- Net income for the quarter was $2.5 million, or $0.45 per diluted share
- Net interest margin for the quarter was 3.94% compared to 3.66% in the prior quarter
- Total loans were $1.0 billion up 2% for the quarter
- Allowance for loan losses (“ALL”) to total loans of 1.22%
- No doubtful credits or charge offs in the quarter and no loan delinquencies at end of quarter
- Non-performing assets represent 0.14% of total assets
- COVID-19 loan deferrals declined to $34.4 million, or 3% of total loans from $97.5 million the prior quarter
- Total deposits were $1.0 billion down 1% for the quarter and up 25% year-over-year
- Non-interest-bearing deposits increased 4% during the quarter and represent 46% of total deposits
- Cost of deposits were 0.27% in the third quarter, compared with 0.51% in the prior quarter
- Non-interest expense declined 5%, compared to the second quarter
LA JOLLA, Calif., Oct. 26, 2020 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM), (“Company”) and CalPrivate Bank (“Bank”) announced unaudited financial results for the third quarter ending September 30, 2020. For the third quarter of 2020, the Company reported net income of $2.5 million or $0.45 per diluted share.
The Bank remains concerned about the safety and prosperity of our employees and clients during the ongoing COVID-19 crisis and during the quarter resumed normal branch hours at most of our locations. The Bank has $154.2 million in SBA PPP loans outstanding and worked with clients during the quarter to submit applications to the SBA for loan forgiveness. By the end of the quarter 206 loans representing $99.8 million in loan balances and $3.2 million in potential loan fees had been submitted to the SBA.
As of September 2020, the number of COVID-19 related loan deferrals decreased to 16 loans totaling $34.4 million or 3% of total loans from 56 loans and $97.5 million in the second quarter of 2020. The Bank had no past due loans at the end of the quarter and two loans totaling $1.7 million on non-accrual. Criticized assets were $4.9 million, consisting of 5 relationships all related to the impacts of COVID-19. Classified assets increased $3.6 million to $7.7 million at quarter end, of which the largest loan was a well secured $3.5 million credit. There were no doubtful credits or charge offs in the quarter.
The Allowance for Loan Losses increased $1.6 million to $12.7 million in the quarter with a resulting coverage ratio of 1.22% of total loans outstanding, including PPP loans, compared to $11.1 million or 1.08% at the second quarter of 2020 and $7.9 million or 0.96% at the third 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. Excluding the impact of PPP loans, the coverage ratio on the loan portfolio increased to 1.43%.
Rick Sowers, President and CEO of the Company and the Bank stated, “The Team continues to focus on the safety and prosperity of our clients and the communities we serve through our Relationship based business model. We are pleased with the continued progress we are making in increasing our operating leverage, reducing expenses, protecting our net interest margin and growing the Bank in a safe and sound manner. The third quarter included higher gain on sale from loans generated by our SBA Team and a significant reduction in deposit and funding costs.”
The Company reported net income of $2.5 million or $0.45 per diluted share for the quarter ended September 30, 2020 compared with net income of $2.1 million or $0.37 per diluted share in the second quarter and a loss of $5 million or $0.89 per diluted share for the same period last year. Net interest income was $12.5 million for the third quarter of 2020, representing an $877 thousand or 7.50%, increase compared to the second quarter of 2020 and a $1.5 million or 13.9% increase, compared to the same period in 2019. Net interest margin for the third quarter of 2020 was 3.94% compared with 3.66% for the second quarter of 2020 and 4.67% for the same period in 2019. The increase in the net interest margin for the quarter was attributable to lower funding costs as a result of proactive repositioning and repricing of the deposit portfolio. The yield on earning assets for the third quarter of 2020 was 4.37% compared with 4.29% in the second quarter and 5.63% for the same period in 2019. The yield on loans for the quarter decreased to 5.21% compared to 5.30% in the second quarter of this year and decreased from 6.07% in the third quarter of 2019. The cost of total funding sources was 0.47% for the quarter compared with 0.69% in the second quarter and 1.04% for the same period in 2019.
Non-interest income was $936 thousand for the third quarter of 2020, representing a $442 thousand or 32% decrease compared to the second quarter of 2020 and a $352 thousand or 60% increase compared to the same period in 2019. The decrease in non-interest income for the quarter is due to $751 thousand in security gains recorded in the second quarter partially offset by a $344 thousand increase in revenues from SBA loan sales. The increase in non-interest income compared to a year ago is primarily due to $391 thousand in additional gains from the sale of SBA loans partially offset by $125 thousand in securities gains recorded in the third quarter of 2019. SBA loan sales for the third quarter were $6.2 million with a 13.8% trade premium compared with $3.4 million with a 10.4% trade premium in the second quarter of 2020 and $4.4 million with a 10.5% trade premium in the third quarter of 2019.
