Private Bancorp of America, Inc. Announces Third Quarter 2022 Financial Results

La Jolla, California, UNITED STATES


Third Quarter Highlights

  • Net income for the third quarter of 2022 was $6.4 million, up 44.4% from the prior quarter and 25.7% from the same period in the prior year
  • Diluted earnings per share for the third quarter of 2022 was $1.12, up 45.5% from the prior quarter and 25.8% from the same period in the prior year
  • Total loans held-for-investment (“HFI”), excluding Paycheck Protection Program (“PPP”) loans, reached $1.5 billion at September 30, 2022, an increase of $108.9 million or 7.9% from the prior quarter and $367.8 million or 32.9% from the same period in the prior year.
  • Non-interest-bearing demand deposits grew $16.2 million or 2.2% from the prior quarter and $117.0 million or 18.1% from same period in the prior year, representing 49.9% of total deposits
  • Net interest margin (ex-PPP loans) of 4.97% compared to 4.57% for the prior quarter and 4.27% for the same period in the prior year
  • Total cost of funding sources increased to 0.36% for the third quarter of 2022 from 0.20% in the prior quarter. Total cost of deposits, including noninterest-bearing demand deposits, remained low at 0.27%
  • The provision for loan losses for the third quarter of 2022 was $1.3 million, an increase of $657 thousand compared to the prior quarter and was attributed to organic loan growth
  • Allowance for loan losses was 1.29% of total loans HFI (ex-PPP loans) at September 30, 2022 compared with 1.29% in the prior quarter
  • Tangible book value per share was $23.49 at September 30, 2022, up $0.81 from Q2’22 reflecting strong earnings that was partially offset by an increase in unrealized losses on the securities portfolio
  • Private Bancorp of America, Inc. (“PBAM”) remains well capitalized with Tier 1 risk-based capital ratio of 9.35% (preliminary)

LA JOLLA, Calif., Oct. 21, 2022 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM), (“Company”) and CalPrivate Bank (“Bank”) announced unaudited financial results for the third quarter ended September 30, 2022. The Company reported net income of $6.4 million, or $1.12 per diluted share, for the third quarter of 2022 compared to $4.4 million, or $0.77 per diluted share for the prior quarter.  

Rick Sowers, President and CEO of the Company and the Bank stated, “CalPrivate’s core franchise demonstrated its resiliency by continuing to organically grow loans and deposits which resulted in strong growth in net interest income to $20.6 million, well ahead of last quarter’s record. Additionally, while increasing our revenue growth, we continued our efforts to monitor and manage our non-interest expenses.”

Sowers continued, “While global events and domestic uncertainty has put pressure on the overall financial markets and on the banking industry in general, our proven model of focusing on Relationships, Solutions, and Trust continues to resonate with our Clients and prospective Clients. Specifically, our ability to organically grow net loans (ex-PPP loans) by $108.9 million in Q3’22, which represented linked-quarter growth of 7.9%, attests to the success of our Team.

Additionally, while the Federal Reserve continued on its path to raise rates in the third quarter to combat inflationary pressures, our deep Client Relationships and Distinctively Different Service™, demonstrated by our remarkable net promoter score (NPS™) of 84, more than twice the score for the U.S. Banking Industry average, enabled the Bank to grow noninterest-bearing deposits by $16.2 million while keeping the overall cost of interest-bearing deposits low at 0.36%. While we anticipate that funding costs will continue to increase and the potential movement of funds from noninterest-bearing to interest bearing accounts will occur, we are staying very close to our Clients to ensure we are here for them in these uncertain times.”

The rapidly changing economic climate has resulted in volatile interest rates, which has impacted the mark-to-market on the Bank’s securities portfolio as well as the Bank’s ability to originate and sell SBA 7a loans in the secondary market. Nonetheless, the Bank’s vigilant efforts to monitor and manage non-interest expenses resulted in an efficiency ratio of 53.3% from 64.9% in the prior quarter.

