GlobeNewswire

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

Second Quarter Highlights

  • Net income for the quarter was $4.4 million, up 2.4% from the same period in the prior year
  • Diluted earnings per share of $0.77, up 2.7% from the same period in the prior year
  • Total loans held-for-investment (“HFI”), excluding Paycheck Protection Program (“PPP”) loans, reached $1.4 billion, an increase of $322.9 million or 30.6% year-over-year and $100.8 million or 7.9% over Q1’22
  • Non-interest-bearing demand deposits grew $143.0 million or 23.7% year over year and $22.5 million from the prior quarter to $747.0 million, representing 51.9% of total deposits
  • Net interest margin (ex-PPP loans) of 4.57% compared to 4.14% for Q1’21 and compared to 4.51% for Q1’22
  • Cost of funding sources remained low at 0.20%
  • The provision for loan losses for the second quarter of 2022 was $659 thousand, an increase of $517 thousand compared to the first quarter of 2022
  • Allowance for Loan Losses was 1.29% of total loans HFI (ex-PPP loans)
  • Tangible book value per share of $22.68, down $0.12 from Q1’22 related to a mark-to-market adjustment on the securities portfolio
  • Private Bancorp of America, Inc. (“PBAM”) well capitalized Tier 1 risk-based capital ratio of 9.51% (preliminary)

LA JOLLA, Calif., July 21, 2022 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM), (“Company”) and CalPrivate Bank (“Bank”) announced unaudited financial results for the second quarter ending June 30, 2022. The Company reported net income of $4.4 million, or $0.77 per diluted share, for the second quarter of 2022 compared to $6.5 million, or $1.13 per diluted share for the first quarter of 2022.

Rick Sowers, President and CEO of the Company and the Bank stated, “CalPrivate’s core franchise continued to organically grow loans and deposits which drove solid growth in net interest income to $18.0 million – our highest level yet. However, given the volatility of the interest rate and credit markets, we experienced a decline in our SBA 7(a) loan sales and the resulting gain on sale income for the quarter.”

Sowers continued, “While global events and the rapidly changing environment have put pressure on the overall financial markets and on our own financial results, our model of providing a concierge experience through our dedicated Teams and our core mission of providing Relationships, Solutions, and Trust continues to resonate and provide a stabilizing force to our Clients. We have been able to organically grow net loans (ex-PPP loans) more than $100 million in Q2’22, representing linked-quarter growth of 7.9%.

While the Federal Reserve raised overnight borrowing costs substantially in the second quarter, given our deep Client Relationships and strong referral network, the Bank was able to grow non-interest bearing deposits by $22.5 million while keeping the overall cost of interest bearing deposits low at 0.25%.”

Domestic events, including high inflation, have unfavorably resulted in increased non-interest expense, including employee compensation and professional services. The decline in SBA gain on sale was both a result of lower 7(a) loan volumes and a softer secondary market, which led to an increased efficiency ratio of 64.9% from 53.6% for Q1’22. While the industry faces significant headwinds, including an increased possibility of a recession, our Bank continues to invest in the infrastructure to become more efficient and to support the growth of our Relationship Teams committed to serving our Clients.

As a continuation of the Company’s investments in innovation to support long-term growth and efficiency, during the second quarter, the Company made additional FinTech investments in BankTech Ventures and the Banktech Consortium Fund, two leading investment management firms focused on providing capital to companies driving innovation in the banking industry and keeping the Company in front of emerging trends.

“The financial earnings power of PBAM remains resilient based on the first half results of 2022. The Company’s ability to organically grow loans attests to the Company’s successful strategy to stay focused on providing a Distinctly Different service. Diluted EPS for the first half of 2022 of $1.91 is up 22.4% from the same period a year ago,” said Selwyn Isakow, Chairman of the Board of the Company and the Bank.

Isakow added, “We are proud of CalPrivate’s achievements and financial performance to date, however, we remain cautious on the overall macro-economy. We must remain vigilant in our credit and risk management practices as we continue to evaluate the possibility of a near-term global recession due to significant geopolitical and economic challenges stemming from high inflation, energy supply constraints, volatile global politics, and the on-going war in Ukraine.”

