- Net income for the quarter was $2.1 million, up 9% for the quarter and 98% year-over-year.
- Net interest income for the quarter was $11.6 million, up 0.7% for the quarter and 15% year-over-year.
- Net interest margin for the quarter was 3.66% compared to 4.46% in the first quarter and 4.70% in the prior year.
- Total assets increased $88.1 million, or 7%, for the quarter and $333 million, or 36%, year-over-year.
- Total loans increased to $1.0 billion up 15% for the quarter and up 29% year-over-year
- Funded $158.2 million in loans through the Paycheck Protection Program.
- Total deposits increased to $1.0 billion up 8% for the quarter and up 42% year-over-year
- Non-interest-bearing deposits increased 27% during the quarter and 83% year-over-year.
- The Allowance for Loan Losses increased $1.5 million to $11.1 million in response to increasing uncertain economic conditions.
- No delinquent or past due loans at June 30, 2020
LA JOLLA, Calif., July 20, 2020 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM), (“Company”) and CalPrivate Bank (“Bank”) announced unaudited financial results for the second quarter ending June 30, 2020. For the second quarter of 2020, the Company reported net income of $2.1 million or $0.37 per diluted share.
The Bank remains focused on ensuring the safety and prosperity of our employees and clients during the ongoing COVID-19 crisis and continues operating at most of our locations with modified branch hours. During the quarter, the Bank supported our clients and acquired new clients by participating in the Small Business Administrations’ Paycheck Protection Program (“PPP”). The Bank funded 611 loans for $158.2 million and collected approximately $5.5 million in fees from PPP lending efforts. These fees are anticipated to be accretive to non-interest income over approximately the next two years.
As of June 30, 2020, 56 loans totaling $97.5 have been granted loan deferrals in relation to COVID-19. The Bank had no past due loans at the end of the quarter. Criticized assets were $5.3 million, consisting of 5 relationships all related to the impacts of COVID-19. Classified assets were $4.8 million at quarter end, of which the largest loan was a well secured $3.5 million credit. There were no doubtful credits or charge offs in the quarter.
The Allowance for Loan Losses increased $1.5 million to $11.1 million in the quarter with a resulting coverage ratio of 1.08% compared to $9.6 million or 1.07% at the first quarter of 2020 and $7.6 million or 0.96% at the second 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. Excluding the impact of PPP loans, the coverage ratio on the loan portfolio increased to 1.28%.
Tom Wornham, CEO of the Company and the Bank said, “Our growth continues to come from all of our business lines throughout our Coastal Southern California footprint. We are very appreciative of the support of our clients and shareholders; as well as the hard work of our Team Members, who are successfully implementing our organic growth strategy. We continue to implement our pandemic and business continuity plans, allowing us to run our business safely and soundly. The COVID-19 environment still creates uncertain economic factors. The Bank maintains strong on balance sheet and contingent liquidity positions with a liquidity ratio at 20% at the end of the quarter and loan-to-deposit ratio of 99.03%.
“We have adjusted the way we do business to protect our Team Members and Clients. In an effort to mitigate the impact on the Bank, we increased our on-balance sheet liquidity. We continue to increase our loan loss reserves, and remain in constant communication with our borrowers, a cornerstone of our relationship-based model.”
Rick Sowers, President of the Company and Bank added, “Our team has done a tremendous job responding to client needs during the past quarter. It's clear that their dedication to the success of our clients and the communities we serve is at the forefront of everything we do. This has led to growth in both our existing relationships and the establishment of new ones as a result of our efforts in the PP Program and our solutions-based approach. It is the focus on local businesses and families that continues to highlight the importance of community banks like CalPrivate in our financial systems and labor markets.”
The Company reported net income of $2.1 million or $0.37 per diluted share for the quarter ended June 30, 2020 compared with net income of $1.9 million or $0.34 per diluted share in the first quarter and $1.1 million or $0.20 per diluted share for the same period last year. Net interest income was $11.6 million for the second quarter of 2020, representing a $85 thousand or 0.70%, increase compared to the first quarter of 2020 and a $1.5 million or 15.1% increase, compared to the same period in 2019. Net interest margin for the second quarter of 2020 was 3.66% compared with 4.46% for the first quarter of 2020 and 4.70% for the same period in 2019. The decrease in the net interest margin for the quarter was attributable to decreased market rates as a result of rate cuts in the Fed Funds Rate, costs associated with calling wholesale brokered deposits and the effect of lower yielding PPP loans. The yield on earning assets for the second quarter of 2020 was 4.29% compared with 5.35% in the first quarter and 5.67% for the same period in 2019. The yield on loans for the quarter decreased to 5.30% compared to 5.99% in the first quarter of this year and decreased from 6.13% in the second quarter of 2019. The cost of total funding sources was 0.69% for the quarter compared with 0.95% in the first quarter and 1.04% for the same period in 2019. The funding cost for the quarter was negatively impacted by accelerating the premium of wholesale CDs by 11 bps. Additionally, the decrease in funding costs was due to repricing of floating rate client deposit costs and an increase in non-interest-bearing deposit balances.
