Private Bancorp of America, Inc. Announces Record Third Quarter 2021 Financial Results

La Jolla, California, UNITED STATES


Third Quarter Highlights

  • Net income for the quarter was $5.1 million, compared to $4.3 million for Q2’21
  • Diluted earnings per share of $0.89, compared to $0.75 for Q2’21
  • Net interest margin of 4.39%, compared to 4.03% for Q2’21
  • Cost of funding sources was 0.22%, compared to 0.46% for Q2’21
  • Gross loans increased $43.3 million during the quarter, up 3.7%; excluding PPP loans, gross loans increased $79.8 million, up 7.4%
  • Non-interest bearing demand deposits grew $42.3 million to $646.2 million, representing 49.2% of total deposits
  • Proactively decreased corporate real estate footprint resulting in a pre-tax impairment charge of $670 thousand, which will result in future cost savings
  • Tangible book value per share of $21.27, up $0.94 per share or 4.6% from Q2’21
  • Well capitalized Tier 1 risk-based capital ratio of 10.64% (preliminary)

LA JOLLA, Calif., Oct. 22, 2021 (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, 2021. The Company reported net income of $5.1 million, or $0.89 per diluted share, for the third quarter of 2021 compared to $4.3 million, or $0.75 per diluted share for the second quarter of 2021. Net income for the nine months ending September 30, 2021, was $13.9 million, or $2.45 per diluted share, compared to $6.5 million or $1.16 per diluted share for the same period in 2020.

Rick Sowers, President and CEO of the Company and the Bank stated, “Despite the global pandemic that continues to weigh on our Clients and the economy, our third quarter results demonstrate the progress we have made executing on our core business plan while continuing to provide Distinctly Different superior levels of service to our Clients. Our Team, including new hires, continues to focus on financial performance and the continued growth of the CalPrivate franchise in our core markets. The third quarter reflected strong organic loan production and continued gain on sale of SBA loans. We are pleased with the financial results and have tremendous confidence in our Team and their ability to execute on behalf of our Clients and Stakeholders.”

Sowers continued, “We continue to make progress in improving our operating leverage while strategically adding resources and technology to scale and grow our market share. We are excited about the implementation of new technologies including the nCino Bank Operating System that we expect will drive efficiencies. We are also funding fintech companies focusing on services and solutions for community banks through our investment in JAM FINTOP Banktech, LP.”

“PBAM’s third quarter of 2021 demonstrated the resilience of our franchise, the continued dedication of our employees, and the tremendous success we have been able to achieve for our Clients and Stakeholders,” said Selwyn Isakow, Chairman of the Board of the Company and the Bank.

Isakow added, “These financial results attest to CalPrivate’s ability to uniquely differentiate itself in the competitive Southern California landscape. The Bank continues to add tangible book value and is well-positioned for sustainable future growth.”

STATEMENT OF INCOME

Net Interest Income

Net interest income for the third quarter totaled $15.7 million, representing an increase of $2.1 million or 15.6% compared to the second quarter of 2021. The increase in net interest income for the quarter is due to a $1.4 million increase in interest income and a $688 thousand decrease in funding costs. The increase in interest income is due primarily to higher non-PPP loan balances as well as to a $509 thousand increase in PPP fees received compared to the second quarter. The third quarter decrease in funding costs is due to cost savings related to the second quarter prepayment of high cost FHLB borrowings which included a prepayment penalty of $535 thousand.

Net interest income for the year-to-date period totaled $42.1 million representing an increase of $6.5 million, or 18.1% compared to the same period in 2020. The increase is due to increased average loan balances, increased SBA PPP loan income and lower cost of funds, partially offset by year-to-date prepayment penalties in 2021 totaling $1.2 million as a result of prepaying higher priced FHLB term advances.

