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Premier Business Bank Reports 2012 3rd Quarter Results and Opens a New Branch in Palos Verdes

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Premier Business Bank (“Bank”) is pleased to report continued profitability for nine months ended September 30, 2012. Net income for the nine-month period ended September 30, 2012 was $285,000 as compared to $381,000 for the same period ended September 30, 2011. The decrease in net income for the nine-month period ended September 30, 2012, as compared to the same nine month period in 2011 was due to the reversal of $100,000 from the Allowance for Loan and Lease Losses in 2011. “The Bank has earned a profit for ten consecutive quarters, which has contributed $1.3 million to the Bank’s capital,” stated Mr. John Polen, President and Chief Executive Officer.

Total assets at September 30, 2012 were $108.5 million, an increase of $14.5 million as compared to $94.0 million at September 30, 2011. Total loans, net were $85.6 million at September 30, 2012 compared to $76.8 million at September 30, 2011, reflecting an increase of $8.8 million. Total deposits were $90.0 million as of September 30, 2012 compared to $78.3 million as of September 30, 2011, reflecting an increase of $11.7 million. ”Total loan and deposit growth has been primarily through new business relationships established by the corporate banking officers in both Los Angeles and Torrance. We are pleased to report that the Bank is on track with its strategic plan, and has successfully achieved its profit goals for the third quarter,” remarked Mr. Polen.

The Bank continues to be diligent in maintaining excellent credit quality in its loan portfolio. The allowance for loan losses was $1.9 million or 2.23% of total loans as of September 30, 2012. “Our asset quality continues to remain strong with no real estate owned (REO) or non-performing assets,” stated Mr. Polen.

During the third quarter of 2012, the Bank made significant strides in its strategic goals for 2012. On September 24, 2012, the Bank opened its Palos Verdes branch. This location was specifically chosen based on long term banking relationships associated with the Management Team. “We have already begun to see the migration of these relationships to the Bank through loan and deposit growth at the new branch,” commented Mr. Polen. In addition, on September 28, 2012, the Bank closed the first round of the Capital Campaign through a Private Placement Memorandum raising $2.0 million in capital to support asset growth. At September 30, 2012, the Bank had $14.8 million in shareholders’ equity, which translates to a book value of $6.06 per share, and now it has the capital base to grow total assets to $150 million. The Bank’s capital ratios far exceed the applicable regulatory capital requirements to be considered “well-capitalized”. Total-Risk Based Capital Ratio was 18.93%, Tier 1 Risk-Based Capital Ratio was 17.67%, and Tier 1 Leverage Ratio was 14.48% as of September 30, 2012. “We are very pleased to welcome our new shareholders and excited about the continued level of interest in the Bank, and for those who are interested, this private offering to accredited investors has been extended from October 31, 2012 to December 12, 2012,” stated Mr. Polen.

As the end of 2012 approaches, the Bank will remain focused on its goals while continually seeking out new opportunities to further enhance its franchise value through strategically planned growth and performance. Now with the Presidential election decided, and the uncertainty of regulatory changes that may or may not expire at December 31, 2012, the Bank is cautiously optimistic as it moves forward into 2013. Either way, the Bank has a strong platform, additional capital and a strategic plan to increase market share in the markets it serves.

Premier Business Bank opened for business in July 2006. It is a full-service, high-tech business bank headquartered in downtown Los Angeles, California, and has a Loan Center in Torrance, California to serve the South Bay region. In September 2012, the Bank opened a second retail branch located on the Palos Verdes Peninsula. The Bank has a client-centric service philosophy focused on banking relationships with individuals, small to mid-size businesses, family-owned and closely-held middle market businesses, real estate investors, professional management firms, and entrepreneurs. For more information, please visit us at www.ibankpremier.com.

Contact Information:
Randall T. Hata
Executive Vice President and Chief Financial Officer
Phone: 213-689-4800
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

This release contains forward-looking statements, 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 of the date hereof. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.