First Quarter Highlights
- First quarter net income was $4.6 million, or $0.81 per diluted share, up from $4.4 million or $0.78 per diluted share in the prior quarter, and up 141.6% from $1.9 million or $0.34 per diluted share from the same period in 2020
- Net interest margin for the quarter was 3.89% compared with 4.74% in the prior quarter. The net interest margin excluding SBA PPP loans was 3.75% and 4.18% in the prior quarter
- Total loans were $1.1 billion, up 8.3% for the quarter and 22% year over year
- Funded $104.0 million in the second round of the SBA Paycheck Protection Program
- Allowance for Loan Losses to total loans is 1.33% and 1.52% excluding PPP loans
- Total deposits were $1.2 billion, up 4.6% for the quarter and 20.9% year over year
- Return on Average Assets of 1.37% and Return on Average Equity of 16.94%
LA JOLLA, Calif., April 26, 2021 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM), (“Company”) and CalPrivate Bank (“Bank”) announced unaudited financial results for the first quarter ending March 31, 2021. The Company reported net income of $4.6 million, or $0.81 per diluted share, for the first quarter of 2021 compared to $4.4 million, or $0.78 per diluted share for the fourth quarter of 2020.
Rick Sowers, President and CEO of the Company and the Bank stated, “We are pleased with the progress the Team continues to make in growing the Company and increasing our operating leverage. Loan demand is beginning to show signs of returning as the overall economy begins to open up and we expect that this will translate into new opportunities for our Clients and the Bank. We remain focused on building strong Relationships with our Clients and bringing a Solutions based approach to Private and Business Banking.”
Sowers continued, “Our SBA Team at Private Business Capital has positioned itself well in the markets we serve and this led to increased loan fundings and gain on sale income in the first quarter. Given the opportunities in the marketplace with reduced SBA fees, we anticipate a continued contribution to non-interest income in 2021. Additionally, the Bank was able to support our Clients and Communities with round 2 of the Paycheck Protection Program and originated loans totaling over $100 million in the quarter.”
Net Interest Income
Net interest income for the first quarter totaled $12.8 million representing a decrease of $1.8 million, or 12.5% compared to the fourth quarter of 2020 and an increase of $1.3 million or 10.8% increase for the same period in 2020. The decrease in net interest income for the quarter is due to a $1.4 million decrease in loan income. The decrease is due to a $1.5 million decrease in SBA PPP loan income during the quarter resulting from less loan forgiveness/payoffs and $607 thousand in higher borrowing costs. The increase in borrowing costs is due to a $619 thousand prepayment penalty associated with repaying $25 million in higher cost FHLB term advances. The increase compared to the first quarter of 2020 is due to increased average loan balances and lower funding costs partially offset by an increase in borrowing costs resulting from prepaying FHLB term advances.
Net Interest Margin
Net interest margin for the first quarter of 2021 was 3.89% (3.75% excluding PPP loans) compared with 4.74% (4.18% excluding PPP loans) for the fourth quarter of 2020 and 4.46% for the same period in 2020. The 85 bp decrease in the net interest margin for the quarter was due to less revenue from SBA PPP loans, lower loan yields and the costs associated with prepaying FHLB advances. The yield on earning assets for the first quarter of 2021 was 4.42% compared with 5.14% in the fourth quarter and 5.35% for the same period in 2020. The yield on loans for the quarter decreased to 5.50% (5.48% excluding PPP loans) compared to 6.15% (5.62% excluding PPP loans) in the fourth quarter and 5.99% in the first quarter of 2020. The cost of total funding sources was 0.57% for the quarter compared with 0.43% in the fourth quarter and 0.95% for the same period in 2020. The increase in funding costs for the quarter was negatively impacted by 20 bps from prepaying fixed rate FHLB advances.
Non-Interest Income
Non-interest income was $1.9 million for the first quarter of 2021, representing a $235 thousand or 14.4% increase compared to the fourth quarter of 2020 and a $725 thousand or 63.3% increase compared to the same period in 2020. The increase in non-interest income for the quarter is primarily due to $306 thousand in additional revenue from SBA loans sales recorded in the first quarter. The increase in non-interest income compared to a year ago is primarily due to $797 thousand in additional gains from the sale of SBA loans partially offset by a $170 thousand decrease in loan referral fees. SBA loan sales for the first quarter were $13.2 million with a 14.1% trade premium compared with $14.1 million with a 12.3% trade premium in the fourth quarter of 2020 and $11.2 million with a 9.8% trade premium in the first quarter of 2020.
