2020 Highlights
- Record net income of $10.9 million, or $1.94 per diluted share
- Net interest margin for the year was 4.15% compared with 4.51% in the prior year
- Total loans were $1.0 billion, up 13.9% for the year-over-year
- Allowance for Loan Losses to total loans increased to 1.41% and 1.51% excluding PPP loans
- No doubtful credits and no delinquent loans at end of year
- Non-performing assets represent 0.12% of total assets
- COVID-19 loan deferrals are $34.0 million, or 3.4% of total loans
- Total deposits were $1.1 billion, up 30.9% year-over-year
- Non-interest-bearing deposits increased 98% and represent 48% of total deposits
- Return on Average Assets of 0.89% and Return on Average Equity of 10.70%
Fourth Quarter 2020 Highlights
- Net income of $4.4 million, or $0.78 per diluted share
- Net interest margin was 4.74% in the fourth quarter compared with 3.94% in the prior quarter
- Net interest income increased $2.1 million or 17% to $14.6 million in the fourth quarter
- Cost of deposits was 0.23% in the fourth quarter, compared with 0.27% in the prior quarter
- Return on Average Assets of 1.41% and Return on Average Equity of 16.30%
LA JOLLA, Calif., Jan. 28, 2021 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM), (“Company”) and CalPrivate Bank (“Bank”) announced unaudited financial results for the fourth quarter and year ending December 31, 2020. The Company reported net income of $4.4 million, or $0.78 per diluted share, for the fourth quarter of 2020 compared to $2.5 million, or $0.45 per diluted share for the third quarter of 2020. Net income for the year 2020 was $10.9 million, or $1.94 per diluted share, compared with a net loss of $428 thousand, or $0.08 per diluted share in 2019.
Rick Sowers, President and CEO of the Company and the Bank stated, “Over the last year our Team has shown incredible dedication to our Bank, our clients and our communities. They performed exceptionally well in a difficult environment and delivered record earnings for shareholders in 2020. Our Relationship-focused business model continues to create long term value. We spent 2020 expanding our Team and our capabilities for our clients and this resulted in substantial loan and deposit growth.”
Sowers continued, “The year provided the Bank with an opportunity to support our Team, clients, and communities in response to unprecedented challenges from COVID-19. The Bank provided 615 PPP loans for a total of $159.0 million and through the end of the year worked with our clients to submit 548 loans totaling $144.8 million to the SBA for forgiveness. In the fourth quarter, the Bank received $2.1 million in fees from the SBA for loans submitted and granted forgiveness. We are participating in the second round of PPP beginning in January 2021 to continue to support our clients and communities.”
Loan Deferrals and Asset Quality
As of December 31, 2020, there were no doubtful credits or charge offs and no past due loans at the end of the quarter and Classified assets totaled $8.5 million. Classified assets included one loan totaling $1.6 million on non-accrual and $6.9 million consisted of seven relationships with four related to the impacts of COVID-19. Classified assets increased $800 thousand to $8.5 million at quarter end, of which the largest loan was a well secured $3.5 million credit.
Additionally, as of December 31, 2020, seven loans totaling $34.0 million are on COVID-19 related deferrals. During the quarter, two new deferrals totaling $9.1 million were granted and there are five loans totaling $24.9 million on their second deferral. Of the loans on deferral, four loans, or $28.3 million are real estate secured with an average LTV of 50.1% and three loans totaling $5.7 million are unsecured.
The Allowance for Loan Losses increased $1.6 million to $14.3 million in the quarter with a resulting coverage ratio of 1.41% of total loans outstanding, including PPP loans, compared to $12.7 million or 1.22% at the third quarter of 2020 and $8.6 million or 0.97% at the fourth quarter of 2019. The increase in the Allowance for Loan Losses was primarily due to qualitative factors related to the general economic outlook in the markets we serve and the potential impact on the loan portfolio resulting from economic uncertainties related to COVID-19. The coverage ratio at December 31, 2020, excluding the impact of PPP loans, increased to 1.51% from 1.43% in the prior quarter.
Net Interest Income
Net interest income for the fourth quarter totaled $14.6 million representing an increase of $2.1 million, or 17% compared to the third quarter and a $3.5 million or 32% increase for the same period in 2019. The increase in net interest income for the quarter is due to a $2.0 million increase in loan income largely due to a $1.8 million increase in SBA PPP loan income resulting from loan forgiveness/payoff and $111 thousand in lower deposit costs resulting from continued repricing of the deposit portfolio. The increase compared to the same period in 2019 is due to increased average loan balances and lower funding costs partially offset by a decrease in income from securities.
Net interest income for the year totaled $50.3 million representing an increase of $8.5 million or 20% compared to the same period in 2019. The increase in income is due to increased average loan balances, SBA PPP loan income and lower deposit costs partially offset by less income from securities due to lower average securities balances in 2020.
Net Interest Margin
Net interest margin for the fourth quarter of 2020 was 4.74% compared with 3.94% for the third quarter of 2020 and 4.47% for the same period in 2019. The 80 bp increase in the net interest margin for the quarter was positively impacted by the SBA PPP payoffs that contributed 68 bps to the margin and the 4 bp impact from lower deposit costs as a result of proactive repositioning and repricing of the deposit portfolio. The yield on earning assets for the fourth quarter of 2020 was 5.14% compared with 4.37% in the third quarter and 5.44% for the same period in 2019. The yield on loans for the quarter increased to 6.15% compared to 5.21% in the third quarter of this year and 5.98% in the fourth quarter of 2019. The cost of total funding sources was 0.43% for the quarter compared with 0.47% in the third quarter and 1.04% for the same period in 2019.