Non-interest income was $1.4 million for the second quarter of 2020, representing a $232 thousand or 20% increase compared to the first quarter of 2020 and a $772 thousand or 127% increase compared to the same period in 2019. The increase in non-interest income for the quarter and compared to a year ago is primarily due to gains from investment sales offset by fewer gains from SBA loans sales. SBA loan sales for the second quarter were $3.4 million with a 10.4% trade premium compared with $11.2 million with a 9.8% trade premium in the first quarter of 2020 and $4.7 million with a 10.3% trade premium in the second quarter of 2019.
Non-interest expense was $8.7 million for the second quarter of 2020 representing a $45 thousand increase, or 1%, compared to the first quarter of 2020 and a $465 thousand, or 6% increase, compared to the same period in 2019. The increase in first quarter expenses was primarily due to increases in salaries and commissions partially offset by a decrease in professional fees. The increase compared to the second quarter of 2019 was due to increases in facilities and professional services. Approximately $186 thousand of salary and other expense for the quarter was attributed to COVID-19 and PPP related expenses.
The Company increased total assets to $1.3 billion at June 30, 2020, representing an increase of $88.1 million or 7% compared to the first quarter of 2020 and $333 million or 36% compared to the same period in 2019. Total loans increased $132.4 million, or 15%, from the first quarter to $1.0 billion at June 30, 2020 and increased $231.2 million, or 29%, from the second quarter of 2019. Substantially all of the loan growth for the quarter was related to PPP loans.
“The Company’s second quarter of 2020 was marked by the significant increase in non-interest-bearing deposits from relationship clients and the successful execution of the Paycheck Protection Program. The CalPrivate Bank team members reacted magnificently to the challenges of work-at-home and maintained our Distinctly Different™ client service levels, a hallmark of the Bank,” said Selwyn Isakow, Chairman of the Board of PBAM and the Bank. “The Board and management continue to closely monitor the loan portfolio in these uncertain times, seeking to assist our valued clients in meeting their goals, while also enhancing the Loan Loss Reserve based on the precariousness of external factors. The Bank also has evaluated and enhanced our Diversity, Equity and Inclusion Policy and the organization continues to encourage Team member community service activities.”
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
Thomas V. Wornham
CEO
Private Bancorp of America, Inc.
(858) 875-6900
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) | ||||||||||||||||||||||||
| June 30, 2020 | March 31, 2020 | Dollar change | Percentage change | June 30, 2019 | Dollar change | Percentage change | ||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Cash and due from banks | $ | 18,431 | $ | 24,966 | $ | (6,535 | ) | -26.2 | % | $ | 26,410 | $ | (7,979 | ) | -30.2 | % | ||||||||
| Interest-bearing deposits in other financial institutions | 1,200 | 3,192 | (1,992 | ) | -62.4 | % | 2,447 | (1,247 | ) | -51.0 | % | |||||||||||||
| Interest-bearing deposits at Federal Reserve Bank | 179,615 | 192,996 | (13,381 | ) | -6.9 | % | 14,227 | 165,388 | 1162.5 | % | ||||||||||||||
| Total cash and due from banks | 199,246 | 221,154 | 1 | (21,908 | ) | -9.9 | % | 43,084 | 156,162 | 362.5 | % | |||||||||||||
| Interest-bearing time deposits with other institutions | 5,758 | 5,756 | 2 | 0.0 | % | 2,254 | 3,504 | 155.5 | % | |||||||||||||||
