Fourth Quarter Highlights
- Net income for the fourth quarter of 2022 was $7.4 million, up 17.0% from the prior quarter and 5.0% from the same period in the prior year
- Diluted earnings per share for the fourth quarter of 2022 was $1.31, up 17.0% from the prior quarter and 5.6% from the same period in the prior year
- Total loans held-for-investment (“HFI”) reached $1.6 billion at December 31, 2022, an increase of $100.9 million or 6.8% from the prior quarter
- The allowance for loan losses was 1.21% of total loans HFI at December 31, 2022 compared to 1.28% as of September 30, 2022
- The provision for loan losses for the fourth quarter of 2022 was $60 thousand, a decrease from $1.3 million for the prior quarter
- Noninterest-bearing demand deposits, which represent 41.3% of total deposits at December 31, 2022, declined $71.8 million or 9.4% from the prior quarter. Total core deposits, which exclude brokered deposits, were $1.5 billion.
- Net interest margin was 5.17% for the fourth quarter of 2022, as compared to 4.99% for the prior quarter and 4.44% for the same period in the prior year
- Total cost of funding sources increased to 0.86% for the fourth quarter of 2022, an increase from 0.36% in the prior quarter. Total cost of deposits was 0.79%
- Tangible book value per share was $25.02 at December 31, 2022, up from $23.51 September 30, 2022 as a result of strong earnings
2022 Full Year and Period End Highlights
- Record net income of $24.7 million, an increase of 17.4% from $21.0 million for FY’21
- Diluted earnings per share of $4.33, an increase of 17.2% from $3.69 for FY’21
- Pretax, pre-provision net revenue of $37.1 million, representing a 13.9% increase from $32.6 million for FY’21
- Return on average assets of 1.51%, compared to 1.48% for FY’21
- Return on average equity of 18.16%, compared to 17.77% for FY’21
- Net interest margin of 4.87%, compared to 4.19% for FY’21
- Total assets increased to $1.9 billion, representing an increase of 22.2% since December 31, 2021
- Loans HFI reached $1.6 billion, an increase of $363.8 million or 29.7% since December 31, 2021
- Total deposits reached $1.7 billion, an increase of $329.5 million or 24.5% since December 31, 2021
- Non-interest-bearing demand deposits reached $691.4 million, an increase of $8.8 million or 1.3% since December 31, 2021
LA JOLLA, Calif., Jan. 30, 2023 (GLOBE NEWSWIRE) — Private Bancorp of America, Inc. (OTCQX:PBAM), (“Company”) and CalPrivate Bank (“Bank”) announced unaudited financial results for the fourth quarter and full year ended December 31, 2022. The Company reported net income of $7.4 million, or $1.31 per diluted share, for the fourth quarter of 2022 compared to $7.3 million, or $1.28 per diluted share, for the prior year same quarter. Net income was $24.7 million, or $4.33 per diluted share, for the year ended December 31, 2022, compared to $21.0 million, or $3.69 per diluted share, in FY’21.
Rick Sowers, President and CEO of the Company and the Bank stated, “I am extremely proud of the progress our Team made this year. Earnings set a new record for the Company and despite a challenging environment, CalPrivate’s commitment to our Distinctly Different service remained steadfast and allowed our Team to focus on delivering value to Clients and Shareholders. Loan growth was strong for the quarter and full year, increasing $100.9 million and $363.8 million, respectively.”
Sowers added, “Net interest income was strong at $22.6 million for Q4’22. Additionally, while growing our revenue, we continued efforts to monitor and manage our efficiency ratio, which was 55.2% in Q4’22. While we anticipate that funding costs will increase, and there is mounting competition for deposits, we will continue to invest in our infrastructure to bring world class service to our Clients.”
“The Company continues to exhibit successful customer acquisition activity as shown by the growth in loans despite a rising rate environment. Additionally, the Company continues to invest in people and infrastructure needed to support the continued growth of the CalPrivate franchise,” said Selwyn Isakow, Chairman of the Board of the Company and the Bank.
Isakow added, “The Board is pleased with CalPrivate’s financial performance in 2022, and we remain optimistic about management’s ability to react to and successfully navigate the Company during these uncertain times.”
STATEMENT OF INCOME
Net Interest Income
Net interest income for the fourth quarter of 2022 totaled $22.6 million, representing an increase of $2.0 million or 9.7% compared to the prior quarter. This increase was driven primarily by $4.1 million higher interest income caused by the increase in average loan balances and higher yield on loans partially offset by the $2.1 million increase in interest expense, which resulted from higher deposit costs due to higher average deposit balances along with an increase in deposit rates.
Net Interest Margin
The net interest margin for the fourth quarter of 2022 was 5.17% compared to 4.99% for the prior quarter. The 18 basis point increase in net interest margin was due to higher rates on new loan originations and variable rate loans and investment securities, partially offset by higher rates paid on deposits. The yield on earning assets was 5.97% for the fourth quarter of 2022 compared with 5.32% for the prior quarter and the cost of total funding sources was 0.86% for the fourth quarter of 2022 compared to 0.36% in the prior quarter.
Provision for Loan Losses
The provision for loan losses for the fourth quarter of 2022 was $60 thousand, as compared to $1.3 million in the prior quarter. For more details, please refer to the “Asset Quality” section below.
