Private Bancorp of America, Inc. Announces Record Fourth Quarter and Full Year 2021 Financial Results With Total Assets of $1.5 Billion

La Jolla, California, UNITED STATES


Fourth Quarter Highlights

  • Net income for the quarter was $7.3 million, compared to $5.1 million for Q3’21 and $4.4 million in Q4’20
  • Diluted earnings per share of $1.28, compared to $0.89 for Q3’21 and $0.78 per share in Q4’20.
  • Net interest margin of 4.44%, compared to 4.39% for Q3’21
  • Cost of funding sources was 0.19%, compared to 0.22% for Q3’21
  • Total loans held-for-investment (“HFI”), excluding PPP loans, increased $70.7 million, up 6.3% to $1.2 billion
  • Non-interest-bearing demand deposits grew $36.4 million to $682.6 million, representing 50.7% of total deposits
  • Allowance for Loan Losses remained strong at 1.39% of total loans HFI
  • Tangible book value per share of $22.26, up $0.99 per share or 4.7% from Q3’21
  • Well capitalized Tier 1 risk-based capital ratio of 10.63% (preliminary)

2021 Full Year Highlights

  • Net income of $21.0 million, compared to $10.9 million for FY’20, an increase of 93.1%
  • Diluted earnings per share of $3.69, compared to $1.94 for FY’20, an increase of 90.4%
  • Pre-provision net revenue of $32.6 million, compared to $21.3 million for FY’20, representing a 52.6% increase
  • Return on average assets of 1.48%, compared to 0.89% for FY’20and return on average equity of 17.77%, compared to 10.70% for FY’20
  • Net interest margin of 4.19%, compared to 4.15% for FY’20
  • Total assets increased to $1.5 billion, representing an increase of 14.0% over FY’20.
  • Total loans HFI, excluding PPP loans, increased $252.1 million to $1.2 billion or 26.9% compared to FY’20
  • Non-interest-bearing demand deposits increased $150.9 million or 28.4% compared to FY’20
  • Tangible book value per share increased $3.31 or 17.5% compared to FY’20

LA JOLLA, Calif., Jan. 21, 2022 (GLOBE NEWSWIRE) --  Private Bancorp of America, Inc. (OTCQX:PBAM), (“Company”) and CalPrivate Bank (“Bank”) announced unaudited financial results for the fourth quarter ending December 31, 2021. The Company reported net income of $7.3 million, or $1.28 per diluted share, for the fourth quarter of 2021 compared to $5.1 million, or $0.89 per diluted share for the third quarter of 2021. Net income for the twelve months ending December 31, 2021, was $21.0 million, or $3.69 per diluted share, compared to $10.9 million or $1.94 per diluted share in FY’20.

Rick Sowers, President and CEO of the Company and the Bank stated, “In the face of a challenging environment with a global pandemic that continues to strain many sectors of our economy, our fourth quarter results attest to the resilience of our CalPrivate Bank franchise. Our Distinctly Different service model allows us to focus our Team on delivering value to our Clients. The fourth quarter continued to reflect our strong organic loan production capabilities through building Customized Solutions for our Clients. We believe this approach has positioned us well to participate in the economic recovery we expect to see in 2022.”

Sowers continued, “We continue to make progress in improving our operating leverage: we grew loans, core deposits, and capital to record levels; and we are making progress on streamlining our internal processes. We remain excited about the implementation of new technologies including the nCino Bank Operating System that we expect will provide us additional insight into our Client relationships and result in enhanced productivity.”

“PBAM’s fourth quarter of 2021 demonstrated our agility and approach to serving our core markets. The Company’s strategy to grow commercial and private banking loans and expand relationships continued to be demonstrated in the fourth quarter. The dedication of our Team, and the tremendous success we have been able to achieve for our Clients and Stakeholders is impressive,” said Selwyn Isakow, Chairman of the Board of the Company and the Bank.