| Investment securities available for sale | 27,664 | 49,327 | (21,663 | ) | -43.9 | % | 84,719 | (57,055 | ) | -67.3 | % | |||||||||||||
| Loans | 1,026,509 | 894,076 | 132,433 | 14.8 | % | 795,345 | 231,164 | 29.1 | % | |||||||||||||||
| Allowance for loan losses | (11,100 | ) | (9,598 | ) | (1,502 | ) | 15.6 | % | (7,637 | ) | (3,463 | ) | 45.3 | % | ||||||||||
| Net loans | 1,015,409 | 884,478 | 130,931 | 14.8 | % | 787,708 | 227,701 | 28.9 | % | |||||||||||||||
| Federal Home Loan Bank stock, at cost | 4,602 | 4,060 | 542 | 13.3 | % | 4,060 | 542 | 13.3 | % | |||||||||||||||
| Right of use asset | 5,632 | 6,022 | (390 | ) | -6.5 | % | 7,271 | (1,639 | ) | 0.0 | % | |||||||||||||
| Premises and equipment, net | 3,055 | 3,052 | 3 | 0.1 | % | 2,669 | 386 | 14.5 | % | |||||||||||||||
| Other intangible assets | 1,281 | 1,267 | 14 | 1.1 | % | 904 | 377 | 41.7 | % | |||||||||||||||
| Deferred tax asset | 4,141 | 4,141 | - | 0.0 | % | 4,409 | (268 | ) | -6.1 | % | ||||||||||||||
| Accrued interest receivable | 3,556 | 3,122 | 434 | 13.9 | % | 2,731 | 825 | 30.2 | % | |||||||||||||||
| Other assets | 3,668 | 3,502 | 166 | 4.7 | % | 738 | 2,930 | 397.0 | % | |||||||||||||||
| Total assets | $ | 1,274,012 | $ | 1,185,881 | $ | 88,131 | 7.4 | % | $ | 940,547 | $ | 333,465 | 35.5 | % | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Noninterest bearing | $ | 452,155 | $ | 355,225 | $ | 96,930 | 27.3 | % | $ | 247,153 | $ | 205,002 | 82.9 | % | ||||||||||
| Interest Bearing | 584,451 | 607,062 | (22,611 | ) | -3.7 | % | 485,011 | 99,440 | 20.5 | % | ||||||||||||||
| Total deposits | 1,036,606 | 962,287 | 74,319 | 7.7 | % | 732,164 | 304,442 | 41.6 | % | |||||||||||||||
| FHLB borrowings | 105,000 | 95,000 | 10,000 | 10.5 | % | 82,000 | 23,000 | 28.0 | % | |||||||||||||||
| Other borrowings | 17,936 | 17,934 | 2 | 0.0 | % | 17,929 | 7 | 0.0 | % | |||||||||||||||
| Accrued interest payable and other liabilities | 14,097 | 12,497 | 1,600 | 12.8 | % | 10,599 | 3,498 | 33.0 | % | |||||||||||||||
| Total liabilities | 1,173,639 | 1,087,718 | 85,921 | 7.9 | % | 842,692 | 330,947 | 39.3 | % | |||||||||||||||
| Shareholders' equity | ||||||||||||||||||||||||
| Common stock | 69,512 | 69,165 | 347 | 0.5 | % | 68,740 | 772 | 1.1 | % | |||||||||||||||
| Additional paid-in capital | 3,002 | 3,254 | (252 | ) | -7.7 | % | 2,823 | 179 | 6.3 | % | ||||||||||||||
| Retained earnings | 26,984 | 24,839 | 2,145 | 8.6 | % | 25,997 | 987 | 3.8 | % | |||||||||||||||
| Accumulated other comprehensive income | 875 | 905 | (30 | ) | -3.3 | % | 295 | 580 | 196.6 | % | ||||||||||||||
| Total stockholders' equity | 100,373 | 98,163 | 2,210 | 2.3 | % | 97,855 | 2,518 | 2.6 | % | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,274,012 | $ | 1,185,881 | $ | 88,131 | 7.4 | % | $ | 940,547 | $ | 333,465 | 35.5 | % | ||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | ||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||||
| June 30, 2020 | March 31, 2020 | Dollar change | Percentage change | June 30, 2019 | Dollar change | Percentage change | ||||||||||||||||
| Interest Income | ||||||||||||||||||||||
| Loans | $ | 13,293 | $ | 13,129 | $ | 164 | 1.2 | % | $ | 11,442 | $ | 1,851 | 16.2 | % | ||||||||
| Investment securities | 251 | 401 | (150 | ) | -37.4 | % | 601 | (350 | ) | -58.2 | % | |||||||||||
| Deposits in other financial institutions | 91 | 304 | (213 | ) | -70.1 | % | 126 | (35 | ) | -27.8 | % | |||||||||||
| Total interest income | 13,635 | 13,834 | (199 | ) | -1.4 | % | 12,169 | 1,466 | 12.0 | % | ||||||||||||
| Interest Expense | ||||||||||||||||||||||
| Deposits | 1,356 | 1,710 | (354 | ) | -20.7 | % | 1,340 | 16 | 1.2 | % | ||||||||||||
