Private Bancorp of America, Inc. Announces Third Quarter 2022 Financial Results

Rhea-AI Summary

Private Bancorp of America (OTCQX:PBAM) reported a net income of $6.4 million for Q3 2022, marking a 44.4% increase from Q2 and 25.7% year-over-year. Diluted earnings per share rose to $1.12, up 45.5%. Total loans held-for-investment reached $1.5 billion, a 7.9% increase from the previous quarter. Net interest margin improved to 4.97%, compared to 4.57% last quarter. Despite rising funding costs, the company remains well-capitalized, with a Tier 1 risk-based capital ratio of 9.35%.

Positive

• Net income increased by 44.4% to $6.4 million compared to the prior quarter.
• Diluted earnings per share rose to $1.12, a 45.5% increase.
• Total loans held-for-investment grew by $108.9 million, or 7.9%, from the prior quarter.
• Net interest margin improved to 4.97% from 4.57% in the previous quarter.
• Efficiency ratio improved to 53.3%, down from 64.9% in Q2 2022.

Negative

• Provision for loan losses increased to $1.3 million, reflecting growing uncertainty.
• Mark-to-market losses on the securities portfolio increased to -$15.2 million.

Third Quarter Highlights

• Net income for the third quarter of 2022 was $6.4 million, up 44.4% from the prior quarter and 25.7% from the same period in the prior year
• Diluted earnings per share for the third quarter of 2022 was $1.12, up 45.5% from the prior quarter and 25.8% from the same period in the prior year
• Total loans held-for-investment (“HFI”), excluding Paycheck Protection Program (“PPP”) loans, reached $1.5 billion at September 30, 2022, an increase of $108.9 million or 7.9% from the prior quarter and $367.8 million or 32.9% from the same period in the prior year.
• Non-interest-bearing demand deposits grew $16.2 million or 2.2% from the prior quarter and $117.0 million or 18.1% from same period in the prior year, representing 49.9% of total deposits
• Net interest margin (ex-PPP loans) of 4.97% compared to 4.57% for the prior quarter and 4.27% for the same period in the prior year
• Total cost of funding sources increased to 0.36% for the third quarter of 2022 from 0.20% in the prior quarter. Total cost of deposits, including noninterest-bearing demand deposits, remained low at 0.27%
• The provision for loan losses for the third quarter of 2022 was $1.3 million, an increase of $657 thousand compared to the prior quarter and was attributed to organic loan growth
• Allowance for loan losses was 1.29% of total loans HFI (ex-PPP loans) at September 30, 2022 compared with 1.29% in the prior quarter
• Tangible book value per share was $23.49 at September 30, 2022, up $0.81 from Q2’22 reflecting strong earnings that was partially offset by an increase in unrealized losses on the securities portfolio
• Private Bancorp of America, Inc. (“PBAM”) remains well capitalized with Tier 1 risk-based capital ratio of 9.35% (preliminary)

LA JOLLA, Calif., Oct. 21, 2022 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM), (“Company”) and CalPrivate Bank (“Bank”) announced unaudited financial results for the third quarter ended September 30, 2022. The Company reported net income of $6.4 million, or $1.12 per diluted share, for the third quarter of 2022 compared to $4.4 million, or $0.77 per diluted share for the prior quarter.  

Rick Sowers, President and CEO of the Company and the Bank stated, “CalPrivate’s core franchise demonstrated its resiliency by continuing to organically grow loans and deposits which resulted in strong growth in net interest income to $20.6 million, well ahead of last quarter’s record. Additionally, while increasing our revenue growth, we continued our efforts to monitor and manage our non-interest expenses.”

Sowers continued, “While global events and domestic uncertainty has put pressure on the overall financial markets and on the banking industry in general, our proven model of focusing on Relationships, Solutions, and Trust continues to resonate with our Clients and prospective Clients. Specifically, our ability to organically grow net loans (ex-PPP loans) by $108.9 million in Q3’22, which represented linked-quarter growth of 7.9%, attests to the success of our Team.