The net interest margin for the year was 4.15% compared with 4.51% for the same period in 2019. The decrease in the net interest margin is due to lower yields in the loan portfolio and federal funds partially offset by lower deposit and borrowing costs. Total loan yields in 2020 decreased 41 bps to 5.65% compared with 6.06% for the same period in 2019. The total funding costs improved 39 bps to 0.62% compared with 1.01% for the same period in 2019. The reduced funding costs were the result of repaying higher priced callable wholesale funding and repricing the deposit portfolio.
Non-Interest Income
Non-interest income was $1.6 million for the fourth quarter of 2020, representing a $700 thousand or 74.8% increase compared to the third quarter of 2020 and a $615 thousand or 60.2% increase compared to the same period in 2019. The increase in non-interest income for the quarter is due to $616 thousand in additional revenue from SBA loans sales recorded in the fourth quarter. The increase in non-interest income compared to a year ago is primarily due to $738 thousand in additional gains from the sale of SBA loans partially offset by $190 thousand in securities gains recorded in the fourth quarter of 2019. SBA loan sales for the fourth quarter were $14.1 million with a 12.3% trade premium compared with $6.2 million with a 13.8% trade premium in the third quarter of 2020 and $8.0 million with a 9.8% trade premium in the fourth quarter of 2019.
Non-interest income for the year was $5.1 million compared with $2.8 million for the same period in 2019. The increase in non-interest income was largely due to increased revenue from the sale of SBA loans, gain on sale of investment securities and increased other non-interest income.
Non-Interest Expense
Non-interest expense was $8.4 million for the fourth quarter of 2020 representing a $188 thousand increase, or 2.3%, compared to the third quarter of 2020 and a $142 thousand decrease, or 1.7% decrease, compared to the same period in 2019. The increase in fourth quarter expenses was primarily due to an increase in professional fees partially offset by decreases in salaries and benefits and occupancy expense. The decrease compared to the fourth quarter of 2019 was due to decreases in salaries and benefits and other expenses partially offset by an increase in professional services.
Non-interest expense for the year was $34 million compared with $33.3 million in 2019. The $688 thousand increase was primarily due to increases in professional fees and occupancy partially offset by a decrease in salaries and benefits. The increase in professional fees was due to increases in legal and audit fees.
Balance Sheet
At December 31, 2020, the Company reported total assets of $1.3 billion representing an increase of $85.5 million or 7% compared to the third quarter of 2020 and an increase of $263.8 million or 24.7% compared to December 31, 2019. The increase in assets for the quarter was largely due to an increase in cash and due from banks resulting from an increase in customer deposits at the end of the year partially offset by a $34.2 million, or 3.3%, decrease in total loans from SBA PPP loan payoffs. Total non-SBA PPP loans for the quarter increased $57.6 million driven by growth in the Commercial Real Estate and Commercial loan portfolios. Total non-SBA PPP loans for the year increased $60.7 million driven by growth in the Commercial Real Estate and Commercial loan portfolios. Total deposits were $1.1 billion representing an increase of $84.2 million, or 8.2%, compared to the third quarter of 2020 and an increase of $262.7 million, or 31%, compared to December 31, 2019. Total non-interest-bearing deposits represented 48% of total deposits at December 31, 2020 compared with 32% at December 31, 2019.
“The CalPrivate Bank Team performed exceptionally during a year of disruption, uncertainty, work-from-home and a declining interest rate environment. Maintaining superior client relationship service levels, record earnings, amazing growth in deposits and superior loan and non-interest income growth, with reduced operating expense levels, is truly remarkable and a tribute to management leadership,” said Selwyn Isakow Chairman of the Board of the Company and the Bank.
Isakow added, “During the year the Bank added significant talent in the technology, business development, human resources and many other areas, so as to be well-positioned for future expansion. The Bank also made great strides in our Diversity, Inclusion and Equity efforts, including the appointment of Larraine Segil, SiSi Pouraghabagher and Leda Csanka to the Board of Directors. The Board wishes to thank our clients, our team, our leadership and all our other stakeholders for their trust and individual roles in making 2020 so successful.”