Non-interest expense was $8.2 million for the third quarter of 2020 representing a $474 thousand decrease, or 5%, compared to the second quarter of 2020 and a $699 thousand, or 8% decrease, compared to the same period in 2019. The decrease in second quarter expenses was primarily due to decreases in salaries and benefits and professional fees. The decrease compared to the first quarter of 2019 was due to decreases in salaries and benefits and professional services partially offset by an increase in other expense.
The Company reported total assets of $1.2 billion at September 30, 2020, representing a decrease of $29.8 million or 2% compared to the second quarter of 2020 and an increase of $244 million or 24% compared to the same period in 2019. The decrease in assets was largely due to repaying term FHLB advances offset by a $16.2 million, or 2% increase in loans, from the second quarter to $1.0 billion at September 30, 2020 and increased $221.8 million, or 27%, from the third quarter of 2019. Substantially all of the loan growth for the quarter was related to real estate loans.
“The Company continues to perform strongly. During the quarter, the CEO transition announced in January was completed. Rick Sowers is now President and CEO of both PBAM and CalPrivate Bank. We again thank Tom Wornham for leading the organization to where we are today,” said Selwyn Isakow, Chairman of the Board of PBAM and the Bank. “The third quarter was highlighted by a higher net interest margin, improved efficiency ratio and greater clarity on the strength of the loan portfolio. The macro-environment in which we operate remains uncertain. Caution and diligence are our focus as we plan on taking advantage of dislocations in the industry to expand our client base with additional relationship-driven prospects seeking superior service and more creative solutions to their challenges and opportunities, provided by exceptional bankers.”
On October 21, PBAM appointed Leda Csanka to the board of CalPrivate Bank, increasing the number of directors to thirteen. Ms. Csanka brings over 30 years of deep technology experience within financial services. She has held diverse IT and leadership roles with a multinational banking and financial services firm, having tenures within programming, architecture, infrastructure, standardization and strategic leadership for retail, direct and commercial banking, investment banking, asset management and insurance services. Ms. Csanka later became Chief Technology Officer and a member of the executive team of a leading broker-dealer that provided retail financial services to investment programs of banks and credit unions. Isakow stated, “We welcome Leda to the Bank board and are delighted to add someone who has such a depth of knowledge and understanding of technology in our industry at a time when our systems are integral to future exceptional client service and bank efficiency.”
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) | |||||||||||||||||||||||
September 30, 2020 | June 30, 2020 | Dollar change | Percentage change | September 30, 2019 | Dollar change | Percentage change | |||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and due from banks | $ | 10,985 | $ | 13,641 | $ | (2,656 | ) | -19.5 | % | $ | 29,480 | $ | (18,495 | ) | -62.7 | % | |||||||
Interest-bearing deposits in other financial institutions | 930 | 1,200 | (270 | ) | -22.5 | % | 563 | 367 | 65.2 | % | |||||||||||||
Interest-bearing deposits at Federal Reserve Bank | 143,431 | 184,405 | (40,974 | ) | -22.2 | % | 57,810 | 85,621 | 148.1 | % | |||||||||||||
Total cash and due from banks | 155,346 | 199,246 | (43,900 | ) | -22.0 | % | 87,853 | 67,493 | 76.8 | % | |||||||||||||
