- Net income for the quarter was $4.3 million, or $0.75 per diluted share
- Net interest margin for the quarter was 4.03% compared with 3.89% in the prior quarter. The net interest margin excluding SBA PPP loans was 4.14% and 3.75% in the prior quarter
- Net interest income up 6.4% for the quarter and 17% year-over-year
- Non-interest income up 50% for the quarter and 104% year-over-year
- Total loans were $1.2 billion, up 7.6% for the quarter and 14.3% year-over-year
- Allowance for Loan Losses to total loans is 1.33% and 1.46% excluding PPP loans
- Total deposits were $1.2 billion, up 3.6% for the quarter and 16.3% year over year
- Return on Average Assets was 1.26% and Return on Average Equity was 14.99%
LA JOLLA, Calif., July 21, 2021 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM), (“Company”) and CalPrivate Bank (“Bank”) announced unaudited financial results for the second quarter ending June 30, 2021. The Company reported net income of $4.3 million, or $0.75 per diluted share, for the second quarter of 2021 compared to $4.6 million, or $0.81 per diluted share for the first quarter of 2021. Net income for the six months ending June 30, 2021, was $8.9 million, or $1.56 per diluted share, compared to $4.0 million or $0.71 per diluted share for the same period in 2020.
Rick Sowers, President and CEO of the Company and the Bank stated, “Our second quarter results are a reflection of executing on our core business plan. Our Team continues to aggressively focus on our profitability and continued growth of the franchise in all our business lines and markets. The quarter reflected record loan production and strong gain on sale of SBA loans which added higher non-interest income. We are pleased with the results and have tremendous confidence in our Team and their ability to execute on behalf of our Clients.”
Sowers continued, “We continue to make progress in improving our operating leverage while adding resources to continue to scale and grow our market share. As part of our strategic plan, we began the implementation of new technologies including the nCino Lending Platform that will drive efficiency and allow us to continue to provide a level of service to our Clients that is second to none.”
Net Interest Income
Net interest income for the second quarter totaled $13.6 million representing an increase of $813 thousand, or 6.4% compared to the first quarter of 2021 and an increase of $2.0 million or 17% increase for the same period in 2020. The increase in net interest income for the quarter is due to a $505 thousand increase in interest income and a $308 thousand decrease in funding costs. The increase in loan income is due to a $916 thousand increase in non-PPP loan revenue due to increased average loan balances offset by a $438 thousand decrease in revenue from SBA PPP loans due to less forgiveness recognized in the second quarter. The decrease in funding costs is due to a $108 thousand decrease in deposit costs and $200 thousand decrease in borrowing expense as more expensive FHLB borrowings were prepaid.
Net interest income for the year to date totaled $26.4 million representing an increase of $3.2 million, or 14% compared to the same period in 2020. The increase is due to increased average loan balances, increased SBA PPP loan income and lower deposit costs, partially offset by prepayment penalties in 2021 totaling $1.2 million as a result of prepaying higher priced FHLB term advances.
Net Interest Margin
The net interest margin for the second quarter of 2021 was 4.03% (4.14% excluding PPP loans) compared with 3.89% (3.75% excluding PPP loans) for the first quarter of 2021 and 3.66% (3.77% excluding PPP loans) for the same period in 2020. The 14 bp increase in the net interest margin for the quarter was due to increased core loan yields and lower funding costs associated for the quarter. The yield on earning assets for the second quarter was 4.46% compared with 4.42% in the first quarter and 4.29% for the same period in 2020. The yield on loans for the quarter decreased to 5.21% (5.50% excluding PPP loans) compared to 5.50% (5.48% excluding PPP loans) in the first quarter and 5.30% (5.68% excluding PPP loans) in the second quarter of 2020. The cost of total funding sources was 0.46% for the quarter compared with 0.57% in the first quarter and 0.69% for the same period in 2020. During the quarter, the Company elected to prepay $10 million in FHLB term advances and recorded a $535 thousand prepayment fee resulting in a negative 16 bp impact on the net interest margin for the second quarter.
The net interest margin for the six months ending June 30, 2021 was 3.95% (3.93% excluding PPP) compared with 4.03% (4.11% excluding PPP) for the same period in 2020. The decrease 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 six months of the year, the Company prepaid FHLB term advances and recorded $1.2 million in prepayment fees resulting in a negative 17 bp impact on the net interest margin.
Non-Interest Income
Non-interest income was $2.8 million for the second quarter of 2021, representing a $934 thousand or 50% increase compared to the first quarter of 2021 and a $1.4 million or 103.6% increase compared to the same period in 2020. The increase in non-interest income for the quarter is primarily due to $850 thousand in additional revenue from SBA loans sales recorded in quarter. The increase in non-interest income compared to a year ago is primarily due to $2.1 million in additional gains from the sale of SBA loans partially offset by a $751 thousand decrease in investment gains due to no investment security sales in the second quarter of this year. SBA loan sales for the second quarter were $19.4 million with a 15.2% trade premium compared with $13.2 million with a 14.1% trade premium in the first quarter of 2021 and $3.4 million with a 10.4% trade premium in the second quarter of 2020.
Non-interest income for the six months ending June 30, 2021 was $4.7 million compared with $2.5 million for the same period in 2020. The increase in non-interest income was primarily due to increased revenue from the sale of SBA loans partially offset by no investment securities gains in the current year. SBA loans sales for the first six months were $32.6 million with a 14.7% trade premium compared to $14.7 million with a 9.9% trade premium in 2020.