Isakow added, “Given the strength of our core Southern California market and our already solid foundation, we have a significant opportunity to strategically drive growth in our portfolio. Building on CalPrivate’s momentum over the past year positions us well to deliver solid shareholder returns in 2022.”

STATEMENT OF INCOME

Net Interest Income

Net interest income for the fourth quarter totaled $16.7 million, representing an increase of $972 thousand or 6.2% compared to the third quarter of 2021. The increase in net interest income for the quarter was primarily due to increases in organic non-PPP loan balances. PPP interest and fee income was $1.4 million in Q4’21, compared to $1.5 million in Q3’21. Interest expense on deposits decreased $56 thousand in Q4’21 vs Q3’21. The fourth quarter decrease in funding costs was due to the strategic reduction of deposit costs.

Net interest income for the full year totaled $58.8 million representing an increase of $8.5 million, or 17.0% compared to FY’20. The increase was due to higher average loan balances, increased SBA PPP loan income and lower cost of funds, partially offset by prepayment penalties in 2021 totaling $1.2 million as a result of proactively prepaying high priced FHLB term advances.

Net Interest Margin

The net interest margin for the fourth quarter was 4.44% (4.23% excluding PPP loans) compared to 4.39% (4.27% excluding PPP loans) for the third quarter. The 5bps increase in the net interest margin for the quarter was due to higher core loan yields and lower funding costs for the quarter. Average portfolio loan yields were 5.50%, compared to 5.38% for Q3’21. The yield on earning assets for the fourth quarter was 4.62% compared with 4.60% for the third quarter.  

The net interest margin for the full year 2021 was 4.19% (4.10% excluding PPP) compared with 4.15% (4.09% excluding PPP) for the prior year 2020. The increase in the net interest margin was due to lower deposit costs offset with higher borrowing costs related to the pre-payment of FHLB advances. The costs of funds in the full year 2021 was 0.35% compared to 0.62% in FY’20. In the first half of 2021, the Bank prepaid FHLB term advances and recorded $1.2 million in prepayment expense.

Provision for Loan Losses

The provision for loan losses for the fourth quarter was $834 thousand, an increase of $401 thousand compared to the third quarter. The driver for the fourth quarter provision was organic growth in the loan portfolio. While the economy continued to recover in the fourth quarter, new COVID-19 variants have created uncertainty, and this is reflected in our total loan loss provision to total loans HFI of 1.39% or 1.40% excluding PPP loans.

Non-Interest Income

Non-interest income was $4.3 million for the fourth quarter, representing a $1.9 million increase, or 78.5% increase compared to the third quarter of 2021. The increase in non-interest income was primarily due to an outsized increase in SBA loans sales during the fourth quarter. This increase was the result of a change in the SBA servicing provider which caused a delay in the sale of loans during Q3’21. SBA loan sales for the fourth quarter were $36.0 million with a 12.9% trade premium compared with $15.6 million with a 14.5% trade premium in the third quarter. The Company had $24.7 million of loans held for sale at December 31, 2021, down from $35.4 million in the third quarter. Total non-interest income increased $6.2 million or 122.3% year over year.

Non-Interest Expense

Non-interest expense was $9.8 million for the fourth quarter representing a $625 thousand or 6% decline compared to the third quarter of 2021. As a result of CalPrivate’s prior quarter decision to empower employees with the choice to work remotely, the Bank consolidated one of its administrative locations, resulting in reduced occupancy expenses.

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. We continue to pursue recovery opportunities that could positively impact earnings and tangible book value per share in future quarters. Additionally, as the Bank continues to grow and has encountered a challenging labor market, we have engaged with some staffing agencies to provide temporary additional high-quality resources.

STATEMENT OF FINANCIAL CONDITION

Balance Sheet

At December 31, 2021, the Company reported total assets of $1.5 billion representing an increase of $41.5 million or 2.8% compared to the third quarter of 2021. The increase in assets for the quarter was due to increases in loans and investment securities supported by additional growth in core deposits. Total loans HFI increased $32.0 million during the quarter, up 2.7%; excluding PPP loans, total loans increased $70.6 million, up 6.3%. Total deposits were $1.3 billion representing an increase of $32.4 million, or 2.5%, compared to the third quarter. Total non-interest-bearing deposits represented 50.7% of total deposits at December 31, 2021. Additionally, during the quarter, the bank judiciously grew the securities portfolio to $102.1 million, an increase of $9.0 million from the prior quarter.

