Private Bancorp of America, Inc. Announces Record Fourth Quarter and Full Year 2021 Financial Results With Total Assets of $1.5 Billion

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Private Bancorp of America (PBAM) reported strong financial results for Q4 2021, with net income rising to $7.3 million ($1.28 per diluted share), up from $5.1 million in Q3 2021. For FY 2021, net income doubled to $21.0 million compared to $10.9 million in FY 2020. Total loans increased by 26.9% to $1.2 billion, while non-interest-bearing demand deposits grew by 28.4%. The net interest margin reached 4.44% and tangible book value per share rose to $22.26, a 4.7% increase. The company remains well-capitalized with a Tier 1 risk-based capital ratio of 10.63%.

Positive

Net income for Q4 increased 43.1% from Q3 2021.
Full year 2021 net income increased 93.1% YoY.
Total loans held-for-investment increased 26.9% compared to FY 2020.
Tangible book value per share rose 17.5% YoY.

Negative

Provision for loan losses increased by $401 thousand in Q4 due to organic loan growth and economic uncertainty.
Non-interest expenses remain elevated due to ongoing legal cases.

01/21/2022 - 09:00 AM

Fourth Quarter Highlights

Net income for the quarter was $7.3 million, compared to $5.1 million for Q3’21 and $4.4 million in Q4’20
Diluted earnings per share of $1.28, compared to $0.89 for Q3’21 and $0.78 per share in Q4’20.
Net interest margin of 4.44%, compared to 4.39% for Q3’21
Cost of funding sources was 0.19%, compared to 0.22% for Q3’21
Total loans held-for-investment (“HFI”), excluding PPP loans, increased $70.7 million, up 6.3% to $1.2 billion
Non-interest-bearing demand deposits grew $36.4 million to $682.6 million, representing 50.7% of total deposits
Allowance for Loan Losses remained strong at 1.39% of total loans HFI
Tangible book value per share of $22.26, up $0.99 per share or 4.7% from Q3’21
Well capitalized Tier 1 risk-based capital ratio of 10.63% (preliminary)

2021 Full Year Highlights

Net income of $21.0 million, compared to $10.9 million for FY’20, an increase of 93.1%
Diluted earnings per share of $3.69, compared to $1.94 for FY’20, an increase of 90.4%
Pre-provision net revenue of $32.6 million, compared to $21.3 million for FY’20, representing a 52.6% increase
Return on average assets of 1.48%, compared to 0.89% for FY’20and return on average equity of 17.77%, compared to 10.70% for FY’20
Net interest margin of 4.19%, compared to 4.15% for FY’20
Total assets increased to $1.5 billion, representing an increase of 14.0% over FY’20.
Total loans HFI, excluding PPP loans, increased $252.1 million to $1.2 billion or 26.9% compared to FY’20
Non-interest-bearing demand deposits increased $150.9 million or 28.4% compared to FY’20
Tangible book value per share increased $3.31 or 17.5% compared to FY’20

LA JOLLA, Calif., Jan. 21, 2022 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM), (“Company”) and CalPrivate Bank (“Bank”) announced unaudited financial results for the fourth quarter ending December 31, 2021. The Company reported net income of $7.3 million, or $1.28 per diluted share, for the fourth quarter of 2021 compared to $5.1 million, or $0.89 per diluted share for the third quarter of 2021. Net income for the twelve months ending December 31, 2021, was $21.0 million, or $3.69 per diluted share, compared to $10.9 million or $1.94 per diluted share in FY’20.

Rick Sowers, President and CEO of the Company and the Bank stated, “In the face of a challenging environment with a global pandemic that continues to strain many sectors of our economy, our fourth quarter results attest to the resilience of our CalPrivate Bank franchise. Our Distinctly Different service model allows us to focus our Team on delivering value to our Clients. The fourth quarter continued to reflect our strong organic loan production capabilities through building Customized Solutions for our Clients. We believe this approach has positioned us well to participate in the economic recovery we expect to see in 2022.”

Sowers continued, “We continue to make progress in improving our operating leverage: we grew loans, core deposits, and capital to record levels; and we are making progress on streamlining our internal processes. We remain excited about the implementation of new technologies including the nCino Bank Operating System that we expect will provide us additional insight into our Client relationships and result in enhanced productivity.”