Interest-bearing time deposits with other institutions | 5,760 | 5,758 | 2 | 0.0 | % | 2,255 | 3,505 | 155.4 | % | ||||||||||||||
Investment securities available for sale | 26,525 | 27,664 | (1,139 | ) | -4.1 | % | 73,170 | (46,645 | ) | -63.7 | % | ||||||||||||
Loans | 1,042,786 | 1,026,509 | 16,277 | 1.6 | % | 820,989 | 221,797 | 27.0 | % | ||||||||||||||
Allowance for loan losses | (12,682 | ) | (11,100 | ) | (1,582 | ) | 14.3 | % | (7,893 | ) | (4,789 | ) | 60.7 | % | |||||||||
Net loans | 1,030,104 | 1,015,409 | 14,695 | 1.4 | % | 813,096 | 217,008 | 26.7 | % | ||||||||||||||
Federal Home Loan Bank stock, at cost | 4,602 | 4,602 | - | 0.0 | % | 4,060 | 542 | 13.3 | % | ||||||||||||||
Right of use asset | 5,186 | 5,632 | (446 | ) | -7.9 | % | 6,877 | (1,691 | ) | -24.6 | % | ||||||||||||
Premises and equipment, net | 2,859 | 3,055 | (196 | ) | -6.4 | % | 2,947 | (88 | ) | -3.0 | % | ||||||||||||
Other intangible assets | 1,364 | 1,281 | 83 | 6.5 | % | 978 | 386 | 39.5 | % | ||||||||||||||
Deferred tax asset | 4,141 | 4,141 | - | 0.0 | % | 4,409 | (268 | ) | -6.1 | % | |||||||||||||
Accrued interest receivable | 3,883 | 3,556 | 327 | 9.2 | % | 2,569 | 1,314 | 51.1 | % | ||||||||||||||
Other assets | 4,424 | 3,668 | 756 | 20.6 | % | 1,771 | 2,653 | 149.8 | % | ||||||||||||||
Total assets | $ | 1,244,194 | $ | 1,274,012 | $ | (29,818 | ) | -2.3 | % | $ | 999,985 | $ | 244,209 | 24.4 | % | ||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Noninterest bearing | $ | 471,324 | $ | 452,155 | $ | 19,169 | 4.2 | % | $ | 266,205 | $ | 205,119 | 77.1 | % | |||||||||
Interest Bearing | 557,455 | 584,451 | (26,996 | ) | -4.6 | % | 557,800 | (345 | ) | -0.1 | % | ||||||||||||
Total deposits | 1,028,779 | 1,036,606 | (7,827 | ) | -0.8 | % | 824,005 | 204,774 | 24.9 | % | |||||||||||||
FHLB borrowings | 80,000 | 105,000 | (25,000 | ) | -23.8 | % | 55,000 | 25,000 | 45.5 | % | |||||||||||||
Other borrowings | 17,938 | 17,936 | 2 | 0.0 | % | 17,930 | 8 | 0.0 | % | ||||||||||||||
Accrued interest payable and other liabilities | 14,227 | 14,097 | 130 | 0.9 | % | 9,779 | 4,448 | 45.5 | % | ||||||||||||||
Total liabilities | 1,140,944 | 1,173,639 | (32,695 | ) | -2.8 | % | 906,714 | 234,230 | 25.8 | % | |||||||||||||
Shareholders' equity | |||||||||||||||||||||||
Common stock | 69,540 | 69,512 | 28 | 0.0 | % | 68,804 | 736 | 1.1 | % | ||||||||||||||
Additional paid-in capital | 3,230 | 3,002 | 228 | 7.6 | % | 2,997 | 233 | 7.8 | % | ||||||||||||||
Retained earnings | 29,521 | 26,984 | 2,537 | 9.4 | % | 20,917 | 8,604 | 41.1 | % | ||||||||||||||
Accumulated other comprehensive income | 959 | 875 | 84 | 9.6 | % | 553 | 406 | 73.4 | % | ||||||||||||||
Total stockholders' equity | 103,250 | 100,373 | 2,877 | 2.9 | % | 93,271 | 9,979 | 10.7 | % | ||||||||||||||
Total liabilities and stockholders' equity | $ | 1,244,194 | $ | 1,274,012 | $ | (29,818 | ) | -2.3 | % | $ | 999,985 | $ | 244,209 | 24.4 | % |
PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||||||
For the three months ended | |||||||||||||||||||||
September 30, 2020 | June 30, 2020 | Dollar change | Percentage change | September 30, 2019 | Dollar change | Percentage change | |||||||||||||||
Interest Income | |||||||||||||||||||||
Loans | $ | 13,578 | $ | 13,293 | $ | 285 | 2.1 | % | $ | 12,497 | $ | 1,081 | 8.7 | % | |||||||
Investment securities | 231 | 251 | (20 | ) | -8.0 | % | 544 | (313 | ) | -57.5 | % | ||||||||||
Deposits in other financial institutions | 51 | 91 | (40 | ) | -44.0 | % | 181 | (130 | ) | -71.8 | % | ||||||||||
Total interest income | 13,860 | 13,635 | 225 | 1.7 | % | 13,222 | 638 | 4.8 | % | ||||||||||||