Non-Interest Expense
Non-interest expense was $9.2 million for the second quarter of 2021 representing a $1.4 million or 17.8% increase compared to the first quarter of 2021 and a $452 thousand or 5.2% increase, compared to the same period in 2020. The increase in expenses for the quarter was primarily due to increases in salaries and benefits, professional fees and other expense. The increase in compensation and benefits is due to the full quarter impact of merit increases, additions to staff, one additional payroll cycle in the quarter and a decrease in deferred labor costs. The increase in professional fees was due to increases in legal and audit expense. The increase in other expense is primarily due to increases in marketing and business development expenses related to our emphasis on resuming in person marketing efforts. The increase in expenses compared to the same quarter in 2020 is due in increases in compensation and benefits, professional fees, and data processing.
Non-interest expense for the six months ending June 30, 2021 was $16.9 million compared with $17.4 million for the same period in 2020. The $436 thousand decrease was due to lower compensation and benefits and occupancy costs partially offset by increased data processing expense. The decrease in compensation and benefits is partially due to lower salary expense, greater deferred labor cost and lower vacation expense.
Balance Sheet
At June 30, 2021, the Company reported total assets of $1.4 billion representing an increase of $23 million or 1.7% compared to the first quarter of 2021 and an increase of $108.8 million or 8.5% compared to June 30, 2020. The increase in assets for the quarter was due to increases in loans and investment securities offset by a decrease in cash and due from banks. Loans increased $82.6 million or 7.6% in the quarter due to a $105.7 million increase in non-SBA PPP loans offset by a $23.1 million decrease in SBA-PPP loans. Total deposits were $1.2 billion representing an increase of $41.8 million, or 3.6%, compared to the first quarter of 2021 and an increase of $168.8 million, or 16.3%, compared to June 30, 2020. Total non-interest-bearing deposits represented 50% of total deposits at June 30, 2021 compared with 50% at March 31, 2021 and 44% at June 30, 2020. During the quarter, total FHLB advances decreased $20 million due to contractual maturities and the decision to prepay longer-term FHLB advances with a prepayment cost of $535 thousand.
Asset Quality and Loan Deferrals
The Allowance for Loan Losses increased $1.2 million to $15.7 million in the quarter with a resulting coverage ratio of 1.33% of total loans outstanding, including PPP loans, compared to $14.6 million or 1.33% at the first quarter of 2021 and $11.1 million or 1.08% at the second quarter of 2020. The increase in the Allowance for Loan Losses was primarily due to loan growth and qualitative factors related to the general economic outlook in the markets we serve. The coverage ratio at June 30, 2021, excluding the impact of PPP loans, decreased to 1.46% from 1.52% in the prior quarter.
As of June 30, 2021, there were no doubtful credits or charge offs, no past due loans and Classified assets totaled $11 million. Classified assets included one real estate loan totaling $1.5 million on non-accrual and the remaining $9.5 million consisted of ten loans with three borrowers related to the impacts of COVID-19.
At June 30, 2021, two loans totaling $1.9 million are on COVID-19 related deferrals. No new deferrals were granted during the quarter and of the loans on deferral one loan for $1.1 million is real estate secured with an average LTV of 51% and the other loan for $750 thousand is unsecured. The remaining loans that were granted payment deferrals have resumed their contractual payments.
“The record last twelve months EPS of $2.81 reflects the resilience of CalPrivate Bank’s mix of revenue streams. Strong loan growth and SBA activities, fees on PPP loan forgiveness, and the strategic management of funding sources, including increased non-interest deposit balances, is a result of the Team’s commitment to our relationship business model based on distinctly superior client service and solutions which continue differentiating the Bank in the markets we serve,” said Selwyn Isakow Chairman of the Board of the Company and Bank.
Isakow added, “The Bank’s outstanding client base together with solid credit underwriting and loan portfolio processes and relationship managers, resulted in the decline of loans on deferrals and zero delinquent loans at the end of the quarter. The Bank remains financially strong and well-positioned for sustainable future growth within clearly defined risk management parameters.”
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 Contact
Rick Sowers
President and CEO
Private Bancorp of America, Inc.
