Private Bancorp of America, Inc. Announces Completion of

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 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 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 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.
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	%	16	%		16.34	%	28	%
Noninterest expense / average assets		2.99	%		2.54	%		2.48	%		0.45	%	18	%		0.51	%	20	%

CAPITAL RATIOS (%):
Tier 1 leverage ratio		12.03	%		12.11	%		10.63	%		-0.08	%	-1	%		1.40	%	13	%
Tier 1 risk-based capital ratio		15.21	%		14.80	%		13.19	%		0.41	%	3	%		2.02	%	15	%
Common equity Tier 1 ratio		15.21	%		14.80	%		13.19	%		0.41	%	3	%		2.02	%	15	%
Total risk-based capital ratio		16.11	%		15.71	%		14.14	%		0.40	%	3	%		1.97	%	14	%
Tangible equity / tangible assets		12.36	%		11.78	%		11.17	%		0.57	%	5	%		1.18	%	11	%

										March 31, 2018					March 31, 2018
										Q-o-Q					Y-o-Y
CREDIT QUALITY PROFILE AND METRICS:	March 31, 2018			December 31, 2017			March 31, 2017			change ($)			change (%)		change ($)			change (%)

Total Loans ($000s)		476,156			497,152			421,410			(20,996	)	-4	%		54,746		13	%
30-89 day past due loans ($000s)		-			1,424			828			(1,424	)	-100	%		(828	)	-100	%
90+ day past due loans ($000s)		-			-			-			-		NM			-		NM
nonaccrual loans ($000s)		1,499			1,586			137			(87	)	-5	%		1,362		994	%

NPAs / Assets (%)		0.23	%		0.24	%		0.03	%		(0	)	-2	%		0		811	%
NPLs / loans & REO (%)		0.32	%		0.32	%		0.03	%		(0	)	-1	%		0		878	%
Net chargeoffs ($000s)		0			0			0			-		NM			-		NM
NCOs / avg loans (annualized) (%)		0	%		0	%		0	%		-		NM			-		NM
Reserve ratio (%)		0.95	%		0.91	%		0.95	%		0.04	%	4	%		0.00	%	0	%
Reserve coverage ratio (%)		302	%		285	%		2933	%		17	%	6	%		-2631	%	-90	%

										March 31, 2018					March 31, 2018
										Q-o-Q					Y-o-Y
LOAN PORTFOLIO COMPOSITION ($000s)	March 31, 2018			December 31, 2017			March 31, 2017			change ($)			change (%)		change ($)			change (%)
Real estate - investor owned		190,200			189,355			171,221			845		0	%		18,979		11	%
Real estate - owner occupied		61,706			62,657			47,229			(951	)	-2	%		14,477		31	%
Real estate - multifamily		60,948			56,500			48,423			4,448		8	%		12,525		26	%
Real estate - single family		42,646			48,362			52,704			(5,716	)	-12	%		(10,058	)	-19	%
Commercial business		100,090			113,218			69,965			(13,128	)	-12	%		30,125		43	%
Land and construction		18,925			24,679			29,957			(5,754	)	-23	%		(11,032	)	-37	%
Consumer		1,641			1,734			139			(93	)	-5	%		1,502		1081	%
Other		-			-			-			-		NM			-		NM
Total loans held for investment		476,156			496,505			419,638			(20,349	)	-4	%		56,518		13	%

Loans held for sale		-			647			1,772			(647	)	-100	%		(1,772	)	NM
Total loans, including loans held for sale		476,156			497,152			421,410			(20,996	)	-4	%		54,746		13	%

Allowance for loan losses		(4,521	)		(4,521	)		(4,018	)		-		0	%		(503	)	13	%
Net loans		471,635			492,631			417,392			(20,996	)	-4	%		54,243		13	%

DEPOSIT COMPOSITION ($000S)
Non interest bearing DDA		165,067			160,008			126,485			5,059		3	%		38,582		31	%
Interest bearing DDA		15,566			16,421			14,772			(855	)	-5	%		794		5	%
Savings & MMA		277,434			295,075			193,965			(17,641	)	-6	%		83,469		43	%
Retail CD		7,114			6,035			6,216			1,079		18	%		898		14	%
Jumbo CD		39,425			53,651			74,866			(14,226	)	-27	%		(35,441	)	-47	%
Total deposits		504,606			531,190			416,304			(26,584	)	-5	%		88,302		21	%

