Market Overview

Private Bancorp of America, Inc. Announces 20% Increase in Quarterly Earnings and Closing of $17 Million Private Placement of Common Stock


LA JOLLA, Calif., April 19, 2017 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQB:PBAM)

Private Bancorp of America, Inc. (the "Company"), parent company of San Diego Private Bank (the "Bank"), announced quarterly earnings of $1.346 million for the first quarter of 2017, a 20 percent increase over the same quarter in 2016.  Net Interest Income continues to increase and was $5.224 million for the three months ended March 31, 2017 compared to $4.630 million for the same period of 2016.  The year-over-year growth in Interest Income to $5.808 million for the three months ended March 2017 reflects the growth in earning assets. 

The balance sheet reflects strong organic growth in all areas.  Total assets at March 31, 2017 were $538 million vs. $447 million at March 31, 2016, a 20% increase.  Net loans also increased 20% year over year to $417 million.  Total deposits at March 31, 2017 were $416 million, up 26% over the same date of the prior year.  The new Treasury Management Products (ONE) and enhanced Deposit Team continues to help drive continued demand deposits growth.

Credit quality remained strong; the Bank's Texas Ratio at March 31, 2017 was 0.20%.  Capital levels at the Bank also remained well above "well capitalized" levels.

"2017 has continued the positive trends established in the second half of 2016.  We are very proud of our employees who continue to turn the investments we made in the first half of 2016 into profitable tools for our customers in 2017.  We believe that the enhanced platform, compliance and product investments we have made will continue to serve our customers, the bank and our shareholders well," said Thomas V. Wornham, President and CEO.  "The 18% growth in EPS is another strong indicator of continued progress."

Chairman Selwyn Isakow commented "We are very pleased with the performance and underlying trends of the Company.   This quarter we received approval to expand our "Distinctly Different" business model to Beverly Hills, under the Los Angeles Private Bank flag.  Our Directors, Management and Team Members remain committed to providing creative solutions and outstanding service to the individuals, families and companies we serve."

The Company is also pleased to announce today, the completion of a private placement of $17 million of its common stock (the "Shares") at $21.75 per share to certain institutional accredited investors and members of the Bank's Board of Directors. After the payment of placement agent fees and other expenses, the transaction will result in approximately $16.3 million of net proceeds to the Company. The Company plans to use the net proceeds from the offering to support organic growth, potential future acquisitions, and general corporate purposes. Sandler O'Neill + Partners, L.P. served as the sole placement agent for the private placement.

The Shares have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any security and will not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful.

About Private Bancorp of America, Inc.

Private Bancorp of America, Inc. (OTCQB: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. Clients are serviced by experienced personal bankers through offices in Coronado, San Diego, La Jolla, Beverly Hills and Newport Beach 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 and provides a full array of sophisticated treasury management and deposit products.

Investor Relations Contact

Thomas V. Wornham
San Diego Private Bank
(858) 875.6900

This press release may include forward looking statements that involve inherent risks and uncertainties. San Diego Private Bank 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 San Diego Private Bank 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 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.


Private Bancorp of America, Inc. and Subsidiary
Statements of Condition
(Unaudited –in thousands)
      March 31, 2017
    December 31, 2016
    March 31, 2016
Cash and Cash Equivalents $ 78,693 $ 71,706 $ 60,027
Investments   30,303   27,984   29,897
Loans, Net   417,392   434,277   345,985
Premises, Equipment and Other Assets     11,553   11,707   11,538
  Total Assets   537,941   545,674   447,447
Liabilities and Shareholders' Equity      
Demand Deposits   126,486   122,023   96,540
Interest Bearing Deposits   289,818   286,662   234,069
  Total Deposits   416,304   408,685   330,609
FHLB Advances / Borrowings   57,886   75,882   60,372
Other Liabilities   3,047   2,310   2,676
Shareholders' Equity   60,704   58,797   53,790
  Total Liabilities and
  Shareholders' Equity
$ 537,941

Selected Ratios:    March 31, 2017     December 31, 2016     March 31, 2016
Tangible Book Value Per Share   $ 14.24   $ 14.04   $ 13.42      
Tier 1 Leverage Ratio     11.27 %   11.47 %   12.27 %    
Total Risk Based Capital Ratio     14.93 %   13.66 %   15.83 %    

Asset Quality
(Non-Performing Assets + 90
Days Past Due Accruing)
divided by (Equity + Allowance
for Loan Losses)

%   0.29 %   0.32 %    

Private Bancorp of America, Inc. and Subsidiary
Statements of Income
(Unaudited – in thousands)
  Three months
March 31, 2017
Three months
    March 31, 2016
Interest Income $ 5,808 $ 5,118
Interest Expense   584   488
  Net Interest Income   5,224   4,630
Provision for Loan Losses   0   51
          Net Interest Income after
       Provision for Loan Losses  
  5,224   4,579
Other Income   395   349
Operating Expenses   3,317   3,024
Operating Income   2,302   1,904
Income Taxes   956   786
Net Earnings $ 1,346 $ 1,118
Basic Earnings Per Share $ 0.33 $ 0.29
Diluted Earnings Per Share  $ 0.31 $ 0.28



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