PBB Bancorp Reports a Record Year with Total Assets of over $500 Million

LOS ANGELES--()--PBB Bancorp (“PBCA”) (OTCQX: PBCA), the parent company of Premier Business Bank (“Premier”), announced a record year in the bank’s 10 year history. The Consolidated Balance Sheet as of December 31, 2016 reflected exceptional results: total assets of $516.9 million; net loans of $412.7 million; total deposits of $415.5 million; and total equity of $45.7 million.

Net income for the 3 month period ended December 31, 2016 was $1,200,000, or $0.24 per share and net income for the 12 month period ended was $5.7 million, or $1.15 per share. Net income for the 12 month period included a one-time after-tax net gain of $1.9 million associated with the merger of First Mountain Bank in January 2016. Today, our core earnings outpace previous year’s results by $1.9 million for the 12 month period ending December 31, 2016.

With a record 24+ consecutive quarters of positive growth, Premier is extremely pleased to announce the aforementioned year-end record results. With our team of experienced bankers, and focused strategic efforts, Premier met and exceeded the strategic goals set for 2016. “I am pleased with our extraordinarily productive and successful year. We obtained our goals, including asset growth, invested in our communities, and continue to build upon our successes to offer the best community banking for our clients, businesses, real estate investors, and shareholders. It’s an exciting time for Premier Business Bank as we head into 2017 – devoting our efforts to offer new product enhancements and improvements to enrich the customer experience,” stated, President and Chief Executive Officer, John R. Polen.

HIGHLIGHTS for the Year-End 2016

  • Net Income increased for the 12 month period ended December 31, 2016 to $5.7 million compared to $1.9 million for same period last year.
  • Net Interest Income before provisions increased $7.9 million, or 85.7% for the 12 months ended December 2016 as compared to the same period last year.
  • Total Assets were an all-time high of $516.9 million reflecting an increase of $242.1 million, or 88.1% as compared to the prior year.
  • Net Loans were an all-time high of $412.7 million increasing $179.4 million, or 76.9% as compared to the prior year.
  • Total Deposits were an all-time high of $415.5 million increasing $227.2 million, or 120.6% 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 December 31,
2016   2015
Assets
 
Cash and due from banks $ 74,214,350 $ 33,747,425
Federal funds sold - -
Investment securities 10,693,892 1,636,776
Investment in subsidiary - -
 
Loans and leases held for sale 5,010,650 2,258,797
 
Loans and leases 414,652,371 235,262,712
Non accrual loans 1,079,814 -
Deferred loan costs / (fees) (622,026 ) 150,019
Allowance for loan losses   (2,429,319 )     (2,120,000 )
Net loans and leases 412,680,839 233,292,730
 
Fixed assets, net 3,707,925 135,376
Accrued interest receivable 1,025,570 579,139
Bank owned life insurance 3,959,939 -
Other assets   5,628,149       3,219,763  
Total assets $ 516,921,314     $ 274,870,006  
 
Liabilities
 
Deposits:
Demand deposits $ 120,167,820 $ 42,936,110
Interest bearing demand deposits 47,016,436 18,535,574
Money market accounts 103,460,885 36,417,107
Savings accounts 24,766,025 800,821
Certificates of deposit   120,104,451       89,643,607  
Total deposits 415,515,618 188,333,219
 
Federal funds purchased - -
Overnight borrowings - FHLB - 15,000,000
FHLB term borrowings 52,000,000 45,000,000
Accrued interest payable 59,958 49,273
Other liabilities   3,651,961       753,754  
Total liabilities   471,227,537       249,136,246  
 