PRIVATE BANCORP OF AMERICA, INC.
SELECTED FINANCIAL DATA



							March 31, 2018				March 31, 2018
							Q-o-Q				Y-o-Y
BALANCE SHEET	March 31, 2018		December 31, 2017		March 31, 2017		change ($)		change (%)		change ($)		change (%)
(unaudited - in $000s)

Assets

Cash and due from banks	15,596		15,128		38,273		468		3	%	(22,677	)	-59	%
Interest-bearing deposits at Federal Reserve Bank	38,115		87,401		40,419		(49,286	)	-56	%	(2,304	)	-6	%
	53,711		102,529		78,692		(48,818	)	-48	%	(24,981	)	-32	%
Interest-bearing time deposits with other institutions	2,998		2,997		1,245		1		0	%	1,753		141	%
Investment securities available for sale	105,828		61,568		29,058		44,260		72	%	76,770		264	%
Investment securities held to maturity	-		-		-

Loans	476,156		497,152		421,410		(20,996	)	-4	%	54,746		13	%
Allowance for loan losses	(4,521	)	(4,521	)	(4,018	)	-		0	%	(503	)	13	%
	471,635		492,631		417,392		(20,996	)	-4	%	54,243		13	%

Federal Home Loan Bank stock, at cost	2,295		2,295		2,135		-		0	%	160		7	%
Premises and equipment, net	1,969		1,530		980		439		29	%	989		101	%
Goodwill	-		-		-		-		0	%	-		0	%
Other intangible assets	465		487		665		(22	)	-5	%	(200	)	-30	%
Deferred tax asset/liability	4,353		3,879		5,632		474		12	%	(1,279	)	-23	%
Accrued interest receivable	2,030		1,811		1,273		219		12	%	757		59	%
Other assets	947		1,518		869		(571	)	-38	%	78		9	%
	646,231		671,245		537,941		(25,014	)	-4	%	108,290		20	%

Liabilities and Shareholders' Equity

Liabilities
Noninterest Bearing	165,067		162,049		126,486		3,018		2	%	38,581		31	%
Interest Bearing	339,539		369,141		289,818		(29,602	)	-8	%	49,721		17	%
Total Deposits	504,606		531,190		416,304		(26,584	)	-5	%	88,302		21	%
FHLB Borrowings	50,000		50,000		50,000		-		0	%	-		0	%
Other borrowings	7,899		7,896		7,886		3		0	%	13		0	%
Accrued interest payable and other liabilities	3,473		2,638		3,047		835		32	%	426		14	%
	565,978		591,724		477,237		(25,746	)	-4	%	88,741		19	%

Shareholders' equity
Common stock	57,931		57,819		41,065		112		0	%	16,866		41	%
Additional paid-in capital	2,739		2,607		2,445		132		5	%	294		12	%
Retained earnings	20,396		19,266		17,160		1,130		6	%	3,236		19	%
Accumulated other comprehensive income	(813	)	(171	)	34		(642	)	375	%	(847	)	-2491	%
	80,253		79,521		60,704		732		1	%	19,549		32	%

Total liabilities and shareholders' equity	646,231		671,245		537,941		(25,014	)	-4	%	108,290		20	%

PRIVATE BANCORP OF AMERICA, INC.
SELECTED FINANCIAL DATA

								March 31, 2018					March 31, 2018
	For the three months ended							Q-o-Q					Y-o-Y
INCOME STATEMENT	March 31, 2018		December 31, 2017			March 31, 2017		change ($)			change (%)		change ($)			change (%)
(unaudited - in $000s, except per share data)

Interest Income
Loans		6,216		6,241			5,501		(25	)	0	%		715		13	%
Investment securities		566		321			188		245		76	%		378		201	%
Deposits in other financial institutions		259		214			119		45		21	%		140		118	%
		7,041		6,776			5,808		265		4	%		1,233		21	%

Interest Expense
Deposits		477		429			375		48		11	%		102		27	%
Borrowings		282		267			209		15		6	%		73		35	%
		759		696			584		63		9	%		175		30	%

