Third Quarter Highlights
- Net income for the quarter was $5.1 million, compared to $4.3 million for Q2’21
- Diluted earnings per share of $0.89, compared to $0.75 for Q2’21
- Net interest margin of 4.39%, compared to 4.03% for Q2’21
- Cost of funding sources was 0.22%, compared to 0.46% for Q2’21
- Gross loans increased $43.3 million during the quarter, up 3.7%; excluding PPP loans, gross loans increased $79.8 million, up 7.4%
- Non-interest bearing demand deposits grew $42.3 million to $646.2 million, representing 49.2% of total deposits
- Proactively decreased corporate real estate footprint resulting in a pre-tax impairment charge of $670 thousand, which will result in future cost savings
- Tangible book value per share of $21.27, up $0.94 per share or 4.6% from Q2’21
- Well capitalized Tier 1 risk-based capital ratio of 10.64% (preliminary)
LA JOLLA, Calif., Oct. 22, 2023 (GLOBE NEWSWIRE) — Private Bancorp of America, Inc. (OTCQX:PBAM), (“Company”) and CalPrivate Bank (“Bank”) announced unaudited financial results for the third quarter ending September 30, 2023. The Company reported net income of $5.1 million, or $0.89 per diluted share, for the third quarter of 2023 compared to $4.3 million, or $0.75 per diluted share for the second quarter of 2023. Net income for the nine months ending September 30, 2023, was $13.9 million, or $2.45 per diluted share, compared to $6.5 million or $1.16 per diluted share for the same period in 2020.
Rick Sowers, President and CEO of the Company and the Bank stated, “Despite the global pandemic that continues to weigh on our Clients and the economy, our third quarter results demonstrate the progress we have made executing on our core business plan while continuing to provide Distinctly Different superior levels of service to our Clients. Our Team, including new hires, continues to focus on financial performance and the continued growth of the CalPrivate franchise in our core markets. The third quarter reflected strong organic loan production and continued gain on sale of SBA loans. We are pleased with the financial results and have tremendous confidence in our Team and their ability to execute on behalf of our Clients and Stakeholders.”
Sowers continued, “We continue to make progress in improving our operating leverage while strategically adding resources and technology to scale and grow our market share. We are excited about the implementation of new technologies including the nCino Bank Operating System that we expect will drive efficiencies. We are also funding fintech companies focusing on services and solutions for community banks through our investment in JAM FINTOP Banktech, LP.”
“PBAM’s third quarter of 2023 demonstrated the resilience of our franchise, the continued dedication of our employees, and the tremendous success we have been able to achieve for our Clients and Stakeholders,” said Selwyn Isakow, Chairman of the Board of the Company and the Bank.
Isakow added, “These financial results attest to CalPrivate’s ability to uniquely differentiate itself in the competitive Southern California landscape. The Bank continues to add tangible book value and is well-positioned for sustainable future growth.”
STATEMENT OF INCOME
Net Interest Income
Net interest income for the third quarter totaled $15.7 million, representing an increase of $2.1 million or 15.6% compared to the second quarter of 2023. The increase in net interest income for the quarter is due to a $1.4 million increase in interest income and a $688 thousand decrease in funding costs. The increase in interest income is due primarily to higher non-PPP loan balances as well as to a $509 thousand increase in PPP fees received compared to the second quarter. The third quarter decrease in funding costs is due to cost savings related to the second quarter prepayment of high cost FHLB borrowings which included a prepayment penalty of $535 thousand.
Net interest income for the year-to-date period totaled $42.1 million representing an increase of $6.5 million, or 18.1% compared to the same period in 2020. The increase is due to increased average loan balances, increased SBA PPP loan income and lower cost of funds, partially offset by year-to-date prepayment penalties in 2023 totaling $1.2 million as a result of prepaying higher priced FHLB term advances.
Net Interest Margin
The net interest margin for the third quarter of 2023 was 4.39% (4.27% excluding PPP loans) compared to 4.03% (4.14% excluding PPP loans) for the second quarter and 3.94% (3.88% excluding PPP loans) for the same period in 2020. The 36bps increase in the net interest margin for the quarter was due to increased core loan yields and lower funding costs for the quarter. Average portfolio loan yields were 5.38%, compared to 5.21% for Q2’21. The yield on earning assets for the third quarter was 4.60% compared with 4.46% and 4.37% for the same period in 2020. The yield on loans for the quarter increased to 5.38% (5.32% excluding PPP loans) compared to 5.21% (5.50% excluding PPP loans) in the second quarter and 5.21% (5.27% excluding PPP loans) in the third quarter of 2020. The cost of total funding sources was 0.22% for the quarter compared with 0.46% in the second quarter and 0.47% for the same period in 2020.
The net interest margin for the nine months ending September 30, 2023 was 4.10% (4.05% excluding PPP) compared with 4.01% (4.13% excluding PPP) for the same period in 2020. The increase in the net interest margin is due to lower yields on loans, federal funds and increased borrowing costs partially offset by lower deposits costs. In the first nine months of the year, the Company prepaid FHLB term advances and recorded $1.2 million in prepayment fees resulting in a negative 13 bp impact on the net interest margin.
Provision for Loan Losses
The provision for loan losses for the third quarter of 2023 was $433 thousand, a decrease of $713 thousand compared to $1.1 million for the second quarter of 2023. The driver for the third quarter provision was organic growth in the loan portfolio. While the economy continued to recover in the third quarter, the COVID-19 Delta variant continues to create uncertainty, and this is reflected in our total loan loss provision to total loans of 1.31% or 1.40% excluding PPP loans.
