Private Bancorp of America, Inc. Announces Jump in Earnings Per Share and Continued Growth

Total Assets up 32%
Net Loans up 50%
Deposits up 40%
Non-interest earning DDA up 59%
Interest Income up 61%
Net interest Income up 53%
Non-Interest Income up 278%
Net Income up 41%
Earnings Per Share up 38%

All performance measures above reflect year over year comparisons of Q1 2019 vs Q1 2018.

LA JOLLA, Calif., April 17, 2019 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM) (“PBAM”), parent company of CalPrivate Bank (“Bank”), announced unaudited financial results for the first quarter ending March 31, 2019. Total Assets were $852,538,000 at March 31, 2019, a 32% increase of $206,307,000 over Total Assets at March 31, 2018. The asset growth reflects record Loan growth of 50% up $235,132,000 from March 31, 2018 to $706,767,000 and a 40% increase in Deposits up $202,221,000 to $706,827,000 for the same period. Credit quality remains outstanding with no loans past due more than 30 days. Net-Interest Income was a record $9,631,000 for the quarter, up 53%. Net interest margin remains a healthy 4.77% for the three months ended March 31, 2019.

Tom Wornham, President and CEO of PBAM and CEO of the Bank said, “We are delighted to report the progress of our organic growth strategy we began in 2017. The record levels of Loans, Deposits, Assets and Revenues are now beginning to yield higher returns in ROE, ROA, EPS and Net Income. The growth continues to come from all areas of our geographic footprint. The Non-Interest income growth during the first quarter was in spite of SBA loan production and sales being negatively impacted by the government shutdown. The increase in Non-interest expense reflects our continued investment in quality people and products, which fuel our growth strategy. We look forward to attaining more operating efficiencies in the coming quarters as our expense levels come in line with our record growth.”

Rick Sowers, President of CalPrivate Bank, added, “Our relationship development teams in each market continue to execute on our growth and service strategies. We are very fortunate to have such a quality team of professionals. Our growth in non-interest bearing DDA and net loans reflects their efforts in delivering on our brand promise.”

Significant events during the quarter include the opening of the Bank’s South Bay Los Angeles office in El Segundo, California. The Bank also completed an upgrade to its website and the introduction of the Private Business Capital website at PBCapital.com. The latter opens up more direct online access to the Bank’s SBA preferred lender channel.

“We are pleased with our first quarter earnings growth which reflects the initial impact of rapid organic growth resulting from prior strategic investment in people and systems,” said Selwyn Isakow, Chairman of PBAM and the Bank. “As we grow our business base in coastal Southern California through exceptional service and creative solutions for clients, we look forward to further expanding and leveraging our infrastructure.”

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, South Bay LA 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 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, 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 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

BALANCE SHEET							03/31/19					03/31/19
(unaudited - in $000s)							Q-o-Q					Y-o-Y
	03/31/19		12/31/18		03/31/18		change ($)		change (%)			change ($)		change (%)


Assets

Cash and due from banks	18,404		24,140		15,596		(5,736	)		-24	%	2,808		18	%
Interest-bearing deposits at Federal Reserve Bank	16,843		18,964		38,115		(2,121	)		-11	%	(21,272	)	-56	%
	35,247		43,104		53,711		(7,857	)		-18	%	(18,464	)	-34	%
Interest-bearing time deposits with other institutions	2,751		2,751		2,998		-			0	%	(247	)	-8	%
Investment securities available for sale	85,852		98,170		105,828		(12,318	)		-13	%	(19,976	)	-19	%
Investment securities held to maturity	-		-		-

Loans	713,408		694,531		476,156		18,877			3	%	237,252		50	%
Allowance for loan losses	(6,641	)	(6,252	)	(4,521	)	(389	)		6	%	(2,120	)	47	%
	706,767		688,279		471,635		18,488			3	%	235,132		50	%

Federal Home Loan Bank stock, at cost	3,310		3,310		2,295		-			0	%	1,015		44	%
Right of use asset	6,951		-		-		6,951			NM		6,951		NM
Premises and equipment, net	2,416		2,223		1,969		193			9	%	447		23	%
Goodwill	-		-		-		-			NM		-		NM
Other intangible assets	928		884		465		44			5	%	463		100	%
Deferred tax asset/liability	4,409		4,409		4,353		-			0	%	56		1	%
Accrued interest receivable	2,535		2,531		2,030		4			0	%	505		25	%
Other assets	1,372		1,503		947		(131	)		-9	%	425		45	%
	852,538		847,164		646,231		5,374			1	%	206,307		32	%