(424) 303-4894
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. | ||||||||||||||||||||||||
| CONSOLIDATED BALANCE SHEET | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
| June 30, 2021 | March 31, 2021 | Dollar change | Percentage change | June 30, 2020 | Dollar change | Percentage change | ||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Cash and due from banks | $ | 12,783 | $ | 8,922 | $ | 3,861 | 43.3 | % | $ | 18,431 | $ | (5,648 | ) | -30.6 | % | |||||||||
| Interest-bearing deposits in other financial institutions | 13,969 | 4,187 | 9,782 | 233.6 | % | 1,200 | 12,769 | 1064.1 | % | |||||||||||||||
| Interest-bearing deposits at Federal Reserve Bank | 65,356 | 151,641 | (86,285 | ) | -56.9 | % | 179,615 | (114,259 | ) | -63.6 | % | |||||||||||||
| Total cash and due from banks | 92,108 | 164,750 | (72,642 | ) | -44.1 | % | 199,246 | (107,138 | ) | -53.8 | % | |||||||||||||
| Interest-bearing time deposits with other institutions | 5,760 | 5,760 | - | 0.0 | % | 5,758 | 2 | 0.0 | % | |||||||||||||||
| Investment securities available for sale | 88,755 | 81,429 | 7,326 | 9.0 | % | 27,664 | 61,091 | 220.8 | % | |||||||||||||||
| Loan held for sale | 19,625 | 12,430 | 7,195 | 57.9 | % | 7,409 | 12,216 | 164.9 | % | |||||||||||||||
| Loans, net of deferred fees and costs | 1,164,611 | 1,082,000 | 82,611 | 7.6 | % | 1,019,100 | 145,511 | 14.3 | % | |||||||||||||||
| Allowance for loan losses | (15,708 | ) | (14,561 | ) | (1,147 | ) | 7.9 | % | (11,100 | ) | (4,608 | ) | 41.5 | % | ||||||||||
| Net loans | 1,148,903 | 1,067,439 | 81,464 | 7.6 | % | 1,008,000 | 140,903 | 14.0 | % | |||||||||||||||
| Federal Home Loan Bank stock, at cost | 4,909 | 4,602 | 307 | 6.7 | % | 4,602 | 307 | 6.7 | % | |||||||||||||||
| Right of use asset | 5,185 | 5,589 | (404 | ) | -7.2 | % | 5,632 | (447 | ) | -7.9 | % | |||||||||||||
| Premises and equipment, net | 2,578 | 2,582 | (4 | ) | -0.2 | % | 3,055 | (477 | ) | -15.6 | % | |||||||||||||
| Other intangible assets | 2,123 | 1,789 | 334 | 18.7 | % | 1,281 | 842 | 65.7 | % | |||||||||||||||
| Deferred tax asset | 7,012 | 5,982 | 1,030 | 17.2 | % | 4,141 | 2,871 | 69.3 | % | |||||||||||||||
| Accrued interest receivable | 3,501 | 3,659 | (158 | ) | -4.3 | % | 3,556 | (55 | ) | -1.5 | % | |||||||||||||
| Other assets | 2,311 | 3,706 | (1,395 | ) | -37.6 | % | 3,668 | (1,357 | ) | -37.0 | % | |||||||||||||
| Total assets | $ | 1,382,770 | $ | 1,359,717 | $ | 23,053 | 1.7 | % | $ | 1,274,012 | $ | 108,758 | 8.5 | % | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Noninterest bearing | $ | 603,914 | $ | 579,318 | $ | 24,596 | 4.2 | % | $ | 452,155 | $ | 151,759 | 33.6 | % | ||||||||||
| Interest Bearing | 601,530 | 584,341 | 17,189 | 2.9 | % | 584,451 | 17,079 | 2.9 | % | |||||||||||||||
| Total deposits | 1,205,444 | 1,163,659 | 41,785 | 3.6 | % | 1,036,606 | 168,838 | 16.3 | % | |||||||||||||||
| FHLB borrowings | 30,000 | 50,000 | (20,000 | ) | -40.0 | % | 105,000 | (75,000 | ) | -71.4 | % | |||||||||||||
| Other borrowings | 17,943 | 17,941 | 2 | 0.0 | % | 17,936 | 7 | 0.0 | % | |||||||||||||||
| Accrued interest payable and other liabilities | 13,059 | 16,507 | (3,448 | ) | -20.9 | % | 14,097 | (1,038 | ) | -7.4 | % | |||||||||||||
| Total liabilities | 1,266,446 | 1,248,107 | 18,339 | 1.5 | % | 1,173,639 | 92,807 | 7.9 | % | |||||||||||||||
| Shareholders' equity | ||||||||||||||||||||||||
| Common stock | 70,405 | 70,053 | 352 | 0.5 | % | 69,512 | 893 | 1.3 | % | |||||||||||||||
| Additional paid-in capital | 3,179 | 3,317 | (138 | ) | -4.2 | % | 3,002 | 177 | 5.9 | % | ||||||||||||||
| Retained earnings | 42,810 | 38,510 | 4,300 | 11.2 | % | 26,984 | 15,826 | 58.6 | % | |||||||||||||||
| Accumulated other comprehensive (loss) income | (70 | ) | (270 | ) | 200 | -74.1 | % | 875 | (945 | ) | -108.0 | % | ||||||||||||
| Total stockholders' equity | 116,324 | 111,610 | 4,714 | 4.2 | % | 100,373 | 15,951 | 15.9 | % | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,382,770 | $ | 1,359,717 | $ | 23,053 | 1.7 | % | $ | 1,274,012 | $ | 108,758 | 8.5 | % | ||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||||||||
| For the three months ended | |||||||||||||||||||||