Non-Interest Income
Non-interest income was $2.4 million for the third quarter of 2023, representing a $416 thousand or a 14.8% decrease compared to the second quarter of 2023. The decrease in non-interest income for the quarter was primarily due to a similar size decrease in SBA loans sales during the quarter. SBA loan sales for the third quarter were $15.6 million with a 14.5% trade premium compared with $19.4 million with a 15.2% trade premium in the second quarter of 2023. Due to a change in our SBA loan servicing provider, sales of loans originated slowed during the quarter, resulting in $35.4 million of loans held for sale at September 30, 2023, up from $19.6 million at June 30, 2023.
Non-Interest Expense
Non-interest expense was $10.5 million for the third quarter of 2023 representing a $1.3 million or 14.3% increase compared to the second quarter of 2023. As a result of CalPrivate’s decision to empower its employees by giving them the choice to work remotely, the Bank was able consolidate one of its administrative locations. The increase in occupancy expenses for the quarter was due in part to this decision to vacate, which resulted in an impairment charge of $662 thousand to the right-of-use asset along with a $8 thousand fixed asset write off. As a result of the impairment charges and expected cost savings, occupancy expenses for this location are expected to be reduced by approximately $67 thousand pre-tax per quarter through the second quarter of 2024. Additionally, salaries and benefits increased $629 thousand in the third quarter due to strategic additions to staff and prior period accrual adjustments.
Professional services and other expenses continue to remain at elevated levels given on-going legal and related expenses associated with the ANI Development, LLC and Gina Champion-Cain fraud recovery cases.
STATEMENT OF FINANCIAL CONDITION
Balance Sheet
At September 30, 2023, the Company reported total assets of $1.5 billion representing an increase of $91.9 million or 6.6% compared to the second quarter of 2023. The increase in assets for the quarter was due to increases in loans and customer deposits. Net loans held for investment increased $43.3 million or 3.7% in the quarter due to a $79.8 million increase in non-SBA PPP loans offset by a $36.5 million decrease in SBA-PPP loans. Total deposits were $1.3 billion representing an increase of $108 million, or 8.9%, compared to the second quarter of 2023 and an increase of $284.5 million, or 27.7%, compared to September 30, 2020. Total non-interest-bearing deposits represented 49.2% of total deposits at September 30, 2023. During the quarter, total FHLB advances decreased $20.0 million due to contractual maturities.
Asset Quality and Loan Deferrals
The Allowance for Loan Losses increased $433 thousand to $16.1 million in the quarter with a resulting coverage ratio of 1.31% of total loans outstanding, including PPP loans, compared to $15.7 million or 1.33% at the second quarter of 2023. The increase in the Allowance for Loan Losses was primarily due to non-PPP organic loan growth and qualitative factors related to the general economic outlook in the markets we serve. The coverage ratio at September 30, 2023, excluding the impact of PPP loans, decreased to 1.40% from 1.46% in the prior quarter.
As of September 30, 2023, two PPP loans totaling $200 thousand were past due (30-89 days) with no potential loss exposure. Additionally, there were no doubtful credits or charge offs and Classified assets totaled $10.3 million. Ten classified assets include one 57% LTV real estate loan totaling $1.5 million that is on non-accrual and the remaining $8.8 million consisted of nine loans with six of those loans impacted by COVID-19. Five of the ten classified assets are secured by real estate at a favorable leverage position.
At September 30, 2023, no new deferrals related to COVID-19 were granted during the quarter. The loans that were previously granted payment deferrals have resumed their contractual payments.
Capital Ratios
At September 30, 2023, the Company’s capital ratios were in excess of the levels established for well capitalized institutions and are as follows:
| September 30, 2023 (1) | June 30, 2023 | September 30, 2020 | |
| Tier I leverage ratio | 8.19% | 8.36% | 7.92% |
| Tier I risk-based capital ratio | 10.64% | 10.74% | 11.35% |
| Total risk-based capital ratio | 13.48% | 13.68% | 14.63% |
| (1) Preliminary ratios for September 30, 2023 | |||
Stock Repurchase Program
Since announcing the stock repurchase program in July 2023, the Company has not repurchased any shares of its common stock. The remaining number of shares authorized to be repurchased under this program at September 30, 2023, was 75,000 shares.
About Private Bancorp of America, Inc.
Private Bancorp of America, Inc. (OTCQX: PBAM), is the holding company for CalPrivate Bank. CalPrivate 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. Customers are serviced through offices in Coronado, San Diego, La Jolla, Newport Beach, El Segundo 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. CalPrivate Bank is an SBA Preferred Lender and a Bauer Financial 5-star rated bank.
Investor Relations Contacts
Rick Sowers
President and Chief Executive Officer
Private Bancorp of America, Inc., and CalPrivate Bank
(424) 303-4894
Mag Wangsuwana
Executive Vice President and Chief Financial Officer
Private Bancorp of America, Inc., and CalPrivate Bank
(424) 348-2145
Safe Harbor Paragraph
This press release includes 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 the effects of the COVID-19 pandemic and related government actions on the Bank and its customers, loan losses, economic conditions and competition in the geographic and business areas in which Private Bancorp of America, Inc. operates, our ability to successfully integrate and develop business through the addition of new personnel and facilities and merged banks, whether our efforts to expand loan, product and service offerings will prove profitable, the effects of the bank mergers and acquisitions in our markets, system failures and internet security, 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.