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) | |||||||||||||||||||||||
| December 31, 2020 | September 30, 2020 | Dollar change | Percentage change | December 31, 2019 | Dollar change | Percentage change | |||||||||||||||||
| Assets | |||||||||||||||||||||||
| Cash and due from banks | $ | 10,644 | $ | 10,985 | $ | (341 | ) | -3.1 | % | $ | 31,051 | $ | (20,407 | ) | -65.7 | % | |||||||
| Interest-bearing deposits in other financial institutions | 1,715 | 930 | 785 | 84.4 | % | 1,243 | 472 | 38.0 | % | ||||||||||||||
| Interest-bearing deposits at Federal Reserve Bank | 263,866 | 143,431 | 120,435 | 84.0 | % | 73,318 | 190,548 | 259.9 | % | ||||||||||||||
| Total cash and due from banks | 276,225 | 155,346 | 120,879 | 77.8 | % | 105,612 | 170,613 | 161.5 | % | ||||||||||||||
| Interest-bearing time deposits with other institutions | 5,760 | 5,760 | - | 0.0 | % | 5,756 | 4 | 0.1 | % | ||||||||||||||
| Investment securities available for sale | 26,086 | 26,525 | (439 | ) | -1.7 | % | 51,179 | (25,093 | ) | -49.0 | % | ||||||||||||
| Loans | 1,008,557 | 1,042,786 | (34,229 | ) | -3.3 | % | 885,556 | 123,001 | 13.9 | % | |||||||||||||
| Allowance for loan losses | (14,262 | ) | (12,682 | ) | (1,580 | ) | 12.5 | % | (8,601 | ) | (5,661 | ) | 65.8 | % | |||||||||
| Net loans | 994,295 | 1,030,104 | (35,809 | ) | -3.5 | % | 876,955 | 117,340 | 13.4 | % | |||||||||||||
| Federal Home Loan Bank stock, at cost | 4,602 | 4,602 | - | 0.0 | % | 4,060 | 542 | 13.3 | % | ||||||||||||||
| Right of use asset | 5,990 | 5,186 | 804 | 15.5 | % | 6,452 | (462 | ) | -7.2 | % | |||||||||||||
| Premises and equipment, net | 2,649 | 2,859 | (210 | ) | -7.3 | % | 3,165 | (516 | ) | -16.3 | % | ||||||||||||
| Other intangible assets | 1,602 | 1,364 | 238 | 17.4 | % | 1,080 | 522 | 48.3 | % | ||||||||||||||
| Deferred tax asset | 4,141 | 4,141 | - | 0.0 | % | 4,141 | - | 0.0 | % | ||||||||||||||
| Accrued interest receivable | 3,540 | 3,883 | (343 | ) | -8.8 | % | 2,703 | 837 | 31.0 | % | |||||||||||||
| Other assets | 4,850 | 4,424 | 426 | 9.6 | % | 4,884 | (34 | ) | -0.7 | % | |||||||||||||
| Total assets | $ | 1,329,740 | $ | 1,244,194 | $ | 85,546 | 6.9 | % | $ | 1,065,987 | $ | 263,753 | 24.7 | % | |||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Noninterest bearing | $ | 531,732 | $ | 471,324 | $ | 60,408 | 12.8 | % | $ | 268,116 | $ | 263,616 | 98.3 | % | |||||||||
| Interest Bearing | 581,216 | 557,455 | 23,761 | 4.3 | % | 582,139 | (923 | ) | -0.2 | % | |||||||||||||
| Total deposits | 1,112,948 | 1,028,779 | 84,169 | 8.2 | % | 850,255 | 262,693 | 30.9 | % | ||||||||||||||
| FHLB borrowings | 75,000 | 80,000 | (5,000 | ) | -6.3 | % | 90,000 | (15,000 | ) | -16.7 | % | ||||||||||||
| Other borrowings | 17,939 | 17,938 | 1 | 0.0 | % | 17,932 | 7 | 0.0 | % | ||||||||||||||
| Accrued interest payable and other liabilities | 16,100 | 14,227 | 1,873 | 13.2 | % | 12,120 | 3,980 | 32.8 | % | ||||||||||||||
| Total liabilities | 1,221,987 | 1,140,944 | 81,043 | 7.1 | % | 970,307 | 251,680 | 25.9 | % | ||||||||||||||
| Shareholders' equity | |||||||||||||||||||||||
| Common stock | 69,557 | 69,540 | 17 | 0.0 | % | 69,159 | 398 | 0.6 | % | ||||||||||||||
| Additional paid-in capital | 3,496 | 3,230 | 266 | 8.2 | % | 3,048 | 448 | 14.7 | % | ||||||||||||||
| Retained earnings | 33,904 | 29,521 | 4,383 | 14.8 | % | 22,905 | 10,999 | 48.0 | % | ||||||||||||||
| Accumulated other comprehensive income | 796 | 959 | (163 | ) | -17.0 | % | 568 | 228 | 40.1 | % | |||||||||||||
| Total stockholders' equity | 107,753 | 103,250 | 4,503 | 4.4 | % | 95,680 | 12,073 | 12.6 | % | ||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,329,740 | $ | 1,244,194 | $ | 85,546 | 6.9 | % | $ | 1,065,987 | $ | 263,753 | 24.7 | % | |||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||||||||
| For the three months ended | |||||||||||||||||||||
| December 31, 2020 | September 30, 2020 | Dollar change | Percentage change | December 31, 2019 | Dollar change | Percentage change | |||||||||||||||
| Interest Income | |||||||||||||||||||||
| Loans | $ | 15,540 | $ | 13,578 | $ | 1,962 | 14.4 | % | $ | 12,733 | $ | 2,807 | 22.0 | % | |||||||
