Private Bancorp of America, Inc. Reports Continued Record Earnings

• Net income for the quarter was $4.3 million, or $0.75 per diluted share
• Net interest margin for the quarter was 4.03% compared with 3.89% in the prior quarter. The net interest margin excluding SBA PPP loans was 4.14% and 3.75% in the prior quarter
• Net interest income up 6.4% for the quarter and 17% year-over-year
• Non-interest income up 50% for the quarter and 104% year-over-year
• Total loans were $1.2 billion, up 7.6% for the quarter and 14.3% year-over-year
• Allowance for Loan Losses to total loans is 1.33% and 1.46% excluding PPP loans
• Total deposits were $1.2 billion, up 3.6% for the quarter and 16.3% year over year
• Return on Average Assets was 1.26% and Return on Average Equity was 14.99%

LA JOLLA, Calif., July 21, 2021 (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, 2021. The Company reported net income of $4.3 million, or $0.75 per diluted share, for the second quarter of 2021 compared to $4.6 million, or $0.81 per diluted share for the first quarter of 2021. Net income for the six months ending June 30, 2021, was $8.9 million, or $1.56 per diluted share, compared to $4.0 million or $0.71 per diluted share for the same period in 2020.

Rick Sowers, President and CEO of the Company and the Bank stated, “Our second quarter results are a reflection of executing on our core business plan. Our Team continues to aggressively focus on our profitability and continued growth of the franchise in all our business lines and markets. The quarter reflected record loan production and strong gain on sale of SBA loans which added higher non-interest income. We are pleased with the results and have tremendous confidence in our Team and their ability to execute on behalf of our Clients.”

Sowers continued, “We continue to make progress in improving our operating leverage while adding resources to continue to scale and grow our market share. As part of our strategic plan, we began the implementation of new technologies including the nCino Lending Platform that will drive efficiency and allow us to continue to provide a level of service to our Clients that is second to none.”

Net Interest Income

Net interest income for the second quarter totaled $13.6 million representing an increase of $813 thousand, or 6.4% compared to the first quarter of 2021 and an increase of $2.0 million or 17% increase for the same period in 2020. The increase in net interest income for the quarter is due to a $505 thousand increase in interest income and a $308 thousand decrease in funding costs. The increase in loan income is due to a $916 thousand increase in non-PPP loan revenue due to increased average loan balances offset by a $438 thousand decrease in revenue from SBA PPP loans due to less forgiveness recognized in the second quarter. The decrease in funding costs is due to a $108 thousand decrease in deposit costs and $200 thousand decrease in borrowing expense as more expensive FHLB borrowings were prepaid.

Net interest income for the year to date totaled $26.4 million representing an increase of $3.2 million, or 14% compared to the same period in 2020. The increase is due to increased average loan balances, increased SBA PPP loan income and lower deposit costs, partially offset by prepayment penalties in 2021 totaling $1.2 million as a result of prepaying higher priced FHLB term advances.

Net Interest Margin

The net interest margin for the second quarter of 2021 was 4.03% (4.14% excluding PPP loans) compared with 3.89% (3.75% excluding PPP loans) for the first quarter of 2021 and 3.66% (3.77% excluding PPP loans) for the same period in 2020. The 14 bp increase in the net interest margin for the quarter was due to increased core loan yields and lower funding costs associated for the quarter. The yield on earning assets for the second quarter was 4.46% compared with 4.42% in the first quarter and 4.29% for the same period in 2020. The yield on loans for the quarter decreased to 5.21% (5.50% excluding PPP loans) compared to 5.50% (5.48% excluding PPP loans) in the first quarter and 5.30% (5.68% excluding PPP loans) in the second quarter of 2020. The cost of total funding sources was 0.46% for the quarter compared with 0.57% in the first quarter and 0.69% for the same period in 2020. During the quarter, the Company elected to prepay $10 million in FHLB term advances and recorded a $535 thousand prepayment fee resulting in a negative 16 bp impact on the net interest margin for the second quarter.   

