Market Overview

Private Bancorp of America, Inc. Announces Completion of Bank Rebrand and First Quarter Financial Results

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LA JOLLA, Calif., April 18, 2018 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM)

PBAM announced that its Bank has successfully completed the rebranding from San Diego Private Bank and Divisions to CalPrivate Bank effective March 21, 2018.  PBAM's President and CEO, Thomas V. Wornham said "We continue to operate as one company throughout our expanded footprint, now under one sign, CalPrivate Bank.  We remain headquartered in La Jolla, CA and continue to serve our clients with locations from Coronado to Beverly Hills.  Our coastal southern California strategy has served us well.  We are most appreciative to our clients, team members and partners who enabled us to make this transition so smoothly."

PBAM reported the financial results for the first quarter of fiscal year 2018.  Below are some highlights comparing the Year over Year (YOY) comparison of Q1 2018 to Q1 2017:

  • Total Assets increased to $646,230,000, up 20%
  • Total Net Loans increased to $471,635,000, up 13%
  • Total Deposits increased to $504,606,000, up 21%
  • Total Net Interest Income increased to $6,281,802, up 20%
  • Total Non-Interest Expenses increased to $4,846,000, up 46%
  • Net Income decreased to $1,129,000, down 16%

The income statement reflects net interest income growth continuing at healthy levels.  As the attached tables indicate, our challenge remains building our non-interest income businesses. We are addressing this by revamping our SBA group and refocusing our bankers on the highly competitive Treasury Management Products we have developed.

The first quarter reflects continued investment in our organic growth strategy through expansion of our existing footprint and the addition of new talent.  The increase in non-interest expense reflects the one-time cost of rebranding as well as investment in three key future revenue growth drivers. First, the addition of team members and team lift outs and the additional staff required to support them.  This is a large part of the 38% increase in salary and benefit expense.  Second, the addition and expansion of the Beverly Hills location and the relocation and expansion of our Newport location added to our occupancy and equipment expense.  Third, increased volume has increased data processing costs.

While we expect fixed costs to stabilize, the investment in people and business lines that are complementary to our core competencies and meet our clients' needs will continue.  The recent consolidation and merger activity in the markets we serve has presented us with unique opportunities to acquire seasoned, respected, driven and qualified talent.  These new team members will provide us with greater calling and client service capabilities. The recent senior management additions have given us a deeper "succession Bench".  Like many other investments, full benefit and returns on our investments are expected to emerge over several quarters.

Our strategy continues to be focused on organically growing through exceptional personnel recruitment, while reviewing merger and acquisition targets with the same disciplined approach we have in the past. Our philosophy remains targeting the markets we know; providing outstanding client experiences though highly qualified, client centric personnel and creative product solutions; resulting in superior shareholder returns.

RELATIONSHIPS – SOLUTIONS - TRUST

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 served through offices in Coronado, San Diego, La Jolla, Newport Beach and Beverly Hills as well as efficient electronic banking offerings. The Bank also offers SBA and cross-border Export-Import Bank programs. CalPrivate Bank is an SBA Preferred Lender and a Bauer Financial 5-Star rated bank.

Investor Relations Contact

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

  PRIVATE BANCORP OF AMERICA, INC.                        
  SELECTED FINANCIAL DATA  
 
      For the three months ended   March 31, 2018   March 31, 2018
                  Q-o-Q   Y-o-Y
  SELECT FINANCIAL DATA AND PERFORMANCE RATIOS   March 31, 2018   December 31, 2017   March 31, 2017   change ($) change (%)   change ($) change (%)
  (unaudited)                        
                           
  Common shares outstanding at period-end     5,012,557       5,007,957       4,169,450       4,600   0 %     843,107   20 %
                           
  Book value per common share   $ 16.01     $ 15.88     $ 14.56     $ 0.13   1 %   $ 1.45   10 %
  Tangible book value per common share   $ 15.92     $ 15.79     $ 14.24     $ 0.13   1 %   $ 1.68   12 %
                           
  PERFORMANCE RATIOS (%):                        
  Return on average assets (annualized)     0.72 %     -0.07 %     1.00 %     0.79 % -1149 %     -0.27 % -27 %
  Return on average equity (annualized)     5.74 %     -0.55 %     8.99 %     6.29 % -1149 %     -3.24 % -36 %
  Return on average tangible common equity (annualized)     5.77 %     -0.55 %     9.14 %     6.32 % -1140 %     -3.38 % -37 %
  Net interest margin     3.94 %     3.87 %     4.02 %     0.07 % 2 %     -0.09 % -2 %
  Net interest spread     3.99 %     3.92 %     4.06 %     0.07 % 2 %     -0.07 % -2 %
  Efficiency ratio     75.39 %     64.98 %     59.05 %     10.41
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