STATEMENT OF INCOME

Net Interest Income

Net interest income for the second quarter totaled $18.0 million, representing an increase of $842 thousand or 4.9% compared to the first quarter of 2022. The increase in net interest income for the second quarter was primarily due to increases in organic non-PPP loan balances and higher rates. PPP interest and fee income was $224 thousand in Q2’22, compared to $751 thousand in Q1’22. As of June 30, 2022, only 12 PPP loans with total balances of $2.7 million remained unforgiven by the SBA. Interest expense on deposits increased $83 thousand in Q2’22 vs Q1’22 due to higher deposit totals and an increase in the deposit rates paid to Clients.

Net Interest Margin

The net interest margin for Q2’22 was 4.61% compared to 4.65% for the first quarter of 2022. Excluding PPP-loans, the net interest margin for Q2’22 was 4.57% compared to 4.51% for the first quarter of 2022. The 0.04% decrease in the as reported net interest margin for the second quarter was due to lower loan prepayments and higher cost of deposits. Average portfolio loan yields were 5.37% for Q2’22, compared to 5.51% for Q1’22, including loan prepayment fees. The yield on earning assets for the second quarter was 4.80% for Q2’22 compared with 4.82% for Q1’22 and the cost of funds was 0.20% for Q2’22 compared to 0.19% for Q1’22.

Provision for Loan Losses

The provision for loan losses for the second quarter was $659 thousand, an increase of $517 thousand compared to the first quarter of 2022. While the economy continued to recover in the second quarter, 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%.

Non-Interest Income

Non-interest income was $1.4 million for the second quarter, representing a $1.7 million decrease, compared to the first quarter of 2022. The decrease in non-interest income was primarily due to a decrease in SBA loans sales during second quarter compared to the first quarter of 2022. SBA loan sales for the second quarter were $9.9 million with a 10.5% average trade premium resulting in a net gain on sale of $768 thousand, compared with $26.2 million with a 12.9% average trade premium resulting in a net gain on sale of $2.5 million in the first quarter of 2022.

Non-Interest Expense

Non-interest expense was $12.6 million for the second quarter representing a $1.7 million, or 16.0% increase compared to the first quarter of 2022. Much of the increase was related to the elevated levels of professional services and other expenses given an 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. Related to the strong organic loan growth in the second quarter, the Company also increased its reserve for unfunded commitments by $214 thousand.

STATEMENT OF FINANCIAL CONDITION

Balance Sheet

At June 30, 2022, the Company reported total assets of $1.6 billion representing an increase of $66.6 million or 4.3% compared to the first quarter of 2022. The increase in assets for the second quarter was due to increases in loans supported by growth in core deposits. Total loans HFI increased to $1.4 billion at June 30, 2022 or $94.7 million during the quarter, up 7.4%; excluding PPP loans, total loans increased $100.8 million, up 7.9%. Total deposits were $1.4 billion representing an increase of $69.6 million, or 5.1%, compared to the first quarter. Total non-interest-bearing deposits represented 51.9% of total deposits at June 30, 2022. Additionally, during the quarter, the mark-to-market fair value net loss on the securities portfolio, which consisted mainly of US Treasury and Government Agency debt, increased to -$12.5 million from -$5.6 million from the prior quarter.

Asset Quality and Loan Deferrals

The Allowance for Loan Losses increased $659 thousand to $17.8 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 June 30, 2022, there were no doubtful credits or charge offs and Classified assets remained at $11.2 million, compared Q1’22. Total classified assets consisted of 10 loans, of which 6 loans totaling $7.9 million were secured by real estate with a weighted average LTV of 45.4%. 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:

 Jun 30, 2022 (1)Mar 31, 2022Dec 31, 2021
Private Bancorp of America   
Tier I leverage ratio8.61%8.85%8.42%
Tier I risk-based capital ratio9.51%10.31%10.63%
Total risk-based capital ratio12.01%12.94%13.38%
    
CalPrivate Bank   
Tier I leverage ratio9.58%9.72%9.29%
Tier I risk-based capital ratio10.57%11.93%11.73%
Total risk-based capital ratio11.82%13.18%12.98%

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


Stock Repurchase Program

During the second quarter of 2022, PBAM announced that it had completed its stock repurchase program on April 28, 2022 through the repurchase of 60,000 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)
          