Net Interest Margin

The net interest margin for the third quarter of 2021 was 4.39% (4.27% excluding PPP loans) compared to 4.03% (4.14% excluding PPP loans) for the second quarter and 3.94% (3.88% excluding PPP loans) for the same period in 2020. The 36bps increase in the net interest margin for the quarter was due to increased core loan yields and lower funding costs for the quarter. Average portfolio loan yields were 5.38%, compared to 5.21% for Q2’21. The yield on earning assets for the third quarter was 4.60% compared with 4.46% and 4.37% for the same period in 2020. The yield on loans for the quarter increased to 5.38% (5.32% excluding PPP loans) compared to 5.21% (5.50% excluding PPP loans) in the second quarter and 5.21% (5.27% excluding PPP loans) in the third quarter of 2020. The cost of total funding sources was 0.22% for the quarter compared with 0.46% in the second quarter and 0.47% for the same period in 2020.

The net interest margin for the nine months ending September 30, 2021 was 4.10% (4.05% excluding PPP) compared with 4.01% (4.13% excluding PPP) for the same period in 2020. The increase in the net interest margin is due to lower yields on loans, federal funds and increased borrowing costs partially offset by lower deposits costs. In the first nine months of the year, the Company prepaid FHLB term advances and recorded $1.2 million in prepayment fees resulting in a negative 13 bp impact on the net interest margin.

Provision for Loan Losses

The provision for loan losses for the third quarter of 2021 was $433 thousand, a decrease of $713 thousand compared to $1.1 million for the second quarter of 2021. The driver for the third quarter provision was organic growth in the loan portfolio. While the economy continued to recover in the third quarter, the COVID-19 Delta variant continues to create uncertainty, and this is reflected in our total loan loss provision to total loans of 1.31% or 1.40% excluding PPP loans.

Non-Interest Income

Non-interest income was $2.4 million for the third quarter of 2021, representing a $416 thousand or a 14.8% decrease compared to the second quarter of 2021. The decrease in non-interest income for the quarter was primarily due to a similar size decrease in SBA loans sales during the quarter. SBA loan sales for the third quarter were $15.6 million with a 14.5% trade premium compared with $19.4 million with a 15.2% trade premium in the second quarter of 2021. Due to a change in our SBA loan servicing provider, sales of loans originated slowed during the quarter, resulting in $35.4 million of loans held for sale at September 30, 2021, up from $19.6 million at June 30, 2021.

Non-Interest Expense

Non-interest expense was $10.5 million for the third quarter of 2021 representing a $1.3 million or 14.3% increase compared to the second quarter of 2021. As a result of CalPrivate’s decision to empower its employees by giving them the choice to work remotely, the Bank was able consolidate one of its administrative locations. The increase in occupancy expenses for the quarter was due in part to this decision to vacate, which resulted in an impairment charge of $662 thousand to the right-of-use asset along with a $8 thousand fixed asset write off. As a result of the impairment charges and expected cost savings, occupancy expenses for this location are expected to be reduced by approximately $67 thousand pre-tax per quarter through the second quarter of 2024. Additionally, salaries and benefits increased $629 thousand in the third quarter due to strategic additions to staff and prior period accrual adjustments.

Professional services and other expenses continue to remain at elevated levels given on-going legal and related expenses associated with the ANI Development, LLC and Gina Champion-Cain fraud recovery cases.

STATEMENT OF FINANCIAL CONDITION

Balance Sheet

At September 30, 2021, the Company reported total assets of $1.5 billion representing an increase of $91.9 million or 6.6% compared to the second quarter of 2021. The increase in assets for the quarter was due to increases in loans and customer deposits. Net loans held for investment increased $43.3 million or 3.7% in the quarter due to a $79.8 million increase in non-SBA PPP loans offset by a $36.5 million decrease in SBA-PPP loans. Total deposits were $1.3 billion representing an increase of $108 million, or 8.9%, compared to the second quarter of 2021 and an increase of $284.5 million, or 27.7%, compared to September 30, 2020. Total non-interest-bearing deposits represented 49.2% of total deposits at September 30, 2021. During the quarter, total FHLB advances decreased $20.0 million due to contractual maturities.

