LOS ANGELES--(BUSINESS WIRE)--PBB Bancorp (“PBCA”) (OTCQX: PBCA) today announced the results of operations for the first quarter 2016 which included the merger with First Mountain Bank ($148 million in Total Assets) that was successfully closed on January 29, 2016. The combined Balance Sheet as of the quarter end at March 31, 2016 reflected Total Assets increasing to $438.5 million; Net Loans increasing to $359.6 million; Total Deposits of $331.7 million; and Total Equity of $42.3 million.
Net income for the quarter ended March 31, 2016 was $2.4 million, or $0.47 per share; a significant increase compared to $384,000 or $0.08 per share for the same period last year. Net income for the quarter included an after-tax Bargain Purchase Gain of $1.8 million in non-interest income less $325,000 in after-tax non-interest expenses associated with the merger.
Premier’s momentum continues with phenomenal growth and expansion. In addition to the $101.1 million loans acquired in the merger, organic growth of our loan portfolio reflected $70.9 million, or 35% as compared to last year. The merger contributed an additional $66.9 million of non-interest bearing demand accounts to increase our ratio to total deposits from 21% last year to 29% at March 31, 2016. “Response after the close of the merger with First Mountain Bank has been extremely positive. We continue to work diligently, focusing on our long-term goals of building a vibrant bank and generating strong earnings for our shareholders,” stated John R. Polen, President and Chief Executive Officer.
HIGHLIGHTS for the 1st Quarter 2016
- Net Income increased $1,973,000, or 514% to $2,357,000 for the three month period ended March 31, 2016 compared to $384,000 for the same period last year. Excluding the Bargain Purchase Gain and merger related expenses, net income for the quarter ended March 31, 2016 was $907,000, an increase of $523,000, or 136%.
- Net Interest Income increased $1.6 million, or 81% for the three months ended March 31, 2016 as compared to the same period last year.
- Total Assets increased $199.1 million, or 83% to $438.5 million from $239.4 million as compared to March 31, 2015.
- Net Loans increased $159.3 million, or 80% as compared to the same period last year. Adjusted for the merger, net loans increased approximately $70.9 million, or 35% compared to March 31, 2015.
- Total Deposits increased $157.3 million, or 90% when compared to the previous 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 two additional locations in Los Angeles County; a community-based full service retail branch in Palos Verdes and a SBA loan center in Torrance. Premier Bank of Palos Verdes will open a full service branch in Palos Verdes Estates in early June 2016. First Mountain Bank has three full service retail branches located in San Bernardino County, California. Branches are located in Big Bear Lake, Running Springs and Lucerne Valley.
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 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 March 31, | |||||||||||
| 2016 | 2015 | ||||||||||
| Assets | |||||||||||
| Cash and due from banks | $ | 49,486,987 | $ | 32,977,904 | |||||||
| Federal funds sold | - | - | |||||||||
| Investment securities | 15,102,930 | - | |||||||||
| Investment in subsidiary | - | - | |||||||||
| Loans and leases held for sale | 712,351 | 1,267,198 | |||||||||
| Loans and leases | 360,414,845 | 202,130,684 | |||||||||
| Non accrual loans | 1,079,814 | - | |||||||||
| Deferred loan costs / (fees) | 209,276 | 133,627 | |||||||||
| Allowance for loan losses | (2,121,130 | ) | (1,965,000 | ) | |||||||
| Net loans and leases | 359,582,805 | 200,299,311 | |||||||||
| Fixed assets, net | 2,614,895 | 215,051 | |||||||||
