PBB Bancorp Reports Continual Strong Earnings Through 3rd Quarter 2016

LOS ANGELES--()--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
 

Contacts

PBB Bancorp
John R. Polen
President and Chief Executive Officer
213-689-4800
john.polen@pbbla.com

Contacts

PBB Bancorp
John R. Polen
President and Chief Executive Officer
213-689-4800
john.polen@pbbla.com