 June 30, 2022 March 31, 2022 Dollar
change
Percentage
change
 June 30, 2021 Dollar
change
Percentage
change
Assets           
Cash and due from banks$15,694  $17,099  $(1,405)-8.2% $12,783  $2,911 22.8%
Interest-bearing deposits in other financial institutions 43,857   40,878   2,979 7.3%  13,969   29,888 214.0%
Interest-bearing deposits at Federal Reserve Bank 29,241   66,038   (36,797)-55.7%  65,356   (36,115)-55.3%
Total cash and due from banks 88,792   124,015   (35,223)28.4%  92,108   (3,316)-3.6%
Interest-bearing time deposits with other institutions 6,157   5,817   340 5.8%  5,760   397 6.9%
Investment securities available for sale 113,565   114,382   (817)-0.7%  88,755   24,810 28.0%
Loan held for sale 4,460   1,999   2,461 123.1%  19,625   (15,165)-77.3%
Total loans held-for-investment 1,379,519   1,284,838   94,681 7.4%  1,164,611   214,908 18.5%
Allowance for loan losses (17,776)  (17,117)  (659)3.8%  (15,708)  (2,068)13.2%
Net loans 1,361,743   1,267,721   94,022 7.4%  1,148,903   212,840 18.5%
Federal Home Loan Bank stock, at cost 7,020   4,909   2,111 43.0%  4,909   2,111 43.0%
Right of use asset 3,037   3,400   (363)-10.7%  5,185   (2,148)-41.4%
Premises and equipment, net 2,640   2,813   (173)-6.2%  2,578   62 2.4%
Servicing assets, net 3,515   3,525   (10)-0.3%  2,123   1,392 65.6%
Deferred tax asset 9,229   7,032   2,197 31.2%  7,012   2,217 31.6%
Accrued interest receivable 3,855   3,453   402 11.6%  3,501   354 10.1%
Other assets 8,089   6,416   1,673 26.1%  2,311   5,778 250.0%
Total assets$ 1,612,102  $ 1,545,482  $ 66,620 4.3% $ 1,382,770  $ 229,332 16.6%
            
Liabilities and Shareholders’ Equity           
            
Liabilities           
Noninterest bearing$747,006  $724,469  $22,537 3.1% $603,914  $143,092 23.7%
Interest Bearing 693,646   646,545   47,101 7.3%  601,530   92,116 15.3%
Total deposits 1,440,652   1,371,014   69,638 5.1%  1,205,444   235,208 19.5%
FHLB borrowings 10,000   10,000   - 0.0%  30,000   (20,000)-66.7%
Other borrowings 17,950   17,948   2 0.0%  17,943   7 0.0%
Accrued interest payable and other liabilities 13,305   14,630   (1,325)-9.1%  13,059   246 1.9%
Total liabilities 1,481,907   1,413,592   68,315 4.8%  1,266,446   215,461 17.0%
            
Shareholders’ equity           
Common stock 71,516   70,899   617 0.9%  70,405   1,111 1.6%
Additional paid-in capital 3,368   3,602   (234)-6.5%  3,179   189 5.9%
Retained earnings 64,036   61,424   2,612 4.3%  42,810   21,226 49.6%
Accumulated other comprehensive (loss) income (8,725)  (4,035)  (4,690)116.2%  (70)  (8,655)12364.3%
Total stockholders’ equity 130,195   131,890   (1,695)-1.3%  116,324   13,871 11.9%
Total liabilities and stockholders’ equity$ 1,612,102  $ 1,545,482  $ 66,620 4.3% $ 1,382,770  $ 229,332 16.6%
            


PRIVATE BANCORP OF AMERICA, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share amounts)
           
  For the three months ended
  June 30, 2022 March 31, 2022 Dollar changePercentage change June 30, 2021 Dollar changePercentage change
Interest Income            
Loans $17,931 $17,246 $685 4.0% $14,637 $3,294 22.5%
Investment securities  571  401  170 42.4%  351  220 62.7%
Deposits in other financial institutions  204  134  70 52.2%  40  164 410.0%
Total interest income  18,706  17,781  925 5.2%  15,028  3,678 24.5%
             
Interest Expense            
Deposits  410  327  83 25.4%  409  1 0.2%
Borrowings  313  313  - 0.0%  1,020  (707)-69.3%
Total interest expense  723  640  83 13.0%  1,429  (706)-49.4%
             