Asset Quality and Loan Deferrals

The Allowance for Loan Losses increased $834 thousand to $17.0 million in the quarter with a resulting coverage ratio of 1.39% of total loans outstanding, including PPP loans. The increase in the Allowance for Loan Losses was primarily due to non-PPP organic loan growth and qualitative factors related to the general economic outlook in the markets we serve.

As of December 31, 2021, there were no doubtful credits or charge offs and Classified assets totaled $13.4 million. Total classified assets consisted of 12 loans, of which 5 loans totaling $7.9 million were secured by real estate with a weighted average LTV of 47%. In addition, all loans that were previously granted payment deferrals related to COVID-19 have resumed their contractual payments.

Capital Ratios (1)

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

 Dec 31, 2021 (1)Sep 30, 2021Dec 31, 2020
Private Bancorp of America   
Tier I leverage ratio8.42%8.19%8.52%
Tier I risk-based capital ratio10.63%10.64%11.20%
Total risk-based capital ratio13.38%13.48%14.36%
    
CalPrivate Bank   
Tier I leverage ratio9.29%9.21%9.73%
Tier I risk-based capital ratio11.73%11.69%12.79%
Total risk-based capital ratio12.98%12.94%14.05%

(1)   December 31, 2021, capital ratios are preliminary

Stock Repurchase Program

Since announcing the stock repurchase program in July 2021, the Company has not repurchased any shares of its common stock. The remaining number of shares authorized to be repurchased under this program at December 31, 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) 
           
 December 31, 2021 September 30, 2021 Dollar
change
Percentage
change
 December 31, 2020 Dollar
change
Percentage
change
 
Assets            
Cash and due from banks$12,336  $12,570  $(234)1.9% $8,040  $4,296 5.4% 
Interest-bearing deposits in other financial institutions 39,663   2,736   36,927 1349.7%  7,309   32,354 442.7% 
Interest-bearing deposits at Federal Reserve Bank 97,086   123,247   (26,161)-21.2%  260,876   (163,790)-62.8% 
Total cash and due from banks 149,085   138,553   10,532 7.6%  276,225   (127,140)-46.0% 
Interest-bearing time deposits with other institutions 5,760   5,760   - 0.0%  5,760   - 0.0% 
Investment securities available for sale 102,116   93,099   9,017 9.7%  26,086   76,030 291.5% 
Loan held for sale 24,658   35,448   (10,790)-30.4%  9,687   14,971 154.5% 
Total loans held-for-investment 1,224,151   1,192,135   32,016 2.7%  998,870   225,287 22.6% 
Allowance for loan losses (16,975)  (16,141)  (834)5.2%  (14,262)  (2,712)19.0% 
Net loans 1,207,176   1,175,994   31,182 2.7%  984,608   222,575 22.6% 
Federal Home Loan Bank stock, at cost 4,909   4,909   - 0.0%  4,602   307 6.7% 
Right of use asset 3,760   4,115   (355)-8.7%  5,990   (2,231)-37.2% 
Premises and equipment, net 2,294   2,459   (165)-6.7%  2,649   (355)-13.4% 
Other intangible assets 3,079   2,374   705 29.7%  1,602   1,477 92.2% 
Deferred tax asset 6,258   6,256   2 0.0%  5,982   276 4.6% 
Accrued interest receivable 3,355   3,404   (49)-1.5%  3,540   (186)-5.3% 
Other assets 3,684   2,311   1,373 59.2%  3,009   670 22.3% 
Total assets$ 1,516,134  $ 1,474,682  $ 41,452 2.8% $ 1,329,740  $ 186,394 14.0% 
             
