LOS ANGELES--(BUSINESS WIRE)--PBB Bancorp (“PBCA”) (OTCQX: PBCA), the parent company of Premier Business Bank (“Premier”), announced continued record growth for the third quarter of 2017. Premier reported a 21% increase in assets over the previous years’ same quarter. The Consolidated Financial Statement as of September 30, 2017 reflected exceptional results. Total assets of $586.8 million; net loans of $477.9 million; total deposits of $457.8 million; and total equity of $49.7 million.
Total Assets of $586.8 million is a record high and reflects growth of $102.3 million, or 21%, as compared to the same period ending last year. Net Loans of $477.9 million is a record high and grew $94.9 million, or 25%, as compared to the same period as last year. Total deposits as of September 30, 2017 were $457.8 million, another record high, reflecting an increase of $88.0 million, or 24%, as compared to the same period ending last year.
Net income from operations for the 9 month period ended September 30, 2017 was $3,828,400, or $0.77 per share, compared to $3,035,000, or $0.61 per share, in the previous year. The reported net income for the 9 month period ended September 30, 2016 also included a one-time after-tax net gain of $1.8 million, less $325,000 in after-tax non-interest expenses associated with the merger of First Mountain Bank in January 2016. The total reported earnings per share was $4,510,100, or $0.91 per share for the 9 month period ended September 30, 2016. Strong net income for the 3 month period ended September 30, 2017 was $1,188,000, or $0.24 per share, compared to $1,160,000, or $0.23 per share, compared to the same 3 month period last year.
Today, top line revenue or net interest income for the 9 months ended September 30, 2017 reflects $17.9 million, an increase of $3.8 million, or 27%, compared to the same period last year. This was primarily due to the loan portfolio growth of $94.9 million, or 25%, compared to the same period ended last year. Non-interest expenses for the 9 months ended September 30, 2017 increased by $1.2 million as the bank passed the $500 million mark we invested in broadening our infrastructure to support the future growth of the Bank. This increase was a result of network system upgrades, expanding operations to meet growth demands, strategic core deposit branch expansion, and increased marketing efforts in its target markets.
“I am extremely pleased to report continued solid performance in earnings, growth, and expansion for the third quarter of 2017. With such a solid positive performances over the last 25 consecutive quarters, we are able to invest in advancements in productivity, and to enhance the customer experience through new or improved digital banking solutions and services. Increasing total assets and loan production, as well as investing in future growth opportunities has been an important part of our strategic goals this year,” stated President and Chief Executive Officer, John R. Polen.
HIGHLIGHTS for the 3rdd Quarter ended September 30, 2017
- Net Interest Income before provisions increased $754,400, or 16%, for the 3 months ended September 30, 2017 as compared to the same period last year. Additionally, net interest income before provisions increased $3.1 million, or 25%, for the 9 months ended September 30, 2017 as compared to the same period last year.
- Net Income increased $27,800, or 30%, for the 3 months ended September 30, 2017 as compared to the same period last year. Additionally, net income, adjusted for the one-time item related to the merger in 2016, increased $793,400, or 26%, for the 9 months ended September 30, 2017 as compared to the same period last year.
- Total Assets were at another record high of $586.8 million reflecting an increase of $102.3 million, or 21%, as compared to the prior year.
- Net Loans continue to increase to a record high of $477.9 million increasing $94.9 million, or 25%, as compared to the prior year.
- Total Deposits reached a record high of $457.8 million increasing $88.0 million, or 24%, 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. FMB has received approval to open a new full service branch office in Lake Arrowhead, in a move to broaden its footprint in the San Bernardino Mountain community.