The net interest margin for the six months ending June 30, 2021 was 3.95% (3.93% excluding PPP) compared with 4.03% (4.11% excluding PPP) for the same period in 2020. The decrease in the net interest margin is due to lower yields on loans, federal funds and increased borrowing costs partially offset by lower deposits costs. In the first six months of the year, the Company prepaid FHLB term advances and recorded $1.2 million in prepayment fees resulting in a negative 17 bp impact on the net interest margin.

Non-Interest Income

Non-interest income was $2.8 million for the second quarter of 2021, representing a $934 thousand or 50% increase compared to the first quarter of 2021 and a $1.4 million or 103.6% increase compared to the same period in 2020. The increase in non-interest income for the quarter is primarily due to $850 thousand in additional revenue from SBA loans sales recorded in quarter. The increase in non-interest income compared to a year ago is primarily due to $2.1 million in additional gains from the sale of SBA loans partially offset by a $751 thousand decrease in investment gains due to no investment security sales in the second quarter of this year.   SBA loan sales for the second quarter were $19.4 million with a 15.2% trade premium compared with $13.2 million with a 14.1% trade premium in the first quarter of 2021 and $3.4 million with a 10.4% trade premium in the second quarter of 2020.

Non-interest income for the six months ending June 30, 2021 was $4.7 million compared with $2.5 million for the same period in 2020. The increase in non-interest income was primarily due to increased revenue from the sale of SBA loans partially offset by no investment securities gains in the current year. SBA loans sales for the first six months were $32.6 million with a 14.7% trade premium compared to $14.7 million with a 9.9% trade premium in 2020.

Non-Interest Expense

Non-interest expense was $9.2 million for the second quarter of 2021 representing a $1.4 million or 17.8% increase compared to the first quarter of 2021 and a $452 thousand or 5.2% increase, compared to the same period in 2020. The increase in expenses for the quarter was primarily due to increases in salaries and benefits, professional fees and other expense. The increase in compensation and benefits is due to the full quarter impact of merit increases, additions to staff, one additional payroll cycle in the quarter and a decrease in deferred labor costs. The increase in professional fees was due to increases in legal and audit expense. The increase in other expense is primarily due to increases in marketing and business development expenses related to our emphasis on resuming in person marketing efforts. The increase in expenses compared to the same quarter in 2020 is due in increases in compensation and benefits, professional fees, and data processing.

Non-interest expense for the six months ending June 30, 2021 was $16.9 million compared with $17.4 million for the same period in 2020. The $436 thousand decrease was due to lower compensation and benefits and occupancy costs partially offset by increased data processing expense. The decrease in compensation and benefits is partially due to lower salary expense, greater deferred labor cost and lower vacation expense.

Balance Sheet

At June 30, 2021, the Company reported total assets of $1.4 billion representing an increase of $23 million or 1.7% compared to the first quarter of 2021 and an increase of $108.8 million or 8.5% compared to June 30, 2020. The increase in assets for the quarter was due to increases in loans and investment securities offset by a decrease in cash and due from banks. Loans increased $82.6 million or 7.6% in the quarter due to a $105.7 million increase in non-SBA PPP loans offset by a $23.1 million decrease in SBA-PPP loans. Total deposits were $1.2 billion representing an increase of $41.8 million, or 3.6%, compared to the first quarter of 2021 and an increase of $168.8 million, or 16.3%, compared to June 30, 2020. Total non-interest-bearing deposits represented 50% of total deposits at June 30, 2021 compared with 50% at March 31, 2021 and 44% at June 30, 2020.   During the quarter, total FHLB advances decreased $20 million due to contractual maturities and the decision to prepay longer-term FHLB advances with a prepayment cost of $535 thousand.