| Investment securities | 245 | 231 | 14 | 6.1 | % | 485 | (240 | ) | -49.5 | % | |||||||||||
| Deposits in other financial institutions | 41 | 51 | (10 | ) | -19.6 | % | 254 | (213 | ) | -83.9 | % | ||||||||||
| Total interest income | 15,826 | 13,860 | 1,966 | 14.2 | % | 13,472 | 2,354 | 17.5 | % | ||||||||||||
| Interest Expense | |||||||||||||||||||||
| Deposits | 596 | 707 | (111 | ) | -15.7 | % | 1,825 | (1,229 | ) | -67.3 | % | ||||||||||
| Borrowings | 613 | 656 | (43 | ) | -6.6 | % | 575 | 38 | 6.6 | % | |||||||||||
| Total interest expense | 1,209 | 1,363 | (154 | ) | -11.3 | % | 2,400 | (1,191 | ) | -49.6 | % | ||||||||||
| Net interest income | 14,617 | 12,497 | 2,120 | 17.0 | % | 11,072 | 3,545 | 32.0 | % | ||||||||||||
| Provision for loan losses | 1,579 | 1,582 | (3 | ) | -0.2 | % | 708 | 871 | 123.0 | % | |||||||||||
| Net interest income after provision for loan losses | 13,038 | 10,915 | 2,123 | 19.5 | % | 10,364 | 2,674 | 25.8 | % | ||||||||||||
| Noninterest income: | |||||||||||||||||||||
| Service charges on deposit accounts | 196 | 141 | 55 | 39.0 | % | 138 | 58 | 42.0 | % | ||||||||||||
| Net gain on sale of loans | 1,170 | 554 | 616 | 111.2 | % | 432 | 738 | 170.8 | % | ||||||||||||
| Gain on sale of investment securities | - | - | - | NM | 190 | (190 | ) | -100.0 | % | ||||||||||||
| Other noninterest income | 270 | 241 | 29 | 12.0 | % | 261 | 9 | 3.4 | % | ||||||||||||
| Total noninterest income | 1,636 | 936 | 700 | 74.8 | % | 1,021 | 615 | 60.2 | % | ||||||||||||
| Noninterest expense: | |||||||||||||||||||||
| Salary and employee benefits | 5,293 | 5,365 | (72 | ) | -1.3 | % | 5,427 | (134 | ) | -2.5 | % | ||||||||||
| Occupancy and equipment | 774 | 864 | (90 | ) | -10.4 | % | 832 | (58 | ) | -7.0 | % | ||||||||||
| Data processing | 624 | 643 | (19 | ) | -3.0 | % | 631 | (7 | ) | -1.1 | % | ||||||||||
| Professional services | 949 | 514 | 435 | 84.6 | % | 726 | 223 | 30.7 | % | ||||||||||||
| Other expenses | 780 | 846 | (66 | ) | -7.8 | % | 946 | (166 | ) | -17.5 | % | ||||||||||
| Total noninterest expense | 8,420 | 8,232 | 188 | 2.3 | % | 8,562 | (142 | ) | -1.7 | % | |||||||||||
| Income before provision for income taxes | 6,254 | 3,619 | 2,635 | 72.8 | % | 2,823 | 3,431 | 121.5 | % | ||||||||||||
| Provision for income taxes | 1,874 | 1,084 | 790 | 72.9 | % | 857 | 1,017 | 118.7 | % | ||||||||||||
| Net income | $ | 4,380 | $ | 2,535 | $ | 1,845 | 72.8 | % | $ | 1,966 | $ | 2,414 | 122.8 | % | |||||||
| Net income available to common shareholders | $ | 4,307 | $ | 2,499 | $ | 1,808 | 72.3 | % | $ | 1,931 | $ | 2,376 | 123.0 | % | |||||||
| Earnings per share | |||||||||||||||||||||
| Basic earnings per share | $ | 0.78 | $ | 0.45 | $ | 0.33 | 73.3 | % | $ | 0.36 | $ | 0.42 | 116.7 | % | |||||||
| Diluted earnings per share | $ | 0.78 | $ | 0.45 | $ | 0.33 | 73.3 | % | $ | 0.35 | $ | 0.43 | 122.9 | % | |||||||
| Average shares outstanding | 5,501,272 | 5,499,970 | 1,302 | 0.0 | % | 5,414,056 | 87,216 | 1.6 | % | ||||||||||||
| Diluted average shares outstanding | 5,540,232 | 5,516,013 | 24,219 | 0.4 | % | 5,492,930 | 47,302 | 0.9 | % | ||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | ||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||
| (Unaudited) | ||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||
| For the twelve months ended | ||||||||||||||
| December 31, 2020 | December 31, 2019 | Dollar change | Percentage change | |||||||||||
| Interest Income | ||||||||||||||
| Loans | $ | 55,539 | $ | 47,182 | $ | 8,357 | 17.7 | % | ||||||
| Investment securities | 1,128 | 2,303 | (1,175 | ) | -51.0 | % | ||||||||
| Deposits in other financial institutions | 487 | 695 | (208 | ) | -29.9 | % | ||||||||
| Total interest income | 57,154 | 50,180 | 6,974 | 13.9 | % | |||||||||
| Interest Expense | ||||||||||||||
| Deposits | 4,369 | 5,977 | (1,608 | ) | -26.9 | % | ||||||||
| Borrowings | 2,517 | 2,438 | 79 | 3.2 | % | |||||||||
| Total interest expense | 6,886 | 8,415 | (1,529 | ) | -18.2 | % | ||||||||
| Net interest income | 50,268 | 41,765 | 8,503 | 20.4 | % | |||||||||
| Provision for loan losses | 5,670 | 11,830 | (6,160 | ) | -52.1 | % | ||||||||