Liabilities and Shareholders' Equity            
             
Liabilities            
Noninterest bearing$682,589  $646,233  $36,356 5.6% $531,732  $150,857 28.4% 
Interest Bearing 663,074   667,012   (3,938)-0.6%  581,216   81,858 14.1% 
Total deposits 1,345,663   1,313,245   32,418 2.5%  1,112,948   232,715 20.9% 
FHLB borrowings 10,000   10,000   - 0.0%  75,000   (65,000)-86.7% 
Other borrowings 17,947   17,945   2 0.0%  17,939   8 0.0% 
Accrued interest payable and other liabilities 14,160   11,613   2,547 21.9%  16,100   (1,940)-12.0% 
Total liabilities 1,387,770   1,352,803   34,967 2.6%  1,221,987   165,783 13.6% 
             
Shareholders' equity            
Common stock 70,850   70,470   380 0.5%  69,557   1,293 1.9% 
Additional paid-in capital 3,343   3,465   (122)-3.5%  3,496   (153)-4.4% 
Retained earnings 54,922   47,845   7,077 14.8%  33,904   21,018 62.0% 
Accumulated other comprehensive (loss) income (751)  99   (850)-858.6%  796   (1,547)-194.3% 
Total stockholders' equity 128,364   121,879   6,485 5.3%  107,753   20,611 19.1% 
             
Total liabilities and stockholders' equity$ 1,516,134  $ 1,474,682  $ 41,452 2.8% $ 1,329,740  $ 186,394 14.0% 
             



PRIVATE BANCORP OF AMERICA, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share amounts)
           
  For the three months ended
  December 31, 2021 September 30, 2021 Dollar
change
Percentage
change
 December 31, 2020 Dollar
change
Percentage
change
Interest Income            
Loans $16,941 $16,068 $873 5.4% $15,540 $1,401 9.0%
Investment securities  352  330  22 6.7%  245  107 43.7%
Deposits in other financial institutions  63  60  3 5.0%  41  22 53.7%
Total interest income  17,356  16,458  898 5.5%  15,826  1,530 9.7%
             
Interest Expense            
Deposits  353  409  (56)-13.7%  596  (243)-40.8%
Borrowings  314  332  (18)-5.4%  613  (299)-48.8%
Total interest expense  667  741  (74)-10.0%  1,209  (542)-44.8%
             
Net interest income  16,689  15,717  972 6.2%  14,617  2,072 14.2%
Provision for loan losses  834  433  401 92.6%  1,579  (745)-47.2%
Net interest income after provision for loan losses  15,855  15,284  571 3.7%  13,038  2,817 21.6%
             
Noninterest income:            
Service charges on deposit accounts  254  236  18 7.6%  196  58 29.6%
Net gain on sale of loans  3,670  1,837  1,833 99.8%  1,170  2,500 213.7%
Gain on sale of investment securities  -  -  - NM  -  - NM
Other noninterest income  341  316  25 7.9%  270  71 26.3%
Total noninterest income  4,265  2,389  1,876 78.5%  1,636  2,629 160.7%
             
Noninterest expense:            
Salary and employee benefits  6,492  6,595  (103)-1.6%  5,293  1,199 22.7%
Occupancy and equipment  741  1,484  (743)-50.1%  774  (33)-4.3%
Data processing  703  799  (96)-12.0%  624  79 12.7%
Professional services  843  552  291 52.7%  949  (106)-11.2%
Other expenses  1,060  1,034  26 2.5%  780  280 35.9%
Total noninterest expense  9,839  10,464  (625)-6.0%  8,420  1,419 16.9%
             
Income before provision for income taxes  10,281  7,209  3,072 42.6%  6,254  4,027 64.4%
Provision for income taxes  2,986  2,158  828 38.4%  1,874  1,112 59.3%
Net income  $ 7,295 $ 5,051 $ 2,244 44.4% $ 4,380 $ 2,915 66.6%
Net income available to common shareholders $ 7,204 $ 4,984 $ 2,220 44.5% $ 4,307 $ 2,897 67.3%
             
