First Quarter 2025 Highlights
- Net income for the first quarter of 2025 was $10.6 million, compared to $10.7 million in the prior quarter and $7.9 million in the first quarter of 2024. Net income for the first quarter of 2025 represents a return on average assets of 1.74% and a return on average tangible common equity of 18.74%
- Diluted earnings per share for the first quarter of 2025 was $1.80, compared to $1.82 in the prior quarter and $1.36 in the first quarter of 2024
- Total deposits were $2.19 billion as of March 31, 2025, an increase of $57.7 million or 2.7% from December 31, 2024, which included a reduction in brokered deposits of $96.9 million. Total deposits increased 15.1% year over year. Core deposits were $2.05 billion as of March 31, 2025, an increase of $154.6 million or 8.2% from December 31, 2024. Core deposits increased 27.5% year over year
- Total cost of deposits was 2.22% for the first quarter of 2025, a decrease from 2.36% in the prior quarter and 2.61% in the first quarter of 2024. The spot rate for total deposits was 2.11% as of March 31, 2025, compared to 2.29% at December 31, 2024. Total cost of funding sources was 2.29% for the first quarter of 2025, a decrease from 2.45% in the prior quarter and 2.70% in the first quarter of 2024
- Loans held-for-investment ("HFI") totaled $2.08 billion as of March 31, 2025, a decrease of $6.5 million or 0.3% from December 31, 2024. Loans HFI increased 9.0% year over year
- Net interest margin was 4.61% for the first quarter of 2025, compared to 4.67% in the prior quarter and 4.31% in the first quarter of 2024
- Provision for credit losses for the first quarter of 2025 was $0.3 million, compared to $17 thousand for the prior quarter and $0.2 million for the first quarter of 2024. The allowance for loan losses was 1.27% of loans HFI as of March 31, 2025 compared to 1.31% at December 31, 2024
- As of March 31, 2025, criticized and classified loans totaled $40.8 million, or 1.96% of total loans, up from $24.7 million, or 1.18% of total loans, in the prior quarter
- Tangible book value per share was $40.29 as of March 31, 2025, an increase of $1.89 since December 31, 2024 primarily as a result of strong earnings. Tangible book value per share increased 4.9% quarter-over-quarter and 20.1% year over year.
LA JOLLA, Calif., April 21, 2025 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX: PBAM), ("Company") and CalPrivate Bank ("Bank") announced unaudited financial results for the first fiscal quarter ended March 31, 2025. The Company reported net income of $10.6 million, or $1.80 per diluted share, for the first quarter of 2025, compared to $10.7 million, or $1.82 per diluted share, in the prior quarter, and $7.9 million, or $1.36 per diluted share, in the first quarter of 2024.
Rick Sowers, President and CEO of the Company and the Bank stated, "We continue to be pleased by the Company and the Team's performance. Strong growth in core deposits over the past year continues and we remain focused on building strong Relationships with our Clients. Loan demand was soft in Q1, as Clients and financial markets digest the current economy and prospects for future growth and stability. We remain optimistic that markets will settle, and demand will return. In the meantime, we are focused on providing the Distinctively Different Service our Clients and Prospects are seeking, getting more efficient and effective in our business through technology, continuous process improvement and building a strong Team throughout the Bank."
Sowers added, "The Bank was recognized throughout the last year for superior financial performance and industry leading service metrics. These recognitions highlight CalPrivate Bank's dedication to excellence, innovation, delivering Client-focused banking solutions and enhancing shareholder value:
- #1 for both Return on Assets (ROA) and Return on Equity (ROE) among banks with less than $5 billion in assets
- #1 SBA 504 Community Bank Lender in the United States
- #10 Best U.S. Bank by Bank Director's RankingBanking®
- Client Net Promoter Score of 81 (World Class)
- Bauer 5 Star Rating
- 2025 Best 50 OTCQX
"As Los Angeles continues to tackle the enormous task of cleaning up after the devastating fires, CalPrivate Bank remains committed to being a partner to our Clients and the Communities we serve."
"As our economy transitions based on priorities of the new administration in Washington DC, and global economic uncertainties increase, management and the board are diligently assessing and acting upon potential future risks and market opportunities. The Bank continues to produce top tier financial results by seeking improved productivity through technology investments, streamlined systems and processes, and hiring top bankers in existing and potential new markets and market segments. We continue to prioritize unparalleled Client service and creative Solutions for our loyal and growing client base. We continue to support a broad range of non-profit organizations in the communities we serve, both through team member volunteering activities and financial resources. Our Team takes great pride in doing well for shareholders by doing good for clients and community," said Selwyn Isakow, Chairman of the Board of the Company and the Bank.
STATEMENT OF INCOME
Net Interest Income
Net interest income for the first quarter of 2025 totaled $27.7 million, an increase of $0.3 million or 1.2% from the prior quarter and an increase of $5.0 million or 21.8% from the first quarter of 2024. The increase from the prior quarter was due to a $0.5 million decrease in interest expense, resulting from a 22 basis point reduction in the cost of interest-bearing liabilities, primarily driven by a 14 basis point decrease in the cost of total deposits.
