Private Bancorp of America, Inc. Continues Record Growth in 2017 OTC Markets:PBAM

(MENAFNEditorial) LA JOLLA, Calif., Jan. 17, 2018 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM)

Private Bancorp of America, Inc. (the 'Bancorp'), parent company of San Diego Private Bank (the 'Bank'), announces unaudited financial results for the fourth quarter and the fiscal year ended December 31, 2017.

Total assets increased 23% during 2017 to a record $671.2 million at December 31, 2017. 2017 Net interest income increased 21% to $22.5 million and pre-tax income for 2017 was up 13% over 2016 at $7.9 million; both also record levels. Total deposits grew 30% during 2017, ending the year at $530.7 million. Total loans were $492.6 million at 12/31/2017, up 13% from the prior year end. Loan and deposit growth achieved record levels. The Bancorp and the Bank accomplished significant successes in 2017:

Strategic decision made to expand into West Los Angeles.

Appointed Richard Smith to Bank Board of Directors in the first quarter and Monica Navarro hired to build the Beverly Hills presence.

Opened its Beverly Hills Office in the third quarter.

Bancorp was 'up listed' to the OTCQX platform added to three indices.

Successfully completed a $17 million capital raise at market.

Added James Parks to Bank Board of Directors in the fourth quarter.

Bancorp's market cap exceeds $125 million for the first time in the fourth quarter.

Branded 'RELATIONSHIPS, SOLUTIONS, TRUST.'

Robert Pedersen hired in fourth quarter to manage the Bank's SBA Department.

Beverly Hills branch exceeds $100 million in deposits in December.

'We could not be more proud of our Team Members who worked tirelessly in 2017 to implement the Board's and Management's visions and strategies,' said Thomas V. Wornham, President and CEO. 'We remain committed to providing outstanding creative solution-based customer service to ensure sustained safe and sound organic growth.'

Credit quality and capital ratios remain healthy by all standards.

Changes in accounting rules related to the recently passed tax law negatively impacted the Bank and Bancorp. Bancorp's net income was $3,425,000 after a one-time $1,516,000 tax adjustment related the revaluation of deferred tax assets. Without the impact of the 2017 Tax Reform Bill, Bancorp's 2017 net income would have been $5.0 million, resulting in a 15% increase over 2016. 2017 earnings per share is $.74. If adjusted for the impact of the deferred tax asset revaluation of $.30 per share, earnings per share would have been $1.04. To accurately compare the adjusted 2017 EPS to 2016 it is important to recognize that after the 2017 capital raise there are 21% more shares outstanding at December 31, 2017 versus the same date of 2016.

Selwyn Isakow, Chairman of the Board, said 'We have doubled the asset size of the Bank in a little over three years. We have successfully expanded the size of our service footprint from the Mexican Border to Beverly Hills. We remain committed to being the finest relationship-focused financial service provider in Coastal Southern California. I would like to thank our Clients, Shareholders, Directors, Team Members and Management who continue to support our record growth. We remain committed to building client relationships through outstanding service and customized solutions in order to create exceptional trust.'

About Private Bancorp of America, Inc.

Private Bancorp of America, Inc. (OTCQX:PBAM), is the holding company for San Diego Private Bank. San Diego Private Bank, provides a Distinctly Different banking experience through unparalleled service and creative funding solutions to high net worth individuals, professionals, locally owned businesses and real estate entrepreneurs; serviced through offices in Coronado, San Diego, La Jolla, Newport Beach and Beverly Hills as well as efficient electronic banking offerings. The Bank also offers various portfolio and government guaranteed lending programs, including SBA and cross-border Export-Import Bank programs. San Diego Private Bank is a SBA Preferred Lender.

Investor Relations Contact

Thomas V. Wornham
President/CEO
Private Bancorp of America, Inc. and San Diego Private Bank
(858) 875.6900

Safe Harbor Paragraph

This press release may include forward-looking statements that involve inherent risks and uncertainties. Private Bancorp of America, Inc. cautions readers that a number of important factors could cause actual results to differ materially from those in the forward‐looking statements. These factors include economic conditions and competition in the geographic and business areas in which Private Bancorp of America, Inc. operates, our ability to successfully integrate the operations of merged banks, inflation, fluctuations in interest rates, legislation and governmental regulation. You should not place undue reliance on forward‐looking statements and we undertake no obligation to update those statements whether as a result of changes in underlying factors, new information, future events or otherwise.

