the PRIVATE BANK of CALIFORNIA

The Private Bank of California Reports Third Quarter 2012 Results

Results Reflect Continued Strong Performance

11.21.12

The Private Bank of California today announced its unaudited financial results for the quarter ended September 30, 2012.

Third Quarter 2012 Highlights:

• Net income available to common shareholders totaled $485,000 for the quarter ($.12 per diluted share), compared to $643,000 for the same period in 2011.  Year-to-date net income available to common shareholders totaled $1,493,000 ($.38 per diluted share), up 31% from $1,141,000 in 2011:

• Income before the provisions for credit losses and income taxes was $1,026,000 for the quarter ended September 30, 2012, consistent with the $1,044,000 reported for the same period in the prior year.

• Net interest income totaled $4,582,000 for the quarter ended September 30, 2012, an improvement over the linked quarter’s $4,440,000.  Year-to-date 2012 net interest income totaled $13,320,000, a 20% increase over the prior year.

• The Bank’s operating leverage for the quarter ended September 30, 2012 declined slightly from the same quarter in the prior year due to infrastructure investments such as the opening of the Orange County Office in June 2012 and compliance, risk and support staffing additions commensurate with the Bank’s growth.  Realized net gains from the sale of securities available-for-sale totaling $403,000 and $1,314,000 for the quarter and year-to-date ended September 30, 2012 have been used to support and fund the Bank’s infrastructure investment initiatives.

• Total assets grew $46 million or 7% from the linked quarter and $118 million or 21% year-over-year to $685 million at September 30, 2012.

• Total deposits rose $28 million or 5% from the linked quarter and $84 million or 17% from year-end 2011 to $580 million at September 30, 2012.  Demand deposits totaled $273 million and accounted for 47% of total deposits at September 30, 2012 compared to 45% of total deposits at the linked quarter end and 44% at September 30, 2011.

• Total earning loans were $328 million at September 30, 2012, a $12 million or 4% increase from the linked quarter and a $29 million or 10% increase from year-end 2011.

• Non-accrual loans totaled $4.1 million at September 30, 2012, accounting for 1% of total loans outstanding and representing an increase of $1.3 million from the linked quarter.  The Bank had no earning loans past due 90 days or more at September 30 and June 30, 2012, as well as at December 31 and September 30, 2011.  At September 30, 2012, the coverage ratio of the allowance for credit losses to non-accrual loans was 146%.

• The allowance for credit losses was $5.9 million or 1.79% of total loans at September 30, 2012, compared to $5.3 million or 1.76% at year-end 2011 and $4.5 million or 1.67% in the same quarter of the prior year.  The provision for credit losses for the quarter and year-to-date ended September 30, 2012 totaled $319,000 and $796,000, respectively, and is primarily attributable to loan growth.  Net charge-offs for the quarter and year-to-date ended September 30, 2012 totaled $254,000 and $190,000, respectively.

• Securities available-for-sale at estimated fair value totaled $313 million at September 30, 2012, up $29 million or 10% from the linked quarter and $46 million or 17% from year-end 2011.  At September 30, 2012, the Bank’s securities available-for-sale portfolio had an unrealized gain totaling $6 million, rising from $4.6 million at the linked quarter and $4.1 million at year-end 2011.

• The Bank’s capital ratios continue to significantly exceed all regulatory guidelines for “well-capitalized” financial institutions:

“We are quite pleased with our growth this past quarter, as our Orange County office officially opened and continues to gain momentum,” says President Richard A. Smith.  “In addition, demand is increasing and we anticipate a nice surge in loans in the final quarter of 2012.”

In August 2012, its Board of Directors approved the acquisition of the Bank by First PacTrust Bancorp, the holding company for PacTrust Bank and Beach Business Bank.  The Private Bank of California will be merged into Beach Business Bank, but it was announced that the combined entity will retain The Private Bank of California name following the closing of the transaction.  The transaction is subject to regulatory and shareholder approvals.  “This merger enables the Bank to continue growing with better access to resources, improved systems, and higher lending limits,” states Chief Executive Officer David R. Misch.

“We are thrilled about our recently announced future partnership with First PacTrust Bancorp, a result of the Bank’s strong growth since inception.  Our three lines of business – Private, Entertainment and Business Banking – and culture are a strategic and complementary fit with Beach Business Bank, which handles small business, SBA lending, medical practices and retail banking.  With FirstPacTrust’s support, we can now scale to meet our clients’ growing needs, offer broader products, and ultimately achieve the long-term vision of being a multi-billion dollar financial institution,” adds Misch.

For more information on the merger, visit TPBOC.com/newsroom.