Asset Quality and Loan Deferrals

The Allowance for Loan Losses increased $1.2 million to $15.7 million in the quarter with a resulting coverage ratio of 1.33% of total loans outstanding, including PPP loans, compared to $14.6 million or 1.33% at the first quarter of 2021 and $11.1 million or 1.08% at the second quarter of 2020. The increase in the Allowance for Loan Losses was primarily due to loan growth and qualitative factors related to the general economic outlook in the markets we serve. The coverage ratio at June 30, 2021, excluding the impact of PPP loans, decreased to 1.46% from 1.52% in the prior quarter.

As of June 30, 2021, there were no doubtful credits or charge offs, no past due loans and Classified assets totaled $11 million. Classified assets included one real estate loan totaling $1.5 million on non-accrual and the remaining $9.5 million consisted of ten loans with three borrowers related to the impacts of COVID-19.

At June 30, 2021, two loans totaling $1.9 million are on COVID-19 related deferrals. No new deferrals were granted during the quarter and of the loans on deferral one loan for $1.1 million is real estate secured with an average LTV of 51% and the other loan for $750 thousand is unsecured. The remaining loans that were granted payment deferrals have resumed their contractual payments.

“The record last twelve months EPS of $2.81 reflects the resilience of CalPrivate Bank’s mix of revenue streams. Strong loan growth and SBA activities, fees on PPP loan forgiveness, and the strategic management of funding sources, including increased non-interest deposit balances, is a result of the Team’s commitment to our relationship business model based on distinctly superior client service and solutions which continue differentiating the Bank in the markets we serve,” said Selwyn Isakow Chairman of the Board of the Company and Bank.

Isakow added, “The Bank’s outstanding client base together with solid credit underwriting and loan portfolio processes and relationship managers, resulted in the decline of loans on deferrals and zero delinquent loans at the end of the quarter. The Bank remains financially strong and well-positioned for sustainable future growth within clearly defined risk management parameters.”

About Private Bancorp of America, Inc.

Private Bancorp of America, Inc. (OTCQX: PBAM), is the holding company for CalPrivate Bank. CalPrivate Bank provides a Distinctly Different banking experience through unparalleled service and creative funding solutions to high net worth individuals, professionals, locally owned businesses and real estate entrepreneurs. Customers are serviced through offices in Coronado, San Diego, La Jolla, Newport Beach, El Segundo and Beverly Hills as well as efficient electronic banking offerings. The Bank also offers various portfolio and government guaranteed lending programs, including SBA and cross-border Export-Import Bank programs. CalPrivate Bank is an SBA Preferred Lender and a Bauer Financial 5 star rated bank.

Investor Relations Contact

Rick SowersPresident and CEOPrivate Bancorp of America, Inc.(424) 303-4894

Safe Harbor Paragraph

This press release includes forward-looking statements that involve inherent risks and uncertainties. Private Bancorp of America, Inc. cautions readers that a number of important factors could cause actual results to differ materially from those in the forward‐looking statements. These factors include the effects of the COVID-19 pandemic and related government actions on the Bank and its customers, loan losses, economic conditions and competition in the geographic and business areas in which Private Bancorp of America, Inc. operates, our ability to successfully integrate and develop business through the addition of new personnel and facilities and merged banks, whether our efforts to expand loan, product and service offerings will prove profitable, the effects of the bank mergers and acquisitions in our markets, system failures and internet security, inflation, fluctuations in interest rates, legislation and governmental regulation. You should not place undue reliance on forward‐looking statements and we undertake no obligation to update those statements whether as a result of changes in underlying factors, new information, future events or otherwise.