“PBAM’s fourth quarter of 2021 demonstrated our agility and approach to serving our core markets. The Company’s strategy to grow commercial and private banking loans and expand relationships continued to be demonstrated in the fourth quarter. The dedication of our Team, and the tremendous success we have been able to achieve for our Clients and Stakeholders is impressive,” said Selwyn Isakow, Chairman of the Board of the Company and the Bank.

Isakow added, “Given the strength of our core Southern California market and our already solid foundation, we have a significant opportunity to strategically drive growth in our portfolio. Building on CalPrivate’s momentum over the past year positions us well to deliver solid shareholder returns in 2022.”

STATEMENT OF INCOME

Net Interest Income

Net interest income for the fourth quarter totaled $16.7 million, representing an increase of $972 thousand or 6.2% compared to the third quarter of 2021. The increase in net interest income for the quarter was primarily due to increases in organic non-PPP loan balances. PPP interest and fee income was $1.4 million in Q4’21, compared to $1.5 million in Q3’21. Interest expense on deposits decreased $56 thousand in Q4’21 vs Q3’21. The fourth quarter decrease in funding costs was due to the strategic reduction of deposit costs.

Net interest income for the full year totaled $58.8 million representing an increase of $8.5 million, or 17.0% compared to FY’20. The increase was due to higher average loan balances, increased SBA PPP loan income and lower cost of funds, partially offset by prepayment penalties in 2021 totaling $1.2 million as a result of proactively prepaying high priced FHLB term advances.

Net Interest Margin

The net interest margin for the fourth quarter was 4.44% (4.23% excluding PPP loans) compared to 4.39% (4.27% excluding PPP loans) for the third quarter. The 5bps increase in the net interest margin for the quarter was due to higher core loan yields and lower funding costs for the quarter. Average portfolio loan yields were 5.50%, compared to 5.38% for Q3’21. The yield on earning assets for the fourth quarter was 4.62% compared with 4.60% for the third quarter.

The net interest margin for the full year 2021 was 4.19% (4.10% excluding PPP) compared with 4.15% (4.09% excluding PPP) for the prior year 2020. The increase in the net interest margin was due to lower deposit costs offset with higher borrowing costs related to the pre-payment of FHLB advances. The costs of funds in the full year 2021 was 0.35% compared to 0.62% in FY’20. In the first half of 2021, the Bank prepaid FHLB term advances and recorded $1.2 million in prepayment expense.

Provision for Loan Losses

The provision for loan losses for the fourth quarter was $834 thousand, an increase of $401 thousand compared to the third quarter. The driver for the fourth quarter provision was organic growth in the loan portfolio. While the economy continued to recover in the fourth quarter, new COVID-19 variants have created uncertainty, and this is reflected in our total loan loss provision to total loans HFI of 1.39% or 1.40% excluding PPP loans.

Non-Interest Income

Non-interest income was $4.3 million for the fourth quarter, representing a $1.9 million increase, or 78.5% increase compared to the third quarter of 2021. The increase in non-interest income was primarily due to an outsized increase in SBA loans sales during the fourth quarter. This increase was the result of a change in the SBA servicing provider which caused a delay in the sale of loans during Q3’21. SBA loan sales for the fourth quarter were $36.0 million with a 12.9% trade premium compared with $15.6 million with a 14.5% trade premium in the third quarter. The Company had $24.7 million of loans held for sale at December 31, 2021, down from $35.4 million in the third quarter. Total non-interest income increased $6.2 million or 122.3% year over year.

Non-Interest Expense

Non-interest expense was $9.8 million for the fourth quarter representing a $625 thousand or 6% decline compared to the third quarter of 2021. As a result of CalPrivate’s prior quarter decision to empower employees with the choice to work remotely, the Bank consolidated one of its administrative locations, resulting in reduced occupancy expenses.

Professional services and other expenses continue to remain at elevated levels given on-going legal and related expenses associated with the ANI Development, LLC, and Gina Champion-Cain fraud recovery cases. We continue to pursue recovery opportunities that could positively impact earnings and tangible book value per share in future quarters. Additionally, as the Bank continues to grow and has encountered a challenging labor market, we have engaged with some staffing agencies to provide temporary additional high-quality resources.

STATEMENT OF FINANCIAL CONDITION

Balance Sheet

At December 31, 2021, the Company reported total assets of $1.5 billion representing an increase of $41.5 million or 2.8% compared to the third quarter of 2021. The increase in assets for the quarter was due to increases in loans and investment securities supported by additional growth in core deposits. Total loans HFI increased $32.0 million during the quarter, up 2.7%; excluding PPP loans, total loans increased $70.6 million, up 6.3%. Total deposits were $1.3 billion representing an increase of $32.4 million, or 2.5%, compared to the third quarter. Total non-interest-bearing deposits represented 50.7% of total deposits at December 31, 2021. Additionally, during the quarter, the bank judiciously grew the securities portfolio to $102.1 million, an increase of $9.0 million from the prior quarter.

