PBB Bancorp Report for Full Year of 2015

LOS ANGELES--()--PBB Bancorp (“PBCA”) (OTCQX: PBCA), the parent company of Premier Business Bank (“Premier”), reported significant growth in net income and total assets for the year ended December 31, 2015.

Net income for the year ended 2015 was $1.9mm or $0.55 per share, which included $257,000 of after-tax pre-merger expenses, reflected an increase of 155% over the prior year. Net interest income increased $3.0mm, or 47%, as compared to the prior year primarily due to the growth in the loan portfolio of $51.9mm early in the year. Non-interest income increased $0.4mm, or 77%, as compared to the prior year as a result of greater SBA loan activity in 2016. The results in our significant growth reflected in our pre-tax income increasing $2.1mm, or 166%, as compared to last year.

Total assets at the end of 2015 were $274.9mm, increasing $55mm or 25%, primarily centered in the loan portfolio which increased $51.9mm, or 28%, to $235.3mm at the end of the year. Funding the growth of our total assets was the increase in total deposits of $23.0mm and an increase in the use of FHLB borrowings of $30.0mm. Asset quality remains outstanding with no non-accrual loans, no criticized assets and no loans past due more than 30 days.

Premier’s momentum continues as we have successfully merged with First Mountain Bank in Big Bear, CA. The merger accelerated our growth in total assets to over $425.0mm at the end of January 2016. “We are extremely proud of successfully merging First Mountain Bank as a division of Premier Business Bank. Our priorities for the coming year are to remain focused on efficiency, growth, and earnings,” stated John R. Polen, president and chief executive officer.

PBB Bancorp is the parent company of Premier Business Bank, a full service community business bank headquartered in downtown Los Angeles, California. Premier has two additional locations in Los Angeles County; a community-based full service retail branch in Palos Verdes and an SBA loan center in Torrance; and through a recent successful merger in the first quarter of 2016 with First Mountain Bank, three additional locations in San Bernardino County; community-based full service retail branches in Big Bear Lake, Running Springs, and Lucerne Valley.

Premier Business Bank, Premier Bank of Palos Verdes, and First Mountain Bank have a client-centric service philosophy that focuses on client relationships with individuals, small to medium size businesses, real estate investors, professional management firms, and entrepreneurs. PBB Bancorp currently trades on OTCQX under the symbol “PBCA.” For more information, please visit us at www.ibankpremier.com or www.firstmountainbank.com.

FORWARD-LOOKING INFORMATION:

This financial information release is based on unaudited financial results. Certain statements contain "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) such as statements about certain plans, expectations and projections which are subject to numerous risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in California, the adequacy of the Bank’s allowance for loan losses, and other factors beyond the Bank’s control. Such risks and uncertainties could cause results for subsequent interim periods or for entire years to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management’s view only as of the date hereof. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

PBB BANCORP
Consolidated Statement of Condition
Prior Year Comparison
(unaudited)
   
 
For the Period Ended December 31,
  2015       2014  
Assets
 
Cash and due from banks $ 33,747,425 $ 33,686,023
Federal funds sold - -
Investment securities 1,636,776 -
Investment in subsidiary - -
 
Loans and leases held for sale 2,258,797 -
 
Loans and leases 235,262,712 183,360,593
Non Accrual loans - -
Deferred loan costs / (fees) 150,019 154,669
Allowance for loan losses   (2,120,000 )     (1,865,000 )
Net loans and leases 233,292,730 181,650,262
 
Fixed assets, net 135,376 248,288
Accrued interest receivable 579,139 404,103
Other assets   3,219,763       3,885,181  
Total assets $ 274,870,006     $ 219,873,857  
 
Liabilities
 
Deposits:
Demand deposits $ 42,936,110 $ 29,483,961
Interest bearing demand deposits 18,535,574 18,280,250
Money market accounts 36,417,107 38,453,573
Savings accounts 800,821 387,898
Certificates of deposit less than $100K 20,455,494 16,600,900
Certificates of deposit $100K or more   69,188,113       62,154,449  
Total deposits 188,333,219 165,361,032
 
Federal funds purchased - -
Overnight Borrowings - FHLB 15,000,000 11,000,000
FHLB Term Borrowings 45,000,000 19,000,000
Accrued interest payable on deposits 49,273 39,948
Other liabilities   753,754       669,793  
Total liabilities   249,136,246       196,070,773  
 