Asset Quality and Loan Deferrals

The Allowance for Loan Losses increased $433 thousand to $16.1 million in the quarter with a resulting coverage ratio of 1.31% of total loans outstanding, including PPP loans, compared to $15.7 million or 1.33% at the second quarter of 2021. The increase in the Allowance for Loan Losses was primarily due to non-PPP organic loan growth and qualitative factors related to the general economic outlook in the markets we serve. The coverage ratio at September 30, 2021, excluding the impact of PPP loans, decreased to 1.40% from 1.46% in the prior quarter.

As of September 30, 2021, two PPP loans totaling $200 thousand were past due (30-89 days) with no potential loss exposure. Additionally, there were no doubtful credits or charge offs and Classified assets totaled $10.3 million. Ten classified assets include one 57% LTV real estate loan totaling $1.5 million that is on non-accrual and the remaining $8.8 million consisted of nine loans with six of those loans impacted by COVID-19. Five of the ten classified assets are secured by real estate at a favorable leverage position.

At September 30, 2021, no new deferrals related to COVID-19 were granted during the quarter. The loans that were previously granted payment deferrals have resumed their contractual payments.

Capital Ratios

At September 30, 2021, the Company’s capital ratios were in excess of the levels established for well capitalized institutions and are as follows:

 September 30, 2021 (1)June 30, 2021September 30, 2020
Tier I leverage ratio8.19%8.36%7.92%
Tier I risk-based capital ratio10.64%10.74%11.35%
Total risk-based capital ratio13.48%13.68%14.63%
(1)   Preliminary ratios for September 30, 2021

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 September 30, 2021, 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 forwardlooking 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 forwardlooking 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,
2021
 June 30,
2021
 Dollar
change
Percentage
change
 September 30,
2020
 Dollar
change
Percentage
change
Assets           
Cash and due from banks$12,570  $12,783  $(213)1.7% $10,985  $1,585 14.4%
Interest-bearing deposits in other financial institutions 2,736   13,969   (11,233)-80.4%  930   1,806 194.2%
Interest-bearing deposits at Federal Reserve Bank 123,247   65,356   57,891 88.6%  143,431   (20,184)-14.1%
Total cash and due from banks 138,553   92,108   46,445 50.4%  155,346   (16,793)-10.8%
Interest-bearing time deposits with other institutions 5,760   5,760   - 0.0%  5,760   - 0.0%
Investment securities available for sale 93,099   88,755   4,344 4.9%  26,525   66,574 251.0%
Loan held for sale 35,448   19,625   15,823 80.6%  8,402   27,046 321.9%
Loans, net of deferred fees and costs 1,192,135   1,164,611   27,524 2.4%  1,034,384   157,751 15.3%
Allowance for loan losses (16,141)  (15,708)  (433)2.8%  (12,682)  (3,459)27.3%
Net loans 1,175,994   1,148,903   27,091 2.4%  1,021,702   154,292 15.1%
Federal Home Loan Bank stock, at cost 4,909   4,909   - 0.0%  4,602   307 6.7%
Right of use asset 4,115   5,185   (1,070)-20.6%  5,186   (1,071)-20.7%
Premises and equipment, net 2,459   2,578   (119)-4.6%  2,859   (400)-14.0%
Other intangible assets 2,374   2,123   251 11.8%  1,364   1,010 74.0%
Deferred tax asset 6,256   7,012   (756)-10.8%  4,141   2,115 51.1%
Accrued interest receivable 3,404   3,501   (97)-2.8%  3,883   (479)-12.3%
Other assets 2,311   2,311   - 0.0%  4,424   (2,113)-47.8%
Total assets$ 1,474,682   $ 1,382,770   $ 91,912  6.6% $ 1,244,194   $ 230,488  18.5%
            