Net Interest Margin
Net interest margin for the first quarter of 2025 was 4.61%, compared to 4.67% for the prior quarter and 4.31% in the first quarter of 2024. The 6 basis point decrease in net interest margin from the prior quarter was primarily due to lower yields on interest-earning assets and a decrease in prepayment-penalty fees. The yield on interest-earning assets was 6.70% for the first quarter of 2025 compared to 6.89% for the prior quarter, and the cost of interest-bearing liabilities was 3.14% for the first quarter of 2025 compared to 3.36% in the prior quarter. The cost of total deposits was 2.22% for the first quarter of 2025 compared to 2.36% in the prior quarter. The cost of core deposits, which excludes brokered deposits, was 1.99% in the first quarter of 2025 compared to 2.07% in the prior quarter. The spot rate for total deposits was 2.11% as of March 31, 2025, compared to 2.29% at December 31, 2024.
Provision for Credit Losses
Provision expense for credit losses for the first quarter of 2025 was $0.3 million, compared to $17 thousand in the prior quarter and $0.2 million in the first quarter of 2024. The provision expense for loans HFI for the first quarter of 2025 was $0.5 million, primarily reflecting heightened macroeconomic uncertainty incorporated into our forecasts. This was offset by a $0.2 million reversal for unfunded commitments due to increased line of credit utilization that resulted in lower unfunded commitment balances. For more details, please refer to the "Asset Quality" section below.
Noninterest Income
Noninterest income was $1.6 million for the first quarter of 2025, compared to $1.9 million in the prior quarter and $1.4 million in the first quarter of 2024. SBA loan sales for the first quarter of 2025 were $8.3 million with a 10.86% average trade premium resulting in a net gain on sale of $469 thousand, compared with $14.9 million with a 11.45% average trade premium resulting in a net gain on sale of $932 thousand in the prior quarter.
Noninterest Expense
Noninterest expense was $14.1 million for the first quarter of 2025, compared to $14.2 million in the prior quarter and $12.8 million in the first quarter of 2024. The efficiency ratio was 47.90% for the first quarter of 2025 compared to 48.34% in the prior quarter and 52.84% in the first quarter of 2024. The slight decrease in the efficiency ratio from the prior quarter was due to the decrease in noninterest expense.
The Company remains committed to making investments in the business, including technology, marketing, and staffing. Inflationary pressures 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 $4.4 million for the first quarter of 2025, compared to $4.5 million for the prior quarter. The effective tax rate for the first quarter of 2025 was 29.5%, compared to 29.6% in the prior quarter and 29.5% in the first quarter of 2024.
STATEMENT OF FINANCIAL CONDITION
As of March 31, 2025, total assets were $2.48 billion, an increase of $58.9 million since December 31, 2024. The increase in assets from the prior quarter was primarily due to higher cash and due from banks and investment securities, partially offset by lower loans receivable. Our total cash and due from banks increased to $218.5 million as of March 31, 2025, an increase of $54.6 million or 33.3% since December 31, 2024, primarily due to strong growth in core deposits along with lower loan demand. Investment securities available-for-sale ("AFS") were $156.3 million as of March 31, 2025, an increase of $11.1 million or 7.6% since December 31, 2024, primarily as a result of new securities purchased. As of March 31, 2025, the net unrealized loss on the AFS investment securities portfolio, which is comprised mostly of US Treasury and Government Agency debt, was $10.1 million (pre-tax) compared to a loss of $12.1 million (pre-tax) as of December 31, 2024. The average duration of the Bank's AFS portfolio is 3.8 years. The Company has no held-to-maturity securities. Loans HFI totaled $2.08 billion as of March 31, 2025, a decrease of $6.5 million or 0.3% since December 31, 2024, reflecting lower loan production as borrowers deferred new financings amid economic and interest-rate uncertainty as well as wildfire-related disruptions in Southern California.
Total deposits were $2.19 billion as of March 31, 2025, an increase of $57.7 million since December 31, 2024. During the quarter, core deposits increased by $154.6 million, which was driven by a $108.9 million increase in interest-bearing core deposits (including balances in the Intrafi ICS and CDARS programs) and a $45.7 million increase in noninterest-bearing core deposits. The deposit mix has continued to shift due to short-term interest rates remaining elevated compared to recent years. Noninterest-bearing deposits represent 29.2% of total core deposits. Offsetting the increase to total deposits from core deposits, brokered deposits decreased by $96.9 million. Uninsured deposits, net of collateralized and fiduciary deposit accounts, represent 50.1% of total deposits as of March 31, 2025.
As of March 31, 2025, total available liquidity was $2.1 billion or 192.8% of uninsured deposits, net of collateralized and fiduciary deposit accounts. Total available liquidity is comprised of $366 million of on-balance sheet liquidity (cash and investment securities) and $1.8 billion of unused borrowing capacity.
Asset Quality and Allowance for Credit Losses ("ACL")
As of March 31, 2025, the allowance for loan losses was $26.4 million or 1.27% of loans HFI, compared to $27.3 million or 1.31% of loans HFI as of December 31, 2024. The decrease in the coverage ratio from December 31, 2024 is due primarily to a $1.1 million partial charge-off of a nonaccrual loan that previously had a specific reserve of $2.0 million. The Company continues to have strong credit metrics and its nonperforming assets are 0.63% of total assets as of March 31, 2025 compared to 0.47% as of December 31, 2024. The reserve for unfunded commitments was $1.3 million as of March 31, 2025, compared to $1.5 million as of December 31, 2024. The decrease in the reserve for unfunded commitments was due to lower unfunded commitment balances (driven by higher credit line usage). Given the credit quality of the loan portfolio, management believes we are sufficiently reserved.
