The Private Bank of California (the “Bank”) (OTCBB: PBCA) today announced its unaudited financial results for the quarter ended June 30, 2012. Second Quarter 2012 Highlights:
“We are very excited about our new Orange County office, which opened in June 2012 and is being led by David Cobb and his team. The Orange County market is a great fit for our blend of business and private banking and it demonstrates our commitment to long-term growth,” said Misch. “We strengthened our operations with the hiring of Suzanne Dondanville as our Chief Operations Officer and by investing in our risk management infrastructure. Reflecting our commitment to being ahead of the curve on the basics of good banking practices, these actions will help us to continue to grow prudently in an increasingly complex risk and regulatory environment.” Added President Richard A. Smith, “Our next growth spurt is already underway. The Bank continues to have a very strong pipeline and we are well-positioned for a strong third quarter.”
- Net income for the quarter improved to $585,000, up 24% from $473,000 in the linked quarter and up 72% from $341,000 in the same quarter in the prior year. Year-to-date June 30, 2012 net income is $1.1 million, up an impressive 57% from $674,000 in 2011; year-to-date income before income taxes more than doubled:
|Income before income taxes||$||1,503,000||$||675,000|
|Provision for income taxes||445,000||1,000|
- Net interest income totaled $4.4 million for the quarter ended June 30, 2012, slightly higher than the linked quarter’s $4.3 million. Year-to-date 2012 net interest income totaled $8.7 million, a 21% increase over the prior year.
- Total assets were $639 million, stable from the linked quarter. “We are very focused on improving our profitability and enhancing our risk management infrastructure,” stated Chief Executive Officer David R. Misch.
- Total deposits declined slightly over the linked quarter, to $553 million at June 30, 2012, as the Bank favorably restructured certain brokered certificates of deposit issued for interest rate risk management purposes to take advantage of record-low, long-term interest rates.
- Demand deposits totaled $247 million and accounted for 45% of total deposits at June 30, 2012 as compared to $270 million or 46% of total deposits at the linked quarter. The decline reflects the planned withdrawal of a short-term demand deposit at the beginning of the second quarter.
- Total earning loans were $315 million at June 30, 2012, a slight decrease from the linked quarter.
- Non-accrual loans totaled $2.7 million at June 30, 2012 and continue to account for less than 1% of total loans outstanding. At June 30, 2012, the coverage ratio of the allowance for credit losses to non-accrual loans was 215% and the Bank had no earning loans past due 90 days or more.
- The allowance for credit losses was $5.9 million or 1.84% of total loans at June 30, 2012, compared to $5.8 million or 1.81% in the linked quarter. The provision for credit losses, primarily attributable to loan growth, totaled $39,000 for the second quarter and $477,000 for year-to-date 2012. The Bank has incurred no gross loan charge-offs in 2012.
- The Bank’s capital ratios continued to significantly exceed all regulatory guidelines for “well-capitalized” financial institutions:
|Tier 1 leverage ratio||7.34||%||5.00||%|
|Tier 1 risk-based capital ratio||13.58||%||6.00||%|
|Total risk-based capital ratio||14.84||%||10.00||%|
For more information on the Bank’s new Orange County office, 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), Hollywood (7083 Hollywood Boulevard, Suite 650, Los Angeles 90028) and Orange County (1920 Main Street, Suite 1140, Irvine, California 92614), as well as a Loan Production Office in Downtown Los Angeles (601 South Figueroa Street, Suite 1850, Los Angeles 90017). 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)|
|June 30,||March 31,|
|AT END OF THE PERIOD:|
|Securities available-for-sale, at fair value||$||284,298,000||$||194,980,000||$||288,207,000|
|Less allowance for credit losses||(5,863,000||)||(4,539,000||)||(5,788,000||)|
|Transactional deposit accounts||$||268,642,000||$||184,132,000||$||288,892,000|
|Money market deposit accounts||207,005,000||150,197,000||190,690,000|
|Other nontransactional deposit accounts||77,045,000||72,586,000||89,719,000|
|Total shareholders' equity||$||50,626,000||$||43,114,000||$||49,630,000|
|Allowance for credit losses to total loans ratio||1.84||%||1.68||%||1.81||%|
|Tier 1 leverage ratio||7.34||%||8.52||%||7.59||%|
|Tier 1 risk-based capital ratio||13.58||%||14.27||%||13.96||%|
|Total risk-based capital ratio||14.84||%||15.53||%||15.22||%|
|FOR THE QUARTER ENDED:|
|Net interest income||$||4,440,000||$||3,825,000||$||4,298,000|
|Provision for credit losses||39,000||627,000||438,000|
|Income (loss) before income taxes||840,000||341,000||663,000|
|Provision for income taxes||255,000||---||190,000|
|Less preferred stock dividends and adjustments||(25,000||)||(87,000||)||(25,000||)|
|Net income available to common shareholders||$||560,000||$||254,000||$||448,000|
|Net income per common share outstanding-basic||$||0.15||$||0.07||$||0.12|
|Average common shares outstanding||3,833,853||3,825,855||3,826,498|
|Net income per common share outstanding-diluted||0.12|
|Average common shares outstanding-diluted||4,588,003|
|Net interest income||$||8,738,000||$||7,235,000|
|Provision for credit losses||477,000||627,000|
|Income before income taxes||1,503,000||675,000|
|Provision for income taxes||445,000||1,000|
|Less preferred stock dividends and adjustments||(50,000||)||(175,000||)|
|Net income available to common shareholders||$||1,008,000||$||499,000|
|Net income per common share outstanding-basic||$||0.26||$||0.13|
|Average common shares outstanding-basic||3,830,176||3,825,855|
|Net income per common share outstanding-diluted||$||0.22|
|Average common shares outstanding-diluted||4,584,683|