MISSION VIEJO, Calif.--(BUSINESS WIRE)--Partners Bank of California (“Partners Bank”) (OTC: PBKX) reported unaudited results for the year ending December 31, 2018, with total assets increasing by 30.1% during the year to a new record high of $257.8 million. Over the same period, noninterest-bearing deposits increased by 17.3% to $102.1 million, and total deposits increased by 13.7% to $198.2 million. Total loans increased by $58.4 million, or 37.5% over the previous year’s total. The bank posted an increase in net interest income of $1.9 million, which was a 26.0% increase over the previous year. Net income of $1.43 million for 2018 significantly exceeded the $700,000 recorded a year earlier. This increase was driven primarily by loan growth and the normalization of income tax accruals in 2018.
“With growth of 30%, 2018 was truly a banner year for Partners Bank of California,” said Partners President/CEO Chris Walsh. “We are very excited about last year’s strong performance, knowing that those results will also be providing momentum for us in 2019. We continue to focus on driving our strategic growth plan and bringing increased value to our clients and shareholders. Our balance sheet growth and expanded capabilities allows us to do more for our clients. That is what Partners Bank is all about, and I’m honored to be leading this team of outstanding banking professionals.”
| Partners Bank of California | ||||||||||||||||
| Statements of Financial Condition | ||||||||||||||||
| (unaudited, dollars in thousands) | ||||||||||||||||
| December 31, | December 31, | Variance | ||||||||||||||
| Assets: | 2018 | 2017 | $ | % | ||||||||||||
| Cash and cash equivalents | $ | 34,554 | $ | 29,705 | $ | 4,849 | 16.3 | % | ||||||||
| Investment securities available for sale | 9,016 | 12,099 | (3,083 | ) | -25.5 | % | ||||||||||
| Loans held for investment | 214,252 | 155,805 | 58,447 | 37.5 | % | |||||||||||
| Allowance for loan losses | (3,214 | ) | (2,756 | ) | (458 | ) | 16.6 | % | ||||||||
| Loans, net | 211,038 | 153,049 | 57,989 | 37.9 | % | |||||||||||
| Other assets | 3,270 | 3,289 | (19 | ) | -0.6 | % | ||||||||||
| Total assets | $ | 257,878 | $ | 198,142 | $ | 59,736 | 30.1 | % | ||||||||
| Liabilities: | ||||||||||||||||
| Deposits | ||||||||||||||||
| Noninterest-bearing deposits | $ | 102,185 | $ | 87,127 | $ | 15,058 | 17.3 | % | ||||||||
| Savings, NOW and money market accounts | 73,448 | 54,814 | 18,634 | 34.0 | % | |||||||||||
| Certificates of deposit | 22,593 | 32,351 | (9,758 | ) | -30.2 | % | ||||||||||
| Total deposits | 198,226 | 174,292 | 23,934 | 13.7 | % | |||||||||||
| FHLB advances and other borrowings | 31,000 | - | 31,000 | *nm | ||||||||||||
| Other liabilities | 938 | 678 | 260 | 38.3 | % | |||||||||||
| Total liabilities | 230,164 | 174,970 | 55,194 | 31.5 | % | |||||||||||
| Stockholders' Equity: | ||||||||||||||||
| Common stock | 29,513 | 26,501 | 3,012 | 11.4 | % | |||||||||||
| Additional paid-in capital | 1,661 | 1,510 | 151 | 10.0 | % | |||||||||||
| Accumulated deficit | (3,390 | ) | (4,816 | ) | 1,426 | -29.6 | % | |||||||||
| 27,784 | 23,195 | 4,589 | 19.8 | % | ||||||||||||
| Accumulated other comprehensive income (loss) | (70 | ) | (23 | ) | (47 | ) | *nm | |||||||||
| Total stockholders' equity | 27,714 | 23,172 | 4,542 | 19.6 | % | |||||||||||
| Total liabilities and stockholders' equity | $ | 257,878 | $ | 198,142 | $ | 59,736 | 30.1 | % | ||||||||
| Partners Bank of California | ||||||||||||||||
| Statements of Income | ||||||||||||||||
| (unaudited, dollars in thousands) | ||||||||||||||||
| For the Twelve Months Ended | ||||||||||||||||
| December 31, | December 31, | Variance | ||||||||||||||
| 2018 | 2017 | $ | % | |||||||||||||
| Interest income | $ | 10,264 | $ | 8,185 | $ | 2,079 | 25.4 | % | ||||||||
| Interest expense | 989 | 825 | 164 | 19.9 | % | |||||||||||
| Net interest income before provision for loan losses | 9,275 | 7,360 | 1,915 | 26.0 | % | |||||||||||
| Provision for loan losses | 434 | 45 | 389 | 864.4 | % | |||||||||||
| Net interest income after provision for loan losses | 8,841 | 7,315 | 1,526 | 20.9 | % | |||||||||||
| Noninterest income | 274 | 385 | (111 | ) | -28.8 | % | ||||||||||
| Noninterest expense | 7,034 | 5,274 | 1,760 | 33.4 | % | |||||||||||
| Income before income tax provision | 2,081 | 2,426 | (345 | ) | -14.2 | % | ||||||||||
| Income tax provision | 655 | 1,726 | (1,071 | ) | -62.1 | % | ||||||||||
| Net income | $ | 1,426 | $ | 700 | $ | 726 | 103.7 | % | ||||||||
| *nm - not meaningful | ||||||||||||||||
In March 2019, Partners Bank will open its first full-service branch office outside of Orange County. The Beverly Hills office will provide full-service business and private banking as well as provide the bank’s full array of commercial lending solutions to clients in the greater Los Angeles area. This extension of the Partners Bank footprint and presence in the Los Angeles region will further enhance the bank’s growth and service capabilities—making it easier and more convenient for our Los Angeles clients to access our unique class of relationship banking services.
“We’re thrilled about what this expansion means to our bank and most importantly to our clients in Los Angeles,” said Executive Chairman, Mike Ahmar. “We believe in the safe and sound growth of our financial institution, while always providing the best possible service and value to our clients and shareholders. Our enhanced presence in Los Angeles will allow us to achieve those results efficiently and effectively.”
Founded in 2007, Partners Bank of California is positioned with stability, capital, strength and experience to help Southern California individuals and businesses reach their financial goals with a wide array of private and business banking solutions and expertise. Partners Bank of California…passionate about your success!
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