Noninterest Income
Noninterest income was $1.1 million for the fourth quarter of 2022, a decline of $333 thousand compared to the third quarter of 2022. SBA loan sales for the fourth quarter of 2022 were $11.4 million with a 10.23% average trade premium resulting in a net gain on sale of $792 thousand, compared with $10.4 million with a 9.2% average trade premium resulting in a net gain on sale of $647 thousand in the prior quarter. The decline in noninterest income was primarily related to faster prepayments in the SBA portfolio which resulted in accelerated amortization and valuation adjustments to the SBA servicing asset.
Noninterest Expense
Noninterest expense was $13.1 million for the fourth quarter of 2022, an increase of $1.3 million, or 11.5%, compared to the prior quarter. Much of the increase was due to higher variable compensation and benefits expense related to strong loan growth, partially offset by the decline in professional services related to the active and on-going lawsuit for the recovery of the charged-off loan for the ANI Development, LLC/Gina Champion-Cain fraud case and Chicago Title (parent company, Fidelity National Financial) for its 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 continue to have an impact on rising wages as well as increased costs related to third party service providers, which we proactively monitor and manage.
Provision for Income Tax Expense
Provision for income tax expense was $3.1 million for the fourth quarter of 2022, compared to $2.6 million for the prior quarter. The effective tax rate for 2022 was 29.3% compared to 29.6% for 2021.
STATEMENT OF FINANCIAL CONDITION
The Company reported total assets of $1.9 billion as of December 31, 2022, representing an increase of $126.6 million or 7.3% since September 30, 2022. The increase in assets was primarily due to higher net loans, which were funded by growth in deposits and an increase in wholesale borrowings. Loans HFI totaled $1.6 billion as of December 31, 2022, an increase of $100.9 million or 6.8% since September 30, 2022. Total deposits were $1.7 billion as of December 31, 2022, an increase of $144.5 million since September 30, 2022. Noninterest-bearing deposits represented 41.3% of total deposits as of December 31, 2022. Interest-bearing deposits grew $216.4 million from the prior quarter and included $61.6 million of callable brokered CDs. Additionally, as of December 31, 2022, the net unrealized loss on the available-for-sale investment securities portfolio, which is comprised mostly of US Treasury and Government Agency debt, was $14.4 million (pre-tax) compared to a loss of $15.2 million as of September 30, 2022. The average duration of the Bank’s investment securities portfolio is 4.7 years.
Asset Quality
As of December 31, 2022, the allowance for loan losses was $19.2 million or 1.21% of total loans HFI (excluding PPP loans), compared to 1.29% at September 30, 2022. The decrease in the coverage ratio was due to adjustments to the historical loss rate factors and qualitative factors which reflects the continuation of a sustained period of no charge-offs and low delinquencies. There were no net charge-offs (recoveries) during the quarter. Given the credit quality of the loan portfolio, management believes we are sufficiently reserved.
As of December 31, 2022, there are no doubtful credits and classified assets were $15.7 million, down from $15.9 million at September 30, 2022. Total classified assets at December 31, 2022 consisted of 13 loans, of which 7 loans totaling $10.0 million were secured by real estate with a weighted average LTV of 46%. The remaining 6 loans included 5 SBA loans with a balance of $3.2 million where 3 loans were 75% and 2 were 90% guaranteed by the SBA.
Capital Ratios (1)
The Bank’s capital ratios were in excess of the levels established for “well capitalized” institutions and are as follows:
| Dec 31, 2022 (1) | Dec 31, 2021 | |
| CalPrivate Bank | ||
| Tier I leverage ratio | 9.52% | 9.27% |
| Tier I risk-based capital ratio | 10.10% | 11.63% |
| Total risk-based capital ratio | 11.35% | 12.88% |
(1) December 31, 2022, capital ratios are preliminary and subject to change.
About Private Bancorp of America, Inc.
Private Bancorp of America, Inc. (OTCQX: PBAM), is the holding company for CalPrivate Bank. CalPrivate Bank provides a Distinctly Different banking experience through unparalleled service and creative funding solutions to high-net-worth individuals, professionals, locally owned businesses, and real estate entrepreneurs. Customers are serviced through offices in Coronado, San Diego, La Jolla, Newport Beach, El Segundo and Beverly Hills as well as efficient electronic banking offerings. The Bank also offers various portfolio and government guaranteed lending programs, including SBA and cross-border Export-Import Bank programs. CalPrivate Bank is an SBA Preferred Lender and a Bauer Financial 5-star rated bank.
CalPrivate Bank’s website is www.calprivate.bank.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures in addition to results presented in accordance with GAAP. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s results of operations and financial condition and to enhance investors’ overall understanding of such results of operations and financial condition, permit investors to effectively analyze financial trends of our business activities, and enhance comparability with peers across the financial services sector. These non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures prepared in accordance with GAAP and should be read in conjunction with the Company’s GAAP financial information. A reconciliation of the most comparable GAAP financial measures to non-GAAP financial measures is included in the accompanying financial tables.