Additionally, while the Federal Reserve continued on its path to raise rates in the third quarter to combat inflationary pressures, our deep Client Relationships and Distinctively Different Service™, demonstrated by our remarkable net promoter score (NPS™) of 84, more than twice the score for the U.S. Banking Industry average, enabled the Bank to grow noninterest-bearing deposits by $16.2 million while keeping the overall cost of interest-bearing deposits low at 0.36%. While we anticipate that funding costs will continue to increase and the potential movement of funds from noninterest-bearing to interest bearing accounts will occur, we are staying very close to our Clients to ensure we are here for them in these uncertain times.”

The rapidly changing economic climate has resulted in volatile interest rates, which has impacted the mark-to-market on the Bank’s securities portfolio as well as the Bank’s ability to originate and sell SBA 7a loans in the secondary market. Nonetheless, the Bank’s vigilant efforts to monitor and manage non-interest expenses resulted in an efficiency ratio of 53.3% from 64.9% in the prior quarter.

While the industry faces significant headwinds, generational high inflation rates and an increased possibility of a recession, the Company continues to invest in the infrastructure needed to drive efficiency and to support the growth of our Relationship Teams committed to serving our Clients.

“The Company continues to exhibit successful customer acquisition as shown by the organic growth in loans and deposits, despite a rising rate environment. Management and staff’s ability to stay focused on providing Exceptional Client Service is readily apparent in the Company’s impressive financial results,” said Selwyn Isakow, Chairman of the Board of the Company and the Bank.

Isakow added, “We are pleased with CalPrivate’s financial performance in the third quarter of 2022, however, we remain cautious on the overall economy. We are confident in Management’s ability to react to developing global events that will impact the Bank domestically, including the very real possibility of a global recession due to significant geopolitical and economic challenges stemming from high inflation, increasing interest rates, energy supply constraints, volatile global politics, increased cyber security risks, and the on-going war in Ukraine.”

STATEMENT OF INCOME

Net Interest Income

Net interest income for the third quarter totaled $20.6 million, representing an increase of $2.6 million or 14.6% compared to the second quarter of 2022. The increase in net interest income for the third quarter of 2022 was primarily due to increases in organic non-PPP average loan balances and higher interest rates. PPP interest and fee income was $123 thousand in Q3’22, compared to $224 thousand in Q2’22. As of September 30, 2022, only 4 PPP loans with total balances of $1.3 million remained unforgiven by the SBA. Interest expense on deposits increased $601 thousand in the third quarter of 2022 vs. the prior quarter due to higher average interest-bearing deposits and an increase in the deposit rates paid to Clients.

Net Interest Margin

The net interest margin for Q3’22 was 4.99% compared to 4.61% for the second quarter of 2022. Excluding PPP-loans, the net interest margin for Q3’22 was 4.97% compared to 4.57% for the second quarter of 2022. The 0.38% increase in the as reported net interest margin for the third quarter was due to higher loan balances and higher loan yields. Average portfolio loan yields (ex-PPP) were 5.77% for Q3’22, compared to 5.33% for Q2’22, including loan prepayment fees. The yield on earning assets was 5.32% for Q3’22 compared with 4.80% for Q2’22 and the cost of funds was 0.36% for Q3’22 compared to 0.20% for Q2’22.

Provision for Loan Losses

The provision for loan losses for the third quarter was $1.3 million, an increase of $657 thousand compared to the second quarter of 2022. While the loan portfolio has not experienced any losses, geopolitical events and high inflation have created uncertainty, and this is reflected in our ALLL to total loans HFI (ex-PPP loans) of 1.29%. This level has been consistently in the range of 1.41% to 1.29% since September 2020, reflecting the current solid credit metrics in the portfolio.

Non-Interest Income

Non-interest income was $1.4 million for the third quarter of 2022 and remained flat as compared to the second quarter of 2022. SBA loan sales for the third quarter of 2022 were $10.4 million with a 9.2% average trade premium resulting in a net gain on sale of $647 thousand, compared with $9.9 million with a 10.5% average trade premium resulting in a net gain on sale of $768 thousand in the second quarter of 2022.

