PBB Bancorp Reports Continual Strong Earnings Through 3rd Quarter 2016

LOS ANGELES--(BUSINESS WIRE)--PBB Bancorp (“PBCA”) (OTCQX: PBCA), the parent company of Premier Business Bank (“Premier”), announces continued strong earnings and growth for the third quarter of 2016. The Consolidated Balance Sheet as of September 30, 2016, reflected all-time high results: total assets of $484.5 million, net loans of $383.0 million, total deposits of $369.8 million, and total equity of $44.6 million.

Net income for the three month period ended September 30, 2016, was $1,200,000, or $0.23 per share, and net income for the nine month period ended was $4.5 million, or $0.91 per share. Net income for the nine month period included a one-time after-tax net gain of $1.7 million associated with the merger of First Mountain Bank in January 2016. Today, our core earnings outpace previous year’s results by $1.1 million for the nine month period ended September 30, 2016.

Premier is pleased to deliver strong results again this quarter, a recorded 20+ consecutive quarters of positive growth. Our team of experienced bankers are invested in the communities we serve, and work closely with customers and clients to achieve financial success. “Looking ahead, we strive to continue revenue growth, manage risk, and invest in new product enhancements and improvements to enrich our customer experience and benefit shareholder value,” stated President and CEO, John Polen.

HIGHLIGHTS for the 3rd Quarter 2016

• Net Income increased for the nine month period ended September 30, 2016, to $4.5 million compared to $1.7 million for same period last year.
• Net Interest Income before provisions increased $5.8 million, or 86.5% for the nine months ended September 2016 as compared to the same period last year.
• Total Assets were an all-time high of $484.5 million, reflecting an increase of $219.2 million, or 82.6% as compared to the prior year.
• Net Loans were an all-time high of $383.0 million, increasing $160.8 million, or 72.4% as compared to the prior year.
• Total Deposits were an all-time high of $369.8 million, increasing $176.1 million, or 90.9% when compared to the prior year.

ABOUT PBB BANCORP AND PREMIER BUSINESS BANK

PBB Bancorp is the parent company of Premier Business Bank and its full service community bank divisions, Premier Bank of Palos Verdes and First Mountain Bank. Premier Business Bank is headquartered in downtown Los Angeles, California, and has three additional locations in Los Angeles County, two community-based full service retail branches in Rolling Hills Estates and Palos Verdes Estates, and an SBA loan center in Torrance. Our First Mountain Bank division has three full service retail branches located in San Bernardino County, California. Branches are located 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: ibankpremier.com or firstmountainbank.com

FORWARD-LOOKING INFORMATION:

This financial information in this 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 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 September 30,
	2016			2015
Assets
Cash and due from banks	$	72,827,801		$	37,362,364
Federal funds sold		-			-
Investment securities		12,063,578			-
Investment in subsidiary		-			-
Loans and leases held for sale		2,955,165			1,494,019
Loans and leases		384,849,563			224,142,785
Non accrual loans		1,079,814			-
Deferred loan costs / (fees)		(582,201	)		174,779
Allowance for loan losses		(2,333,953	)		(2,100,000	)
Net loans and leases		383,013,224			222,217,565
Fixed assets, net		3,061,908			167,025
Accrued interest receivable		990,313			571,076
Bank owned life insurance		3,932,596			-
Other assets		5,628,449			3,476,772
Total assets	$	484,473,035		$	265,288,820
Liabilities
Deposits:
Demand deposits	$	105,690,240		$	41,002,386
Interest bearing demand deposits		53,190,869			17,054,287
Money market accounts		59,581,877			37,119,023
Savings accounts		24,943,663			650,472
Certificates of deposit		126,392,178			97,904,579
Total deposits		369,798,826			193,730,748
Federal funds purchased		-			-
Overnight borrowings - FHLB		15,000,000			-
FHLB term borrowings		51,000,000			45,000,000
Accrued interest payable		72,786			75,482
Other liabilities		4,010,035			973,874
Total liabilities		439,881,647			239,780,103
Stockholders' equity
Common stock; issued and outstanding 4,967,458 shares at 09/30/16 and 3,396,550 shares at 09/30/15		38,364,550			26,985,142
Add'l paid-in-capital - stock based comp.		4,228,632			1,348,793
Retained earnings - preopening expenses		(863,858	)		(863,858	)
Retained earnings		(1,744,367	)		(3,614,343	)
Cash dividend		-			-
Current year net income (loss)		4,510,091			1,652,983
Unrealized gain (loss) on securities AFS		96,340			-
Total stockholders' equity		44,591,388			25,508,717
Total liabilities and stockholders' equity	$	484,473,035		$	265,288,820