Asset Quality and Loan Deferrals

The Allowance for Loan Losses increased $834 thousand to $17.0 million in the quarter with a resulting coverage ratio of 1.39% of total loans outstanding, including PPP loans. The increase in the Allowance for Loan Losses was primarily due to non-PPP organic loan growth and qualitative factors related to the general economic outlook in the markets we serve.

As of December 31, 2021, there were no doubtful credits or charge offs and Classified assets totaled $13.4 million. Total classified assets consisted of 12 loans, of which 5 loans totaling $7.9 million were secured by real estate with a weighted average LTV of 47%. In addition, all loans that were previously granted payment deferrals related to COVID-19 have resumed their contractual payments.

Capital Ratios (1)

The Company and the Bank’s capital ratios were in excess of the levels established for “well capitalized” institutions and are as follows:

	Dec 31, 2021 ₍₁₎		Sep 30, 2021		Dec 31, 2020
Private Bancorp of America
Tier I leverage ratio	8.42	%	8.19	%	8.52	%
Tier I risk-based capital ratio	10.63	%	10.64	%	11.20	%
Total risk-based capital ratio	13.38	%	13.48	%	14.36	%

CalPrivate Bank
Tier I leverage ratio	9.29	%	9.21	%	9.73	%
Tier I risk-based capital ratio	11.73	%	11.69	%	12.79	%
Total risk-based capital ratio	12.98	%	12.94	%	14.05	%

(1) December 31, 2021, capital ratios are preliminary

Stock Repurchase Program

Since announcing the stock repurchase program in July 2021, the Company has not repurchased any shares of its common stock. The remaining number of shares authorized to be repurchased under this program at December 31, 2021, was 75,000 shares.

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 Contacts

Rick Sowers
President and Chief Executive Officer
Private Bancorp of America, Inc., and CalPrivate Bank
(424) 303-4894

Mag Wangsuwana
Executive Vice President and Chief Financial Officer
Private Bancorp of America, Inc., and CalPrivate Bank
(424) 348-2145

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, 2021			September 30, 2021			Dollar change			Percentage change		December 31, 2020			Dollar change			Percentage change
Assets
Cash and due from banks	$	12,336		$	12,570		$	(234	)	1.9	%	$	8,040		$	4,296		5.4	%
Interest-bearing deposits in other financial institutions		39,663			2,736			36,927		1349.7	%		7,309			32,354		442.7	%
Interest-bearing deposits at Federal Reserve Bank		97,086			123,247			(26,161	)	-21.2	%		260,876			(163,790	)	-62.8	%
Total cash and due from banks		149,085			138,553			10,532		7.6	%		276,225			(127,140	)	-46.0	%
Interest-bearing time deposits with other institutions		5,760			5,760			-		0.0	%		5,760			-		0.0	%
Investment securities available for sale		102,116			93,099			9,017		9.7	%		26,086			76,030		291.5	%
Loan held for sale		24,658			35,448			(10,790	)	-30.4	%		9,687			14,971		154.5	%
Total loans held-for-investment		1,224,151			1,192,135			32,016		2.7	%		998,870			225,287		22.6	%
Allowance for loan losses		(16,975	)		(16,141	)		(834	)	5.2	%		(14,262	)		(2,712	)	19.0	%
Net loans		1,207,176			1,175,994			31,182		2.7	%		984,608			222,575		22.6	%
Federal Home Loan Bank stock, at cost		4,909			4,909			-		0.0	%		4,602			307		6.7	%
Right of use asset		3,760			4,115			(355	)	-8.7	%		5,990			(2,231	)	-37.2	%
Premises and equipment, net		2,294			2,459			(165	)	-6.7	%		2,649			(355	)	-13.4	%
Other intangible assets		3,079			2,374			705		29.7	%		1,602			1,477		92.2	%
Deferred tax asset		6,258			6,256			2		0.0	%		5,982			276		4.6	%
Accrued interest receivable		3,355			3,404			(49	)	-1.5	%		3,540			(186	)	-5.3	%
Other assets		3,684			2,311			1,373		59.2	%		3,009			670		22.3	%
Total assets	$	1,516,134		$	1,474,682		$	41,452		2.8	%	$	1,329,740		$	186,394		14.0	%