Non-Interest Expense

Non-interest expense was $11.7 million for the third quarter representing a $873 thousand, or 6.9% decrease compared to the second quarter of 2022. Much of the decrease was related to the increased accruals in the prior quarter for professional services and other expenses given the active and on-going lawsuit for the recovery of the charged-off loan related to the ANI Development, LLC/Gina Champion-Cain fraud case and Chicago Title (parent company, Fidelity National Financial) for their alleged involvement with the fraud scheme.

Additionally, the Company remains committed to making investments in the business, including technology, marketing, and staffing. Historically high inflation and low unemployment has resulted in pressure on wages as well as increased costs related to third party service providers, which we proactively monitor and manage.

STATEMENT OF FINANCIAL CONDITION

Balance Sheet

At September 30, 2022, the Company reported total assets of $1.7 billion representing an increase of $114.8 million or 7.1% compared to the second quarter of 2022. The increase in assets for the second quarter was due to increases in loans supported by growth in deposits and wholesale borrowings from the FHLB. Total loans HFI increased to $1.5 billion at September 30, 2022 or $107.6 million, up 7.8%; excluding PPP loans, total loans increased $108.9 million, up 7.9%. Total deposits were $1.5 billion at September 30, 2022 representing an increase of $89.9 million, or 6.2%, compared to the second quarter of 2022. Total non-interest-bearing deposits represented 49.9% of total deposits at September 30, 2022. Additionally, during the third quarter of 2022, the mark-to-market fair value net unrealized losses on the securities portfolio, which consisted mainly of US Treasury and Government Agency debt, increased to pre-tax -$15.2 million from -$12.5 million from the prior quarter. The average duration of the Bank’s securities portfolio is 4.4 years.

Asset Quality

The Allowance for Loan Losses increased $1.3 million to $19.1 million in the quarter with a resulting coverage ratio of 1.29% of total loans HFI, excluding PPP loans. The increase in the Allowance for Loan Losses was primarily due to non-PPP organic loan growth and qualitative loss factors related to the general economic outlook in the markets we serve.

As of September 30, 2022, there were no doubtful credits or charge-offs and classified assets were $15.9 million, up $4.8 million compared to Q2’22. Total classified assets consisted of 13 loans, of which 7 loans totaling $10.1 million were secured by real estate with a weighted average LTV of 42.8%. The remaining 6 loans included 5 SBA loans with a balance of $3.3 million and were 75% guaranteed by the SBA.

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:

	Sep 30, 2022 (1)	Jun 30, 2022	Mar 31, 2022
Private Bancorp of America
Tier I leverage ratio	8.64%	8.61%	8.85%
Tier I risk-based capital ratio	9.35%	10.29%	10.31%
Total risk-based capital ratio	11.77%	12.99%	12.94%
CalPrivate Bank
Tier I leverage ratio	9.57%	9.58%	9.72%
Tier I risk-based capital ratio	10.36%	11.44%	11.93%
Total risk-based capital ratio	11.60%	12.79%	13.18%

      (1)   September 30, 2022, capital ratios are preliminary

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.

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. 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, permit investors to effectively analyze financial trends of our business activities, and enhance comparability with peers across the financial services sector. These non-GAAP financial measures are not a substitute for GAAP measures and should be read in conjunction with the Company’s GAAP financial information. A reconciliation of 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