Investor Relations Contacts
Rick Sowers
President and Chief Executive Officer
Private Bancorp of America, Inc., and CalPrivate Bank
(424) 303-4894
Cory Stewart
Executive Vice President and Chief Financial Officer
Private Bancorp of America, Inc., and CalPrivate Bank
(206) 293-3669
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) | ||||||||||||
| December 31, 2022 | September 30, 2022 | December 31, 2021 | ||||||||||
| Assets | ||||||||||||
| Cash and due from banks | $ | 14,495 | $ | 13,506 | $ | 12,336 | ||||||
| Interest-bearing deposits in other financial institutions | 32,175 | 44,776 | 39,663 | |||||||||
| Interest-bearing deposits at Federal Reserve Bank | 83,738 | 43,891 | 97,086 | |||||||||
| Total cash and due from banks | 130,408 | 102,173 | 149,085 | |||||||||
| Interest-bearing time deposits with other institutions | 6,157 | 6,157 | 5,760 | |||||||||
| Investment securities available for sale | 104,652 | 107,332 | 102,066 | |||||||||
| Loan held for sale | 6,981 | 7,789 | 24,658 | |||||||||
| Total loans held-for-investment | 1,587,960 | 1,487,098 | 1,224,158 | |||||||||
| Allowance for loan losses | (19,152 | ) | (19,092 | ) | (16,974 | ) | ||||||
| Net loans | 1,568,808 | 1,468,006 | 1,207,184 | |||||||||
| Federal Home Loan Bank stock, at cost | 7,020 | 7,020 | 4,909 | |||||||||
| Right of use asset | 3,265 | 2,669 | 3,759 | |||||||||
| Premises and equipment, net | 1,742 | 2,040 | 2,294 | |||||||||
| Servicing assets, net | 3,007 | 3,502 | 3,079 | |||||||||
| Accrued interest receivable | 5,291 | 4,262 | 3,355 | |||||||||
| Other assets | 16,180 | 15,951 | 10,935 | |||||||||
| Total assets | $ | 1,853,511 | $ | 1,726,901 | $ | 1,517,084 | ||||||
| Liabilities and Shareholders’ Equity | ||||||||||||
| Liabilities | ||||||||||||
| Noninterest bearing | $ | 691,392 | $ | 763,227 | $ | 682,589 | ||||||
| Interest Bearing | 983,730 | 767,371 | 663,074 | |||||||||
| Total deposits | 1,675,122 | 1,530,598 | 1,345,663 | |||||||||
| FHLB borrowings | – | 30,000 | 10,000 | |||||||||
| Other borrowings | 17,954 | 17,952 | 17,947 | |||||||||
| Accrued interest payable and other liabilities | 17,111 | 13,417 | 15,110 | |||||||||
| Total liabilities | 1,710,187 | 1,591,967 | 1,388,720 | |||||||||
| Shareholders’ equity | ||||||||||||
| Common stock | 72,221 | 71,671 | 70,850 | |||||||||
| Additional paid-in capital | 3,353 | 3,568 | 3,343 | |||||||||
| Retained earnings | 77,810 | 70,386 | 54,922 | |||||||||
| Accumulated other comprehensive (loss) income, net | (10,060 | ) | (10,691 | ) | (751 | ) | ||||||
| Total shareholders’ equity | 143,324 | 134,934 | 128,364 | |||||||||
| Total liabilities and shareholders’ equity | $ | 1,853,511 | $ | 1,726,901 | $ | 1,517,084 | ||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
| (Unaudited) | |||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||
| For the three months ended | Year to Date | ||||||||||||||
| December 31, 2022 | September 30, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | |||||||||||
| Interest Income | |||||||||||||||
| Loans | $ | 24,717 | $ | 21,028 | $ | 16,941 | $ | 80,922 | $ | 61,806 | |||||
| Investment securities | 592 | 578 | 352 | 2,143 | 1,338 | ||||||||||
| Deposits in other financial institutions | 756 | 372 | 63 | 1,467 | 221 | ||||||||||
| Total interest income | 26,065 | 21,978 | 17,356 | 84,532 | 63,365 | ||||||||||
| Interest Expense | |||||||||||||||
| Deposits | 3,149 | 1,011 | 353 | 4,897 | 1,689 | ||||||||||
| Borrowings | 320 | 364 | 314 | 1,311 | 2,885 | ||||||||||
| Total interest expense | 3,469 | 1,375 | 667 | 6,208 | 4,574 | ||||||||||
| Net interest income | 22,596 | 20,603 | 16,689 | 78,324 | 58,791 | ||||||||||
| Provision for loan losses | 60 | 1,316 | 834 | 2,178 | 2,713 | ||||||||||
| Net interest income after provision for loan losses | 22,536 | 19,287 | 15,855 | 76,146 | 56,078 | ||||||||||
| Noninterest income: | |||||||||||||||
| Service charges on deposit accounts | 274 | 306 | 254 | 1,160 | 945 | ||||||||||
| Net gain on sale of loans | 792 | 647 | 3,670 | 4,678 | 9,309 | ||||||||||
| Other noninterest income | 6 | 452 | 348 | 1,190 | 1,084 | ||||||||||