Interest Expense | |||||||||||||||||||||
Deposits | 707 | 1,356 | (649 | ) | -47.9 | % | 1,605 | (898 | ) | -56.0 | % | ||||||||||
Borrowings | 656 | 659 | (3 | ) | -0.5 | % | 648 | 8 | 1.2 | % | |||||||||||
Total interest expense | 1,363 | 2,015 | (652 | ) | -32.4 | % | 2,253 | (890 | ) | -39.5 | % | ||||||||||
Net interest income | 12,497 | 11,620 | 877 | 7.5 | % | 10,969 | 1,528 | 13.9 | % | ||||||||||||
Provision for loan losses | 1,582 | 1,511 | 71 | 4.7 | % | 9,737 | (8,155 | ) | -83.8 | % | |||||||||||
Net interest income after provision for loan losses | 10,915 | 10,109 | 806 | 8.0 | % | 1,232 | 9,683 | 786.0 | % | ||||||||||||
Noninterest income: | |||||||||||||||||||||
Service charges on deposit accounts | 141 | 143 | (2 | ) | -1.4 | % | 137 | 4 | 2.9 | % | |||||||||||
Net gain on sale of loans | 554 | 210 | 344 | 163.8 | % | 163 | 391 | 239.9 | % | ||||||||||||
Gain on sale of investment securities | 0 | 751 | (751 | ) | -100.0 | % | 125 | (125 | ) | -100.0 | % | ||||||||||
Other noninterest income | 241 | 274 | (33 | ) | -12.0 | % | 159 | 82 | 51.6 | % | |||||||||||
Total noninterest income | 936 | 1,378 | (442 | ) | -32.1 | % | 584 | 352 | 60.3 | % | |||||||||||
Noninterest expense: | |||||||||||||||||||||
Salary and employee benefits | 5,365 | 5,790 | (425 | ) | -7.3 | % | 6,341 | (976 | ) | -15.4 | % | ||||||||||
Occupancy and equipment | 864 | 900 | (36 | ) | -4.0 | % | 793 | 71 | 9.0 | % | |||||||||||
Data processing | 643 | 561 | 82 | 14.6 | % | 588 | 55 | 9.4 | % | ||||||||||||
Professional services | 514 | 628 | (114 | ) | -18.2 | % | 639 | (125 | ) | -19.6 | % | ||||||||||
Other expenses | 846 | 827 | 19 | 2.3 | % | 570 | 276 | 48.4 | % | ||||||||||||
Total noninterest expense | 8,232 | 8,706 | (474 | ) | -5.4 | % | 8,931 | (699 | ) | -7.8 | % | ||||||||||
Income (loss) before provision for income taxes | 3,619 | 2,781 | 838 | 30.1 | % | (7,115 | ) | 10,734 | -150.9 | % | |||||||||||
Provision for income taxes | 1,084 | 711 | 373 | 52.5 | % | (2,081 | ) | 3,165 | -152.1 | % | |||||||||||
Net income (loss) | $ | 2,535 | $ | 2,070 | $ | 465 | 22.5 | % | $ | (5,034 | ) | $ | 7,569 | -150.4 | % | ||||||
Net income (loss) available to common shareholders | $ | 2,499 | $ | 2,038 | $ | 461 | 22.6 | % | $ | (4,950 | ) | $ | 7,449 | -150.5 | % | ||||||
Earnings (loss) per share | |||||||||||||||||||||
Basic earnings (loss) per share | $ | 0.45 | $ | 0.37 | $ | 0.08 | 21.6 | % | $ | (0.91 | ) | $ | 1.36 | -149.5 | % | ||||||
Diluted earnings (loss) per share | $ | 0.45 | $ | 0.37 | $ | 0.08 | 21.6 | % | $ | (0.89 | ) | $ | 1.34 | -150.6 | % | ||||||
Average shares outstanding | 5,499,970 | 5,435,155 | 64,815 | 1.2 | % | 5,465,278 | 34,692 | 0.6 | % | ||||||||||||
Diluted average shares outstanding | 5,516,013 | 5,453,597 | 62,416 | 1.1 | % | 5,563,931 | (47,918 | ) | -0.9 | % |
PRIVATE BANCORP OF AMERICA, INC. | ||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||
(Unaudited) | ||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||
For the nine months ended | ||||||||||||
September 30, 2020 | September 30, 2019 | Dollar change | Percentage change | |||||||||
Interest Income | ||||||||||||
Loans | $ | 39,999 | $ | 34,449 | $ | 5,550 | 16.1 | % | ||||
Investment securities | 883 | 1,818 | (935 | ) | -51.4 | % | ||||||
Deposits in other financial institutions | 446 | 440 | 6 | 1.4 | % | |||||||
Total interest income | 41,328 | 36,707 | 4,621 | 12.6 | % | |||||||
Interest Expense | ||||||||||||
Deposits | 3,773 | 4,152 | (379 | ) | -9.1 | % | ||||||
Borrowings | 1,904 | 1,863 | 41 | 2.2 | % | |||||||
Total interest expense | 5,677 | 6,015 | (338 | ) | -5.6 | % | ||||||
