PBB Bancorp Reports Record Earnings and Growth for 1st Quarter 2016

LOS ANGELES--()--PBB Bancorp (“PBCA”) (OTCQX: PBCA) today announced the results of operations for the first quarter 2016 which included the merger with First Mountain Bank ($148 million in Total Assets) that was successfully closed on January 29, 2016. The combined Balance Sheet as of the quarter end at March 31, 2016 reflected Total Assets increasing to $438.5 million; Net Loans increasing to $359.6 million; Total Deposits of $331.7 million; and Total Equity of $42.3 million.

Net income for the quarter ended March 31, 2016 was $2.4 million, or $0.47 per share; a significant increase compared to $384,000 or $0.08 per share for the same period last year. Net income for the quarter included an after-tax Bargain Purchase Gain of $1.8 million in non-interest income less $325,000 in after-tax non-interest expenses associated with the merger.

Premier’s momentum continues with phenomenal growth and expansion. In addition to the $101.1 million loans acquired in the merger, organic growth of our loan portfolio reflected $70.9 million, or 35% as compared to last year. The merger contributed an additional $66.9 million of non-interest bearing demand accounts to increase our ratio to total deposits from 21% last year to 29% at March 31, 2016. “Response after the close of the merger with First Mountain Bank has been extremely positive. We continue to work diligently, focusing on our long-term goals of building a vibrant bank and generating strong earnings for our shareholders,” stated John R. Polen, President and Chief Executive Officer.

HIGHLIGHTS for the 1st Quarter 2016

  • Net Income increased $1,973,000, or 514% to $2,357,000 for the three month period ended March 31, 2016 compared to $384,000 for the same period last year. Excluding the Bargain Purchase Gain and merger related expenses, net income for the quarter ended March 31, 2016 was $907,000, an increase of $523,000, or 136%.
  • Net Interest Income increased $1.6 million, or 81% for the three months ended March 31, 2016 as compared to the same period last year.
  • Total Assets increased $199.1 million, or 83% to $438.5 million from $239.4 million as compared to March 31, 2015.
  • Net Loans increased $159.3 million, or 80% as compared to the same period last year. Adjusted for the merger, net loans increased approximately $70.9 million, or 35% compared to March 31, 2015.
  • Total Deposits increased $157.3 million, or 90% when compared to the previous year.


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 two additional locations in Los Angeles County; a community-based full service retail branch in Palos Verdes and a SBA loan center in Torrance. Premier Bank of Palos Verdes will open a full service branch in Palos Verdes Estates in early June 2016. First Mountain Bank 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


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 the date hereof. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

Consolidated Statement of Condition
Prior Year Comparison
For the Period Ended March 31,
2016 2015
Cash and due from banks $ 49,486,987 $ 32,977,904
Federal funds sold - -
Investment securities 15,102,930 -
Investment in subsidiary - -
Loans and leases held for sale 712,351 1,267,198
Loans and leases 360,414,845 202,130,684
Non accrual loans 1,079,814 -
Deferred loan costs / (fees) 209,276 133,627
Allowance for loan losses   (2,121,130 )   (1,965,000 )
Net loans and leases 359,582,805 200,299,311
Fixed assets, net 2,614,895 215,051
Accrued interest receivable 849,839 498,752
Bank owned life insurance 3,860,200 -
Other assets   6,239,627     4,129,989  
Total assets $ 438,467,519   $ 239,388,205  
Demand deposits $ 95,492,815 $ 36,067,123
Interest bearing demand deposits 45,202,832 20,467,505
Money market accounts 50,701,514 38,639,411
Savings accounts 24,038,604 432,165
Certificates of deposit   116,311,764     78,790,068  
Total deposits 331,747,529 174,396,272
Federal funds purchased - -
Overnight borrowings - FHLB 15,000,000 5,000,000
FHLB term borrowings 45,000,000 35,000,000
Accrued interest payable 66,242 52,368
Other liabilities   4,308,273     735,014  
Total liabilities   396,122,044     215,183,653  
Stockholders' equity

Common stock; issued and outstanding
4,967,476 shares at 03/31/16 and 3,396,550 shares at 03/31/15

38,364,550 26,985,142
Add'l paid-in-capital - stock based comp. 4,174,491 1,313,693
Retained earnings - preopening expenses (863,858 ) (863,858 )
Retained earnings (1,744,367 ) (3,614,343 )
Cash dividend - -
Current year net income (loss) 2,356,918 383,918
Unrealized gain (loss) on securities AFS   57,741     -  
Total stockholders' equity   42,345,475     24,204,552  
Total liabilities and stockholders' equity $ 438,467,519   $ 239,388,205  
Consolidated Statement of Operations
Prior Year to Date Comparison
For the 3 Months Ended
3/31/16 3/31/15
Interest income:
Loans and leases, including fees $ 4,011,412 $ 2,312,032
Investment securities 50,506 -
Federal funds sold 0 -
Interest Income-FRB 46,775 15,275
Interest Income-Other   42,793   24,727
Total interest income 4,151,486 2,352,034
Interest expense:
Interest bearing demand deposits 11,181 7,748
Money market accounts 45,491 46,260
Savings accounts 4,985 199
Certificates of deposit 285,876 205,546
FHLB overnight borrowings and federal funds purchased 16,389 176
FHLB term borrowings 131,076 79,679
Other borrowings   556   -
Total interest expense 495,554 339,608
Net int. income before prov. for loan losses 3,655,933 2,012,427
Provision for loan losses - 100,000
Net int. income after prov. for loan losses 3,655,933 1,912,427
Noninterest income:
Fees and service charges on dep. accts. 28,832 5,506
Analysis charges 21,159 26,737
Gain (loss) on sale of SBA loans 227,490 197,636
Other income   1,926,989   3,154
Total noninterest income 2,204,470 233,033
Noninterest expense:
Salaries and benefits 1,650,900 1,022,201
Occupancy expense 158,139 90,315
Furniture, fixtures and equipment 73,335 43,503
Other expenses   1,210,520   329,846
Total noninterest expense 3,092,894 1,485,865
Income before tax provision   2,767,508   659,595
Provision for income taxes   410,590   275,677
Net income (loss) $ 2,356,918 $ 383,918


PBB Bancorp
John R. Polen
President and Chief Executive Officer


PBB Bancorp
John R. Polen
President and Chief Executive Officer