The Private Bank Of California Reports First Quarter 2012 Results

The Private Bank of California (the “Bank”) (OTCBB:PBCA.OB) today announced its unaudited financial results for the quarter ended March 31, 2012.

First Quarter 2012 Highlights:
  • Net income improved to $473,000 in 2012, up 42% from $333,000 in the same quarter of the prior year despite added income tax expense. The Bank’s income before income taxes doubled:
                2012     2011
Income before income taxes $ 663,000 $ 334,000
Provision for income taxes   190,000   1,000
Net income $ 473,000 $ 333,000
  • Net interest income totaled $4.3 million in 2012, reflecting growth of the Bank’s balance sheet and an $888,000 or 26% increase over the same quarter in 2011.
  • Total assets grew $44 million or 7% from the linked quarter to $641 million at March 31, 2012, a new record for the Bank.
  • Total deposits rose $73 million or 15% from the linked quarter to $569 million at March 31, 2012. Demand deposits totaled $270 million and accounted for 47% of total deposits at March 31, 2012 as compared to $230 million or 46% of total deposits at the linked quarter.
  • Total earning loans were $317 million at March 31, 2012, an increase of $18 million or 6% from the linked quarter.
  • Non-accrual loans totaled $2.7 million at March 31, 2012 and continue to account for less than 1% of total loans outstanding. The coverage ratio of the allowance for credit losses to non-accrual loans was 211% at March 31, 2012. The Bank had no earning loans past due 90 days or more at March 31, 2012.
  • The allowance for credit losses was $5.8 million or 1.81% of total loans at March 31, 2012, compared to $5.3 million or 1.76% at the linked quarter. The provision for credit losses for the quarter ended March 31, 2012 totaled $438,000 and is primarily attributable to loan growth; there was no provision for credit losses for the same period in the prior year. The Bank experienced net loan recoveries of $28,000 in the quarter ended March 31, 2012 and $18,000 in the same quarter of the prior year.
  • The Bank’s capital ratios continued to significantly exceed all regulatory guidelines for “well-capitalized” financial institutions:
             

Actual 03/31/12
 

“Well-capitalized”minimum
Tier 1 leverage ratio 7.59 % 5.00 %
Tier 1 risk-based capital ratio 13.96 % 6.00 %
Total risk-based capital ratio 15.22 % 10.00 %

“We are pleased with our steady earnings and balance sheet growth in this first quarter of 2012,” said Chief Executive Officer David R. Misch. “Our Century City, Hollywood and Los Angeles Offices have all contributed to our success.”

“The addition of our recently announced Orange County team and Branch Office will add to our momentum,” added President Richard A. Smith. “2012 is shaping up to be another year of new achievements and milestones for The Private Bank of California.”

For more information on the Bank’s new Orange County team, click here.

About The Private Bank of California

The Private Bank of California is a full-service depository financial institution that specializes in Private, Entertainment and Business Banking and caters to a select group of individuals and private companies. The Bank is a member of the Federal Deposit Insurance Corporation, chartered in California and administratively headquartered at 10100 Santa Monica Boulevard, Suite 2500, Los Angeles 90067. The Bank has Branch Offices in Century City (10100 Santa Monica Boulevard, Suite 2430, Los Angeles 90067) and Hollywood (7083 Hollywood Boulevard, Suite 650, Los Angeles 90028), as well as a Loan Production Office in Downtown Los Angeles (601 South Figueroa Street, Suite 1850, Los Angeles 90017). The opening of the Bank’s Orange County Office (1920 Main Street, Suite 1140, Irvine, California 92614) is planned for July 2012. Additional information is available at www.tpboc.com or by calling 310.286.0710.

Forward-Looking Statements: Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to The Private Bank of California’s current expectations regarding deposit and loan growth and operating results. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: (1) the impact of changes in interest rates, (2) a decline in economic conditions, (3) an increase in competition among financial service providers impacting on the Bank’s operating results and ability to attract deposit and loan customers and the quality of the Bank’s earning assets and (4) an increase in government regulation. The Bank does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.
THE PRIVATE BANK OF CALIFORNIA
FINANCIAL HIGHLIGHTS (Unaudited)
          March 31, December 31,
2012   2011   2011  
 
AT END OF THE PERIOD:
 
Total assets $ 640,924,000 $ 462,296,000 $ 596,700,000
 
Securities available-for-sale, at fair value $ 288,207,000 $ 205,826,000 $ 267,370,000
 
Total loans $ 319,703,000 $ 234,936,000 $ 301,809,000
Less allowance for credit losses (5,788,000 ) (3,890,000 ) (5,322,000 )
Net loans $ 313,915,000   $ 231,046,000   $ 296,487,000  
 
Transactional deposit accounts $ 288,892,000 $ 181,665,000 $ 249,860,000
Money market deposit accounts 190,690,000 147,240,000 170,798,000
Other nontransactional deposit accounts 89,719,000   56,105,000   76,098,000  
Total deposits $ 569,301,000   $ 385,010,000   $ 496,756,000  
 
Total shareholders' equity $ 49,630,000 $ 40,352,000 $ 49,182,000
 
Allowance for credit losses to total loans ratio 1.81 % 1.66 % 1.76 %
 
Tier 1 leverage ratio 7.59 % 8.92 % 8.01 %
Tier 1 risk-based capital ratio 13.96 % 15.93 % 14.54 %
Total risk-based capital ratio 15.22 % 17.19 % 15.80 %
 
FOR THE QUARTER ENDED:
 
Net interest income $ 4,298,000 $ 3,410,000 $ 4,057,000
Provision for credit losses 438,000 --- 762,000
Noninterest income 589,000 88,000 660,000
Noninterest expense 3,786,000   3,164,000   3,550,000  
Income (loss) before income taxes 663,000 334,000 405,000
Provision for income taxes 190,000   1,000   ---  
Net income (loss) $ 473,000   $ 333,000   $ 405,000  
 
Net income (loss) $ 473,000 $ 333,000 $ 405,000
Less preferred stock dividends and adjustments (25,000 ) (88,000 ) (25,000 )
Net income (loss) available to common shareholders $ 448,000   $ 245,000   $ 380,000  
 
Net income (loss) per common share outstanding-basic $ 0.12 $ 0.06 $ 0.10
Average common shares outstanding 3,826,498 3,827,707 3,826,506
 
YEAR-TO-DATE:
 
Net interest income $ 4,298,000 $ 3,410,000
Provision for credit losses 438,000 ---
Noninterest income 589,000 88,000
Noninterest expense 3,786,000   3,164,000  
Income (loss) before income taxes 663,000 334,000
Provision for income taxes 190,000   1,000  
Net income (loss) $ 473,000   $ 333,000  
 
Net income (loss) $ 473,000 $ 333,000
Less preferred stock dividends and adjustments (25,000 ) (88,000 )
Net income (loss) available to common shareholders $ 448,000   $ 245,000  
 
Net income (loss) per common share outstanding-basic $ 0.12 $ 0.06
Average common shares outstanding 3,826,498 3,827,707
 

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