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||||||
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| September 30, 2021 |
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September 30, 2020 |
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| Assets | |||||||||||||||||||||||
| Cash and due from banks | $ | 12,570 | $ | 12,783 | $ | (213 | ) | 1.7 | % | $ | 10,985 | $ | 1,585 | 14.4 | % | ||||||||
| Interest-bearing deposits in other financial institutions | 2,736 | 13,969 | (11,233 | ) | -80.4 | % | 930 | 1,806 | 194.2 | % | |||||||||||||
| Interest-bearing deposits at Federal Reserve Bank | 123,247 | 65,356 | 57,891 | 88.6 | % | 143,431 | (20,184 | ) | -14.1 | % | |||||||||||||
| Total cash and due from banks | 138,553 | 92,108 | 46,445 | 50.4 | % | 155,346 | (16,793 | ) | -10.8 | % | |||||||||||||
| Interest-bearing time deposits with other institutions | 5,760 | 5,760 | – | 0.0 | % | 5,760 | – | 0.0 | % | ||||||||||||||
| Investment securities available for sale | 93,099 | 88,755 | 4,344 | 4.9 | % | 26,525 | 66,574 | 251.0 | % | ||||||||||||||
| Loan held for sale | 35,448 | 19,625 | 15,823 | 80.6 | % | 8,402 | 27,046 | 321.9 | % | ||||||||||||||
| Loans, net of deferred fees and costs | 1,192,135 | 1,164,611 | 27,524 | 2.4 | % | 1,034,384 | 157,751 | 15.3 | % | ||||||||||||||
| Allowance for loan losses | (16,141 | ) | (15,708 | ) | (433 | ) | 2.8 | % | (12,682 | ) | (3,459 | ) | 27.3 | % | |||||||||
| Net loans | 1,175,994 | 1,148,903 | 27,091 | 2.4 | % | 1,021,702 | 154,292 | 15.1 | % | ||||||||||||||
| Federal Home Loan Bank stock, at cost | 4,909 | 4,909 | – | 0.0 | % | 4,602 | 307 | 6.7 | % | ||||||||||||||
| Right of use asset | 4,115 | 5,185 | (1,070 | ) | -20.6 | % | 5,186 | (1,071 | ) | -20.7 | % | ||||||||||||
| Premises and equipment, net | 2,459 | 2,578 | (119 | ) | -4.6 | % | 2,859 | (400 | ) | -14.0 | % | ||||||||||||
| Other intangible assets | 2,374 | 2,123 | 251 | 11.8 | % | 1,364 | 1,010 | 74.0 | % | ||||||||||||||
| Deferred tax asset | 6,256 | 7,012 | (756 | ) | -10.8 | % | 4,141 | 2,115 | 51.1 | % | |||||||||||||
| Accrued interest receivable | 3,404 | 3,501 | (97 | ) | -2.8 | % | 3,883 | (479 | ) | -12.3 | % | ||||||||||||
| Other assets | 2,311 | 2,311 | – | 0.0 | % | 4,424 | (2,113 | ) | -47.8 | % | |||||||||||||
| Total assets | $ | 1,474,682 | $ | 1,382,770 | $ | 91,912 | 6.6 | % | $ | 1,244,194 | $ | 230,488 | 18.5 | % | |||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Noninterest bearing | $ | 646,233 | $ | 603,914 | $ | 42,319 | 7.0 | % | $ | 471,324 | $ | 174,909 | 37.1 | % | |||||||||
| Interest Bearing | 667,012 | 601,530 | 65,482 | 10.9 | % | 557,455 | 109,557 | 19.7 | % | ||||||||||||||
| Total deposits | 1,313,245 | 1,205,444 | 107,801 | 8.9 | % | 1,028,779 | 284,466 | 27.7 | % | ||||||||||||||
| FHLB borrowings | 10,000 | 30,000 | (20,000 | ) | -66.7 | % | 80,000 | (70,000 | ) | -87.5 | % | ||||||||||||
| Other borrowings | 17,945 | 17,943 | 2 | 0.0 | % | 17,938 | 7 | 0.0 | % | ||||||||||||||
| Accrued interest payable and other liabilities | 11,613 | 13,059 | (1,446 | ) | -11.1 | % | 14,227 | (2,614 | ) | -18.4 | % | ||||||||||||
| Total liabilities | 1,352,803 | 1,266,446 | 86,357 | 6.8 | % | 1,140,944 | 211,859 | 18.6 | % | ||||||||||||||
| Shareholders’ equity | |||||||||||||||||||||||
| Common stock | 70,470 | 70,405 | 65 | 0.1 | % | 69,540 | 930 | 1.3 | % | ||||||||||||||
| Additional paid-in capital | 3,465 | 3,179 | 286 | 9.0 | % | 3,230 | 235 | 7.3 | % | ||||||||||||||
| Retained earnings | 47,845 | 42,810 | 5,035 | 11.8 | % | 29,521 | 18,324 | 62.1 | % | ||||||||||||||
| Accumulated other comprehensive (loss) income | 99 | (70 | ) | 169 | -241.4 | % | 959 | (860 | ) | -89.7 | % | ||||||||||||
| Total stockholders’ equity | 121,879 | 116,324 | 5,555 | 4.8 | % | 103,250 | 18,629 | 18.0 | % | ||||||||||||||
| Total liabilities and stockholders’ equity | $ | 1,474,682 | $ | 1,382,770 | $ | 91,912 | 6.6 | % | $ | 1,244,194 | $ | 230,488 | 18.5 | % | |||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||||||||
| For the three months ended | |||||||||||||||||||||
| September 30, 2021 |
June 30, 2021 |
Dollar change |
Percentage change |
September 30, 2020 |
Dollar change |
Percentage change |
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| Interest Income | |||||||||||||||||||||
