2020 Highlights

• Record net income of $10.9 million, or $1.94 per diluted share
• Net interest margin for the year was 4.15% compared with 4.51% in the prior year
• Total loans were $1.0 billion, up 13.9% for the year-over-year
• Allowance for Loan Losses to total loans increased to 1.41% and 1.51% excluding PPP loans
• No doubtful credits and no delinquent loans at end of year
• Non-performing assets represent 0.12% of total assets
• COVID-19 loan deferrals are $34.0 million, or 3.4% of total loans
• Total deposits were $1.1 billion, up 30.9% year-over-year
• Non-interest-bearing deposits increased 98% and represent 48% of total deposits
• Return on Average Assets of 0.89% and Return on Average Equity of 10.70%

Fourth Quarter 2020 Highlights

• Net income of $4.4 million, or $0.78 per diluted share
• Net interest margin was 4.74% in the fourth quarter compared with 3.94% in the prior quarter
• Net interest income increased $2.1 million or 17% to $14.6 million in the fourth quarter
• Cost of deposits was 0.23% in the fourth quarter, compared with 0.27% in the prior quarter
• Return on Average Assets of 1.41% and Return on Average Equity of 16.30%
  

LA JOLLA, Calif., Jan. 28, 2021 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM), (“Company”) and CalPrivate Bank (“Bank”) announced unaudited financial results for the fourth quarter and year ending December 31, 2020. The Company reported net income of $4.4 million, or $0.78 per diluted share, for the fourth quarter of 2020 compared to $2.5 million, or $0.45 per diluted share for the third quarter of 2020. Net income for the year 2020 was $10.9 million, or $1.94 per diluted share, compared with a net loss of $428 thousand, or $0.08 per diluted share in 2019.

Rick Sowers, President and CEO of the Company and the Bank stated, “Over the last year our Team has shown incredible dedication to our Bank, our clients and our communities. They performed exceptionally well in a difficult environment and delivered record earnings for shareholders in 2020. Our Relationship-focused business model continues to create long term value. We spent 2020 expanding our Team and our capabilities for our clients and this resulted in substantial loan and deposit growth.”

Sowers continued, “The year provided the Bank with an opportunity to support our Team, clients, and communities in response to unprecedented challenges from COVID-19. The Bank provided 615 PPP loans for a total of $159.0 million and through the end of the year worked with our clients to submit 548 loans totaling $144.8 million to the SBA for forgiveness. In the fourth quarter, the Bank received $2.1 million in fees from the SBA for loans submitted and granted forgiveness.   We are participating in the second round of PPP beginning in January 2021 to continue to support our clients and communities.”

Loan Deferrals and Asset Quality

As of December 31, 2020, there were no doubtful credits or charge offs and no past due loans at the end of the quarter and Classified assets totaled $8.5 million. Classified assets included one loan totaling $1.6 million on non-accrual and $6.9 million consisted of seven relationships with four related to the impacts of COVID-19. Classified assets increased $800 thousand to $8.5 million at quarter end, of which the largest loan was a well secured $3.5 million credit.

Additionally, as of December 31, 2020, seven loans totaling $34.0 million are on COVID-19 related deferrals. During the quarter, two new deferrals totaling $9.1 million were granted and there are five loans totaling $24.9 million on their second deferral. Of the loans on deferral, four loans, or $28.3 million are real estate secured with an average LTV of 50.1% and three loans totaling $5.7 million are unsecured.

The Allowance for Loan Losses increased $1.6 million to $14.3 million in the quarter with a resulting coverage ratio of 1.41% of total loans outstanding, including PPP loans, compared to $12.7 million or 1.22% at the third quarter of 2020 and $8.6 million or 0.97% at the fourth quarter of 2019. The increase in the Allowance for Loan Losses was primarily due to 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 December 31, 2020, excluding the impact of PPP loans, increased to 1.51% from 1.43% in the prior quarter.

