First Quarter Highlights
- Net income for the quarter was $6.5 million, up 41.1% from Q1’21
- Diluted earnings per share of $1.13, up 40.0% from Q1’21
- Total loans held-for-investment (“HFI”), excluding PPP loans, increased $87.4 million, up 7.4% over Q4’21 to $1.3 billion
- Non-interest-bearing demand deposits grew $41.9 million from the prior quarter to $724.5 million, representing 52.8% of total deposits
- Net interest margin of 4.65% compared to 4.44% for Q4’21
- Cost of funding sources remained flat at 0.19%
- Allowance for Loan Losses remained strong at 1.33% of total loans HFI
- Tangible book value per share of $22.80, up $0.54 per share or 2.4% from Q4’21 including a mark-to-market adjustment related to the securities portfolio of -$5.6 million
- Well capitalized Tier 1 risk-based capital ratio of 10.31% (preliminary)
LA JOLLA, Calif., April 22, 2022 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM), (“Company”) and CalPrivate Bank (“Bank”) announced unaudited financial results for the first quarter ending March 31, 2022. The Company reported net income of $6.5 million, or $1.13 per diluted share, for the first quarter of 2022 compared to $7.3 million, or $1.28 per diluted share for the fourth quarter of 2021.
Rick Sowers, President and CEO of the Company and the Bank stated, “Our CalPrivate Franchise generated net interest income of over $17.1 million, net income of $6.5 million, and a return on tangible common equity of 20.2% in the first quarter of 2022. Our results benefited from healthy trends in lending activity as we saw strong loan volumes, which drove solid growth in net interest income.”
Sowers continued, “While we are all facing challenging times and volatile markets caused by global events, our core mission is unwavering, which is to provide Relationships, Solutions, and Trust to our Clients. With that in mind, we were able to grow loans by $87.4 million or 7.4% from Q4’21 and non-interest bearing deposits by $41.9 million or 6.1% from Q4’21, while maintaining an efficiency ratio of 53.62%. Additionally, we were able to assist almost all of our PPP Clients receive forgiveness on their loans resulting in only $8.8 million remaining on our balance sheet. In summary, the year is off to a good start thanks to our dedicated Team committed to serving our Clients.”
“PBAM continues to demonstrate its strength and success based on the first quarter results of 2022. The Company’s strategy to grow relationships and judiciously deploy capital continues to be evidenced by strong earnings and a solid risk profile resulting in first quarter diluted EPS of $1.13, up 40.0% from a year ago,” said Selwyn Isakow, Chairman of the Board of the Company and the Bank.
Isakow added, “CalPrivate continues to grow organically in core markets with our Distinctly Different service model. We remain cautiously optimistic on the economy with an eye on significant geopolitical and economic challenges due to high inflation, supply chain issues, and the on-going war in Ukraine.”
STATEMENT OF INCOME
Net Interest Income
Net interest income for the first quarter totaled $17.1 million, representing an increase of $452 thousand or 2.7% compared to the fourth quarter of 2021, excluding PPP fees. The increase in net interest income for the quarter was primarily due to increases in organic non-PPP loan balances. PPP interest and fee income was $751 thousand in Q1’22, compared to $1.4 million in Q4’21. Interest expense on deposits decreased $26 thousand in Q1’22 vs Q4’21. The continued decrease in funding costs was due to increases in core non-interest bearing deposits and the decrease of interest bearing deposits.
Net Interest Margin
The net interest margin for the first quarter was 4.65% (4.51% excluding PPP loans) compared to 4.44% (4.23% excluding PPP loans) for the fourth quarter of 2021. The 0.21% increase in the net interest margin for the quarter was due to the continued investment strategy and the normalization of cash and due from balances. Average portfolio loan yields were 5.51%, compared to 5.50% for Q4’21, including loan fees. The yield on earning assets for the first quarter was 4.82% compared with 4.62% for the fourth quarter.
Provision for Loan Losses
The provision for loan losses for the first quarter was $142 thousand, a decrease of $692 thousand compared to the fourth quarter of 2021. While the economy continued to recover in the first quarter, geopolitical events and high inflation have created uncertainty, and this is reflected in our total loan loss provision to total loans HFI of 1.33%, or 1.34% excluding PPP loans.