Liabilities and Shareholders’ Equity           
            
Liabilities           
Noninterest bearing$646,233  $603,914  $42,319 7.0% $471,324  $174,909 37.1%
Interest Bearing 667,012   601,530   65,482 10.9%  557,455   109,557 19.7%
Total deposits 1,313,245   1,205,444   107,801 8.9%  1,028,779   284,466 27.7%
FHLB borrowings 10,000   30,000   (20,000)-66.7%  80,000   (70,000)-87.5%
Other borrowings 17,945   17,943   2 0.0%  17,938   7 0.0%
Accrued interest payable and other liabilities 11,613   13,059   (1,446)-11.1%  14,227   (2,614)-18.4%
Total liabilities  1,352,803     1,266,446     86,357  6.8%   1,140,944     211,859  18.6%
            
Shareholders’ equity           
Common stock 70,470   70,405   65 0.1%  69,540   930 1.3%
Additional paid-in capital 3,465   3,179   286 9.0%  3,230   235 7.3%
Retained earnings 47,845   42,810   5,035 11.8%  29,521   18,324 62.1%
Accumulated other comprehensive (loss) income 99   (70)  169 -241.4%  959   (860)-89.7%
Total stockholders’ equity  121,879     116,324     5,555  4.8%   103,250     18,629  18.0%
            
Total liabilities and stockholders’ equity$ 1,474,682   $ 1,382,770   $ 91,912  6.6% $ 1,244,194   $ 230,488  18.5%
            


PRIVATE BANCORP OF AMERICA, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share amounts)
           
  For the three months ended
  September 30,
2021
 June 30,
2021
 Dollar
change
Percentage
change
 September 30,
2020
 Dollar
change
Percentage
change
Interest Income            
Loans $16,068 $14,637 $1,431 9.8% $13,578 $2,490 18.3%
Investment securities  330  351  (21)-6.0%  231  99 42.9%
Deposits in other financial institutions  60  40  20 50.0%  51  9 17.6%
Total interest income  16,458  15,028  1,430 9.5%  13,860  2,598 18.7%
             
Interest Expense            
Deposits  409  409  - 0.0%  707  (298)-42.1%
Borrowings  332  1,020  (688)-67.5%  656  (324)-49.4%
Total interest expense  741  1,429  (688)-48.1%  1,363  (622)-45.6%
             
Net interest income  15,717  13,599  2,118 15.6%  12,497  3,220 25.8%
Provision for loan losses  433  1,146  (713)-62.2%  1,582  (1,149)-72.6%
Net interest income after provision for loan losses  15,284  12,453  2,831 22.7%  10,915  4,369 40.0%
             
Noninterest income:            
Service charges on deposit accounts  236  231  5 2.2%  141  95 67.4%
Net gain on sale of loans  1,837  2,326  (489)-21.0%  554  1,283 231.6%
Gain on sale of investment securities  -  -  - NM  -  - NM
Other noninterest income  316  248  68 27.4%  241  75 31.1%
Total noninterest income  2,389  2,805  (416)-14.8%  1,871  518 27.7%
             
Noninterest expense:            
Salary and employee benefits  6,595  5,966  629 10.5%  5,365  1,230 22.9%
Occupancy and equipment  1,484  820  664 81.0%  864  620 71.8%
Data processing  799  690  109 15.8%  643  156 24.3%
Professional services  552  791  (239)-30.2%  514  38 7.4%
Other expenses  1,034  891  143 16.0%  846  188 22.2%
Total noninterest expense  10,464  9,158  1,306 14.3%  8,232  2,232 27.1%
             
Income before provision for income taxes  7,209  6,100  1,109 18.2%  3,619  3,590 99.2%
Provision for income taxes  2,158  1,806  352 19.5%  1,084  1,074 99.1%
Net income  $ 5,051  $ 4,294  $ 757  17.6% $ 2,535  $ 2,516  99.3%
Net income available to common shareholders $ 4,984  $ 4,231  $ 753  17.8% $ 2,499  $ 2,485  99.4%
             
Earnings per share            
Basic earnings per share $0.90 $0.76 $0.14 18.3% $0.45 $0.45 99.8%
Diluted earnings per share $0.89 $0.75 $0.14 18.0% $0.45 $0.44 96.7%
             