| June 30, 2021 | March 31, 2021 | Dollar change | Percentage change | June 30, 2020 | Dollar change | Percentage change | |||||||||||||||
| Interest Income | |||||||||||||||||||||
| Loans | $ | 14,637 | $ | 14,159 | $ | 478 | 3.4 | % | $ | 13,293 | $ | 1,344 | 10.1 | % | |||||||
| Investment securities | 351 | 306 | 45 | 14.7 | % | 251 | 100 | 39.8 | % | ||||||||||||
| Deposits in other financial institutions | 40 | 58 | (18 | ) | -31.0 | % | 91 | (51 | ) | -56.0 | % | ||||||||||
| Total interest income | 15,028 | 14,523 | 505 | 3.5 | % | 13,635 | 1,393 | 10.2 | % | ||||||||||||
| Interest Expense | |||||||||||||||||||||
| Deposits | 409 | 517 | (108 | ) | -20.9 | % | 1,356 | (947 | ) | -69.8 | % | ||||||||||
| Borrowings | 1,020 | 1,220 | (200 | ) | -16.4 | % | 659 | 361 | 54.8 | % | |||||||||||
| Total interest expense | 1,429 | 1,737 | (308 | ) | -17.7 | % | 2,015 | (586 | ) | -29.1 | % | ||||||||||
| Net interest income | 13,599 | 12,786 | 813 | 6.4 | % | 11,620 | 1,979 | 17.0 | % | ||||||||||||
| Provision for loan losses | 1,146 | 300 | 846 | 282.0 | % | 1,511 | (365 | ) | -24.2 | % | |||||||||||
| Net interest income after provision for loan losses | 12,453 | 12,486 | (33 | ) | -0.3 | % | 10,109 | 2,344 | 23.2 | % | |||||||||||
| Noninterest income: | |||||||||||||||||||||
| Service charges on deposit accounts | 231 | 224 | 7 | 3.1 | % | 143 | 88 | 61.5 | % | ||||||||||||
| Net gain on sale of loans | 2,326 | 1,476 | 850 | 57.6 | % | 210 | 2,116 | 1007.6 | % | ||||||||||||
| Gain on sale of investment securities | - | - | - | 0.0 | % | 751 | (751 | ) | -100.0 | % | |||||||||||
| Other noninterest income | 248 | 171 | 77 | 45.0 | % | 274 | (26 | ) | -9.5 | % | |||||||||||
| Total noninterest income | 2,805 | 1,871 | 934 | 49.9 | % | 1,378 | 1,427 | 103.6 | % | ||||||||||||
| Noninterest expense: | |||||||||||||||||||||
| Salary and employee benefits | 5,966 | 4,915 | 1,051 | 21.4 | % | 5,790 | 176 | 3.0 | % | ||||||||||||
| Occupancy and equipment | 820 | 810 | 10 | 1.2 | % | 900 | (80 | ) | -8.9 | % | |||||||||||
| Data processing | 690 | 635 | 55 | 8.7 | % | 561 | 129 | 23.0 | % | ||||||||||||
| Professional services | 791 | 650 | 141 | 21.7 | % | 628 | 163 | 26.0 | % | ||||||||||||
| Other expenses | 891 | 763 | 128 | 16.8 | % | 827 | 64 | 7.7 | % | ||||||||||||
| Total noninterest expense | 9,158 | 7,773 | 1,385 | 17.8 | % | 8,706 | 452 | 5.2 | % | ||||||||||||
| Income before provision for income taxes | 6,100 | 6,584 | (484 | ) | -7.4 | % | 2,781 | 3,319 | 119.3 | % | |||||||||||
| Provision for income taxes | 1,806 | 1,977 | (171 | ) | -8.6 | % | 711 | 1,095 | 154.0 | % | |||||||||||
| Net income | $ | 4,294 | $ | 4,607 | $ | (313 | ) | -6.8 | % | $ | 2,070 | $ | 2,224 | 107.4 | % | ||||||
| Net income available to common shareholders | $ | 4,231 | $ | 4,529 | $ | (298 | ) | -6.6 | % | $ | 2,038 | $ | 2,193 | 107.6 | % | ||||||
| Earnings per share | |||||||||||||||||||||
| Basic earnings per share | $ | 0.76 | $ | 0.82 | $ | (0.06 | ) | -7.3 | % | $ | 0.37 | $ | 0.39 | 105.4 | % | ||||||
| Diluted earnings per share | $ | 0.75 | $ | 0.81 | $ | (0.06 | ) | -7.4 | % | $ | 0.37 | $ | 0.38 | 102.7 | % | ||||||
| Average shares outstanding | 5,536,111 | 5,514,887 | 21,224 | 0.4 | % | 5,435,155 | 100,956 | 1.9 | % | ||||||||||||
| Diluted average shares outstanding | 5,622,075 | 5,579,477 | 42,598 | 0.8 | % | 5,453,597 | 168,478 | 3.1 | % | ||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | ||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
| (Unaudited) | ||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||
| For the six months ended | ||||||||||||
| June 30, 2021 | June 30, 2020 | Dollar change | Percentage change | |||||||||
| Interest Income | ||||||||||||
| Loans | $ | 28,796 | $ | 26,421 | $ | 2,375 | 9.0 | % | ||||
| Investment securities | 656 | 652 | 4 | 0.6 | % | |||||||
| Deposits in other financial institutions | 99 | 395 | (296 | ) | -74.9 | % | ||||||
| Total interest income | 29,551 | 27,468 | 2,083 | 7.6 | % | |||||||
| Interest Expense | ||||||||||||
| Deposits | 926 | 3,066 | (2,140 | ) | -69.8 | % | ||||||
| Borrowings | 2,239 | 1,248 | 991 | 79.4 | % | |||||||
| Total interest expense | 3,165 | 4,314 | (1,149 | ) | -26.6 | % | ||||||