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 September 30, | ||||||||
| 2017 | 2016 | |||||||
| Assets | ||||||||
| Cash and due from banks | $ | 83,237,989 | $ | 72,827,801 | ||||
| Federal funds sold | - | - | ||||||
| Investment securities | 10,141,551 | 12,063,578 | ||||||
| Investment in subsidiary | - | - | ||||||
| Loans and leases held for sale | - | 2,955,165 | ||||||
| Loans and leases | 480,000,456 | 384,849,563 | ||||||
| Non accrual loans | 891,574 | 1,079,814 | ||||||
| Deferred loan costs / (fees) | (98,327 | ) | (582,201 | ) | ||||
| Allowance for loan losses | (2,921,107 | ) | (2,333,953 | ) | ||||
| Net loans and leases | 477,872,596 | 383,013,224 | ||||||
| Fixed assets, net | 3,685,814 | 3,061,908 | ||||||
| Accrued interest receivable | 1,186,994 | 990,313 | ||||||
| Bank owned life insurance | 4,040,914 | 3,932,596 | ||||||
| Other assets | 6,595,299 | 5,628,449 | ||||||
| Total assets | $ | 586,761,157 | $ | 484,473,035 | ||||
| Liabilities | ||||||||
| Deposits: | ||||||||
| Demand deposits | $ | 117,840,447 | $ | 105,690,240 | ||||
| Interest bearing demand deposits | 41,233,523 | 53,190,869 | ||||||
| Money market accounts | 121,945,123 | 59,581,877 | ||||||
| Savings accounts | 24,970,013 | 24,943,663 | ||||||
| Certificates of deposit | 151,843,651 | 126,392,178 | ||||||
| Total deposits | 457,832,757 | 369,798,826 | ||||||
| Federal funds purchased | - | - | ||||||
| Overnight borrowings - FHLB | 20,000,000 | 15,000,000 | ||||||
| FHLB term borrowings | 55,000,000 | 51,000,000 | ||||||
| Accrued interest payable | 188,697 | 72,786 | ||||||
| Other liabilities | 4,074,315 | 4,010,035 | ||||||
| Total liabilities | 537,095,769 | 439,881,647 | ||||||
| Stockholders' equity | ||||||||
| Common stock; issued and outstanding | 38,364,550 | 38,364,550 | ||||||
| 4,967,458 shares at 09/30/17 and 4,967,458 shares at 08/31/16 | ||||||||
| Add'l paid-in-capital - stock based comp. | 4,367,106 | 4,228,632 | ||||||
| Retained earnings - preopening expenses | (863,858 | ) | (863,858 | ) | ||||
| Retained earnings | 3,961,011 | (1,744,367 | ) | |||||
| Cash dividend | - | - | ||||||
| Current year net income (loss) | 3,828,380 | 4,510,091 | ||||||
| Unrealized gain (loss) on securities AFS | 8,199 | 96,340 | ||||||
| Total stockholders' equity | 49,665,388 | 44,591,388 | ||||||
| Total liabilities and stockholders' equity | $ | 586,761,157 | $ | 484,473,035 | ||||
| PBB BANCORP | ||||||
| Consolidated Statement of Operations | ||||||
| Prior Year Quarterly Comparison | ||||||
| (unaudited) | ||||||
| For the 3 Months Ended | ||||||
| 9/30/17 | 9/30/16 | |||||
| Interest income: | ||||||
| Loans and leases, including fees | $ | 5,961,355 | $ | 5,000,412 | ||
| Investment securities | 48,571 | 71,225 | ||||
| Federal funds sold | - | - | ||||
| Interest Income-FRB | 138,602 | 46,944 | ||||
| Interest Income-Other | 52,946 | 57,821 | ||||
| Total interest income | 6,201,475 | 5,176,403 | ||||
| Interest expense: | ||||||
| Interest bearing demand deposits | 10,124 | 12,447 | ||||
| Money market accounts | 244,208 | 52,116 | ||||
| Savings accounts | 8,189 | 7,500 | ||||
| Retail certificates of deposit | 152,713 | 145,166 | ||||
| Qwickrate and brokered certificates of deposit | 221,196 | 156,273 | ||||