While the industry faces significant headwinds, generational high inflation rates and an increased possibility of a recession, the Company continues to invest in the infrastructure needed to drive efficiency and to support the growth of our Relationship Teams committed to serving our Clients.

“The Company continues to exhibit successful customer acquisition as shown by the organic growth in loans and deposits, despite a rising rate environment. Management and staff’s ability to stay focused on providing Exceptional Client Service is readily apparent in the Company’s impressive financial results,” said Selwyn Isakow, Chairman of the Board of the Company and the Bank.

Isakow added, “We are pleased with CalPrivate’s financial performance in the third quarter of 2022, however, we remain cautious on the overall economy. We are confident in Management’s ability to react to developing global events that will impact the Bank domestically, including the very real possibility of a global recession due to significant geopolitical and economic challenges stemming from high inflation, increasing interest rates, energy supply constraints, volatile global politics, increased cyber security risks, and the on-going war in Ukraine.”

STATEMENT OF INCOME

Net Interest Income

Net interest income for the third quarter totaled $20.6 million, representing an increase of $2.6 million or 14.6% compared to the second quarter of 2022. The increase in net interest income for the third quarter of 2022 was primarily due to increases in organic non-PPP average loan balances and higher interest rates. PPP interest and fee income was $123 thousand in Q3’22, compared to $224 thousand in Q2’22. As of September 30, 2022, only 4 PPP loans with total balances of $1.3 million remained unforgiven by the SBA. Interest expense on deposits increased $601 thousand in the third quarter of 2022 vs. the prior quarter due to higher average interest-bearing deposits and an increase in the deposit rates paid to Clients.

Net Interest Margin

The net interest margin for Q3’22 was 4.99% compared to 4.61% for the second quarter of 2022. Excluding PPP-loans, the net interest margin for Q3’22 was 4.97% compared to 4.57% for the second quarter of 2022. The 0.38% increase in the as reported net interest margin for the third quarter was due to higher loan balances and higher loan yields. Average portfolio loan yields (ex-PPP) were 5.77% for Q3’22, compared to 5.33% for Q2’22, including loan prepayment fees. The yield on earning assets was 5.32% for Q3’22 compared with 4.80% for Q2’22 and the cost of funds was 0.36% for Q3’22 compared to 0.20% for Q2’22.

Provision for Loan Losses

The provision for loan losses for the third quarter was $1.3 million, an increase of $657 thousand compared to the second quarter of 2022. While the loan portfolio has not experienced any losses, geopolitical events and high inflation have created uncertainty, and this is reflected in our ALLL to total loans HFI (ex-PPP loans) of 1.29%. This level has been consistently in the range of 1.41% to 1.29% since September 2020, reflecting the current solid credit metrics in the portfolio.

Non-Interest Income

Non-interest income was $1.4 million for the third quarter of 2022 and remained flat as compared to the second quarter of 2022. SBA loan sales for the third quarter of 2022 were $10.4 million with a 9.2% average trade premium resulting in a net gain on sale of $647 thousand, compared with $9.9 million with a 10.5% average trade premium resulting in a net gain on sale of $768 thousand in the second quarter of 2022.

Non-Interest Expense

Non-interest expense was $11.7 million for the third quarter representing a $873 thousand, or 6.9% decrease compared to the second quarter of 2022. Much of the decrease was related to the increased accruals in the prior quarter for professional services and other expenses given the active and on-going lawsuit for the recovery of the charged-off loan related to the ANI Development, LLC/Gina Champion-Cain fraud case and Chicago Title (parent company, Fidelity National Financial) for their alleged involvement with the fraud scheme.

Additionally, the Company remains committed to making investments in the business, including technology, marketing, and staffing. Historically high inflation and low unemployment has resulted in pressure on wages as well as increased costs related to third party service providers, which we proactively monitor and manage.