| Net interest income after provision for loan losses | 44,598 | 29,935 | 14,663 | 49.0 | % | |||||||||
| Noninterest income: | ||||||||||||||
| Service charges on deposit accounts | 654 | 485 | 169 | 34.8 | % | |||||||||
| Net gain on sale of loans | 2,614 | 1,249 | 1,365 | 109.3 | % | |||||||||
| Gain on sale of investment securities | 751 | 341 | 410 | 120.2 | % | |||||||||
| Other noninterest income | 1,078 | 737 | 341 | 46.3 | % | |||||||||
| Total noninterest income | 5,097 | 2,812 | 2,285 | 81.3 | % | |||||||||
| Noninterest expense: | ||||||||||||||
| Salary and employee benefits | 22,000 | 22,889 | (889 | ) | -3.9 | % | ||||||||
| Occupancy and equipment | 3,422 | 2,941 | 481 | 16.4 | % | |||||||||
| Data processing | 2,345 | 2,233 | 112 | 5.0 | % | |||||||||
| Professional services | 2,951 | 2,121 | 830 | 39.1 | % | |||||||||
| Other expenses | 3,302 | 3,148 | 154 | 4.9 | % | |||||||||
| Total noninterest expense | 34,020 | 33,332 | 688 | 2.1 | % | |||||||||
| Income (loss) before provision for income taxes | 15,675 | (585 | ) | 16,260 | -2779.5 | % | ||||||||
| Provision for income taxes | 4,784 | (157 | ) | 4,941 | -3147.1 | % | ||||||||
| Net income (loss) | $ | 10,891 | $ | (428 | ) | $ | 11,319 | -2644.6 | % | |||||
| Net income (loss) available to common shareholders | $ | 10,710 | $ | (420 | ) | $ | 11,130 | -2650.0 | % | |||||
| Earnings (loss) per share | ||||||||||||||
| Basic earnings (loss) per share | $ | 1.95 | $ | (0.08 | ) | $ | 2.03 | -2537.5 | % | |||||
| Diluted earnings (loss) per share | $ | 1.94 | $ | (0.08 | ) | $ | 2.02 | -2525.0 | % | |||||
| Average shares outstanding | 5,494,423 | 5,248,267 | 246,156 | 4.7 | % | |||||||||
| Diluted average shares outstanding | 5,527,284 | 5,248,267 | 279,017 | 5.3 | % | |||||||||
| PRIVATE BANCORP OF AMERICA, INC. | ||||||||||||||||||||||||||||
| Consolidated average balance sheet, interest, yield and rates | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||||||||||
| December 31, 2020 | September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||
| 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 | $ | 189,856 | $ | 41 | 0.09 | % | $ | 191,912 | $ | 51 | 0.11 | % | $ | 66,186 | $ | 254 | 1.52 | % | ||||||||||
| Investment securities | 30,238 | 245 | 3.24 | % | 31,727 | 231 | 2.91 | % | 70,647 | 485 | 2.75 | % | ||||||||||||||||
| Loans | 1,005,712 | 15,540 | 6.15 | % | 1,037,195 | 13,578 | 5.21 | % | 845,199 | 12,733 | 5.98 | % | ||||||||||||||||
| Total interest-earning assets | 1,225,806 | 15,826 | 5.14 | % | 1,260,834 | 13,860 | 4.37 | % | 982,032 | 13,472 | 5.44 | % | ||||||||||||||||
| Noninterest-earning assets | 8,805 | 10,529 | 36,912 | |||||||||||||||||||||||||
| Total Assets | $ | 1,234,611 | $ | 1,271,363 | $ | 1,018,944 | ||||||||||||||||||||||
| Interest-Bearing Liabilities | ||||||||||||||||||||||||||||
| Interest-bearing transaction accounts | $ | 56,867 | $ | 17 | 0.12 | % | $ | 59,624 | $ | 19 | 0.13 | % | $ | 56,061 | $ | 130 | 0.92 | % | ||||||||||
| Money market | 400,764 | 270 | 0.27 | % | 402,286 | 349 | 0.35 | % | 389,499 | 1,009 | 1.03 | % | ||||||||||||||||
| Savings deposits | 8,617 | 3 | 0.14 | % | 9,024 | 2 | 0.09 | % | 10,078 | 6 | 0.24 | % | ||||||||||||||||
| Certificates of deposit | 98,225 | 306 | 1.24 | % | 97,444 | 337 | 1.38 | % | 114,699 | 680 | 2.35 | % | ||||||||||||||||
| Total Interest-Bearing Deposits | 564,473 | 596 | 0.42 | % | 568,378 | 707 | 0.49 | % | 570,337 | 1,825 | 1.27 | % | ||||||||||||||||
| FHLB advances | 77,348 | 341 | 1.75 | % | 100,924 | 384 | 1.51 | % | 56,814 | 306 | 2.14 | % | ||||||||||||||||
| Other borrowings | 17,938 | 272 | 6.07 | % | 17,937 | 272 | 6.07 | % | 17,931 | 269 | 6.00 | % | ||||||||||||||||
| Total Interest-Bearing Liabilities | 95,286 | 613 | 2.56 | % | 118,861 | 656 | 2.20 | % | 74,745 | 575 | 3.05 | % | ||||||||||||||||
| Noninterest-bearing deposits | 452,916 | 467,845 | 271,892 | |||||||||||||||||||||||||
| Total Funding Sources | 1,112,675 | 1,209 | 0.43 | % | 1,155,084 | 1,363 | 0.47 | % | 916,974 | 2,400 | 1.04 | % | ||||||||||||||||
