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Private Bancorp of America, Inc. Reports Another Record Quarter

  • Total Assets $940.5 million up 10% for the quarter and 32% year-over-year
  • Loans increased to $787.7 million up 12% for the quarter and 49% year-over-year
  • Deposits increased to $732.2 million up 4% for the quarter and 38% year-over-year
  • Net interest income for the quarter was $10.1 million, up 5% for the quarter and 50% year-over-year
  • Non-interest income for the quarter was $606 thousand for the quarter, up 10% for the quarter and down 12% year-over-year
  • Non-interest expense for the quarter was $8.2 million for the quarter, up 9% for the quarter and 41% year-over-year

LA JOLLA, Calif., July 22, 2019 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (PBAM) (“Company”), parent company of CalPrivate Bank (“Bank”), announced unaudited financial results for the quarter ended June 30, 2019.  Net income for the second quarter of 2019 was $1.0 million, or $0.20 per diluted share, compared with $1.6 million, or $0.30 per diluted share for the first quarter of 2019 and $0.9 million, or $0.17 per diluted share for the second quarter of 2018. 

During the quarter, the Company completed an $18 million subordinated debt offering and raised $10 million in a private placement equity offering to qualified investors.  As previously announced, a portion of the subordinated debt proceeds retired $8 million in existing debt.  The Company down streamed $18 million of the combined debt and equity proceeds to the Bank.  The Bank’s intends to use the proceeds to finance its organic growth strategy. 

Tom Wornham, President and CEO of PBAM and CEO of the Bank said, “The Company finished the second quarter at over $940 million in total assets, up $230 million or 32% from the same period a year ago.  Net interest income was $19.7 million for the first six months of 2019, up over $6.7 million or 51% for the same period in 2018.  We are very proud of these results and our team members who have produced them.  We continue to experience growth in all of our markets.  We also continue to grow safely and soundly, increasing our loan loss reserves by $1.4 million during the first half of 2019, a $1.0 million or 272% increase over the same period in 2018.” 

Rick Sowers, President of the Bank, added, “We are continuing to see improved operating leverage from the investments made in people and technology.  Our non-interest income in the second quarter reflects pressure in the SBA 7a market; however, we believe this is a strong business niche for us.  Our focus remains on executing in all of our business lines.” 

Net interest income for the second quarter of 2019 was $10.1 million compared with $9.6 million for the first quarter of 2019.  Net interest margin was 4.70% for the second quarter of 2019 compared with 4.77% for the first quarter of 2019.  Interest and fees on loans increased to $11.4 million, or 8.9% from the prior quarter due to increases in average loan balances and loan yields.  The cost for interest-bearing liabilities increased to $2.1 million or 23.1% from the prior quarter due to increased balances and costs in deposits and other borrowings from the newly issued subordinate debt. 

The provision for loan loss expense was $1.0 million in the second quarter of 2019 compared with $389 thousand in the first quarter of 2019.  The increased provision expense for the quarter was due to growth in the loan portfolio and increased the Allowance for Loan Losses to $7.6 million or 0.96% of total loans. 

Non-interest income for the second quarter of 2019 was $606 thousand compared with $552 thousand for the first quarter of 2019.  The second quarter included $307 thousand in gains from the sale of SBA loans and $80 thousand in referral fee income.

Non-interest expense for the second quarter of 2019 was $8.2 million compared with $7.5 million for the first quarter of 2019.  Salaries and benefits increased $663 thousand due to merit increases and loan commissions paid during the quarter. 

“We are very pleased with the progress of our organic growth strategy.  We continue working closely with our stakeholders, vendors and partners to improve the client experience as we grow.  The Company remains well capitalized by all measures as we insure we grow the Company safely and soundly.” said Selwyn Isakow, Chairman of PBAM and the Bank.

About Private Bancorp of America, Inc.

Private Bancorp of America, Inc. (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, El Segundo 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.