Non-Interest Expense
Non-interest expense was $7.8 million for the first quarter of 2021 representing a $647 thousand or 7.7% decrease compared to the fourth quarter of 2020 and a $888 thousand or 10.3% decrease, compared to the same period in 2020. The decrease in expenses for the quarter was primarily due to decreases in salaries and benefits and professional fees partially offset by an increase in occupancy expense. The decrease compared to the first quarter of 2020 was due to decreases in salaries and benefits and professional services partially offset by an increase in data processing expense. The reduction in salaries and benefits, as compared to the first quarter of 2020, is due to an increase in deferred loan origination costs and less vacation expense.
Balance Sheet
At March 31, 2021, the Company reported total assets of $1.4 billion representing an increase of $30 million or 2.3% compared to the fourth quarter of 2020 and an increase of $173.8 million or 14.7% compared to March 31, 2020. The increase in assets for the quarter was due to increases in loans and investment securities offset by a decrease in cash and due from banks. Loans increased $83.1 million or 8.3% in the quarter due to a $71.4 million increase in SBA-PPP loans and a $11.7 million increase in non-SBA PPP loans. Total deposits were $1.2 billion representing an increase of $50.7 million, or 4.6%, compared to the fourth quarter of 2020 and an increase of $201.4 million, or 20.9%, compared to March 31, 2020. Total non-interest-bearing deposits represented 50% of total deposits at March 31, 2021 compared with 48% at December 31, 2020 and 37% at March 31, 2020. Total FHLB advances decreased $25 million as the Company elected to prepay longer-term FHLB advances, at a cost of $619 thousand.
The Company generated $104.0 million of new PPP loans in the quarter. As of March 31, 2021 $33.8 million of round 1 loans remained outstanding with 78% forgiven by the SBA or repaid by the borrower. A total of $1.4 million of fees and interest related to PPP loans were recorded in the quarter.
Asset Quality and Loan Deferrals
The Allowance for Loan Losses increased $299 thousand to $14.6 million in the quarter with a resulting coverage ratio of 1.33% of total loans outstanding, including PPP loans, compared to $14.3 million or 1.41% at the fourth quarter of 2020 and $9.6 million or 1.07% at the first quarter of 2020. The increase in the Allowance for Loan Losses was primarily due to loan growth and qualitative factors related to the general economic outlook in the markets we serve and the potential impact on the loan portfolio resulting from economic uncertainties related to COVID-19. The coverage ratio at March 31, 2021, excluding the impact of PPP loans, increased to 1.52% from 1.51% in the prior quarter.
As of March 31, 2021, there were no doubtful credits or charge offs and no past due loans at the end of the quarter and Classified assets totaled $11.1 million. Classified assets included one loan totaling $1.6 million on non-accrual and the remaining $9.5 million consisted of ten relationships with three borrowers related to the impacts of COVID-19.
At March 31, 2021, five loans totaling $26.2 million are on COVID-19 related deferrals. No new deferrals were granted during the quarter and of the loans on deferral, three loans, or $23.6 million are real estate secured with an average LTV of 50 %. Two loans totaling $2.6 million are unsecured.
“The record last twelve months EPS of $2.41 reflects CalPrivate Bank’s success on PPP loan programs and the Team’s dedication to working with clients on forgiveness of those loans, as well as the continued focus on providing outstanding solutions and service to all our clients. These results were attained during a period of general economic disruption and uncertainty, while continuing to make investments in people and technology”, said Selwyn Isakow Chairman of the Board of the Company and the Bank.
Isakow added, “The dramatic decline in loan payment deferrals and experiencing no delinquent loans, is a tribute to the Bank’s solid credit underwriting and loan portfolio management teams as well as to the relationship managers and our clients. The bank remains well-positioned for future growth within clearly defined risk management parameters.”
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 Contact
Rick Sowers
President and CEO
Private Bancorp of America, Inc.