Non-Interest Income
Non-interest income was $3.1 million for the first quarter, representing a $1.2 million decrease, compared to the fourth quarter of 2021. The decrease in non-interest income was primarily due to a decrease in SBA loans sales during the first quarter compared to a record fourth quarter of 2021. SBA loan sales for the first quarter were $26.2 million with a 12.9% trade premium compared with $36.0 million with a 12.9% trade premium in the fourth quarter of 2021.
Non-Interest Expense
Non-interest expense was $10.9 million for the first quarter representing a $1.0 million, or 10.4% increase compared to the fourth quarter of 2021. Wage pressures and additional Team hires resulted in higher salary expenses of $821 thousand compared to the fourth quarter of 2021. Additionally, as the Bank continues to grow and has encountered a tight labor market, we have engaged with staffing agencies to provide temporary additional high-quality resources.
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. Associated with the expense is an active lawsuit against Chicago Title (parent company, Fidelity National Financial) for their alleged involvement with the fraud scheme.
STATEMENT OF FINANCIAL CONDITION
Balance Sheet
At March 31, 2022, the Company reported total assets of $1.5 billion representing an increase of $28.4 million or 1.9% compared to the fourth quarter of 2021. The increase in assets for the quarter was due to increases in loans and investment securities supported by additional growth in core deposits. Total loans HFI increased $60.7 million during the quarter, up 5.0%; excluding PPP loans, total loans increased $87.4 million, up 7.4%. Total deposits were $1.4 billion representing an increase of $25.4 million, or 1.9%, compared to the fourth quarter. Total non-interest-bearing deposits represented 52.8% of total deposits at March 31, 2022. Additionally, during the quarter, the bank continued to judiciously grow the securities portfolio to $114.4 million, an increase of $12.3 million from the prior quarter.
Asset Quality and Loan Deferrals
The Allowance for Loan Losses increased $142 thousand to $17.1 million in the quarter with a resulting coverage ratio of 1.33% of total loans outstanding, including PPP loans. 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.
As of March 31, 2022, there were no doubtful credits or charge offs and Classified assets totaled $11.2 million, compared to $13.4 million for Q4’21. Total classified assets consisted of 10 loans, of which 4 loans totaling $6.9 million were secured by real estate with a weighted average LTV of 48%. In addition, all loans that were previously granted payment deferrals related to COVID-19 have resumed their contractual payments.
Capital Ratios (1)
The Company and the Bank’s capital ratios were in excess of the levels established for “well capitalized” institutions and are as follows:
| Mar 31, 2022 (1) | Dec 31, 2021 | Mar 31, 2021 | |
| Private Bancorp of America | |||
| Tier I leverage ratio | 8.85% | 8.42% | 8.07% |
| Tier I risk-based capital ratio | 10.31% | 10.63% | 11.35% |
| Total risk-based capital ratio | 12.94% | 13.38% | 14.46% |
| CalPrivate Bank | |||
| Tier I leverage ratio | 9.72% | 9.29% | 9.16% |
| Tier I risk-based capital ratio | 11.33% | 11.73% | 12.88% |
| Total risk-based capital ratio | 12.58% | 12.98% | 14.14% |