| Total noninterest income | 1,072 | 1,405 | 4,272 | 7,028 | 11,338 | ||||||||||
| Noninterest expense: | |||||||||||||||
| Compensation and employee benefits | 8,482 | 7,261 | 6,802 | 30,430 | 24,278 | ||||||||||
| Occupancy and equipment | 819 | 756 | 741 | 3,106 | 3,855 | ||||||||||
| Data processing | 942 | 993 | 703 | 3,411 | 2,827 | ||||||||||
| Professional services | 1,018 | 1,493 | 843 | 5,261 | 2,837 | ||||||||||
| Other expenses | 1,814 | 1,224 | 1,068 | 6,036 | 3,756 | ||||||||||
| Total noninterest expense | 13,075 | 11,727 | 10,157 | 48,244 | 37,553 | ||||||||||
| Income before provision for income taxes | 10,533 | 8,965 | 9,970 | 34,930 | 29,863 | ||||||||||
| Provision for income taxes | 3,102 | 2,614 | 2,891 | 10,233 | 8,833 | ||||||||||
| Net income | $ | 7,431 | $ | 6,351 | $ | 7,079 | $ | 24,697 | $ | 21,030 | |||||
| Net income available to common shareholders | $ | 7,383 | $ | 6,306 | $ | 7,002 | $ | 24,495 | $ | 20,746 | |||||
| Earnings per share | |||||||||||||||
| Basic earnings per share | $ | 1.33 | $ | 1.14 | $ | 1.26 | $ | 4.40 | $ | 3.75 | |||||
| Diluted earnings per share | $ | 1.31 | $ | 1.12 | $ | 1.24 | $ | 4.33 | $ | 3.69 | |||||
| Average shares outstanding | 5,561,376 | 5,549,480 | 5,547,422 | 5,561,358 | 5,535,581 | ||||||||||
| Diluted average shares outstanding | 5,655,355 | 5,640,841 | 5,638,186 | 5,658,434 | 5,617,017 | ||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||||||||||
| Consolidated average balance sheet, interest, yield and rates | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||
| For the three months ended | |||||||||||||||||||||||||||
| December 31, 2022 | September 30, 2022 | December 31, 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 | $ | 91,324 | $ | 756 | 3.28 | % | $ | 77,353 | $ | 372 | 1.91 | % | $ | 171,279 | $ | 63 | 0.15 | % | |||||||||
| Investment securities | 114,390 | 592 | 2.07 | % | 122,184 | 578 | 1.89 | % | 96,722 | 351 | 1.44 | % | |||||||||||||||
| Loans, including LHFS | 1,527,863 | 24,717 | 6.42 | % | 1,438,489 | 21,028 | 5.80 | % | 1,222,234 | 16,942 | 5.50 | % | |||||||||||||||
| Total interest-earning assets | 1,733,577 | 26,065 | 5.97 | % | 1,638,026 | 21,978 | 5.32 | % | 1,490,235 | 17,356 | 4.62 | % | |||||||||||||||
| Noninterest-earning assets | 25,627 | 27,465 | 24,348 | ||||||||||||||||||||||||
| Total Assets | $ | 1,759,204 | $ | 1,665,491 | $ | 1,514,583 | |||||||||||||||||||||
| Interest-Bearing Liabilities | |||||||||||||||||||||||||||
| Interest-bearing transaction accounts | $ | 141,030 | $ | 295 | 0.83 | % | $ | 92,986 | $ | 166 | 0.71 | % | $ | 74,158 | $ | 14 | 0.07 | % | |||||||||
| Money market | 597,670 | 1,674 | 1.11 | % | 535,473 | 680 | 0.50 | % | 504,171 | 202 | 0.16 | % | |||||||||||||||
| Savings deposits | 13,444 | 18 | 0.53 | % | 13,437 | 8 | 0.24 | % | 10,602 | 3 | 0.11 | % | |||||||||||||||
| Certificates of deposit | 101,202 | 1,162 | 4.56 | % | 69,676 | 157 | 0.89 | % | 68,408 | 134 | 0.78 | % | |||||||||||||||
| Total Interest-Bearing Deposits | 853,346 | 3,149 | 1.46 | % | 711,572 | 1,011 | 0.56 | % | 657,339 | 353 | 0.21 | % | |||||||||||||||
| FHLB advances | 12,195 | 112 | 3.64 | % | 15,299 | 92 | 2.39 | % | 10,000 | 42 | 1.67 | % | |||||||||||||||
| Other borrowings | 18,063 | 208 | 4.57 | % | 17,951 | 272 | 6.06 | % | 17,945 | 272 | 6.01 | % | |||||||||||||||
| Total Interest-Bearing Liabilities | 30,258 | 320 | 4.20 | % | 33,250 | 364 | 4.34 | % | 27,945 | 314 | 4.46 | % | |||||||||||||||
| Noninterest-bearing deposits | 720,656 | 771,167 | 689,438 | ||||||||||||||||||||||||
| Total Funding Sources | 1,604,260 | 3,469 | 0.86 | % | 1,515,989 | 1,375 | 0.36 | % | 1,374,722 | 667 | 0.19 | % | |||||||||||||||
| Noninterest-bearing liabilities | 13,614 | 4,775 | 12,474 | ||||||||||||||||||||||||
| Shareholders’ equity | 141,330 | 144,727 | 127,387 | ||||||||||||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 1,759,204 | $ | 1,665,491 | $ | 1,514,583 | |||||||||||||||||||||
| Net interest income/spread | $ | 22,596 | 5.11 | % | $ | 20,603 | 4.96 | % | $ | 16,689 | 4.43 | % | |||||||||||||||
