The Private Bank Of California Reports December 31, 2011 Results

The Private Bank of California (the “Bank”) (OTCBB: PBCA) announced its unaudited financial results for the year and quarter ended December 31, 2011.

2011 Financial Highlights:

• Net income totaled $1,962,000 for the year ended December 31, 2011, the highest in the Bank’s history and up from $105,000 in 2010. Net income for the quarter was $405,000, improving from a net loss of $236,000 for the same quarter in 2010.
• The Bank’s operating leverage improved significantly in the year ended December 31, 2011 as net interest income increased $2,274,000 more than the increase in total noninterest expense compared to 2010. As a result, the Bank’s efficiency ratio improved from 98% for the year ended December 31, 2010 to 83% for the year ended December 31, 2011.
• Total assets grew an impressive $161 million or 37% year-over-year and $30 million or 5% from the linked quarter to a record $597 million at December 31, 2011.
• Total deposits rose $114 million or 30% from December 31, 2010 and $13 million or 3% from the linked quarter to $497 million at December 31, 2011. Demand deposits totaled $230 million and accounted for 46% of total deposits at yearend 2011.
• Total earning loans were $299 million at December 31, 2011, an increase of $85 million or 40% from yearend 2010 and $27 million or 10% from the linked quarter.
• Total nonaccrual loans were $2.8 million at December 31, 2011, representing less than 1% of total loans outstanding. The Bank had no earning loans past due 90 days or more at December 31, 2011.
• The allowance for credit losses was $5.3 million or 1.76% of total loans outstanding at December 31, 2011. The provision for credit losses for the year ended December 31, 2011 totaled $1.6 million and is primarily attributable to loan growth; the provision for credit losses for the year ended December 31, 2010 was $1.2 million and primarily related to problem credits. Net loan charge-offs only totaled $100,000 for the year ended December 31, 2011, comparing favorably with net loan charge-offs of $1.2 million for the year ended December 31, 2010.
• Capital ratios remain strong, continuing to significantly exceed all regulatory guidelines for “well-capitalized” financial institutions:

														Actual12/31/11									“Well-Capitalized”Minimum
							Tier 1 leverage ratio							8.01	%								5.00	%
							Tier 1 risk-based capital ratio							14.54	%								6.00	%
							Total risk-based capital ratio							15.80	%								10.00	%

“The Private Bank of California had a milestone year in 2011,” stated Chief Executive Officer David R. Misch. “Our balance sheet grew impressively during the year as total assets approached $600 million, total earning loans approached $300 million and total deposits approached $500 million at December 31, 2011. Credit quality and our capital ratios remained strong. Most importantly, we achieved a record net income of nearly $2 million and significantly improved our operating leverage.”