Average shares outstanding  5,543,403  5,536,111  7,292 0.1%  5,499,970  43,433 0.8%
Diluted average shares outstanding  5,629,900  5,622,075  7,825 0.1%  5,516,013  113,887 2.1%
             


PRIVATE BANCORP OF AMERICA, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share amounts)
        
  For the nine months ended
  September 30, 2021 September 30, 2020 Dollar
change
Percentage
change
Interest Income       
Loans $44,865 $39,999 $4,866 12.2%
Investment securities  986  883  103 11.7%
Deposits in other financial institutions  158  446  (288)-64.6%
Total interest income  46,009  41,328  4,681 11.3%
        
Interest Expense       
Deposits  1,336  3,773  (2,437)-64.6%
Borrowings  2,571  1,904  667 35.0%
Total interest expense  3,907  5,677  (1,770)-31.2%
        
Net interest income  42,102  35,651  6,451 18.1%
Provision for loan losses  1,879  4,091  (2,212)-54.1%
Net interest income after provision for loan losses  40,223  31,560  8,663 27.4%
        
Noninterest income:       
Service charges on deposit accounts  691  457  234 51.2%
Net gain on sale of loans  5,639  1,444  4,195 290.2%
Gain on sale of investment securities  -  751  (751)-100.0%
Other noninterest income  736  808  (72)-8.9%
Total noninterest income  7,066  3,460  3,606 104.2%
        
Noninterest expense:       
Salary and employee benefits  17,476  16,707  769 4.6%
Occupancy and equipment  3,114  2,649  465 17.6%
Data processing  2,124  1,721  403 23.4%
Professional services  1,994  2,001  (7)-0.3%
Other expenses  2,688  2,521  167 6.6%
Total noninterest expense  27,396  25,599  1,797 7.0%
        
Income before provision for income taxes  19,893  9,421  10,472 111.2%
Provision for income tax  5,942  2,910  3,032 104.2%
Net income $ 13,951  $ 6,511  $ 7,440  114.3%
Net income available to common shareholders $ 13,744  $ 6,407  $ 7,337  114.5%
        
Earnings per share       
Basic earnings per share $2.48 $1.17 $1.31 112.4%
Diluted earnings per share $2.45 $1.16 $1.29 111.1%
        
Average shares outstanding  5,531,590  5,492,123  39,467 0.7%
Diluted average shares outstanding  5,611,616  5,522,929  88,687 1.6%
        


  PRIVATE BANCORP OF AMERICA, INC.
  Consolidated average balance sheet, interest, yield and rates
  (Unaudited)
  (Dollars in thousands)
                   
  For the three months ended
  September 30, 2021 June 30, 2021 September 30, 2020
  Average
Balance
 Interest Average
Yield/Rate
 Average
Balance
 Interest Average
Yield/Rate
 Average
Balance
 Interest Average
Yield/Rate
Interest-Earnings Assets:                  
Deposits in other financial institutions $142,647 $60 0.17% $137,902 $40 0.12% $191,912 $51 0.11%
Investment securities  92,458  330 1.43%  88,132  351 1.59%  31,727  231 2.91%
Loans  1,185,865  16,068 5.38%  1,125,958  14,637 5.21%  1,037,195  13,578 5.21%
Total interest-earning assets  1,420,970  16,458 4.60%  1,351,992  15,028 4.46%  1,260,834  13,860 4.37%
Noninterest-earning assets  21,308      18,217      10,529    
Total Assets $1,442,278     $1,370,209     $1,271,363    
                   
Interest-Bearing Liabilities                  
Interest-bearing transaction accounts $68,618 $14 0.08% $65,283 $12 0.07% $59,624 $19 0.13%
Money market  493,289  245 0.20%  424,371  231 0.22%  402,286  349 0.35%
Savings deposits  9,639  3 0.12%  9,229  2 0.09%  9,024  2 0.09%
Certificates of deposit  68,761  147 0.85%  75,537  164 0.87%  97,444  337 1.38%
Total Interest-Bearing Deposits  640,307  409 0.25%  574,420  409 0.29%  568,378  707 0.49%
                   