(424) 303-4894
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) | |||||||||||||||||||||||
| March 31, 2021 | December 31, 2020 | Dollar change | Percentage change | March 31, 2020 | Dollar change | Percentage change | |||||||||||||||||
| Assets | |||||||||||||||||||||||
| Cash and due from banks | $ | 8,922 | $ | 8,040 | $ | 882 | 11.0 | % | $ | 24,966 | $ | (16,044 | ) | -64.3 | % | ||||||||
| Interest-bearing deposits in other financial institutions | 4,187 | 7,309 | (3,122 | ) | -42.7 | % | 3,192 | 995 | 31.2 | % | |||||||||||||
| Interest-bearing deposits at Federal Reserve Bank | 151,641 | 260,876 | (109,235 | ) | -41.9 | % | 192,996 | (41,355 | ) | -21.4 | % | ||||||||||||
| Total cash and due from banks | 164,750 | 276,225 | (111,475 | ) | -40.4 | % | 221,154 | (56,404 | ) | -25.5 | % | ||||||||||||
| Interest-bearing time deposits with other institutions | 5,760 | 5,760 | - | 0.0 | % | 5,756 | 4 | 0.1 | % | ||||||||||||||
| Investment securities available for sale | 81,429 | 26,086 | 55,343 | 212.2 | % | 49,327 | 32,102 | 65.1 | % | ||||||||||||||
| Loan held for sale | 12,430 | 9,687 | 2,743 | 28.3 | % | 7,346 | 5,084 | 69.2 | % | ||||||||||||||
| Loans, net of deferred fees and costs | 1,082,000 | 998,870 | 83,130 | 8.3 | % | 886,730 | 195,270 | 22.0 | % | ||||||||||||||
| Allowance for loan losses | (14,561 | ) | (14,262 | ) | (299 | ) | 2.1 | % | (9,598 | ) | (4,963 | ) | 51.7 | % | |||||||||
| Net loans | 1,067,439 | 984,608 | 82,831 | 8.4 | % | 877,132 | 190,307 | 21.7 | % | ||||||||||||||
| Federal Home Loan Bank stock, at cost | 4,602 | 4,602 | - | 0.0 | % | 4,060 | 542 | 13.3 | % | ||||||||||||||
| Right of use asset | 5,589 | 5,990 | (401 | ) | -6.7 | % | 6,022 | (433 | ) | -7.2 | % | ||||||||||||
| Premises and equipment, net | 2,582 | 2,649 | (67 | ) | -2.5 | % | 3,052 | (470 | ) | -15.4 | % | ||||||||||||
| Other intangible assets | 1,789 | 1,602 | 187 | 11.7 | % | 1,267 | 522 | 41.2 | % | ||||||||||||||
| Deferred tax asset | 5,982 | 5,982 | - | 0.0 | % | 4,141 | 1,841 | 44.5 | % | ||||||||||||||
| Accrued interest receivable | 3,659 | 3,540 | 119 | 3.4 | % | 3,122 | 537 | 17.2 | % | ||||||||||||||
| Other assets | 3,706 | 3,009 | 697 | 23.2 | % | 3,502 | 204 | 5.8 | % | ||||||||||||||
| Total assets | $ | 1,359,717 | $ | 1,329,740 | $ | 29,977 | 2.3 | % | $ | 1,185,881 | $ | 173,836 | 14.7 | % | |||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Noninterest bearing | $ | 579,318 | $ | 531,732 | $ | 47,586 | 8.9 | % | $ | 355,225 | $ | 224,093 | 63.1 | % | |||||||||
| Interest Bearing | 584,341 | 581,216 | 3,125 | 0.5 | % | 607,062 | (22,721 | ) | -3.7 | % | |||||||||||||
| Total deposits | 1,163,659 | 1,112,948 | 50,711 | 4.6 | % | 962,287 | 201,372 | 20.9 | % | ||||||||||||||
| FHLB borrowings | 50,000 | 75,000 | (25,000 | ) | -33.3 | % | 95,000 | (45,000 | ) | -47.4 | % | ||||||||||||
| Other borrowings | 17,941 | 17,939 | 2 | 0.0 | % | 17,934 | 7 | 0.0 | % | ||||||||||||||
| Accrued interest payable and other liabilities | 16,507 | 16,100 | 407 | 2.5 | % | 12,497 | 4,010 | 32.1 | % | ||||||||||||||
| Total liabilities | 1,248,107 | 1,221,987 | 26,120 | 2.1 | % | 1,087,718 | 160,389 | 14.7 | % | ||||||||||||||
| Shareholders' equity | |||||||||||||||||||||||
| Common stock | 70,053 | 69,557 | 496 | 0.7 | % | 69,165 | 888 | 1.3 | % | ||||||||||||||