| Borrowings | 659 | 589 | 70 | 11.9 | % | 736 | (77 | ) | -10.5 | % | ||||||||||||
| Total interest expense | 2,015 | 2,299 | (284 | ) | -12.4 | % | 2,076 | (61 | ) | -2.9 | % | |||||||||||
| Net interest income | 11,620 | 11,535 | 85 | 0.7 | % | 10,093 | 1,527 | 15.1 | % | |||||||||||||
| Provision for loan losses | 1,511 | 997 | 514 | 51.6 | % | 996 | 515 | 51.7 | % | |||||||||||||
| Net interest income after provision for loan losses | 10,109 | 10,538 | (429 | ) | -4.1 | % | 9,097 | 1,012 | 11.1 | % | ||||||||||||
| Noninterest income: | ||||||||||||||||||||||
| Service charges on deposit accounts | 143 | 173 | (30 | ) | -17.3 | % | 117 | 26 | 22.2 | % | ||||||||||||
| Net gain on sale of loans | 210 | 679 | (469 | ) | -69.1 | % | 307 | (97 | ) | -31.6 | % | |||||||||||
| Gain on sale of investment securities | 751 | - | 751 | NM | 4 | 747 | 18675.0 | % | ||||||||||||||
| Other noninterest income | 274 | 294 | (20 | ) | -6.8 | % | 178 | 96 | 53.9 | % | ||||||||||||
| Total noninterest income | 1,378 | 1,146 | 232 | 20.2 | % | 606 | 772 | 127.4 | % | |||||||||||||
| Noninterest expense: | ||||||||||||||||||||||
| Salary and employee benefits | 5,790 | 5,552 | 238 | 4.3 | % | 5,892 | (102 | ) | -1.7 | % | ||||||||||||
| Occupancy and equipment | 900 | 884 | 16 | 1.8 | % | 641 | 259 | 40.4 | % | |||||||||||||
| Data processing | 561 | 518 | 43 | 8.3 | % | 490 | 71 | 14.5 | % | |||||||||||||
| Professional services | 628 | 859 | (231 | ) | -26.9 | % | 364 | 264 | 72.5 | % | ||||||||||||
| Other expenses | 827 | 848 | (21 | ) | -2.5 | % | 854 | (27 | ) | -3.2 | % | |||||||||||
| Total noninterest expense | 8,706 | 8,661 | 45 | 0.5 | % | 8,241 | 465 | 5.6 | % | |||||||||||||
| Income before provision for income taxes | 2,781 | 3,023 | (242 | ) | -8.0 | % | 1,462 | 1,319 | 90.2 | % | ||||||||||||
| Provision for income taxes | 711 | 1,116 | (405 | ) | -36.3 | % | 411 | 300 | 73.0 | % | ||||||||||||
| Net income | $ | 2,070 | $ | 1,907 | $ | 163 | 8.5 | % | $ | 1,051 | $ | 1,019 | 97.0 | % | ||||||||
| Net income available to common shareholders | $ | 2,038 | $ | 1,874 | $ | 164 | 8.8 | % | $ | 1,031 | $ | 1,007 | 97.7 | % | ||||||||
| Earnings per share | ||||||||||||||||||||||
| Basic earnings per share | $ | 0.37 | $ | 0.34 | $ | 0.03 | 8.8 | % | $ | 0.21 | $ | 0.16 | 80.4 | % | ||||||||
| Diluted earnings per share | $ | 0.37 | $ | 0.34 | $ | 0.03 | 8.8 | % | $ | 0.20 | $ | 0.17 | 84.2 | % | ||||||||
| Average shares outstanding | 5,435,155 | 5,488,197 | (53,042 | ) | -1.0 | % | 5,027,437 | 407,718 | 8.1 | % | ||||||||||||
| Diluted average shares outstanding | 5,453,597 | 5,555,376 | (101,779 | ) | -1.8 | % | 5,133,305 | 320,292 | 6.2 | % | ||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
| (Unaudited) | |||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||
| For the six months ended | |||||||||||||
| June 30, 2020 | June 30, 2019 | Dollar change | Percentage change | ||||||||||
| Interest Income | |||||||||||||
| Loans | $ | 26,421 | $ | 21,953 | $ | 4,468 | 20.4 | % | |||||
| Investment securities | 652 | 1,274 | (622 | ) | -48.8 | % | |||||||
| Deposits in other financial institutions | 395 | 259 | 136 | 52.5 | % | ||||||||
| Total interest income | 27,468 | 23,486 | 3,982 | 17.0 | % | ||||||||
| Interest Expense | |||||||||||||
| Deposits | 3,066 | 2,547 | 519 | 20.4 | % | ||||||||
| Borrowings | 1,248 | 1,215 | 33 | 2.7 | % | ||||||||
| Total interest expense | 4,314 | 3,762 | 552 | 14.7 | % | ||||||||
| Net interest income | 23,154 | 19,724 | 3,430 | 17.4 | % | ||||||||
| Provision for loan losses | 2,508 | 1,385 | 1,123 | 81.1 | % | ||||||||
