Private Bancorp of America, Inc. Continues Record Growth in

LA JOLLA, Calif., Jan. 17, 2018 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM)

Private Bancorp of America, Inc. (the “Bancorp”), parent company of San Diego Private Bank (the “Bank”), announces unaudited financial results for the fourth quarter and the fiscal year ended December 31, 2017.

Total assets increased 23% during 2017 to a record $671.2 million at December 31, 2017. 2017 Net interest income increased 21% to $22.5 million and pre-tax income for 2017 was up 13% over 2016 at $7.9 million; both also record levels. Total deposits grew 30% during 2017, ending the year at $530.7 million. Total loans were $492.6 million at 12/31/2017, up 13% from the prior year end. Loan and deposit growth achieved record levels. The Bancorp and the Bank accomplished significant successes in 2017:

Strategic decision made to expand into West Los Angeles.
Appointed Richard Smith to Bank Board of Directors in the first quarter and Monica Navarro hired to build the Beverly Hills presence.
Opened its Beverly Hills Office in the third quarter.
Bancorp was “up listed” to the OTCQX platform added to three indices.
Successfully completed a $17 million capital raise at market.
Added James Parks to Bank Board of Directors in the fourth quarter.
Bancorp’s market cap exceeds $125 million for the first time in the fourth quarter.
Branded “RELATIONSHIPS, SOLUTIONS, TRUST.”
Robert Pedersen hired in fourth quarter to manage the Bank’s SBA Department.
Beverly Hills branch exceeds $100 million in deposits in December.

“We could not be more proud of our Team Members who worked tirelessly in 2017 to implement the Board’s and Management’s visions and strategies,” said Thomas V. Wornham, President and CEO. “We remain committed to providing outstanding creative solution-based customer service to ensure sustained safe and sound organic growth.”

Credit quality and capital ratios remain healthy by all standards.

Changes in accounting rules related to the recently passed tax law negatively impacted the Bank and Bancorp. Bancorp’s net income was $3,425,000 after a one-time $1,516,000 tax adjustment related the revaluation of deferred tax assets. Without the impact of the 2017 Tax Reform Bill, Bancorp’s 2017 net income would have been $5.0 million, resulting in a 15% increase over 2016. 2017 earnings per share is $.74. If adjusted for the impact of the deferred tax asset revaluation of $.30 per share, earnings per share would have been $1.04. To accurately compare the adjusted 2017 EPS to 2016 it is important to recognize that after the 2017 capital raise there are 21% more shares outstanding at December 31, 2017 versus the same date of 2016.

Selwyn Isakow, Chairman of the Board, said “We have doubled the asset size of the Bank in a little over three years. We have successfully expanded the size of our service footprint from the Mexican Border to Beverly Hills. We remain committed to being the finest relationship-focused financial service provider in Coastal Southern California. I would like to thank our Clients, Shareholders, Directors, Team Members and Management who continue to support our record growth. We remain committed to building client relationships through outstanding service and customized solutions in order to create exceptional trust.”

About Private Bancorp of America, Inc.

Private Bancorp of America, Inc. (OTCQX: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; 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. San Diego Private Bank is a SBA Preferred Lender.

Investor Relations Contact

Thomas V. Wornham
President/CEO
Private Bancorp of America, Inc. and San Diego Private Bank
(858) 875.6900

Safe Harbor Paragraph

This press release may include 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 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.

[FINANCIAL TABLES FOLLOW]

PRIVATE BANCORP OF AMERICA, INC.
SELECTED FINANCIAL DATA

	For the three months ended									December 31, 2017					December 31, 2017
										Q-o-Q					Y-o-Y
SELECT FINANCIAL DATA AND PERFORMANCE RATIOS	December 31, 2017			September 30, 2017			December 31, 2016			change ($)			change (%)		change ($)			change (%)
(unaudited)

Common shares outstanding at period-end		5,008,627			4,999,427			4,139,664			9,200		0	%		868,963		21	%

Book value per common share	$	15.88		$	15.94		$	13.73		$	(0.07	)	0	%	$	2.15		16	%
Tangible book value per common share	$	15.79		$	15.84		$	13.55		$	(0.06	)	0	%	$	2.24		17	%