Earnings per share            
Basic earnings per share $1.30 $0.90 $0.40 44.4% $0.78 $0.52 66.7%
Diluted earnings per share $1.28 $0.89 $0.39 43.8% $0.78 $0.50 64.1%
             
Average shares outstanding  5,547,422  5,543,403  4,019 0.1%  5,501,272  46,150 0.8%
Diluted average shares outstanding  5,638,186  5,629,900  8,286 0.1%  5,540,232  97,954 1.8%



PRIVATE BANCORP OF AMERICA, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share amounts)
        
  For the twelve months ended
  December 31, 2021 December 31, 2020 Dollar
change
Percentage
change
Interest Income       
Loans $61,806 $55,539 $6,267 11.3%
Investment securities  1,338  1,128  210 18.6%
Deposits in other financial institutions  221  487  (266)-54.6%
Total interest income  63,365  57,154  6,211 10.9%
        
Interest Expense       
Deposits  1,689  4,369  (2,680)-61.3%
Borrowings  2,885  2,517  368 14.6%
Total interest expense  4,574  6,886  (2,312)-33.6%
        
Net interest income  58,791  50,268  8,523 17.0%
Provision for loan losses  2,713  5,670  (2,957)-52.2%
Net interest income after provision for loan losses  56,078  44,598  11,480 25.7%
        
Noninterest income:       
Service charges on deposit accounts  945  654  291 44.5%
Net gain on sale of loans  9,309  2,614  6,695 256.1%
Gain on sale of investment securities  -  751  (751)-100.0%
Other noninterest income  1,077  1,078  (1)-0.1%
Total noninterest income  11,331  5,097  6,234 122.3%
        
Noninterest expense:       
Salary and employee benefits  24,278  22,000  2,278 10.4%
Occupancy and equipment  3,855  3,422  433 12.7%
Data processing  2,827  2,345  482 20.6%
Professional services  2,837  2,951  (114)-3.9%
Other expenses  3,749  3,302  447 13.5%
Total noninterest expense  37,546  34,020  3,526 10.4%
        
Income before provision for income taxes  29,863  15,675  14,188 90.5%
Provision for income tax  8,833  4,784  4,049 84.6%
Net income $ 21,030 $ 10,891 $ 10,139 93.1%
Net income available to common shareholders $ 20,746 $ 10,710 $ 10,036 93.7%
        
Earnings per share       
Basic earnings per share $3.75 $1.95 $1.80 92.3%
Diluted earnings per share $3.69 $1.94 $1.75 90.2%
        
Average shares outstanding  5,535,581  5,494,423  41,158 0.7%
Diluted average shares outstanding  5,617,017  5,527,284  89,733 1.6%



  PRIVATE BANCORP OF AMERICA, INC.
  Consolidated average balance sheet, interest, yield and rates
  (Unaudited)
  (Dollars in thousands)
                   
  For the three months ended
  December 31, 2021 September 30, 2021 December 31, 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 $171,279 $63 0.15% $142,647 $60 0.17% $189,856 $41 0.09%
Investment securities  96,722  351 1.45%  92,458  330 1.43%  30,238  245 3.24%
Loans  1,222,234  16,942 5.50%  1,185,865  16,068 5.38%  1,005,712  15,540 6.15%
Total interest-earning assets  1,490,235  17,356 4.62%  1,420,970  16,458 4.60%  1,225,806  15,826 5.14%
Noninterest-earning assets  24,348      21,308      8,805    
Total Assets $1,514,583     $1,442,278     $1,234,611    
                   
Interest-Bearing Liabilities                  
Interest-bearing transaction accounts $74,158 $14 0.07% $68,618 $14 0.08% $56,867 $17 0.12%
Money market  504,171  202 0.16%  493,289  245 0.20%  400,764  270 0.27%
Savings deposits  10,602  3 0.11%  9,639  3 0.12%  8,617  3 0.14%
Certificates of deposit  68,408  134 0.78%  68,761  147 0.85%  98,225  306 1.24%
Total Interest-Bearing Deposits  657,339  353 0.21%  640,307  409 0.25%  564,473  596 0.42%
                   