| FHLB overnight borrowings and federal funds purchased | 2,278 | 17,471 | ||||
| FHLB term borrowings | 171,148 | 148,195 | ||||
| Other borrowings | 25,556 | 25,556 | ||||
| Total interest expense | 835,412 | 564,723 | ||||
| Net int. income before prov. for loan losses | 5,366,063 | 4,611,680 | ||||
| Provision for loan losses | 255,000 | 135,000 | ||||
| Net int. income after prov. for loan losses | 5,111,063 | 4,476,680 | ||||
| Noninterest income: | ||||||
| Fees and service charges on dep. accts. | 46,021 | 29,343 | ||||
| Analysis charges | 22,023 | 20,391 | ||||
| Gain (loss) on sale of SBA loans | 317,911 | - | ||||
| Other income | 239,281 | 335,131 | ||||
| Total noninterest income | 625,236 | 384,866 | ||||
| Noninterest expense: | ||||||
| Salaries and benefits | 2,160,847 | 1,738,528 | ||||
| Occupancy expense | 250,447 | 231,094 | ||||
| Furniture, fixtures and equipment | 136,530 | 85,467 | ||||
| Other expenses | 1,152,631 | 918,296 | ||||
| Total noninterest expense | 3,700,455 | 2,973,385 | ||||
| Income before tax provision | 2,035,845 | 1,888,160 | ||||
| Provision for income taxes | 847,873 | 727,990 | ||||
| Net income (loss) | $ | 1,187,972 | $ | 1,160,170 | ||
| PBB BANCORP | ||||||
| Consolidated Statement of Operations | ||||||
| Prior Year to Date Comparison | ||||||
| (unaudited) | ||||||
| For the 9 Months Ended | ||||||
| 9/30/17 | 9/30/16 | |||||
| Interest income: | ||||||
| Loans and leases, including fees | $ | 17,248,812 | $ | 13,647,696 | ||
| Investment securities | 149,311 | 194,050 | ||||
| Federal funds sold | - | 0 | ||||
| Interest Income-FRB | 333,353 | 121,727 | ||||
| Interest Income-Other | 166,299 | 161,230 | ||||
| Total interest income | 17,897,775 | 14,124,704 | ||||
| Interest expense: | ||||||
| Interest bearing demand deposits | 32,494 | 35,964 | ||||
| Money market accounts | 671,552 | 142,892 | ||||
| Savings accounts | 22,780 | 19,626 | ||||
| Retail certificates of deposit | 386,831 | 405,106 | ||||
| Qwickrate and brokered certificates of deposit | 549,771 | 444,682 | ||||
| FHLB overnight borrowings and federal funds purchased | 3,252 | 50,173 | ||||
| FHLB term borrowings | 505,280 | 411,681 | ||||
| Other borrowings | 75,833 | 51,389 | ||||
| Total interest expense | 2,247,795 | 1,561,512 | ||||
| Net int. income before prov. for loan losses | 15,649,980 | 12,563,192 | ||||
| Provision for loan losses | 500,000 | 210,000 | ||||
| Net int. income after prov. for loan losses | 15,149,980 | 12,353,192 | ||||
| Noninterest income: | ||||||
| Fees and service charges on dep. accts. | 99,425 | 91,643 | ||||
| Analysis charges | 64,772 | 64,093 | ||||
| Gain (loss) on sale of SBA loans | 1,037,322 | 297,485 | ||||
| Other income | 610,082 | 2,735,486 | ||||
| Total noninterest income | 1,811,601 | 3,188,708 | ||||
| Noninterest expense: | ||||||
| Salaries and benefits | 5,952,480 | 5,230,348 | ||||
| Occupancy expense | 763,273 | 599,633 | ||||
| Furniture, fixtures and equipment | 396,441 | 251,526 | ||||
| Other expenses | 3,294,798 | 3,166,601 | ||||
| Total noninterest expense | 10,406,992 | 9,248,108 | ||||
| Income before tax provision | 6,554,590 | 6,293,791 | ||||
| Provision for income taxes | 2,726,210 | 1,783,700 | ||||
| Net income (loss) | $ | 3,828,380 | $ | 4,510,091 | ||