Liabilities and Shareholders' Equity

Liabilities
Noninterest Bearing	263,255		226,119		165,067		37,136			16	%	98,188		59	%
Interest Bearing	443,572		470,344		339,539		(26,772	)		-6	%	104,033		31	%
Total Deposits	706,827		696,463		504,606		10,364			1	%	202,221		40	%
FHLB Borrowings	40,000		55,000		50,000		(15,000	)		-27	%	(10,000	)	-20	%
Other borrowings	7,832		7,909		7,899		(77	)		-1	%	(67	)	-1	%
Accrued interest payable and other liabilities	11,777		4,241		3,473		7,536			178	%	8,304		239	%
	766,436		763,613		565,978		2,823			0	%	200,458		35	%

Shareholders' equity
Common stock	58,576		58,373		57,931		203			0	%	645		1	%
Additional paid-in capital	3,062		3,083		2,739		(21	)		-1	%	323		12	%
Retained earnings	24,952		23,364		20,396		1,588			7	%	4,556		22	%
Accumulated other comprehensive income	(488	)	(1,269	)	(813	)	781			-62	%	325		-40	%
	86,102		83,551		80,253		2,551			3	%	5,849		7	%

	852,538		847,164		646,231		5,374			1	%	206,307		32	%


								03/31/19					03/31/19
STATEMENTS OF INCOME	For the three months ended							Q-o-Q					Y-o-Y
(unaudited - in $000s, except per share data)	03/31/19		12/31/18			03/31/18		change ($)			change (%)		change ($)			change (%)

Interest Income
Loans		10,511		9,459			6,216		1,052		11	%		4,295		69	%
Investment securities		673		747			566		(74	)	-10	%		107		19	%
Deposits in other financial institutions		133		127			259		6		5	%		(126	)	-49	%
		11,317		10,333			7,041		984		10	%		4,276		61	%

Interest Expense
Deposits		1,207		860			477		347		40	%		730		153	%
Borrowings		479		710			282		(231	)	-33	%		197		70	%
		1,686		1,570			759		116		7	%		927		122	%

Net interest income		9,631		8,763			6,282		868		10	%		3,349		53	%
Provision for credit losses		389		863			-		(474	)	-55	%		389		NM
Net interest income after provision for credit losses		9,242		7,900			6,282		1,342		17	%		2,960		47	%

Noninterest income:
Service charges on deposit accounts		121		96			71		25		26	%		50		70	%
Net gain on sale of loans & leases		347		410			38		(63	)	-15	%		309		813	%
Gain (loss) on sale of investment securities		10		(13	)		-		23		-177	%		10		NM
Other noninterest income		74		68			37		6		9	%		37		100	%
		552		561			146		(9	)	-2	%		406		278	%

Noninterest expense:
Salary and employee benefits		5,229		4,741			3,063		488		10	%		2,166		71	%
Occupancy and equipment		674		620			523		54		9	%		151		29	%
Data processing		524		541			339		(17	)	-3	%		185		55	%
Professional services		392		350			370		42		12	%		22		6	%
Other expenses		730		688			551		42		6	%		179		32	%
		7,549		6,940			4,846		609		9	%		2,703		56	%

Income before provision for income tax		2,245		1,521			1,582		724		48	%		663		42	%
Provision for income tax		656		474			453		182		38	%		203		45	%
Net income		1,589		1,047			1,129		542		52	%		460		41	%
Net income available to common shareholders		1,559		1,025			1,118		534		52	%		441		39	%

Earnings per share
Basic earnings per share	$	0.31	$	0.21		$	0.23	$	0.11		51	%	$	0.09		38	%
Diluted earnings per share	$	0.30	$	0.20		$	0.22	$	0.10		51	%	$	0.08		38	%

Average shares outstanding		4,996,811		4,970,090			4,962,128		26,721		1	%		34,683		1	%
Diluted average shares outstanding		5,114,096		5,089,135			5,069,098		24,961		0	%		44,998		1	%


CONDENSED BALANCE SHEETS	03/31/19			12/31/18			09/30/18			06/30/18			03/31/18
(FIVE QUARTER DATA)
(unaudited - in $000s, except per share amounts)
Assets
Cash and due from banks		37,998			45,855			60,083			62,058			56,709
Investment securities		85,852			98,170			99,217			101,451			105,828

Loans		713,408			694,531			582,292			532,296			476,156
Allowance for loan losses		(6,641	)		(6,252	)		(5,389	)		(4,893	)		(4,521	)
		706,767			688,279			576,903			527,403			471,635

Right of use asset		6,951			-			-			-			-
Premises and equipment, net		2,416			2,223			2,067			2,202			1,969
Other assets and interest receivable		12,554			12,637			11,692			17,522			10,090
		852,538			847,164			749,962			710,636			646,231