| Net interest margin | 5.17 | % | 4.99 | % | 4.44 | % | |||||||||||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||
| Consolidated average balance sheet, interest, yield and rates | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Year to Date | |||||||||||||||||||
| December 31, 2022 | December 31, 2021 | ||||||||||||||||||
| Average Balance |
Interest | Average Yield/Rate |
Average Balance |
Interest | Average Yield/Rate |
||||||||||||||
| Interest-Earnings Assets: | |||||||||||||||||||
| Deposits in other financial institutions | $ | 96,277 | $ | 1,467 | 1.52 | % | $ | 172,268 | $ | 221 | 0.13 | % | |||||||
| Investment securities | 117,870 | 2,143 | 1.82 | % | 84,261 | 1,338 | 1.59 | % | |||||||||||
| Loans | 1,394,369 | 80,922 | 5.80 | % | 1,145,320 | 61,806 | 5.40 | % | |||||||||||
| Total interest-earning assets | 1,608,516 | 84,532 | 5.26 | % | 1,401,849 | 63,365 | 4.52 | % | |||||||||||
| Noninterest-earning assets | 25,719 | 21,115 | |||||||||||||||||
| Total Assets | $ | 1,634,235 | $ | 1,422,964 | |||||||||||||||
| Interest-Bearing Liabilities | |||||||||||||||||||
| Interest-bearing transaction accounts | $ | 100,216 | $ | 530 | 0.53 | % | $ | 66,575 | $ | 50 | 0.08 | % | |||||||
| Money market | 531,317 | 2,789 | 0.52 | % | 463,595 | 915 | 0.20 | % | |||||||||||
| Savings deposits | 13,654 | 33 | 0.24 | % | 9,564 | 10 | 0.10 | % | |||||||||||
| Certificates of deposit | 76,717 | 1,545 | 2.01 | % | 78,193 | 714 | 0.91 | % | |||||||||||
| Total Interest-Bearing Deposits | 721,904 | 4,897 | 0.68 | % | 617,927 | 1,689 | 0.27 | % | |||||||||||
| FHLB advances | 11,889 | 288 | 2.42 | % | 34,521 | 1,798 | 5.21 | % | |||||||||||
| Other borrowings | 17,978 | 1,023 | 5.69 | % | 17,943 | 1,087 | 6.06 | % | |||||||||||
| Total Interest-Bearing Liabilities | 29,867 | 1,311 | 4.39 | % | 52,464 | 2,885 | 5.50 | % | |||||||||||
| Noninterest-bearing deposits | 733,313 | 621,042 | |||||||||||||||||
| Total Funding Sources | 1,485,084 | 6,208 | 0.42 | % | 1,291,433 | 4,574 | 0.35 | % | |||||||||||
| Noninterest-bearing liabilities | 13,120 | 13,180 | |||||||||||||||||
| Shareholders’ equity | 136,031 | 118,351 | |||||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 1,634,235 | $ | 1,422,964 | |||||||||||||||
| Net interest income/spread | $ | 78,324 | 4.84 | % | $ | 58,791 | 4.17 | % | |||||||||||
| Net interest margin | 4.87 | % | 4.19 | % | |||||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | ||||||||||||||||||||
| Condensed Balance Sheets | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||||
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and due from banks | $ | 130,408 | $ | 102,173 | $ | 88,792 | $ | 124,015 | $ | 149,085 | ||||||||||
| Interest-bearing time deposits with other institutions | 6,157 | 6,157 | 6,157 | 5,817 | 5,760 | |||||||||||||||
| Investment securities | 104,652 | 107,332 | 113,565 | 114,382 | 102,066 | |||||||||||||||
| Loans held for sale | 6,981 | 7,789 | 4,460 | 1,999 | 24,658 | |||||||||||||||
| Total loans held-for-investment (excluding PPP loans) | 1,586,681 | 1,485,749 | 1,376,801 | 1,276,043 | 1,188,634 | |||||||||||||||
| SBA PPP loans | 1,279 | 1,349 | 2,718 | 8,795 | 35,524 | |||||||||||||||
| Allowance for loan losses | (19,152 | ) | (19,092 | ) | (17,776 | ) | (17,117 | ) | (16,974 | ) | ||||||||||
| Net loans | 1,568,808 | 1,468,006 | 1,361,743 | 1,267,721 | 1,207,184 | |||||||||||||||
| Right of use asset | 3,265 | 2,669 | 3,037 | 3,400 | 3,759 | |||||||||||||||
| Premises and equipment, net | 1,742 | 2,040 | 2,640 | 2,813 | 2,294 | |||||||||||||||
| Other assets and interest receivable | 31,498 | 30,735 | 31,708 | 25,335 | 22,278 | |||||||||||||||
| Total assets | $ | 1,853,511 | $ | 1,726,901 | $ | 1,612,102 | $ | 1,545,482 | $ | 1,517,084 | ||||||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Noninterest Bearing | $ | 691,392 | $ | 763,227 | $ | 747,006 | $ | 724,469 | $ | 682,589 | ||||||||||
| Interest Bearing | 983,730 | 767,371 | 693,646 | 646,545 | 663,074 | |||||||||||||||
| Total Deposits | 1,675,122 | 1,530,598 | 1,440,652 | 1,371,014 | 1,345,663 | |||||||||||||||