| Additional paid-in capital | 3,317 | 3,496 | (179 | ) | -5.1 | % | 3,254 | 63 | 1.9 | % | |||||||||||||
| Retained earnings | 38,510 | 33,904 | 4,606 | 13.6 | % | 24,839 | 13,671 | 55.0 | % | ||||||||||||||
| Accumulated other comprehensive (loss) income | (270 | ) | 796 | (1,066 | ) | -133.9 | % | 905 | (1,175 | ) | -129.8 | % | |||||||||||
| Total stockholders' equity | 111,610 | 107,753 | 3,857 | 3.6 | % | 98,163 | 13,447 | 13.7 | % | ||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,359,717 | $ | 1,329,740 | $ | 29,977 | 2.3 | % | $ | 1,185,881 | $ | 173,836 | 14.7 | % | |||||||||
| PRIVATE BANCORP OF AMERICA, INC. | ||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||||
| | ||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||
| March 31, 2021 | December 31, 2020 | Dollar change | Percentage change | March 31, 2020 | Dollar change | Percentage change | ||||||||||||||
| Interest Income | ||||||||||||||||||||
| Loans | $ | 14,159 | $ | 15,540 | $ | (1,381 | ) | -8.9 | % | $ | 13,129 | $ | 1,030 | 7.8 | % | |||||
| Investment securities | 306 | 245 | 61 | 24.9 | % | 401 | (95 | ) | -23.7 | % | ||||||||||
| Deposits in other financial institutions | 58 | 41 | 17 | 41.5 | % | 304 | (246 | ) | -80.9 | % | ||||||||||
| Total interest income | 14,523 | 15,826 | (1,303 | ) | -8.2 | % | 13,834 | 689 | 5.0 | % | ||||||||||
| Interest Expense | ||||||||||||||||||||
| Deposits | 517 | 596 | (79 | ) | -13.3 | % | 1,710 | (1,193 | ) | -69.8 | % | |||||||||
| Borrowings | 1,220 | 613 | 607 | 99.0 | % | 589 | 631 | 107.1 | % | |||||||||||
| Total interest expense | 1,737 | 1,209 | 528 | 43.7 | % | 2,299 | (562 | ) | -24.4 | % | ||||||||||
| Net interest income | 12,786 | 14,617 | (1,831 | ) | -12.5 | % | 11,535 | 1,251 | 10.8 | % | ||||||||||
| Provision for loan losses | 300 | 1,579 | (1,279 | ) | -81.0 | % | 997 | (697 | ) | -69.9 | % | |||||||||
| Net interest income after provision for loan losses | 12,486 | 13,038 | (552 | ) | -4.2 | % | 10,538 | 1,948 | 18.5 | % | ||||||||||
| Noninterest income: | ||||||||||||||||||||
| Service charges on deposit accounts | 224 | 196 | 28 | 14.3 | % | 173 | 51 | 29.5 | % | |||||||||||
| Net gain on sale of loans | 1,476 | 1,170 | 306 | 26.2 | % | 679 | 797 | 117.4 | % | |||||||||||
| Gain on sale of investment securities | - | - | - | NM | - | - | NM | |||||||||||||
| Other noninterest income | 171 | 270 | (99 | ) | -36.7 | % | 294 | (123 | ) | -41.8 | % | |||||||||
| Total noninterest income | 1,871 | 1,636 | 235 | 14.4 | % | 1,146 | 725 | 63.3 | % | |||||||||||
| Noninterest expense: | ||||||||||||||||||||
| Salary and employee benefits | 4,915 | 5,293 | (378 | ) | -7.1 | % | 5,552 | (637 | ) | -11.5 | % | |||||||||
| Occupancy and equipment | 810 | 774 | 36 | 4.7 | % | 884 | (74 | ) | -8.4 | % | ||||||||||
| Data processing | 635 | 624 | 11 | 1.8 | % | 518 | 117 | 22.6 | % | |||||||||||
| Professional services | 650 | 949 | (299 | ) | -31.5 | % | 859 | (209 | ) | -24.3 | % | |||||||||
| Other expenses | 763 | 780 | (17 | ) | -2.2 | % | 848 | (85 | ) | -10.0 | % | |||||||||
| Total noninterest expense | 7,773 | 8,420 | (647 | ) | -7.7 | % | 8,661 | (888 | ) | -10.3 | % | |||||||||
| Income before provision for income taxes | 6,584 | 6,254 | 330 | 5.3 | % | 3,023 | 3,561 | 117.8 | % | |||||||||||
| Provision for income taxes | 1,977 | 1,874 | 103 | 5.5 | % | 1,116 | 861 | 77.2 | % | |||||||||||