| Net interest income after provision for loan losses | 20,646 | 18,339 | 2,307 | 12.6 | % | ||||||||
| Noninterest income: | |||||||||||||
| Service charges on deposit accounts | 317 | 210 | 107 | 51.0 | % | ||||||||
| Net gain on sale of loans | 889 | 654 | 235 | 35.9 | % | ||||||||
| Gain on sale of investment securities | 751 | 25 | 726 | 2904.0 | % | ||||||||
| Other noninterest income | 568 | 269 | 299 | 111.2 | % | ||||||||
| Total noninterest income | 2,525 | 1,158 | 1,367 | 118.0 | % | ||||||||
| Noninterest expense: | |||||||||||||
| Salary and employee benefits | 11,343 | 11,101 | 242 | 2.2 | % | ||||||||
| Occupancy and equipment | 1,784 | 1,314 | 470 | 35.8 | % | ||||||||
| Data processing | 1,079 | 1,014 | 65 | 6.4 | % | ||||||||
| Professional services | 1,487 | 750 | 737 | 98.3 | % | ||||||||
| Other expenses | 1,675 | 1,578 | 97 | 6.1 | % | ||||||||
| Total noninterest expense | 17,368 | 15,757 | 1,611 | 10.2 | % | ||||||||
| Income before provision for income taxes | 5,803 | 3,740 | 2,063 | 55.2 | % | ||||||||
| Provision for income tax | 1,827 | 1,102 | 725 | 65.8 | % | ||||||||
| Net income | $ | 3,976 | $ | 2,638 | $ | 1,338 | 50.7 | % | |||||
| Net income available to common shareholders | $ | 3,909 | $ | 2,589 | $ | 1,320 | 51.0 | % | |||||
| Earnings per share | |||||||||||||
| Basic earnings per share | $ | 0.71 | $ | 0.52 | $ | 0.19 | 37.5 | % | |||||
| Diluted earnings per share | $ | 0.71 | $ | 0.51 | $ | 0.20 | 40.4 | % | |||||
| Average shares outstanding | 5,488,160 | 5,012,604 | 475,556 | 9.5 | % | ||||||||
| Diluted average shares outstanding | 5,530,697 | 5,118,471 | 412,226 | 8.1 | % | ||||||||
| PRIVATE BANCORP OF AMERICA, INC. | ||||||||||||||||||||||||||||
| Consolidated average balance sheet, interest, yield and rates | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||||||||||
| June 30, 2020 | March 31, 2020 | June 30, 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 | $ | 231,621 | $ | 91 | 0.16 | % | $ | 104,156 | $ | 304 | 1.17 | % | $ | 23,651 | $ | 126 | 2.14 | % | ||||||||||
| Investment securities | 38,539 | 251 | 2.61 | % | 54,456 | 401 | 2.95 | % | 89,102 | 601 | 2.70 | % | ||||||||||||||||
| Loans | 1,008,220 | 13,293 | 5.30 | % | 881,655 | 13,129 | 5.99 | % | 748,846 | 11,442 | 6.13 | % | ||||||||||||||||
| Total interest-earning assets | 1,278,380 | 13,635 | 4.29 | % | 1,040,267 | 13,834 | 5.35 | % | 861,599 | 12,169 | 5.67 | % | ||||||||||||||||
| Noninterest-earning assets | 15,104 | 47,975 | 35,521 | |||||||||||||||||||||||||
| Total Assets | $ | 1,293,484 | $ | 1,088,242 | $ | 897,120 | ||||||||||||||||||||||
| Interest-Bearing Liabilities | ||||||||||||||||||||||||||||
| Interest-bearing transaction accounts | $ | 73,509 | $ | 26 | 0.14 | % | $ | 83,471 | $ | 165 | 0.80 | % | $ | 33,191 | $ | 66 | 0.80 | % | ||||||||||
| Money market | 394,523 | 476 | 0.49 | % | 391,262 | 973 | 1.00 | % | 320,310 | 720 | 0.90 | % | ||||||||||||||||
| Savings deposits | 8,863 | 2 | 0.09 | % | 9,212 | 6 | 0.26 | % | 6,779 | 5 | 0.30 | % | ||||||||||||||||
| Certificates of deposit | 126,545 | 852 | 2.71 | % | 113,964 | 566 | 2.00 | % | 98,004 | 549 | 2.25 | % | ||||||||||||||||
| Total Interest-Bearing Deposits | 603,440 | 1,356 | 0.90 | % | 597,909 | 1,710 | 1.27 | % | 458,284 | 1,340 | 1.17 | % | ||||||||||||||||
| FHLB advances | 100,385 | 387 | 1.55 | % | 63,394 | 317 | 2.01 | % | 65,797 | 423 | 2.58 | % | ||||||||||||||||
| Other borrowings | 17,934 | 272 | 6.07 | % | 17,933 | 272 | 6.07 | % | 14,711 | 313 | 8.29 | % | ||||||||||||||||
| Total Interest-Bearing Liabilities | 118,319 | 659 | 2.24 | % | 81,327 | 589 | 3.05 | % | 80,508 | 736 | 3.67 | % | ||||||||||||||||