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)
	September 30, 2022				June 30, 2022				September 30, 2021
Assets
Cash and due from banks	$	13,506			$	15,694			$	12,570
Interest-bearing deposits in other financial institutions		44,776				43,857				2,736
Interest-bearing deposits at Federal Reserve Bank		43,891				29,241				123,247
Total cash and due from banks		102,173				88,792				138,553
Interest-bearing time deposits with other institutions		6,157				6,157				5,760
Investment securities available for sale		107,332				113,565				93,099
Loan held for sale		7,789				4,460				35,448
Total loans held-for-investment		1,487,098				1,379,519				1,192,135
Allowance for loan losses		(19,092	)			(17,776	)			(16,141	)
Net loans		1,468,006				1,361,743				1,175,994
Federal Home Loan Bank stock, at cost		7,020				7,020				4,909
Right of use asset		2,669				3,037				4,115
Premises and equipment, net		2,040				2,640				2,459
Servicing assets, net		3,502				3,515				2,374
Deferred tax asset		7,212				9,229				6,256
Accrued interest receivable		4,262				3,855				3,404
Other assets		8,739				8,089				2,311
Total assets	$	1,726,901			$	1,612,102			$	1,474,682
Liabilities and Shareholders' Equity
Liabilities
Noninterest bearing	$	763,227			$	747,006			$	646,233
Interest Bearing		767,371				693,646				667,012
Total deposits		1,530,598				1,440,652				1,313,245
FHLB borrowings		30,000				10,000				10,000
Other borrowings		17,952				17,950				17,945
Accrued interest payable and other liabilities		13,417				13,305				11,613
Total liabilities		1,591,967				1,481,907				1,352,803
Shareholders' equity
Common stock		71,671				71,516				70,470
Additional paid-in capital		3,568				3,368				3,465
Retained earnings		70,386				64,036				47,845
Accumulated other comprehensive (loss) income, net		(10,691	)			(8,725	)			99
Total stockholders' equity		134,934				130,195				121,879
Total liabilities and stockholders' equity	$	1,726,901			$	1,612,102			$	1,474,682

PRIVATE BANCORP OF AMERICA, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share amounts)
		For the three months ended									For the nine months ended
		September 30, 2022			June 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Interest Income
Loans		$	21,028		$	17,931		$	16,068		$	56,205		$	44,865
Investment securities			578			571			330			1,550			986
Deposits in other financial institutions			372			204			60			711			158
Total interest income			21,978			18,706			16,458			58,466			46,009
Interest Expense
Deposits			1,011			410			409			1,748			1,336
Borrowings			364			313			332			991			2,571
Total interest expense			1,375			723			741			2,739			3,907
Net interest income			20,603			17,983			15,717			55,727			42,102
Provision for loan losses			1,316			659			433			2,118			1,879
Net interest income after provision for loan losses			19,287			17,324			15,284			53,609			40,223
Noninterest income:
Service charges on deposit accounts			306			299			236			887			691
Net gain on sale of loans			647			768			1,837			3,886			5,639
Other noninterest income			452			375			316			1,184			736
Total noninterest income			1,405			1,442			2,389			5,957			7,066
Noninterest expense:
Salary and employee benefits			7,261			7,374			6,595			21,948			17,476
Occupancy and equipment			756			808			1,484			2,287			3,114
Data processing			993			824			799			2,469			2,124
Professional services			1,493			1,835			552			4,243			1,994
Other expenses			1,224			1,759			1,034			4,222			2,688
Total noninterest expense			11,727			12,600			10,464			35,169			27,396
Income before provision for income taxes			8,965			6,166			7,209			24,397			19,893
Provision for income taxes			2,614			1,769			2,158			7,131			5,942
Net income		$	6,351		$	4,397		$	5,051		$	17,266		$	13,951
Net income available to common shareholders		$	6,306		$	4,347		$	4,984		$	17,115		$	13,744
Earnings per share
Basic earnings per share		$	1.14		$	0.78		$	0.90		$	3.08		$	2.48
Diluted earnings per share		$	1.12		$	0.77		$	0.89		$	3.03		$	2.45
Average shares outstanding			5,549,480			5,543,065			5,543,403			5,559,122			5,531,590
Diluted average shares outstanding			5,640,841			5,639,282			5,629,900			5,657,117			5,611,616