  PRIVATE BANCORP OF AMERICA, INC.  
  CONSOLIDATED BALANCE SHEET  
  (Unaudited)  
  (Dollars in thousands)  
                       
  June 30, 2019   March 31, 2019   Dollar
change
Percentage
change
  June 30, 2018   Dollar
change
Percentage
change
 
  Assets                        
                           
  Cash and due from banks $   25,737     $   18,404     $   7,333   39.8 %   $   22,688     $   3,049   13.4 %  
  Interest-bearing deposits at Federal Reserve Bank     17,346         16,843         503   3.0 %       36,621         (19,275 ) -52.6 %  
  Total cash and due from banks     43,083         35,247         7,836   22.2 %       59,309         (16,226 ) -27.4 %  
  Interest-bearing time deposits with other institutions     2,254         2,751         (497 ) -18.1 %       2,749         (495 ) -18.0 %  
  Investment securities available for sale     84,752         85,852         (1,100 ) -1.3 %       101,451         (16,699 ) -16.5 %  
  Loans     795,345         713,408         81,937   11.5 %       532,296         263,049   49.4 %  
  Allowance for loan losses     (7,637 )       (6,641 )       (996 ) 15.0 %       (4,893 )       (2,744 ) 56.1 %  
  Net loans     787,708         706,767         80,941   11.5 %       527,403         260,305   49.4 %  
  Federal Home Loan Bank stock, at cost     4,060         3,310         750   22.7 %       2,878         1,182   41.1 %  
  Right of use asset     7,271         6,951         320   4.6 %       -          7,271   NM    
  Premises and equipment, net     2,669         2,416         253   10.5 %       2,202         467   21.2 %  
  Other intangible assets     904         928         (24 ) -2.6 %       443         461   104.1 %  
  Deferred tax asset     4,409         4,409         -    0.0 %       4,776         (367 ) -7.7 %  
  Accrued interest receivable     2,731         2,537         194   7.6 %       851         1,880   220.9 %  
  Other assets     706         1,370         (664 ) -48.5 %       8,574         (7,868 ) -91.8 %  
  Total assets $    940,547     $    852,538     $    88,009   10.3 %   $    710,636     $    229,911   32.4 %  
                           
  Liabilities and Shareholders' Equity                        
                           
  Liabilities                        
  Noninterest bearing  $   247,153     $   263,255     $   (16,102 ) -6.1 %   $   165,611     $   81,542   49.2 %  
  Interest Bearing     485,011         443,572         41,439   9.3 %       362,870         122,141   33.7 %  
  Total deposits     732,164         706,827         25,337   3.6 %       528,481         203,683   38.5 %  
  FHLB borrowings     82,000         40,000         42,000   105.0 %       90,000         (8,000 ) -8.9 %  
  Other borrowings     17,929         7,832         10,097   128.9 %       7,902         10,027   126.9 %  
  Accrued interest payable and other liabilities     10,599         11,777         (1,178 ) -10.0 %       3,415         7,184   210.4 %  
  Total liabilities     842,692         766,436         76,256   9.9 %       629,798         212,894   33.8 %  
                           
  Shareholders' equity                        
  Common stock     68,740         58,576         10,164   17.4 %       58,167         10,573   18.2 %  
  Additional paid-in capital     2,823         3,062         (239 ) -7.8 %       2,715         108   4.0 %  
  Retained earnings     25,997         24,952         1,045   4.2 %       21,254         4,743   22.3 %  
  Accumulated other comprehensive income     295         (488 )       783   -160.5 %       (1,298 )       1,593   -122.7 %  
  Total stockholders' equity     97,855         86,102         11,753   13.7 %       80,838         17,017   21.1 %  
                           
  Total liabilities and stockholders' equity $    940,547     $    852,538     $    88,009   10.3 %   $    710,636     $    229,911   32.4 %  
         

 

