LOS ANGELES, CA – March 27, 2015 – PBB Bancorp (“PBCA” (OTCQX: PBCA)), the holding company of Premier Business Bank (“Premier”), announced today that its stock is now traded on the OTCQX Marketplace under stock symbol “PBCA”. Premier is now a wholly owned subsidiary of PBB Bancorp that was approved by the shareholders in 2014. According to Mr. John R. Polen, President and Chief Executive Officer, “The decision to have our stock traded on the OTCQX is part of an overall plan to generate liquidity for our shareholders.” PBB Bancorp stock information can be accessed on Premier’s website at www.ibankpremier.com under Investor Relations.
Premier Business Bank is a community-focused bank with offices in downtown Los Angeles, Torrance and Palos Verdes. 2014 was an exceptional year for Premier in profitability, growth, and noteworthy accomplishments. Below are the 2014 highlights:
- Increased pre-tax and pre-provision income by $883,000 or 166%
- Grew total assets by $44.8 million or 26% to $219.9 million
- Raised $3 million in new capital for growth
- Designated as a SBA Preferred Lender
- Formed PBB Bancorp • Earned the highest rating (5-Stars) from BAUER FINANCIAL now for 11 consecutive quarters
- Earned an A+ health rating from DepositAccounts.com now for 15 consecutive quarters
- Named Best New Business by Palos Verdes Peninsula Chamber of Commerce
- Named one of the nation’s top-performing community banks with assets between $150 - $300 million by the Independent Community Bankers of America
Premier has had five consecutive years of profitability. The results for the twelve-month period ended December 31, 2014 reflected consolidated net income of $732,000 or $0.22 per share as compared to $3,266,000 or $0.96 for the same period ended December 31, 2013 (adjusted for 545,487 shares issued in 2014). The results for 2013 included the recognition of Premier’s $2,534,000 deferred tax asset. The pre-tax and pre-provision earnings for the twelve-month period ended December 31, 2014 was $1,416,000 or $0.42 per share reflecting an increase of 166% as compared to $532,000 or $0.16 for the same period ended December 31, 2013. Net interest income in 2014 increased $1.3 million or 26% as compared to 2013 due to the significant growth in the loan portfolio. Non-interest income in 2014 increased $248,000 or 300% as compared to 2013, primarily due to SBA 7(a) loan production and the subsequent sale of the guaranteed portions along with a referral fee on a large project for one of our business relationships. Non-interest expenses increased $696,000 or 15% in 2014 as compared to 2013. The increase in non-interest expenses was a result of additional staffing in the loan service and production departments and compliance related costs to support the growth and complexities of the bank.
Premier maintained its momentum with another year of substantial growth in total assets in 2014. Premier completed its third capital campaign, raising an additional $3 million, allowing it to increase its total assets by $44.8 million or 26% to $219.9 million at the end of 2014. Asset quality remained strong with no real estate owned (REO) or delinquent or non-performing loans. “Our well performing loan portfolio and lower cost of funds increased our net interest income. This combined with prudent management of our non-interest expenses (G & A) has resulted in another year of increased core profits for Premier Business Bank,” commented Mr. Polen.
Premier continues to focus on maintaining excellent credit quality within its loan portfolio. The Bank is very proud of the fact that there has not been a loss on any real estate secured loans or write-downs in the history of the Bank. In the case of non-real estate loans, the Bank only lost approximately $256,000 more than five years ago. This minimal loss experience, coupled with no current delinquencies, non-accrual, nor foreclosures, represents one of the best asset quality reputations in our industry. For financial statement purposes, the current allowance for loan and lease losses is considered more than adequate at $1.9 million, or 1.03% of net loans as of December 31, 2014. Total assets were $219.9 million as of December 31, 2014 compared to $175.1 million as of December 31, 2013, an increase of $44.8 million or 26%. Net loans were $181.7 million as of December 31, 2014 compared to $134.7 million as of December 31, 2013, an increase of $47.0 million or 35%.
Total deposits were $165.4 million as of December 31, 2014 compared to $135.5 million at December 31, 2013, an increase of $30.0 million or 22%. The Palos Verdes branch continued to perform ahead of expectations with total deposits of $49.4 million at December 31, 2014.
Premier’s consistent operating profits over the past five years along with the capital raised have contributed to its strong capital position. At December 31, 2014, the Bank had $23.8 million in shareholders’ equity or a book value of $7.01 per share. The Bank’s capital ratios far exceed the applicable regulatory capital requirements to be considered “well-capitalized”. Total-Risk Based Capital Ratio was 13.9%, Tier 1 Risk-Based Capital Ratio was 12.8%, and Tier 1 Leverage Ratio was 11.3% as of December 31, 2014. Premier established a Small Business Administration (“SBA”) Loan Division in December 2013. “We hired Carol Lowry as Senior Vice President, SBA Division Manager to oversee this new lending program, and by November 2014 we had received the designation as a SBA Preferred Lender. This designation not only allows Premier to underwrite and approve SBA loans in-house, but also streamlines the loan process to meet our clients’ lending needs. This division has grown at a noteworthy pace this year and has created another significant revenue source for the bank,” stated Mr. Polen.
Premier received several accolades in 2014 for its outstanding financial performance, leadership and commitment to the communities in which its serves. “We are extremely proud to be recognized by such esteemed organizations both locally and on the national level. At Premier, we continually strive to meet the standards of excellence in all aspects of our business and relationships, which has been memorialized in our Corporate Values Credo,” said Mr. Polen with pride.
Our goal is to continue our momentum by expanding our presence in our target markets, continuing to generate consistent earnings, and further developing loyal client relationships to increase the franchise value of Premier. “This could not have been achieved without assembling an experienced executive management team five years ago. This cohesive team has implemented efficient processes throughout the operation, expanded Premier’s market share in new communities, and delivered consistent profits. Premier has a strong platform today and is positioned to take advantage of future opportunities that will benefit the overall strategic plan for the bank,” stated Mr. Polen.
Premier has a client-centric service philosophy that focuses on building 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. Premier offers a wide range of business and real estate lending products including SBA loans; 24/7 high-tech online banking services that include remote deposit capture and cash management; plus many in-branch banking services to meet the unique needs of its clients and the communities it serves.
PBB Bancorp is the holding company of Premier Business Bank, a full service community business bank headquartered in Downtown Los Angeles, California. Premier has two other locations in the South Bay region of Los Angeles County; a community-based full service retail branch in Palos Verdes and a loan center in Torrance. For more information, please visit us at www.ibankpremier.com.
- Contact Information:
John R. Polen
President and Chief Executive Officer
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.