Net interest income  17,983  17,141  842 4.9%  13,599  4,384 32.2%
Provision for loan losses  659  142  517 364.1%  1,146  (487)-42.5%
Net interest income after provision for loan losses  17,324  16,999  325 1.9%  12,453  4,871 39.1%
             
Noninterest income:            
Service charges on deposit accounts  299  281  18 6.4%  224  57 29.4%
Net gain on sale of loans  768  2,471  (1,703)-68.9%  1,476  995 -67.0%
Other noninterest income  375  357  18 5.0%  171  186 51.2%
Total noninterest income  1,442  3,109  (1,667)-53.6%  1,871  1,238 -48.6%
             
Noninterest expense:            
Salary and employee benefits  7,374  7,313  61 0.8%  5,966  1,408 23.6%
Occupancy and equipment  808  723  85 11.8%  820  (12)-1.5%
Data processing  824  653  171 26.2%  690  134 19.4%
Professional services  1,835  915  920 100.5%  791  1,044 132.0%
Other expenses  1,759  1,255  504 40.2%  891  868 97.4%
Total noninterest expense  12,600  10,859  1,741 16.0%  9,158  3,442 37.6%
             
Income before provision for income taxes  6,166  9,249  (3,083)-33.3%  6,100  66 1.1%
Provision for income taxes  1,769  2,747  (978)-35.6%  1,806  (37)-2.0%
Net income  $ 4,397 $ 6,502 $ (2,105)-32.4% $ 4,294 $ 103 2.4%
Net income available to common shareholders $ 4,347 $ 6,432 $ (2,085)-32.4% $ 4,231 $ 116 2.7%
             
Earnings per share            
Basic earnings per share $0.78 $1.16 $(0.37)-32.1% $0.76 $0.02 3.2%
Diluted earnings per share $0.77 $1.13 $(0.36)-32.0% $0.75 $0.02 2.8%
             
Average shares outstanding  5,543,065  5,568,400  (25,335)-0.5%  5,536,111  6,954 0.1%
Diluted average shares outstanding  5,639,282  5,672,701  (33,419)-0.6%  5,622,075  17,207 0.3%
                      


PRIVATE BANCORP OF AMERICA, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share amounts)
        
   
  June 30, 2022 June 30, 2021 Dollar
change
Percentage
change
Interest Income       
Loans $35,177 $28,796 $6,381 22.2%
Investment securities  972  656  316 48.2%
Deposits in other financial institutions  339  99  240 242.4%
Total interest income  36,488  29,551  6,937 23.5%
        
Interest Expense       
Deposits  737  926  (189)-20.4%
Borrowings  626  2,239  (1,613)-72.0%
Total interest expense  1,363  3,165  (1,802)-56.9%
        
Net interest income  35,125  26,386  8,739 33.1%
Provision for loan losses  802  1,446  (644)-44.5%
Net interest income after provision for loan losses  34,323  24,940  9,383 37.6%
        
Noninterest income:       
Service charges on deposit accounts  580  454  126 27.8%
Net gain on sale of loans  3,239  3,802  (563)-14.8%
Gain on sale of investment securities  -  -  - N/A
Other noninterest income  732  420  312 74.3%
Total noninterest income  4,551  4,676  (125)-2.7%
        
Noninterest expense:       
Salary and employee benefits  14,687  10,881  3,806 35.0%
Occupancy and equipment  1,531  1,630  (99)-6.1%
Data processing  1,476  1,326  150 11.3%
Professional services  2,750  1,441  1,309 90.8%
Other expenses  2,998  1,654  1,344 81.3%
Total noninterest expense  23,442  16,932  6,510 38.4%
        
Income before provision for income taxes  15,432  12,684  2,748 21.7%
Provision for income tax  4,517  3,784  733 19.4%
Net income $ 10,915 $ 8,900 $ 2,015 22.6%
Net income available to common shareholders $ 10,794 $ 8,761 $ 2,033 23.2%
        
Earnings per share       
Basic earnings per share $1.94 $1.59 $0.35 22.0%
Diluted earnings per share $1.91 $1.56 $0.35 22.4%
        
Average shares outstanding  5,555,662  5,525,557  30,105 0.5%
Diluted average shares outstanding  5,652,071  5,601,705  50,366 0.9%
        