PERFORMANCE RATIOS (%):
Return on average assets (annualized)		-0.07	%		0.92	%		1.05	%		-0.99	%	-107	%		-1.12	%	-107	%
Return on average equity (annualized)		-0.55	%		6.69	%		9.36	%		-7.23	%	-108	%		-9.91	%	-106	%
Return on average tangible common equity (annualized)		-0.55	%		6.71	%		9.47	%		-7.27	%	-108	%		-10.03	%	-106	%
Net interest margin		3.92	%		4.11	%		4.01	%		-0.18	%	-4	%		-0.09	%	-2	%
Net interest spread		3.87	%		4.05	%		3.97	%		-0.18	%	-4	%		-0.10	%	-2	%
Efficiency ratio		64.98	%		64.12	%		56.75	%		0.86	%	1	%		8.23	%	15	%
Noninterest expense / average assets		2.54	%		2.68	%		2.32	%		-0.14	%	-5	%		0.22	%	10	%

CAPITAL RATIOS (%):
Tier 1 leverage ratio		12.11	%		13.39	%		10.83	%		-1.28	%	-10	%		1.28	%	12	%
Tier 1 risk-based capital ratio		14.80	%		15.99	%		12.05	%		-1.19	%	-7	%		2.75	%	23	%
Common equity Tier 1 ratio		14.80	%		15.99	%		12.05	%		-1.19	%	-7	%		2.75	%	23	%
Total risk-based capital ratio		15.71	%		16.90	%		12.95	%		-1.19	%	-7	%		2.76	%	21	%
Tangible equity / tangible assets		11.78	%		13.43	%		10.66	%		-1.64	%	-12	%		1.12	%	11	%

										December 31, 2017					December 31, 2017
										Q-o-Q					Y-o-Y
CREDIT QUALITY PROFILE AND METRICS:	December 31, 2017			September 30, 2017			December 31, 2016			change ($)			change (%)		change ($)			change (%)

Total Loans ($000s)		497,152			450,468			438,295			46,684		10	%		58,857		13	%
30-89 day past due loans ($000s)		1,424			-			-			1,424		NM			1,424		NM
90+ day past due loans ($000s)		-			-			-			-		NM			-		NM
nonaccrual loans ($000s)		1,586			1,606			191			(20	)	-1	%		1,395		730	%

NPAs / Assets (%)		0.24	%		0.27	%		0.04	%		(0	)	-13	%		0		575	%
NPLs / loans & REO (%)		0.32	%		0.36	%		0.04	%		(0	)	-11	%		0		632	%
Net chargeoffs ($000s)		0			0			0			-		NM			-		NM
NCOs / avg loans (annualized) (%)		0	%		0	%		0	%		-		NM			-		NM
Reserve ratio (%)		0.91	%		0.94	%		0.92	%		-0.03	%	-3	%		-0.01	%	-1	%
Reserve coverage ratio (%)		285	%		263	%		2104	%		22	%	8	%		-1819	%	-86	%

										December 31, 2017					December 31, 2017
										Q-o-Q					Y-o-Y
LOAN PORTFOLIO COMPOSITION ($000s)	December 31, 2017			September 30, 2017			December 31, 2016			change ($)			change (%)		change ($)			change (%)
Real estate - investor owned		189,355			183,587			178,209			5,768		3	%		11,146		6	%
Real estate - owner occupied		62,657			46,501			46,201			16,156		35	%		16,456		36	%
Real estate - multifamily		56,500			52,595			50,434			3,905		7	%		6,066		12	%
Real estate - single family		48,362			51,225			47,715			(2,863	)	-6	%		647		1	%
Commercial business		113,218			93,860			78,725			19,358		21	%		34,493		44	%
Land and construction		24,679			20,585			36,929			4,094		20	%		(12,250	)	-33	%
Consumer		1,734			318			82			1,416		445	%		1,652		2015	%
Leases		-			-			-			-		NM			-		NM
Other		-			-			-			-		NM			-		NM
Total loans held for investment		496,505			448,671			438,295			47,834		11	%		58,210		13	%

Loans held for sale		647			1,797			-			(1,150	)	-64	%		647		NM
Total loans, including loans held for sale		497,152			450,468			438,295			46,684		10	%		58,857		13	%

Allowance for loan losses		(4,521	)		(4,221	)		(4,018	)		(300	)	7	%		(503	)	13	%
Net loans		492,631			446,247			434,277			46,384		10	%		58,354		13	%