STATEMENT OF FINANCIAL CONDITION

Balance Sheet

At September 30, 2022, the Company reported total assets of $1.7 billion representing an increase of $114.8 million or 7.1% compared to the second quarter of 2022. The increase in assets for the second quarter was due to increases in loans supported by growth in deposits and wholesale borrowings from the FHLB. Total loans HFI increased to $1.5 billion at September 30, 2022 or $107.6 million, up 7.8%; excluding PPP loans, total loans increased $108.9 million, up 7.9%. Total deposits were $1.5 billion at September 30, 2022 representing an increase of $89.9 million, or 6.2%, compared to the second quarter of 2022. Total non-interest-bearing deposits represented 49.9% of total deposits at September 30, 2022. Additionally, during the third quarter of 2022, the mark-to-market fair value net unrealized losses on the securities portfolio, which consisted mainly of US Treasury and Government Agency debt, increased to pre-tax -$15.2 million from -$12.5 million from the prior quarter. The average duration of the Bank’s securities portfolio is 4.4 years.

Asset Quality

The Allowance for Loan Losses increased $1.3 million to $19.1 million in the quarter with a resulting coverage ratio of 1.29% of total loans HFI, excluding PPP loans. The increase in the Allowance for Loan Losses was primarily due to non-PPP organic loan growth and qualitative loss factors related to the general economic outlook in the markets we serve.

As of September 30, 2022, there were no doubtful credits or charge-offs and classified assets were $15.9 million, up $4.8 million compared to Q2’22. Total classified assets consisted of 13 loans, of which 7 loans totaling $10.1 million were secured by real estate with a weighted average LTV of 42.8%. The remaining 6 loans included 5 SBA loans with a balance of $3.3 million and were 75% guaranteed by the SBA.

Capital Ratios (1)

The Company and the Bank’s capital ratios were in excess of the levels established for “well capitalized” institutions and are as follows:

 Sep 30, 2022 (1)Jun 30, 2022Mar 31, 2022
Private Bancorp of America   
Tier I leverage ratio8.64%8.61%8.85%
Tier I risk-based capital ratio9.35%10.29%10.31%
Total risk-based capital ratio11.77%12.99%12.94%
    
CalPrivate Bank   
Tier I leverage ratio9.57%9.58%9.72%
Tier I risk-based capital ratio10.36%11.44%11.93%
Total risk-based capital ratio11.60%12.79%13.18%

      (1)   September 30, 2022, capital ratios are preliminary

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.

CalPrivate Bank’s website is www.calprivate.bank.

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures in addition to results presented in accordance with GAAP. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company's results of operations and financial condition and to enhance investors’ overall understanding of such results of operations and financial condition, permit investors to effectively analyze financial trends of our business activities, and enhance comparability with peers across the financial services sector. These non-GAAP financial measures are not a substitute for GAAP measures and should be read in conjunction with the Company’s GAAP financial information. A reconciliation of GAAP financial measures to non-GAAP financial measures is included in the accompanying financial tables.

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, 2022 June 30, 2022 September 30, 2021 
Assets      
Cash and due from banks$13,506  $15,694  $12,570  
Interest-bearing deposits in other financial institutions 44,776   43,857   2,736  
Interest-bearing deposits at Federal Reserve Bank 43,891   29,241   123,247  
Total cash and due from banks 102,173   88,792   138,553  
Interest-bearing time deposits with other institutions 6,157   6,157   5,760  
Investment securities available for sale 107,332   113,565   93,099  
Loan held for sale 7,789   4,460   35,448  
Total loans held-for-investment 1,487,098   1,379,519   1,192,135  
Allowance for loan losses (19,092)  (17,776)  (16,141) 
Net loans 1,468,006   1,361,743   1,175,994  
Federal Home Loan Bank stock, at cost 7,020   7,020   4,909  
Right of use asset 2,669   3,037   4,115  
Premises and equipment, net 2,040   2,640   2,459  
Servicing assets, net 3,502   3,515   2,374  
Deferred tax asset 7,212   9,229   6,256  
Accrued interest receivable 4,262   3,855   3,404  
Other assets 8,739   8,089   2,311  
Total assets$ 1,726,901  $ 1,612,102  $ 1,474,682  
       