PRIVATE BANCORP OF AMERICA, INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
(Dollars in thousands)
	June 30, 2021				March 31, 2021				Dollar change			Percentage change			June 30, 2020				Dollar change			Percentage change
Assets
Cash and due from banks	$	12,783			$	8,922			$	3,861		43.3	%		$	18,431			$	(5,648	)	-30.6	%
Interest-bearing deposits in other financial institutions		13,969				4,187				9,782		233.6	%			1,200				12,769		1064.1	%
Interest-bearing deposits at Federal Reserve Bank		65,356				151,641				(86,285	)	-56.9	%			179,615				(114,259	)	-63.6	%
Total cash and due from banks		92,108				164,750				(72,642	)	-44.1	%			199,246				(107,138	)	-53.8	%
Interest-bearing time deposits with other institutions		5,760				5,760				-		0.0	%			5,758				2		0.0	%
Investment securities available for sale		88,755				81,429				7,326		9.0	%			27,664				61,091		220.8	%
Loan held for sale		19,625				12,430				7,195		57.9	%			7,409				12,216		164.9	%
Loans, net of deferred fees and costs		1,164,611				1,082,000				82,611		7.6	%			1,019,100				145,511		14.3	%
Allowance for loan losses		(15,708	)			(14,561	)			(1,147	)	7.9	%			(11,100	)			(4,608	)	41.5	%
Net loans		1,148,903				1,067,439				81,464		7.6	%			1,008,000				140,903		14.0	%
Federal Home Loan Bank stock, at cost		4,909				4,602				307		6.7	%			4,602				307		6.7	%
Right of use asset		5,185				5,589				(404	)	-7.2	%			5,632				(447	)	-7.9	%
Premises and equipment, net		2,578				2,582				(4	)	-0.2	%			3,055				(477	)	-15.6	%
Other intangible assets		2,123				1,789				334		18.7	%			1,281				842		65.7	%
Deferred tax asset		7,012				5,982				1,030		17.2	%			4,141				2,871		69.3	%
Accrued interest receivable		3,501				3,659				(158	)	-4.3	%			3,556				(55	)	-1.5	%
Other assets		2,311				3,706				(1,395	)	-37.6	%			3,668				(1,357	)	-37.0	%
Total assets	$	1,382,770			$	1,359,717			$	23,053		1.7	%		$	1,274,012			$	108,758		8.5	%
Liabilities and Shareholders' Equity
Liabilities
Noninterest bearing	$	603,914			$	579,318			$	24,596		4.2	%		$	452,155			$	151,759		33.6	%
Interest Bearing		601,530				584,341				17,189		2.9	%			584,451				17,079		2.9	%
Total deposits		1,205,444				1,163,659				41,785		3.6	%			1,036,606				168,838		16.3	%
FHLB borrowings		30,000				50,000				(20,000	)	-40.0	%			105,000				(75,000	)	-71.4	%
Other borrowings		17,943				17,941				2		0.0	%			17,936				7		0.0	%
Accrued interest payable and other liabilities		13,059				16,507				(3,448	)	-20.9	%			14,097				(1,038	)	-7.4	%
Total liabilities		1,266,446				1,248,107				18,339		1.5	%			1,173,639				92,807		7.9	%
Shareholders' equity
Common stock		70,405				70,053				352		0.5	%			69,512				893		1.3	%
Additional paid-in capital		3,179				3,317				(138	)	-4.2	%			3,002				177		5.9	%
Retained earnings		42,810				38,510				4,300		11.2	%			26,984				15,826		58.6	%
Accumulated other comprehensive (loss) income		(70	)			(270	)			200		-74.1	%			875				(945	)	-108.0	%
Total stockholders' equity		116,324				111,610				4,714		4.2	%			100,373				15,951		15.9	%
Total liabilities and stockholders' equity	$	1,382,770			$	1,359,717			$	23,053		1.7	%		$	1,274,012			$	108,758		8.5	%