  PRIVATE BANCORP OF AMERICA, INC.
  Consolidated average balance sheet, interest, yield and rates
  (Unaudited)
  (Dollars in thousands)
                   
  For the three months ended
  June 30, 2022 March 31, 2022 June 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 $100,017 $205 0.82% $116,903 $134 0.46% $137,902 $40 0.12%
Investment securities  125,550  571 1.82%  109,252  401 1.47%  88,132  351 1.59%
Loans  1,339,095  17,931 5.37%  1,268,695  17,246 5.51%  1,125,958  14,637 5.21%
Total interest-earning assets  1,564,662  18,707 4.80%  1,494,850  17,781 4.82%  1,351,992  15,028 4.46%
Noninterest-earning assets  27,614      21,502      18,217    
Total Assets $1,592,276     $1,516,352     $1,370,209    
                   
Interest-Bearing Liabilities                  
Interest-bearing transaction accounts $87,682 $54 0.25% $78,557 $16 0.08% $65,283 $12 0.07%
Money market  492,838  241 0.20%  498,146  192 0.16%  424,371  231 0.22%
Savings deposits  14,216  3 0.01%  13,523  3 0.09%  9,229  2 0.09%
Certificates of deposit  67,184  111 0.66%  68,525  116 0.69%  75,537  164 0.87%
Total Interest-Bearing Deposits  661,920  409 0.25%  658,751  327 0.20%  574,420  409 0.29%
                   
FHLB advances  10,000  42 1.64%  10,000  41 1.66%  41,153  748 7.29%
Other borrowings  17,948  272 6.06%  17,948  272 6.06%  17,942  272 6.06%
Total Interest-Bearing Liabilities  27,948  314 4.49%  27,948  313 4.54%  59,095  1,020 6.92%
                   
Noninterest-bearing deposits  757,728      682,880      609,932    
Total Funding Sources  1,447,596  723 0.20%  1,369,579  640 0.19%  1,243,447  1,429 0.46%
                   
Noninterest-bearing liabilities  11,891      14,301      11,881    
Shareholders’ equity  132,789      132,472      114,881    
                   
Total Liabilities and Shareholders’ Equity $1,592,276     $1,516,352     $1,370,209    
                   
Net interest income/spread   $17,984 4.60%   $17,141 4.63%   $13,599 4.00%
Net interest margin     4.61%     4.65%     4.03%
                      


PRIVATE BANCORP OF AMERICA, INC.
Consolidated average balance sheet, interest, yield and rates
(Unaudited)
(Dollars in thousands)
             
   
  June 30, 2022 June 30, 2021
  Average
Balance
 Interest Average
Yield/Rate
 Average
Balance
 Interest Average
Yield/Rate
Interest-Earnings Assets:            
Deposits in other financial institutions $108,413 $339 0.63% $187,826 $99 0.11%
Investment securities  117,447  972 1.67%  73,759  656 1.79%
Loans  1,304,089  35,177 5.44%  1,085,617  28,796 5.35%
Total interest-earning assets  1,529,949  36,488 4.81%  1,347,202  29,551 4.42%
Noninterest-earning assets  24,572      19,368    
Total Assets $1,554,521     $1,366,570    
             
Interest-Bearing Liabilities            
Interest-bearing transaction accounts $83,145 $68 0.16% $61,682 $24 0.08%
Money market  495,478  433 0.18%  427,877  466 0.22%
Savings deposits  13,872  7 0.10%  8,999  5 0.11%
Certificates of deposit  67,851  227 0.67%  87,960  431 0.99%
Total Interest-Bearing Deposits  660,346  735 0.22%  586,518  926 0.32%
             
FHLB advances  10,000  83 1.67%  57,017  1,696 6.00%
Other borrowings  17,949  544 6.11%  17,941  545 6.06%
Total Interest-Bearing Liabilities  27,949  627 4.52%  74,958  2,239 6.03%
             
Noninterest-bearing deposits  720,504      578,652    
Total Funding Sources  1,408,799  1,362 0.19%  1,240,128  3,165 0.51%
             
Noninterest-bearing liabilities  13,084      13,845    
Shareholders’ equity  132,638      112,597    
             