Net Interest Income

Net interest income for the fourth quarter totaled $14.6 million representing an increase of $2.1 million, or 17% compared to the third quarter and a $3.5 million or 32% increase for the same period in 2019. The increase in net interest income for the quarter is due to a $2.0 million increase in loan income largely due to a $1.8 million increase in SBA PPP loan income resulting from loan forgiveness/payoff and $111 thousand in lower deposit costs resulting from continued repricing of the deposit portfolio. The increase compared to the same period in 2019 is due to increased average loan balances and lower funding costs partially offset by a decrease in income from securities.

Net interest income for the year totaled $50.3 million representing an increase of $8.5 million or 20% compared to the same period in 2019. The increase in income is due to increased average loan balances, SBA PPP loan income and lower deposit costs partially offset by less income from securities due to lower average securities balances in 2020.

Net Interest Margin

Net interest margin for the fourth quarter of 2020 was 4.74% compared with 3.94% for the third quarter of 2020 and 4.47% for the same period in 2019. The 80 bp increase in the net interest margin for the quarter was positively impacted by the SBA PPP payoffs that contributed 68 bps to the margin and the 4 bp impact from lower deposit costs as a result of proactive repositioning and repricing of the deposit portfolio. The yield on earning assets for the fourth quarter of 2020 was 5.14% compared with 4.37% in the third quarter and 5.44% for the same period in 2019. The yield on loans for the quarter increased to 6.15% compared to 5.21% in the third quarter of this year and 5.98% in the fourth quarter of 2019. The cost of total funding sources was 0.43% for the quarter compared with 0.47% in the third quarter and 1.04% for the same period in 2019.

The net interest margin for the year was 4.15% compared with 4.51% for the same period in 2019. The decrease in the net interest margin is due to lower yields in the loan portfolio and federal funds partially offset by lower deposit and borrowing costs. Total loan yields in 2020 decreased 41 bps to 5.65% compared with 6.06% for the same period in 2019. The total funding costs improved 39 bps to 0.62% compared with 1.01% for the same period in 2019. The reduced funding costs were the result of repaying higher priced callable wholesale funding and repricing the deposit portfolio.

Non-Interest Income

Non-interest income was $1.6 million for the fourth quarter of 2020, representing a $700 thousand or 74.8% increase compared to the third quarter of 2020 and a $615 thousand or 60.2% increase compared to the same period in 2019. The increase in non-interest income for the quarter is due to $616 thousand in additional revenue from SBA loans sales recorded in the fourth quarter. The increase in non-interest income compared to a year ago is primarily due to $738 thousand in additional gains from the sale of SBA loans partially offset by $190 thousand in securities gains recorded in the fourth quarter of 2019. SBA loan sales for the fourth quarter were $14.1 million with a 12.3% trade premium compared with $6.2 million with a 13.8% trade premium in the third quarter of 2020 and $8.0 million with a 9.8% trade premium in the fourth quarter of 2019.

Non-interest income for the year was $5.1 million compared with $2.8 million for the same period in 2019. The increase in non-interest income was largely due to increased revenue from the sale of SBA loans, gain on sale of investment securities and increased other non-interest income.

Non-Interest Expense

Non-interest expense was $8.4 million for the fourth quarter of 2020 representing a $188 thousand increase, or 2.3%, compared to the third quarter of 2020 and a $142 thousand decrease, or 1.7% decrease, compared to the same period in 2019. The increase in fourth quarter expenses was primarily due to an increase in professional fees partially offset by decreases in salaries and benefits and occupancy expense. The decrease compared to the fourth quarter of 2019 was due to decreases in salaries and benefits and other expenses partially offset by an increase in professional services.

Non-interest expense for the year was $34 million compared with $33.3 million in 2019. The $688 thousand increase was primarily due to increases in professional fees and occupancy partially offset by a decrease in salaries and benefits. The increase in professional fees was due to increases in legal and audit fees.