| Net interest income | 26,386 | 23,154 | 3,232 | 14.0 | % | |||||||
| Provision for loan losses | 1,446 | 2,508 | (1,062 | ) | -42.3 | % | ||||||
| Net interest income after provision for loan losses | 24,940 | 20,646 | 4,294 | 20.8 | % | |||||||
| Noninterest income: | ||||||||||||
| Service charges on deposit accounts | 454 | 317 | 137 | 43.2 | % | |||||||
| Net gain on sale of loans | 3,802 | 889 | 2,913 | 327.7 | % | |||||||
| Gain on sale of investment securities | - | 751 | (751 | ) | -100.0 | % | ||||||
| Other noninterest income | 420 | 568 | (148 | ) | -26.1 | % | ||||||
| Total noninterest income | 4,676 | 2,525 | 2,151 | 85.2 | % | |||||||
| Noninterest expense: | ||||||||||||
| Salary and employee benefits | 10,881 | 11,343 | (462 | ) | -4.1 | % | ||||||
| Occupancy and equipment | 1,630 | 1,784 | (154 | ) | -8.6 | % | ||||||
| Data processing | 1,326 | 1,079 | 247 | 22.9 | % | |||||||
| Professional services | 1,441 | 1,487 | (46 | ) | -3.1 | % | ||||||
| Other expenses | 1,654 | 1,675 | (21 | ) | -1.3 | % | ||||||
| Total noninterest expense | 16,932 | 17,368 | (436 | ) | -2.5 | % | ||||||
| Income before provision for income taxes | 12,684 | 5,803 | 6,881 | 118.6 | % | |||||||
| Provision for income tax | 3,784 | 1,827 | 1,957 | 107.1 | % | |||||||
| Net income | $ | 8,900 | $ | 3,976 | $ | 4,924 | 123.8 | % | ||||
| Net income available to common shareholders | $ | 8,761 | $ | 3,909 | $ | 4,852 | 124.1 | % | ||||
| Earnings per share | ||||||||||||
| Basic earnings per share | $ | 1.59 | $ | 0.71 | $ | 0.88 | 123.9 | % | ||||
| Diluted earnings per share | $ | 1.56 | $ | 0.71 | $ | 0.85 | 119.7 | % | ||||
| Average shares outstanding | 5,525,557 | 5,488,160 | 37,397 | 0.7 | % | |||||||
| Diluted average shares outstanding | 5,601,705 | 5,530,697 | 71,008 | 1.3 | % | |||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||||||||||
| Consolidated average balance sheet, interest, yield and rates | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||
| For the three months ended | |||||||||||||||||||||||||||
| June 30, 2021 | March 31, 2021 | June 30, 2020 | |||||||||||||||||||||||||
| Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | |||||||||||||||||||
| Interest-Earnings Assets: | |||||||||||||||||||||||||||
| Deposits in other financial institutions | $ | 137,902 | $ | 40 | 0.12 | % | $ | 227,393 | $ | 58 | 0.10 | % | $ | 231,621 | $ | 91 | 0.16 | % | |||||||||
| Investment securities | 88,132 | 351 | 1.59 | % | 59,227 | 306 | 2.07 | % | 38,539 | 251 | 2.61 | % | |||||||||||||||
| Loans | 1,125,958 | 14,637 | 5.21 | % | 1,044,828 | 14,159 | 5.50 | % | 1,008,220 | 13,293 | 5.30 | % | |||||||||||||||
| Total interest-earning assets | 1,351,992 | 15,028 | 4.46 | % | 1,331,448 | 14,523 | 4.42 | % | 1,278,380 | 13,635 | 4.29 | % | |||||||||||||||
| Noninterest-earning assets | 18,217 | 31,439 | 15,104 | ||||||||||||||||||||||||
| Total Assets | $ | 1,370,209 | $ | 1,362,887 | $ | 1,293,484 | |||||||||||||||||||||
| Interest-Bearing Liabilities | |||||||||||||||||||||||||||
| Interest-bearing transaction accounts | $ | 65,283 | $ | 12 | 0.07 | % | $ | 58,042 | $ | 12 | 0.08 | % | $ | 73,509 | $ | 26 | 0.14 | % | |||||||||
| Money market | 424,371 | 231 | 0.22 | % | 431,423 | 235 | 0.22 | % | 394,523 | 476 | 0.49 | % | |||||||||||||||
| Savings deposits | 9,229 | 2 | 0.09 | % | 8,766 | 2 | 0.09 | % | 8,863 | 2 | 0.09 | % | |||||||||||||||
| Certificates of deposit | 75,537 | 164 | 0.87 | % | 100,521 | 268 | 1.08 | % | 126,545 | 852 | 2.71 | % | |||||||||||||||
| Total Interest-Bearing Deposits | 574,420 | 409 | 0.29 | % | 598,752 | 517 | 0.35 | % | 603,440 | 1,356 | 0.90 | % | |||||||||||||||
| FHLB advances | 41,153 | 748 | 7.29 | % | 73,056 | 948 | 5.26 | % | 100,385 | 387 | 1.55 | % | |||||||||||||||
| Other borrowings | 17,942 | 272 | 6.06 | % | 17,940 | 272 | 6.06 | % | 17,934 | 272 | 6.07 | % | |||||||||||||||
| Total Interest-Bearing Liabilities | 59,095 | 1,020 | 6.92 | % | 90,996 | 1,220 | 5.44 | % | 118,319 | 659 | 2.24 | % | |||||||||||||||
| Noninterest-bearing deposits | 609,932 | 547,024 | 458,631 | ||||||||||||||||||||||||
| Total Funding Sources | 1,243,447 | 1,429 | 0.46 | % | 1,236,772 | 1,737 | 0.57 | % | 1,180,390 | 2,015 | 0.69 | % | |||||||||||||||