At March 31, 2025 and December 31, 2024, there were no doubtful credits and classified assets were $27.8 million and $14.9 million, respectively. Total classified assets consisted of 20 loans as of March 31, 2025, which included 17 loans totaling $24.7 million secured by real estate with a weighted average LTV of 52.7%, of which 11 loans totaling $16.4 million had SBA guarantees. The remaining three loans were $3.1 million of commercial and industrial loans, one of which was an unsecured loan on nonaccrual status with a carrying value of $1.5 million and a specific reserve of $1.0 million (net of a $1.1 million partial charge off).
The Bank's loan portfolio does include assets that are in the affected areas of Los Angeles devastated by wildfires. However, based on assessments performed to date, management does not believe there is a material impact to the financial statements.
Capital Ratios (2)
The Bank's capital ratios were in excess of the levels established for "well capitalized" institutions and are as follows:
| March 31, 2025(2) | December 31, 2024 | |
| CalPrivate Bank | ||
| Tier I leverage ratio | 10.35% | 10.39% |
| Tier I risk-based capital ratio | 11.75% | 11.29% |
| Total risk-based capital ratio | 13.00% | 12.54% |
(2) March 31, 2025 capital ratios are preliminary and subject to change.
About Private Bancorp of America, Inc. (OTCQX: PBAM)
PBAM is the holding company for CalPrivate Bank, which operates offices in Coronado, San Diego, La Jolla, Newport Beach, El Segundo, and Beverly Hills, as well as through efficient digital banking services. CalPrivate Bank is driven by its core values of building client Relationships based on superior funding Solutions, unparalleled Service, and mutual Trust. The Bank caters to high-net-worth individuals, professionals, closely-held businesses, and real estate entrepreneurs, delivering a Distinctly Different personalized banking experience while leveraging cutting-edge technology to enhance our clients' evolving needs. CalPrivate Bank is in the top tier of customer service survey ratings in the nation, scoring almost 3x higher than the median domestic bank. The Bank offers comprehensive deposit and treasury services, rapid and creative loan options including various portfolio and government-guaranteed lending programs, cross border banking, and innovative, unique technologies that drive enhanced client performance. CalPrivate Bank has been recognized by Bank Director's RankingBanking® as the 10th best bank in the country and the #1 bank in its asset class for both return on assets (ROA) and return on equity (ROE). CalPrivate Bank was also ranked in the top 5% of banks in the U.S. with assets between $2B and $10B by American Banker. Additionally, CalPrivate Bank is a Bauer Financial 5-star rated bank, an SBA Preferred Lender, and has been honored as Community Bank 504 Lender of the Year by the NADCO Community Impact Awards, exemplifying excellence in the banking industry. These prestigious rankings highlight the Bank's commitment to delivering exceptional banking services and setting new industry standards.
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, including adjusted income before provision for income taxes, adjusted net income, adjusted diluted earnings per share ("Adjusted EPS"), efficiency ratio, adjusted efficiency ratio, pretax pre-provision net revenue, average tangible common equity, adjusted return on average assets, return on average tangible common equity and adjusted return on average tangible common equity. 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, to permit investors to effectively analyze financial trends of our business activities, and to 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 communication contains expressions of expectations, both implied and explicit, that are "forward-looking statements" within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We caution you that a number of important factors could cause actual results to differ materially from those in the forward-looking statements, especially given the current turmoil in the banking and financial markets. These factors include the effects of depositors withdrawing funds unexpectedly, counterparties being unable to provide liquidity sources that we believe should be available, loan losses, economic conditions and competition in the geographic and business areas in which Private Bancorp of America, Inc. operates, including competition in lending and deposit acquisition, the unpredictability of fee income from participation in SBA loan programs, the effects of bank failures, liquidations and mergers in our markets and nationally, our ability to successfully integrate and develop business through the addition of new personnel, whether our efforts to expand loan, product and service offerings will prove profitable, system failures and data security, whether we can effectively secure and implement new technology solutions, 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. These factors could cause actual results to differ materially from what we anticipate or project. You should not place undue reliance on any such forward-looking statement, which speaks only as of the date on which it was made. Although we believe in good faith the assumptions and bases supporting our forward-looking statements to be reasonable, there can be no assurance that those assumptions and bases will prove accurate.