Balance Sheet

At December 31, 2020, the Company reported total assets of $1.3 billion representing an increase of $85.5 million or 7% compared to the third quarter of 2020 and an increase of $263.8 million or 24.7% compared to December 31, 2019. The increase in assets for the quarter was largely due to an increase in cash and due from banks resulting from an increase in customer deposits at the end of the year partially offset by a $34.2 million, or 3.3%, decrease in total loans from SBA PPP loan payoffs. Total non-SBA PPP loans for the quarter increased $57.6 million driven by growth in the Commercial Real Estate and Commercial loan portfolios. Total non-SBA PPP loans for the year increased $60.7 million driven by growth in the Commercial Real Estate and Commercial loan portfolios. Total deposits were $1.1 billion representing an increase of $84.2 million, or 8.2%, compared to the third quarter of 2020 and an increase of $262.7 million, or 31%, compared to December 31, 2019. Total non-interest-bearing deposits represented 48% of total deposits at December 31, 2020 compared with 32% at December 31, 2019.  

“The CalPrivate Bank Team performed exceptionally during a year of disruption, uncertainty, work-from-home and a declining interest rate environment. Maintaining superior client relationship service levels, record earnings, amazing growth in deposits and superior loan and non-interest income growth, with reduced operating expense levels, is truly remarkable and a tribute to management leadership,” said Selwyn Isakow Chairman of the Board of the Company and the Bank.

Isakow added, “During the year the Bank added significant talent in the technology, business development, human resources and many other areas, so as to be well-positioned for future expansion. The Bank also made great strides in our Diversity, Inclusion and Equity efforts, including the appointment of Larraine Segil, SiSi Pouraghabagher and Leda Csanka to the Board of Directors. The Board wishes to thank our clients, our team, our leadership and all our other stakeholders for their trust and individual roles in making 2020 so successful.”

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)
	December 31, 2020				September 30, 2020				Dollar change			Percentage change			December 31, 2019				Dollar change			Percentage change
Assets
Cash and due from banks	$	10,644			$	10,985			$	(341	)	-3.1	%		$	31,051			$	(20,407	)	-65.7	%
Interest-bearing deposits in other financial institutions		1,715				930				785		84.4	%			1,243				472		38.0	%
Interest-bearing deposits at Federal Reserve Bank		263,866				143,431				120,435		84.0	%			73,318				190,548		259.9	%
Total cash and due from banks		276,225				155,346				120,879		77.8	%			105,612				170,613		161.5	%
Interest-bearing time deposits with other institutions		5,760				5,760				-		0.0	%			5,756				4		0.1	%
Investment securities available for sale		26,086				26,525				(439	)	-1.7	%			51,179				(25,093	)	-49.0	%
Loans		1,008,557				1,042,786				(34,229	)	-3.3	%			885,556				123,001		13.9	%
Allowance for loan losses		(14,262	)			(12,682	)			(1,580	)	12.5	%			(8,601	)			(5,661	)	65.8	%
Net loans		994,295				1,030,104				(35,809	)	-3.5	%			876,955				117,340		13.4	%
Federal Home Loan Bank stock, at cost		4,602				4,602				-		0.0	%			4,060				542		13.3	%
Right of use asset		5,990				5,186				804		15.5	%			6,452				(462	)	-7.2	%
Premises and equipment, net		2,649				2,859				(210	)	-7.3	%			3,165				(516	)	-16.3	%
Other intangible assets		1,602				1,364				238		17.4	%			1,080				522		48.3	%
Deferred tax asset		4,141				4,141				-		0.0	%			4,141				-		0.0	%
Accrued interest receivable		3,540				3,883				(343	)	-8.8	%			2,703				837		31.0	%
Other assets		4,850				4,424				426		9.6	%			4,884				(34	)	-0.7	%
Total assets	$	1,329,740			$	1,244,194			$	85,546		6.9	%		$	1,065,987			$	263,753		24.7	%
Liabilities and Shareholders' Equity
Liabilities
Noninterest bearing	$	531,732			$	471,324			$	60,408		12.8	%		$	268,116			$	263,616		98.3	%
Interest Bearing		581,216				557,455				23,761		4.3	%			582,139				(923	)	-0.2	%
Total deposits		1,112,948				1,028,779				84,169		8.2	%			850,255				262,693		30.9	%
FHLB borrowings		75,000				80,000				(5,000	)	-6.3	%			90,000				(15,000	)	-16.7	%
Other borrowings		17,939				17,938				1		0.0	%			17,932				7		0.0	%
Accrued interest payable and other liabilities		16,100				14,227				1,873		13.2	%			12,120				3,980		32.8	%
Total liabilities		1,221,987				1,140,944				81,043		7.1	%			970,307				251,680		25.9	%
Shareholders' equity
Common stock		69,557				69,540				17		0.0	%			69,159				398		0.6	%
Additional paid-in capital		3,496				3,230				266		8.2	%			3,048				448		14.7	%
Retained earnings		33,904				29,521				4,383		14.8	%			22,905				10,999		48.0	%
Accumulated other comprehensive income		796				959				(163	)	-17.0	%			568				228		40.1	%
Total stockholders' equity		107,753				103,250				4,503		4.4	%			95,680				12,073		12.6	%
Total liabilities and stockholders' equity	$	1,329,740			$	1,244,194			$	85,546		6.9	%		$	1,065,987			$	263,753		24.7	%