| Noninterest-bearing liabilities | 11,881 | 15,831 | 12,964 | ||||||||||||||||||||||||
| Shareholders' equity | 114,881 | 110,284 | 100,130 | ||||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 1,370,209 | $ | 1,362,887 | $ | 1,293,484 | |||||||||||||||||||||
| Net interest spread | 4.00 | % | 3.85 | % | 3.60 | % | |||||||||||||||||||||
| Net interest income | $ | 13,599 | $ | 12,786 | $ | 11,620 | |||||||||||||||||||||
| Net interest margin | 4.03 | % | 3.89 | % | 3.66 | % | |||||||||||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||
| Consolidated average balance sheet, interest, yield and rates | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| For the six months ended | |||||||||||||||||||
| June 30, 2021 | June 30, 2020 | ||||||||||||||||||
| Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||
| Interest-Earnings Assets: | |||||||||||||||||||
| Deposits in other financial institutions | $ | 187,826 | $ | 99 | 0.11 | % | $ | 163,332 | $ | 394 | 0.49 | % | |||||||
| Investment securities | 73,759 | 656 | 1.79 | % | 46,778 | 652 | 2.79 | % | |||||||||||
| Loans | 1,085,617 | 28,796 | 5.35 | % | 944,937 | 26,422 | 5.62 | % | |||||||||||
| Total interest-earning assets | 1,347,202 | 29,551 | 4.42 | % | 1,155,047 | 27,468 | 4.78 | % | |||||||||||
| Noninterest-earning assets | 19,368 | 35,816 | |||||||||||||||||
| Total Assets | $ | 1,366,570 | $ | 1,190,863 | |||||||||||||||
| Interest-Bearing Liabilities | |||||||||||||||||||
| Interest-bearing transaction accounts | $ | 61,682 | $ | 24 | 0.08 | % | $ | 78,490 | $ | 191 | 0.49 | % | |||||||
| Money market | 427,877 | 466 | 0.22 | % | 392,526 | 1,448 | 0.74 | % | |||||||||||
| Savings deposits | 8,999 | 5 | 0.11 | % | 9,037 | 8 | 0.18 | % | |||||||||||
| Certificates of deposit | 87,960 | 431 | 0.99 | % | 120,621 | 1,419 | 2.37 | % | |||||||||||
| Total Interest-Bearing Deposits | 586,518 | 926 | 0.32 | % | 600,674 | 3,066 | 1.03 | % | |||||||||||
| FHLB advances | 57,017 | 1,696 | 6.00 | % | 81,889 | 704 | 1.73 | % | |||||||||||
| Other borrowings | 17,941 | 544 | 6.11 | % | 17,934 | 544 | 6.07 | % | |||||||||||
| Total Interest-Bearing Liabilities | 74,958 | 2,240 | 6.03 | % | 99,823 | 1,248 | 2.51 | % | |||||||||||
| Noninterest-bearing deposits | 578,652 | 378,525 | |||||||||||||||||
| Total Funding Sources | 1,240,128 | 3,166 | 0.51 | % | 1,079,022 | 4,314 | 0.80 | % | |||||||||||
| Noninterest-bearing liabilities | 13,845 | 12,993 | |||||||||||||||||
| Shareholders' equity | 112,597 | 98,848 | |||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 1,366,570 | $ | 1,190,863 | |||||||||||||||
| Net interest spread | 3.91 | % | 3.98 | % | |||||||||||||||
| Net interest income | $ | 26,385 | $ | 23,154 | |||||||||||||||
| Net interest margin | 3.95 | % | 4.03 | % | |||||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | ||||||||||||||||||||
| Condensed Balance Sheets | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||||
| Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and due from banks | $ | 92,108 | $ | 164,750 | $ | 276,225 | $ | 155,346 | $ | 199,246 | ||||||||||
| Interest-bearing time deposits with other institutions | 5,760 | 5,760 | 5,760 | 5,760 | 5,758 | |||||||||||||||
| Investment securities | 88,755 | 81,429 | 26,086 | 26,525 | 27,664 | |||||||||||||||
| Loans held for sale | 19,625 | 12,430 | 9,687 | 8,402 | 7,409 | |||||||||||||||
| Loans (excluding SBA PPP loans) | 1,030,871 | 948,260 | 936,532 | 880,174 | 865,603 | |||||||||||||||
| SBA PPP loans | 133,740 | 133,740 | 62,338 | 154,210 | 153,497 | |||||||||||||||
| Allowance for loan losses | (15,708 | ) | (14,561 | ) | (14,262 | ) | (12,682 | ) | (11,100 | ) | ||||||||||
| Net loans | 1,148,903 | 1,067,439 | 984,608 | 1,021,702 | 1,008,000 | |||||||||||||||
| Right of use asset | 5,185 | 5,589 | 5,990 | 5,186 | 5,632 | |||||||||||||||
| Premises and equipment, net | 2,578 | 2,582 | 2,649 | 2,859 | 3,055 | |||||||||||||||
| Other assets and interest receivable | 19,856 | 19,738 | 18,735 | 18,414 | 17,248 | |||||||||||||||
| Total assets | $ | 1,382,770 | $ | 1,359,717 | $ | 1,329,740 | $ | 1,244,194 | $ | 1,274,012 | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Noninterest Bearing | $ | 603,914 | $ | 579,318 | $ | 531,732 | $ | 471,324 | $ | 452,155 | ||||||||||
