember 31, 2018 September 30, 2018 December 31, 2017 change ($)change (%) change ($)change (%)
 (unaudited - in $000s)           
              
 Assets           
              
 Cash and due from banks24,120  24,273  15,128  (153)-1% 8,992 59%
 Interest-bearing deposits at Federal Reserve Bank18,984  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 institutions2,751  2,749  2,997  2 0% (246)-8%
 Investment securities available for sale98,186  99,217  61,568  (1,031)-1% 36,618 59%
 Investment securities held to maturity-  -  -       
              
 Loans694,531  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 cost3,310  2,889  2,295  421 15% 1,015 44%
 Premises and equipment, net2,223  2,067  1,530  156 8% 693 45%
 Goodwill-  -  -  - NM - NM
 Other intangible assets884  789  487  95 12% 397 82%
 Deferred tax asset/liability4,767  4,852  4,233  (85)-2% 534 13%
 Accrued interest receivable2,531  851  1,811  1,680 197% 720 40%
 Other assets1,119  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 Bearing226,119  180,657  162,049  45,462 25% 64,070 40%
 Interest Bearing470,344  368,462  371,134  101,882 28% 99,210 27%
 Total Deposits696,463  549,119  533,183  147,344 27% 163,280 31%
 FHLB Borrowings55,000  107,000  50,000  (52,000)-49% 5,000 10%
 Other borrowings7,909  7,906  7,896  3 0% 13 0%
 Accrued interest payable and other liabilities4,461  4,046  645  415 10% 3,816 592%
   763,833  668,071  591,724  95,762 14% 172,109 29%
              
 Shareholders' equity           
 Common stock58,373  58,242  57,857  131 0% 516 1%
 Additional paid-in capital2,863  2,791  2,569  72 3% 294 11%
 Retained earnings23,365  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' equity847,154  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 0%  21,109 0%
 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%