Total Liabilities and Shareholders’ Equity $1,554,521     $1,366,570    
             
Net interest income/spread   $35,126 4.61%   $26,386 3.91%
Net interest margin     4.63%     3.95%
             


 PRIVATE BANCORP OF AMERICA, INC.
 Condensed Balance Sheets
 (Unaudited)
 (Dollars in thousands, except per share amounts)
 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021
Assets         
Cash and due from banks$88,792  $124,015  $149,085  $138,553  $92,108 
Interest-bearing time deposits with other institutions 6,157   5,817   5,760   5,760   5,760 
Investment securities 113,565   114,382   102,065   93,099   88,755 
Loans held for sale 4,460   1,999   24,658   35,448   19,625 
Total loans held-for-investment (excluding PPP loans) 1,376,801   1,276,043   1,188,634   1,117,983   1,053,938 
SBA PPP loans 2,718   8,795   35,524   74,152   110,673 
Allowance for loan losses (17,776)  (17,117)  (16,975)  (16,141)  (15,708)
Net loans 1,361,743   1,267,721   1,207,183   1,175,994   1,148,903 
Right of use asset 3,037   3,400   3,760   4,115   5,185 
Premises and equipment, net 2,640   2,813   2,294   2,459   2,578 
Other assets and interest receivable 31,708   25,335   22,279   19,254   19,856 
Total assets$ 1,612,102  $ 1,545,482  $ 1,517,084  $ 1,474,682  $ 1,382,770 
          
Liabilities and Shareholders’ Equity         
          
Liabilities         
Noninterest Bearing$747,006  $724,469  $682,589  $646,233  $603,914 
Interest Bearing 693,646   646,545   663,074   667,012   601,530 
Total Deposits 1,440,652   1,371,014   1,345,663   1,313,245   1,205,444 
Borrowings 27,950   27,948   27,947   27,945   47,943 
Accrued interest payable and other liabilities 13,305   14,630   15,110   11,613   13,059 
Total liabilities 1,481,907   1,413,592   1,388,720   1,352,803   1,266,446 
          
Shareholders’ equity         
Common stock 71,516   70,899   70,850   70,470   70,405 
Additional paid-in capital 3,368   3,602   3,343   3,465   3,179 
Retained earnings 64,036   61,424   54,922   47,845   42,810 
Accumulated other comprehensive (loss) income (8,725)  (4,035)  (751)  99   (70)
Total shareholders’ equity 130,195   131,890   128,364   121,879   116,324 
Total liabilities and shareholders’ equity$ 1,612,102  $ 1,545,482  $ 1,517,084  $ 1,474,682  $ 1,382,770 
          
Book value per common share$23.31  $23.42  $22.81  $21.70  $20.71 
Tangible book value per common share$22.68  $22.80  $22.26  $21.27  $20.33 
Shares outstanding 5,584,465   5,630,993   5,627,735   5,617,273   5,617,020 
          
 Regulatory Capital Ratios (PBAM) 1
 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021
Tier 1 leverage ratio 8.61%  8.85%  8.42%  8.19%  8.36%
Tier 1 risk-based capital ratio 9.51%  10.31%  10.63%  10.64%  10.74%
Common equity Tier 1 ratio 9.51%  10.31%  10.63%  10.64%  10.74%
Total risk-based capital ratio 12.01%  12.94%  13.38%  13.48%  13.68%
Tangible equity / tangible assets 8.46%  8.66%  8.35%  8.12%  8.28%
          
1 Preliminary ratios for June 30, 2022         
          


 PRIVATE BANCORP OF AMERICA, INC.
 Condensed Statements of Income
 (Unaudited)
 (Dollars in thousands, except per share amounts)
 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021
Interest income$18,706  $17,781  $17,356  $16,458  $15,028 
Interest expense 723   640   667   741   1,429 
Net interest income 17,983   17,141   16,689   15,717   13,599 
Provision for loan losses 659   142   834   433   1,146 
Net interest income after provision for loan losses 17,324   16,999   15,855   15,284   12,453 
          
Noninterest income 1,442   3,109   4,265   2,389   2,805 
          
Salary and employee benefits 7,374   7,313   6,492   6,595   5,966 
Occupancy and equipment 808   723   741   1,484   820 
Data processing 824   653   703   799   690 
Professional services 1,835   915   843   552   791 
Other expenses 1,759   1,255   1,060   1,034   891 
Total noninterest expense 12,600   10,859   9,839   10,464   9,158 
          