FHLB advances  14,783  60 1.61%  41,153  748 7.29%  100,924  384 1.51%
Other borrowings  17,944  272 6.06%  17,942  272 6.06%  17,937  272 6.07%
Total Interest-Bearing Liabilities  32,727  332 4.02%  59,095  1,020 6.92%  118,861  656 2.20%
                   
Noninterest-bearing deposits  636,042 -  0.00%  609,932 -  0.00%  467,845 -  0.00%
Total Funding Sources  1,309,076  741 0.22%  1,243,447  1,429 0.46%  1,155,084  1,363 0.47%
                   
Noninterest-bearing liabilities  12,584      11,881      13,740    
                   
Shareholders' equity  120,618      114,881      102,539    
                   
Total Liabilities and Shareholders’ Equity $1,442,278     $1,370,209     $1,271,363    
                   
Net interest spread     4.38%     4.00%     3.90%
                   
Net interest income   $15,717     $13,599     $12,497  
Net interest margin     4.39%     4.03%     3.94%
                   


  PRIVATE BANCORP OF AMERICA, INC.
  Consolidated average balance sheet, interest, yield and rates
  (Unaudited)
  (Dollars in thousands)
             
  For the nine months ended
  September 30, 2021 September 30, 2020
  Average
Balance
 Interest Average
Yield/Rate
 Average
Balance
 Interest Average
Yield/Rate
Interest-Earnings Assets:            
Deposits in other financial institutions $172,601 $158 0.12% $168,735 $446 0.35%
Investment securities  80,061  986 1.65%  41,820  883 2.82%
Loans  1,119,400  44,865 5.36%  975,915  39,999 5.47%
Total interest-earning assets  1,372,062  46,009 4.48%  1,186,470  41,328 4.65%
Noninterest-earning assets  20,023      31,422    
Total Assets $1,392,085     $1,217,892    
             
Interest-Bearing Liabilities            
Interest-bearing transaction accounts $64,020 $36 0.08% $72,156 $210 0.39%
Money market  449,920  713 0.21%  395,803  1,800 0.61%
Savings deposits  9,215  7 0.10%  9,033  10 0.15%
Certificates of deposit  81,490  579 0.95%  112,839  1,754 2.08%
Total Interest-Bearing Deposits  604,645  1,335 0.30%  589,831  3,774 0.85%
             
FHLB advances  42,784  1,756 5.49%  88,248  1,088 1.65%
Other borrowings  17,942  815 6.07%  17,967  815 6.05%
Total Interest-Bearing Liabilities  60,726  2,571 5.66%  106,215  1,903 2.39%
             
Noninterest-bearing deposits  597,992 -  0.00%  408,515 -  0.00%
Total Funding Sources  1,263,363  3,906 0.41%  1,104,561  5,677 0.69%
             
Noninterest-bearing liabilities  13,421      13,244    
             
Shareholders' equity  115,301      100,087    
             
Total Liabilities and Shareholders’ Equity $1,392,085     $1,217,892    
             
Net interest spread     4.07%     3.97%
             
Net interest income   $42,103     $35,651  
Net interest margin     4.10%     4.01%
             

 


 PRIVATE BANCORP OF AMERICA, INC.
 Condensed Balance Sheets
 (Unaudited)
 (Dollars in thousands, except per share amounts)
 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Assets         
Cash and due from banks$138,553  $92,108  $164,750  $276,225  $155,346 
Interest-bearing time deposits with other institutions 5,760   5,760   5,760   5,760   5,760 
Investment securities 93,099   88,755   81,429   26,086   26,525 
Loans held for sale 35,448   19,625   12,430   9,687   8,402 
Loans (excluding SBA PPP loans) 1,117,983   1,053,938   948,260   936,532   880,174 
SBA PPP loans 74,152   110,673   133,740   62,338   154,210 
Allowance for loan losses (16,141)  (15,708)  (14,561)  (14,262)  (12,682)
Net loans 1,175,994   1,148,903   1,067,439   984,608   1,021,702 
Right of use asset 4,115   5,185   5,589   5,990   5,186 
Premises and equipment, net 2,459   2,578   2,582   2,649   2,859 
Other assets and interest receivable 19,254   19,856   19,738   18,735   18,414 
Total assets$ 1,474,682   $ 1,382,770   $ 1,359,717   $ 1,329,740   $ 1,244,194  
          