(1) March 31, 2022, capital ratios are preliminary
Stock Repurchase Program
Since announcing the stock repurchase program in July 2021, the Company has not repurchased any shares of its common stock. The remaining number of shares authorized to be repurchased under this program at March 31, 2022, 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. | ||||||||||||||||||||||||
| CONSOLIDATED BALANCE SHEET | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
| March 31, 2022 | December 31, 2021 | Dollar change | Percentage change | March 31, 2022 | Dollar change | Percentage change | ||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Cash and due from banks | $ | 17,099 | $ | 12,336 | $ | 4,763 | 38.6 | % | $ | 8,922 | $ | 8,177 | 91.6 | % | ||||||||||
| Interest-bearing deposits in other financial institutions | 40,878 | 39,663 | 1,215 | 3.1 | % | 4,187 | 36,691 | 876.3 | % | |||||||||||||||
| Interest-bearing deposits at Federal Reserve Bank | 66,038 | 97,086 | (31,048 | ) | -32.0 | % | 151,641 | (85,603 | ) | -56.5 | % | |||||||||||||
| Total cash and due from banks | 124,015 | 149,085 | (25,070 | ) | -16.8 | % | 164,750 | (40,735 | ) | -24.7 | % | |||||||||||||
| Interest-bearing time deposits with other institutions | 5,817 | 5,760 | 57 | 1.0 | % | 5,760 | 57 | 1.0 | % | |||||||||||||||
| Investment securities available for sale | 114,382 | 102,065 | 12,317 | 12.1 | % | 81,429 | 32,953 | 40.5 | % | |||||||||||||||
| Loan held for sale | 1,999 | 24,658 | (22,659 | ) | -91.9 | % | 12,430 | (10,431 | ) | -83.9 | % | |||||||||||||
| Total loans held-for-investment | 1,284,838 | 1,224,158 | 60,680 | 5.0 | % | 1,082,000 | 202,838 | 18.7 | % | |||||||||||||||
| Allowance for loan losses | (17,117 | ) | (16,975 | ) | (142 | ) | 0.8 | % | (14,561 | ) | (2,556 | ) | 17.6 | % | ||||||||||
| Net loans | 1,267,721 | 1,207,183 | 60,538 | 5.0 | % | 1,067,439 | 200,282 | 18.8 | % | |||||||||||||||
| Federal Home Loan Bank stock, at cost | 4,909 | 4,909 | - | 0.0 | % | 4,602 | 307 | 6.7 | % | |||||||||||||||
| Right of use asset | 3,400 | 3,760 | (360 | ) | -9.6 | % | 5,589 | (2,189 | ) | -39.2 | % | |||||||||||||
| Premises and equipment, net | 2,813 | 2,294 | 519 | 22.6 | % | 2,582 | 231 | 8.9 | % | |||||||||||||||
| Servicing assets, net | 3,525 | 3,079 | 446 | 14.5 | % | 1,789 | 1,736 | 97.0 | % | |||||||||||||||
| Deferred tax asset | 7,032 | 7,355 | (323 | ) | -4.4 | % | 5,982 | 1,050 | 17.6 | % | ||||||||||||||
| Accrued interest receivable | 3,453 | 3,355 | 98 | 2.9 | % | 3,659 | (206 | ) | -5.6 | % | ||||||||||||||
| Other assets | 6,416 | 3,581 | 2,835 | 79.2 | % | 3,706 | 2,710 | 73.1 | % | |||||||||||||||
| Total assets | $ | 1,545,482 | $ | 1,517,084 | $ | 28,398 | 1.9 | % | $ | 1,359,717 | $ | 185,765 | 13.7 | % | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Noninterest bearing | $ | 724,469 | $ | 682,589 | $ | 41,880 | 6.1 | % | $ | 579,318 | $ | 145,151 | 25.1 | % | ||||||||||
| Interest Bearing | 646,545 | 663,074 | (16,529 | ) | -2.5 | % | 584,341 | 62,204 | 10.6 | % | ||||||||||||||
| Total deposits | 1,371,014 | 1,345,663 | 25,351 | 1.9 | % | 1,163,659 | 207,355 | 17.8 | % | |||||||||||||||
| FHLB borrowings | 10,000 | 10,000 | - | 0.0 | % | 50,000 | (40,000 | ) | -80.0 | % | ||||||||||||||
| Other borrowings | 17,948 | 17,947 | 1 | 0.0 | % | 17,941 | 7 | 0.0 | % | |||||||||||||||