| Loans | $ | 16,068 | $ | 14,637 | $ | 1,431 | 9.8 | % | $ | 13,578 | $ | 2,490 | 18.3 | % | |||||||
| Investment securities | 330 | 351 | (21 | ) | -6.0 | % | 231 | 99 | 42.9 | % | |||||||||||
| Deposits in other financial institutions | 60 | 40 | 20 | 50.0 | % | 51 | 9 | 17.6 | % | ||||||||||||
| Total interest income | 16,458 | 15,028 | 1,430 | 9.5 | % | 13,860 | 2,598 | 18.7 | % | ||||||||||||
| Interest Expense | |||||||||||||||||||||
| Deposits | 409 | 409 | – | 0.0 | % | 707 | (298 | ) | -42.1 | % | |||||||||||
| Borrowings | 332 | 1,020 | (688 | ) | -67.5 | % | 656 | (324 | ) | -49.4 | % | ||||||||||
| Total interest expense | 741 | 1,429 | (688 | ) | -48.1 | % | 1,363 | (622 | ) | -45.6 | % | ||||||||||
| Net interest income | 15,717 | 13,599 | 2,118 | 15.6 | % | 12,497 | 3,220 | 25.8 | % | ||||||||||||
| Provision for loan losses | 433 | 1,146 | (713 | ) | -62.2 | % | 1,582 | (1,149 | ) | -72.6 | % | ||||||||||
| Net interest income after provision for loan losses | 15,284 | 12,453 | 2,831 | 22.7 | % | 10,915 | 4,369 | 40.0 | % | ||||||||||||
| Noninterest income: | |||||||||||||||||||||
| Service charges on deposit accounts | 236 | 231 | 5 | 2.2 | % | 141 | 95 | 67.4 | % | ||||||||||||
| Net gain on sale of loans | 1,837 | 2,326 | (489 | ) | -21.0 | % | 554 | 1,283 | 231.6 | % | |||||||||||
| Gain on sale of investment securities | – | – | – | NM | – | – | NM | ||||||||||||||
| Other noninterest income | 316 | 248 | 68 | 27.4 | % | 241 | 75 | 31.1 | % | ||||||||||||
| Total noninterest income | 2,389 | 2,805 | (416 | ) | -14.8 | % | 1,871 | 518 | 27.7 | % | |||||||||||
| Noninterest expense: | |||||||||||||||||||||
| Salary and employee benefits | 6,595 | 5,966 | 629 | 10.5 | % | 5,365 | 1,230 | 22.9 | % | ||||||||||||
| Occupancy and equipment | 1,484 | 820 | 664 | 81.0 | % | 864 | 620 | 71.8 | % | ||||||||||||
| Data processing | 799 | 690 | 109 | 15.8 | % | 643 | 156 | 24.3 | % | ||||||||||||
| Professional services | 552 | 791 | (239 | ) | -30.2 | % | 514 | 38 | 7.4 | % | |||||||||||
| Other expenses | 1,034 | 891 | 143 | 16.0 | % | 846 | 188 | 22.2 | % | ||||||||||||
| Total noninterest expense | 10,464 | 9,158 | 1,306 | 14.3 | % | 8,232 | 2,232 | 27.1 | % | ||||||||||||
| Income before provision for income taxes | 7,209 | 6,100 | 1,109 | 18.2 | % | 3,619 | 3,590 | 99.2 | % | ||||||||||||
| Provision for income taxes | 2,158 | 1,806 | 352 | 19.5 | % | 1,084 | 1,074 | 99.1 | % | ||||||||||||
| Net income | $ | 5,051 | $ | 4,294 | $ | 757 | 17.6 | % | $ | 2,535 | $ | 2,516 | 99.3 | % | |||||||
| Net income available to common shareholders | $ | 4,984 | $ | 4,231 | $ | 753 | 17.8 | % | $ | 2,499 | $ | 2,485 | 99.4 | % | |||||||
| Earnings per share | |||||||||||||||||||||
| Basic earnings per share | $ | 0.90 | $ | 0.76 | $ | 0.14 | 18.3 | % | $ | 0.45 | $ | 0.45 | 99.8 | % | |||||||
| Diluted earnings per share | $ | 0.89 | $ | 0.75 | $ | 0.14 | 18.0 | % | $ | 0.45 | $ | 0.44 | 96.7 | % | |||||||
| Average shares outstanding | 5,543,403 | 5,536,111 | 7,292 | 0.1 | % | 5,499,970 | 43,433 | 0.8 | % | ||||||||||||
| Diluted average shares outstanding | 5,629,900 | 5,622,075 | 7,825 | 0.1 | % | 5,516,013 | 113,887 | 2.1 | % | ||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | ||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
| (Unaudited) | ||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||
| For the nine months ended | ||||||||||||
| September 30, 2023 | September 30, 2020 | Dollar change |
Percentage change |
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| Interest Income | ||||||||||||
| Loans | $ | 44,865 | $ | 39,999 | $ | 4,866 | 12.2 | % | ||||
| Investment securities | 986 | 883 | 103 | 11.7 | % | |||||||
| Deposits in other financial institutions | 158 | 446 | (288 | ) | -64.6 | % | ||||||
| Total interest income | 46,009 | 41,328 | 4,681 | 11.3 | % | |||||||
| Interest Expense | ||||||||||||
| Deposits | 1,336 | 3,773 | (2,437 | ) | -64.6 | % | ||||||
| Borrowings | 2,571 | 1,904 | 667 | 35.0 | % | |||||||
| Total interest expense | 3,907 | 5,677 | (1,770 | ) | -31.2 | % | ||||||
| Net interest income | 42,102 | 35,651 | 6,451 | 18.1 | % | |||||||
| Provision for loan losses | 1,879 | 4,091 | (2,212 | ) | -54.1 | % | ||||||
| Net interest income after provision for loan losses | 40,223 | 31,560 | 8,663 | 27.4 | % | |||||||