Liabilities and Shareholders' Equity      
       
Liabilities      
Noninterest bearing$763,227  $747,006  $646,233  
Interest Bearing 767,371   693,646   667,012  
Total deposits 1,530,598   1,440,652   1,313,245  
FHLB borrowings 30,000   10,000   10,000  
Other borrowings 17,952   17,950   17,945  
Accrued interest payable and other liabilities 13,417   13,305   11,613  
Total liabilities 1,591,967   1,481,907   1,352,803  
       
Shareholders' equity      
Common stock 71,671   71,516   70,470  
Additional paid-in capital 3,568   3,368   3,465  
Retained earnings 70,386   64,036   47,845  
Accumulated other comprehensive (loss) income, net (10,691)  (8,725)  99  
Total stockholders' equity 134,934   130,195   121,879  
Total liabilities and stockholders' equity$ 1,726,901  $ 1,612,102  $ 1,474,682  
       


PRIVATE BANCORP OF AMERICA, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share amounts)
           
  For the three months ended For the nine months ended
  September 30, 2022 June 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
Interest Income          
Loans $21,028 $17,931 $16,068 $56,205 $44,865
Investment securities  578  571  330  1,550  986
Deposits in other financial institutions  372  204  60  711  158
Total interest income  21,978  18,706  16,458  58,466  46,009
           
Interest Expense          
Deposits  1,011  410  409  1,748  1,336
Borrowings  364  313  332  991  2,571
Total interest expense  1,375  723  741  2,739  3,907
           
Net interest income  20,603  17,983  15,717  55,727  42,102
Provision for loan losses  1,316  659  433  2,118  1,879
Net interest income after provision for loan losses  19,287  17,324  15,284  53,609  40,223
           
Noninterest income:          
Service charges on deposit accounts  306  299  236  887  691
Net gain on sale of loans  647  768  1,837  3,886  5,639
Other noninterest income  452  375  316  1,184  736
Total noninterest income  1,405  1,442  2,389  5,957  7,066
           
Noninterest expense:          
Salary and employee benefits  7,261  7,374  6,595  21,948  17,476
Occupancy and equipment  756  808  1,484  2,287  3,114
Data processing  993  824  799  2,469  2,124
Professional services  1,493  1,835  552  4,243  1,994
Other expenses  1,224  1,759  1,034  4,222  2,688
Total noninterest expense  11,727  12,600  10,464  35,169  27,396
           
Income before provision for income taxes  8,965  6,166  7,209  24,397  19,893
Provision for income taxes  2,614  1,769  2,158  7,131  5,942
Net income  $ 6,351 $ 4,397 $ 5,051 $ 17,266 $ 13,951
Net income available to common shareholders $ 6,306 $ 4,347 $ 4,984 $ 17,115 $ 13,744
           
Earnings per share          
Basic earnings per share $1.14 $0.78 $0.90 $3.08 $2.48
Diluted earnings per share $1.12 $0.77 $0.89 $3.03 $2.45
           
Average shares outstanding  5,549,480  5,543,065  5,543,403  5,559,122  5,531,590
Diluted average shares outstanding  5,640,841  5,639,282  5,629,900  5,657,117  5,611,616


PRIVATE BANCORP OF AMERICA, INC.
Consolidated average balance sheet, interest, yield and rates
(Unaudited)
(Dollars in thousands)
                   