| Accrued interest payable and other liabilities | 14,630 | 15,110 | (480 | ) | -3.2 | % | 16,507 | (1,877 | ) | -11.4 | % | |||||||||||||
| Total liabilities | 1,413,592 | 1,388,720 | 24,872 | 1.8 | % | 1,248,107 | 165,485 | 13.3 | % | |||||||||||||||
| Shareholders' equity | ||||||||||||||||||||||||
| Common stock | 70,899 | 70,850 | 49 | 0.1 | % | 70,053 | 846 | 1.2 | % | |||||||||||||||
| Additional paid-in capital | 3,602 | 3,343 | 259 | 7.7 | % | 3,317 | 285 | 8.6 | % | |||||||||||||||
| Retained earnings | 61,424 | 54,922 | 6,502 | 11.8 | % | 38,510 | 22,914 | 59.5 | % | |||||||||||||||
| Accumulated other comprehensive (loss) income | (4,035 | ) | (751 | ) | (3,284 | ) | 437.3 | % | (270 | ) | (3,765 | ) | 1394.4 | % | ||||||||||
| Total stockholders' equity | 131,890 | 128,364 | 3,526 | 2.7 | % | 111,610 | 20,280 | 18.2 | % | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,545,482 | $ | 1,517,084 | $ | 28,398 | 1.9 | % | $ | 1,359,717 | $ | 185,765 | 13.7 | % | ||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||||||||
| For the three months ended | |||||||||||||||||||||
| March 31, 2022 | December 31, 2021 | Dollar change | Percentage change | March 31, 2021 | Dollar change | Percentage change | |||||||||||||||
| Interest Income | |||||||||||||||||||||
| Loans | $ | 17,246 | $ | 16,941 | $ | 305 | 1.8 | % | $ | 14,159 | $ | 3,087 | 21.8 | % | |||||||
| Investment securities | 401 | 352 | 49 | 13.9 | % | 306 | 95 | 31.0 | % | ||||||||||||
| Deposits in other financial institutions | 134 | 63 | 71 | 112.7 | % | 58 | 76 | 131.0 | % | ||||||||||||
| Total interest income | 17,781 | 17,356 | 425 | 2.4 | % | 14,523 | 3,258 | 22.4 | % | ||||||||||||
| Interest Expense | |||||||||||||||||||||
| Deposits | 327 | 353 | (26 | ) | -7.4 | % | 517 | (190 | ) | -36.8 | % | ||||||||||
| Borrowings | 313 | 314 | (1 | ) | -0.3 | % | 1,220 | (907 | ) | -74.3 | % | ||||||||||
| Total interest expense | 640 | 667 | (27 | ) | -4.0 | % | 1,737 | (1,097 | ) | -63.2 | % | ||||||||||
| Net interest income | 17,141 | 16,689 | 452 | 2.7 | % | 12,786 | 4,355 | 34.1 | % | ||||||||||||
| Provision for loan losses | 142 | 834 | (692 | ) | -83.0 | % | 300 | (158 | ) | -52.7 | % | ||||||||||
| Net interest income after provision for loan losses | 16,999 | 15,855 | 1,144 | 7.2 | % | 12,486 | 4,513 | 36.1 | % | ||||||||||||
| Noninterest income: | |||||||||||||||||||||
| Service charges on deposit accounts | 281 | 254 | 27 | 10.6 | % | 224 | 57 | 25.4 | % | ||||||||||||
| Net gain on sale of loans | 2,471 | 3,670 | (1,199 | ) | -32.7 | % | 1,476 | 995 | 67.4 | % | |||||||||||
| Other noninterest income | 357 | 341 | 16 | 4.7 | % | 171 | 186 | 108.8 | % | ||||||||||||
| Total noninterest income | 3,109 | 4,265 | (1,156 | ) | -27.1 | % | 1,871 | 1,238 | 66.2 | % | |||||||||||
| Noninterest expense: | |||||||||||||||||||||
| Salary and employee benefits | 7,313 | 6,492 | 821 | 12.6 | % | 4,915 | 2,398 | 48.8 | % | ||||||||||||
| Occupancy and equipment | 723 | 741 | (18 | ) | -2.4 | % | 810 | (87 | ) | -10.7 | % | ||||||||||
| Data processing | 653 | 703 | (50 | ) | -7.1 | % | 635 | 18 | 2.8 | % | |||||||||||
| Professional services | 915 | 843 | 72 | 8.5 | % | 650 | 265 | 40.8 | % | ||||||||||||
| Other expenses | 1,255 | 1,060 | 195 | 18.4 | % | 763 | 492 | 64.5 | % | ||||||||||||