PRIVATE BANCORP OF AMERICA, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share amounts)
		For the three months ended
		December 31, 2020			September 30, 2020			Dollar change			Percentage change			December 31, 2019			Dollar change			Percentage change
Interest Income
Loans		$	15,540		$	13,578		$	1,962		14.4	%		$	12,733		$	2,807		22.0	%
Investment securities			245			231			14		6.1	%			485			(240	)	-49.5	%
Deposits in other financial institutions			41			51			(10	)	-19.6	%			254			(213	)	-83.9	%
Total interest income			15,826			13,860			1,966		14.2	%			13,472			2,354		17.5	%
Interest Expense
Deposits			596			707			(111	)	-15.7	%			1,825			(1,229	)	-67.3	%
Borrowings			613			656			(43	)	-6.6	%			575			38		6.6	%
Total interest expense			1,209			1,363			(154	)	-11.3	%			2,400			(1,191	)	-49.6	%
Net interest income			14,617			12,497			2,120		17.0	%			11,072			3,545		32.0	%
Provision for loan losses			1,579			1,582			(3	)	-0.2	%			708			871		123.0	%
Net interest income after provision for loan losses			13,038			10,915			2,123		19.5	%			10,364			2,674		25.8	%
Noninterest income:
Service charges on deposit accounts			196			141			55		39.0	%			138			58		42.0	%
Net gain on sale of loans			1,170			554			616		111.2	%			432			738		170.8	%
Gain on sale of investment securities			-			-			-		NM				190			(190	)	-100.0	%
Other noninterest income			270			241			29		12.0	%			261			9		3.4	%
Total noninterest income			1,636			936			700		74.8	%			1,021			615		60.2	%
Noninterest expense:
Salary and employee benefits			5,293			5,365			(72	)	-1.3	%			5,427			(134	)	-2.5	%
Occupancy and equipment			774			864			(90	)	-10.4	%			832			(58	)	-7.0	%
Data processing			624			643			(19	)	-3.0	%			631			(7	)	-1.1	%
Professional services			949			514			435		84.6	%			726			223		30.7	%
Other expenses			780			846			(66	)	-7.8	%			946			(166	)	-17.5	%
Total noninterest expense			8,420			8,232			188		2.3	%			8,562			(142	)	-1.7	%
Income before provision for income taxes			6,254			3,619			2,635		72.8	%			2,823			3,431		121.5	%
Provision for income taxes			1,874			1,084			790		72.9	%			857			1,017		118.7	%
Net income		$	4,380		$	2,535		$	1,845		72.8	%		$	1,966		$	2,414		122.8	%
Net income available to common shareholders		$	4,307		$	2,499		$	1,808		72.3	%		$	1,931		$	2,376		123.0	%
Earnings per share
Basic earnings per share		$	0.78		$	0.45		$	0.33		73.3	%		$	0.36		$	0.42		116.7	%
Diluted earnings per share		$	0.78		$	0.45		$	0.33		73.3	%		$	0.35		$	0.43		122.9	%
Average shares outstanding			5,501,272			5,499,970			1,302		0.0	%			5,414,056			87,216		1.6	%
Diluted average shares outstanding			5,540,232			5,516,013			24,219		0.4	%			5,492,930			47,302		0.9	%