| Accrued interest receivable | 849,839 | 498,752 | |||||||||
| Bank owned life insurance | 3,860,200 | - | |||||||||
| Other assets | 6,239,627 | 4,129,989 | |||||||||
| Total assets | $ | 438,467,519 | $ | 239,388,205 | |||||||
| Liabilities | |||||||||||
| Deposits: | |||||||||||
| Demand deposits | $ | 95,492,815 | $ | 36,067,123 | |||||||
| Interest bearing demand deposits | 45,202,832 | 20,467,505 | |||||||||
| Money market accounts | 50,701,514 | 38,639,411 | |||||||||
| Savings accounts | 24,038,604 | 432,165 | |||||||||
| Certificates of deposit | 116,311,764 | 78,790,068 | |||||||||
| Total deposits | 331,747,529 | 174,396,272 | |||||||||
| Federal funds purchased | - | - | |||||||||
| Overnight borrowings - FHLB | 15,000,000 | 5,000,000 | |||||||||
| FHLB term borrowings | 45,000,000 | 35,000,000 | |||||||||
| Accrued interest payable | 66,242 | 52,368 | |||||||||
| Other liabilities | 4,308,273 | 735,014 | |||||||||
| Total liabilities | 396,122,044 | 215,183,653 | |||||||||
| Stockholders' equity | |||||||||||
|
Common stock; issued and outstanding |
38,364,550 | 26,985,142 | |||||||||
| Add'l paid-in-capital - stock based comp. | 4,174,491 | 1,313,693 | |||||||||
| Retained earnings - preopening expenses | (863,858 | ) | (863,858 | ) | |||||||
| Retained earnings | (1,744,367 | ) | (3,614,343 | ) | |||||||
| Cash dividend | - | - | |||||||||
| Current year net income (loss) | 2,356,918 | 383,918 | |||||||||
| Unrealized gain (loss) on securities AFS | 57,741 | - | |||||||||
| Total stockholders' equity | 42,345,475 | 24,204,552 | |||||||||
| Total liabilities and stockholders' equity | $ | 438,467,519 | $ | 239,388,205 | |||||||
| PBB BANCORP | |||||||||
| Consolidated Statement of Operations | |||||||||
| Prior Year to Date Comparison | |||||||||
| (unaudited) | |||||||||
| For the 3 Months Ended | |||||||||
| 3/31/16 | 3/31/15 | ||||||||
| Interest income: | |||||||||
| Loans and leases, including fees | $ | 4,011,412 | $ | 2,312,032 | |||||
| Investment securities | 50,506 | - | |||||||
| Federal funds sold | 0 | - | |||||||
| Interest Income-FRB | 46,775 | 15,275 | |||||||
| Interest Income-Other | 42,793 | 24,727 | |||||||
| Total interest income | 4,151,486 | 2,352,034 | |||||||
| Interest expense: | |||||||||
| Interest bearing demand deposits | 11,181 | 7,748 | |||||||
| Money market accounts | 45,491 | 46,260 | |||||||
| Savings accounts | 4,985 | 199 | |||||||
| Certificates of deposit | 285,876 | 205,546 | |||||||
| FHLB overnight borrowings and federal funds purchased | 16,389 | 176 | |||||||
| FHLB term borrowings | 131,076 | 79,679 | |||||||
| Other borrowings | 556 | - | |||||||
| Total interest expense | 495,554 | 339,608 | |||||||
| Net int. income before prov. for loan losses | 3,655,933 | 2,012,427 | |||||||
| Provision for loan losses | - | 100,000 | |||||||
| Net int. income after prov. for loan losses | 3,655,933 | 1,912,427 | |||||||
| Noninterest income: | |||||||||
| Fees and service charges on dep. accts. | 28,832 | 5,506 | |||||||
| Analysis charges | 21,159 | 26,737 | |||||||
| Gain (loss) on sale of SBA loans | 227,490 | 197,636 | |||||||
| Other income | 1,926,989 | 3,154 | |||||||
| Total noninterest income | 2,204,470 | 233,033 | |||||||
| Noninterest expense: | |||||||||
| Salaries and benefits | 1,650,900 | 1,022,201 | |||||||
| Occupancy expense | 158,139 | 90,315 | |||||||
| Furniture, fixtures and equipment | 73,335 | 43,503 | |||||||
| Other expenses | 1,210,520 | 329,846 | |||||||
| Total noninterest expense | 3,092,894 | 1,485,865 | |||||||
| Income before tax provision | 2,767,508 | 659,595 | |||||||
| Provision for income taxes | 410,590 | 275,677 | |||||||
| Net income (loss) | $ | 2,356,918 | $ | 383,918 | |||||