| Total noninterest expense | 10,859 | 9,839 | 1,020 | 10.4 | % | 7,773 | 3,086 | 39.7 | % | ||||||||||||
| Income before provision for income taxes | 9,249 | 10,281 | (1,032 | ) | -10.0 | % | 6,584 | 2,665 | 40.5 | % | |||||||||||
| Provision for income taxes | 2,747 | 2,986 | (239 | ) | -8.0 | % | 1,977 | 770 | 38.9 | % | |||||||||||
| Net income | $ | 6,502 | $ | 7,295 | $ | (793 | ) | -10.9 | % | $ | 4,607 | $ | 1,895 | 41.1 | % | ||||||
| Net income available to common shareholders | $ | 6,432 | $ | 7,204 | $ | (772 | ) | -10.7 | % | $ | 4,529 | $ | 1,903 | 42.0 | % | ||||||
| Earnings per share | |||||||||||||||||||||
| Basic earnings per share | $ | 1.16 | $ | 1.30 | $ | (0.14 | ) | -11.1 | % | $ | 0.82 | $ | 0.34 | 40.9 | % | ||||||
| Diluted earnings per share | $ | 1.13 | $ | 1.28 | $ | (0.15 | ) | -11.4 | % | $ | 0.81 | $ | 0.32 | 40.0 | % | ||||||
| Average shares outstanding | 5,568,400 | 5,547,422 | 20,978 | 0.4 | % | 5,514,887 | 53,513 | 1.0 | % | ||||||||||||
| Diluted average shares outstanding | 5,672,701 | 5,638,186 | 34,515 | 0.6 | % | 5,579,477 | 93,224 | 1.7 | % | ||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||||||||||
| Consolidated average balance sheet, interest, yield and rates | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||
| For the three months ended | |||||||||||||||||||||||||||
| March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||||||||||||
| 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 | $ | 116,903 | $ | 134 | 0.46 | % | $ | 171,279 | $ | 63 | 0.15 | % | $ | 227,393 | $ | 58 | 0.10 | % | |||||||||
| Investment securities | 109,252 | 401 | 1.47 | % | 96,722 | 351 | 1.45 | % | 59,227 | 306 | 2.07 | % | |||||||||||||||
| Loans | 1,268,695 | 17,246 | 5.51 | % | 1,222,234 | 16,942 | 5.50 | % | 1,044,828 | 14,159 | 5.50 | % | |||||||||||||||
| Total interest-earning assets | 1,494,850 | 17,781 | 4.82 | % | 1,490,235 | 17,356 | 4.62 | % | 1,331,448 | 14,523 | 4.42 | % | |||||||||||||||
| Noninterest-earning assets | 21,502 | 24,348 | 31,439 | ||||||||||||||||||||||||
| Total Assets | $ | 1,516,352 | $ | 1,514,583 | $ | 1,362,887 | |||||||||||||||||||||
| Interest-Bearing Liabilities | |||||||||||||||||||||||||||
| Interest-bearing transaction accounts | $ | 78,557 | $ | 16 | 0.08 | % | $ | 74,158 | $ | 14 | 0.07 | % | $ | 58,042 | $ | 12 | 0.08 | % | |||||||||
| Money market | 498,146 | 192 | 0.16 | % | 504,171 | 202 | 0.16 | % | 431,423 | 235 | 0.22 | % | |||||||||||||||
| Savings deposits | 13,523 | 3 | 0.09 | % | 10,602 | 3 | 0.11 | % | 8,766 | 2 | 0.09 | % | |||||||||||||||
| Certificates of deposit | 68,525 | 116 | 0.69 | % | 68,408 | 134 | 0.78 | % | 100,521 | 268 | 1.08 | % | |||||||||||||||
| Total Interest-Bearing Deposits | 658,751 | 327 | 0.20 | % | 657,339 | 353 | 0.21 | % | 598,752 | 517 | 0.35 | % | |||||||||||||||
| FHLB advances | 10,000 | 41 | 1.66 | % | 10,000 | 42 | 1.67 | % | 73,056 | 948 | 5.26 | % | |||||||||||||||
| Other borrowings | 17,948 | 272 | 6.06 | % | 17,945 | 272 | 6.06 | % | 17,940 | 272 | 6.06 | % | |||||||||||||||
| Total Interest-Bearing Liabilities | 27,948 | 313 | 4.54 | % | 27,945 | 314 | 4.46 | % | 90,996 | 1,220 | 5.44 | % | |||||||||||||||
| Noninterest-bearing deposits | 682,880 | 689,438 | 547,024 | ||||||||||||||||||||||||