Liabilities and Shareholders' Equity

Liabilities
Noninterest bearing	$	682,589		$	646,233		$	36,356		5.6	%	$	531,732		$	150,857		28.4	%
Interest Bearing		663,074			667,012			(3,938	)	-0.6	%		581,216			81,858		14.1	%
Total deposits		1,345,663			1,313,245			32,418		2.5	%		1,112,948			232,715		20.9	%
FHLB borrowings		10,000			10,000			-		0.0	%		75,000			(65,000	)	-86.7	%
Other borrowings		17,947			17,945			2		0.0	%		17,939			8		0.0	%
Accrued interest payable and other liabilities		14,160			11,613			2,547		21.9	%		16,100			(1,940	)	-12.0	%
Total liabilities		1,387,770			1,352,803			34,967		2.6	%		1,221,987			165,783		13.6	%

Shareholders' equity
Common stock		70,850			70,470			380		0.5	%		69,557			1,293		1.9	%
Additional paid-in capital		3,343			3,465			(122	)	-3.5	%		3,496			(153	)	-4.4	%
Retained earnings		54,922			47,845			7,077		14.8	%		33,904			21,018		62.0	%
Accumulated other comprehensive (loss) income		(751	)		99			(850	)	-858.6	%		796			(1,547	)	-194.3	%
Total stockholders' equity		128,364			121,879			6,485		5.3	%		107,753			20,611		19.1	%

Total liabilities and stockholders' equity	$	1,516,134		$	1,474,682		$	41,452		2.8	%	$	1,329,740		$	186,394		14.0	%

PRIVATE BANCORP OF AMERICA, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share amounts)

	For the three months ended
	December 31, 2021		September 30, 2021		Dollar change			Percentage change		December 31, 2020		Dollar change			Percentage change
Interest Income
Loans	$	16,941	$	16,068	$	873		5.4	%	$	15,540	$	1,401		9.0	%
Investment securities		352		330		22		6.7	%		245		107		43.7	%
Deposits in other financial institutions		63		60		3		5.0	%		41		22		53.7	%
Total interest income		17,356		16,458		898		5.5	%		15,826		1,530		9.7	%

Interest Expense
Deposits		353		409		(56	)	-13.7	%		596		(243	)	-40.8	%
Borrowings		314		332		(18	)	-5.4	%		613		(299	)	-48.8	%
Total interest expense		667		741		(74	)	-10.0	%		1,209		(542	)	-44.8	%

Net interest income		16,689		15,717		972		6.2	%		14,617		2,072		14.2	%
Provision for loan losses		834		433		401		92.6	%		1,579		(745	)	-47.2	%
Net interest income after provision for loan losses		15,855		15,284		571		3.7	%		13,038		2,817		21.6	%

Noninterest income:
Service charges on deposit accounts		254		236		18		7.6	%		196		58		29.6	%
Net gain on sale of loans		3,670		1,837		1,833		99.8	%		1,170		2,500		213.7	%
Gain on sale of investment securities		-		-		-		NM			-		-		NM
Other noninterest income		341		316		25		7.9	%		270		71		26.3	%
Total noninterest income		4,265		2,389		1,876		78.5	%		1,636		2,629		160.7	%

Noninterest expense:
Salary and employee benefits		6,492		6,595		(103	)	-1.6	%		5,293		1,199		22.7	%
Occupancy and equipment		741		1,484		(743	)	-50.1	%		774		(33	)	-4.3	%
Data processing		703		799		(96	)	-12.0	%		624		79		12.7	%
Professional services		843		552		291		52.7	%		949		(106	)	-11.2	%
Other expenses		1,060		1,034		26		2.5	%		780		280		35.9	%
Total noninterest expense		9,839		10,464		(625	)	-6.0	%		8,420		1,419		16.9	%

Income before provision for income taxes		10,281		7,209		3,072		42.6	%		6,254		4,027		64.4	%
Provision for income taxes		2,986		2,158		828		38.4	%		1,874		1,112		59.3	%
Net income	$	7,295	$	5,051	$	2,244		44.4	%	$	4,380	$	2,915		66.6	%
Net income available to common shareholders	$	7,204	$	4,984	$	2,220		44.5	%	$	4,307	$	2,897		67.3	%