| Interest Bearing | 601,530 | 584,341 | 581,216 | 557,455 | 584,451 | |||||||||||||||
| Total Deposits | 1,205,444 | 1,163,659 | 1,112,948 | 1,028,779 | 1,036,606 | |||||||||||||||
| Borrowings | 47,943 | 67,941 | 92,939 | 97,938 | 122,936 | |||||||||||||||
| Accrued interest payable and other liabilities | 13,059 | 16,507 | 16,100 | 14,227 | 14,097 | |||||||||||||||
| Total liabilities | 1,266,446 | 1,248,107 | 1,221,987 | 1,140,944 | 1,173,639 | |||||||||||||||
| Shareholders' equity | ||||||||||||||||||||
| Common stock | 70,405 | 70,053 | 69,557 | 69,540 | 69,512 | |||||||||||||||
| Additional paid-in capital | 3,179 | 3,317 | 3,496 | 3,230 | 3,002 | |||||||||||||||
| Retained earnings | 42,810 | 38,510 | 33,904 | 29,521 | 26,984 | |||||||||||||||
| Accumulated other comprehensive (loss) income | (70 | ) | (270 | ) | 796 | 959 | 875 | |||||||||||||
| Total shareholders' equity | 116,324 | 111,610 | 107,753 | 103,250 | 100,373 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,382,770 | $ | 1,359,717 | $ | 1,329,740 | $ | 1,244,194 | $ | 1,274,012 | ||||||||||
| Book value per common share | $ | 20.71 | $ | 19.87 | $ | 19.24 | $ | 18.50 | $ | 17.99 | ||||||||||
| Tangible book value per common share | $ | 20.33 | $ | 19.55 | $ | 18.95 | $ | 18.26 | $ | 17.76 | ||||||||||
| Shares outstanding | 5,617,020 | 5,618,324 | 5,600,508 | 5,580,456 | 5,578,884 | |||||||||||||||
| Regulatory Capital Ratios (PBAM) 1 | ||||||||||||||||||||
| Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||||||||||||||||
| Tier 1 leverage ratio | 8.30 | % | 8.07 | % | 8.52 | % | 7.92 | % | 7.57 | % | ||||||||||
| Tier 1 risk-based capital ratio | 11.62 | % | 11.35 | % | 11.20 | % | 11.35 | % | 9.66 | % | ||||||||||
| Common equity Tier 1 ratio | 11.62 | % | 11.35 | % | 11.20 | % | 11.35 | % | 9.66 | % | ||||||||||
| Total risk-based capital ratio | 14.69 | % | 14.46 | % | 14.36 | % | 14.63 | % | 12.60 | % | ||||||||||
| Tangible equity / tangible assets | 8.27 | % | 8.09 | % | 7.99 | % | 8.20 | % | 7.79 | % | ||||||||||
| 1 Preliminary ratios for June 30, 2021 | ||||||||||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||
| Condensed Statements of Income | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||||||
| Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |||||||||||||||
| Interest income | $ | 15,028 | $ | 14,523 | $ | 15,826 | $ | 13,860 | $ | 13,635 | |||||||||
| Interest expense | 1,429 | 1,737 | 1,209 | 1,363 | 2,015 | ||||||||||||||
| Net interest income | 13,599 | 12,786 | 14,617 | 12,497 | 11,620 | ||||||||||||||
| Provision for loan losses | 1,146 | 300 | 1,579 | 1,582 | 1,511 | ||||||||||||||
| Net interest income after provision for loan losses | 12,453 | 12,486 | 13,038 | 10,915 | 10,109 | ||||||||||||||
| Noninterest income | 2,805 | 1,871 | 1,636 | 936 | 1,378 | ||||||||||||||
| Salary and employee benefits | 5,966 | 4,915 | 5,293 | 5,365 | 5,790 | ||||||||||||||
| Occupancy and equipment | 820 | 810 | 774 | 864 | 900 | ||||||||||||||
| Data processing | 690 | 635 | 624 | 643 | 561 | ||||||||||||||
| Professional services | 791 | 650 | 949 | 514 | 628 | ||||||||||||||
| Other expenses | 891 | 763 | 780 | 846 | 827 | ||||||||||||||
| Total noninterest expense | 9,158 | 7,773 | 8,420 | 8,232 | 8,706 | ||||||||||||||
| Income before provision for income taxes | 6,100 | 6,584 | 6,254 | 3,619 | 2,781 | ||||||||||||||
| Income taxes | 1,806 | 1,977 | 1,874 | 1,084 | 711 | ||||||||||||||
| Net income | $ | 4,294 | $ | 4,607 | $ | 4,380 | $ | 2,535 | $ | 2,070 | |||||||||
| Net income available to common shareholders | $ | 4,231 | $ | 4,529 | $ | 4,307 | $ | 2,499 | $ | 2,038 | |||||||||
| Earnings per share | |||||||||||||||||||
| Basic earnings per share | $ | 0.76 | $ | 0.82 | $ | 0.78 | $ | 0.45 | $ | 0.37 | |||||||||
| Diluted earnings per share | $ | 0.75 | $ | 0.81 | $ | 0.78 | $ | 0.45 | $ | 0.37 | |||||||||
| Average shares outstanding | 5,536,111 | 5,514,887 | 5,501,272 | 5,499,970 | 5,435,155 | ||||||||||||||
| Diluted average shares outstanding | 5,622,075 | 5,579,477 | 5,540,232 | 5,516,013 | 5,453,597 | ||||||||||||||