| Total Funding Sources | 1,369,579 | 640 | 0.19 | % | 1,374,722 | 667 | 0.19 | % | 1,236,772 | 1,737 | 0.57 | % | |||||||||||||||
| Noninterest-bearing liabilities | 14,301 | 12,474 | 15,831 | ||||||||||||||||||||||||
| Shareholders' equity | 132,472 | 127,387 | 110,284 | ||||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 1,516,352 | $ | 1,514,583 | $ | 1,362,887 | |||||||||||||||||||||
| Net interest income/spread | $ | 17,141 | 4.63 | % | $ | 16,689 | 4.43 | % | $ | 12,786 | 3.85 | % | |||||||||||||||
| Net interest margin | 4.65 | % | 4.44 | % | 3.89 | % | |||||||||||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | ||||||||||||||||||||
| Condensed Balance Sheets | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||||
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and due from banks | $ | 124,015 | $ | 149,085 | $ | 138,553 | $ | 92,108 | $ | 164,750 | ||||||||||
| Interest-bearing time deposits with other institutions | 5,817 | 5,760 | 5,760 | 5,760 | 5,760 | |||||||||||||||
| Investment securities | 114,382 | 102,065 | 93,099 | 88,755 | 81,429 | |||||||||||||||
| Loans held for sale | 1,999 | 24,658 | 35,448 | 19,625 | 12,430 | |||||||||||||||
| Total loans held-for-investment (excluding PPP loans) | 1,276,043 | 1,188,634 | 1,117,983 | 1,053,938 | 948,260 | |||||||||||||||
| SBA PPP loans | 8,795 | 35,524 | 74,152 | 110,673 | 133,740 | |||||||||||||||
| Allowance for loan losses | (17,117 | ) | (16,975 | ) | (16,141 | ) | (15,708 | ) | (14,561 | ) | ||||||||||
| Net loans | 1,267,721 | 1,207,183 | 1,175,994 | 1,148,903 | 1,067,439 | |||||||||||||||
| Right of use asset | 3,400 | 3,760 | 4,115 | 5,185 | 5,589 | |||||||||||||||
| Premises and equipment, net | 2,813 | 2,294 | 2,459 | 2,578 | 2,582 | |||||||||||||||
| Other assets and interest receivable | 25,335 | 22,279 | 19,254 | 19,856 | 19,738 | |||||||||||||||
| Total assets | $ | 1,545,482 | $ | 1,517,084 | $ | 1,474,682 | $ | 1,382,770 | $ | 1,359,717 | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Noninterest Bearing | $ | 724,469 | $ | 682,589 | $ | 646,233 | $ | 603,914 | $ | 579,318 | ||||||||||
| Interest Bearing | 646,545 | 663,074 | 667,012 | 601,530 | 584,341 | |||||||||||||||
| Total Deposits | 1,371,014 | 1,345,663 | 1,313,245 | 1,205,444 | 1,163,659 | |||||||||||||||
| Borrowings | 27,948 | 27,947 | 27,945 | 47,943 | 67,941 | |||||||||||||||
| Accrued interest payable and other liabilities | 14,630 | 15,110 | 11,613 | 13,059 | 16,507 | |||||||||||||||
| Total liabilities | 1,413,592 | 1,388,720 | 1,352,803 | 1,266,446 | 1,248,107 | |||||||||||||||
| Shareholders' equity | ||||||||||||||||||||
| Common stock | 70,899 | 70,850 | 70,470 | 70,405 | 70,053 | |||||||||||||||
| Additional paid-in capital | 3,602 | 3,343 | 3,465 | 3,179 | 3,317 | |||||||||||||||
| Retained earnings | 61,424 | 54,922 | 47,845 | 42,810 | 38,510 | |||||||||||||||
| Accumulated other comprehensive (loss) income | (4,035 | ) | (751 | ) | 99 | (70 | ) | (270 | ) | |||||||||||
| Total shareholders' equity | 131,890 | 128,364 | 121,879 | 116,324 | 111,610 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,545,482 | $ | 1,517,084 | $ | 1,474,682 | $ | 1,382,770 | $ | 1,359,717 | ||||||||||
| Book value per common share | $ | 23.42 | $ | 22.81 | $ | 21.70 | $ | 20.71 | $ | 19.87 | ||||||||||
| Tangible book value per common share | $ | 22.80 | $ | 22.26 | $ | 21.27 | $ | 20.33 | $ | 19.55 | ||||||||||