Earnings per share
Basic earnings per share	$	1.30	$	0.90	$	0.40		44.4	%	$	0.78	$	0.52		66.7	%
Diluted earnings per share	$	1.28	$	0.89	$	0.39		43.8	%	$	0.78	$	0.50		64.1	%

Average shares outstanding		5,547,422		5,543,403		4,019		0.1	%		5,501,272		46,150		0.8	%
Diluted average shares outstanding		5,638,186		5,629,900		8,286		0.1	%		5,540,232		97,954		1.8	%

PRIVATE BANCORP OF AMERICA, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share amounts)

	For the twelve months ended
	December 31, 2021		December 31, 2020		Dollar change			Percentage change
Interest Income
Loans	$	61,806	$	55,539	$	6,267		11.3	%
Investment securities		1,338		1,128		210		18.6	%
Deposits in other financial institutions		221		487		(266	)	-54.6	%
Total interest income		63,365		57,154		6,211		10.9	%

Interest Expense
Deposits		1,689		4,369		(2,680	)	-61.3	%
Borrowings		2,885		2,517		368		14.6	%
Total interest expense		4,574		6,886		(2,312	)	-33.6	%

Net interest income		58,791		50,268		8,523		17.0	%
Provision for loan losses		2,713		5,670		(2,957	)	-52.2	%
Net interest income after provision for loan losses		56,078		44,598		11,480		25.7	%

Noninterest income:
Service charges on deposit accounts		945		654		291		44.5	%
Net gain on sale of loans		9,309		2,614		6,695		256.1	%
Gain on sale of investment securities		-		751		(751	)	-100.0	%
Other noninterest income		1,077		1,078		(1	)	-0.1	%
Total noninterest income		11,331		5,097		6,234		122.3	%

Noninterest expense:
Salary and employee benefits		24,278		22,000		2,278		10.4	%
Occupancy and equipment		3,855		3,422		433		12.7	%
Data processing		2,827		2,345		482		20.6	%
Professional services		2,837		2,951		(114	)	-3.9	%
Other expenses		3,749		3,302		447		13.5	%
Total noninterest expense		37,546		34,020		3,526		10.4	%

Income before provision for income taxes		29,863		15,675		14,188		90.5	%
Provision for income tax		8,833		4,784		4,049		84.6	%
Net income	$	21,030	$	10,891	$	10,139		93.1	%
Net income available to common shareholders	$	20,746	$	10,710	$	10,036		93.7	%

Earnings per share
Basic earnings per share	$	3.75	$	1.95	$	1.80		92.3	%
Diluted earnings per share	$	3.69	$	1.94	$	1.75		90.2	%

Average shares outstanding		5,535,581		5,494,423		41,158		0.7	%
Diluted average shares outstanding		5,617,017		5,527,284		89,733		1.6	%

	PRIVATE BANCORP OF AMERICA, INC.
	Consolidated average balance sheet, interest, yield and rates
	(Unaudited)
	(Dollars in thousands)

	For the three months ended
	December 31, 2021						September 30, 2021						December 31, 2020
	Average Balance		Interest		Average Yield/Rate		Average Balance		Interest		Average Yield/Rate		Average Balance		Interest		Average Yield/Rate
Interest-Earnings Assets:
Deposits in other financial institutions	$	171,279	$	63	0.15	%	$	142,647	$	60	0.17	%	$	189,856	$	41	0.09	%
Investment securities		96,722		351	1.45	%		92,458		330	1.43	%		30,238		245	3.24	%
Loans		1,222,234		16,942	5.50	%		1,185,865		16,068	5.38	%		1,005,712		15,540	6.15	%
Total interest-earning assets		1,490,235		17,356	4.62	%		1,420,970		16,458	4.60	%		1,225,806		15,826	5.14	%
Noninterest-earning assets		24,348						21,308						8,805
Total Assets	$	1,514,583					$	1,442,278					$	1,234,611

Interest-Bearing Liabilities
Interest-bearing transaction accounts	$	74,158	$	14	0.07	%	$	68,618	$	14	0.08	%	$	56,867	$	17	0.12	%
Money market		504,171		202	0.16	%		493,289		245	0.20	%		400,764		270	0.27	%
Savings deposits		10,602		3	0.11	%		9,639		3	0.12	%		8,617		3	0.14	%
Certificates of deposit		68,408		134	0.78	%		68,761		147	0.85	%		98,225		306	1.24	%
Total Interest-Bearing Deposits		657,339		353	0.21	%		640,307		409	0.25	%		564,473		596	0.42	%

