PBB Bancorp Reports Another Record Year with Total Assets of $626 Million

LOS ANGELES--()--PBB Bancorp (“PBCA”) (OTCQX: PBCA), the parent company of Premier Business Bank (“Premier”), announced another record year in the bank’s 11 year history. The Consolidated Balance Sheet as of December 31, 2017 reflected exceptional results: total assets of $626.4 million; net loans of $523.3 million; total deposits of $479.1 million; and total equity of $50.6 million.

Net income for the 3 month period ended December 31, 2017 was $940,500, or $0.19 per share and net income for the 12 month period ended December 31, 2017 was $4.8 million, or $0.96 per share. Net income for the current quarter and the 12 month period ended December 31, 2017 was impacted by $184,600 for the remeasurement of the deferred tax asset as a result of the reduced corporate tax rate that was signed into law on December 22, 2017. Normalized quarterly earnings would have been $1.1 million or $0.23 per share and annual earnings would have been $5.0 million or $1.00 per share. Net income for the year ended December 31, 2017 was $4.8 million compared to $5.7 million recorded in previous year. In 2016, net income included a $2.1 million one-time non-taxable bargain purchase gain from the acquisition of First Mountain Bank in January 2016. Adjusted net income for the year ended December 31, 2017 reflected an increase of $1.4 million or 39% increase compared to the adjusted net income for 2016.

With a record 25+ consecutive quarters of positive growth, Premier is very pleased to announce the 2017 year-end record results. Our team of experienced bankers and focused strategic efforts created an environment to meet and exceed strategic goals set for 2017. “I am pleased with such a productive and successful year. We reached our goals, invested in our communities, and continued to build upon our successes to offer the best community banking,” stated President and Chief Executive Officer, John R. Polen.

HIGHLIGHTS for the Year-End 2017

  • PBB Bancorp to merge into First Foundation Inc. was announced in a joint press release on December 19, 2017. The merger is expected to close in the second quarter of 2018 subject to customary closing conditions (see Business Wire press release dated 12-19-17).
  • Net Interest Income before provisions increased $4.1 million, or 23.7% for the 12 months ended December 2017 as compared to the same period last year.
  • Total Assets were an all-time high of $626.4 million reflecting an increase of $109.4 million, or 21.2% as compared to the prior year.
  • Net Loans were an all-time high of $523.3 million increasing $110.7 million, or 26.8% as compared to the prior year.
  • Total Deposits were an all-time high of $479.1 million increasing $63.6 million, or 15.3% 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,
  2017       2016  
Assets
 
Cash and due from banks $ 77,676,214 $ 74,214,350
Federal funds sold - -
Investment securities 8,685,176 10,693,892
Investment in subsidiary - -
 
Loans and leases held for sale - 5,010,650
 
Loans and leases 526,488,597 414,652,371
Non accrual loans - 1,079,814
Deferred loan costs / (fees) (130,999 ) (622,026 )
Allowance for loan losses   (3,011,130 )     (2,429,319 )
Net loans and leases 523,346,467 412,680,839
 
Fixed assets, net 3,881,301 3,707,925
Accrued interest receivable 1,348,357 1,025,570
Bank owned life insurance 4,067,448 3,959,939
Other assets   7,358,970       5,628,149  
Total assets $ 626,363,934     $ 516,921,314  
 
Liabilities
 
Deposits:
Demand deposits $ 123,881,683 $ 120,167,820
Interest bearing demand deposits 35,718,386 47,016,436
Money market accounts 118,088,807 103,460,885
Savings accounts 24,882,254 24,766,025
Certificates of deposit   176,568,323       120,104,451  
Total deposits 479,139,453 415,515,618
 
Federal funds purchased - -
Overnight borrowings - FHLB 7,000,000 -
FHLB term borrowings 86,000,000 52,000,000
Accrued interest payable 285,345 59,958
Other liabilities   3,340,236       3,651,961  
Total liabilities   575,765,034       471,227,537  
 