PRIVATE BANCORP OF AMERICA, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share amounts)
		For the twelve months ended
		December 31, 2020			December 31, 2019				Dollar change			Percentage change
Interest Income
Loans		$	55,539		$	47,182			$	8,357		17.7	%
Investment securities			1,128			2,303				(1,175	)	-51.0	%
Deposits in other financial institutions			487			695				(208	)	-29.9	%
Total interest income			57,154			50,180				6,974		13.9	%
Interest Expense
Deposits			4,369			5,977				(1,608	)	-26.9	%
Borrowings			2,517			2,438				79		3.2	%
Total interest expense			6,886			8,415				(1,529	)	-18.2	%
Net interest income			50,268			41,765				8,503		20.4	%
Provision for loan losses			5,670			11,830				(6,160	)	-52.1	%
Net interest income after provision for loan losses			44,598			29,935				14,663		49.0	%
Noninterest income:
Service charges on deposit accounts			654			485				169		34.8	%
Net gain on sale of loans			2,614			1,249				1,365		109.3	%
Gain on sale of investment securities			751			341				410		120.2	%
Other noninterest income			1,078			737				341		46.3	%
Total noninterest income			5,097			2,812				2,285		81.3	%
Noninterest expense:
Salary and employee benefits			22,000			22,889				(889	)	-3.9	%
Occupancy and equipment			3,422			2,941				481		16.4	%
Data processing			2,345			2,233				112		5.0	%
Professional services			2,951			2,121				830		39.1	%
Other expenses			3,302			3,148				154		4.9	%
Total noninterest expense			34,020			33,332				688		2.1	%
Income (loss) before provision for income taxes			15,675			(585	)			16,260		-2779.5	%
Provision for income taxes			4,784			(157	)			4,941		-3147.1	%
Net income (loss)		$	10,891		$	(428	)		$	11,319		-2644.6	%
Net income (loss) available to common shareholders		$	10,710		$	(420	)		$	11,130		-2650.0	%
Earnings (loss) per share
Basic earnings (loss) per share		$	1.95		$	(0.08	)		$	2.03		-2537.5	%
Diluted earnings (loss) per share		$	1.94		$	(0.08	)		$	2.02		-2525.0	%
Average shares outstanding			5,494,423			5,248,267				246,156		4.7	%
Diluted average shares outstanding			5,527,284			5,248,267				279,017		5.3	%

		PRIVATE BANCORP OF AMERICA, INC.
		Consolidated average balance sheet, interest, yield and rates
		(Unaudited)
		(Dollars in thousands)
		For the three months ended
		December 31, 2020									September 30, 2020									December 31, 2019
		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		$	189,856		$	41		0.09	%		$	191,912		$	51		0.11	%		$	66,186		$	254		1.52	%
Investment securities			30,238			245		3.24	%			31,727			231		2.91	%			70,647			485		2.75	%
Loans			1,005,712			15,540		6.15	%			1,037,195			13,578		5.21	%			845,199			12,733		5.98	%
Total interest-earning assets			1,225,806			15,826		5.14	%			1,260,834			13,860		4.37	%			982,032			13,472		5.44	%
Noninterest-earning assets			8,805									10,529									36,912
Total Assets		$	1,234,611								$	1,271,363								$	1,018,944
Interest-Bearing Liabilities
Interest-bearing transaction accounts		$	56,867		$	17		0.12	%		$	59,624		$	19		0.13	%		$	56,061		$	130		0.92	%
Money market			400,764			270		0.27	%			402,286			349		0.35	%			389,499			1,009		1.03	%
Savings deposits			8,617			3		0.14	%			9,024			2		0.09	%			10,078			6		0.24	%
Certificates of deposit			98,225			306		1.24	%			97,444			337		1.38	%			114,699			680		2.35	%
Total Interest-Bearing Deposits			564,473			596		0.42	%			568,378			707		0.49	%			570,337			1,825		1.27	%
FHLB advances			77,348			341		1.75	%			100,924			384		1.51	%			56,814			306		2.14	%
Other borrowings			17,938			272		6.07	%			17,937			272		6.07	%			17,931			269		6.00	%
Total Interest-Bearing Liabilities			95,286			613		2.56	%			118,861			656		2.20	%			74,745			575		3.05	%
Noninterest-bearing deposits			452,916									467,845									271,892
Total Funding Sources			1,112,675			1,209		0.43	%			1,155,084			1,363		0.47	%			916,974			2,400		1.04	%
Noninterest-bearing liabilities			15,062									13,740									10,506
Shareholders' equity			106,874									102,539									91,464
Total Liabilities and Shareholders' Equity		$	1,234,611								$	1,271,363								$	1,018,944
Net interest spread								4.71	%								3.90	%								4.40	%
Net interest income					$	14,617								$	12,497								$	11,072
Net interest margin								4.74	%								3.94	%								4.47	%