| Shares outstanding | 5,630,993 | 5,627,735 | 5,617,273 | 5,617,020 | 5,618,324 | |||||||||||||||
| Regulatory Capital Ratios (PBAM) 1 | ||||||||||||||||||||
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | ||||||||||||||||
| Tier 1 leverage ratio | 8.85 | % | 8.42 | % | 8.19 | % | 8.36 | % | 8.07 | % | ||||||||||
| Tier 1 risk-based capital ratio | 10.31 | % | 10.63 | % | 10.64 | % | 10.74 | % | 11.35 | % | ||||||||||
| Common equity Tier 1 ratio | 10.31 | % | 10.63 | % | 10.64 | % | 10.74 | % | 11.35 | % | ||||||||||
| Total risk-based capital ratio | 12.94 | % | 13.38 | % | 13.48 | % | 13.68 | % | 14.46 | % | ||||||||||
| Tangible equity / tangible assets | 8.66 | % | 8.35 | % | 8.12 | % | 8.28 | % | 8.09 | % | ||||||||||
| 1 Preliminary ratios for March 31, 2022 | ||||||||||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||
| Condensed Statements of Income | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||||||
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||||||||||
| Interest income | $ | 17,781 | $ | 17,356 | $ | 16,458 | $ | 15,028 | $ | 14,523 | |||||||||
| Interest expense | 640 | 667 | 741 | 1,429 | 1,737 | ||||||||||||||
| Net interest income | 17,141 | 16,689 | 15,717 | 13,599 | 12,786 | ||||||||||||||
| Provision for loan losses | 142 | 834 | 433 | 1,146 | 300 | ||||||||||||||
| Net interest income after provision for loan losses | 16,999 | 15,855 | 15,284 | 12,453 | 12,486 | ||||||||||||||
| Noninterest income | 3,109 | 4,265 | 2,389 | 2,805 | 1,871 | ||||||||||||||
| Salary and employee benefits | 7,313 | 6,492 | 6,595 | 5,966 | 4,915 | ||||||||||||||
| Occupancy and equipment | 723 | 741 | 1,484 | 820 | 810 | ||||||||||||||
| Data processing | 653 | 703 | 799 | 690 | 635 | ||||||||||||||
| Professional services | 915 | 843 | 552 | 791 | 650 | ||||||||||||||
| Other expenses | 1,255 | 1,060 | 1,034 | 891 | 763 | ||||||||||||||
| Total noninterest expense | 10,859 | 9,839 | 10,464 | 9,158 | 7,773 | ||||||||||||||
| Income before provision for income taxes | 9,249 | 10,281 | 7,209 | 6,100 | 6,584 | ||||||||||||||
| Income taxes | 2,747 | 2,986 | 2,158 | 1,806 | 1,977 | ||||||||||||||
| Net income | $ | 6,502 | $ | 7,295 | $ | 5,051 | $ | 4,294 | $ | 4,607 | |||||||||
| Net income available to common shareholders | $ | 6,432 | $ | 7,204 | $ | 4,984 | $ | 4,231 | $ | 4,529 | |||||||||
| Earnings per share | |||||||||||||||||||
| Basic earnings per share | $ | 1.16 | $ | 1.30 | $ | 0.90 | $ | 0.76 | $ | 0.82 | |||||||||
| Diluted earnings per share | $ | 1.13 | $ | 1.28 | $ | 0.89 | $ | 0.75 | $ | 0.81 | |||||||||
| Average shares outstanding | 5,568,400 | 5,547,422 | 5,543,403 | 5,536,111 | 5,514,887 | ||||||||||||||
| Diluted average shares outstanding | 5,672,701 | 5,638,186 | 5,629,900 | 5,622,075 | 5,579,477 | ||||||||||||||
| Performance Ratios | |||||||||||||||||||
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||||||||||
| ROAA | 1.74 | % | 1.91 | % | 1.39 | % | 1.26 | % | 1.37 | % | |||||||||
| ROAE | 19.91 | % | 22.72 | % | 16.61 | % | 14.99 | % | 16.94 | % | |||||||||
| ROTE | 20.20 | % | 23.07 | % | 16.88 | % | 15.25 | % | 17.19 | % | |||||||||
| Net interest margin | 4.65 | % | 4.44 | % | 4.39 | % | 4.03 | % | 3.89 | % | |||||||||
| Net interest spread | 4.63 | % | 4.43 | % | 4.38 | % | 4.00 | % | 3.85 | % | |||||||||