Net interest income | 35,651 | 30,692 | 4,959 | 16.2 | % | |||||||
Provision for loan losses | 4,091 | 11,122 | (7,031 | ) | -63.2 | % | ||||||
Net interest income after provision for loan losses | 31,560 | 19,570 | 11,990 | 61.3 | % | |||||||
Noninterest income: | ||||||||||||
Service charges on deposit accounts | 457 | 347 | 110 | 31.7 | % | |||||||
Net gain on sale of loans | 1,444 | 817 | 627 | 76.7 | % | |||||||
Gain on sale of investment securities | 751 | 150 | 601 | 400.7 | % | |||||||
Other noninterest income | 808 | 428 | 380 | 88.8 | % | |||||||
Total noninterest income | 3,460 | 1,742 | 1,718 | 98.6 | % | |||||||
Noninterest expense: | ||||||||||||
Salary and employee benefits | 16,707 | 17,462 | (755 | ) | -4.3 | % | ||||||
Occupancy and equipment | 2,649 | 2,109 | 540 | 25.6 | % | |||||||
Data processing | 1,721 | 1,602 | 119 | 7.4 | % | |||||||
Professional services | 2,001 | 1,395 | 606 | 43.4 | % | |||||||
Other expenses | 2,521 | 2,153 | 368 | 17.1 | % | |||||||
Total noninterest expense | 25,599 | 24,721 | 878 | 3.6 | % | |||||||
Income (loss) before provision for income taxes | 9,421 | (3,409 | ) | 12,830 | -376.4 | % | ||||||
Provision for income taxes | 2,910 | (1,014 | ) | 3,924 | -387.0 | % | ||||||
Net income (loss) | $ | 6,511 | $ | (2,395 | ) | $ | 8,906 | -371.9 | % | |||
Net income (loss) available to common shareholders | $ | 6,407 | $ | (2,351 | ) | $ | 8,758 | -372.5 | % | |||
Earnings (loss) per share | ||||||||||||
Basic earnings (loss) per share | $ | 1.17 | $ | (0.46 | ) | $ | 1.63 | -354.3 | % | |||
Diluted earnings (loss) per share | $ | 1.16 | $ | (0.45 | ) | $ | 1.61 | -357.8 | % | |||
Average shares outstanding | 5,492,123 | 5,163,512 | 328,611 | 6.4 | % | |||||||
Diluted average shares outstanding | 5,522,929 | 5,262,165 | 260,764 | 5.0 | % |
PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||||||
Consolidated average balance sheet, interest, yield and rates | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
For the three months ended | |||||||||||||||||||||||
September 30, 2020 | June 30, 2020 | September 30, 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 | $ | 191,912 | $ | 51 | 0.11 | % | $ | 231,621 | $ | 91 | 0.16 | % | $ | 35,658 | $ | 181 | 2.01 | % | |||||
Investment securities | 31,727 | 231 | 2.91 | % | 38,539 | 251 | 2.61 | % | 79,842 | 544 | 2.73 | % | |||||||||||
Loans | 1,037,195 | 13,578 | 5.21 | % | 1,008,220 | 13,293 | 5.30 | % | 816,281 | 12,497 | 6.07 | % | |||||||||||
Total interest-earning assets | 1,260,834 | 13,860 | 4.37 | % | 1,278,380 | 13,635 | 4.29 | % | 931,781 | 13,222 | 5.63 | % | |||||||||||
Noninterest-earning assets | 10,529 | 15,104 | 39,083 | ||||||||||||||||||||
Total Assets | $ | 1,271,363 | $ | 1,293,484 | $ | 970,864 | |||||||||||||||||
Interest-Bearing Liabilities | |||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 59,624 | $ | 19 | 0.13 | % | $ | 73,509 | $ | 26 | 0.14 | % | $ | 37,644 | $ | 69 | 0.73 | % | |||||
Money market | 402,286 | 349 | 0.35 | % | 394,523 | 476 | 0.49 | % | 372,008 | 959 | 1.02 | % | |||||||||||
Savings deposits | 9,024 | 2 | 0.09 | % | 8,863 | 2 | 0.09 | % | 7,099 | 5 | 0.28 | % | |||||||||||
Certificates of deposit | 97,444 | 337 | 1.38 | % | 126,545 | 852 | 2.71 | % | 100,705 | 572 | 2.25 | % | |||||||||||
Total Interest-Bearing Deposits | 568,378 | 707 | 0.49 | % | 603,440 | 1,356 | 0.90 | % | 517,456 | 1,605 | 1.23 | % | |||||||||||
FHLB advances | 100,924 | 384 | 1.51 | % | 100,385 | 387 | 1.55 | % | 63,301 | 376 | 2.36 | % | |||||||||||
Other borrowings | 17,937 | 272 | 6.07 | % | 17,934 | 272 | 6.07 | % | 17,929 | 272 | 6.07 | % | |||||||||||