PBB BANCORP
Consolidated Statement of Operations
Prior Year Quarterly Comparison
(unaudited)
	For the 3 Months Ended
	9/30/16		9/30/15
Interest income:
Loans and leases, including fees	$	5,000,412	$	2,724,083
Investment securities		71,225		-
Federal funds sold		-		-
Interest Income-FRB		46,944		18,275
Interest Income-Other		57,821		44,356
Total interest income		5,176,403		2,786,714
Interest expense:
Interest bearing demand deposits		12,447		8,148
Money market accounts		52,116		42,118
Savings accounts		7,500		306
Retail certificates of deposit		145,166		49,822
Qwickrate and brokered certificates of deposit		156,273		190,062
FHLB overnight borrowings and federal funds purchased		17,471		-
FHLB term borrowings		148,195		129,853
Other borrowings		25,556		-
Total interest expense		564,723		420,307
Net int. income before prov. for loan losses		4,611,680		2,366,407
Provision for loan losses		135,000		-
Net int. income after prov. for loan losses		4,476,680		2,366,407
Noninterest income:
Fees and service charges on dep. accts.		29,343		5,643
Analysis charges		20,391		20,861
Gain (loss) on sale of SBA loans		-		80,668
Other income		335,131		25,122
Total noninterest income		384,866		132,294
Noninterest expense:
Salaries and benefits		1,738,528		1,015,606
Occupancy expense		231,094		105,176
Furniture, fixtures and equipment		85,467		47,642
Other expenses		918,296		372,347
Total noninterest expense		2,973,385		1,540,770
Income before tax provision		1,888,160		957,931
Provision for income taxes		727,990		398,506
Net income (loss)	$	1,160,170	$	559,425

PBB BANCORP
Consolidated Statement of Operations
Prior Year to Date Comparison
(unaudited)
	For the 9 Months Ended
	9/30/16		9/30/15
Interest income:
Loans and leases, including fees	$	13,647,696	$	7,688,934
Investment securities		194,050		-
Federal funds sold		0		-
Interest Income-FRB		121,727		43,838
Interest Income-Other		161,230		149,623
Total interest income		14,124,704		7,882,396
Interest expense:
Interest bearing demand deposits		35,964		23,201
Money market accounts		142,892		130,975
Savings accounts		19,626		705
Retail certificates of deposit		405,106		146,757
Qwickrate and brokered certificates of deposit		444,682		512,526
FHLB overnight borrowings and federal funds purchased		50,173		516
FHLB term borrowings		411,681		329,977
Other borrowings		51,389		-
Total interest expense		1,561,512		1,144,656
Net int. income before prov. for loan losses		12,563,192		6,737,740
Provision for loan losses		210,000		235,000
Net int. income after prov. for loan losses		12,353,192		6,502,740
Noninterest income:
Fees and service charges on dep. accts.		91,643		17,128
Analysis charges		64,093		70,153
Gain (loss) on sale of SBA loans		297,485		706,233
Other income		2,735,486		38,103
Total noninterest income		3,188,708		831,617
Noninterest expense:
Salaries and benefits		5,230,348		3,037,070
Occupancy expense		599,633		291,131
Furniture, fixtures and equipment		251,526		135,958
Other expenses		3,166,601		1,039,248
Total noninterest expense		9,248,108		4,503,407
Income before tax provision		6,293,791		2,830,950
Provision for income taxes		1,783,700		1,177,967
Net income (loss)	$	4,510,091	$	1,652,983