PRIVATE BANCORP OF AMERICA, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share amounts)
		For the three months ended
		June 30, 2021			March 31, 2021			Dollar change			Percentage change			June 30, 2020			Dollar change			Percentage change
Interest Income
Loans		$	14,637		$	14,159		$	478		3.4	%		$	13,293		$	1,344		10.1	%
Investment securities			351			306			45		14.7	%			251			100		39.8	%
Deposits in other financial institutions			40			58			(18	)	-31.0	%			91			(51	)	-56.0	%
Total interest income			15,028			14,523			505		3.5	%			13,635			1,393		10.2	%
Interest Expense
Deposits			409			517			(108	)	-20.9	%			1,356			(947	)	-69.8	%
Borrowings			1,020			1,220			(200	)	-16.4	%			659			361		54.8	%
Total interest expense			1,429			1,737			(308	)	-17.7	%			2,015			(586	)	-29.1	%
Net interest income			13,599			12,786			813		6.4	%			11,620			1,979		17.0	%
Provision for loan losses			1,146			300			846		282.0	%			1,511			(365	)	-24.2	%
Net interest income after provision for loan losses			12,453			12,486			(33	)	-0.3	%			10,109			2,344		23.2	%
Noninterest income:
Service charges on deposit accounts			231			224			7		3.1	%			143			88		61.5	%
Net gain on sale of loans			2,326			1,476			850		57.6	%			210			2,116		1007.6	%
Gain on sale of investment securities			-			-			-		0.0	%			751			(751	)	-100.0	%
Other noninterest income			248			171			77		45.0	%			274			(26	)	-9.5	%
Total noninterest income			2,805			1,871			934		49.9	%			1,378			1,427		103.6	%
Noninterest expense:
Salary and employee benefits			5,966			4,915			1,051		21.4	%			5,790			176		3.0	%
Occupancy and equipment			820			810			10		1.2	%			900			(80	)	-8.9	%
Data processing			690			635			55		8.7	%			561			129		23.0	%
Professional services			791			650			141		21.7	%			628			163		26.0	%
Other expenses			891			763			128		16.8	%			827			64		7.7	%
Total noninterest expense			9,158			7,773			1,385		17.8	%			8,706			452		5.2	%
Income before provision for income taxes			6,100			6,584			(484	)	-7.4	%			2,781			3,319		119.3	%
Provision for income taxes			1,806			1,977			(171	)	-8.6	%			711			1,095		154.0	%
Net income		$	4,294		$	4,607		$	(313	)	-6.8	%		$	2,070		$	2,224		107.4	%
Net income available to common shareholders		$	4,231		$	4,529		$	(298	)	-6.6	%		$	2,038		$	2,193		107.6	%
Earnings per share
Basic earnings per share		$	0.76		$	0.82		$	(0.06	)	-7.3	%		$	0.37		$	0.39		105.4	%
Diluted earnings per share		$	0.75		$	0.81		$	(0.06	)	-7.4	%		$	0.37		$	0.38		102.7	%
Average shares outstanding			5,536,111			5,514,887			21,224		0.4	%			5,435,155			100,956		1.9	%
Diluted average shares outstanding			5,622,075			5,579,477			42,598		0.8	%			5,453,597			168,478		3.1	%

PRIVATE BANCORP OF AMERICA, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share amounts)
		For the six months ended
		June 30, 2021			June 30, 2020			Dollar change			Percentage change
Interest Income
Loans		$	28,796		$	26,421		$	2,375		9.0	%
Investment securities			656			652			4		0.6	%
Deposits in other financial institutions			99			395			(296	)	-74.9	%
Total interest income			29,551			27,468			2,083		7.6	%
Interest Expense
Deposits			926			3,066			(2,140	)	-69.8	%
Borrowings			2,239			1,248			991		79.4	%
Total interest expense			3,165			4,314			(1,149	)	-26.6	%
Net interest income			26,386			23,154			3,232		14.0	%
Provision for loan losses			1,446			2,508			(1,062	)	-42.3	%
Net interest income after provision for loan losses			24,940			20,646			4,294		20.8	%
Noninterest income:
Service charges on deposit accounts			454			317			137		43.2	%
Net gain on sale of loans			3,802			889			2,913		327.7	%
Gain on sale of investment securities			-			751			(751	)	-100.0	%
Other noninterest income			420			568			(148	)	-26.1	%
Total noninterest income			4,676			2,525			2,151		85.2	%
Noninterest expense:
Salary and employee benefits			10,881			11,343			(462	)	-4.1	%
Occupancy and equipment			1,630			1,784			(154	)	-8.6	%
Data processing			1,326			1,079			247		22.9	%
Professional services			1,441			1,487			(46	)	-3.1	%
Other expenses			1,654			1,675			(21	)	-1.3	%
Total noninterest expense			16,932			17,368			(436	)	-2.5	%
Income before provision for income taxes			12,684			5,803			6,881		118.6	%
Provision for income tax			3,784			1,827			1,957		107.1	%
Net income		$	8,900		$	3,976		$	4,924		123.8	%
Net income available to common shareholders		$	8,761		$	3,909		$	4,852		124.1	%
Earnings per share
Basic earnings per share		$	1.59		$	0.71		$	0.88		123.9	%
Diluted earnings per share		$	1.56		$	0.71		$	0.85		119.7	%
Average shares outstanding			5,525,557			5,488,160			37,397		0.7	%
Diluted average shares outstanding			5,601,705			5,530,697			71,008		1.3	%

