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

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, 2021	September 30, 2020
Tier I leverage ratio	8.19%	8.36%	7.92%
Tier I risk-based capital ratio	10.64%	10.74%	11.35%
Total risk-based capital ratio	13.48%	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
[phone]

Mag Wangsuwana
Executive Vice President and Chief Financial Officer
Private Bancorp of America, Inc., and CalPrivate Bank
[phone]

Safe Harbor Paragraph

This press release includes forward-looking statements that involve inherent risks and uncertainties. Private Bancorp of America, Inc. cautions readers that a number of important factors could cause actual results to differ materially from those in the forward‐looking statements. These factors include the effects of the COVID-19 pandemic and related government actions on the Bank and its customers, loan losses, economic conditions and competition in the geographic and business areas in which Private Bancorp of America, Inc. operates, our ability to successfully integrate and develop business through the addition of new personnel and facilities and merged banks, whether our efforts to expand loan, product and service offerings will prove profitable, the effects of the bank mergers and acquisitions in our markets, system failures and internet security, inflation, fluctuations in interest rates, legislation and governmental regulation. You should not place undue reliance on forward‐looking statements, and we undertake no obligation to update those statements whether as a result of changes in underlying factors, new information, future events or otherwise.

 

PRIVATE BANCORP OF AMERICA, INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
(Dollars in thousands)
	September 30, 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	%