[FINANCIAL TABLES FOLLOW]



PRIVATE BANCORP OF AMERICA, INC. SELECTED FINANCIAL DATA For the three months ended December 31, 2017 December 31, 2017 Q-o-Q Y-o-Y SELECT FINANCIAL DATA AND PERFORMANCE RATIOS December 31, 2017 September 30, 2017 December 31, 2016 change ($) change (%) change ($) change (%) (unaudited) Common shares outstanding at period-end 5,008,627 4,999,427 4,139,664 9,200 0 % 868,963 21 % Book value per common share $ 15.88 $ 15.94 $ 13.73 $ (0.07 ) 0 % $ 2.15 16 % Tangible book value per common share $ 15.79 $ 15.84 $ 13.55 $ (0.06 ) 0 % $ 2.24 17 % PERFORMANCE RATIOS (%): Return on average assets (annualized) -0.07 % 0.92 % 1.05 % -0.99 % -107 % -1.12 % -107 % Return on average equity (annualized) -0.55 % 6.69 % 9.36 % -7.23 % -108 % -9.91 % -106 % Return on average tangible common equity (annualized) -0.55 % 6.71 % 9.47 % -7.27 % -108 % -10.03 % -106 % Net interest margin 3.92 % 4.11 % 4.01 % -0.18 % -4 % -0.09 % -2 % Net interest spread 3.87 % 4.05 % 3.97 % -0.18 % -4 % -0.10 % -2 % Efficiency ratio 64.98 % 64.12 % 56.75 % 0.86 % 1 % 8.23 % 15 % Noninterest expense / average assets 2.54 % 2.68 % 2.32 % -0.14 % -5 % 0.22 % 10 % CAPITAL RATIOS (%): Tier 1 leverage ratio 12.11 % 13.39 % 10.83 % -1.28 % -10 % 1.28 % 12 % Tier 1 risk-based capital ratio 14.80 % 15.99 % 12.05 % -1.19 % -7 % 2.75 % 23 % Common equity Tier 1 ratio 14.80 % 15.99 % 12.05 % -1.19 % -7 % 2.75 % 23 % Total risk-based capital ratio 15.71 % 16.90 % 12.95 % -1.19 % -7 % 2.76 % 21 % Tangible equity / tangible assets 11.78 % 13.43 % 10.66 % -1.64 % -12 % 1.12 % 11 % December 31, 2017 December 31, 2017 Q-o-Q Y-o-Y CREDIT QUALITY PROFILE AND METRICS: December 31, 2017 September 30, 2017 December 31, 2016 change ($) change (%) change ($) change (%) Total Loans ($000s) 497,152 450,468 438,295 46,684 10 % 58,857 13 % 30-89 day past due loans ($000s) 1,424 - - 1,424 NM 1,424 NM 90+ day past due loans ($000s) - - - - NM - NM nonaccrual loans ($000s) 1,586 1,606 191 (20 ) -1 % 1,395 730 % NPAs / Assets (%) 0.24 % 0.27 % 0.04 % (0 ) -13 % 0 575 % NPLs / loans & REO (%) 0.32 % 0.36 % 0.04 % (0 ) -11 % 0 632 % Net chargeoffs ($000s) 0 0 0 - NM - NM NCOs / avg loans (annualized) (%) 0 % 0 % 0 % - NM - NM Reserve ratio (%) 0.91 % 0.94 % 0.92 % -0.03 % -3 % -0.01 % -1 % Reserve coverage ratio (%) 285 % 263 % 2104 % 22 % 8 % -1819 % -86 % December 31, 2017 December 31, 2017 Q-o-Q Y-o-Y LOAN PORTFOLIO COMPOSITION ($000s) December 31, 2017 September 30, 2017 December 31, 2016 change ($) change (%) change ($) change (%) Real estate - investor owned 189,355 183,587 178,209 5,768 3 % 11,146 6 % Real estate - owner occupied 62,657 46,501 46,201 16,156 35 % 16,456 36 % Real estate - multifamily 56,500 52,595 50,434 3,905 7 % 6,066 12 % Real estate - single family 48,362 51,225 47,715 (2,863 ) -6 % 647 1 % Commercial business 113,218 93,860 78,725 19,358 21 % 34,493 44 % Land and construction 24,679 20,585 36,929 4,094 20 % (12,250 ) -33 % Consumer 1,734 318 82 1,416 445 % 1,652 2015 % Leases - - - - NM - NM Other - - - - NM - NM Total loans held for investment 496,505 448,671 438,295 47,834 11 % 58,210 13 % Loans held for sale 647 1,797 - (1,150 ) -64 % 647 NM Total loans, including loans held for sale 497,152 450,468 438,295 46,684 10 % 58,857 13 % Allowance for loan losses (4,521 ) (4,221 ) (4,018 ) (300 ) 7 % (503 ) 13 % Net loans 492,631 446,247 434,277 46,384 10 % 58,354 13 % DEPOSIT COMPOSITION ($000S) Non interest bearing DDA 162,049 124,055 122,023 37,994 31 % 40,026 33 % Interest bearing DDA 16,373 10,963 13,292 5,410 49 % 3,081 23 % Savings & MMA 295,075 258,235 180,258 36,840 14 % 114,817 64 % Retail CD 6,035 6,793 5,458 (758 ) -11 % 577 11 % Jumbo CD 53,651 48,064 87,654 5,587 12 % (34,003 ) -39 % Total deposits 533,183 448,110 408,685 85,073 19 % 124,498 30 %