| PRIVATE BANCORP OF AMERICA, INC. CONSOLIDATED BALANCE SHEET (Unaudited) (Dollars in thousands) | ||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | ||||||||||
| Assets | ||||||||||||
| Cash and due from banks | $ | 34,720 | $ | 16,528 | $ | 13,136 | ||||||
| Interest-bearing deposits in other financial institutions | 16,155 | 10,419 | 34,790 | |||||||||
| Interest-bearing deposits at Federal Reserve Bank | 167,606 | 136,929 | 93,575 | |||||||||
| Total cash and due from banks | 218,481 | 163,876 | 141,501 | |||||||||
| Interest-bearing time deposits with other institutions | 4,213 | 4,189 | 4,032 | |||||||||
| Investment debt securities available for sale | 156,346 | 145,238 | 114,067 | |||||||||
| Loans held for sale | 2,066 | 3,008 | 383 | |||||||||
| Loans, net of deferred fees and costs and unaccreted discounts | 2,078,653 | 2,085,149 | 1,906,992 | |||||||||
| Allowance for loan losses | (26,437 | ) | (27,267 | ) | (24,693 | ) | ||||||
| Loans held-for-investment, net of allowance | 2,052,216 | 2,057,882 | 1,882,299 | |||||||||
| Federal Home Loan Bank stock, at cost | 9,586 | 9,586 | 8,915 | |||||||||
| Operating lease right of use assets | 6,383 | 6,819 | 2,765 | |||||||||
| Premises and equipment, net | 2,432 | 2,335 | 1,804 | |||||||||
| Servicing assets, net | 1,993 | 2,087 | 2,203 | |||||||||
| Accrued interest receivable | 8,148 | 7,993 | 7,931 | |||||||||
| Other assets | 21,009 | 20,998 | 21,877 | |||||||||
| Total assets | $ | 2,482,873 | $ | 2,424,011 | $ | 2,187,777 | ||||||
| Liabilities and Shareholders' Equity | ||||||||||||
| Liabilities | ||||||||||||
| Noninterest bearing | $ | 599,095 | $ | 553,405 | $ | 516,294 | ||||||
| Interest bearing | 1,593,014 | 1,581,054 | 1,388,381 | |||||||||
| Total deposits | 2,192,109 | 2,134,459 | 1,904,675 | |||||||||
| FHLB borrowings | 16,000 | 28,000 | 53,000 | |||||||||
| Other borrowings | 17,970 | 17,969 | 17,963 | |||||||||
| Accrued interest payable and other liabilities | 21,559 | 20,049 | 18,107 | |||||||||
| Total liabilities | 2,247,638 | 2,200,477 | 1,993,745 | |||||||||
| Shareholders' equity | ||||||||||||
| Common stock | 76,156 | 75,377 | 74,105 | |||||||||
| Additional paid-in capital | 3,712 | 4,393 | 4,108 | |||||||||
| Retained earnings | 162,462 | 152,252 | 124,464 | |||||||||
| Accumulated other comprehensive (loss) income, net | (7,095 | ) | (8,488 | ) | (8,645 | ) | ||||||
| Total shareholders' equity | 235,235 | 223,534 | 194,032 | |||||||||
| Total liabilities and shareholders' equity | $ | 2,482,873 | $ | 2,424,011 | $ | 2,187,777 | ||||||
| PRIVATE BANCORP OF AMERICA, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Dollars in thousands, except per share amounts) | ||||||||||||
| For the three months ended | ||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | ||||||||||
| Interest Income | ||||||||||||
| Loans | $ | 36,565 | $ | 37,259 | $ | 33,006 | ||||||
| Investment securities | 1,505 | 1,510 | 979 | |||||||||
| Deposits in other financial institutions | 2,198 | 1,661 | 1,799 | |||||||||
| Total interest income | 40,268 | 40,430 | 35,784 | |||||||||
| Interest Expense | ||||||||||||
| Deposits | 11,899 | 12,297 | 12,130 | |||||||||
| Borrowings | 637 | 726 | 886 | |||||||||
| Total interest expense | 12,536 | 13,023 | 13,016 | |||||||||
| Net interest income | 27,732 | 27,407 | 22,768 | |||||||||
| Provision for credit losses | 299 | 17 | 233 | |||||||||
| Net interest income after provision for credit losses | 27,433 | 27,390 | 22,535 | |||||||||
| Noninterest income: | ||||||||||||
| Service charges on deposit accounts | 557 | 558 | 388 | |||||||||
| Net gain on sale of loans | 469 | 932 | 681 | |||||||||
| Other noninterest income | 587 | 456 | 357 | |||||||||
| Total noninterest income | 1,613 | 1,946 | 1,426 | |||||||||
| Noninterest expense: | ||||||||||||
| Compensation and employee benefits | 9,748 | 9,539 | 8,861 | |||||||||
| Occupancy and equipment | 844 | 847 | 770 | |||||||||
| Data processing | 1,326 | 1,195 | 1,058 | |||||||||
| Professional services | 508 | 573 | 488 | |||||||||
| Other expenses | 1,629 | 2,036 | 1,606 | |||||||||
| Total noninterest expense | 14,055 | 14,190 | 12,783 | |||||||||
| Income before provision for income taxes | 14,991 | 15,146 | 11,178 | |||||||||
| Provision for income taxes | 4,429 | 4,488 | 3,294 | |||||||||