FHLB advances  10,000  42 1.67%  14,783  60 1.61%  77,348  341 1.75%
Other borrowings  17,945  272 6.06%  17,944  272 6.06%  17,938  272 6.07%
Total Interest-Bearing Liabilities  27,945  314 4.46%  32,727  332 4.02%  95,286  613 2.56%
                   
Noninterest-bearing deposits  689,438      636,042      452,916    
Total Funding Sources  1,374,722  667 0.19%  1,309,076  741 0.22%  1,112,675  1,209 0.43%
                   
Noninterest-bearing liabilities  12,474      12,584      15,062    
Shareholders' equity  127,387      120,618      106,874    
                   
Total Liabilities and Shareholders' Equity $1,514,583     $1,442,278     $1,234,611    
                   
Net interest income/spread   $16,689 4.43%   $15,717 4.38%   $14,617 4.71%
Net interest margin     4.44%     4.39%     4.74%



  PRIVATE BANCORP OF AMERICA, INC.
  Consolidated average balance sheet, interest, yield and rates
  (Unaudited)
  (Dollars in thousands)
             
  For the Twelve months ended
  December 31, 2021 December 31, 2020
  Average
Balance
 Interest Average
Yield/Rate
 Average
Balance
 Interest Average
Yield/Rate
Interest-Earnings Assets:            
Deposits in other financial institutions $172,268 $221 0.13% $188,109 $487 0.26%
Investment securities  84,261  1,338 1.59%  38,978  1,128 2.89%
Loans  1,145,320  61,806 5.40%  983,405  55,539 5.65%
Total interest-earning assets  1,401,849  63,365 4.52%  1,210,492  57,154 4.72%
Noninterest-earning assets  21,115      11,602    
Total Assets $1,422,964     $1,222,094    
             
Interest-Bearing Liabilities            
Interest-bearing transaction accounts $66,575 $50 0.08% $68,313 $227 0.33%
Money market  463,595  915 0.20%  397,050  2,068 0.52%
Savings deposits  9,564  10 0.10%  8,928  13 0.15%
Certificates of deposit  78,193  714 0.91%  109,165  2,061 1.89%
Total Interest-Bearing Deposits  617,927  1,689 27.00%  583,456  4,369 0.75%
             
FHLB advances  34,521  1,798 5.21%  85,532  1,430 1.67%
Other borrowings  17,943  1,087 6.06%  17,936  1,087 6.06%
Total Interest-Bearing Liabilities  52,464  2,885 5.50%  103,468  2,517 2.43%
             
Noninterest-bearing deposits  621,042      419,676    
Total Funding Sources  1,291,433  4,574 0.35%  1,106,600  6,886 0.62%
             
Noninterest-bearing liabilities  13,180      13,701    
Shareholders' equity  118,351      101,793    
             
Total Liabilities and Shareholders' Equity $1,422,964     $1,222,094    
             
Net interest income/spread   $58,791 4.17%   $50,268 4.10%
Net interest margin     4.19%     4.15%



 PRIVATE BANCORP OF AMERICA, INC. 
 Condensed Balance Sheets 
 (Unaudited) 
 (Dollars in thousands, except per share amounts) 
 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 
Assets          
Cash and due from banks$149,085  $138,553  $92,108  $164,750  $276,225  
Interest-bearing time deposits with other institutions 5,760   5,760   5,760   5,760   5,760  
Investment securities 102,116   93,099   88,755   81,429   26,086  
Loans held for sale 24,658   35,448   19,625   12,430   9,687  
Total loans held-for-investment (excluding PPP loans) 1,188,627   1,117,983   1,053,938   948,260   936,532  
SBA PPP loans 35,524   74,152   110,673   133,740   62,338  
Allowance for loan losses (16,975)  (16,141)  (15,708)  (14,561)  (14,262) 
Net loans 1,207,176   1,175,994   1,148,903   1,067,439   984,608  
Right of use asset 3,760   4,115   5,185   5,589   5,990  
Premises and equipment, net 2,294   2,459   2,578   2,582   2,649  
Other assets and interest receivable 21,285   19,254   19,856   19,738   18,735  
Total assets$ 1,516,134  $ 1,474,682  $ 1,382,770  $ 1,359,717  $ 1,329,740  
           