| Net income | $ | 4,607 | $ | 4,380 | $ | 227 | 5.2 | % | $ | 1,907 | $ | 2,700 | 141.6 | % | ||||||
| Net income available to common shareholders | $ | 4,529 | $ | 4,307 | $ | 222 | 5.2 | % | $ | 1,874 | $ | 2,655 | 141.7 | % | ||||||
| Earnings per share | ||||||||||||||||||||
| Basic earnings per share | $ | 0.82 | $ | 0.78 | $ | 0.04 | 5.1 | % | $ | 0.34 | $ | 0.48 | 141.2 | % | ||||||
| Diluted earnings per share | $ | 0.81 | $ | 0.78 | $ | 0.03 | 3.8 | % | $ | 0.34 | $ | 0.47 | 138.2 | % | ||||||
| Average shares outstanding | 5,514,887 | 5,501,272 | 13,615 | 0.2 | % | 5,488,197 | 26,690 | 0.5 | % | |||||||||||
| Diluted average shares outstanding | 5,579,477 | 5,540,232 | 39,245 | 0.7 | % | 5,555,376 | 24,101 | 0.4 | % | |||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | ||||||||||||||||||||||||||
| Consolidated average balance sheet, interest, yield and rates | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||||||||
| March 31, 2021 | December 31, 2020 | March 31, 2020 | ||||||||||||||||||||||||
| Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | Average Balance | Interest | Average Yield/Rate | ||||||||||||||||||
| Interest-Earnings Assets: | ||||||||||||||||||||||||||
| Deposits in other financial institutions | $ | 227,393 | $ | 58 | 0.10 | % | $ | 189,856 | $ | 41 | 0.09 | % | $ | 104,156 | $ | 304 | 1.17 | % | ||||||||
| Investment securities | 59,227 | 306 | 2.07 | % | 30,238 | 245 | 3.24 | % | 54,456 | 401 | 2.95 | % | ||||||||||||||
| Loans | 1,044,828 | 14,159 | 5.50 | % | 1,005,712 | 15,540 | 6.15 | % | 881,655 | 13,129 | 5.99 | % | ||||||||||||||
| Total interest-earning assets | 1,331,448 | 14,523 | 4.42 | % | 1,225,806 | 15,826 | 5.14 | % | 1,040,267 | 13,834 | 5.35 | % | ||||||||||||||
| Noninterest-earning assets | 31,439 | 8,805 | 47,975 | |||||||||||||||||||||||
| Total Assets | $ | 1,362,887 | $ | 1,234,611 | $ | 1,088,242 | ||||||||||||||||||||
| Interest-Bearing Liabilities | ||||||||||||||||||||||||||
| Interest-bearing transaction accounts | $ | 58,042 | $ | 12 | 0.08 | % | $ | 56,867 | $ | 17 | 0.12 | % | $ | 83,471 | $ | 165 | 0.80 | % | ||||||||
| Money market | 431,423 | 235 | 0.22 | % | 400,764 | 270 | 0.27 | % | 391,262 | 973 | 1.00 | % | ||||||||||||||
| Savings deposits | 8,766 | 2 | 0.09 | % | 8,617 | 3 | 0.14 | % | 9,212 | 6 | 0.26 | % | ||||||||||||||
| Certificates of deposit | 100,521 | 268 | 1.08 | % | 98,225 | 306 | 1.24 | % | 113,964 | 566 | 2.00 | % | ||||||||||||||
| Total Interest-Bearing Deposits | 598,752 | 517 | 0.35 | % | 564,473 | 596 | 0.42 | % | 597,909 | 1,710 | 1.15 | % | ||||||||||||||
| FHLB advances | 73,056 | 948 | 5.26 | % | 77,348 | 341 | 1.75 | % | 63,394 | 317 | 2.01 | % | ||||||||||||||
| Other borrowings | 17,940 | 272 | 6.06 | % | 17,938 | 272 | 6.07 | % | 17,933 | 272 | 6.07 | % | ||||||||||||||
| Total Interest-Bearing Liabilities | 90,996 | 1,220 | 5.44 | % | 95,286 | 613 | 2.56 | % | 81,327 | 589 | 2.91 | % | ||||||||||||||
| Noninterest-bearing deposits | 547,024 | 452,916 | 298,418 | |||||||||||||||||||||||
| Total Funding Sources | 1,236,772 | 1,737 | 0.57 | % | 1,112,675 | 1,209 | 0.43 | % | 977,654 | 2,299 | 0.95 | % | ||||||||||||||
| Noninterest-bearing liabilities | 15,831 | 15,062 | 13,022 | |||||||||||||||||||||||