PRIVATE BANCORP OF AMERICA, INC. SELECTED FINANCIAL DATA December 31, 2017 December 31, 2017 Q-o-Q Y-o-Y BALANCE SHEET December 31, 2017 September 30, 2017 December 31, 2016 change ($) change (%) change ($) change (%) (unaudited - in $000s) Assets Cash and due from banks 15,128 13,363 38,368 1,765 13 % (23,240 ) -61 % Interest-bearing deposits at Federal Reserve Bank 87,401 70,336 32,092 17,065 24 % 55,309 172 % 102,529 83,699 70,460 18,830 22 % 32,069 46 % Interest-bearing time deposits with other institutions 2,997 2,997 1,245 - 0 % 1,752 141 % Investment securities available for sale 61,568 45,512 27,984 16,056 35 % 33,584 120 % Investment securities held to maturity - - - Loans 497,152 450,468 438,295 46,684 10 % 58,857 13 % Allowance for loan losses (4,521 ) (4,221 ) (4,018 ) (300 ) 7 % (503 ) 13 % 492,631 446,247 434,277 46,384 10 % 58,354 13 % Federal Home Loan Bank stock, at cost 2,295 2,295 2,135 - 0 % 160 7 % Premises and equipment, net 1,530 1,416 923 114 8 % 607 66 % Goodwill - - - Other intangible assets 487 503 690 (16 ) -3 % (203 ) -29 % Deferred tax asset/liability 4,233 5,553 5,703 (1,320 ) -24 % (1,470 ) -26 % Accrued interest receivable 1,811 1,450 1,277 361 25 % 534 42 % Other assets 1,164 800 980 364 46 % 184 19 % 671,245 590,472 545,674 80,773 14 % 125,571 23 % Liabilities and Shareholders' Equity Liabilities Noninterest Bearing 162,049 124,055 122,023 37,994 31 % 40,026 33 % Interest Bearing 371,134 324,055 286,662 47,079 15 % 84,472 29 % Total Deposits 533,183 448,110 408,685 85,073 19 % 124,498 30 % FHLB Borrowings 50,000 50,000 68,000 - 0 % (18,000 ) -26 % Other borrowings 7,896 7,892 7,882 4 0 % 14 0 % Accrued interest payable and other liabilities 645 4,756 2,310 (4,111 ) -86 % (1,665 ) -72 % 591,724 510,758 486,877 80,966 16 % 104,847 22 % Shareholders' equity Common stock 57,857 57,684 40,713 173 0 % 17,144 42 % Additional paid-in capital 2,569 2,528 2,343 41 2 % 226 10 % Retained earnings 19,265 19,350 15,814 (85 ) 0 % 3,451 22 % Accumulated other comprehensive income (170 ) 152 (73 ) (322 ) -212 % (97 ) 133 % 79,521 79,714 58,797 (193 ) 0 % 20,724 35 % Total liabilities and shareholders' equity 671,245 590,472 545,674 80,773 14 % 125,571 23 %

