PBB Bancorp is Now Traded on the OTCQX Marketplace

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 CEO, “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.

2014 was an exceptional year for Premier Business Bank for profitability, growth, and noteworthy accomplishments. Below are a few 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
• Designated a SBA Preferred Lender
• Earned the highest rating (5-Stars) from BAUER FINANCIAL now for 11 consecutive quarters
• 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 were $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 related to staffing 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 established a Small Business Administration (“SBA”) Loan Division in December 2013. 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’s primary focus is maintaining excellent credit quality within its loan portfolio. In fact, there have been no losses on any real estate secured loans or write-downs in the history of the Bank. The Bank only lost approximately $256,000 on non-real estate loans more than five years ago. Premier’s minimal loss experience and no current delinquencies, non-accruals, or 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%.

Premier’s consistent operating profits and 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.

Our goal is to continue to expand in our target markets, generate consistent earnings, and further develop loyal client relationships to increase shareholder value. “With our experienced executive management team, Premier is positioned to explore future opportunities that would benefit the overall strategic plan for the bank,” stated Mr. Polen.

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. 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. For more information and the complete press release, please visit us at www.ibankpremier.com.

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.