  For the three months ended
  September 30, 2022 June 30, 2022 September 30, 2021
  Average
Balance
 Interest Average
Yield/Rate
 Average
Balance
 Interest Average
Yield/Rate
 Average
Balance
 Interest Average
Yield/Rate
Interest-Earnings Assets                  
Deposits in other financial institutions $77,353 $372 1.91% $100,017 $204 0.82% $142,647 $60 0.17%
Investment securities  122,184  578 1.89%  125,550  571 1.82%  92,458  330 1.43%
Loans, including LHFS  1,438,489  21,028 5.80%  1,339,095  17,931 5.37%  1,185,865  16,068 5.38%
Total interest-earning assets  1,638,026  21,978 5.32%  1,564,662  18,706 4.80%  1,420,970  16,458 4.60%
Noninterest-earning assets  27,465      27,614      21,308    
Total Assets $1,665,491     $1,592,276     $1,442,278    
                   
Interest-Bearing Liabilities                  
Interest-bearing transaction accounts $92,986 $166 0.71% $87,682 $54 0.25% $68,618 $14 0.08%
Money market  535,473  680 0.50%  492,838  241 0.20%  493,289  245 0.20%
Savings deposits  13,437  8 0.24%  14,216  3 0.01%  9,639  3 0.12%
Certificates of deposit  69,676  157 0.89%  67,184  112 0.66%  68,761  147 0.85%
Total Interest-Bearing Deposits  711,572  1,011 0.56%  661,920  410 0.25%  640,307  409 0.25%
                   
FHLB advances  15,299  92 2.39%  10,000  42 1.64%  14,783  60 1.61%
Other borrowings  17,951  272 6.06%  17,948  271 6.06%  17,944  272 6.06%
Total Interest-Bearing Liabilities  33,250  364 4.34%  27,948  313 4.49%  32,727  332 4.02%
                   
Noninterest-bearing deposits  771,167      757,728      636,042    
Total Funding Sources  1,515,989  1,375 0.36%  1,447,596  723 0.20%  1,309,076  741 0.22%
                   
Noninterest-bearing liabilities  4,775      11,891      12,584    
Shareholders' equity  144,727      132,789      120,618    
                   
Total Liabilities and Shareholders' Equity $1,665,491     $1,592,276     $1,442,278    
                   
Net interest income/spread   $20,603 4.96%   $17,983 4.60%   $15,717 4.38%
Net interest margin     4.99%     4.61%     4.39%
                   


PRIVATE BANCORP OF AMERICA, INC. 
Consolidated average balance sheet, interest, yield and rates 
(Unaudited) 
(Dollars in thousands) 
              
  For the nine months ended 
  September 30, 2022 September 30, 2021 
  Average
Balance
 Interest Average
Yield/Rate
 Average
Balance
 Interest Average
Yield/Rate
 
Interest-Earnings Assets:             
Deposits in other financial institutions $97,946 $711 0.97% $172,601 $158 0.12% 
Investment securities  119,042  1,550 1.74%  80,061  986 1.65% 
Loans  1,349,382  56,205 5.57%  1,119,400  44,865 5.36% 
Total interest-earning assets  1,566,370  58,466 4.99%  1,372,062  46,009 4.48% 
Noninterest-earning assets  25,751      20,023     
Total Assets $1,592,121     $1,392,085     
              
Interest-Bearing Liabilities             
Interest-bearing transaction accounts $86,461 $235 0.36% $64,020 $36 0.08% 
Money market  508,956  1,115 0.29%  449,920  713 0.21% 
Savings deposits  13,725  15 0.15%  9,215  7 0.10% 
Certificates of deposit  68,466  383 0.75%  81,490  580 0.95% 
Total Interest-Bearing Deposits  677,608  1,748 0.34%  604,645  1,336 0.30% 
              
FHLB advances  11,786  175 1.99%  42,784  1,756 5.49% 
Other borrowings  17,949  816 6.08%  17,942  815 6.07% 
Total Interest-Bearing Liabilities  29,735  991 4.46%  60,726  2,571 5.66% 
              
Noninterest-bearing deposits  737,578      597,992     
Total Funding Sources  1,444,921  2,739 0.25%  1,263,363  3,907 0.41% 
              
