Market Overview

Private Bancorp of America, Inc. Grows to Over $700 Million in Assets

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

Private Bancorp of America, Inc. ("PBAM") announced quarterly earnings today including the financial results of its subsidiary, CalPrivate Bank ("Bank") for the second quarter and first half of 2018.  PBAM continues to follow its strategy of organic growth and disciplined expansion in the coastal Southern California markets it serves.  Below are some highlights of the quarter and the year to date performance for the period ending June 30, 2018.

  • Total Assets were a record $710,636,000; up 10% over the prior quarter and up 26% year over year.
  • Net Loans were a record $527,403,000; up 12% over the prior quarter and up 17% year over year.
  • Total Deposits were 528,481,000; up 5% over the prior quarter and up 35% year over year.
  • Record Net Interest Income of $13,017,000 for the first half of 2018; up 22% year over year.
  • Record Quarterly Net Interest Income of $6,735,000 up 7% from the prior quarter and 23% for the same quarter a year ago.
  • Non-interest Income was a record $691,000 for the quarter and $837,000 year to date, primarily as a result of gain on sale of SBA loans.
  • Planned increases in Noninterest Expense resulted in costs of $5,841,000 for the quarter and $10,687,000 year to date.  The largest increase was in Salaries and Employee Benefits, up 53% for the six months ended June 30, 2018 compared to the same period of the prior year.
  • Net Income for the quarter was $863,000; down 24% from the prior quarter and 16% year over year, reflecting our previously announced planned hiring and expense increases in Orange County, Los Angeles and SBA.

Thomas V. Wornham, President and CEO of PBAM commented "We are very proud of the work our team members have done and the support our customers and shareholders have provided us to grow through $700 million in total assets.  We are fortunate to have a Board of Directors with a long-term vision, committed to investing today for tomorrow's profits.  CalPrivate Bank is already seeing the return on the additional hires in Beverly Hills and Orange County, as well as the expansion of our SBA Group and our Specialty Lending Area.  While the increase in operating expenses reflects the new hires and associated expenses and it generally takes time for them to produce, we could not be more pleased with the additions we have made. We have already seen lift in Loan and Deposit growth, Net Interest income and finally Non Interest Income."

Rick L. Sowers, President of CalPrivate Bank noted "We have added 35 professionals to our team this year.  This reflects our commitment to growth and hiring the right people for the right roles.  Our SBA team is already showing returns on our investment.  Our client, credit and relationship management teams are all working well together to ensure that growth does not come at the expense of service.  We have veteran bankers now managing all of our markets and we continue to look to add related businesses to our franchise as we see opportunities that make sense."

Selwyn Isakow, Chairman of PBAM commented "We are delighted with the Bank's growth and excited by our prospects.  We are committed to taking advantage of this unique window as extensive M&A activity has caused employee dislocations, allowing us to hire talented and proven bankers to fuel our organic growth strategy.  We recognize that this investment may negatively impact our bottom line for a few quarters, but expect significant returns in future years.  We are focused on increasing shareholder value. Our succession bench has never been stronger and we have an experienced dedicated team of professionals committed to providing the best solutions for our clients."

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 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 5-Star Rated Bank and is rated as one of the Top 200 Safest Banks in America by Deposits.com.

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, 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.

 
    For the three months ended   June 30, 2018   June 30, 2018
                Q-o-Q   Y-o-Y
SELECT FINANCIAL DATA AND PERFORMANCE RATIOS   June 30, 2018   March 31, 2018   June 30, 2017   change ($) change (%)   change ($) change (%)
(unaudited)                        
                         
Common shares outstanding at period-end       5,048,658       5,012,557       4,989,211       36,101   1%       59,447 1%
                         
Book value per common share   $   16.01   $   16.01   $   15.70   $   0.00   0%   $   0.31 2%
Tangible book value per common share   $   15.92   $   15.92   $   15.58   $   0.01   0%   $   0.34 2%
                         
PERFORMANCE RATIOS (%):                        
Return on average assets (annualized)     0.53%     0.72%     0.76%     -0.19%   -27%     -0.23% -30%
Return on average equity (annualized)     4.30%     5.74%     5.66%     -1.44%   -25%     -1.36% -24%
Return on average tangible common equity (annualized)     4.32%     5.77%     6.14%     -1.44%   -25%     -1.82% -30%
Net interest margin     4.23%     3.99%     4.20%     0.24%   6%     0.03% 1%
Net interest spread     4.16%     3.94%     4.14%     0.22%   6%     0.01% 0%
Efficiency ratio     78.66%     75.39%     65.64%     3.27%   4%     13.01% 20%
Noninterest expense / average assets     3.62%     2.99%     2.74%     0.63%   21%     0.87% 32%
                         
CAPITAL RATIOS (%):                        
Tier 1 leverage ratio     12.14%     12.03%     14.89%     0.11%   1%     -2.75% -18%
Tier 1 risk-based capital ratio     13.78%    
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