Liabilities and Shareholders’ Equity         
          
Liabilities         
Noninterest Bearing$646,233  $603,914  $579,318  $531,732  $471,324 
Interest Bearing 667,012   601,530   584,341   581,216   557,455 
Total Deposits 1,313,245   1,205,444   1,163,659   1,112,948   1,028,779 
Borrowings 27,945   47,943   67,941   92,939   97,938 
Accrued interest payable and other liabilities 11,613   13,059   16,507   16,100   14,227 
Total liabilities  1,352,803     1,266,446     1,248,107     1,221,987     1,140,944  
          
Shareholders’ equity         
Common stock 70,470   70,405   70,053   69,557   69,540 
Additional paid-in capital 3,465   3,179   3,317   3,496   3,230 
Retained earnings 47,845   42,810   38,510   33,904   29,521 
Accumulated other comprehensive (loss) income 99   (70)  (270)  796   959 
Total shareholders’ equity  121,879     116,324     111,610     107,753     103,250  
Total liabilities and shareholders’ equity$ 1,474,682   $ 1,382,770   $ 1,359,717   $ 1,329,740   $ 1,244,194  
          
Book value per common share$21.70  $20.71  $19.87  $19.24  $18.50 
Tangible book value per common share$21.27  $20.33  $19.55  $18.95  $18.26 
Shares outstanding 5,617,273   5,617,020   5,618,324   5,600,508   5,580,456 
          
 Regulatory Capital Ratios (PBAM) 1
 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Tier 1 leverage ratio 8.19%  8.36%  8.07%  8.52%  7.92%
Tier 1 risk-based capital ratio 10.64%  10.74%  11.35%  11.20%  11.35%
Common equity Tier 1 ratio 10.64%  10.74%  11.35%  11.20%  11.35%
Total risk-based capital ratio 13.48%  13.68%  14.46%  14.36%  14.63%
Tangible equity / tangible assets 8.12%  8.28%  8.09%  7.99%  8.20%
          
1 Preliminary ratios for September 30, 2021         
          


 PRIVATE BANCORP OF AMERICA, INC.
 Condensed Statements of Income
 (Unaudited)
 (Dollars in thousands, except per share amounts)
 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Interest income$16,458  $15,028  $14,523  $15,826  $13,860 
Interest expense 741   1,429   1,737   1,209   1,363 
Net interest income 15,717   13,599   12,786   14,617   12,497 
Provision for loan losses 433   1,146   300   1,579   1,582 
Net interest income after provision for loan losses 15,284   12,453   12,486   13,038   10,915 
          
Noninterest income 2,389   2,805   1,871   1,636   936 
          
Salary and employee benefits 6,595   5,966   4,915   5,293   5,365 
Occupancy and equipment 1,484   820   810   774   864 
Data processing 799   690   635   624   643 
Professional services 552   791   650   949   514 
Other expenses 1,034   891   763   780   846 
Total noninterest expense 10,464   9,158   7,773   8,420   8,232 
          
Income before provision for income taxes 7,209   6,100   6,584   6,254   3,619 
Income taxes 2,158   1,806   1,977   1,874   1,084 
Net income$5,051  $4,294  $4,607  $4,380  $2,535 
Net income available to common shareholders$4,984  $4,231  $4,529  $4,307  $2,499 
          
Earnings per share         
Basic earnings per share$0.90  $0.76  $0.82  $0.78  $0.45 
Diluted earnings per share$0.89  $0.75  $0.81  $0.78  $0.45 
          
Average shares outstanding 5,543,403   5,536,111   5,514,887   5,501,272   5,499,970 
Diluted average shares outstanding 5,629,900   5,622,075   5,579,477   5,540,232   5,516,013 
          