Liabilities and Shareholders' Equity

Liabilities
Noninterest Bearing		263,255			226,119			180,657			165,611			165,067
Interest Bearing		443,572			470,344			368,462			362,870			339,539
Total Deposits		706,827			696,463			549,119			528,481			504,606
FHLB Borrowings		47,832			62,909			114,906			97,902			57,899
Accrued interest payable and other liabilities		11,777			4,241			4,046			3,415			3,473
		766,436			763,613			668,071			629,798			565,978

Shareholders' equity
Common stock		58,576			58,373			58,242			58,167			57,931
Additional paid-in capital		3,062			3,083			2,791			2,715			2,739
Retained earnings		24,952			23,364			22,318			21,254			20,396
Accumulated other comprehensive income		(488	)		(1,269	)		(1,460	)		(1,298	)		(813	)
		86,102			83,551			81,891			80,838			80,253

		852,538			847,164			749,962			710,636			646,231

Book value per common share	$	16.90		$	16.41		$	16.23		$	16.01		$	16.01
Tangible book value per common share	$	16.72		$	16.23		$	16.07		$	15.92		$	15.92

CAPITAL RATIOS (%):
Tier 1 leverage ratio		9.97	%		10.39	%		11.51	%		12.14	%		12.03	%
Tier 1 risk-based capital ratio		11.10	%		11.36	%		13.01	%		13.78	%		15.21	%
Common equity Tier 1 ratio		11.10	%		11.36	%		13.01	%		13.78	%		15.21	%
Total risk-based capital ratio		12.01	%		12.25	%		13.90	%		14.66	%		16.11	%
Tangible equity / tangible assets		10.00	%		9.74	%		10.83	%		11.32	%		12.36	%



CONDENSED STATEMENTS OF INCOME	03/31/19			12/31/18			09/30/18			06/30/18			03/31/18
(FIVE QUARTER DATA)
(unaudited - in $000s, except per share data)

Interest income		11,317			10,333			8,644			7,604			7,041
Interest expense		1,686			1,570			1,174			869			759
Net interest income		9,631			8,763			7,470			6,735			6,282
Provision for credit losses		389			863			496			372			-
Net interest income after provision for credit losses		9,242			7,900			6,974			6,363			6,282

Noninterest income		552			561			916			691			146

Salary and employee benefits		5,229			4,741			4,269			3,870			3,063
Occupancy and equipment		674			620			610			558			523
Data processing		524			541			487			534			339
Professional services		392			350			288			240			370
Other expenses		730			688			703			639			551
Total noninterest expense		7,549			6,940			6,357			5,841			4,846

Net income before taxes		2,245			1,521			1,533			1,213			1,582
Income taxes		656			474			435			350			453
Net income		1,589			1,047			1,098			863			1,129
Net income available to common shareholders		1,559			1,025			1,081			855			1,118

Earnings per share
Basic earnings per share	$	0.31		$	0.21		$	0.22		$	0.17		$	0.23
Diluted earnings per share	$	0.30		$	0.20		$	0.21		$	0.17		$	0.22

Average shares outstanding		4,997			4,970			4,968			4,955			4,962
Diluted average shares outstanding		5,114			5,148			5,088			5,074			5,069

PERFORMANCE RATIOS (%):
Return on average assets (annualized)		0.76	%		0.52	%		0.62	%		0.53	%		0.72	%
Return on average equity (annualized)		7.60	%		5.03	%		5.35	%		4.30	%		5.74	%
Return on average tangible common equity (annualized)		7.68	%		5.08	%		5.41	%		4.32	%		5.77	%
Net interest margin		4.77	%		4.52	%		4.35	%		4.23	%		3.94	%
Net interest spread		4.71	%		4.45	%		4.28	%		4.16	%		3.99	%
Efficiency ratio		74.13	%		74.43	%		75.80	%		78.66	%		75.39	%
Noninterest expense / average assets (annualized)		3.61	%		3.47	%		3.57	%		3.62	%		2.99	%


AVERAGE BALANCES (FIVE QUARTER DATA)	03/31/19		12/31/18		09/30/18		06/30/18		03/31/18
(unaudited - in $000s)
Total assets	847,900		793,271		706,069		654,923		656,988
Earning assets	818,630		768,519		681,252		638,448		638,254
Total loans	701,715		640,963		541,049		497,917		454,180
Total deposits	690,384		600,640		528,523		495,029		515,673
Common equity	84,827		82,606		81,364		80,546		79,887