		PRIVATE BANCORP OF AMERICA, INC.
		Consolidated average balance sheet, interest, yield and rates
		(Unaudited)
		(Dollars in thousands)
		For the three months ended
		June 30, 2021									March 31, 2021									June 30, 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		$	137,902		$	40		0.12	%		$	227,393		$	58		0.10	%		$	231,621		$	91		0.16	%
Investment securities			88,132			351		1.59	%			59,227			306		2.07	%			38,539			251		2.61	%
Loans			1,125,958			14,637		5.21	%			1,044,828			14,159		5.50	%			1,008,220			13,293		5.30	%
Total interest-earning assets			1,351,992			15,028		4.46	%			1,331,448			14,523		4.42	%			1,278,380			13,635		4.29	%
Noninterest-earning assets			18,217									31,439									15,104
Total Assets		$	1,370,209								$	1,362,887								$	1,293,484
Interest-Bearing Liabilities
Interest-bearing transaction accounts		$	65,283		$	12		0.07	%		$	58,042		$	12		0.08	%		$	73,509		$	26		0.14	%
Money market			424,371			231		0.22	%			431,423			235		0.22	%			394,523			476		0.49	%
Savings deposits			9,229			2		0.09	%			8,766			2		0.09	%			8,863			2		0.09	%
Certificates of deposit			75,537			164		0.87	%			100,521			268		1.08	%			126,545			852		2.71	%
Total Interest-Bearing Deposits			574,420			409		0.29	%			598,752			517		0.35	%			603,440			1,356		0.90	%
FHLB advances			41,153			748		7.29	%			73,056			948		5.26	%			100,385			387		1.55	%
Other borrowings			17,942			272		6.06	%			17,940			272		6.06	%			17,934			272		6.07	%
Total Interest-Bearing Liabilities			59,095			1,020		6.92	%			90,996			1,220		5.44	%			118,319			659		2.24	%
Noninterest-bearing deposits			609,932									547,024									458,631
Total Funding Sources			1,243,447			1,429		0.46	%			1,236,772			1,737		0.57	%			1,180,390			2,015		0.69	%
Noninterest-bearing liabilities			11,881									15,831									12,964
Shareholders' equity			114,881									110,284									100,130
Total Liabilities and Shareholders' Equity		$	1,370,209								$	1,362,887								$	1,293,484
Net interest spread								4.00	%								3.85	%								3.60	%
Net interest income					$	13,599								$	12,786								$	11,620
Net interest margin								4.03	%								3.89	%								3.66	%