| Net income | $ | 10,562 | $ | 10,658 | $ | 7,884 | ||||||
| Net income available to common shareholders | $ | 10,482 | $ | 10,573 | $ | 7,832 | ||||||
| Earnings per share | ||||||||||||
| Basic earnings per share | $ | 1.83 | $ | 1.85 | $ | 1.38 | ||||||
| Diluted earnings per share | $ | 1.80 | $ | 1.82 | $ | 1.36 | ||||||
| Average shares outstanding | 5,734,688 | 5,716,291 | 5,679,843 | |||||||||
| Diluted average shares outstanding | 5,826,229 | 5,813,197 | 5,754,937 | |||||||||
| PRIVATE BANCORP OF AMERICA, INC. Consolidated average balance sheet, interest, yield and rates (Unaudited) (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||||||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | ||||||||||||||||||||||||||||||||||
| 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 | $ | 202,907 | $ | 2,198 | 4.39 | % | $ | 143,053 | $ | 1,661 | 4.62 | % | $ | 135,511 | $ | 1,799 | 5.34 | % | ||||||||||||||||||
| Investment securities | 157,747 | 1,505 | 3.82 | % | 155,768 | 1,510 | 3.88 | % | 119,690 | 979 | 3.27 | % | ||||||||||||||||||||||||
| Loans, including LHFS | 2,078,588 | 36,565 | 7.13 | % | 2,036,178 | 37,259 | 7.28 | % | 1,868,308 | 33,006 | 7.11 | % | ||||||||||||||||||||||||
| Total interest-earning assets | 2,439,242 | 40,268 | 6.70 | % | 2,334,999 | 40,430 | 6.89 | % | 2,123,509 | 35,784 | 6.78 | % | ||||||||||||||||||||||||
| Noninterest-earning assets | 28,536 | 24,951 | 25,469 | |||||||||||||||||||||||||||||||||
| Total Assets | $ | 2,467,778 | $ | 2,359,950 | $ | 2,148,978 | ||||||||||||||||||||||||||||||
| Interest-Bearing Liabilities | ||||||||||||||||||||||||||||||||||||
| Interest bearing DDA, excluding brokered | 244,301 | 970 | 1.61 | % | 178,811 | 634 | 1.41 | % | 109,838 | 441 | 1.61 | % | ||||||||||||||||||||||||
| Savings & MMA, excluding brokered | 955,259 | 6,830 | 2.90 | % | 904,191 | 6,991 | 3.08 | % | 765,770 | 6,421 | 3.37 | % | ||||||||||||||||||||||||
| Time deposits, excluding brokered | 196,375 | 1,956 | 4.04 | % | 191,794 | 2,004 | 4.16 | % | 155,703 | 1,583 | 4.09 | % | ||||||||||||||||||||||||
| Total deposits, excluding brokered | 1,395,935 | 9,756 | 2.83 | % | 1,274,796 | 9,629 | 3.00 | % | 1,031,311 | 8,445 | 3.29 | % | ||||||||||||||||||||||||
| Total brokered deposits | 183,059 | 2,143 | 4.75 | % | 218,792 | 2,668 | 4.85 | % | 287,885 | 3,685 | 5.15 | % | ||||||||||||||||||||||||
| Total Interest-Bearing Deposits | 1,578,994 | 11,899 | 3.06 | % | 1,493,588 | 12,297 | 3.28 | % | 1,319,196 | 12,130 | 3.70 | % | ||||||||||||||||||||||||
| FHLB advances | 24,122 | 272 | 4.57 | % | 29,446 | 343 | 4.63 | % | 49,935 | 614 | 4.95 | % | ||||||||||||||||||||||||
| Other borrowings | 17,981 | 365 | 8.23 | % | 17,967 | 383 | 8.48 | % | 17,962 | 272 | 6.09 | % | ||||||||||||||||||||||||
| Total Interest-Bearing Liabilities | 1,621,097 | 12,536 | 3.14 | % | 1,541,001 | 13,023 | 3.36 | % | 1,387,093 | 13,016 | 3.77 | % | ||||||||||||||||||||||||
| Noninterest-bearing deposits | 594,408 | 577,462 | 553,541 | |||||||||||||||||||||||||||||||||
| Total Funding Sources | 2,215,505 | 12,536 | 2.29 | % | 2,118,463 | 13,023 | 2.45 | % | 1,940,634 | 13,016 | 2.70 | % | ||||||||||||||||||||||||
| Noninterest-bearing liabilities | 21,542 | 21,524 | 18,018 | |||||||||||||||||||||||||||||||||
| Shareholders' equity | 230,731 | 219,963 | 190,326 | |||||||||||||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 2,467,778 | $ | 2,359,950 | $ | 2,148,978 | ||||||||||||||||||||||||||||||
| Net interest income/spread | $ | 27,732 | 4.41 | % | $ | 27,407 | 4.44 | % | $ | 22,768 | 4.08 | % | ||||||||||||||||||||||||
| Net interest margin | 4.61 | % | 4.67 | % | 4.31 | % | ||||||||||||||||||||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. Condensed Balance Sheets (Unaudited) (Dollars in thousands, except per share amounts) | ||||||||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and due from banks | $ | 218,481 | $ | 163,876 | $ | 207,174 | $ | 158,377 | $ | 141,501 | ||||||||||
| Interest-bearing time deposits with other institutions | 4,213 | 4,189 | 4,124 | 4,097 | 4,032 | |||||||||||||||
| Investment securities | 156,346 | 145,238 | 141,100 | 121,725 | 114,067 | |||||||||||||||
| Loans held for sale | 2,066 | 3,008 | 2,040 | - | 383 | |||||||||||||||
| Total loans held-for-investment | 2,078,653 | 2,085,149 | 2,012,457 | 1,979,720 | 1,906,992 | |||||||||||||||