| Borrowings | 17,954 | 47,952 | 27,950 | 27,948 | 27,947 | |||||||||||||||
| Accrued interest payable and other liabilities | 17,111 | 13,417 | 13,305 | 14,630 | 15,110 | |||||||||||||||
| Total liabilities | 1,710,187 | 1,591,967 | 1,481,907 | 1,413,592 | 1,388,720 | |||||||||||||||
| Shareholders’ equity | ||||||||||||||||||||
| Common stock | 72,221 | 71,671 | 71,516 | 70,899 | 70,850 | |||||||||||||||
| Additional paid-in capital | 3,353 | 3,568 | 3,368 | 3,602 | 3,343 | |||||||||||||||
| Retained earnings | 77,810 | 70,386 | 64,036 | 61,424 | 54,922 | |||||||||||||||
| Accumulated other comprehensive (loss) income | (10,060 | ) | (10,691 | ) | (8,725 | ) | (4,035 | ) | (751 | ) | ||||||||||
| Total shareholders’ equity | 143,324 | 134,934 | 130,195 | 131,890 | 128,364 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 1,853,511 | $ | 1,726,901 | $ | 1,612,102 | $ | 1,545,482 | $ | 1,517,084 | ||||||||||
| Book value per common share | $ | 25.55 | $ | 24.12 | $ | 23.31 | $ | 23.42 | $ | 22.81 | ||||||||||
| Tangible book value per common share | $ | 25.02 | $ | 23.51 | $ | 22.68 | $ | 22.80 | $ | 22.26 | ||||||||||
| Shares outstanding | 5,609,025 | 5,594,380 | 5,584,465 | 5,630,993 | 5,627,735 | |||||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||
| Condensed Statements of Income | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||||||
| For the three months ended | |||||||||||||||||||
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | |||||||||||||||
| Interest income | $ | 26,065 | $ | 21,978 | $ | 18,706 | $ | 17,781 | $ | 17,356 | |||||||||
| Interest expense | 3,469 | 1,375 | 723 | 640 | 667 | ||||||||||||||
| Net interest income | 22,596 | 20,603 | 17,983 | 17,141 | 16,689 | ||||||||||||||
| Provision for loan losses | 60 | 1,316 | 659 | 142 | 834 | ||||||||||||||
| Net interest income after provision for loan losses | 22,536 | 19,287 | 17,324 | 16,999 | 15,855 | ||||||||||||||
| Noninterest income | 1,072 | 1,405 | 1,442 | 3,109 | 4,272 | ||||||||||||||
| Compensation and employee benefits | 8,482 | 7,261 | 7,374 | 7,313 | 6,802 | ||||||||||||||
| Occupancy and equipment | 819 | 756 | 808 | 723 | 741 | ||||||||||||||
| Data processing | 942 | 993 | 824 | 653 | 703 | ||||||||||||||
| Professional services | 1,018 | 1,493 | 1,835 | 915 | 843 | ||||||||||||||
| Other expenses | 1,814 | 1,224 | 1,759 | 1,239 | 1,068 | ||||||||||||||
| Total noninterest expense | 13,075 | 11,727 | 12,600 | 10,843 | 10,157 | ||||||||||||||
| Income before provision for income taxes | 10,533 | 8,965 | 6,166 | 9,265 | 9,970 | ||||||||||||||
| Income taxes | 3,102 | 2,614 | 1,769 | 2,747 | 2,891 | ||||||||||||||
| Net income | $ | 7,431 | $ | 6,351 | $ | 4,397 | $ | 6,518 | $ | 7,079 | |||||||||
| Net income available to common shareholders | $ | 7,383 | $ | 6,306 | $ | 4,347 | $ | 6,448 | $ | 7,002 | |||||||||
| Earnings per share | |||||||||||||||||||
| Basic earnings per share | $ | 1.33 | $ | 1.14 | $ | 0.78 | $ | 1.16 | $ | 1.26 | |||||||||
| Diluted earnings per share | $ | 1.31 | $ | 1.12 | $ | 0.77 | $ | 1.14 | $ | 1.24 | |||||||||
| Average shares outstanding | 5,561,376 | 5,549,480 | 5,543,065 | 5,568,400 | 5,547,422 | ||||||||||||||
| Diluted average shares outstanding | 5,655,355 | 5,640,841 | 5,639,282 | 5,672,701 | 5,638,186 | ||||||||||||||
| Performance Ratios | |||||||||||||||||||
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | |||||||||||||||
| ROAA | 1.68 | % | 1.51 | % | 1.11 | % | 1.74 | % | 1.91 | % | |||||||||
| ROAE | 20.86 | % | 17.41 | % | 13.28 | % | 19.95 | % | 22.72 | % | |||||||||
| ROATCE (1) | 21.37 | % | 17.85 | % | 13.64 | % | 20.48 | % | 23.25 | % | |||||||||
| Net interest margin | 5.17 | % | 4.99 | % | 4.61 | % | 4.65 | % | 4.44 | % | |||||||||
| Net interest spread | 5.11 | % | 4.96 | % | 4.60 | % | 4.63 | % | 4.43 | % | |||||||||
| Efficiency ratio (1) | 55.24 | % | 53.29 | % | 64.86 | % | 53.55 | % | 48.46 | % | |||||||||
| Noninterest expense / average assets | 2.95 | % | 2.79 | % | 3.17 | % | 2.90 | % | 2.66 | % | |||||||||