  CONSOLIDATED STATEMENTS OF INCOME  
  (Unaudited)  
  (Dollars in thousands, except per share amounts)  
                         
      For the three months ended  
      June 30, 2019   March 31, 2019   Dollar
change
Percentage
change
  June 30, 2018   Dollar
change
Percentage
change
 
  Interest Income                          
  Loans   $   11,442   $   10,511   $   931   8.9 %   $   6,771   $   4,671   69.0 %  
  Investment securities       601       673       (72 ) -10.7 %       689       (88 ) -12.8 %  
  Deposits in other financial institutions       126       133       (7 ) -5.3 %       144       (18 ) -12.5 %  
  Total interest income       12,169       11,317       852   7.5 %       7,604       4,565   60.0 %  
                             
  Interest Expense                          
  Deposits        1,340       1,207       133   11.0 %       476       864   181.5 %  
  Borrowings       736       479       257   53.7 %       393       343   87.3 %  
  Total interest expense       2,076       1,686       390   23.1 %       869       1,207   138.9 %  
                             
  Net interest income       10,093       9,631       462   4.8 %       6,735       3,358   49.9 %  
  Provision for credit losses       996       389       607   156.0 %       372       624   167.7 %  
  Net interest income after provision for credit losses       9,097       9,242       (145 ) -1.6 %       6,363       2,734   43.0 %  
                             
  Noninterest income:                          
  Service charges on deposit accounts       117       93       24   25.8 %       115       2   1.7 %  
  Net gain on sale of loans       307       347       (40 ) -11.5 %       473       (166 ) -35.1 %  
  Gain on sale of investment securities       4       21       (17 ) -81.0 %       7       (3 ) -42.9 %  
  Other noninterest income       178       91       87   95.6 %       96       82   85.4 %  
  Total noninterest income       606       552       54   9.8 %       691       (85 ) -12.3 %  
                             
  Noninterest expense:                          
  Salary and employee benefits       5,892       5,229       663   12.7 %       3,870       2,022   52.2 %  
  Occupancy and equipment       641       674       (33 ) -4.9 %       558       83   14.9 %  
  Data processing       490       524       (34 ) -6.5 %       534       (44 ) -8.2 %  
  Professional services       364       392       (28 ) -7.1 %       240       124   51.7 %  
  Other expenses       854       730       124   17.0 %       639       215   33.6 %  
  Total noninterest expense       8,241       7,549       692   9.2 %       5,841       2,400   41.1 %  
                             
  Income before provision for income taxes       1,462       2,245       (783 ) -34.9 %       1,213       249   20.5 %  
  Provision for income taxes       411       656       (245 ) -37.3 %       350       61   17.4 %  
  Net income   $    1,051   $    1,589   $    (538 ) -33.9 %   $    863   $    188   21.8 %  
  Net income available to common shareholders   $    1,031   $    1,559   $    (528 ) -33.9 %   $    855   $    176   20.6 %  
                             
  Earnings per share                          
  Basic earnings per share   $   0.21   $   0.31   $   (0.11 ) -34.3 %   $   0.17   $   0.03   20.3 %  
  Diluted earnings per share   $   0.20   $   0.30   $   (0.10 ) -34.1 %   $   0.17   $   0.03   20.6 %  
                             
  Average shares outstanding       5,027,437       4,996,811       30,626   0.6 %       5,014,918       12,519   0.2 %  
  Diluted average shares outstanding       5,133,305       5,114,096       19,209   0.4 %       5,134,373       (1,068 ) 0.0 %  
 

 

  CONSOLIDATED STATEMENTS OF INCOME  
  (Unaudited)  
  (Dollars in thousands, except per share amounts)  
     
      For the six months ended  
      June 30, 2019   June 30, 2018   Dollar
change
Percentage
change
 
  Interest Income                
  Loans   $   21,953   $   12,987   $   8,966   69.0 %  
  Investment securities       1,274       1,255       19   1.5 %  
  Deposits in other financial institutions       259       403       (144 ) -35.7 %  
  Total interest income       23,486       14,645       8,841   60.4 %  
                   