| Noninterest-bearing deposits | 458,631 | 298,418 | 260,295 | |||||||||||||||||||||||||
| Total Funding Sources | 1,180,390 | 2,015 | 0.69 | % | 977,654 | 2,299 | 0.95 | % | 799,087 | 2,076 | 1.04 | % | ||||||||||||||||
| Noninterest-bearing liabilities | 12,964 | 13,022 | 11,069 | |||||||||||||||||||||||||
| Shareholders' equity | 100,130 | 97,566 | 86,964 | |||||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 1,293,484 | $ | 1,088,242 | $ | 897,120 | ||||||||||||||||||||||
| Net interest spread | 3.60 | % | 4.40 | % | 4.62 | % | ||||||||||||||||||||||
| Net interest income | $ | 11,620 | $ | 11,535 | $ | 10,093 | ||||||||||||||||||||||
| Net interest margin | 3.66 | % | 4.46 | % | 4.70 | % | ||||||||||||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | |||||||||||||||||||
| Condensed Balance Sheets | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||||||
| Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |||||||||||||||
| Assets | |||||||||||||||||||
| Cash and due from banks | $ | 205,004 | $ | 226,910 | $ | 111,368 | $ | 90,108 | $ | 45,338 | |||||||||
| Investment securities | 27,664 | 49,327 | 51,179 | 73,171 | 84,719 | ||||||||||||||
| Loans | 1,026,509 | 894,076 | 885,556 | 820,989 | 795,345 | ||||||||||||||
| Allowance for loan losses | (11,100 | ) | (9,598 | ) | (8,601 | ) | (7,893 | ) | (7,637 | ) | |||||||||
| Net loans | 1,015,409 | 884,478 | 876,955 | 813,096 | 787,708 | ||||||||||||||
| Right of use asset | 5,632 | 6,022 | 6,452 | 6,877 | 7,271 | ||||||||||||||
| Premises and equipment, net | 3,055 | 3,052 | 3,165 | 2,947 | 2,669 | ||||||||||||||
| Other assets and interest receivable | 17,248 | 16,092 | 16,868 | 13,786 | 12,842 | ||||||||||||||
| Total assets | $ | 1,274,012 | $ | 1,185,881 | $ | 1,065,987 | $ | 999,985 | $ | 940,547 | |||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||
| Liabilities | |||||||||||||||||||
| Noninterest Bearing | $ | 452,155 | $ | 355,225 | $ | 268,116 | $ | 266,205 | $ | 247,153 | |||||||||
| Interest Bearing | 584,451 | 607,062 | 582,139 | 557,800 | 485,011 | ||||||||||||||
| Total Deposits | 1,036,606 | 962,287 | 850,255 | 824,005 | 732,164 | ||||||||||||||
| Borrowings | 122,936 | 112,934 | 107,932 | 72,930 | 99,929 | ||||||||||||||
| Accrued interest payable and other liabilities | 14,097 | 12,497 | 12,120 | 9,779 | 10,599 | ||||||||||||||
| Total liabilities | 1,173,639 | 1,087,718 | 970,307 | 906,714 | 842,692 | ||||||||||||||
| Shareholders' equity | |||||||||||||||||||
| Common stock | 69,512 | 69,165 | 69,159 | 68,804 | 68,740 | ||||||||||||||
| Additional paid-in capital | 3,002 | 3,254 | 3,048 | 2,997 | 2,823 | ||||||||||||||
| Retained earnings | 26,984 | 24,839 | 22,905 | 20,917 | 25,997 | ||||||||||||||
| Accumulated other comprehensive income | 875 | 905 | 568 | 553 | 295 | ||||||||||||||
| Total shareholders' equity | 100,373 | 98,163 | 95,680 | 93,271 | 97,855 | ||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,274,012 | $ | 1,185,881 | $ | 1,065,987 | $ | 999,985 | $ | 940,547 | |||||||||
| Book value per common share | $ | 17.99 | $ | 17.57 | $ | 17.15 | $ | 16.84 | $ | 17.60 | |||||||||
| Tangible book value per common share | $ | 17.76 | $ | 17.35 | $ | 16.96 | $ | 16.66 | $ | 17.44 | |||||||||
| Regulatory Capital Ratios (PBAM) 1 | |||||||||||||||||||
| Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |||||||||||||||
| Tier 1 leverage ratio | 7.57 | % | 8.79 | % | 9.17 | % | 9.54 | % | 10.69 | % | |||||||||
| Tier 1 risk-based capital ratio | 9.66 | % | 9.20 | % | 9.86 | % | 10.24 | % | 11.10 | % | |||||||||
| Common equity Tier 1 ratio | 9.66 | % | 9.20 | % | 9.86 | % | 10.24 | % | 11.10 | % | |||||||||