| Noninterest income: | ||||||||||||
| Service charges on deposit accounts | 691 | 457 | 234 | 51.2 | % | |||||||
| Net gain on sale of loans | 5,639 | 1,444 | 4,195 | 290.2 | % | |||||||
| Gain on sale of investment securities | – | 751 | (751 | ) | -100.0 | % | ||||||
| Other noninterest income | 736 | 808 | (72 | ) | -8.9 | % | ||||||
| Total noninterest income | 7,066 | 3,460 | 3,606 | 104.2 | % | |||||||
| Noninterest expense: | ||||||||||||
| Salary and employee benefits | 17,476 | 16,707 | 769 | 4.6 | % | |||||||
| Occupancy and equipment | 3,114 | 2,649 | 465 | 17.6 | % | |||||||
| Data processing | 2,124 | 1,721 | 403 | 23.4 | % | |||||||
| Professional services | 1,994 | 2,001 | (7 | ) | -0.3 | % | ||||||
| Other expenses | 2,688 | 2,521 | 167 | 6.6 | % | |||||||
| Total noninterest expense | 27,396 | 25,599 | 1,797 | 7.0 | % | |||||||
| Income before provision for income taxes | 19,893 | 9,421 | 10,472 | 111.2 | % | |||||||
| Provision for income tax | 5,942 | 2,910 | 3,032 | 104.2 | % | |||||||
| Net income | $ | 13,951 | $ | 6,511 | $ | 7,440 | 114.3 | % | ||||
| Net income available to common shareholders | $ | 13,744 | $ | 6,407 | $ | 7,337 | 114.5 | % | ||||
| Earnings per share | ||||||||||||
| Basic earnings per share | $ | 2.48 | $ | 1.17 | $ | 1.31 | 112.4 | % | ||||
| Diluted earnings per share | $ | 2.45 | $ | 1.16 | $ | 1.29 | 111.1 | % | ||||
| Average shares outstanding | 5,531,590 | 5,492,123 | 39,467 | 0.7 | % | |||||||
| Diluted average shares outstanding | 5,611,616 | 5,522,929 | 88,687 | 1.6 | % | |||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||||||||||
| Consolidated average balance sheet, interest, yield and rates | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||
| For the three months ended | |||||||||||||||||||||||||||
| September 30, 2023 | June 30, 2023 | September 30, 2020 | |||||||||||||||||||||||||
| Average Balance |
Interest | Average Yield/Rate |
Average Balance |
Interest | Average Yield/Rate |
Average Balance |
Interest | Average Yield/Rate |
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| Interest-Earnings Assets: | |||||||||||||||||||||||||||
| Deposits in other financial institutions | $ | 142,647 | $ | 60 | 0.17 | % | $ | 137,902 | $ | 40 | 0.12 | % | $ | 191,912 | $ | 51 | 0.11 | % | |||||||||
| Investment securities | 92,458 | 330 | 1.43 | % | 88,132 | 351 | 1.59 | % | 31,727 | 231 | 2.91 | % | |||||||||||||||
| Loans | 1,185,865 | 16,068 | 5.38 | % | 1,125,958 | 14,637 | 5.21 | % | 1,037,195 | 13,578 | 5.21 | % | |||||||||||||||
| Total interest-earning assets | 1,420,970 | 16,458 | 4.60 | % | 1,351,992 | 15,028 | 4.46 | % | 1,260,834 | 13,860 | 4.37 | % | |||||||||||||||
| Noninterest-earning assets | 21,308 | 18,217 | 10,529 | ||||||||||||||||||||||||
| Total Assets | $ | 1,442,278 | $ | 1,370,209 | $ | 1,271,363 | |||||||||||||||||||||
| Interest-Bearing Liabilities | |||||||||||||||||||||||||||
| Interest-bearing transaction accounts | $ | 68,618 | $ | 14 | 0.08 | % | $ | 65,283 | $ | 12 | 0.07 | % | $ | 59,624 | $ | 19 | 0.13 | % | |||||||||
| Money market | 493,289 | 245 | 0.20 | % | 424,371 | 231 | 0.22 | % | 402,286 | 349 | 0.35 | % | |||||||||||||||
| Savings deposits | 9,639 | 3 | 0.12 | % | 9,229 | 2 | 0.09 | % | 9,024 | 2 | 0.09 | % | |||||||||||||||
| Certificates of deposit | 68,761 | 147 | 0.85 | % | 75,537 | 164 | 0.87 | % | 97,444 | 337 | 1.38 | % | |||||||||||||||
| Total Interest-Bearing Deposits | 640,307 | 409 | 0.25 | % | 574,420 | 409 | 0.29 | % | 568,378 | 707 | 0.49 | % | |||||||||||||||
| FHLB advances | 14,783 | 60 | 1.61 | % | 41,153 | 748 | 7.29 | % | 100,924 | 384 | 1.51 | % | |||||||||||||||
| Other borrowings | 17,944 | 272 | 6.06 | % | 17,942 | 272 | 6.06 | % | 17,937 | 272 | 6.07 | % | |||||||||||||||
| Total Interest-Bearing Liabilities | 32,727 | 332 | 4.02 | % | 59,095 | 1,020 | 6.92 | % | 118,861 | 656 | 2.20 | % | |||||||||||||||
| Noninterest-bearing deposits | 636,042 | – | 0.00 | % | 609,932 | – | 0.00 | % | 467,845 | – | 0.00 | % | |||||||||||||||
| Total Funding Sources | 1,309,076 | 741 | 0.22 | % | 1,243,447 | 1,429 | 0.46 | % | 1,155,084 | 1,363 | 0.47 | % | |||||||||||||||
| Noninterest-bearing liabilities | 12,584 | 11,881 | 13,740 | ||||||||||||||||||||||||