  Interest Expense                
  Deposits        2,547       953       1,594   167.3 %  
  Borrowings       1,215       675       540   80.0 %  
  Total interest expense       3,762       1,628       2,134   131.1 %  
                   
  Net interest income       19,724       13,017       6,707   51.5 %  
  Provision for credit losses       1,385       372       1,013   272.3 %  
  Net interest income after provision for credit losses     18,339       12,645       5,694   45.0 %  
                   
  Noninterest income:                
  Service charges on deposit accounts       210       125       85   68.0 %  
  Net gain on sale of loans       654       511       143   28.0 %  
  Gain on sale of investment securities       25       7       18   257.1 %  
  Other noninterest income       269       194       75   38.7 %  
  Total noninterest income       1,158       837       321   38.4 %  
                   
  Noninterest expense:                
  Salary and employee benefits       11,101       6,933       4,168   60.1 %  
  Occupancy and equipment       1,314       1,081       233   21.6 %  
  Data processing       1,014       874       140   16.0 %  
  Professional services       750       610       140   23.0 %  
  Other expenses       1,578       1,189       389   32.7 %  
  Total noninterest expense       15,757       10,687       5,070   47.4 %  
                   
  Income before provision for income taxes       3,740       2,795       945   33.8 %  
  Provision for income tax        1,102       803       299   37.2 %  
  Net income   $    2,638   $    1,992   $    646   32.4 %  
  Net income available to common shareholders $    2,589   $    1,967   $    622   31.6 %  
                   
  Earnings per share                
  Basic earnings per share   $   0.52   $   0.40   $   0.12   29.1 %  
  Diluted earnings per share   $   0.51   $   0.39   $   0.12   29.7 %  
                   
  Average shares outstanding       5,012,604       4,952,883       59,721   1.2 %  
  Diluted average shares outstanding       5,118,471       5,072,341       46,130   0.9 %  
                   

 

...
                                         
      Consolidated average balance sheet, interest, yield and rates  
      (Unaudited)  
      (Dollars in thousands)  
                                         
      For the three months ended  
      June 30, 2019   March 31, 2019   June 30, 2018  
      Average
Balance
  Interest   Average
Yield/Rate
  Average
Balance
  Interest   Average
Yield/Rate
  Average
Balance
  Interest   Average
Yield/Rate
 
  Interest-Earnings Assets:                                      
  Deposits in other financial institutions   $   23,651   $   126   2.14 %   $   24,237   $   133   2.23 %   $   34,236   $   144   1.70 %  
  Investment securities     89,102     601   2.70 %     92,678     673   2.90 %     106,295     689   2.59 %  
  Loans     748,846     11,442   6.13 %     701,715     10,511   6.07 %     497,917     6,771   5.45 %  
  Total interest-earning assets     861,599     12,169   5.67 %     818,630     11,317   5.61 %     638,448     7,604   4.78 %  
  Noninterest-earning assets     35,521             29,270             16,475          
  Total Assets   $   897,120           $   847,900           $   654,923          
                                         
  Interest-Bearing Liabilities                                      
  Interest-bearing transaction accounts   $   33,191   $   66   0.80 %   $   20,554   $   14   0.28 %   $   17,085   $   9   0.21 %  
  Money market     320,310     720   0.90 %     315,798     646   0.83 %     267,736     355   0.53 %  
  Savings deposits     6,779     5   0.30 %     6,715     4   0.24 %     5,585     4   0.29 %  
  Certificates of deposit     98,004     549   2.25 %     105,361     543   2.09 %     46,544     108   0.93 %  
  Total Interest-Bearing Deposits     458,284     1,340   1.17 %     448,428     1,207   1.09 %     336,950     476   0.57 %  
                                         
  FHLB advances     65,797