Stockholders' equity
 
Common stock; issued and outstanding 26,985,142 26,985,142
3,396,550 shares at 12/31/15 and 12/31/14
Add'l paid-in-capital - stock based comp. 1,366,343 1,296,143
Retained earnings - preopening expenses (863,858 ) (863,858 )
Retained earnings (3,614,343 ) (4,346,642 )
Cash dividend - -
Current year net income (loss) 1,869,976 732,299
Unrealized gain (loss) on securities AFS   (9,500 )     -  
Total stockholders' equity   25,733,760       23,803,084  
Total liabilities and stockholders' equity $ 274,870,006     $ 219,873,857  
 
PBB BANCORP
Consolidated Statement of Operations
Prior Year Quarterly Comparison
(unaudited)
   
For the 3 Months Ended
12/31/15   12/31/14
Interest income:
Loans and leases, including fees $ 2,890,413 $ 2,162,083
Investment securities 3,906 -
Federal funds sold - -
Interest Income-FRB 20,619 11,491
Interest Income-Other   34,528     23,664
Total interest income 2,949,466 2,197,238
 
Interest expense:
Interest bearing demand deposits 8,398 5,339
Money market accounts 42,711 41,888
Savings accounts 365 205
Certificates of deposit less than $100K 62,408 39,038
Certificates of deposit $100K or more 201,199 142,056
FHLB Overnight Borrowings and federal funds purchased 111 535
FHLB Term Borrowings   129,948     59,857
Total interest expense 445,141 288,917
 
Net int. income before prov. for loan losses 2,504,325 1,908,322
 
Provision for loan losses 20,000 150,000
 
Net int. income after prov. for loan losses 2,484,325 1,758,322
 
Noninterest income:
Fees and service charges on dep. accts. 6,138 4,910
Analysis charges 18,241 24,504
Gain (loss) on sale of SBA loans - 71,211
Other income   38,788     133,898
Total noninterest income 63,166 234,523
 
Noninterest expense:
Salaries and benefits 1,165,909 865,060
Occupancy expense 101,972 92,572
Furniture, fixtures and equipment 50,784 44,147
Other expenses   696,730     372,506
Total noninterest expense 2,015,396 1,374,285
 
Income before tax provision   532,096     618,559
 
Provision for income taxes   315,103     258,660
Net income (loss) $ 216,993   $ 359,899
 
PBB BANCORP
Consolidated Statement of Operations
Prior Year to Date Comparison
(unaudited)
   
For the 12 Months Ended
12/31/15   12/31/14
Interest income:
Loans and leases, including fees $ 10,579,348 $ 7,229,028
Investment securities 3,906 -
Federal funds sold - -
Interest Income-FRB 64,457 78,633
Interest Income-Other   184,152     71,258
Total interest income 10,831,862 7,378,919
 
Interest expense:
Interest bearing demand deposits 31,599 19,201
Money market accounts 173,687 203,298
Savings accounts 1,070 421
Certificates of deposit less than $100K 209,165 92,605
Certificates of deposit $100K or more 713,725 553,759
FHLB Overnight Borrowings and federal funds purchased 627 1,447
FHLB Term Borrowings   459,925     237,476
Total interest expense 1,589,796 1,108,208
 
Net int. income before prov. for loan losses 9,242,066 6,270,711
 
Provision for loan losses 255,000 150,000
 
Net int. income after prov. for loan losses 8,987,066 6,120,711
 
Noninterest income:
Fees and service charges on dep. accts. 23,266 18,926
Analysis charges 88,394 81,636
Gain (loss) on sale of SBA loans 706,233 115,013
Other income   76,890     289,217
Total noninterest income 894,784 504,793
 
Noninterest expense:
Salaries and benefits 4,202,979 3,355,477
Occupancy expense 393,103 369,924
Furniture, fixtures and equipment 186,743 178,775
Other expenses   1,735,978     1,455,679
Total noninterest expense 6,518,803 5,359,855
 
Income before tax provision   3,363,046     1,265,649
 
Provision for income taxes   1,493,070     533,350
Net income (loss) $ 1,869,976   $ 732,299

Contacts

PBB Bancorp
John R. Polen
President and Chief Executive Officer
Phone: 213-689-4800
Mobile: 310-422-8575
Email: john.polen@pbbla.com

Contacts

PBB Bancorp
John R. Polen
President and Chief Executive Officer
Phone: 213-689-4800
Mobile: 310-422-8575
Email: john.polen@pbbla.com