Net interest income		6,282		6,080			5,224		202		3	%		1,058		20	%
Provision for credit losses		-		300			-		(300	)	-100	%		-		NM
Net interest income after provision for credit losses		6,282		5,780			5,224		502		9	%		1,058		20	%

Noninterest income:
Service charges on deposit accounts		71		72			96		(1	)	-1	%		(25	)	-26	%
Net gain on sale of loans & leases		-		73			146		(73	)	NM			(146	)	-100	%
Gain (loss) on sale of investment securities		-		-			-		-		NM			-		NM
Other noninterest income		75		26			153		49		188	%		(78	)	-51	%
		146		171			395		(25	)	-15	%		(249	)	-63	%

Noninterest expense:
Salary and employee benefits		3,063		2,581			2,226		482		19	%		837		38	%
Occupancy and equipment		523		458			318		65		14	%		205		64	%
Data processing		339		260			289		79		30	%		50		17	%
Professional services		370		217			168		153		71	%		202		120	%
Other expenses		551		546			317		5		1	%		234		74	%
		4,846		4,062			3,318		784		19	%		1,528		46	%

Income before provision for income tax		1,582		1,889			2,301		(307	)	-16	%		(719	)	-31	%
Provision for income tax		453		1,999			955		(1,546	)	-77	%		(502	)	-53	%
Net income		1,129		(110	)		1,346		1,239		NM			(217	)	-16	%
Net income available to common shareholders		1,118		(109	)		1,334		1,227		NM			(216	)	-16	%

Earnings per share
Basic earnings per share	$	0.23	$	(0.02	)	$	0.33	$	0.25		NM		$	(0.10	)	-31	%
Diluted earnings per share	$	0.22	$	(0.02	)	$	0.32	$	0.24		NM		$	(0.10	)	-31	%

Average shares outstanding		4,962,128		4,954,790			4,077,070		7,338		0	%		885,058		22	%
Diluted average shares outstanding		5,069,098		5,061,760			4,151,730		7,338		0	%		917,368		22	%

PRIVATE BANCORP OF AMERICA, INC.
SELECTED FINANCIAL DATA

	For the three months ended				For the three months ended				For the three months ended
	March 31, 2018				December 31, 2017				March 31, 2017
	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	65,798	259	1.60	%	78,516	214	1.08	%	61,198	119	0.79	%
Investment securities	88,276	566	2.60	%	54,751	321	2.33	%	30,340	188	2.51	%
Loans	484,180	6,216	5.21	%	481,667	6,241	5.14	%	429,768	5,501	5.19	%
Total interest-earning assets	638,254	7,041	4.47	%	614,934	6,776	4.37	%	521,306	5,808	4.52	%
Noninterest-earning assets	18,734				18,781				20,725
Total Assets	656,988				633,715				542,031

Interest-Bearing Liabilities
Interest-bearing transaction accounts	17,002	8	0.19	%	13,469	7	0.21	%	13,490	7	0.21	%
Money market	281,175	361	0.52	%	279,626	302	0.43	%	183,483	192	0.42	%
Savings deposits	5,516	3	0.22	%	5,230	3	0.23	%	5,734	3	0.21	%
Certificates of deposit	53,369	106	0.81	%	53,685	116	0.86	%	89,355	173	0.79	%
Total Interest-Bearing Deposits	357,062	478	0.54	%	352,010	428	0.48	%	292,062	375	0.52	%

FHLB advances	49,778	179	1.46	%	50,000	163	1.29	%	50,400	107	0.86	%
Other borrowings	7,897	102	5.24	%	7,894	104	5.23	%	7,885	102	5.25	%
Total Interest-Bearing Liabilities	57,675	281	1.98	%	57,894	267	1.83	%	58,285	209	1.45	%

Noninterest-bearing deposits	158,611				140,454				129,043
Total Funding Sources	573,348	759	0.54	%	550,358	695	0.50	%	479,390	584	0.49	%

Noninterest-bearing liabilities	3,753				3,623				2,556

Shareholders' equity	79,887				79,734				60,085

Total Liabilities and Shareholders' Equity	656,988				633,715				542,031

Net interest spread			3.94	%			3.87	%			4.02	%

Net interest income		6,282				6,081				5,224
Net interest margin			3.99	%			3.92	%			4.06	%

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

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