Stockholders' equity
 
Common stock; issued and outstanding 38,364,550 38,364,550

4,967,458 shares at 12/31/17 and 4,967,458 shares at 12/31/16

Add'l paid-in-capital - stock based comp. 4,402,464 4,264,002
Retained earnings - preopening expenses (863,858 ) (863,858 )
Retained earnings 3,961,011 (1,744,367 )
Cash dividend - -
Current year net income (loss) 4,768,875 5,704,878
Unrealized gain (loss) on securities AFS   (34,143 )     (31,428 )
Total stockholders' equity   50,598,900       45,693,777  
Total liabilities and stockholders' equity $ 626,363,934     $ 516,921,314  
 
 
PBB BANCORP    
Consolidated Statement of Operations
Prior Year Quarterly Comparison
(unaudited)
     
For the 3 Months Ended
  12/31/17     12/31/16
Interest income:
Loans and leases, including fees $ 6,358,715 $ 4,946,685
Investment securities 47,214 49,927
Federal funds sold - -
Interest Income-FRB 125,028 57,025
Interest Income-Other   55,723     144,773
Total interest income 6,586,680 5,198,410
 
Interest expense:
Interest bearing demand deposits 10,893 15,439
Money market accounts 234,990 113,403
Savings accounts 9,366 7,367
Retail certificates of deposit 231,993 135,056
Qwickrate and brokered certificates of deposit 266,534 143,384
FHLB overnight borrowings and federal funds purchased 3,725 490
FHLB term borrowings 223,374 158,585
Other borrowings   25,556     25,556
Total interest expense 1,006,431 599,280
 
Net int. income before prov. for loan losses 5,580,249 4,599,130
 
Provision for loan losses 90,000 95,000
 
Net int. income after prov. for loan losses 5,490,249 4,504,130
 
Noninterest income:
Fees and service charges on dep. accts. 85,324 33,090
Analysis charges 27,808 10,565
Gain (loss) on sale of SBA loans 30,480 -
Other income   223,135     438,158
Total noninterest income 366,746 481,813
 
Noninterest expense:
Salaries and benefits 2,160,256 1,796,358
Occupancy expense 259,510 256,877
Furniture, fixtures and equipment 149,273 95,422
Other expenses   1,343,414     944,039
Total noninterest expense 3,912,453 3,092,696
 
Income before tax provision   1,944,543     1,893,247
 
Provision for income taxes   1,004,047     698,460
Net income (loss) $ 940,496   $ 1,194,787
 
 
PBB BANCORP    
Consolidated Statement of Operations
Prior Year to Date Comparison
(unaudited)
     
For the 12 Months Ended
  12/31/17     12/31/16
Interest income:
Loans and leases, including fees $ 23,607,527 $ 18,594,380
Investment securities 196,525 243,978
Federal funds sold - 0
Interest Income-FRB 458,380 178,752
Interest Income-Other   222,023     306,004
Total interest income 24,484,455 19,323,114
 
Interest expense:
Interest bearing demand deposits 43,388 51,403
Money market accounts 906,543 256,295
Savings accounts 32,146 26,992
Retail certificates of deposit 618,824 540,162
Qwickrate and brokered certificates of deposit 816,304 588,066
FHLB overnight borrowings and federal funds purchased 6,977 50,663
FHLB term borrowings 728,655 570,266
Other borrowings   101,389     76,944
Total interest expense 3,254,226 2,160,792
 
Net int. income before prov. for loan losses 21,230,229 17,162,322
 
Provision for loan losses 590,000 305,000
 
Net int. income after prov. for loan losses 20,640,229 16,857,322
 
Noninterest income:
Fees and service charges on dep. accts. 184,749 124,733
Analysis charges 92,580 74,658
Gain (loss) on sale of SBA loans 1,067,802 297,485
Other income   833,217     3,173,645
Total noninterest income 2,178,347 3,670,521
 
Noninterest expense:
Salaries and benefits 8,054,884 7,026,707
Occupancy expense 1,022,782 856,510
Furniture, fixtures and equipment 545,714 346,948
Other expenses   4,696,064     4,110,640
Total noninterest expense 14,319,444 12,340,805
 
Income before tax provision   8,499,132     8,187,038
 
Provision for income taxes   3,730,257     2,482,160
Net income (loss) $ 4,768,875   $ 5,704,878

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