| Shareholders' equity | 110,284 | 106,874 | 97,566 | |||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 1,362,887 | $ | 1,234,611 | $ | 1,088,242 | ||||||||||||||||||||
| Net interest spread | 3.85 | % | 4.71 | % | 4.40 | % | ||||||||||||||||||||
| Net interest income | $ | 12,786 | $ | 14,617 | $ | 11,535 | ||||||||||||||||||||
| Net interest margin | 3.89 | % | 4.74 | % | 4.46 | % | ||||||||||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||
| Condensed Balance Sheets | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||||||
| Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||||
| Assets | |||||||||||||||||||
| Cash and due from banks | $ | 164,750 | $ | 276,225 | $ | 155,346 | $ | 199,246 | $ | 221,154 | |||||||||
| Interest-bearing time deposits with other institutions | 5,760 | 5,760 | 5,760 | 5,758 | 5,756 | ||||||||||||||
| Investment securities | 81,429 | 26,086 | 26,525 | 27,664 | 49,327 | ||||||||||||||
| Loans held for sale | 12,430 | 9,687 | 8,402 | 7,409 | 7,346 | ||||||||||||||
| Loans (excluding SBA PPP loans) | 948,260 | 936,532 | 880,174 | 865,603 | 886,730 | ||||||||||||||
| SBA PPP loans | 133,740 | 62,338 | 154,210 | 153,497 | - | ||||||||||||||
| Allowance for loan losses | (14,561 | ) | (14,262 | ) | (12,682 | ) | (11,100 | ) | (9,598 | ) | |||||||||
| Net loans | 1,067,439 | 984,608 | 1,021,702 | 1,008,000 | 877,132 | ||||||||||||||
| Right of use asset | 5,589 | 5,990 | 5,186 | 5,632 | 6,022 | ||||||||||||||
| Premises and equipment, net | 2,582 | 2,649 | 2,859 | 3,055 | 3,052 | ||||||||||||||
| Other assets and interest receivable | 19,738 | 18,735 | 18,414 | 17,248 | 16,092 | ||||||||||||||
| Total assets | $ | 1,359,717 | $ | 1,329,740 | $ | 1,244,194 | $ | 1,274,012 | $ | 1,185,881 | |||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||
| Liabilities | |||||||||||||||||||
| Noninterest Bearing | $ | 579,318 | $ | 531,732 | $ | 471,324 | $ | 452,155 | $ | 355,225 | |||||||||
| Interest Bearing | 584,341 | 581,216 | 557,455 | 584,451 | 607,062 | ||||||||||||||
| Total Deposits | 1,163,659 | 1,112,948 | 1,028,779 | 1,036,606 | 962,287 | ||||||||||||||
| Borrowings | 67,941 | 92,939 | 97,938 | 122,936 | 112,934 | ||||||||||||||
| Accrued interest payable and other liabilities | 16,507 | 16,100 | 14,227 | 14,097 | 12,497 | ||||||||||||||
| Total liabilities | 1,248,107 | 1,221,987 | 1,140,944 | 1,173,639 | 1,087,718 | ||||||||||||||
| Shareholders' equity | |||||||||||||||||||
| Common stock | 70,053 | 69,557 | 69,540 | 69,512 | 69,165 | ||||||||||||||
| Additional paid-in capital | 3,317 | 3,496 | 3,230 | 3,002 | 3,254 | ||||||||||||||
| Retained earnings | 38,510 | 33,904 | 29,521 | 26,984 | 24,839 | ||||||||||||||
| Accumulated other comprehensive (loss) income | (270 | ) | 796 | 959 | 875 | 905 | |||||||||||||
| Total shareholders' equity | 111,610 | 107,753 | 103,250 | 100,373 | 98,163 | ||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,359,717 | $ | 1,329,740 | $ | 1,244,194 | $ | 1,274,012 | $ | 1,185,881 | |||||||||
| Book value per common share | $ | 19.87 | $ | 19.24 | $ | 18.50 | $ | 17.99 | $ | 17.57 | |||||||||
| Tangible book value per common share | $ | 19.55 | $ | 18.95 | $ | 18.26 | $ | 17.76 | $ | 17.35 | |||||||||
| Shares outstanding | 5,618,324 | 5,600,508 | 5,580,456 | 5,578,884 | 5,586,270 | ||||||||||||||
| Regulatory Capital Ratios (PBAM) 1 | |||||||||||||||||||
| Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||||