PRIVATE BANCORP OF AMERICA, INC. SELECTED FINANCIAL DATA December 31, 2017 December 31, 2017 For the three months ended Q-o-Q Y-o-Y INCOME STATEMENT December 31, 2017 September 30, 2017 December 31, 2016 change ($) change (%) change ($) change (%) (unaudited - in $000s, except per share data) Interest Income Loans 6,241 5,962 5,283 279 5 % 958 18 % Investment securities 321 227 259 94 41 % 62 24 % Deposits in other financial institutions 214 195 67 19 10 % 147 219 % 6,776 6,384 5,609 392 6 % 1,167 21 % Interest Expense Deposits 429 379 383 50 13 % 46 12 % Borrowings 267 263 202 4 2 % 65 32 % 696 642 585 54 8 % 111 19 % Net interest income 6,080 5,742 5,024 338 6 % 1,056 21 % Provision for credit losses 300 17 340 283 NM (40 ) -12 % Net interest income after provision for credit losses 5,780 5,725 4,684 55 1 % 1,096 23 % Noninterest income: Service charges on deposit accounts 72 77 94 (5 ) -6 % (22 ) -23 % Net gain on sale of loans & leases 73 69 168 4 6 % (95 ) -57 % Gain (loss) on sale of investment securities - - - - NM - NM Other noninterest income 26 45 46 (19 ) -42 % (20 ) -43 % 171 191 308 (20 ) -10 % (137 ) -44 % Noninterest expense: Salary and employee benefits 2,581 2,492 2,025 89 4 % 556 27 % Occupancy and equipment 458 466 302 (8 ) -2 % 156 52 % Data processing 260 278 251 (18 ) -6 % 9 4 % Professional services 217 175 105 42 24 % 112 107 % Other expenses 546 457 343 89 19 % 203 59 % 4,062 3,868 3,026 194 5 % 1,036 34 % Income before provision for income tax 1,889 2,048 1,966 (159 ) -8 % (77 ) -4 % Provision for income tax 1,999 815 598 1,184 145 % 1,401 234 % Net income available to common shareholders (110 ) 1,233 1,368 (1,343 ) -109 % (1,478 ) -108 % Earnings per share Basic earnings per share $ (0.02 ) $ 0.27 $ 0.34 $ (0.29 ) -108 % $ (0.36 ) -107 % Diluted earnings per share $ (0.02 ) $ 0.26 $ 0.33 $ (0.28 ) -108 % $ (0.35 ) -107 % Average shares outstanding 4,948,981 4,596,013 4,071,993 352,968 8 % 876,988 22 % Diluted average shares outstanding 5,071,375 4,712,015 4,187,134 359,360 8 % 884,241 21 %

PRIVATE BANCORP OF AMERICA, INC. SELECTED FINANCIAL DATA For the three months ended For the three months ended For the three months ended December 31, 2017 September 30, 2017 December 31, 2016 Average Average Average Average Average Average RATE AND YIELD TABLE Balance Interest Yield/Rate Balance Interest Yield/Rate Balance Interest Yield/Rate (unaudited - in $000s) Interest-Earnings Assets: Deposits in other financial institutions 78,516 214 1.08 % 65,682 195 1.18 % 54,702 67 0.49 % Investment securities 54,751 321 2.33 % 40,053 227 2.25 % 30,697 259 3.35 % Loans 481,667 6,241 5.14 % 448,915 5,962 5.27 % 411,814 5,283 5.09 % Total interest-earning assets 614,934 6,776 4.37 % 554,650 6,384 4.57 % 497,213 5,609 4.48 % Noninterest-earning assets 18,781 18,041 19,842 Total Assets 633,715 572,691 517,055 Interest-Bearing Liabilities Interest-bearing transaction accounts 13,469 7 0.21 % 12,376 6 0.19 % 13,032 6 0.18 % Money market 279,626 302 0.43 % 227,391 242 0.42 % 176,234 204 0.46 % Savings deposits 5,230 3 0.23 % 5,551 3 0.21 % 4,749 3 0.25 % Certificates of deposit 53,685 116 0.86 % 56,758 129 0.90 % 79,818 170 0.84 % Total Interest-Bearing Deposits 352,010 428 0.48 % 302,076 380 0.50 % 273,833 383 0.55 % FHLB advances 50,000 163 1.29 % 50,761 158 1.23 % 50,554 97 0.76 % Other borrowings 7,894 104 5.23 % 7,890 104 5.23 % 7,881 105 5.29 % Total Interest-Bearing Liabilities 57,894 267 1.83 % 58,651 262 1.77 % 332,268 202 0.24 % Noninterest-bearing deposits 140,454 129,918 124,203 Total Funding Sources 550,358 695 0.50 % 490,645 642 0.52 % 456,471 585 0.51 % Noninterest-bearing liabilities 3,623 3,021 2,586 Shareholders' equity 79,734 79,025 57,998 Total Liabilities and Shareholders' Equity 633,715 572,691 517,055 Net interest spread 3.87 % 4.05 % 3.97 % Net interest income 6,081 5,742 5,024 Net interest margin 3.92 % 4.11 % 4.01 %

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