| Shareholders’ equity | 120,618 | 114,881 | 102,539 | ||||||||||||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 1,442,278 | $ | 1,370,209 | $ | 1,271,363 | |||||||||||||||||||||
| Net interest spread | 4.38 | % | 4.00 | % | 3.90 | % | |||||||||||||||||||||
| Net interest income | $ | 15,717 | $ | 13,599 | $ | 12,497 | |||||||||||||||||||||
| Net interest margin | 4.39 | % | 4.03 | % | 3.94 | % | |||||||||||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | ||||||||||||||||||
| Consolidated average balance sheet, interest, yield and rates | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| For the nine months ended | ||||||||||||||||||
| September 30, 2023 | September 30, 2020 | |||||||||||||||||
| Average Balance |
Interest | Average Yield/Rate |
Average Balance |
Interest | Average Yield/Rate |
|||||||||||||
| Interest-Earnings Assets: | ||||||||||||||||||
| Deposits in other financial institutions | $ | 172,601 | $ | 158 | 0.12 | % | $ | 168,735 | $ | 446 | 0.35 | % | ||||||
| Investment securities | 80,061 | 986 | 1.65 | % | 41,820 | 883 | 2.82 | % | ||||||||||
| Loans | 1,119,400 | 44,865 | 5.36 | % | 975,915 | 39,999 | 5.47 | % | ||||||||||
| Total interest-earning assets | 1,372,062 | 46,009 | 4.48 | % | 1,186,470 | 41,328 | 4.65 | % | ||||||||||
| Noninterest-earning assets | 20,023 | 31,422 | ||||||||||||||||
| Total Assets | $ | 1,392,085 | $ | 1,217,892 | ||||||||||||||
| Interest-Bearing Liabilities | ||||||||||||||||||
| Interest-bearing transaction accounts | $ | 64,020 | $ | 36 | 0.08 | % | $ | 72,156 | $ | 210 | 0.39 | % | ||||||
| Money market | 449,920 | 713 | 0.21 | % | 395,803 | 1,800 | 0.61 | % | ||||||||||
| Savings deposits | 9,215 | 7 | 0.10 | % | 9,033 | 10 | 0.15 | % | ||||||||||
| Certificates of deposit | 81,490 | 579 | 0.95 | % | 112,839 | 1,754 | 2.08 | % | ||||||||||
| Total Interest-Bearing Deposits | 604,645 | 1,335 | 0.30 | % | 589,831 | 3,774 | 0.85 | % | ||||||||||
| FHLB advances | 42,784 | 1,756 | 5.49 | % | 88,248 | 1,088 | 1.65 | % | ||||||||||
| Other borrowings | 17,942 | 815 | 6.07 | % | 17,967 | 815 | 6.05 | % | ||||||||||
| Total Interest-Bearing Liabilities | 60,726 | 2,571 | 5.66 | % | 106,215 | 1,903 | 2.39 | % | ||||||||||
| Noninterest-bearing deposits | 597,992 | – | 0.00 | % | 408,515 | – | 0.00 | % | ||||||||||
| Total Funding Sources | 1,263,363 | 3,906 | 0.41 | % | 1,104,561 | 5,677 | 0.69 | % | ||||||||||
| Noninterest-bearing liabilities | 13,421 | 13,244 | ||||||||||||||||
| Shareholders’ equity | 115,301 | 100,087 | ||||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 1,392,085 | $ | 1,217,892 | ||||||||||||||
| Net interest spread | 4.07 | % | 3.97 | % | ||||||||||||||
| Net interest income | $ | 42,103 | $ | 35,651 | ||||||||||||||
| Net interest margin | 4.10 | % | 4.01 | % | ||||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||
| Condensed Balance Sheets | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||||||
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2020 | Sep 30, 2020 | |||||||||||||||
| Assets | |||||||||||||||||||
| Cash and due from banks | $ | 138,553 | $ | 92,108 | $ | 164,750 | $ | 276,225 | $ | 155,346 | |||||||||
| Interest-bearing time deposits with other institutions | 5,760 | 5,760 | 5,760 | 5,760 | 5,760 | ||||||||||||||
| Investment securities | 93,099 | 88,755 | 81,429 | 26,086 | 26,525 | ||||||||||||||
| Loans held for sale | 35,448 | 19,625 | 12,430 | 9,687 | 8,402 | ||||||||||||||
| Loans (excluding SBA PPP loans) | 1,117,983 | 1,053,938 | 948,260 | 936,532 | 880,174 | ||||||||||||||
| SBA PPP loans | 74,152 | 110,673 | 133,740 | 62,338 | 154,210 | ||||||||||||||
| Allowance for loan losses | (16,141 | ) | (15,708 | ) | (14,561 | ) | (14,262 | ) | (12,682 | ) | |||||||||
| Net loans | 1,175,994 | 1,148,903 | 1,067,439 | 984,608 | 1,021,702 | ||||||||||||||
| Right of use asset | 4,115 | 5,185 | 5,589 | 5,990 | 5,186 | ||||||||||||||
| Premises and equipment, net | 2,459 | 2,578 | 2,582 | 2,649 | 2,859 | ||||||||||||||
| Other assets and interest receivable | 19,254 | 19,856 | 19,738 | 18,735 | 18,414 | ||||||||||||||
| Total assets | $ | 1,474,682 | $ | 1,382,770 | $ | 1,359,717 | $ | 1,329,740 | $ | 1,244,194 | |||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||||||||
| Liabilities | |||||||||||||||||||
| Noninterest Bearing | $ | 646,233 | $ | 603,914 | $ | 579,318 | $ | 531,732 | $ | 471,324 | |||||||||