Total Interest-Bearing Liabilities | 118,861 | 656 | 2.20 | % | 118,319 | 659 | 2.24 | % | 81,230 | 648 | 3.16 | % | |||||||||||
Noninterest-bearing deposits | 467,845 | 458,631 | 261,365 | ||||||||||||||||||||
Total Funding Sources | 1,155,084 | 1,363 | 0.47 | % | 1,180,390 | 2,015 | 0.69 | % | 860,051 | 2,253 | 1.04 | % | |||||||||||
Noninterest-bearing liabilities | 13,740 | 12,964 | 12,422 | ||||||||||||||||||||
Shareholders' equity | 102,539 | 100,130 | 98,391 | ||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 1,271,363 | $ | 1,293,484 | $ | 970,864 | |||||||||||||||||
Net interest spread | 3.90 | % | 3.60 | % | 4.59 | % | |||||||||||||||||
Net interest income | $ | 12,497 | $ | 11,620 | $ | 10,969 | |||||||||||||||||
Net interest margin | 3.94 | % | 3.66 | % | 4.67 | % |
PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||
Condensed Balance Sheets | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||||
Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |||||||||||||||
Assets | |||||||||||||||||||
Cash and due from banks | $ | 155,346 | $ | 199,246 | $ | 221,154 | $ | 105,610 | $ | 87,853 | |||||||||
Interest-bearing time deposits with other institutions | 5,760 | 5,758 | 5,756 | 5,758 | 2,255 | ||||||||||||||
Investment securities | 26,525 | 27,664 | 49,327 | 51,179 | 73,170 | ||||||||||||||
Loans | 1,042,786 | 1,026,509 | 894,076 | 885,556 | 820,989 | ||||||||||||||
Allowance for loan losses | (12,682 | ) | (11,100 | ) | (9,598 | ) | (8,601 | ) | (7,893 | ) | |||||||||
Net loans | 1,030,104 | 1,015,409 | 884,478 | 876,955 | 813,096 | ||||||||||||||
Right of use asset | 5,186 | 5,632 | 6,022 | 6,452 | 6,877 | ||||||||||||||
Premises and equipment, net | 2,859 | 3,055 | 3,052 | 3,165 | 2,947 | ||||||||||||||
Other assets and interest receivable | 18,414 | 17,248 | 16,092 | 16,868 | 13,787 | ||||||||||||||
Total assets | $ | 1,244,194 | $ | 1,274,012 | $ | 1,185,881 | $ | 1,065,987 | $ | 999,985 | |||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Noninterest Bearing | $ | 471,324 | $ | 452,155 | $ | 355,225 | $ | 268,116 | $ | 266,205 | |||||||||
Interest Bearing | 557,455 | 584,451 | 607,062 | 582,139 | 557,800 | ||||||||||||||
Total Deposits | 1,028,779 | 1,036,606 | 962,287 | 850,255 | 824,005 | ||||||||||||||
Borrowings | 97,938 | 122,936 | 112,934 | 107,932 | 72,930 | ||||||||||||||
Accrued interest payable and other liabilities | 14,227 | 14,097 | 12,497 | 12,120 | 9,779 | ||||||||||||||
Total liabilities | 1,140,944 | 1,173,639 | 1,087,718 | 970,307 | 906,714 | ||||||||||||||
Shareholders' equity | |||||||||||||||||||
Common stock | 69,540 | 69,512 | 69,165 | 69,159 | 68,804 | ||||||||||||||
Additional paid-in capital | 3,230 | 3,002 | 3,254 | 3,048 | 2,997 | ||||||||||||||
Retained earnings | 29,521 | 26,984 | 24,839 | 22,905 | 20,917 | ||||||||||||||
Accumulated other comprehensive income | 959 | 875 | 905 | 568 | 553 | ||||||||||||||
Total shareholders' equity | 103,250 | 100,373 | 98,163 | 95,680 | 93,271 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 1,244,194 | $ | 1,274,012 | $ | 1,185,881 | $ | 1,065,987 | $ | 999,985 | |||||||||
Book value per common share | $ | 18.50 | $ | 17.99 | $ | 17.57 | $ | 17.15 | $ | 16.84 | |||||||||
Tangible book value per common share | $ | 18.26 | $ | 17.76 | $ | 17.35 | $ | 16.96 | $ | 16.66 | |||||||||
Shares outstanding | 5,580,456 | 5,578,884 | 5,586,270 | 5,577,968 | 5,539,938 | ||||||||||||||
Regulatory Capital Ratios (PBAM) 1 | |||||||||||||||||||
Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |||||||||||||||
Tier 1 leverage ratio | 7.92 | % | 7.57 | % | 8.79 | % | 9.17 | % | 9.54 | % | |||||||||