| Performance Ratios | |||||||||||||||||||
| Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |||||||||||||||
| ROAA | 1.26 | % | 1.37 | % | 1.41 | % | 0.79 | % | 0.64 | % | |||||||||
| ROAE | 14.99 | % | 16.94 | % | 16.30 | % | 9.84 | % | 8.31 | % | |||||||||
| ROTE | 15.25 | % | 17.19 | % | 16.54 | % | 9.96 | % | 8.42 | % | |||||||||
| Net interest margin | 4.03 | % | 3.89 | % | 4.74 | % | 3.94 | % | 3.66 | % | |||||||||
| Net interest spread | 4.00 | % | 3.85 | % | 4.71 | % | 3.90 | % | 3.60 | % | |||||||||
| Efficiency ratio | 55.83 | % | 53.03 | % | 51.81 | % | 61.28 | % | 66.98 | % | |||||||||
| Noninterest expense / average assets | 2.68 | % | 2.31 | % | 2.71 | % | 2.58 | % | 2.71 | % | |||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||
| Average Balances | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |||||||||||||||
| Total assets | $ | 1,370,209 | $ | 1,362,887 | $ | 1,234,611 | $ | 1,271,363 | $ | 1,293,484 | |||||||||
| Earning assets | $ | 1,351,992 | $ | 1,331,448 | $ | 1,225,806 | $ | 1,260,834 | $ | 1,278,380 | |||||||||
| Total loans | $ | 1,125,958 | $ | 1,044,828 | $ | 1,005,712 | $ | 1,037,195 | $ | 1,008,220 | |||||||||
| Total deposits | $ | 1,184,352 | $ | 1,145,776 | $ | 1,017,389 | $ | 1,036,223 | $ | 1,062,071 | |||||||||
| Total equity | $ | 114,881 | $ | 110,284 | $ | 106,874 | $ | 102,539 | $ | 100,130 | |||||||||
| Loan Balances by Type | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |||||||||||||||
| Real estate - investor owned | $ | 293,461 | $ | 247,928 | $ | 243,745 | $ | 231,787 | $ | 234,806 | |||||||||
| Real estate - owner occupied | 313,579 | 284,494 | 268,193 | 259,375 | 240,587 | ||||||||||||||
| Real estate - multifamily | 72,790 | 75,361 | 69,187 | 64,268 | 66,431 | ||||||||||||||
| Real estate - single family | 90,223 | 75,353 | 67,522 | 59,994 | 57,521 | ||||||||||||||
| Commercial business | 244,493 | 227,635 | 251,711 | 228,914 | 231,885 | ||||||||||||||
| SBA PPP loans | 110,673 | 133,740 | 62,338 | 154,210 | 153,497 | ||||||||||||||
| Land and construction | 32,413 | 30,103 | 29,377 | 28,277 | 26,327 | ||||||||||||||
| Consumer | 6,979 | 7,386 | 6,797 | 7,559 | 8,046 | ||||||||||||||
| Total loans held for investment | 1,164,611 | 1,082,000 | 998,870 | 1,034,384 | 1,019,100 | ||||||||||||||
| Loans held for sale | 19,625 | 12,430 | 9,687 | 8,402 | 7,409 | ||||||||||||||
| Total loans, including loans held for sale | 1,184,236 | 1,094,430 | 1,008,557 | 1,042,786 | 1,026,509 | ||||||||||||||
| Allowance for loan losses | (15,708 | ) | (14,561 | ) | (14,262 | ) | (12,682 | ) | (11,100 | ) | |||||||||
| Net loans | $ | 1,168,528 | $ | 1,079,869 | $ | 994,295 | $ | 1,030,104 | $ | 1,015,409 | |||||||||
| Deposits by Type | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |||||||||||||||
| Non interest bearing DDA | $ | 603,914 | $ | 579,318 | $ | 531,732 | $ | 471,324 | $ | 452,155 | |||||||||
| Interest bearing DDA | 70,320 | 59,399 | 60,606 | 56,837 | 63,805 | ||||||||||||||
| Savings & MMA | 463,165 | 423,957 | 424,540 | 396,233 | 427,685 | ||||||||||||||
| Retail CD | 5,827 | 5,855 | 7,770 | 8,401 | 8,493 | ||||||||||||||
| Jumbo CD | 62,218 | 95,130 | 88,300 | 95,984 | 84,468 | ||||||||||||||
| Total deposits | $ | 1,205,444 | $ | 1,163,659 | $ | 1,112,948 | $ | 1,028,779 | $ | 1,036,606 | |||||||||
| Asset Quality | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |||||||||||||||
| Total loans, including loans held for sale | $ | 1,184,236 | $ | 1,094,430 | $ | 1,008,557 | $ | 1,042,786 | $ | 1,026,509 | |||||||||
| 30-89 day past due loans | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
| 90+ day past due loans | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
| Nonaccrual loans | $ | 1,540 | $ | 1,609 | $ | 1,609 | $ | 1,743 | $ | - | |||||||||
| NPAs / Assets | 0.11 | % | 0.12 | % | 0.12 | % | 0.14 | % | 0.00 | % | |||||||||
| NPLs / loans & OREO | 0.13 | % | 0.15 | % | 0.16 | % | 0.17 | % | 0.00 | % | |||||||||
| 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 | 1.33 | % | 1.33 | % | 1.41 | % | 1.22 | % | 1.08 | % | |||||||||
| Allowance for loan losses to nonaccrual loans | 1020.00 | % | 904.97 | % | 886.39 | % | 727.60 | % | NM | ||||||||||