| (1) Non-GAAP measure. See GAAP to non-GAAP Reconciliation table. | |||||||||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Selected Quarterly Average Balances | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| For the three months ended | |||||||||||||||||||
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | |||||||||||||||
| Total assets | $ | 1,759,204 | $ | 1,665,491 | $ | 1,592,276 | $ | 1,516,352 | $ | 1,514,583 | |||||||||
| Earning assets | $ | 1,733,577 | $ | 1,638,026 | $ | 1,564,662 | $ | 1,494,850 | $ | 1,490,235 | |||||||||
| Total loans, including loans held for sale | $ | 1,527,863 | $ | 1,438,489 | $ | 1,339,095 | $ | 1,268,695 | $ | 1,222,234 | |||||||||
| Total deposits | $ | 1,574,002 | $ | 1,482,740 | $ | 1,419,648 | $ | 1,341,631 | $ | 1,346,777 | |||||||||
| Total shareholders’ equity | $ | 141,330 | $ | 144,727 | $ | 132,789 | $ | 132,472 | $ | 127,387 | |||||||||
| Loan Balances by Type | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | |||||||||||||||
| Real estate – investor owned | $ | 476,404 | $ | 403,950 | $ | 390,628 | $ | 350,152 | $ | 324,167 | |||||||||
| Real estate – owner occupied | 394,077 | 382,689 | 359,270 | 371,840 | 339,081 | ||||||||||||||
| Real estate – multifamily | 130,901 | 136,841 | 121,693 | 105,964 | 97,285 | ||||||||||||||
| Real estate – single family | 118,502 | 107,728 | 94,212 | 89,630 | 86,400 | ||||||||||||||
| Commercial business | 404,640 | 393,020 | 359,692 | 307,421 | 294,950 | ||||||||||||||
| SBA PPP loans | 1,279 | 1,349 | 2,718 | 8,795 | 35,524 | ||||||||||||||
| Land and construction | 56,153 | 55,418 | 44,856 | 44,856 | 39,702 | ||||||||||||||
| Consumer | 6,004 | 6,103 | 6,450 | 6,180 | 7,049 | ||||||||||||||
| Total loans held for investment | $ | 1,587,960 | $ | 1,487,098 | $ | 1,379,519 | $ | 1,284,838 | $ | 1,224,158 | |||||||||
| Deposits by Type | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | |||||||||||||||
| Non interest bearing DDA | $ | 691,392 | $ | 763,227 | $ | 747,006 | $ | 724,469 | $ | 682,589 | |||||||||
| Interest bearing DDA | 174,248 | 95,677 | 93,405 | 75,904 | 81,788 | ||||||||||||||
| Savings & MMA | 655,052 | 591,408 | 533,145 | 503,552 | 513,070 | ||||||||||||||
| Retail CD | 3,486 | 3,478 | 3,387 | 3,384 | 5,281 | ||||||||||||||
| Jumbo CD | 150,944 | 76,808 | 63,709 | 63,705 | 62,935 | ||||||||||||||
| Total deposits | $ | 1,675,122 | $ | 1,530,598 | $ | 1,440,652 | $ | 1,371,014 | $ | 1,345,663 | |||||||||
| Asset Quality | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | |||||||||||||||
| Total loans held-for-investment | $ | 1,587,960 | $ | 1,487,098 | $ | 1,379,519 | $ | 1,284,838 | $ | 1,224,158 | |||||||||
| Allowance for Loan Losses | $ | (19,152 | ) | $ | (19,092 | ) | $ | (17,776 | ) | $ | (17,117 | ) | $ | (16,975 | ) | ||||
| 30-89 day past due loans | $ | – | $ | – | $ | – | $ | – | $ | – | |||||||||
| 90+ day past due loans | $ | – | $ | – | $ | – | $ | – | $ | – | |||||||||
| Nonaccrual loans | $ | 3,880 | $ | 4,593 | $ | 1,453 | $ | 1,453 | $ | 1,510 | |||||||||
| NPAs / Assets | 0.21 | % | 0.27 | % | 0.09 | % | 0.09 | % | 0.10 | % | |||||||||
| NPLs / Total loans held-for-investment & OREO | 0.24 | % | 0.31 | % | 0.11 | % | 0.11 | % | 0.12 | % | |||||||||
| Net quarterly charge-offs | $ | – | $ | – | $ | – | $ | – | $ | – | |||||||||
| Net charge-offs/avg loans (annualized) | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | |||||||||
| Allowance for loan losses to loans HFI | 1.21 | % | 1.28 | % | 1.29 | % | 1.33 | % | 1.39 | % | |||||||||
| Allowance for loan losses to nonaccrual loans | 493.61 | % | 415.68 | % | 1,223.4 | % | 1,178.05 | % | 1,124.11 | % | |||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: efficiency ratio, pretax pre-provision net revenue, average tangible common equity, return on average tangible common equity. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures. | |||||||||||||||||||
| GAAP to Non-GAAP Reconciliation | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| For the three months ended | |||||||||||||||||||
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | |||||||||||||||
| Efficiency Ratio | |||||||||||||||||||