 Performance Ratios
 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
ROAA 1.39%  1.26%  1.37%  1.41%  0.79%
ROAE 16.61%  14.99%  16.94%  16.30%  9.84%
ROTE 16.88%  15.25%  17.19%  16.54%  9.96%
Net interest margin 4.39%  4.03%  3.89%  4.74%  3.94%
Net interest spread 4.38%  4.00%  3.85%  4.71%  3.90%
Efficiency ratio 57.79%  55.83%  53.03%  51.81%  61.28%
Noninterest expense / average assets 2.88%  2.68%  2.31%  2.71%  2.58%
          


 PRIVATE BANCORP OF AMERICA, INC.
 (Unaudited)
 Selected Quarterly Average Balances
 (Dollars in thousands)
 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Total assets$1,442,278  $1,370,209  $1,362,887  $1,234,611  $1,271,363 
Earning assets$1,420,970  $1,351,992  $1,331,448  $1,225,806  $1,260,834 
Total loans$1,185,865  $1,125,958  $1,044,828  $1,005,712  $1,037,195 
Total deposits$1,276,349  $1,184,352  $1,145,776  $1,017,389  $1,036,223 
Total equity$120,618  $114,881  $110,284  $106,874  $102,539 
          
          
 Loan Balances by Type
 (Dollars in thousands)
 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Real estate - investor owned$307,469  $293,461  $247,928  $243,745  $231,787 
Real estate - owner occupied 329,985   313,579   284,494   268,193   259,375 
Real estate - multifamily 82,460   72,790   75,361   69,187   64,268 
Real estate - single family 81,239   90,223   75,353   67,522   59,994 
Commercial business 274,708   244,493   227,635   251,711   228,914 
SBA PPP loans 74,152   110,673   133,740   62,338   154,210 
Land and construction 34,996   32,413   30,103   29,377   28,277 
Consumer 7,126   6,979   7,386   6,797   7,559 
Total loans held for investment 1,192,135   1,164,611   1,082,000   998,870   1,034,384 
Loans held for sale 35,448   19,625   12,430   9,687   8,402 
Total loans, including loans held for sale 1,227,583   1,184,236   1,094,430   1,008,557   1,042,786 
Allowance for loan losses (16,141)  (15,708)  (14,561)  (14,262)  (12,682)
Net loans$1,211,442  $1,168,528  $1,079,869  $994,295  $1,030,104 
          
          
 Deposits by Type
 (Dollars in thousands)
 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Non interest bearing DDA$646,233  $603,914  $579,318  $531,732  $471,324 
Interest bearing DDA 68,056   70,320   59,399   60,606   56,837 
Savings & MMA 530,782   463,165   423,957   424,540   396,233 
Retail CD 5,633   5,827   5,855   7,770   8,401 
Jumbo CD 62,541   62,218   95,130   88,300   95,984 
Total deposits$1,313,245  $1,205,444  $1,163,659  $1,112,948  $1,028,779 
          
          
 Asset Quality
 (Dollars in thousands)
 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Total loans, including loans held for sale$1,227,583  $1,184,236  $1,094,430  $1,008,557  $1,042,786 
30-89 day past due loans$200  $-  $-  $-  $- 
90+ day past due loans$-  $-  $-  $-  $- 
Nonaccrual loans$1,494  $1,540  $1,609  $1,609  $1,743 
          
NPAs / Assets 0.10%  0.11%  0.12%  0.12%  0.14%
NPLs / loans & OREO 0.12%  0.13%  0.15%  0.16%  0.17%
Net quarterly charge-offs$-  $-  $-  $-  $- 
Net charge-offs/avg loans (annualized) 0.00%  0.00%  0.00%  0.00%  0.00%
Allowance for loan losses to loans 1.31%  1.33%  1.33%  1.41%  1.22%
Allowance for loan losses to nonaccrual loans 1080.39%  1020.00%  904.97%  886.39%  727.60%