| Total risk-based capital ratio | 12.60 | % | 11.91 | % | 12.71 | % | 13.09 | % | 14.10 | % | |||||||||
| Tangible equity / tangible assets | 7.79 | % | 8.18 | % | 8.88 | % | 9.24 | % | 10.32 | % | |||||||||
| 1 Preliminary ratios for June 30, 2020 | |||||||||||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | ||||||||||||||||||||
| Condensed Statements of Income | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||||
| Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||||||||||
| Interest income | $ | 13,635 | $ | 13,834 | $ | 13,472 | $ | 13,222 | $ | 12,169 | ||||||||||
| Interest expense | 2,015 | 2,299 | 2,400 | 2,253 | 2,076 | |||||||||||||||
| Net interest income | 11,620 | 11,535 | 11,072 | 10,969 | 10,093 | |||||||||||||||
| Provision for loan losses | 1,511 | 997 | 708 | 9,737 | 996 | |||||||||||||||
| Net interest income after provision for loan losses | 10,109 | 10,538 | 10,364 | 1,232 | 9,097 | |||||||||||||||
| Noninterest income | 1,378 | 1,146 | 1,021 | 584 | 606 | |||||||||||||||
| Salary and employee benefits | 5,790 | 5,552 | 5,427 | 6,341 | 5,892 | |||||||||||||||
| Occupancy and equipment | 900 | 884 | 832 | 793 | 641 | |||||||||||||||
| Data processing | 561 | 518 | 631 | 588 | 490 | |||||||||||||||
| Professional services | 628 | 859 | 726 | 639 | 364 | |||||||||||||||
| Other expenses | 827 | 848 | 946 | 570 | 854 | |||||||||||||||
| Total noninterest expense | 8,706 | 8,661 | 8,562 | 8,931 | 8,241 | |||||||||||||||
| Income (loss) before provision for income taxes | 2,781 | 3,023 | 2,823 | (7,115 | ) | 1,462 | ||||||||||||||
| Income taxes | 711 | 1,116 | 857 | (2,081 | ) | 411 | ||||||||||||||
| Net income (loss) | $ | 2,070 | $ | 1,907 | $ | 1,966 | $ | (5,034 | ) | $ | 1,051 | |||||||||
| Net income (loss) available to common shareholders | $ | 2,038 | $ | 1,874 | $ | 1,931 | $ | (4,950 | ) | $ | 1,031 | |||||||||
| Earnings (loss) per share | ||||||||||||||||||||
| Basic earnings (loss) per share | $ | 0.37 | $ | 0.34 | $ | 0.36 | $ | (0.91 | ) | $ | 0.21 | |||||||||
| Diluted earnings (loss) per share | $ | 0.37 | $ | 0.34 | $ | 0.35 | $ | (0.89 | ) | $ | 0.20 | |||||||||
| Average shares outstanding | 5,435,155 | 5,488,197 | 5,414,056 | 5,465,278 | 5,027,437 | |||||||||||||||
| Diluted average shares outstanding | 5,453,597 | 5,555,376 | 5,492,930 | 5,563,931 | 5,133,305 | |||||||||||||||
| Performance Ratios | ||||||||||||||||||||
| Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||||||||||
| ROAA | 0.64 | % | 0.70 | % | 0.77 | % | -2.06 | % | 0.47 | % | ||||||||||
| ROAE | 8.31 | % | 7.86 | % | 8.53 | % | -20.30 | % | 4.85 | % | ||||||||||
| ROTE | 8.42 | % | 7.96 | % | 8.01 | % | -20.50 | % | 4.90 | % | ||||||||||
| Net interest margin | 3.66 | % | 4.46 | % | 4.47 | % | 4.67 | % | 4.70 | % | ||||||||||
| Net interest spread | 3.60 | % | 4.40 | % | 4.40 | % | 4.59 | % | 4.62 | % | ||||||||||
| Efficiency ratio | 66.98 | % | 68.30 | % | 70.80 | % | 77.30 | % | 77.03 | % | ||||||||||
| Noninterest expense / average assets | 2.71 | % | 3.20 | % | 3.33 | % | 3.65 | % | 3.68 | % | ||||||||||
| Average assets | $ | 1,293,484 | $ | 1,088,242 | $ | 1,018,944 | $ | 970,864 | $ | 897,120 | ||||||||||
| 4.021978022 | 4.021978022 | 3.967391304 | 3.967391304 | 4.010989011 | ||||||||||||||||
| Salary and employee benefits | 1.80 | % | 2.05 | % | 2.11 | % | 2.59 | % | 2.63 | % | ||||||||||
| Occupancy and equipment | 0.28 | % | 0.33 | % | 0.32 | % | 0.32 | % | 0.29 | % | ||||||||||
| Data processing | 0.17 | % | 0.19 | % | 0.25 | % | 0.24 | % | 0.22 | % | ||||||||||
| Professional services | 0.20 | % | 0.32 | % | 0.28 | % | 0.26 | % | 0.16 | % | ||||||||||
