Despite slipping back to a net loss in the second quarter, Private Bank of California announced Monday that its bank assets increased during the quarter along with deposits and loans.
The Los Angeles banking company, which caters to high-net-worth individuals, business professionals and their professional services firms, business owners, entertainment service businesses, local businesses, and nonprofit organizations, said that its assets increased 48%, to $248 million, from a year earlier.
The asset growth rate was 25% from the previous quarter.
The company said the asset growth reflected continued strong organic deposit growth. Deposits increased 59%, to $213 million, from a year earlier and 31% from the previous quarter.
Private Bank of California said that it has had no deposits from brokers or other wholesale funding sources since it was opened in October 2005.
Loans outstanding rose 68%, to $143 million, from a year earlier and 16% from the previous quarter.
The allowance for credit losses was $2.14 million, or 1.5% of total loans outstanding at June 30, compared to $1.8 million or 1.5% of total loans outstanding at March 31, and $1.274 million or 1.5% of total loans outstanding at June 30, 2007.
The company said that it had no subprime mortgage loans or securities backed by subprime loans at June 30.
Shareholders' equity totaled $34 million. The bank's capital ratios continued to exceed all regulatory guidelines for "well-capitalized" financial institutions, it said. The Tier 1 leverage ratio was 15.53% at June 30, the Tier 1 risk-based capital ratio was 19.64%, and the total risk-based capital ratio was 20.89%.
Steven D. Broidy, Private Bank of California's chairman and interim chief executive officer, said in a press release that the company remains pleased with its growth and "development of its balance sheet in the current challenging economic environment. We believe that continued execution of our business plan, combined with the strength and liquidity of our balance sheet, provides us with a solid foundation on a go-forward basis."
The company's net loss for the quarter was $157,000, or 4 cents per share, down from $178,000, or 5 cents per share, a year earlier.
For the first six months of this year, Private Bank of California had a net loss of $108,000, or 3 cents per share, down from a $400,000 net loss for the first six months of last year.
It had a $49,000 net gain in the first quarter.
In the second quarter, the company's operating results included a provision for credit losses totaling $319,000, as well as noncash expense of $183,000 for stock options.