DEPOSIT COMPOSITION ($000S)
Non interest bearing DDA		162,049			124,055			122,023			37,994		31	%		40,026		33	%
Interest bearing DDA		16,373			10,963			13,292			5,410		49	%		3,081		23	%
Savings & MMA		295,075			258,235			180,258			36,840		14	%		114,817		64	%
Retail CD		6,035			6,793			5,458			(758	)	-11	%		577		11	%
Jumbo CD		53,651			48,064			87,654			5,587		12	%		(34,003	)	-39	%
Total deposits		533,183			448,110			408,685			85,073		19	%		124,498		30	%

PRIVATE BANCORP OF AMERICA, INC.
SELECTED FINANCIAL DATA



							December 31, 2017				December 31, 2017
							Q-o-Q				Y-o-Y
BALANCE SHEET	December 31, 2017		September 30, 2017		December 31, 2016		change ($)		change (%)		change ($)		change (%)
(unaudited - in $000s)

Assets
Cash and due from banks	15,128		13,363		38,368		1,765		13	%	(23,240	)	-61	%
Interest-bearing deposits at Federal Reserve Bank	87,401		70,336		32,092		17,065		24	%	55,309		172	%
	102,529		83,699		70,460		18,830		22	%	32,069		46	%
Interest-bearing time deposits with other institutions	2,997		2,997		1,245		-		0	%	1,752		141	%
Investment securities available for sale	61,568		45,512		27,984		16,056		35	%	33,584		120	%
Investment securities held to maturity	-		-		-
Loans	497,152		450,468		438,295		46,684		10	%	58,857		13	%
Allowance for loan losses	(4,521	)	(4,221	)	(4,018	)	(300	)	7	%	(503	)	13	%
	492,631		446,247		434,277		46,384		10	%	58,354		13	%
Federal Home Loan Bank stock, at cost	2,295		2,295		2,135		-		0	%	160		7	%
Premises and equipment, net	1,530		1,416		923		114		8	%	607		66	%
Goodwill	-		-		-
Other intangible assets	487		503		690		(16	)	-3	%	(203	)	-29	%
Deferred tax asset/liability	4,233		5,553		5,703		(1,320	)	-24	%	(1,470	)	-26	%
Accrued interest receivable	1,811		1,450		1,277		361		25	%	534		42	%
Other assets	1,164		800		980		364		46	%	184		19	%
	671,245		590,472		545,674		80,773		14	%	125,571		23	%

Liabilities and Shareholders' Equity
Liabilities
Noninterest Bearing	162,049		124,055		122,023		37,994		31	%	40,026		33	%
Interest Bearing	371,134		324,055		286,662		47,079		15	%	84,472		29	%
Total Deposits	533,183		448,110		408,685		85,073		19	%	124,498		30	%
FHLB Borrowings	50,000		50,000		68,000		-		0	%	(18,000	)	-26	%
Other borrowings	7,896		7,892		7,882		4		0	%	14		0	%
Accrued interest payable and other liabilities	645		4,756		2,310		(4,111	)	-86	%	(1,665	)	-72	%
	591,724		510,758		486,877		80,966		16	%	104,847		22	%
Shareholders' equity
Common stock	57,857		57,684		40,713		173		0	%	17,144		42	%
Additional paid-in capital	2,569		2,528		2,343		41		2	%	226		10	%
Retained earnings	19,265		19,350		15,814		(85	)	0	%	3,451		22	%
Accumulated other comprehensive income	(170	)	152		(73	)	(322	)	-212	%	(97	)	133	%
	79,521		79,714		58,797		(193	)	0	%	20,724		35	%

Total liabilities and shareholders' equity	671,245		590,472		545,674		80,773		14	%	125,571		23	%

PRIVATE BANCORP OF AMERICA, INC.
SELECTED FINANCIAL DATA

								December 31, 2017					December 31, 2017
	For the three months ended							Q-o-Q					Y-o-Y
INCOME STATEMENT	December 31, 2017			September 30, 2017		December 31, 2016		change ($)			change (%)		change ($)			change (%)
(unaudited - in $000s, except per share data)

Interest Income
Loans		6,241			5,962		5,283		279		5	%		958		18	%
Investment securities		321			227		259		94		41	%		62		24	%
Deposits in other financial institutions		214			195		67		19		10	%		147		219	%
		6,776			6,384		5,609		392		6	%		1,167		21	%