PRIVATE BANCORP OF AMERICA, INC.
Consolidated average balance sheet, interest, yield and rates
(Unaudited)
(Dollars in thousands)
		For the three months ended
		September 30, 2022									June 30, 2022									September 30, 2021
		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		$	77,353		$	372		1.91	%		$	100,017		$	204		0.82	%		$	142,647		$	60		0.17	%
Investment securities			122,184			578		1.89	%			125,550			571		1.82	%			92,458			330		1.43	%
Loans, including LHFS			1,438,489			21,028		5.80	%			1,339,095			17,931		5.37	%			1,185,865			16,068		5.38	%
Total interest-earning assets			1,638,026			21,978		5.32	%			1,564,662			18,706		4.80	%			1,420,970			16,458		4.60	%
Noninterest-earning assets			27,465									27,614									21,308
Total Assets		$	1,665,491								$	1,592,276								$	1,442,278
Interest-Bearing Liabilities
Interest-bearing transaction accounts		$	92,986		$	166		0.71	%		$	87,682		$	54		0.25	%		$	68,618		$	14		0.08	%
Money market			535,473			680		0.50	%			492,838			241		0.20	%			493,289			245		0.20	%
Savings deposits			13,437			8		0.24	%			14,216			3		0.01	%			9,639			3		0.12	%
Certificates of deposit			69,676			157		0.89	%			67,184			112		0.66	%			68,761			147		0.85	%
Total Interest-Bearing Deposits			711,572			1,011		0.56	%			661,920			410		0.25	%			640,307			409		0.25	%
FHLB advances			15,299			92		2.39	%			10,000			42		1.64	%			14,783			60		1.61	%
Other borrowings			17,951			272		6.06	%			17,948			271		6.06	%			17,944			272		6.06	%
Total Interest-Bearing Liabilities			33,250			364		4.34	%			27,948			313		4.49	%			32,727			332		4.02	%
Noninterest-bearing deposits			771,167									757,728									636,042
Total Funding Sources			1,515,989			1,375		0.36	%			1,447,596			723		0.20	%			1,309,076			741		0.22	%
Noninterest-bearing liabilities			4,775									11,891									12,584
Shareholders' equity			144,727									132,789									120,618
Total Liabilities and Shareholders' Equity		$	1,665,491								$	1,592,276								$	1,442,278
Net interest income/spread					$	20,603		4.96	%					$	17,983		4.60	%					$	15,717		4.38	%
Net interest margin								4.99	%								4.61	%								4.39	%

PRIVATE BANCORP OF AMERICA, INC.
Consolidated average balance sheet, interest, yield and rates
(Unaudited)
(Dollars in thousands)
		For the nine months ended
		September 30, 2022									September 30, 2021
		Average Balance			Interest			Average Yield/Rate			Average Balance			Interest			Average Yield/Rate
Interest-Earnings Assets:
Deposits in other financial institutions		$	97,946		$	711		0.97	%		$	172,601		$	158		0.12	%
Investment securities			119,042			1,550		1.74	%			80,061			986		1.65	%
Loans			1,349,382			56,205		5.57	%			1,119,400			44,865		5.36	%
Total interest-earning assets			1,566,370			58,466		4.99	%			1,372,062			46,009		4.48	%
Noninterest-earning assets			25,751									20,023
Total Assets		$	1,592,121								$	1,392,085
Interest-Bearing Liabilities
Interest-bearing transaction accounts		$	86,461		$	235		0.36	%		$	64,020		$	36		0.08	%
Money market			508,956			1,115		0.29	%			449,920			713		0.21	%
Savings deposits			13,725			15		0.15	%			9,215			7		0.10	%
Certificates of deposit			68,466			383		0.75	%			81,490			580		0.95	%
Total Interest-Bearing Deposits			677,608			1,748		0.34	%			604,645			1,336		0.30	%
FHLB advances			11,786			175		1.99	%			42,784			1,756		5.49	%
Other borrowings			17,949			816		6.08	%			17,942			815		6.07	%
Total Interest-Bearing Liabilities			29,735			991		4.46	%			60,726			2,571		5.66	%
Noninterest-bearing deposits			737,578									597,992
Total Funding Sources			1,444,921			2,739		0.25	%			1,263,363			3,907		0.41	%
Noninterest-bearing liabilities			12,955									13,421
Shareholders' equity			134,245									115,301
Total Liabilities and Shareholders' Equity		$	1,592,121								$	1,392,085
Net interest income/spread					$	55,727		4.74	%					$	42,102		4.07	%
Net interest margin								4.76	%								4.10	%

