• 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		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	%		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				-		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 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		0	%		(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		0	%		13		0	%
	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		0	%		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		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	%

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