| Tier 1 leverage ratio | 8.07 | % | 8.52 | % | 7.92 | % | 7.57 | % | 8.79 | % | |||||||||
| Tier 1 risk-based capital ratio | 11.35 | % | 11.20 | % | 11.35 | % | 9.66 | % | 9.20 | % | |||||||||
| Common equity Tier 1 ratio | 11.35 | % | 11.20 | % | 11.35 | % | 9.66 | % | 9.20 | % | |||||||||
| Total risk-based capital ratio | 14.46 | % | 14.36 | % | 14.63 | % | 12.60 | % | 11.91 | % | |||||||||
| Tangible equity / tangible assets | 8.09 | % | 7.99 | % | 8.20 | % | 7.79 | % | 8.18 | % | |||||||||
| 1 Preliminary ratios for March 31, 2021 | |||||||||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||
| Condensed Statements of Income | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||||||
| Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||||
| Interest income | $ | 14,523 | $ | 15,826 | $ | 13,860 | $ | 13,635 | $ | 13,834 | |||||||||
| Interest expense | 1,737 | 1,209 | 1,363 | 2,015 | 2,299 | ||||||||||||||
| Net interest income | 12,786 | 14,617 | 12,497 | 11,620 | 11,535 | ||||||||||||||
| Provision for loan losses | 300 | 1,579 | 1,582 | 1,511 | 997 | ||||||||||||||
| Net interest income after provision for loan losses | 12,486 | 13,038 | 10,915 | 10,109 | 10,538 | ||||||||||||||
| Noninterest income | 1,871 | 1,636 | 936 | 1,378 | 1,146 | ||||||||||||||
| Salary and employee benefits | 4,915 | 5,293 | 5,365 | 5,790 | 5,552 | ||||||||||||||
| Occupancy and equipment | 810 | 774 | 864 | 900 | 884 | ||||||||||||||
| Data processing | 635 | 624 | 643 | 561 | 518 | ||||||||||||||
| Professional services | 650 | 949 | 514 | 628 | 859 | ||||||||||||||
| Other expenses | 763 | 780 | 846 | 827 | 848 | ||||||||||||||
| Total noninterest expense | 7,773 | 8,420 | 8,232 | 8,706 | 8,661 | ||||||||||||||
| Income before provision for income taxes | 6,584 | 6,254 | 3,619 | 2,781 | 3,023 | ||||||||||||||
| Income taxes | 1,977 | 1,874 | 1,084 | 711 | 1,116 | ||||||||||||||
| Net income | $ | 4,607 | $ | 4,380 | $ | 2,535 | $ | 2,070 | $ | 1,907 | |||||||||
| Net income available to common shareholders | $ | 4,529 | $ | 4,307 | $ | 2,499 | $ | 2,038 | $ | 1,874 | |||||||||
| Earnings per share | |||||||||||||||||||
| Basic earnings per share | $ | 0.82 | $ | 0.78 | $ | 0.45 | $ | 0.37 | $ | 0.34 | |||||||||
| Diluted earnings per share | $ | 0.81 | $ | 0.78 | $ | 0.45 | $ | 0.37 | $ | 0.34 | |||||||||
| Average shares outstanding | 5,514,887 | 5,501,272 | 5,499,970 | 5,435,155 | 5,488,197 | ||||||||||||||
| Diluted average shares outstanding | 5,579,477 | 5,540,232 | 5,516,013 | 5,453,597 | 5,555,376 | ||||||||||||||
| Performance Ratios | |||||||||||||||||||
| Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||||
| ROAA | 1.37 | % | 1.41 | % | 0.79 | % | 0.64 | % | 0.70 | % | |||||||||
| ROAE | 16.94 | % | 16.30 | % | 9.84 | % | 8.31 | % | 7.86 | % | |||||||||
| ROATE | 17.19 | % | 16.54 | % | 9.96 | % | 8.42 | % | 7.96 | % | |||||||||
| Net interest margin | 3.89 | % | 4.74 | % | 3.94 | % | 3.66 | % | 4.46 | % | |||||||||
| Net interest spread | 3.85 | % | 4.71 | % | 3.90 | % | 3.60 | % | 4.40 | % | |||||||||
| Efficiency ratio | 53.03 | % | 51.81 | % | 61.28 | % | 66.98 | % | 68.30 | % | |||||||||
| Noninterest expense / average assets | 2.31 | % | 2.71 | % | 2.58 | % | 2.71 | % | 3.20 | % | |||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||