| Allowance for loan losses | (26,437 | ) | (27,267 | ) | (26,594 | ) | (26,591 | ) | (24,693 | ) | ||||||||||
| Loans held-for-investment, net of allowance | 2,052,216 | 2,057,882 | 1,985,863 | 1,953,129 | 1,882,299 | |||||||||||||||
| Operating lease right of use assets | 6,383 | 6,819 | 4,344 | 4,719 | 2,765 | |||||||||||||||
| Premises and equipment, net | 2,432 | 2,335 | 2,345 | 2,207 | 1,804 | |||||||||||||||
| Other assets and interest receivable | 40,736 | 40,664 | 39,383 | 41,430 | 40,926 | |||||||||||||||
| Total assets | $ | 2,482,873 | $ | 2,424,011 | $ | 2,386,373 | $ | 2,285,684 | $ | 2,187,777 | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Noninterest Bearing | $ | 599,095 | $ | 553,405 | $ | 584,292 | $ | 557,055 | $ | 516,294 | ||||||||||
| Interest Bearing | 1,593,014 | 1,581,054 | 1,522,839 | 1,444,671 | 1,388,381 | |||||||||||||||
| Total Deposits | 2,192,109 | 2,134,459 | 2,107,131 | 2,001,726 | 1,904,675 | |||||||||||||||
| Borrowings | 33,970 | 45,969 | 45,967 | 65,965 | 70,963 | |||||||||||||||
| Accrued interest payable and other liabilities | 21,559 | 20,049 | 19,062 | 16,551 | 18,107 | |||||||||||||||
| Total liabilities | 2,247,638 | 2,200,477 | 2,172,160 | 2,084,242 | 1,993,745 | |||||||||||||||
| Shareholders' equity | ||||||||||||||||||||
| Common stock | 76,156 | 75,377 | 74,688 | 74,636 | 74,105 | |||||||||||||||
| Additional paid-in capital | 3,712 | 4,393 | 4,271 | 3,717 | 4,108 | |||||||||||||||
| Retained earnings | 162,462 | 152,252 | 141,623 | 132,179 | 124,464 | |||||||||||||||
| Accumulated other comprehensive (loss) income | (7,095 | ) | (8,488 | ) | (6,369 | ) | (9,090 | ) | (8,645 | ) | ||||||||||
| Total shareholders' equity | 235,235 | 223,534 | 214,213 | 201,442 | 194,032 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 2,482,873 | $ | 2,424,011 | $ | 2,386,373 | $ | 2,285,684 | $ | 2,187,777 | ||||||||||
| Book value per common share | $ | 40.63 | $ | 38.76 | $ | 37.21 | $ | 35.03 | $ | 33.94 | ||||||||||
| Tangible book value per common share(1) | $ | 40.29 | $ | 38.40 | $ | 36.87 | $ | 34.65 | $ | 33.55 | ||||||||||
| Shares outstanding | 5,789,306 | 5,766,810 | 5,756,207 | 5,751,143 | 5,717,519 | |||||||||||||||
(1) Non-GAAP measure. See GAAP to non-GAAP Reconciliation table.
| PRIVATE BANCORP OF AMERICA, INC. Condensed Statements of Income (Unaudited) (Dollars in thousands, except per share amounts) | |||||||||||||||||||
| For the three months ended | |||||||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | |||||||||||||||
| Interest income | $ | 40,268 | $ | 40,430 | $ | 40,018 | $ | 38,662 | $ | 35,784 | |||||||||
| Interest expense | 12,536 | 13,023 | 14,311 | 13,992 | 13,016 | ||||||||||||||
| Net interest income | 27,732 | 27,407 | 25,707 | 24,670 | 22,768 | ||||||||||||||
| Provision for credit losses | 299 | 17 | 304 | 2,136 | 233 | ||||||||||||||
| Net interest income after provision for credit losses | 27,433 | 27,390 | 25,403 | 22,534 | 22,535 | ||||||||||||||
| Service charges on deposit accounts | 557 | 558 | 504 | 430 | 388 | ||||||||||||||
| Net gain on sale of loans | 469 | 932 | 587 | 661 | 681 | ||||||||||||||
| Other noninterest income | 587 | 456 | 343 | 447 | 357 | ||||||||||||||
| Total noninterest income | 1,613 | 1,946 | 1,434 | 1,538 | 1,426 | ||||||||||||||
| Compensation and employee benefits | 9,748 | 9,539 | 9,422 | 8,836 | 8,861 | ||||||||||||||
| Occupancy and equipment | 844 | 847 | 818 | 822 | 770 | ||||||||||||||
| Data processing | 1,326 | 1,195 | 1,238 | 1,183 | 1,058 | ||||||||||||||
| Professional services | 508 | 573 | 252 | 424 | 488 | ||||||||||||||
| Other expenses | 1,629 | 2,036 | 1,695 | 1,697 | 1,606 | ||||||||||||||
| Total noninterest expense | 14,055 | 14,190 | 13,425 | 12,962 | 12,783 | ||||||||||||||
| Income before provision for income taxes | 14,991 | 15,146 | 13,412 | 11,110 | 11,178 | ||||||||||||||
| Income taxes | 4,429 | 4,488 | 3,959 | 3,283 | 3,294 | ||||||||||||||
| Net income | $ | 10,562 | $ | 10,658 | $ | 9,453 | $ | 7,827 | $ | 7,884 | |||||||||
| Net income available to common shareholders | $ | 10,482 | $ | 10,573 | $ | 9,373 | $ | 7,761 | $ | 7,832 | |||||||||
| Earnings per share | |||||||||||||||||||
| Basic earnings per share | $ | 1.83 | $ | 1.85 | $ | 1.64 | $ | 1.36 | $ | 1.38 | |||||||||