Liabilities and Shareholders' Equity          
           
Liabilities          
Noninterest Bearing$682,589  $646,233  $603,914  $579,318  $531,732  
Interest Bearing 663,074   667,012   601,530   584,341   581,216  
Total Deposits 1,345,663   1,313,245   1,205,444   1,163,659   1,112,948  
Borrowings 27,947   27,945   47,943   67,941   92,939  
Accrued interest payable and other liabilities 14,160   11,613   13,059   16,507   16,100  
Total liabilities 1,387,770   1,352,803   1,266,446   1,248,107   1,221,987  
           
Shareholders' equity          
Common stock 70,850   70,470   70,405   70,053   69,557  
Additional paid-in capital 3,343   3,465   3,179   3,317   3,496  
Retained earnings 54,922   47,845   42,810   38,510   33,904  
Accumulated other comprehensive (loss) income (751)  99   (70)  (270)  796  
Total shareholders' equity 128,364   121,879   116,324   111,610   107,753  
Total liabilities and shareholders' equity$ 1,516,134  $ 1,474,682  $ 1,382,770  $ 1,359,717  $ 1,329,740  
           
Book value per common share$22.81  $21.70  $20.71  $19.87  $19.24  
Tangible book value per common share$22.26  $21.27  $20.33  $19.55  $18.95  
Shares outstanding 5,627,735   5,617,273   5,617,020   5,618,324   5,600,508  
           
 Regulatory Capital Ratios (PBAM) 1 
 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 
Tier 1 leverage ratio 8.42%  8.19%  8.36%  8.07%  8.52% 
Tier 1 risk-based capital ratio 10.63%  10.64%  10.74%  11.35%  11.20% 
Common equity Tier 1 ratio 10.63%  10.64%  10.74%  11.35%  11.20% 
Total risk-based capital ratio 13.38%  13.48%  13.68%  14.46%  14.36% 
Tangible equity / tangible assets 8.35%  8.12%  8.28%  8.09%  7.99% 
           
1 Preliminary ratios for December 31, 2021          



 PRIVATE BANCORP OF AMERICA, INC.
 Condensed Statements of Income
 (Unaudited)
 (Dollars in thousands, except per share amounts)
 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020
Interest income$17,356  $16,458  $15,028  $14,523  $15,826 
Interest expense 667   741   1,429   1,737   1,209 
Net interest income 16,689   15,717   13,599   12,786   14,617 
Provision for loan losses 834   433   1,146   300   1,579 
Net interest income after provision for loan losses 15,855   15,284   12,453   12,486   13,038 
          
Noninterest income 4,265   2,389   2,805   1,871   1,636 
          
Salary and employee benefits 6,492   6,595   5,966   4,915   5,293 
Occupancy and equipment 741   1,484   820   810   774 
Data processing 703   799   690   635   624 
Professional services 843   552   791   650   949 
Other expenses 1,060   1,034   891   763   780 
Total noninterest expense 9,839   10,464   9,158   7,773   8,420 
          
Income before provision for income taxes 10,281   7,209   6,100   6,584   6,254 
Income taxes 2,986   2,158   1,806   1,977   1,874 
Net income$7,295  $5,051  $4,294  $4,607  $4,380 
Net income available to common shareholders$7,204  $4,984  $4,231  $4,529  $4,307 
          
Earnings per share         
Basic earnings per share$1.30  $0.90  $0.76  $0.82  $0.78 
Diluted earnings per share$1.28  $0.89  $0.75  $0.81  $0.78 
          