| Average Balances | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||||
| Total assets | $ | 1,362,887 | $ | 1,234,611 | $ | 1,271,363 | $ | 1,293,484 | $ | 1,088,242 | |||||||||
| Earning assets | $ | 1,331,448 | $ | 1,225,806 | $ | 1,260,834 | $ | 1,278,380 | $ | 1,040,267 | |||||||||
| Total loans | $ | 1,044,828 | $ | 1,005,712 | $ | 1,037,195 | $ | 1,008,220 | $ | 881,655 | |||||||||
| Total deposits | $ | 1,145,776 | $ | 1,017,389 | $ | 1,036,223 | $ | 1,062,071 | $ | 896,327 | |||||||||
| Total equity | $ | 110,284 | $ | 106,874 | $ | 102,539 | $ | 100,130 | $ | 97,566 | |||||||||
| Loan Balances by Type | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||||
| Real estate - investor owned | $ | 247,928 | $ | 243,745 | $ | 231,787 | $ | 234,806 | $ | 246,026 | |||||||||
| Real estate - owner occupied | 284,494 | 268,193 | 259,375 | 240,587 | 234,771 | ||||||||||||||
| Real estate - multifamily | 75,361 | 69,187 | 64,268 | 66,431 | 67,550 | ||||||||||||||
| Real estate - single family | 75,353 | 67,522 | 59,994 | 57,521 | 58,429 | ||||||||||||||
| Commercial business | 227,635 | 251,711 | 228,914 | 231,885 | 245,610 | ||||||||||||||
| SBA PPP loans | 133,740 | 62,338 | 154,210 | 153,497 | - | ||||||||||||||
| Land and construction | 30,103 | 29,377 | 28,277 | 26,327 | 27,044 | ||||||||||||||
| Consumer | 7,386 | 6,797 | 7,559 | 8,046 | 7,300 | ||||||||||||||
| Total loans held for investment | 1,082,000 | 998,870 | 1,034,384 | 1,019,100 | 886,730 | ||||||||||||||
| Loans held for sale | 12,430 | 9,687 | 8,402 | 7,409 | 7,346 | ||||||||||||||
| Total loans, including loans held for sale | 1,094,430 | 1,008,557 | 1,042,786 | 1,026,509 | 894,076 | ||||||||||||||
| Allowance for loan losses | (14,561 | ) | (14,262 | ) | (12,682 | ) | (11,100 | ) | (9,598 | ) | |||||||||
| Net loans | $ | 1,079,869 | $ | 994,295 | $ | 1,030,104 | $ | 1,015,409 | $ | 884,478 | |||||||||
| Deposits by Type | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||||
| Non interest bearing DDA | $ | 579,318 | $ | 531,732 | $ | 471,324 | $ | 452,155 | $ | 355,225 | |||||||||
| Interest bearing DDA | 59,399 | 60,606 | 56,837 | 63,805 | 108,368 | ||||||||||||||
| Savings & MMA | 423,957 | 424,540 | 396,233 | 427,685 | 366,109 | ||||||||||||||
| Retail CD | 5,855 | 7,770 | 8,401 | 8,493 | 8,484 | ||||||||||||||
| Jumbo CD | 95,130 | 88,300 | 95,984 | 84,468 | 124,101 | ||||||||||||||
| Total deposits | $ | 1,163,659 | $ | 1,112,948 | $ | 1,028,779 | $ | 1,036,606 | $ | 962,287 | |||||||||
| Asset Quality | |||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||||||||||
| Total loans, including loans held for sale | $ | 1,094,430 | $ | 1,008,557 | $ | 1,042,786 | $ | 1,026,509 | $ | 894,076 | |||||||||
| 30-89 day past due loans | $ | - | $ | - | $ | - | $ | - | $ | 297 | |||||||||
| 90+ day past due loans | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
| Nonaccrual loans | $ | 1,609 | $ | 1,609 | $ | 1,743 | $ | - | $ | 663 | |||||||||
| NPAs / Assets | 0.12 | % | 0.12 | % | 0.14 | % | 0.00 | % | 0.06 | % | |||||||||
| NPLs / loans & OREO | 0.15 | % | 0.16 | % | 0.17 | % | 0.00 | % | 0.07 | % | |||||||||
| 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 | 1.33 | % | 1.41 | % | 1.22 | % | 1.08 | % | 1.07 | % | |||||||||
| Allowance for loan losses to nonaccrual loans | 904.97 | % | 886.39 | % | 727.60 | % | NM | 1447.66 | % | ||||||||||