| Interest Bearing | 667,012 | 601,530 | 584,341 | 581,216 | 557,455 | ||||||||||||||
| Total Deposits | 1,313,245 | 1,205,444 | 1,163,659 | 1,112,948 | 1,028,779 | ||||||||||||||
| Borrowings | 27,945 | 47,943 | 67,941 | 92,939 | 97,938 | ||||||||||||||
| Accrued interest payable and other liabilities | 11,613 | 13,059 | 16,507 | 16,100 | 14,227 | ||||||||||||||
| Total liabilities | 1,352,803 | 1,266,446 | 1,248,107 | 1,221,987 | 1,140,944 | ||||||||||||||
| Shareholders’ equity | |||||||||||||||||||
| Common stock | 70,470 | 70,405 | 70,053 | 69,557 | 69,540 | ||||||||||||||
| Additional paid-in capital | 3,465 | 3,179 | 3,317 | 3,496 | 3,230 | ||||||||||||||
| Retained earnings | 47,845 | 42,810 | 38,510 | 33,904 | 29,521 | ||||||||||||||
| Accumulated other comprehensive (loss) income | 99 | (70 | ) | (270 | ) | 796 | 959 | ||||||||||||
| Total shareholders’ equity | 121,879 | 116,324 | 111,610 | 107,753 | 103,250 | ||||||||||||||
| Total liabilities and shareholders’ equity | $ | 1,474,682 | $ | 1,382,770 | $ | 1,359,717 | $ | 1,329,740 | $ | 1,244,194 | |||||||||
| Book value per common share | $ | 21.70 | $ | 20.71 | $ | 19.87 | $ | 19.24 | $ | 18.50 | |||||||||
| Tangible book value per common share | $ | 21.27 | $ | 20.33 | $ | 19.55 | $ | 18.95 | $ | 18.26 | |||||||||
| Shares outstanding | 5,617,273 | 5,617,020 | 5,618,324 | 5,600,508 | 5,580,456 | ||||||||||||||
| Regulatory Capital Ratios (PBAM) 1 | |||||||||||||||||||
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2020 | Sep 30, 2020 | |||||||||||||||
| Tier 1 leverage ratio | 8.19 | % | 8.36 | % | 8.07 | % | 8.52 | % | 7.92 | % | |||||||||
| Tier 1 risk-based capital ratio | 10.64 | % | 10.74 | % | 11.35 | % | 11.20 | % | 11.35 | % | |||||||||
| Common equity Tier 1 ratio | 10.64 | % | 10.74 | % | 11.35 | % | 11.20 | % | 11.35 | % | |||||||||
| Total risk-based capital ratio | 13.48 | % | 13.68 | % | 14.46 | % | 14.36 | % | 14.63 | % | |||||||||
| Tangible equity / tangible assets | 8.12 | % | 8.28 | % | 8.09 | % | 7.99 | % | 8.20 | % | |||||||||
| 1 Preliminary ratios for September 30, 2023 | |||||||||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||
| Condensed Statements of Income | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||||||
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2020 | Sep 30, 2020 | |||||||||||||||
| Interest income | $ | 16,458 | $ | 15,028 | $ | 14,523 | $ | 15,826 | $ | 13,860 | |||||||||
| Interest expense | 741 | 1,429 | 1,737 | 1,209 | 1,363 | ||||||||||||||
| Net interest income | 15,717 | 13,599 | 12,786 | 14,617 | 12,497 | ||||||||||||||
| Provision for loan losses | 433 | 1,146 | 300 | 1,579 | 1,582 | ||||||||||||||
| Net interest income after provision for loan losses | 15,284 | 12,453 | 12,486 | 13,038 | 10,915 | ||||||||||||||
| Noninterest income | 2,389 | 2,805 | 1,871 | 1,636 | 936 | ||||||||||||||
| Salary and employee benefits | 6,595 | 5,966 | 4,915 | 5,293 | 5,365 | ||||||||||||||
| Occupancy and equipment | 1,484 | 820 | 810 | 774 | 864 | ||||||||||||||
| Data processing | 799 | 690 | 635 | 624 | 643 | ||||||||||||||
| Professional services | 552 | 791 | 650 | 949 | 514 | ||||||||||||||
| Other expenses | 1,034 | 891 | 763 | 780 | 846 | ||||||||||||||
| Total noninterest expense | 10,464 | 9,158 | 7,773 | 8,420 | 8,232 | ||||||||||||||
| Income before provision for income taxes | 7,209 | 6,100 | 6,584 | 6,254 | 3,619 | ||||||||||||||
| Income taxes | 2,158 | 1,806 | 1,977 | 1,874 | 1,084 | ||||||||||||||
| Net income | $ | 5,051 | $ | 4,294 | $ | 4,607 | $ | 4,380 | $ | 2,535 | |||||||||
| Net income available to common shareholders | $ | 4,984 | $ | 4,231 | $ | 4,529 | $ | 4,307 | $ | 2,499 | |||||||||
| Earnings per share | |||||||||||||||||||
| Basic earnings per share | $ | 0.90 | $ | 0.76 | $ | 0.82 | $ | 0.78 | $ | 0.45 | |||||||||
| Diluted earnings per share | $ | 0.89 | $ | 0.75 | $ | 0.81 | $ | 0.78 | $ | 0.45 | |||||||||
| Average shares outstanding | 5,543,403 | 5,536,111 | 5,514,887 | 5,501,272 | 5,499,970 | ||||||||||||||
| Diluted average shares outstanding | 5,629,900 | 5,622,075 | 5,579,477 | 5,540,232 | 5,516,013 | ||||||||||||||
| Performance Ratios | |||||||||||||||||||
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2020 | Sep 30, 2020 | |||||||||||||||
| ROAA | 1.39 | % | 1.26 | % | 1.37 | % | 1.41 | % | 0.79 | % | |||||||||