Stockholders' equity
 
Common stock; issued and outstanding 38,364,550 26,985,142
4,967,458 shares at 12/31/16 and 3,396,550 shares at 12/31/15
Add'l paid-in-capital - stock based comp. 4,264,002 1,366,343
Retained earnings - preopening expenses (863,858 ) (863,858 )
Retained earnings (1,744,367 ) (3,614,343 )
Cash dividend - -
Current year net income (loss) 5,704,878 1,869,976
Unrealized gain (loss) on securities AFS   (31,428 )     (9,500 )
Total stockholders' equity   45,693,777       25,733,760  
Total liabilities and stockholders' equity $ 516,921,314     $ 274,870,006  
 
   
PBB BANCORP
Consolidated Statement of Operations
Prior Year Quarterly Comparison
(unaudited)
     
For the 3 Months Ended
12/31/16   12/31/15
Interest income:
Loans and leases, including fees $ 4,946,685 $ 2,890,413
Investment securities 49,927 3,906
Federal funds sold - -
Interest Income-FRB 57,025 20,619
Interest Income-Other   144,773     34,528
Total interest income 5,198,410 2,949,466
 
Interest expense:
Interest bearing demand deposits 15,439 8,398
Money market accounts 113,403 42,711
Savings accounts 7,367 365
Retail certificates of deposit 135,056 102,282
Qwickrate and brokered certificates of deposit 143,384 161,324
FHLB overnight borrowings and federal funds purchased 490 111
FHLB term borrowings 158,585 129,948
Other borrowings   25,556     -
Total interest expense 599,280 445,141
 
Net int. income before prov. for loan losses 4,599,130 2,504,325
 
Provision for loan losses 95,000 20,000
 
Net int. income after prov. for loan losses 4,504,130 2,484,325
 
Noninterest income:
Fees and service charges on dep. accts. 33,090 6,138
Analysis charges 10,565 18,241
Gain (loss) on sale of SBA loans - -
Other income   438,158     38,788
Total noninterest income 481,813 63,166
 
Noninterest expense:
Salaries and benefits 1,796,358 1,165,909
Occupancy expense 256,877 101,972
Furniture, fixtures and equipment 95,422 50,784
Other expenses   944,039     696,730
Total noninterest expense 3,092,696 2,015,396
 
Income before tax provision   1,893,247     532,096
 
Provision for income taxes   698,460     315,103
Net income (loss) $ 1,194,787   $ 216,993
   
PBB BANCORP
Consolidated Statement of Operations
Prior Year to Date Comparison
(unaudited)
     
For the 12 Months Ended
12/31/16   12/31/15
Interest income:
Loans and leases, including fees $ 18,594,380 $ 10,579,348
Investment securities 243,978 3,906
Federal funds sold - -
Interest Income-FRB 178,752 64,457
Interest Income-Other   306,004     184,152
Total interest income 19,323,114 10,831,862
 
Interest expense:
Interest bearing demand deposits 51,403 31,599
Money market accounts 256,295 173,687
Savings accounts 26,992 1,070
Retail certificates of deposit 540,162 358,415
Qwickrate and brokered certificates of deposit 588,066 564,474
FHLB overnight borrowings and federal funds purchased 50,663 627
FHLB term borrowings 570,266 459,925
Other borrowings   76,944     -
Total interest expense 2,160,792 1,589,796
 
Net int. income before prov. for loan losses 17,162,322 9,242,066
 
Provision for loan losses 305,000 255,000
 
Net int. income after prov. for loan losses 16,857,322 8,987,066
 
Noninterest income:
Fees and service charges on dep. accts. 124,733 23,266
Analysis charges 74,658 88,394
Gain (loss) on sale of SBA loans 297,485 706,233
Other income   3,173,645     76,890
Total noninterest income 3,670,521 894,784
 
Noninterest expense:
Salaries and benefits 7,026,707 4,202,979
Occupancy expense 856,510 393,103
Furniture, fixtures and equipment 346,948 186,743
Other expenses   4,110,640     1,735,978
Total noninterest expense 12,340,805 6,518,803
 
Income before tax provision   8,187,038     3,363,046
 
Provision for income taxes   2,482,160     1,493,070
Net income (loss) $ 5,704,878   $ 1,869,976

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