	PRIVATE BANCORP OF AMERICA, INC.
	Condensed Balance Sheets
	(Unaudited)
	(Dollars in thousands, except per share amounts)
	Sep 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Sep 30, 2021
Assets
Cash and due from banks	$	102,173			$	88,792			$	124,015			$	149,085			$	138,553
Interest-bearing time deposits with other institutions		6,157				6,157				5,817				5,760				5,760
Investment securities		107,332				113,565				114,382				102,065				93,099
Loans held for sale		7,789				4,460				1,999				24,658				35,448
Total loans held-for-investment (excluding PPP loans)		1,485,749				1,376,801				1,276,043				1,188,634				1,117,983
SBA PPP loans		1,349				2,718				8,795				35,524				74,152
Allowance for loan losses		(19,092	)			(17,776	)			(17,117	)			(16,975	)			(16,141	)
Net loans		1,468,006				1,361,743				1,267,721				1,207,183				1,175,994
Right of use asset		2,669				3,037				3,400				3,760				4,115
Premises and equipment, net		2,040				2,640				2,813				2,294				2,459
Other assets and interest receivable		30,735				31,708				25,335				22,279				19,254
Total assets	$	1,726,901			$	1,612,102			$	1,545,482			$	1,517,084			$	1,474,682
Liabilities and Shareholders' Equity
Liabilities
Noninterest Bearing	$	763,227			$	747,006			$	724,469			$	682,589			$	646,233
Interest Bearing		767,371				693,646				646,545				663,074				667,012
Total Deposits		1,530,598				1,440,652				1,371,014				1,345,663				1,313,245
Borrowings		47,952				27,950				27,948				27,947				27,945
Accrued interest payable and other liabilities		13,417				13,305				14,630				15,110				11,613
Total liabilities		1,591,967				1,481,907				1,413,592				1,388,720				1,352,803
Shareholders' equity
Common stock		71,671				71,516				70,899				70,850				70,470
Additional paid-in capital		3,568				3,368				3,602				3,343				3,465
Retained earnings		70,386				64,036				61,424				54,922				47,845
Accumulated other comprehensive (loss) income		(10,691	)			(8,725	)			(4,035	)			(751	)			99
Total shareholders' equity		134,934				130,195				131,890				128,364				121,879
Total liabilities and shareholders' equity	$	1,726,901			$	1,612,102			$	1,545,482			$	1,517,084			$	1,474,682
Book value per common share	$	24.12			$	23.31			$	23.42			$	22.81			$	21.70
Tangible book value per common share	$	23.49			$	22.68			$	22.80			$	22.26			$	21.27
Shares outstanding		5,594,380				5,584,465				5,630,993				5,627,735				5,617,273
	Regulatory Capital Ratios (PBAM) 1
	Sep 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Sep 30, 2021
Tier 1 leverage ratio		8.64	%			8.61	%			8.85	%			8.42	%			8.19	%
Tier 1 risk-based capital ratio		9.35	%			10.29	%			10.31	%			10.63	%			10.64	%
Common equity Tier 1 ratio		9.35	%			10.29	%			10.31	%			10.63	%			10.64	%
Total risk-based capital ratio		11.77	%			12.99	%			12.94	%			13.38	%			13.48	%
Tangible equity / tangible assets		8.20	%			8.37	%			8.59	%			8.36	%			8.15	%
1 Preliminary ratios for September 30, 2022