| Noninterest expense | $ | 13,075 | $ | 11,727 | $ | 12,600 | $ | 10,843 | $ | 10,157 | |||||||||
| Net interest income | 22,596 | 20,603 | 17,983 | 17,141 | 16,689 | ||||||||||||||
| Noninterest income | 1,072 | 1,405 | 1,442 | 3,109 | 4,272 | ||||||||||||||
| Total net interest income and noninterest income | 23,668 | 22,008 | 19,425 | 20,250 | 20,961 | ||||||||||||||
| Efficiency ratio (non-GAAP) | 55.2 | % | 53.3 | % | 64.9 | % | 53.5 | % | 48.5 | % | |||||||||
| Pretax pre-provision net revenue | |||||||||||||||||||
| Net interest income | $ | 22,596 | $ | 20,603 | $ | 17,983 | $ | 17,141 | $ | 16,689 | |||||||||
| Noninterest income | 1,072 | 1,405 | 1,442 | 3,109 | 4,272 | ||||||||||||||
| Total net interest income and noninterest income | 23,668 | 22,008 | 19,425 | 20,250 | 20,961 | ||||||||||||||
| Less: Noninterest expense | 13,075 | 11,727 | 12,600 | 10,843 | 10,157 | ||||||||||||||
| Pretax pre-provision net revenue (non-GAAP) | $ | 10,593 | $ | 10,281 | $ | 6,825 | $ | 9,407 | $ | 10,804 | |||||||||
| Return on Average Assets, Average Equity, Average Tangible Equity | |||||||||||||||||||
| Net income | $ | 7,431 | $ | 6,351 | $ | 4,397 | $ | 6,518 | $ | 7,079 | |||||||||
| Average assets | 1,759,204 | 1,665,491 | 1,592,276 | 1,516,352 | 1,514,583 | ||||||||||||||
| Average shareholders’ equity | 141,330 | 144,727 | 132,789 | 132,472 | 127,387 | ||||||||||||||
| Less: Average intangible assets | 3,385 | 3,599 | 3,490 | 3,379 | 2,908 | ||||||||||||||
| Average tangible common equity (non-GAAP) | 137,945 | 141,128 | 129,299 | 129,093 | 124,479 | ||||||||||||||
| Return on average assets | 1.68 | % | 1.51 | % | 1.11 | % | 1.74 | % | 1.91 | % | |||||||||
| Return on average equity | 20.86 | % | 17.41 | % | 13.28 | % | 19.95 | % | 22.72 | % | |||||||||
| Return on average tangible common equity (non-GAAP) | 21.37 | % | 17.85 | % | 13.64 | % | 20.48 | % | 23.25 | % | |||||||||
| Tangible book value per share | |||||||||||||||||||
| Total equity | 143,324 | 134,934 | 130,195 | 131,890 | 128,364 | ||||||||||||||
| Less: Total intangible assets | 3,007 | 3,502 | 3,525 | 3,079 | 2,374 | ||||||||||||||
| Total tangible equity | 140,317 | 131,432 | 126,670 | 128,811 | 125,990 | ||||||||||||||
| Shares outstanding | 5,609,025 | 5,594,380 | 5,584,465 | 5,630,993 | 5,627,735 | ||||||||||||||
| Tangible book value per share (non-GAAP) | $ | 25.02 | $ | 23.49 | $ | 22.68 | $ | 22.88 | $ | 22.39 | |||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||
| (Unaudited) | |||||||
| The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: efficiency ratio, pretax pre-provision net revenue, average tangible common equity, return on average tangible common equity. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures. | |||||||
| GAAP to Non-GAAP Reconciliation | |||||||
| (Dollars in thousands) | |||||||
| Year to Date | |||||||
| Dec 31, 2022 | Dec 31, 2021 | ||||||
| Efficiency Ratio | |||||||
| Noninterest expense | $ | 48,244 | $ | 37,553 | |||
| Net interest income | 78,324 | 58,791 | |||||
| Noninterest income | 7,028 | 11,338 | |||||
| Total net interest income and noninterest income | 85,352 | 70,129 | |||||
| Efficiency ratio (non-GAAP) | 56.5 | % | 53.5 | % | |||
| Pretax pre-provision net revenue | |||||||
| Net interest income | $ | 78,324 | $ | 58,791 | |||
| Noninterest income | 7,028 | 11,338 | |||||
| Total net interest income and noninterest income | 85,352 | 70,129 | |||||
| Less: Noninterest expense | 48,244 | 37,553 | |||||
| Pretax pre-provision net revenue (non-GAAP) | $ | 37,108 | $ | 32,576 | |||
| Return on Average Assets, Average Equity, Average Tangible Equity | |||||||
| Net income | $ | 24,697 | $ | 21,030 | |||
| Average assets | 1,634,235 | 1,422,964 | |||||
| Average shareholders’ equity | 136,031 | 118,351 | |||||
| Less: Average intangible assets | 3,464 | 2,194 | |||||
| Average tangible common equity(3) | 132,567 | 116,157 | |||||
| Return on average assets | 1.51 | % | 1.48 | % | |||
| Return on average equity | 18.16 | % | 17.77 | % | |||
| Return on average tangible common equity(non-GAAP) | 18.63 | % | 18.10 | % | |||