| ROAE | 16.61 | % | 14.99 | % | 16.94 | % | 16.30 | % | 9.84 | % | |||||||||
| ROTE | 16.88 | % | 15.25 | % | 17.19 | % | 16.54 | % | 9.96 | % | |||||||||
| Net interest margin | 4.39 | % | 4.03 | % | 3.89 | % | 4.74 | % | 3.94 | % | |||||||||
| Net interest spread | 4.38 | % | 4.00 | % | 3.85 | % | 4.71 | % | 3.90 | % | |||||||||
| Efficiency ratio | 57.79 | % | 55.83 | % | 53.03 | % | 51.81 | % | 61.28 | % | |||||||||
| Noninterest expense / average assets | 2.88 | % | 2.68 | % | 2.31 | % | 2.71 | % | 2.58 | % | |||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Selected Quarterly Average Balances | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2020 | Sep 30, 2020 | |||||||||||||||
| Total assets | $ | 1,442,278 | $ | 1,370,209 | $ | 1,362,887 | $ | 1,234,611 | $ | 1,271,363 | |||||||||
| Earning assets | $ | 1,420,970 | $ | 1,351,992 | $ | 1,331,448 | $ | 1,225,806 | $ | 1,260,834 | |||||||||
| Total loans | $ | 1,185,865 | $ | 1,125,958 | $ | 1,044,828 | $ | 1,005,712 | $ | 1,037,195 | |||||||||
| Total deposits | $ | 1,276,349 | $ | 1,184,352 | $ | 1,145,776 | $ | 1,017,389 | $ | 1,036,223 | |||||||||
| Total equity | $ | 120,618 | $ | 114,881 | $ | 110,284 | $ | 106,874 | $ | 102,539 | |||||||||
| Loan Balances by Type | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2020 | Sep 30, 2020 | |||||||||||||||
| Real estate – investor owned | $ | 307,469 | $ | 293,461 | $ | 247,928 | $ | 243,745 | $ | 231,787 | |||||||||
| Real estate – owner occupied | 329,985 | 313,579 | 284,494 | 268,193 | 259,375 | ||||||||||||||
| Real estate – multifamily | 82,460 | 72,790 | 75,361 | 69,187 | 64,268 | ||||||||||||||
| Real estate – single family | 81,239 | 90,223 | 75,353 | 67,522 | 59,994 | ||||||||||||||
| Commercial business | 274,708 | 244,493 | 227,635 | 251,711 | 228,914 | ||||||||||||||
| SBA PPP loans | 74,152 | 110,673 | 133,740 | 62,338 | 154,210 | ||||||||||||||
| Land and construction | 34,996 | 32,413 | 30,103 | 29,377 | 28,277 | ||||||||||||||
| Consumer | 7,126 | 6,979 | 7,386 | 6,797 | 7,559 | ||||||||||||||
| Total loans held for investment | 1,192,135 | 1,164,611 | 1,082,000 | 998,870 | 1,034,384 | ||||||||||||||
| Loans held for sale | 35,448 | 19,625 | 12,430 | 9,687 | 8,402 | ||||||||||||||
| Total loans, including loans held for sale | 1,227,583 | 1,184,236 | 1,094,430 | 1,008,557 | 1,042,786 | ||||||||||||||
| Allowance for loan losses | (16,141 | ) | (15,708 | ) | (14,561 | ) | (14,262 | ) | (12,682 | ) | |||||||||
| Net loans | $ | 1,211,442 | $ | 1,168,528 | $ | 1,079,869 | $ | 994,295 | $ | 1,030,104 | |||||||||
| Deposits by Type | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2020 | Sep 30, 2020 | |||||||||||||||
| Non interest bearing DDA | $ | 646,233 | $ | 603,914 | $ | 579,318 | $ | 531,732 | $ | 471,324 | |||||||||
| Interest bearing DDA | 68,056 | 70,320 | 59,399 | 60,606 | 56,837 | ||||||||||||||
| Savings & MMA | 530,782 | 463,165 | 423,957 | 424,540 | 396,233 | ||||||||||||||
| Retail CD | 5,633 | 5,827 | 5,855 | 7,770 | 8,401 | ||||||||||||||
| Jumbo CD | 62,541 | 62,218 | 95,130 | 88,300 | 95,984 | ||||||||||||||
| Total deposits | $ | 1,313,245 | $ | 1,205,444 | $ | 1,163,659 | $ | 1,112,948 | $ | 1,028,779 | |||||||||
| Asset Quality | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2020 | Sep 30, 2020 | |||||||||||||||
| Total loans, including loans held for sale | $ | 1,227,583 | $ | 1,184,236 | $ | 1,094,430 | $ | 1,008,557 | $ | 1,042,786 | |||||||||
| 30-89 day past due loans | $ | 200 | $ | – | $ | – | $ | – | $ | – | |||||||||
| 90+ day past due loans | $ | – | $ | – | $ | – | $ | – | $ | – | |||||||||
| Nonaccrual loans | $ | 1,494 | $ | 1,540 | $ | 1,609 | $ | 1,609 | $ | 1,743 | |||||||||
| NPAs / Assets | 0.10 | % | 0.11 | % | 0.12 | % | 0.12 | % | 0.14 | % | |||||||||
| NPLs / loans & OREO | 0.12 | % | 0.13 | % | 0.15 | % | 0.16 | % | 0.17 | % | |||||||||
| Net quarterly charge-offs | $ | – | $ | – | $ | – | $ | – | $ | – | |||||||||
| Net charge-offs/avg loans (annualized) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | |||||||||
| Allowance for loan losses to loans | 1.31 | % | 1.33 | % | 1.33 | % | 1.41 | % | 1.22 | % | |||||||||
| Allowance for loan losses to nonaccrual loans | 1080.39 | % | 1020.00 | % | 904.97 | % | 886.39 | % | 727.60 | % | |||||||||