FHLB advances		10,000		42	1.67	%		14,783		60	1.61	%		77,348		341	1.75	%
Other borrowings		17,945		272	6.06	%		17,944		272	6.06	%		17,938		272	6.07	%
Total Interest-Bearing Liabilities		27,945		314	4.46	%		32,727		332	4.02	%		95,286		613	2.56	%

Noninterest-bearing deposits		689,438						636,042						452,916
Total Funding Sources		1,374,722		667	0.19	%		1,309,076		741	0.22	%		1,112,675		1,209	0.43	%

Noninterest-bearing liabilities		12,474						12,584						15,062
Shareholders' equity		127,387						120,618						106,874

Total Liabilities and Shareholders' Equity	$	1,514,583					$	1,442,278					$	1,234,611

Net interest income/spread			$	16,689	4.43	%			$	15,717	4.38	%			$	14,617	4.71	%
Net interest margin					4.44	%					4.39	%					4.74	%

	PRIVATE BANCORP OF AMERICA, INC.
	Consolidated average balance sheet, interest, yield and rates
	(Unaudited)
	(Dollars in thousands)

	For the Twelve months ended
	December 31, 2021						December 31, 2020
	Average Balance		Interest		Average Yield/Rate		Average Balance		Interest		Average Yield/Rate
Interest-Earnings Assets:
Deposits in other financial institutions	$	172,268	$	221	0.13	%	$	188,109	$	487	0.26	%
Investment securities		84,261		1,338	1.59	%		38,978		1,128	2.89	%
Loans		1,145,320		61,806	5.40	%		983,405		55,539	5.65	%
Total interest-earning assets		1,401,849		63,365	4.52	%		1,210,492		57,154	4.72	%
Noninterest-earning assets		21,115						11,602
Total Assets	$	1,422,964					$	1,222,094

Interest-Bearing Liabilities
Interest-bearing transaction accounts	$	66,575	$	50	0.08	%	$	68,313	$	227	0.33	%
Money market		463,595		915	0.20	%		397,050		2,068	0.52	%
Savings deposits		9,564		10	0.10	%		8,928		13	0.15	%
Certificates of deposit		78,193		714	0.91	%		109,165		2,061	1.89	%
Total Interest-Bearing Deposits		617,927		1,689	27.00	%		583,456		4,369	0.75	%

FHLB advances		34,521		1,798	5.21	%		85,532		1,430	1.67	%
Other borrowings		17,943		1,087	6.06	%		17,936		1,087	6.06	%
Total Interest-Bearing Liabilities		52,464		2,885	5.50	%		103,468		2,517	2.43	%

Noninterest-bearing deposits		621,042						419,676
Total Funding Sources		1,291,433		4,574	0.35	%		1,106,600		6,886	0.62	%

Noninterest-bearing liabilities		13,180						13,701
Shareholders' equity		118,351						101,793

Total Liabilities and Shareholders' Equity	$	1,422,964					$	1,222,094

Net interest income/spread			$	58,791	4.17	%			$	50,268	4.10	%
Net interest margin					4.19	%					4.15	%

	PRIVATE BANCORP OF AMERICA, INC.
	Condensed Balance Sheets
	(Unaudited)
	(Dollars in thousands, except per share amounts)
	Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Dec 31, 2020
Assets
Cash and due from banks	$	149,085		$	138,553		$	92,108		$	164,750		$	276,225
Interest-bearing time deposits with other institutions		5,760			5,760			5,760			5,760			5,760
Investment securities		102,116			93,099			88,755			81,429			26,086
Loans held for sale		24,658			35,448			19,625			12,430			9,687
Total loans held-for-investment (excluding PPP loans)		1,188,627			1,117,983			1,053,938			948,260			936,532
SBA PPP loans		35,524			74,152			110,673			133,740			62,338
Allowance for loan losses		(16,975	)		(16,141	)		(15,708	)		(14,561	)		(14,262	)
Net loans		1,207,176			1,175,994			1,148,903			1,067,439			984,608
Right of use asset		3,760			4,115			5,185			5,589			5,990
Premises and equipment, net		2,294			2,459			2,578			2,582			2,649
Other assets and interest receivable		21,285			19,254			19,856			19,738			18,735
Total assets	$	1,516,134		$	1,474,682		$	1,382,770		$	1,359,717		$	1,329,740