Average shares outstanding 5,547,422   5,543,403   5,536,111   5,514,887   5,501,272 
Diluted average shares outstanding 5,638,186   5,629,900   5,622,075   5,579,477   5,540,232 
          
 Performance Ratios
 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020
ROAA 1.91%  1.39%  1.26%  1.37%  1.41%
ROAE 22.72%  16.61%  14.99%  16.94%  16.30%
ROTE 23.07%  16.88%  15.25%  17.19%  16.54%
Net interest margin 4.44%  4.39%  4.03%  3.89%  4.74%
Net interest spread 4.43%  4.38%  4.00%  3.85%  4.71%
Efficiency ratio 46.96%  57.79%  55.83%  53.03%  51.81%
Noninterest expense / average assets 2.58%  2.88%  2.68%  2.31%  2.71%



 PRIVATE BANCORP OF AMERICA, INC.
 (Unaudited)
 Selected Quarterly Average Balances
 (Dollars in thousands)
 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020
Total assets$1,514,583  $1,442,278  $1,370,209  $1,362,887  $1,234,611 
Earning assets$1,490,235  $1,420,970  $1,351,992  $1,331,448  $1,225,806 
Total loans, including loans held for sale$1,222,234  $1,185,865  $1,125,958  $1,044,828  $1,005,712 
Total deposits$1,346,777  $1,276,349  $1,184,352  $1,145,776  $1,017,389 
Total equity$127,387  $120,618  $114,881  $110,284  $106,874 
          
          
 Loan Balances by Type
 (Dollars in thousands)
 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020
Real estate - investor owned$324,167  $307,469  $293,461  $247,928  $243,745 
Real estate - owner occupied 339,081   329,985   313,579   284,494   268,193 
Real estate - multifamily 97,285   82,460   72,790   75,361   69,187 
Real estate - single family 86,399   81,239   90,223   75,353   67,522 
Commercial business 294,944   274,708   244,493   227,635   251,711 
SBA PPP loans 35,524   74,152   110,673   133,740   62,338 
Land and construction 39,702   34,996   32,413   30,103   29,377 
Consumer 7,049   7,126   6,979   7,386   6,797 
Total loans held for investment 1,224,151   1,192,135   1,164,611   1,082,000   998,870 
Loans held for sale 24,658   35,448   19,625   12,430   9,687 
Total loans, including loans held for sale 1,248,809   1,227,583   1,184,236   1,094,430   1,008,557 
Allowance for loan losses (16,975)  (16,141)  (15,708)  (14,561)  (14,262)
Net loans$1,231,834  $1,211,442  $1,168,528  $1,079,869  $994,295 
          
          
 Deposits by Type
 (Dollars in thousands)
 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020
Non interest bearing DDA$682,589  $646,233  $603,914  $579,318  $531,732 
Interest bearing DDA 81,788   68,056   70,320   59,399   60,606 
Savings & MMA 513,070   530,782   463,165   423,957   424,540 
Retail CD 5,281   5,633   5,827   5,855   7,770 
Jumbo CD 62,935   62,541   62,218   95,130   88,300 
Total deposits$1,345,663  $1,313,245  $1,205,444  $1,163,659  $1,112,948 
          
          
 Asset Quality
 (Dollars in thousands)
 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020
Total loans held-for-investment$1,224,151  $1,192,135  $1,164,611  $1,082,000  $998,870 
30-89 day past due loans$-  $200  $-  $-  $- 
90+ day past due loans$-  $-  $-  $-  $- 
Nonaccrual loans$1,510  $1,494  $1,540  $1,609  $1,609 
          
NPAs / Assets 0.10%  0.10%  0.11%  0.12%  0.12%
NPLs / Total loans held-for-investment & OREO 0.12%  0.12%  0.13%  0.15%  0.16%
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 1.39%  1.35%  1.35%  1.35%  1.43%
Allowance for loan losses to nonaccrual loans 1124.11%  1080.39%  1020.00%  904.97%  886.39%