LOANS (FIVE QUARTER DATA)	03/31/19		12/31/18		09/30/18		06/30/18		03/31/18
(unaudited - in $000s)
Real estate - investor owned	240,093		233,879		213,139		202,025		190,200
Real estate - owner occupied	136,758		122,258		86,216		62,839		61,706
Real estate - multifamily	69,082		62,388		62,811		66,024		60,948
Real estate - single family	58,334		59,685		63,906		54,449		42,646
Commercial business	173,027		180,602		124,770		118,296		100,090
Land and construction	31,006		24,679		22,640		22,913		18,925
Consumer	5,108		5,255		5,967		5,750		1,641
Other	-		-		-		-		-
Total loans held for investment	713,408		689,407		579,449		532,296		476,156

Loans held for sale	3,201		5,124		2,843		-		-
Total loans, including loans held for sale	713,408		694,531		582,292		532,296		476,156

Allowance for loan losses	(6,641	)	(6,252	)	(5,389	)	(4,893	)	(4,521	)
Net loans	706,767		688,279		576,903		527,403		471,635


DEPOSITS (FIVE QUARTER DATA)	03/31/19		12/31/18		09/30/18		06/30/18		03/31/18
(unaudited - in $000s)
Non interest bearing DDA	263,255		226,119		180,657		165,610		165,067
Interest bearing DDA	23,195		21,079		16,481		17,437		15,566
Savings & MMA	325,880		344,776		294,600		295,743		277,434
Retail CD	4,135		7,651		6,461		7,294		7,114
Jumbo CD	90,362		96,838		50,920		42,397		39,425
Total deposits	706,827		696,463		549,119		528,481		504,606


CREDIT QUALITY PROFILE AND METRICS	03/31/19		12/31/18		09/30/18		06/30/18		03/31/18
(FIVE QUARTER DATA)
(unaudited - in $000s)
Total Loans	713,408		694,531		582,292		532,296		476,156
30-89 day past due loans	-		-		-		-		-
90+ day past due loans	-		-		-		-		-
Nonaccrual loans	-		-		-		1,481		1,499

NPAs / Assets (%)	0.00	%	0.00	%	0.00	%	0.21	%	0.23	%
NPLs / loans & REO (%)	0.00	%	0.00	%	0.00	%	0.28	%	0.32	%
Net chargeoffs	0		0		0		0		0
NCOs / avg loans (annualized) (%)	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
Reserve ratio (%)	0.93	%	0.90	%	0.93	%	0.92	%	0.95	%
Reserve coverage ratio (%)	NM		NM		NM		330	%	302	%


	For the three months ended				For the three months ended				For the three months ended
	March 31, 2019				December 31, 2018				March 31, 2018
	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	24,237	133	2.23	%	24,810	127	2.03	%	65,798	259	1.60	%
Investment securities	92,678	673	2.95	%	102,746	747	2.88	%	88,276	566	2.60	%
Loans	701,715	10,511	6.07	%	640,963	9,459	5.85	%	484,180	6,216	5.21	%
Total interest-earning assets	818,630	11,317	5.61	%	768,519	10,333	5.33	%	638,254	7,041	4.47	%
Noninterest-earning assets	29,270				24,752				18,734
Total Assets	847,900				793,271				656,988

Interest-Bearing Liabilities
Interest-bearing transaction accounts	20,554	14	0.28	%	17,890	9	0.20	%	17,002	8	0.19	%
Money market	315,798	646	0.83	%	306,361	530	0.69	%	281,175	361	0.52	%
Savings deposits	6,715	4	0.24	%	6,385	4	0.25	%	5,516	3	0.22	%
Certificates of deposit	105,361	543	2.09	%	70,416	317	1.79	%	53,369	106	0.81	%
Total Interest-Bearing Deposits	448,428	1,207	1.09	%	401,052	860	0.85	%	357,062	478	0.54	%

FHLB advances	60,056	377	2.55	%	97,918	605	2.45	%	49,778	179	1.46	%
Other borrowings	7,871	102	5.26	%	7,907	105	5.27	%	7,897	102	5.24	%
Total Interest-Bearing Liabilities	67,927	479	2.86	%	105,825	710	2.66	%	57,675	281	1.98	%

Noninterest-bearing deposits	241,956				199,588				158,611
Total Funding Sources	758,311	1,686	0.90	%	706,465	1,570	0.88	%	573,348	759	0.54	%

Noninterest-bearing liabilities	4,762				4,200				3,753

Shareholders' equity	84,827				82,606				79,887

Total Liabilities and Shareholders' Equity	847,900				793,271				656,988

Net interest spread			4.71	%			4.45	%			3.94	%

Net interest income		9,631				8,763				6,282
Net interest margin			4.77	%			4.52	%			3.99	%

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