	PRIVATE BANCORP OF AMERICA, INC.
	Condensed Statements of Income
	(Unaudited)
	(Dollars in thousands, except per share amounts)
	For the three months ended
	Sep 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Sep 30, 2021
Interest income	$	21,978			$	18,706			$	17,781			$	17,356			$	16,458
Interest expense		1,375				723				640				667				741
Net interest income		20,603				17,983				17,141				16,689				15,717
Provision for loan losses		1,316				659				142				834				433
Net interest income after provision for loan losses		19,287				17,324				16,999				15,855				15,284
Noninterest income		1,405				1,442				3,109				4,265				2,389
Salary and employee benefits		7,261				7,374				7,313				6,492				6,595
Occupancy and equipment		756				808				723				741				1,484
Data processing		993				824				653				703				799
Professional services		1,493				1,835				915				843				552
Other expenses		1,224				1,759				1,255				1,060				1,034
Total noninterest expense		11,727				12,600				10,859				9,839				10,464
Income before provision for income taxes		8,965				6,166				9,249				10,281				7,209
Income taxes		2,614				1,769				2,747				2,986				2,158
Net income	$	6,351			$	4,397			$	6,502			$	7,295			$	5,051
Net income available to common shareholders	$	6,306			$	4,347			$	6,432			$	7,204			$	4,984
Earnings per share
Basic earnings per share	$	1.14			$	0.78			$	1.16			$	1.30			$	0.90
Diluted earnings per share	$	1.12			$	0.77			$	1.13			$	1.28			$	0.89
Average shares outstanding		5,549,480				5,543,065				5,568,400				5,547,422				5,543,403
Diluted average shares outstanding		5,640,841				5,639,282				5,672,701				5,638,186				5,629,900
	Performance Ratios
	Sep 30, 2022				Jun 30, 2022				Dec 31, 2021				Sep 30, 2021				Jun 30, 2021
ROAA		1.51	%			1.11	%			1.74	%			1.91	%			1.39	%
ROAE		17.41	%			13.28	%			19.91	%			22.72	%			16.61	%
ROTE (1)		17.85	%			13.64	%			20.43	%			23.25	%			16.94	%
Net interest margin		4.99	%			4.61	%			4.65	%			4.44	%			4.39	%
Net interest spread		4.96	%			4.60	%			4.63	%			4.43	%			4.38	%
Efficiency ratio (1)		53.29	%			64.86	%			53.62	%			46.96	%			57.79	%
Noninterest expense / average assets		2.79	%			3.21	%			2.90	%			2.58	%			2.88	%
(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
	Sep 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Sep 30, 2021
Total assets	$	1,665,491			$	1,592,276			$	1,516,352			$	1,514,583			$	1,442,278
Earning assets	$	1,638,026			$	1,564,662			$	1,494,850			$	1,490,235			$	1,420,970
Total loans, including loans held for sale	$	1,438,489			$	1,339,095			$	1,268,695			$	1,222,234			$	1,185,865
Total deposits	$	1,482,740			$	1,419,648			$	1,341,631			$	1,346,777			$	1,276,349
Total equity	$	144,727			$	132,789			$	132,472			$	127,387			$	120,618
	Loan Balances by Type
	(Dollars in thousands)
	Sep 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Sep 30, 2021
Real estate - investor owned	$	403,950			$	390,628			$	350,152			$	324,167			$	307,469
Real estate - owner occupied		382,689				359,270				371,840				339,081				329,985
Real estate - multifamily		136,841				121,693				105,964				97,285				82,460
Real estate - single family		107,728				94,212				89,630				86,399				81,239
Commercial business		393,020				359,692				307,421				294,944				274,708
SBA PPP loans		1,349				2,718				8,795				35,524				74,152
Land and construction		55,418				44,856				44,856				39,702				34,996
Consumer		6,103				6,450				6,180				7,049				7,126
Total loans held for investment	$	1,487,098			$	1,379,519			$	1,284,838			$	1,224,151			$	1,192,135
	Deposits by Type
	(Dollars in thousands)
	Sep 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Sep 30, 2021
Non interest bearing DDA	$	763,227			$	747,006			$	724,469			$	682,589			$	646,233
Interest bearing DDA		95,677				93,405				75,904				81,788				68,056
Savings & MMA		591,408				533,145				503,552				513,070				530,782
Retail CD		3,478				3,387				3,384				5,281				5,633
Jumbo CD		76,808				63,709				63,705				62,935				62,541
Total deposits	$	1,530,598			$	1,440,652			$	1,371,014			$	1,345,663			$	1,313,245
	Asset Quality
	(Dollars in thousands)
	Sep 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Sep 30, 2021
Total loans held-for-investment	$	1,487,098			$	1,379,519			$	1,284,838			$	1,224,151			$	1,192,135
Allowance for Loan Losses	$	(19,092	)		$	(17,776	)		$	(17,117	)		$	(16,975	)		$	(16,141	)
30-89 day past due loans	$	-			$	-			$	-			$	-			$	200
90+ day past due loans	$	-			$	-			$	-			$	-			$	-
Nonaccrual loans	$	4,593			$	1,453			$	1,453			$	1,510			$	1,494
NPAs / Assets		0.27	%			0.09	%			0.09	%			0.10	%			0.10	%
NPLs / Total loans held-for-investment & OREO		0.31	%			0.11	%			0.11	%			0.12	%			0.12	%
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		1.28	%			1.29	%			1.33	%			1.39	%			1.35	%
Allowance for loan losses to nonaccrual loans		415.68	%			1223.40	%			1178.05	%			1124.11	%			1080.39	%