| Diluted earnings per share | $ | 1.80 | $ | 1.82 | $ | 1.63 | $ | 1.35 | $ | 1.36 | |||||||||
| Average shares outstanding | 5,734,688 | 5,716,291 | 5,707,723 | 5,702,938 | 5,679,843 | ||||||||||||||
| Diluted average shares outstanding | 5,826,229 | 5,813,197 | 5,767,401 | 5,762,616 | 5,754,937 | ||||||||||||||
| Performance Ratios | |||||||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | |||||||||||||||
| ROAA | 1.74 | % | 1.80 | % | 1.62 | % | 1.40 | % | 1.48 | % | |||||||||
| ROAE | 18.56 | % | 19.28 | % | 18.00 | % | 15.81 | % | 16.66 | % | |||||||||
| ROATCE(1) | 18.74 | % | 19.46 | % | 18.18 | % | 15.99 | % | 16.86 | % | |||||||||
| Net interest margin | 4.61 | % | 4.67 | % | 4.44 | % | 4.48 | % | 4.31 | % | |||||||||
| Net interest spread | 4.41 | % | 4.44 | % | 4.20 | % | 4.24 | % | 4.08 | % | |||||||||
| Efficiency ratio(1) | 47.90 | % | 48.34 | % | 49.46 | % | 49.46 | % | 52.84 | % | |||||||||
| Noninterest expense / average assets | 2.31 | % | 2.39 | % | 2.29 | % | 2.32 | % | 2.39 | % | |||||||||
(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 | ||||||||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||||||||||||||||
| Total assets | $ | 2,467,778 | $ | 2,359,950 | $ | 2,328,399 | $ | 2,241,860 | $ | 2,148,978 | ||||||||||
| Earning assets | $ | 2,439,242 | $ | 2,334,999 | $ | 2,303,537 | $ | 2,216,185 | $ | 2,123,509 | ||||||||||
| Total loans, including loans held for sale | $ | 2,078,588 | $ | 2,036,178 | $ | 1,989,748 | $ | 1,939,746 | $ | 1,868,308 | ||||||||||
| Total deposits | $ | 2,173,402 | $ | 2,071,050 | $ | 2,047,197 | $ | 1,961,099 | $ | 1,872,737 | ||||||||||
| Total shareholders' equity | $ | 230,731 | $ | 219,963 | $ | 208,889 | $ | 199,088 | $ | 190,326 | ||||||||||
| Loan Balances by Type | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||||||||||||||||
| Commercial Real Estate (CRE): | ||||||||||||||||||||
| Investor owned | $ | 577,512 | $ | 572,659 | $ | 560,481 | $ | 566,314 | $ | 573,587 | ||||||||||
| Owner occupied | 228,232 | 223,442 | 221,364 | 216,876 | 216,123 | |||||||||||||||
| Multifamily | 163,218 | 162,330 | 175,387 | 177,390 | 175,629 | |||||||||||||||
| Secured by single family | 200,650 | 198,579 | 190,738 | 181,744 | 157,092 | |||||||||||||||
| Land and construction | 70,293 | 62,638 | 68,186 | 58,109 | 35,975 | |||||||||||||||
| SBA secured by real estate | 402,524 | 401,990 | 395,646 | 388,271 | 385,416 | |||||||||||||||
| Total CRE | 1,642,429 | 1,621,638 | 1,611,802 | 1,588,704 | 1,543,822 | |||||||||||||||
| Commercial business: | ||||||||||||||||||||
| Commercial and industrial | 417,258 | 441,182 | 383,874 | 378,161 | 352,417 | |||||||||||||||
| SBA non-real estate secured | 17,004 | 20,205 | 15,101 | 10,758 | 8,657 | |||||||||||||||
| Total commercial business | 434,262 | 461,387 | 398,975 | 388,919 | 361,074 | |||||||||||||||
| Consumer | 1,962 | 2,124 | 1,680 | 2,097 | 2,096 | |||||||||||||||
| Total loans held for investment | $ | 2,078,653 | $ | 2,085,149 | $ | 2,012,457 | $ | 1,979,720 | $ | 1,906,992 | ||||||||||
| Deposits by Type | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||||||||||||||||
| Noninterest-bearing DDA | $ | 599,095 | $ | 553,405 | $ | 584,292 | $ | 557,055 | $ | 516,294 | ||||||||||
| Interest-bearing DDA, excluding brokered | 257,720 | 251,594 | 182,268 | 156,253 | 117,129 | |||||||||||||||
| Savings & MMA, excluding brokered | 981,491 | 887,740 | 920,219 | 861,508 | 812,841 | |||||||||||||||
| Time deposits, excluding brokered | 210,845 | 201,851 | 186,583 | 168,664 | 160,605 | |||||||||||||||
| Total deposits, excluding brokered | 2,049,151 | 1,894,590 | 1,873,362 | 1,743,480 | 1,606,869 | |||||||||||||||
| Total brokered deposits | 142,958 | 239,869 | 233,769 | 258,246 | 297,806 | |||||||||||||||
| Total deposits | $ | 2,192,109 | $ | 2,134,459 | $ | 2,107,131 | $ | 2,001,726 | $ | 1,904,675 | ||||||||||
| PRIVATE BANCORP OF AMERICA, INC. (Unaudited) | ||||||||||||||||||||
| Rollforward of Allowance for Credit Losses | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||||||||||||||||
| Allowance for loan losses: | ||||||||||||||||||||
| Beginning balance | $ | 27,267 | $ | 26,594 | $ | 26,591 | $ | 24,693 | $ | 24,476 | ||||||||||
| Provision for loan losses | 460 | 673 | 3 | 1,994 | 251 | |||||||||||||||
| Net (charge-offs) recoveries | (1,290 | ) | - | - | (96 | ) | (34 | ) | ||||||||||||