| Other expenses | 0.26 | % | 0.31 | % | 0.37 | % | 0.23 | % | 0.38 | % | ||||||||||
| 2.71 | % | 3.20 | % | 3.33 | % | 3.65 | % | 3.68 | % | |||||||||||
| PRIVATE BANCORP OF AMERICA, INC. | ||||||||||||||||||||
| Average Balances | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||||||||||
| Total assets | $ | 1,293,484 | $ | 1,088,242 | $ | 1,018,944 | $ | 970,864 | $ | 897,120 | ||||||||||
| Earning assets | $ | 1,278,380 | $ | 1,040,267 | $ | 982,032 | $ | 931,781 | $ | 861,599 | ||||||||||
| Total loans | $ | 1,008,220 | $ | 881,655 | $ | 845,199 | $ | 816,281 | $ | 748,846 | ||||||||||
| Total deposits | $ | 1,062,071 | $ | 896,327 | $ | 842,229 | $ | 778,821 | $ | 718,579 | ||||||||||
| Total equity | $ | 100,130 | $ | 97,566 | $ | 91,464 | $ | 98,391 | $ | 86,964 | ||||||||||
| Loan Balances by Type | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||||||||||
| Real estate - investor owned | $ | 234,806 | $ | 246,026 | $ | 245,658 | $ | 247,953 | $ | 245,068 | ||||||||||
| Real estate - owner occupied | 240,587 | 234,771 | 225,778 | 192,739 | 175,112 | |||||||||||||||
| Real estate - multifamily | 66,431 | 67,550 | 68,308 | 68,536 | 67,839 | |||||||||||||||
| Real estate - single family | 57,521 | 58,429 | 59,487 | 59,782 | 56,783 | |||||||||||||||
| Commercial business | 385,329 | 245,610 | 243,438 | 204,166 | 201,892 | |||||||||||||||
| Land and construction | 26,327 | 27,044 | 32,151 | 37,918 | 37,966 | |||||||||||||||
| Consumer | 8,046 | 7,300 | 6,172 | 5,585 | 7,035 | |||||||||||||||
| Total loans held for investment | 1,019,047 | 886,730 | 880,992 | 816,679 | 791,695 | |||||||||||||||
| Loans held for sale | 7,462 | 7,346 | 4,564 | 4,310 | 3,650 | |||||||||||||||
| Total loans, including loans held for sale | 1,026,509 | 894,076 | 885,556 | 820,989 | 795,345 | |||||||||||||||
| Allowance for loan losses | (11,100 | ) | (9,598 | ) | (8,601 | ) | (7,893 | ) | (7,637 | ) | ||||||||||
| Net loans | $ | 1,015,409 | $ | 884,478 | $ | 876,955 | $ | 813,096 | $ | 787,708 | ||||||||||
| Deposits by Type | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||||||||||
| Non interest bearing DDA | $ | 452,155 | $ | 355,225 | $ | 268,116 | $ | 266,205 | $ | 247,153 | ||||||||||
| Interest bearing DDA | 63,805 | 108,368 | 112,397 | 47,805 | 29,583 | |||||||||||||||
| Savings & MMA | 427,685 | 366,109 | 350,563 | 394,128 | 363,803 | |||||||||||||||
| Retail CD | 8,493 | 8,484 | 6,989 | 7,132 | 7,025 | |||||||||||||||
| Jumbo CD | 84,468 | 124,101 | 112,190 | 108,735 | 84,600 | |||||||||||||||
| Total deposits | $ | 1,036,606 | $ | 962,287 | $ | 850,255 | $ | 824,005 | $ | 732,164 | ||||||||||
| Asset Quality | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||||||||||||||||
| Total Loans | $ | 1,026,509 | $ | 894,076 | $ | 885,556 | $ | 820,989 | $ | 795,345 | ||||||||||
| 30-89 day past due loans | $ | - | $ | 297 | $ | - | $ | - | $ | 155 | ||||||||||
| 90+ day past due loans | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
| Nonaccrual loans | $ | - | $ | 663 | $ | - | $ | - | $ | - | ||||||||||
| NPAs / Assets | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
| NPLs / loans & OREO | 0.00 | % | 0.07 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
| Net quarterly charge-offs | $ | - | $ | - | $ | - | $ | 9,481 | $ | - | ||||||||||
| Net charge-offs/avg loans (annualized) | 0.00 | % | 0.00 | % | 0.00 | % | 4.65 | % | 0.00 | % | ||||||||||
| Allowance for loan losses to loans | 1.08 | % | 1.07 | % | 0.97 | % | 0.96 | % | 0.96 | % | ||||||||||
| Allowance for loan losses to nonaccrual loans | NM | 1447.66 | % | NM | NM | NM | ||||||||||||||