PRIVATE BANCORP OF AMERICA, INC.
(Unaudited)
The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: efficiency ratio, pre-tax pre-provision income, average tangible common equity, 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
	Sep 30, 2022				Jun 30, 2022				Mar 31, 2022				Dec 31, 2021				Sep 30, 2021
Efficiency Ratio
Noninterest expense	$	11,727			$	12,600			$	10,859			$	9,839			$	10,464
Net interest income		20,603				17,983				17,141				16,689				15,717
Noninterest income		1,405				1,442				3,109				4,265				2,389
Total net interest income and noninterest income		22,008				19,425				20,250				20,954				18,106
Efficiency ratio (non-GAAP)		53.3	%			64.9	%			53.6	%			47.0	%			57.8	%
Pre-tax pre-provision income
Net interest income	$	20,603			$	17,983			$	17,141			$	16,689			$	15,717
Noninterest income		1,405				1,442				3,109				4,265				2,389
Total net interest income and noninterest income		22,008				19,425				20,250				20,954				18,106
Less: Noninterest expense		11,727				12,600				10,859				9,839				10,464
Pre-tax pre-provision income (non-GAAP)	$	10,281			$	6,825			$	9,391			$	11,115			$	7,642
Return on Average Assets, Average Equity, Average Tangible Equity
Net income	$	6,351			$	4,397			$	6,502			$	7,295			$	5,051
Average assets		1,665,491				1,592,276				1,516,352				1,514,583				1,442,278
Average shareholders' equity		144,727				132,789				132,472				127,387				120,618
Less: Average intangible assets		3,599				3,490				3,379				2,908				2,337
Average tangible common equity (non-GAAP)		141,128				129,299				129,093				124,479				118,281
Return on average assets		1.51	%			1.11	%			1.74	%			1.91	%			1.39	%
Return on average equity		17.41	%			13.28	%			19.91	%			22.72	%			16.61	%
Return on average tangible common equity (non-GAAP)		17.85	%			13.64	%			20.43	%			23.25	%			16.94	%
Tanigible book value per share
Total equity		134,934				130,195				131,890				128,364				121,879
Less: Total intangible assets		3,502				3,525				3,079				2,374				1,789
Total tangible equity		131,432				126,670				128,811				125,990				120,090
Shares outstanding		5,594,380				5,584,465				5,630,993				5,627,735				5,617,273
Tangible book value per share (non-GAAP)	$	23.49			$	22.68			$	22.80			$	22.26			$	21.27

FAQ

What were PBAM's earnings for Q3 2022?

Private Bancorp of America reported net income of $6.4 million for Q3 2022.

How much did PBAM's diluted earnings per share increase?

Diluted earnings per share for PBAM increased by 45.5% to $1.12.

What is the status of PBAM's loan portfolio?

Total loans held-for-investment reached $1.5 billion, an increase of 7.9% from the previous quarter.

What is PBAM's Tier 1 risk-based capital ratio?

As of September 30, 2022, PBAM's Tier 1 risk-based capital ratio is 9.35%.

How has PBAM's net interest margin changed?

Net interest margin improved to 4.97% compared to 4.57% in the prior quarter.