Tier 1 risk-based capital ratio | 11.35 | % | 9.66 | % | 9.20 | % | 9.86 | % | 10.24 | % | |||||||||
Common equity Tier 1 ratio | 11.35 | % | 9.66 | % | 9.20 | % | 9.86 | % | 10.24 | % | |||||||||
Total risk-based capital ratio | 14.63 | % | 12.60 | % | 11.91 | % | 12.71 | % | 13.09 | % | |||||||||
Tangible equity / tangible assets | 8.20 | % | 7.79 | % | 8.18 | % | 8.88 | % | 9.24 | % | |||||||||
1 Preliminary ratios for Sept 30, 2020 |
PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||
Condensed Statements of Income | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||||||
Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |||||||||||||||
Interest income | $ | 13,860 | $ | 13,635 | $ | 13,834 | $ | 13,472 | $ | 13,222 | |||||||||
Interest expense | 1,363 | 2,015 | 2,299 | 2,400 | 2,253 | ||||||||||||||
Net interest income | 12,497 | 11,620 | 11,535 | 11,072 | 10,969 | ||||||||||||||
Provision for loan losses | 1,582 | 1,511 | 997 | 708 | 9,737 | ||||||||||||||
Net interest income after provision for loan losses | 10,915 | 10,109 | 10,538 | 10,364 | 1,232 | ||||||||||||||
Noninterest income | 936 | 1,378 | 1,146 | 1,021 | 584 | ||||||||||||||
Salary and employee benefits | 5,365 | 5,790 | 5,552 | 5,427 | 6,341 | ||||||||||||||
Occupancy and equipment | 864 | 900 | 884 | 832 | 793 | ||||||||||||||
Data processing | 643 | 561 | 518 | 631 | 588 | ||||||||||||||
Professional services | 514 | 628 | 859 | 726 | 639 | ||||||||||||||
Other expenses | 846 | 827 | 848 | 946 | 570 | ||||||||||||||
Total noninterest expense | 8,232 | 8,706 | 8,661 | 8,562 | 8,931 | ||||||||||||||
Income (loss) before provision for income taxes | 3,619 | 2,781 | 3,023 | 2,823 | (7,115 | ) | |||||||||||||
Income taxes | 1,084 | 711 | 1,116 | 857 | (2,081 | ) | |||||||||||||
Net income (loss) | $ | 2,535 | $ | 2,070 | $ | 1,907 | $ | 1,966 | $ | (5,034 | ) | ||||||||
Net income (loss) available to common shareholders | $ | 2,499 | $ | 2,038 | $ | 1,874 | $ | 1,931 | $ | (4,950 | ) | ||||||||
Earnings (loss) per share | |||||||||||||||||||
Basic earnings (loss) per share | $ | 0.45 | $ | 0.37 | $ | 0.34 | $ | 0.36 | $ | (0.91 | ) | ||||||||
Diluted earnings (loss) per share | $ | 0.45 | $ | 0.37 | $ | 0.34 | $ | 0.35 | $ | (0.89 | ) | ||||||||
Average shares outstanding | 5,499,970 | 5,435,155 | 5,488,197 | 5,414,056 | 5,465,278 | ||||||||||||||
Diluted average shares outstanding | 5,516,013 | 5,453,597 | 5,555,376 | 5,492,930 | 5,563,931 | ||||||||||||||
Performance Ratios | |||||||||||||||||||
Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |||||||||||||||
ROAA | 0.79 | % | 0.64 | % | 0.70 | % | 0.77 | % | -2.06 | % | |||||||||
ROAE | 9.84 | % | 8.31 | % | 7.86 | % | 8.53 | % | -20.30 | % | |||||||||
ROTE | 9.96 | % | 8.42 | % | 7.96 | % | 8.01 | % | -20.50 | % | |||||||||
Net interest margin | 3.94 | % | 3.66 | % | 4.46 | % | 4.47 | % | 4.67 | % | |||||||||
Net interest spread | 3.90 | % | 3.60 | % | 4.40 | % | 4.40 | % | 4.59 | % | |||||||||
Efficiency ratio | 61.28 | % | 66.98 | % | 68.30 | % | 70.80 | % | 77.30 | % | |||||||||
Noninterest expense / average assets | 2.58 | % | 2.71 | % | 3.20 | % | 3.33 | % | 3.65 | % | |||||||||
Average assets | $ | 1,271,363 | $ | 1,088,242 | $ | 1,018,944 | $ | 970,864 | $ | 897,120 | |||||||||
4.021978022 | 4.021978022 | 3.967391304 | 3.967391304 | 4.010989011 | |||||||||||||||
Salary and employee benefits | 1.70 | % | 2.14 | % | 2.16 | % | 2.22 | % | 2.84 | % | |||||||||
Occupancy and equipment | 0.27 | % | 0.33 | % | 0.34 | % | 0.34 | % | 0.35 | % | |||||||||
Data processing | 0.20 | % | 0.21 | % | 0.20 | % | 0.26 | % | 0.26 | % | |||||||||