		PRIVATE BANCORP OF AMERICA, INC.
		Consolidated average balance sheet, interest, yield and rates
		(Unaudited)
		(Dollars in thousands)
		For the twelve months ended
		December 31, 2020									December 31, 2019
		Average Balance			Interest			Average Yield/Rate			Average Balance			Interest			Average Yield/Rate
Interest-Earnings Assets:
Deposits in other financial institutions		$	188,109		$	487		0.26	%		$	62,784		$	695		1.11	%
Investment securities			38,978			1,128		2.89	%			83,810			2,303		2.75	%
Loans			983,405			55,539		5.65	%			778,474			47,182		6.06	%
Total interest-earning assets			1,210,492			57,154		4.72	%			925,068			50,180		5.42	%
Noninterest-earning assets			11,602									9,972
Total Assets		$	1,222,094								$	935,040
Interest-Bearing Liabilities
Interest-bearing transaction accounts		$	68,313		$	227		0.33	%		$	36,950		$	280		0.76	%
Money market			397,050			2,068		0.52	%			349,628			3,333		0.95	%
Savings deposits			8,928			13		0.15	%			7,672			20		0.26	%
Certificates of deposit			109,165			2,061		1.89	%			104,674			2,344		2.24	%
Total Interest-Bearing Deposits			583,456			4,369		0.75	%			498,924			5,977		1.20	%
FHLB advances			85,532			1,430		1.67	%			61,528			1,482		2.41	%
Other borrowings			17,936			1,087		6.06	%			14,656			956		6.52	%
Total Interest-Bearing Liabilities			103,468			2,517		2.43	%			76,184			2,438		3.20	%
Noninterest-bearing deposits			419,676									258,871
Total Funding Sources			1,106,600			6,886		0.62	%			833,979			8,415		1.01	%
Noninterest-bearing liabilities			13,701									9,493
Shareholders' equity			101,793									91,568
Total Liabilities and Shareholders' Equity		$	1,222,094								$	935,040
Net interest spread								4.10	%								4.42	%
Net interest income					$	50,268								$	41,765
Net interest margin								4.15	%								4.51	%