Income before provision for income taxes 6,166   9,249   10,281   7,209   6,100 
Income taxes 1,769   2,747   2,986   2,158   1,806 
Net income$4,397  $6,502  $7,295  $5,051  $4,294 
Net income available to common shareholders$4,347  $6,432  $7,204  $4,984  $4,231 
          
Earnings per share         
Basic earnings per share$0.78  $1.16  $1.30  $0.90  $0.76 
Diluted earnings per share$0.77  $1.13  $1.28  $0.89  $0.75 
          
Average shares outstanding 5,543,065   5,568,400   5,547,422   5,543,403   5,536,111 
Diluted average shares outstanding 5,639,282   5,672,701   5,638,186   5,629,900   5,622,075 
          
 Performance Ratios
 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021
ROAA 1.12%  1.74%  1.91%  1.39%  1.26%
ROAE 13.43%  19.91%  22.72%  16.61%  14.99%
ROTE 13.62%  20.20%  23.07%  16.88%  15.25%
Net interest margin 4.61%  4.65%  4.44%  4.39%  4.03%
Net interest spread 4.60%  4.63%  4.43%  4.38%  4.00%
Efficiency ratio 64.86%  53.62%  46.96%  57.79%  55.83%
Noninterest expense / average assets 3.21%  2.90%  2.58%  2.88%  2.68%
                    


 PRIVATE BANCORP OF AMERICA, INC.
 (Unaudited)
 Selected Quarterly Average Balances
 (Dollars in thousands)
 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021
Total assets$1,592,276  $1,516,352  $1,514,583  $1,442,278  $1,370,209 
Earning assets$1,564,662  $1,494,850  $1,490,235  $1,420,970  $1,351,992 
Total loans, including loans held for sale$1,339,095  $1,268,695  $1,222,234  $1,185,865  $1,125,958 
Total deposits$1,419,648  $1,341,631  $1,346,777  $1,276,349  $1,184,352 
Total equity$132,789  $132,472  $127,387  $120,618  $114,881 
          
          
 Loan Balances by Type
 (Dollars in thousands)
 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021
Real estate - investor owned$390,628  $350,152  $324,167  $307,469  $293,461 
Real estate - owner occupied 359,270   371,840   339,081   329,985   313,579 
Real estate - multifamily 121,693   105,964   97,285   82,460   72,790 
Real estate - single family 94,212   89,630   86,399   81,239   90,223 
Commercial business 359,692   307,421   294,944   274,708   244,493 
SBA PPP loans 2,718   8,795   35,524   74,152   110,673 
Land and construction 44,856   44,856   39,702   34,996   32,413 
Consumer 6,450   6,180   7,049   7,126   6,979 
Total loans held for investment$1,379,519  $1,284,838  $1,224,151  $1,192,135  $1,164,611 
          
          
 Deposits by Type
 (Dollars in thousands)
 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021
Non interest bearing DDA$747,006  $724,469  $682,589  $646,233  $603,914 
Interest bearing DDA 93,405   75,904   81,788   68,056   70,320 
Savings & MMA 533,145   503,552   513,070   530,782   463,165 
Retail CD 3,387   3,384   5,281   5,633   5,827 
Jumbo CD 63,709   63,705   62,935   62,541   62,218 
Total deposits$1,440,652  $1,371,014  $1,345,663  $1,313,245  $1,205,444 
          
          
 Asset Quality
 (Dollars in thousands)
 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021
Total loans held-for-investment$1,379,519  $1,284,838  $1,224,151  $1,192,135  $1,164,611 
30-89 day past due loans$-  $-  $-  $200  $- 
90+ day past due loans$-  $-  $-  $-  $- 
Nonaccrual loans$1,453  $1,453  $1,510  $1,494  $1,540 
          
NPAs / Assets 0.09%  0.09%  0.10%  0.10%  0.11%
NPLs / Total loans held-for-investment & OREO 0.11%  0.11%  0.12%  0.12%  0.13%
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 1.29%  1.33%  1.39%  1.35%  1.35%
Allowance for loan losses to nonaccrual loans 1223.40%  1178.05%  1124.11%  1080.39%  1020.00%

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