Professional services | 0.16 | % | 0.23 | % | 0.33 | % | 0.30 | % | 0.29 | % | |||||||||
Other expenses | 0.27 | % | 0.31 | % | 0.33 | % | 0.39 | % | 0.25 | % | |||||||||
2.60 | % | 3.22 | % | 3.37 | % | 3.50 | % | 3.99 | % |
PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||
Average Balances | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |||||||||||||||
Total assets | $ | 1,271,363 | $ | 1,293,484 | $ | 1,088,242 | $ | 1,018,944 | $ | 970,864 | |||||||||
Earning assets | $ | 1,260,834 | $ | 1,278,380 | $ | 1,040,267 | $ | 982,032 | $ | 931,781 | |||||||||
Total loans | $ | 1,037,195 | $ | 1,008,220 | $ | 881,655 | $ | 845,199 | $ | 816,281 | |||||||||
Total deposits | $ | 1,036,223 | $ | 1,062,071 | $ | 896,327 | $ | 842,229 | $ | 778,821 | |||||||||
Total equity | $ | 102,539 | $ | 100,130 | $ | 97,566 | $ | 91,464 | $ | 98,391 | |||||||||
Loan Balances by Type | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |||||||||||||||
Real estate - investor owned | $ | 231,787 | $ | 234,806 | $ | 246,026 | $ | 245,658 | $ | 247,953 | |||||||||
Real estate - owner occupied | 250,286 | 240,587 | 234,771 | 225,778 | 192,739 | ||||||||||||||
Real estate - multifamily | 64,268 | 66,431 | 67,550 | 68,308 | 68,536 | ||||||||||||||
Real estate - single family | 59,994 | 57,521 | 58,429 | 59,487 | 59,782 | ||||||||||||||
Commercial business | 237,316 | 231,832 | 245,610 | 243,438 | 204,166 | ||||||||||||||
SBA PPP loans | 154,210 | 153,497 | - | - | - | ||||||||||||||
Land and construction | 28,277 | 26,327 | 27,044 | 32,151 | 37,918 | ||||||||||||||
Consumer | 7,559 | 8,046 | 7,300 | 6,172 | 5,585 | ||||||||||||||
Total loans held for investment | 1,033,697 | 1,019,047 | 886,730 | 880,992 | 816,679 | ||||||||||||||
Loans held for sale | 9,089 | 7,462 | 7,346 | 4,564 | 4,310 | ||||||||||||||
Total loans, including loans held for sale | 1,042,786 | 1,026,509 | 894,076 | 885,556 | 820,989 | ||||||||||||||
Allowance for loan losses | (12,682 | ) | (11,100 | ) | (9,598 | ) | (8,601 | ) | (7,893 | ) | |||||||||
Net loans | $ | 1,030,104 | $ | 1,015,409 | $ | 884,478 | $ | 876,955 | $ | 813,096 | |||||||||
Deposits by Type | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |||||||||||||||
Non interest bearing DDA | $ | 471,324 | $ | 452,155 | $ | 355,225 | $ | 268,116 | $ | 266,205 | |||||||||
Interest bearing DDA | 56,837 | 63,805 | 108,368 | 112,397 | 47,805 | ||||||||||||||
Savings & MMA | 396,233 | 427,685 | 366,109 | 350,563 | 394,128 | ||||||||||||||
Retail CD | 8,401 | 8,493 | 8,484 | 6,989 | 7,132 | ||||||||||||||
Jumbo CD | 95,984 | 84,468 | 124,101 | 112,190 | 108,735 | ||||||||||||||
Total deposits | $ | 1,028,779 | $ | 1,036,606 | $ | 962,287 | $ | 850,255 | $ | 824,005 | |||||||||
Asset Quality | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |||||||||||||||
Total Loans | $ | 1,042,786 | $ | 1,026,509 | $ | 894,076 | $ | 885,556 | $ | 820,989 | |||||||||
30-89 day past due loans | $ | - | $ | - | $ | 297 | $ | - | $ | - | |||||||||
90+ day past due loans | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
Nonaccrual loans | $ | 1,743 | $ | - | $ | 663 | $ | - | $ | - | |||||||||
NPAs / Assets | 0.14 | % | 0.00 | % | 0.06 | % | 0.00 | % | 0.00 | % | |||||||||
NPLs / loans & OREO | 0.17 | % | 0.00 | % | 0.07 | % | 0.00 | % | 0.00 | % | |||||||||
Net quarterly charge-offs | $ | - | $ | - | $ | - | $ | - | $ | 9,481 | |||||||||
Net charge-offs/avg loans (annualized) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 4.65 | % | |||||||||
Allowance for loan losses to loans | 1.22 | % | 1.08 | % | 1.07 | % | 0.97 | % | 0.96 | % | |||||||||
Allowance for loan losses to nonaccrual loans | 727.60 | % | NM | 1447.66 | % | NM | NM |