	PRIVATE BANCORP OF AMERICA, INC.
	Condensed Balance Sheets
	(Unaudited)
	(Dollars in thousands, except per share amounts)
	Dec 31, 2020				Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019
Assets
Cash and due from banks	$	276,225			$	155,346			$	199,246			$	221,154			$	105,612
Interest-bearing time deposits with other institutions		5,760				5,760				5,758				5,756				5,756
Investment securities		26,086				26,525				27,664				49,327				51,179
Loans (excluding SBA PPP loans)		946,219				888,576				873,012				894,076				885,556
SBA PPP loans		62,338				154,210				153,497				-				-
Allowance for loan losses		(14,262	)			(12,682	)			(11,100	)			(9,598	)			(8,601	)
Net loans		994,295				1,030,104				1,015,409				884,478				876,955
Right of use asset		5,990				5,186				5,632				6,022				6,452
Premises and equipment, net		2,649				2,859				3,055				3,052				3,165
Other assets and interest receivable		18,735				18,414				17,248				16,092				16,868
Total assets	$	1,329,740			$	1,244,194			$	1,274,012			$	1,185,881			$	1,065,987
Liabilities and Shareholders' Equity
Liabilities
Noninterest Bearing	$	531,732			$	471,324			$	452,155			$	355,225			$	268,116
Interest Bearing		581,216				557,455				584,451				607,062				582,139
Total Deposits		1,112,948				1,028,779				1,036,606				962,287				850,255
Borrowings		92,939				97,938				122,936				112,934				107,932
Accrued interest payable and other liabilities		16,100				14,227				14,097				12,497				12,120
Total liabilities		1,221,987				1,140,944				1,173,639				1,087,718				970,307
Shareholders' equity
Common stock		69,557				69,540				69,512				69,165				69,159
Additional paid-in capital		3,496				3,230				3,002				3,254				3,048
Retained earnings		33,904				29,521				26,984				24,839				22,905
Accumulated other comprehensive income		796				959				875				905				568
Total shareholders' equity		107,753				103,250				100,373				98,163				95,680
Total liabilities and shareholders' equity	$	1,329,740			$	1,244,194			$	1,274,012			$	1,185,881			$	1,065,987
Book value per common share	$	19.24			$	18.50			$	17.99			$	17.57			$	17.15
Tangible book value per common share	$	18.95			$	18.26			$	17.76			$	17.35			$	16.96
Shares outstanding		5,600,508				5,580,456				5,578,884				5,586,270				5,577,968
	Regulatory Capital Ratios (PBAM) 1
	Dec 31, 2020				Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019
Tier 1 leverage ratio		8.53	%			7.92	%			7.57	%			8.79	%			9.17	%
Tier 1 risk-based capital ratio		11.53	%			11.35	%			9.66	%			9.20	%			9.86	%
Common equity Tier 1 ratio		11.53	%			11.35	%			9.66	%			9.20	%			9.86	%
Total risk-based capital ratio		14.75	%			14.63	%			12.60	%			11.91	%			12.71	%
Tangible equity / tangible assets		8.00	%			8.20	%			7.79	%			8.18	%			8.88	%
1 Preliminary ratios for December 31, 2020

	PRIVATE BANCORP OF AMERICA, INC.
	Condensed Statements of Income
	(Unaudited)
	(Dollars in thousands, except per share amounts)
	Dec 31, 2020				Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019
Interest income	$	15,826			$	13,860			$	13,635			$	13,834			$	13,472
Interest expense		1,209				1,363				2,015				2,299				2,400
Net interest income		14,617				12,497				11,620				11,535				11,072
Provision for loan losses		1,579				1,582				1,511				997				708
Net interest income after provision for loan losses		13,038				10,915				10,109				10,538				10,364
Noninterest income		1,636				936				1,378				1,146				1,021
Salary and employee benefits		5,293				5,365				5,790				5,552				5,427
Occupancy and equipment		774				864				900				884				832
Data processing		624				643				561				518				631
Professional services		949				514				628				859				726
Other expenses		780				846				827				848				946
Total noninterest expense		8,420				8,232				8,706				8,661				8,562
Income before provision for income taxes		6,254				3,619				2,781				3,023				2,823
Income taxes		1,874				1,084				711				1,116				857
Net income	$	4,380			$	2,535			$	2,070			$	1,907			$	1,966
Net income available to common shareholders	$	4,307			$	2,499			$	2,038			$	1,874			$	1,931
Earnings per share
Basic earnings per share	$	0.78			$	0.45			$	0.37			$	0.34			$	0.36
Diluted earnings per share	$	0.78			$	0.45			$	0.37			$	0.34			$	0.35
Average shares outstanding		5,501,272				5,499,970				5,435,155				5,488,197				5,414,056
Diluted average shares outstanding		5,540,232				5,516,013				5,453,597				5,555,376				5,492,930
	Performance Ratios
	Dec 31, 2020				Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019
ROAA		1.41	%			0.79	%			0.64	%			0.70	%			0.77	%
ROAE		16.30	%			9.84	%			8.31	%			7.86	%			8.53	%
ROTE		16.54	%			9.96	%			8.42	%			7.96	%			8.01	%
Net interest margin		4.74	%			3.94	%			3.66	%			4.46	%			4.47	%
Net interest spread		4.71	%			3.90	%			3.60	%			4.40	%			4.40	%
Efficiency ratio		51.81	%			61.28	%			66.98	%			68.30	%			70.80	%
Noninterest expense / average assets		2.71	%			2.58	%			2.71	%			3.20	%			3.33	%