Noninterest-bearing liabilities  12,955      13,421     
Shareholders' equity  134,245      115,301     
              
Total Liabilities and Shareholders' Equity $1,592,121     $1,392,085     
              
Net interest income/spread   $55,727 4.74%   $42,102 4.07% 
Net interest margin     4.76%     4.10% 
              


 PRIVATE BANCORP OF AMERICA, INC. 
 Condensed Balance Sheets 
 (Unaudited) 
 (Dollars in thousands, except per share amounts) 
 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 
Assets          
Cash and due from banks$102,173  $88,792  $124,015  $149,085  $138,553  
Interest-bearing time deposits with other institutions 6,157   6,157   5,817   5,760   5,760  
Investment securities 107,332   113,565   114,382   102,065   93,099  
Loans held for sale 7,789   4,460   1,999   24,658   35,448  
Total loans held-for-investment (excluding PPP loans) 1,485,749   1,376,801   1,276,043   1,188,634   1,117,983  
SBA PPP loans 1,349   2,718   8,795   35,524   74,152  
Allowance for loan losses (19,092)  (17,776)  (17,117)  (16,975)  (16,141) 
Net loans 1,468,006   1,361,743   1,267,721   1,207,183   1,175,994  
Right of use asset 2,669   3,037   3,400   3,760   4,115  
Premises and equipment, net 2,040   2,640   2,813   2,294   2,459  
Other assets and interest receivable 30,735   31,708   25,335   22,279   19,254  
Total assets$ 1,726,901  $ 1,612,102  $ 1,545,482  $ 1,517,084  $ 1,474,682  
           
Liabilities and Shareholders' Equity          
           
Liabilities          
Noninterest Bearing$763,227  $747,006  $724,469  $682,589  $646,233  
Interest Bearing 767,371   693,646   646,545   663,074   667,012  
Total Deposits 1,530,598   1,440,652   1,371,014   1,345,663   1,313,245  
Borrowings 47,952   27,950   27,948   27,947   27,945  
Accrued interest payable and other liabilities 13,417   13,305   14,630   15,110   11,613  
Total liabilities 1,591,967   1,481,907   1,413,592   1,388,720   1,352,803  
           
Shareholders' equity          
Common stock 71,671   71,516   70,899   70,850   70,470  
Additional paid-in capital 3,568   3,368   3,602   3,343   3,465  
Retained earnings 70,386   64,036   61,424   54,922   47,845  
Accumulated other comprehensive (loss) income (10,691)  (8,725)  (4,035)  (751)  99  
Total shareholders' equity 134,934   130,195   131,890   128,364   121,879  
Total liabilities and shareholders' equity$ 1,726,901  $ 1,612,102  $ 1,545,482  $ 1,517,084  $ 1,474,682  
           
Book value per common share$24.12  $23.31  $23.42  $22.81  $21.70  
Tangible book value per common share$23.49  $22.68  $22.80  $22.26  $21.27  
Shares outstanding 5,594,380   5,584,465   5,630,993   5,627,735   5,617,273  
           
 Regulatory Capital Ratios (PBAM) 1 
 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 
Tier 1 leverage ratio 8.64%  8.61%  8.85%  8.42%  8.19% 
Tier 1 risk-based capital ratio 9.35%  10.29%  10.31%  10.63%  10.64% 
Common equity Tier 1 ratio 9.35%  10.29%  10.31%  10.63%  10.64% 
Total risk-based capital ratio 11.77%  12.99%  12.94%  13.38%  13.48% 
Tangible equity / tangible assets 8.20%  8.37%  8.59%  8.36%  8.15% 
           
1 Preliminary ratios for September 30, 2022          


 PRIVATE BANCORP OF AMERICA, INC.
 Condensed Statements of Income
 (Unaudited)
 (Dollars in thousands, except per share amounts)
 For the three months ended
 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021
Interest income$21,978  $18,706  $17,781  $17,356  $16,458 
Interest expense 1,375   723   640   667   741 
Net interest income 20,603   17,983   17,141   16,689   15,717 
Provision for loan losses 1,316   659   142   834   433 
Net interest income after provision for loan losses 19,287   17,324   16,999   15,855   15,284 
          