Liabilities and Shareholders' Equity

Liabilities
Noninterest Bearing	$	682,589		$	646,233		$	603,914		$	579,318		$	531,732
Interest Bearing		663,074			667,012			601,530			584,341			581,216
Total Deposits		1,345,663			1,313,245			1,205,444			1,163,659			1,112,948
Borrowings		27,947			27,945			47,943			67,941			92,939
Accrued interest payable and other liabilities		14,160			11,613			13,059			16,507			16,100
Total liabilities		1,387,770			1,352,803			1,266,446			1,248,107			1,221,987

Shareholders' equity
Common stock		70,850			70,470			70,405			70,053			69,557
Additional paid-in capital		3,343			3,465			3,179			3,317			3,496
Retained earnings		54,922			47,845			42,810			38,510			33,904
Accumulated other comprehensive (loss) income		(751	)		99			(70	)		(270	)		796
Total shareholders' equity		128,364			121,879			116,324			111,610			107,753
Total liabilities and shareholders' equity	$	1,516,134		$	1,474,682		$	1,382,770		$	1,359,717		$	1,329,740

Book value per common share	$	22.81		$	21.70		$	20.71		$	19.87		$	19.24
Tangible book value per common share	$	22.26		$	21.27		$	20.33		$	19.55		$	18.95
Shares outstanding		5,627,735			5,617,273			5,617,020			5,618,324			5,600,508

	Regulatory Capital Ratios (PBAM) ¹
	Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Dec 31, 2020
Tier 1 leverage ratio		8.42	%		8.19	%		8.36	%		8.07	%		8.52	%
Tier 1 risk-based capital ratio		10.63	%		10.64	%		10.74	%		11.35	%		11.20	%
Common equity Tier 1 ratio		10.63	%		10.64	%		10.74	%		11.35	%		11.20	%
Total risk-based capital ratio		13.38	%		13.48	%		13.68	%		14.46	%		14.36	%
Tangible equity / tangible assets		8.35	%		8.12	%		8.28	%		8.09	%		7.99	%

¹ Preliminary ratios for December 31, 2021

	PRIVATE BANCORP OF AMERICA, INC.
	Condensed Statements of Income
	(Unaudited)
	(Dollars in thousands, except per share amounts)
	Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Dec 31, 2020
Interest income	$	17,356		$	16,458		$	15,028		$	14,523		$	15,826
Interest expense		667			741			1,429			1,737			1,209
Net interest income		16,689			15,717			13,599			12,786			14,617
Provision for loan losses		834			433			1,146			300			1,579
Net interest income after provision for loan losses		15,855			15,284			12,453			12,486			13,038

Noninterest income		4,265			2,389			2,805			1,871			1,636

Salary and employee benefits		6,492			6,595			5,966			4,915			5,293
Occupancy and equipment		741			1,484			820			810			774
Data processing		703			799			690			635			624
Professional services		843			552			791			650			949
Other expenses		1,060			1,034			891			763			780
Total noninterest expense		9,839			10,464			9,158			7,773			8,420

Income before provision for income taxes		10,281			7,209			6,100			6,584			6,254
Income taxes		2,986			2,158			1,806			1,977			1,874
Net income	$	7,295		$	5,051		$	4,294		$	4,607		$	4,380
Net income available to common shareholders	$	7,204		$	4,984		$	4,231		$	4,529		$	4,307

Earnings per share
Basic earnings per share	$	1.30		$	0.90		$	0.76		$	0.82		$	0.78
Diluted earnings per share	$	1.28		$	0.89		$	0.75		$	0.81		$	0.78

Average shares outstanding		5,547,422			5,543,403			5,536,111			5,514,887			5,501,272
Diluted average shares outstanding		5,638,186			5,629,900			5,622,075			5,579,477			5,540,232

	Performance Ratios
	Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Dec 31, 2020
ROAA		1.91	%		1.39	%		1.26	%		1.37	%		1.41	%
ROAE		22.72	%		16.61	%		14.99	%		16.94	%		16.30	%
ROTE		23.07	%		16.88	%		15.25	%		17.19	%		16.54	%
Net interest margin		4.44	%		4.39	%		4.03	%		3.89	%		4.74	%
Net interest spread		4.43	%		4.38	%		4.00	%		3.85	%		4.71	%
Efficiency ratio		46.96	%		57.79	%		55.83	%		53.03	%		51.81	%
Noninterest expense / average assets		2.58	%		2.88	%		2.68	%		2.31	%		2.71	%