	PRIVATE BANCORP OF AMERICA, INC.
	Average Balances
	(Unaudited)
	(Dollars in thousands)
	Dec 31, 2020				Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019
Total assets	$	1,234,611			$	1,271,363			$	1,293,484			$	1,088,242			$	1,018,944
Earning assets	$	1,225,806			$	1,260,834			$	1,278,380			$	1,040,267			$	982,032
Total loans	$	1,005,712			$	1,037,195			$	1,008,220			$	881,655			$	845,199
Total deposits	$	1,017,389			$	1,036,223			$	1,062,071			$	896,327			$	842,229
Total equity	$	106,874			$	102,539			$	100,130			$	97,566			$	91,464
	Loan Balances by Type
	(Dollars in thousands)
	Dec 31, 2020				Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019
Real estate - investor owned	$	243,745			$	231,787			$	234,806			$	246,026			$	245,658
Real estate - owner occupied		268,193				250,286				240,587				234,771				225,778
Real estate - multifamily		69,187				64,268				66,431				67,550				68,308
Real estate - single family		67,522				59,994				57,521				58,429				59,487
Commercial business		251,711				237,316				231,832				245,610				243,438
SBA PPP loans		62,338				154,210				153,497				-				-
Land and construction		29,377				28,277				26,327				27,044				32,151
Consumer		6,797				7,559				8,046				7,300				6,172
Total loans held for investment		998,870				1,033,697				1,019,047				886,730				880,992
Loans held for sale		9,687				9,089				7,462				7,346				4,564
Total loans, including loans held for sale		1,008,557				1,042,786				1,026,509				894,076				885,556
Allowance for loan losses		(14,262	)			(12,682	)			(11,100	)			(9,598	)			(8,601	)
Net loans	$	994,295			$	1,030,104			$	1,015,409			$	884,478			$	876,955
	Deposits by Type
	(Dollars in thousands)
	Dec 31, 2020				Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019
Non interest bearing DDA	$	531,732			$	471,324			$	452,155			$	355,225			$	268,116
Interest bearing DDA		60,606				56,837				63,805				108,368				112,397
Savings & MMA		424,540				396,233				427,685				366,109				350,563
Retail CD		7,770				8,401				8,493				8,484				6,989
Jumbo CD		88,300				95,984				84,468				124,101				112,190
Total deposits	$	1,112,948			$	1,028,779			$	1,036,606			$	962,287			$	850,255
	Asset Quality
	(Dollars in thousands)
	Dec 31, 2020				Sep 30, 2020				Jun 30, 2020				Mar 31, 2020				Dec 31, 2019
Total Loans	$	1,008,557			$	1,042,786			$	1,026,509			$	894,076			$	885,556
30-89 day past due loans	$	-			$	-			$	-			$	297			$	-
90+ day past due loans	$	-			$	-			$	-			$	-			$	-
Nonaccrual loans	$	1,609			$	1,743			$	-			$	663			$	-
NPAs / Assets		0.12	%			0.14	%			0.00	%			0.06	%			0.00	%
NPLs / loans & OREO		0.16	%			0.17	%			0.00	%			0.07	%			0.00	%
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		1.41	%			1.22	%			1.08	%			1.07	%			0.97	%
Allowance for loan losses to nonaccrual loans		886.39	%			727.60	%			NM				1447.66	%			NM

 

 

 

 

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