Noninterest income 1,405   1,442   3,109   4,265   2,389 
          
Salary and employee benefits 7,261   7,374   7,313   6,492   6,595 
Occupancy and equipment 756   808   723   741   1,484 
Data processing 993   824   653   703   799 
Professional services 1,493   1,835   915   843   552 
Other expenses 1,224   1,759   1,255   1,060   1,034 
Total noninterest expense 11,727   12,600   10,859   9,839   10,464 
          
Income before provision for income taxes 8,965   6,166   9,249   10,281   7,209 
Income taxes 2,614   1,769   2,747   2,986   2,158 
Net income$6,351  $4,397  $6,502  $7,295  $5,051 
Net income available to common shareholders$6,306  $4,347  $6,432  $7,204  $4,984 
          
Earnings per share         
Basic earnings per share$1.14  $0.78  $1.16  $1.30  $0.90 
Diluted earnings per share$1.12  $0.77  $1.13  $1.28  $0.89 
          
Average shares outstanding 5,549,480   5,543,065   5,568,400   5,547,422   5,543,403 
Diluted average shares outstanding 5,640,841   5,639,282   5,672,701   5,638,186   5,629,900 
          
 Performance Ratios
 Sep 30, 2022 Jun 30, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021
ROAA 1.51%  1.11%  1.74%  1.91%  1.39%
ROAE 17.41%  13.28%  19.91%  22.72%  16.61%
ROTE (1) 17.85%  13.64%  20.43%  23.25%  16.94%
Net interest margin 4.99%  4.61%  4.65%  4.44%  4.39%
Net interest spread 4.96%  4.60%  4.63%  4.43%  4.38%
Efficiency ratio (1) 53.29%  64.86%  53.62%  46.96%  57.79%
Noninterest expense / average assets 2.79%  3.21%  2.90%  2.58%  2.88%
          
(1) Non-GAAP measure. See GAAP to non-GAAP Reconciliation table.      


PRIVATE BANCORP OF AMERICA, INC. 
(Unaudited) 
           
 Selected Quarterly Average Balances 
 (Dollars in thousands) 
 For the three months ended 
 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 
Total assets$1,665,491  $1,592,276  $1,516,352  $1,514,583  $1,442,278  
Earning assets$1,638,026  $1,564,662  $1,494,850  $1,490,235  $1,420,970  
Total loans, including loans held for sale$1,438,489  $1,339,095  $1,268,695  $1,222,234  $1,185,865  
Total deposits$1,482,740  $1,419,648  $1,341,631  $1,346,777  $1,276,349  
Total equity$144,727  $132,789  $132,472  $127,387  $120,618  
           
           
 Loan Balances by Type 
 (Dollars in thousands) 
 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 
Real estate - investor owned$403,950  $390,628  $350,152  $324,167  $307,469  
Real estate - owner occupied 382,689   359,270   371,840   339,081   329,985  
Real estate - multifamily 136,841   121,693   105,964   97,285   82,460  
Real estate - single family 107,728   94,212   89,630   86,399   81,239  
Commercial business 393,020   359,692   307,421   294,944   274,708  
SBA PPP loans 1,349   2,718   8,795   35,524   74,152  
Land and construction 55,418   44,856   44,856   39,702   34,996  
Consumer 6,103   6,450   6,180   7,049   7,126  
Total loans held for investment$1,487,098  $1,379,519  $1,284,838  $1,224,151  $1,192,135  
           