| Ending balance | 26,437 | 27,267 | 26,594 | 26,591 | 24,693 | |||||||||||||||
| Reserve for unfunded commitments | 1,348 | 1,509 | 2,165 | 1,865 | 1,723 | |||||||||||||||
| Total allowance for credit losses | $ | 27,785 | $ | 28,776 | $ | 28,759 | $ | 28,456 | $ | 26,416 | ||||||||||
| Asset Quality | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||||||||||||||||
| Total loans held-for-investment | $ | 2,078,653 | $ | 2,085,149 | $ | 2,012,457 | $ | 1,979,720 | $ | 1,906,992 | ||||||||||
| Allowance for loan losses | $ | (26,437 | ) | $ | (27,267 | ) | $ | (26,594 | ) | $ | (26,591 | ) | $ | (24,693 | ) | |||||
| 30-89 day past due loans | $ | 2,399 | $ | 1,952 | $ | - | $ | - | $ | - | ||||||||||
| 90+ day past due loans | $ | 13,223 | $ | 11,512 | $ | 11,512 | $ | 2,500 | $ | 3,530 | ||||||||||
| Nonaccrual loans | $ | 15,565 | $ | 11,512 | $ | 11,512 | $ | 2,500 | $ | 4,656 | ||||||||||
| NPAs / Assets | 0.63 | % | 0.47 | % | 0.48 | % | 0.11 | % | 0.21 | % | ||||||||||
| NPLs / Total loans held-for-investment & OREO | 0.75 | % | 0.55 | % | 0.57 | % | 0.13 | % | 0.24 | % | ||||||||||
| Net quarterly charge-offs (recoveries) | $ | 1,290 | $ | - | $ | - | $ | 96 | $ | 34 | ||||||||||
| Net charge-offs (recoveries) /avg loans (annualized) | 0.25 | % | 0.00 | % | 0.00 | % | 0.02 | % | 0.01 | % | ||||||||||
| Allowance for loan losses to loans HFI | 1.27 | % | 1.31 | % | 1.32 | % | 1.34 | % | 1.29 | % | ||||||||||
| Allowance for loan losses to nonaccrual loans | 169.85 | % | 236.86 | % | 231.01 | % | 1,063.64 | % | 530.35 | % | ||||||||||
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, and 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 | ||||||||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||||||||||||||||
| Efficiency Ratio | ||||||||||||||||||||
| Noninterest expense | $ | 14,055 | $ | 14,190 | $ | 13,425 | $ | 12,962 | $ | 12,783 | ||||||||||
| Net interest income | 27,732 | 27,407 | 25,707 | 24,670 | 22,768 | |||||||||||||||
| Noninterest income | 1,613 | 1,946 | 1,434 | 1,538 | 1,426 | |||||||||||||||
| Total net interest income and noninterest income | 29,345 | 29,353 | 27,141 | 26,208 | 24,194 | |||||||||||||||
| Efficiency ratio (non-GAAP) | 47.90 | % | 48.34 | % | 49.46 | % | 49.46 | % | 52.84 | % | ||||||||||
| Pretax pre-provision net revenue | ||||||||||||||||||||
| Net interest income | $ | 27,732 | $ | 27,407 | $ | 25,707 | $ | 24,670 | $ | 22,768 | ||||||||||
| Noninterest income | 1,613 | 1,946 | 1,434 | 1,538 | 1,426 | |||||||||||||||
| Total net interest income and noninterest income | 29,345 | 29,353 | 27,141 | 26,208 | 24,194 | |||||||||||||||
| Less: Noninterest expense | 14,055 | 14,190 | 13,425 | 12,962 | 12,783 | |||||||||||||||
| Pretax pre-provision net revenue (non-GAAP) | $ | 15,290 | $ | 15,163 | $ | 13,716 | $ | 13,246 | $ | 11,411 | ||||||||||
| Return and Adjusted Return on Average Assets, Average Equity, Average Tangible Equity | ||||||||||||||||||||
| Net income | $ | 10,562 | $ | 10,658 | $ | 9,453 | $ | 7,827 | $ | 7,884 | ||||||||||
| Average assets | 2,467,778 | 2,359,950 | 2,328,399 | 2,241,860 | 2,148,978 | |||||||||||||||
| Average shareholders' equity | 230,731 | 219,963 | 208,889 | 199,088 | 190,326 | |||||||||||||||
| Less: Average intangible assets | 2,098 | 2,028 | 2,051 | 2,163 | 2,208 | |||||||||||||||
| Average tangible common equity (non-GAAP) | 228,633 | 217,935 | 206,838 | 196,925 | 188,118 | |||||||||||||||
| Return on average assets | 1.74 | % | 1.80 | % | 1.62 | % | 1.40 | % | 1.48 | % | ||||||||||
| Return on average equity | 18.56 | % | 19.28 | % | 18.00 | % | 15.81 | % | 16.66 | % | ||||||||||
| Return on average tangible common equity (non-GAAP) | 18.74 | % | 19.46 | % | 18.18 | % | 15.99 | % | 16.86 | % | ||||||||||
| Tangible book value per share | ||||||||||||||||||||
| Total equity | 235,235 | 223,534 | 214,213 | 201,442 | 194,032 | |||||||||||||||
| Less: Total intangible assets | 1,993 | 2,087 | 2,006 | 2,164 | 2,203 | |||||||||||||||
| Total tangible equity | 233,242 | 221,447 | 212,207 | 199,278 | 191,829 | |||||||||||||||
| Shares outstanding | 5,789,306 | 5,766,810 | 5,756,207 | 5,751,143 | 5,717,519 | |||||||||||||||
| Tangible book value per share (non-GAAP) | $ | 40.29 | $ | 38.40 | $ | 36.87 | $ | 34.65 | $ | 33.55 | ||||||||||