| Noninterest-bearing liabilities | 15,062 | 13,740 | 10,506 | |||||||||||||||||||||||||
| Shareholders' equity | 106,874 | 102,539 | 91,464 | |||||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 1,234,611 | $ | 1,271,363 | $ | 1,018,944 | ||||||||||||||||||||||
| Net interest spread | 4.71 | % | 3.90 | % | 4.40 | % | ||||||||||||||||||||||
| Net interest income | $ | 14,617 | $ | 12,497 | $ | 11,072 | ||||||||||||||||||||||
| Net interest margin | 4.74 | % | 3.94 | % | 4.47 | % | ||||||||||||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||
| Consolidated average balance sheet, interest, yield and rates | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| For the twelve months ended | |||||||||||||||||||
| December 31, 2020 | December 31, 2019 | ||||||||||||||||||
| Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||
| Interest-Earnings Assets: | |||||||||||||||||||
| Deposits in other financial institutions | $ | 188,109 | $ | 487 | 0.26 | % | $ | 62,784 | $ | 695 | 1.11 | % | |||||||
| Investment securities | 38,978 | 1,128 | 2.89 | % | 83,810 | 2,303 | 2.75 | % | |||||||||||
| Loans | 983,405 | 55,539 | 5.65 | % | 778,474 | 47,182 | 6.06 | % | |||||||||||
| Total interest-earning assets | 1,210,492 | 57,154 | 4.72 | % | 925,068 | 50,180 | 5.42 | % | |||||||||||
| Noninterest-earning assets | 11,602 | 9,972 | |||||||||||||||||
| Total Assets | $ | 1,222,094 | $ | 935,040 | |||||||||||||||
| Interest-Bearing Liabilities | |||||||||||||||||||
| Interest-bearing transaction accounts | $ | 68,313 | $ | 227 | 0.33 | % | $ | 36,950 | $ | 280 | 0.76 | % | |||||||
| Money market | 397,050 | 2,068 | 0.52 | % | 349,628 | 3,333 | 0.95 | % | |||||||||||
| Savings deposits | 8,928 | 13 | 0.15 | % | 7,672 | 20 | 0.26 | % | |||||||||||
| Certificates of deposit | 109,165 | 2,061 | 1.89 | % | 104,674 | 2,344 | 2.24 | % | |||||||||||
| Total Interest-Bearing Deposits | 583,456 | 4,369 | 0.75 | % | 498,924 | 5,977 | 1.20 | % | |||||||||||
| FHLB advances | 85,532 | 1,430 | 1.67 | % | 61,528 | 1,482 | 2.41 | % | |||||||||||
| Other borrowings | 17,936 | 1,087 | 6.06 | % | 14,656 | 956 | 6.52 | % | |||||||||||
| Total Interest-Bearing Liabilities | 103,468 | 2,517 | 2.43 | % | 76,184 | 2,438 | 3.20 | % | |||||||||||
| Noninterest-bearing deposits | 419,676 | 258,871 | |||||||||||||||||
| Total Funding Sources | 1,106,600 | 6,886 | 0.62 | % | 833,979 | 8,415 | 1.01 | % | |||||||||||
| Noninterest-bearing liabilities | 13,701 | 9,493 | |||||||||||||||||
| Shareholders' equity | 101,793 | 91,568 | |||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 1,222,094 | $ | 935,040 | |||||||||||||||
| Net interest spread | 4.10 | % | 4.42 | % | |||||||||||||||
| Net interest income | $ | 50,268 | $ | 41,765 | |||||||||||||||
| Net interest margin | 4.15 | % | 4.51 | % | |||||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | ||||||||||||||||||||
| Condensed Balance Sheets | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||||
| Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and due from banks | $ | 276,225 | $ | 155,346 | $ | 199,246 | $ | 221,154 | $ | 105,612 | ||||||||||
| Interest-bearing time deposits with other institutions | 5,760 | 5,760 | 5,758 | 5,756 | 5,756 | |||||||||||||||
| Investment securities | 26,086 | 26,525 | 27,664 | 49,327 | 51,179 | |||||||||||||||
| Loans (excluding SBA PPP loans) | 946,219 | 888,576 | 873,012 | 894,076 | 885,556 | |||||||||||||||
| SBA PPP loans | 62,338 | 154,210 | 153,497 | - | - | |||||||||||||||
| Allowance for loan losses | (14,262 | ) | (12,682 | ) | (11,100 | ) | (9,598 | ) | (8,601 | ) | ||||||||||
| Net loans | 994,295 | 1,030,104 | 1,015,409 | 884,478 | 876,955 | |||||||||||||||
| Right of use asset | 5,990 | 5,186 | 5,632 | 6,022 | 6,452 | |||||||||||||||
| Premises and equipment, net | 2,649 | 2,859 | 3,055 | 3,052 | 3,165 | |||||||||||||||
| Other assets and interest receivable | 18,735 | 18,414 | 17,248 | 16,092 | 16,868 | |||||||||||||||
| Total assets | $ | 1,329,740 | $ | 1,244,194 | $ | 1,274,012 | $ | 1,185,881 | $ | 1,065,987 | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Noninterest Bearing | $ | 531,732 | $ | 471,324 | $ | 452,155 | $ | 355,225 | $ | 268,116 | ||||||||||