           
 Deposits by Type 
 (Dollars in thousands) 
 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 
Non interest bearing DDA$763,227  $747,006  $724,469  $682,589  $646,233  
Interest bearing DDA 95,677   93,405   75,904   81,788   68,056  
Savings & MMA 591,408   533,145   503,552   513,070   530,782  
Retail CD 3,478   3,387   3,384   5,281   5,633  
Jumbo CD 76,808   63,709   63,705   62,935   62,541  
Total deposits$1,530,598  $1,440,652  $1,371,014  $1,345,663  $1,313,245  
           
           
 Asset Quality 
 (Dollars in thousands) 
 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 
Total loans held-for-investment$1,487,098  $1,379,519  $1,284,838  $1,224,151  $1,192,135  
Allowance for Loan Losses$(19,092) $(17,776) $(17,117) $(16,975) $(16,141) 
30-89 day past due loans$-  $-  $-  $-  $200  
90+ day past due loans$-  $-  $-  $-  $-  
Nonaccrual loans$4,593  $1,453  $1,453  $1,510  $1,494  
           
NPAs / Assets 0.27%  0.09%  0.09%  0.10%  0.10% 
NPLs / Total loans held-for-investment & OREO 0.31%  0.11%  0.11%  0.12%  0.12% 
Net quarterly charge-offs$-  $-  $-  $-  $-  
Net charge-offs/avg loans (annualized) 0.00%  0.00%  0.00%  0.00%  0.00% 
Allowance for loan losses to loans HFI 1.28%  1.29%  1.33%  1.39%  1.35% 
Allowance for loan losses to nonaccrual loans 415.68%  1223.40%  1178.05%  1124.11%  1080.39% 
           


PRIVATE BANCORP OF AMERICA, INC.
(Unaudited)
          
The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: efficiency ratio, pre-tax pre-provision income, average tangible common equity, return on average tangible common equity. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures.
          
 GAAP to Non-GAAP Reconciliation
 (Dollars in thousands)
          
 For the three months ended
 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021
Efficiency Ratio         
Noninterest expense$11,727  $12,600  $10,859  $9,839  $10,464 
Net interest income 20,603   17,983   17,141   16,689   15,717 
Noninterest income 1,405   1,442   3,109   4,265   2,389 
Total net interest income and noninterest income 22,008   19,425   20,250   20,954   18,106 
Efficiency ratio (non-GAAP) 53.3%  64.9%  53.6%  47.0%  57.8%
          
Pre-tax pre-provision income         
Net interest income$20,603  $17,983  $17,141  $16,689  $15,717 
Noninterest income 1,405   1,442   3,109   4,265   2,389 
Total net interest income and noninterest income 22,008   19,425   20,250   20,954   18,106 
Less: Noninterest expense 11,727   12,600   10,859   9,839   10,464 
Pre-tax pre-provision income (non-GAAP)$10,281  $6,825  $9,391  $11,115  $7,642 
          
Return on Average Assets, Average Equity, Average Tangible Equity        
Net income$6,351  $4,397  $6,502  $7,295  $5,051 
Average assets 1,665,491   1,592,276   1,516,352   1,514,583   1,442,278 
Average shareholders' equity 144,727   132,789   132,472   127,387   120,618 
Less: Average intangible assets 3,599   3,490   3,379   2,908   2,337 
Average tangible common equity (non-GAAP) 141,128   129,299   129,093   124,479   118,281 
          
Return on average assets 1.51%  1.11%  1.74%  1.91%  1.39%
Return on average equity 17.41%  13.28%  19.91%  22.72%  16.61%
Return on average tangible common equity (non-GAAP) 17.85%  13.64%  20.43%  23.25%  16.94%
          
Tanigible book value per share         
Total equity 134,934   130,195   131,890   128,364   121,879 
Less: Total intangible assets 3,502   3,525   3,079   2,374   1,789 
Total tangible equity 131,432   126,670   128,811   125,990   120,090 
Shares outstanding 5,594,380   5,584,465   5,630,993   5,627,735   5,617,273 
Tangible book value per share (non-GAAP)$23.49  $22.68  $22.80  $22.26  $21.27