Interest Expense
Deposits		429			379		383		50		13	%		46		12	%
Borrowings		267			263		202		4		2	%		65		32	%
		696			642		585		54		8	%		111		19	%

Net interest income		6,080			5,742		5,024		338		6	%		1,056		21	%
Provision for credit losses		300			17		340		283		NM			(40	)	-12	%
Net interest income after provision for credit losses		5,780			5,725		4,684		55		1	%		1,096		23	%

Noninterest income:
Service charges on deposit accounts		72			77		94		(5	)	-6	%		(22	)	-23	%
Net gain on sale of loans & leases		73			69		168		4		6	%		(95	)	-57	%
Gain (loss) on sale of investment securities		-			-		-		-		NM			-		NM
Other noninterest income		26			45		46		(19	)	-42	%		(20	)	-43	%
		171			191		308		(20	)	-10	%		(137	)	-44	%

Noninterest expense:
Salary and employee benefits		2,581			2,492		2,025		89		4	%		556		27	%
Occupancy and equipment		458			466		302		(8	)	-2	%		156		52	%
Data processing		260			278		251		(18	)	-6	%		9		4	%
Professional services		217			175		105		42		24	%		112		107	%
Other expenses		546			457		343		89		19	%		203		59	%
		4,062			3,868		3,026		194		5	%		1,036		34	%

Income before provision for income tax		1,889			2,048		1,966		(159	)	-8	%		(77	)	-4	%
Provision for income tax		1,999			815		598		1,184		145	%		1,401		234	%
Net income available to common shareholders		(110	)		1,233		1,368		(1,343	)	-109	%		(1,478	)	-108	%

Earnings per share
Basic earnings per share	$	(0.02	)	$	0.27	$	0.34	$	(0.29	)	-108	%	$	(0.36	)	-107	%
Diluted earnings per share	$	(0.02	)	$	0.26	$	0.33	$	(0.28	)	-108	%	$	(0.35	)	-107	%

Average shares outstanding		4,948,981			4,596,013		4,071,993		352,968		8	%		876,988		22	%
Diluted average shares outstanding		5,071,375			4,712,015		4,187,134		359,360		8	%		884,241		21	%

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, 2017				September 30, 2017				December 31, 2016
	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	78,516	214	1.08	%	65,682	195	1.18	%	54,702	67	0.49	%
Investment securities	54,751	321	2.33	%	40,053	227	2.25	%	30,697	259	3.35	%
Loans	481,667	6,241	5.14	%	448,915	5,962	5.27	%	411,814	5,283	5.09	%
Total interest-earning assets	614,934	6,776	4.37	%	554,650	6,384	4.57	%	497,213	5,609	4.48	%
Noninterest-earning assets	18,781				18,041				19,842
Total Assets	633,715				572,691				517,055

Interest-Bearing Liabilities
Interest-bearing transaction accounts	13,469	7	0.21	%	12,376	6	0.19	%	13,032	6	0.18	%
Money market	279,626	302	0.43	%	227,391	242	0.42	%	176,234	204	0.46	%
Savings deposits	5,230	3	0.23	%	5,551	3	0.21	%	4,749	3	0.25	%
Certificates of deposit	53,685	116	0.86	%	56,758	129	0.90	%	79,818	170	0.84	%
Total Interest-Bearing Deposits	352,010	428	0.48	%	302,076	380	0.50	%	273,833	383	0.55	%

FHLB advances	50,000	163	1.29	%	50,761	158	1.23	%	50,554	97	0.76	%
Other borrowings	7,894	104	5.23	%	7,890	104	5.23	%	7,881	105	5.29	%
Total Interest-Bearing Liabilities	57,894	267	1.83	%	58,651	262	1.77	%	332,268	202	0.24	%

Noninterest-bearing deposits	140,454				129,918				124,203
Total Funding Sources	550,358	695	0.50	%	490,645	642	0.52	%	456,471	585	0.51	%

Noninterest-bearing liabilities	3,623				3,021				2,586

Shareholders' equity	79,734				79,025				57,998

Total Liabilities and Shareholders' Equity	633,715				572,691				517,055

Net interest spread			3.87	%			4.05	%			3.97	%

Net interest income		6,081				5,742				5,024
Net interest margin			3.92	%			4.11	%			4.01	%

Private Bancorp of America, Inc. Continues Record Growth in 2017

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