	PRIVATE BANCORP OF AMERICA, INC.
	(Unaudited)
	Selected Quarterly Average Balances
	(Dollars in thousands)
	Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Dec 31, 2020
Total assets	$	1,514,583		$	1,442,278		$	1,370,209		$	1,362,887		$	1,234,611
Earning assets	$	1,490,235		$	1,420,970		$	1,351,992		$	1,331,448		$	1,225,806
Total loans, including loans held for sale	$	1,222,234		$	1,185,865		$	1,125,958		$	1,044,828		$	1,005,712
Total deposits	$	1,346,777		$	1,276,349		$	1,184,352		$	1,145,776		$	1,017,389
Total equity	$	127,387		$	120,618		$	114,881		$	110,284		$	106,874


	Loan Balances by Type
	(Dollars in thousands)
	Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Dec 31, 2020
Real estate - investor owned	$	324,167		$	307,469		$	293,461		$	247,928		$	243,745
Real estate - owner occupied		339,081			329,985			313,579			284,494			268,193
Real estate - multifamily		97,285			82,460			72,790			75,361			69,187
Real estate - single family		86,399			81,239			90,223			75,353			67,522
Commercial business		294,944			274,708			244,493			227,635			251,711
SBA PPP loans		35,524			74,152			110,673			133,740			62,338
Land and construction		39,702			34,996			32,413			30,103			29,377
Consumer		7,049			7,126			6,979			7,386			6,797
Total loans held for investment		1,224,151			1,192,135			1,164,611			1,082,000			998,870
Loans held for sale		24,658			35,448			19,625			12,430			9,687
Total loans, including loans held for sale		1,248,809			1,227,583			1,184,236			1,094,430			1,008,557
Allowance for loan losses		(16,975	)		(16,141	)		(15,708	)		(14,561	)		(14,262	)
Net loans	$	1,231,834		$	1,211,442		$	1,168,528		$	1,079,869		$	994,295


	Deposits by Type
	(Dollars in thousands)
	Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Dec 31, 2020
Non interest bearing DDA	$	682,589		$	646,233		$	603,914		$	579,318		$	531,732
Interest bearing DDA		81,788			68,056			70,320			59,399			60,606
Savings & MMA		513,070			530,782			463,165			423,957			424,540
Retail CD		5,281			5,633			5,827			5,855			7,770
Jumbo CD		62,935			62,541			62,218			95,130			88,300
Total deposits	$	1,345,663		$	1,313,245		$	1,205,444		$	1,163,659		$	1,112,948


	Asset Quality
	(Dollars in thousands)
	Dec 31, 2021			Sep 30, 2021			Jun 30, 2021			Mar 31, 2021			Dec 31, 2020
Total loans held-for-investment	$	1,224,151		$	1,192,135		$	1,164,611		$	1,082,000		$	998,870
30-89 day past due loans	$	-		$	200		$	-		$	-		$	-
90+ day past due loans	$	-		$	-		$	-		$	-		$	-
Nonaccrual loans	$	1,510		$	1,494		$	1,540		$	1,609		$	1,609

NPAs / Assets		0.10	%		0.10	%		0.11	%		0.12	%		0.12	%
NPLs / Total loans held-for-investment & OREO		0.12	%		0.12	%		0.13	%		0.15	%		0.16	%
Net quarterly charge-offs	$	-		$	-		$	-		$	-		$	-
Net charge-offs/avg loans (annualized)		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Allowance for loan losses to loans HFI		1.39	%		1.35	%		1.35	%		1.35	%		1.43	%
Allowance for loan losses to nonaccrual loans		1124.11	%		1080.39	%		1020.00	%		904.97	%		886.39	%

FAQ

What were the Q4 2021 earnings results for PBAM?

PBAM reported net income of $7.3 million for Q4 2021, up 43.1% from Q3 2021.

How did PBAM perform in FY 2021 compared to FY 2020?

For FY 2021, PBAM's net income was $21.0 million, a 93.1% increase from $10.9 million in FY 2020.

What was the net interest margin for PBAM in Q4 2021?

The net interest margin for Q4 2021 was 4.44%, up from 4.39% in Q3 2021.

How much did total loans increase for PBAM in FY 2021?

Total loans held-for-investment increased by 26.9%, reaching $1.2 billion in FY 2021.

Private Bancorp of America, Inc. Announces Record Fourth Quarter and Full Year 2021 Financial Results With Total Assets of $1.5 Billion

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Private Bancorp of America, Inc. Announces Record Fourth Quarter and Full Year 2021 Financial Results With Total Assets of $1.5 Billion

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