| Interest Bearing | 581,216 | 557,455 | 584,451 | 607,062 | 582,139 | |||||||||||||||
| Total Deposits | 1,112,948 | 1,028,779 | 1,036,606 | 962,287 | 850,255 | |||||||||||||||
| Borrowings | 92,939 | 97,938 | 122,936 | 112,934 | 107,932 | |||||||||||||||
| Accrued interest payable and other liabilities | 16,100 | 14,227 | 14,097 | 12,497 | 12,120 | |||||||||||||||
| Total liabilities | 1,221,987 | 1,140,944 | 1,173,639 | 1,087,718 | 970,307 | |||||||||||||||
| Shareholders' equity | ||||||||||||||||||||
| Common stock | 69,557 | 69,540 | 69,512 | 69,165 | 69,159 | |||||||||||||||
| Additional paid-in capital | 3,496 | 3,230 | 3,002 | 3,254 | 3,048 | |||||||||||||||
| Retained earnings | 33,904 | 29,521 | 26,984 | 24,839 | 22,905 | |||||||||||||||
| Accumulated other comprehensive income | 796 | 959 | 875 | 905 | 568 | |||||||||||||||
| Total shareholders' equity | 107,753 | 103,250 | 100,373 | 98,163 | 95,680 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,329,740 | $ | 1,244,194 | $ | 1,274,012 | $ | 1,185,881 | $ | 1,065,987 | ||||||||||
| Book value per common share | $ | 19.24 | $ | 18.50 | $ | 17.99 | $ | 17.57 | $ | 17.15 | ||||||||||
| Tangible book value per common share | $ | 18.95 | $ | 18.26 | $ | 17.76 | $ | 17.35 | $ | 16.96 | ||||||||||
| Shares outstanding | 5,600,508 | 5,580,456 | 5,578,884 | 5,586,270 | 5,577,968 | |||||||||||||||
| Regulatory Capital Ratios (PBAM) 1 | ||||||||||||||||||||
| Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||||||||||||||||
| Tier 1 leverage ratio | 8.53 | % | 7.92 | % | 7.57 | % | 8.79 | % | 9.17 | % | ||||||||||
| Tier 1 risk-based capital ratio | 11.53 | % | 11.35 | % | 9.66 | % | 9.20 | % | 9.86 | % | ||||||||||
| Common equity Tier 1 ratio | 11.53 | % | 11.35 | % | 9.66 | % | 9.20 | % | 9.86 | % | ||||||||||
| Total risk-based capital ratio | 14.75 | % | 14.63 | % | 12.60 | % | 11.91 | % | 12.71 | % | ||||||||||
| Tangible equity / tangible assets | 8.00 | % | 8.20 | % | 7.79 | % | 8.18 | % | 8.88 | % | ||||||||||
| 1 Preliminary ratios for December 31, 2020 | ||||||||||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | ||||||||||||||||||||
| Condensed Statements of Income | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||||
| Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||||||||||||||||
| Interest income | $ | 15,826 | $ | 13,860 | $ | 13,635 | $ | 13,834 | $ | 13,472 | ||||||||||
| Interest expense | 1,209 | 1,363 | 2,015 | 2,299 | 2,400 | |||||||||||||||
| Net interest income | 14,617 | 12,497 | 11,620 | 11,535 | 11,072 | |||||||||||||||
| Provision for loan losses | 1,579 | 1,582 | 1,511 | 997 | 708 | |||||||||||||||
| Net interest income after provision for loan losses | 13,038 | 10,915 | 10,109 | 10,538 | 10,364 | |||||||||||||||
| Noninterest income | 1,636 | 936 | 1,378 | 1,146 | 1,021 | |||||||||||||||
| Salary and employee benefits | 5,293 | 5,365 | 5,790 | 5,552 | 5,427 | |||||||||||||||
| Occupancy and equipment | 774 | 864 | 900 | 884 | 832 | |||||||||||||||
| Data processing | 624 | 643 | 561 | 518 | 631 | |||||||||||||||
| Professional services | 949 | 514 | 628 | 859 | 726 | |||||||||||||||
| Other expenses | 780 | 846 | 827 | 848 | 946 | |||||||||||||||
| Total noninterest expense | 8,420 | 8,232 | 8,706 | 8,661 | 8,562 | |||||||||||||||
| Income before provision for income taxes | 6,254 | 3,619 | 2,781 | 3,023 | 2,823 | |||||||||||||||
| Income taxes | 1,874 | 1,084 | 711 | 1,116 | 857 | |||||||||||||||
| Net income | $ | 4,380 | $ | 2,535 | $ | 2,070 | $ | 1,907 | $ | 1,966 | ||||||||||
| Net income available to common shareholders | $ | 4,307 | $ | 2,499 | $ | 2,038 | $ | 1,874 | $ | 1,931 | ||||||||||
| Earnings per share | ||||||||||||||||||||
| Basic earnings per share | $ | 0.78 | $ | 0.45 | $ | 0.37 | $ | 0.34 | $ | 0.36 | ||||||||||
| Diluted earnings per share | $ | 0.78 | $ | 0.45 | $ | 0.37 | $ | 0.34 | $ | 0.35 | ||||||||||
| Average shares outstanding | 5,501,272 | 5,499,970 | 5,435,155 | 5,488,197 | 5,414,056 | |||||||||||||||
| Diluted average shares outstanding | 5,540,232 | 5,516,013 | 5,453,597 | 5,555,376 | 5,492,930 | |||||||||||||||