| Efficiency ratio | 53.62 | % | 46.96 | % | 57.79 | % | 55.83 | % | 53.03 | % | |||||||||
| Noninterest expense / average assets | 2.90 | % | 2.58 | % | 2.88 | % | 2.68 | % | 2.31 | % | |||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Selected Quarterly Average Balances | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||||||||||
| Total assets | $ | 1,516,352 | $ | 1,514,583 | $ | 1,442,278 | $ | 1,370,209 | $ | 1,362,887 | |||||||||
| Earning assets | $ | 1,494,850 | $ | 1,490,235 | $ | 1,420,970 | $ | 1,351,992 | $ | 1,331,448 | |||||||||
| Total loans, including loans held for sale | $ | 1,268,695 | $ | 1,222,234 | $ | 1,185,865 | $ | 1,125,958 | $ | 1,044,828 | |||||||||
| Total deposits | $ | 1,341,631 | $ | 1,346,777 | $ | 1,276,349 | $ | 1,184,352 | $ | 1,145,776 | |||||||||
| Total equity | $ | 132,472 | $ | 127,387 | $ | 120,618 | $ | 114,881 | $ | 110,284 | |||||||||
| Loan Balances by Type | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||||||||||
| Real estate - investor owned | $ | 350,152 | $ | 324,167 | $ | 307,469 | $ | 293,461 | $ | 247,928 | |||||||||
| Real estate - owner occupied | 371,840 | 339,081 | 329,985 | 313,579 | 284,494 | ||||||||||||||
| Real estate - multifamily | 105,964 | 97,285 | 82,460 | 72,790 | 75,361 | ||||||||||||||
| Real estate - single family | 89,630 | 86,399 | 81,239 | 90,223 | 75,353 | ||||||||||||||
| Commercial business | 307,421 | 294,944 | 274,708 | 244,493 | 227,635 | ||||||||||||||
| SBA PPP loans | 8,795 | 35,524 | 74,152 | 110,673 | 133,740 | ||||||||||||||
| Land and construction | 44,856 | 39,702 | 34,996 | 32,413 | 30,103 | ||||||||||||||
| Consumer | 6,180 | 7,049 | 7,126 | 6,979 | 7,386 | ||||||||||||||
| Total loans held for investment | $ | 1,284,838 | $ | 1,224,151 | $ | 1,192,135 | $ | 1,164,611 | $ | 1,082,000 | |||||||||
| Deposits by Type | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||||||||||
| Non interest bearing DDA | $ | 724,469 | $ | 682,589 | $ | 646,233 | $ | 603,914 | $ | 579,318 | |||||||||
| Interest bearing DDA | 75,904 | 81,788 | 68,056 | 70,320 | 59,399 | ||||||||||||||
| Savings & MMA | 503,552 | 513,070 | 530,782 | 463,165 | 423,957 | ||||||||||||||
| Retail CD | 3,384 | 5,281 | 5,633 | 5,827 | 5,855 | ||||||||||||||
| Jumbo CD | 63,705 | 62,935 | 62,541 | 62,218 | 95,130 | ||||||||||||||
| Total deposits | $ | 1,371,014 | $ | 1,345,663 | $ | 1,313,245 | $ | 1,205,444 | $ | 1,163,659 | |||||||||
| Asset Quality | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||||||||||
| Total loans held-for-investment | $ | 1,284,838 | $ | 1,224,151 | $ | 1,192,135 | $ | 1,164,611 | $ | 1,082,000 | |||||||||
| 30-89 day past due loans | $ | - | $ | - | $ | 200 | $ | - | $ | - | |||||||||
| 90+ day past due loans | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
| Nonaccrual loans | $ | 1,453 | $ | 1,510 | $ | 1,494 | $ | 1,540 | $ | 1,609 | |||||||||
| NPAs / Assets | 0.09 | % | 0.10 | % | 0.10 | % | 0.11 | % | 0.12 | % | |||||||||
| NPLs / Total loans held-for-investment & OREO | 0.11 | % | 0.12 | % | 0.12 | % | 0.13 | % | 0.15 | % | |||||||||
| 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 HFI | 1.33 | % | 1.39 | % | 1.35 | % | 1.35 | % | 1.35 | % | |||||||||
| Allowance for loan losses to nonaccrual loans | 1178.05 | % | 1124.11 | % | 1080.39 | % | 1020.00 | % | 904.97 | % | |||||||||