| Performance Ratios | ||||||||||||||||||||
| Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||||||||||||||||
| ROAA | 1.41 | % | 0.79 | % | 0.64 | % | 0.70 | % | 0.77 | % | ||||||||||
| ROAE | 16.30 | % | 9.84 | % | 8.31 | % | 7.86 | % | 8.53 | % | ||||||||||
| ROTE | 16.54 | % | 9.96 | % | 8.42 | % | 7.96 | % | 8.01 | % | ||||||||||
| Net interest margin | 4.74 | % | 3.94 | % | 3.66 | % | 4.46 | % | 4.47 | % | ||||||||||
| Net interest spread | 4.71 | % | 3.90 | % | 3.60 | % | 4.40 | % | 4.40 | % | ||||||||||
| Efficiency ratio | 51.81 | % | 61.28 | % | 66.98 | % | 68.30 | % | 70.80 | % | ||||||||||
| Noninterest expense / average assets | 2.71 | % | 2.58 | % | 2.71 | % | 3.20 | % | 3.33 | % | ||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | ||||||||||||||||||||
| Average Balances | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||||||||||||||||
| Total assets | $ | 1,234,611 | $ | 1,271,363 | $ | 1,293,484 | $ | 1,088,242 | $ | 1,018,944 | ||||||||||
| Earning assets | $ | 1,225,806 | $ | 1,260,834 | $ | 1,278,380 | $ | 1,040,267 | $ | 982,032 | ||||||||||
| Total loans | $ | 1,005,712 | $ | 1,037,195 | $ | 1,008,220 | $ | 881,655 | $ | 845,199 | ||||||||||
| Total deposits | $ | 1,017,389 | $ | 1,036,223 | $ | 1,062,071 | $ | 896,327 | $ | 842,229 | ||||||||||
| Total equity | $ | 106,874 | $ | 102,539 | $ | 100,130 | $ | 97,566 | $ | 91,464 | ||||||||||
| Loan Balances by Type | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||||||||||||||||
| Real estate - investor owned | $ | 243,745 | $ | 231,787 | $ | 234,806 | $ | 246,026 | $ | 245,658 | ||||||||||
| Real estate - owner occupied | 268,193 | 250,286 | 240,587 | 234,771 | 225,778 | |||||||||||||||
| Real estate - multifamily | 69,187 | 64,268 | 66,431 | 67,550 | 68,308 | |||||||||||||||
| Real estate - single family | 67,522 | 59,994 | 57,521 | 58,429 | 59,487 | |||||||||||||||
| Commercial business | 251,711 | 237,316 | 231,832 | 245,610 | 243,438 | |||||||||||||||
| SBA PPP loans | 62,338 | 154,210 | 153,497 | - | - | |||||||||||||||
| Land and construction | 29,377 | 28,277 | 26,327 | 27,044 | 32,151 | |||||||||||||||
| Consumer | 6,797 | 7,559 | 8,046 | 7,300 | 6,172 | |||||||||||||||
| Total loans held for investment | 998,870 | 1,033,697 | 1,019,047 | 886,730 | 880,992 | |||||||||||||||
| Loans held for sale | 9,687 | 9,089 | 7,462 | 7,346 | 4,564 | |||||||||||||||
| Total loans, including loans held for sale | 1,008,557 | 1,042,786 | 1,026,509 | 894,076 | 885,556 | |||||||||||||||
| Allowance for loan losses | (14,262 | ) | (12,682 | ) | (11,100 | ) | (9,598 | ) | (8,601 | ) | ||||||||||
| Net loans | $ | 994,295 | $ | 1,030,104 | $ | 1,015,409 | $ | 884,478 | $ | 876,955 | ||||||||||
| Deposits by Type | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||||||||||||||||
| Non interest bearing DDA | $ | 531,732 | $ | 471,324 | $ | 452,155 | $ | 355,225 | $ | 268,116 | ||||||||||
| Interest bearing DDA | 60,606 | 56,837 | 63,805 | 108,368 | 112,397 | |||||||||||||||
| Savings & MMA | 424,540 | 396,233 | 427,685 | 366,109 | 350,563 | |||||||||||||||
| Retail CD | 7,770 | 8,401 | 8,493 | 8,484 | 6,989 | |||||||||||||||
| Jumbo CD | 88,300 | 95,984 | 84,468 | 124,101 | 112,190 | |||||||||||||||
| Total deposits | $ | 1,112,948 | $ | 1,028,779 | $ | 1,036,606 | $ | 962,287 | $ | 850,255 | ||||||||||
| Asset Quality | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||||||||||||||||
| Total Loans | $ | 1,008,557 | $ | 1,042,786 | $ | 1,026,509 | $ | 894,076 | $ | 885,556 | ||||||||||
| 30-89 day past due loans | $ | - | $ | - | $ | - | $ | 297 | $ | - | ||||||||||
| 90+ day past due loans | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
| Nonaccrual loans | $ | 1,609 | $ | 1,743 | $ | - | $ | 663 | $ | - | ||||||||||
| NPAs / Assets | 0.12 | % | 0.14 | % | 0.00 | % | 0.06 | % | 0.00 | % | ||||||||||
| NPLs / loans & OREO | 0.16 | % | 0.17 | % | 0.00 | % | 0.07 | % | 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 | 1.41 | % | 1.22 | % | 1.08 | % | 1.07 | % | 0.97 | % | ||||||||||
| Allowance for loan losses to nonaccrual loans | 886.39 | % | 727.60 | % | NM | 1447.66 | % | NM | ||||||||||||