		PRIVATE BANCORP OF AMERICA, INC.
		Consolidated average balance sheet, interest, yield and rates
		(Unaudited)
		(Dollars in thousands)
		For the six months ended
		June 30, 2021									June 30, 2020
		Average Balance			Interest			Average Yield/Rate			Average Balance			Interest			Average Yield/Rate
Interest-Earnings Assets:
Deposits in other financial institutions		$	187,826		$	99		0.11	%		$	163,332		$	394		0.49	%
Investment securities			73,759			656		1.79	%			46,778			652		2.79	%
Loans			1,085,617			28,796		5.35	%			944,937			26,422		5.62	%
Total interest-earning assets			1,347,202			29,551		4.42	%			1,155,047			27,468		4.78	%
Noninterest-earning assets			19,368									35,816
Total Assets		$	1,366,570								$	1,190,863
Interest-Bearing Liabilities
Interest-bearing transaction accounts		$	61,682		$	24		0.08	%		$	78,490		$	191		0.49	%
Money market			427,877			466		0.22	%			392,526			1,448		0.74	%
Savings deposits			8,999			5		0.11	%			9,037			8		0.18	%
Certificates of deposit			87,960			431		0.99	%			120,621			1,419		2.37	%
Total Interest-Bearing Deposits			586,518			926		0.32	%			600,674			3,066		1.03	%
FHLB advances			57,017			1,696		6.00	%			81,889			704		1.73	%
Other borrowings			17,941			544		6.11	%			17,934			544		6.07	%
Total Interest-Bearing Liabilities			74,958			2,240		6.03	%			99,823			1,248		2.51	%
Noninterest-bearing deposits			578,652									378,525
Total Funding Sources			1,240,128			3,166		0.51	%			1,079,022			4,314		0.80	%
Noninterest-bearing liabilities			13,845									12,993
Shareholders' equity			112,597									98,848
Total Liabilities and Shareholders' Equity		$	1,366,570								$	1,190,863
Net interest spread								3.91	%								3.98	%
Net interest income					$	26,385								$	23,154
Net interest margin								3.95	%								4.03	%

	PRIVATE BANCORP OF AMERICA, INC.
	Condensed Balance Sheets
	(Unaudited)
	(Dollars in thousands, except per share amounts)
	Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sep 30, 2020				Jun 30, 2020
Assets
Cash and due from banks	$	92,108			$	164,750			$	276,225			$	155,346			$	199,246
Interest-bearing time deposits with other institutions		5,760				5,760				5,760				5,760				5,758
Investment securities		88,755				81,429				26,086				26,525				27,664
Loans held for sale		19,625				12,430				9,687				8,402				7,409
Loans (excluding SBA PPP loans)		1,030,871				948,260				936,532				880,174				865,603
SBA PPP loans		133,740				133,740				62,338				154,210				153,497
Allowance for loan losses		(15,708	)			(14,561	)			(14,262	)			(12,682	)			(11,100	)
Net loans		1,148,903				1,067,439				984,608				1,021,702				1,008,000
Right of use asset		5,185				5,589				5,990				5,186				5,632
Premises and equipment, net		2,578				2,582				2,649				2,859				3,055
Other assets and interest receivable		19,856				19,738				18,735				18,414				17,248
Total assets	$	1,382,770			$	1,359,717			$	1,329,740			$	1,244,194			$	1,274,012
Liabilities and Shareholders' Equity
Liabilities
Noninterest Bearing	$	603,914			$	579,318			$	531,732			$	471,324			$	452,155
Interest Bearing		601,530				584,341				581,216				557,455				584,451
Total Deposits		1,205,444				1,163,659				1,112,948				1,028,779				1,036,606
Borrowings		47,943				67,941				92,939				97,938				122,936
Accrued interest payable and other liabilities		13,059				16,507				16,100				14,227				14,097
Total liabilities		1,266,446				1,248,107				1,221,987				1,140,944				1,173,639
Shareholders' equity
Common stock		70,405				70,053				69,557				69,540				69,512
Additional paid-in capital		3,179				3,317				3,496				3,230				3,002
Retained earnings		42,810				38,510				33,904				29,521				26,984
Accumulated other comprehensive (loss) income		(70	)			(270	)			796				959				875
Total shareholders' equity		116,324				111,610				107,753				103,250				100,373
Total liabilities and shareholders' equity	$	1,382,770			$	1,359,717			$	1,329,740			$	1,244,194			$	1,274,012
Book value per common share	$	20.71			$	19.87			$	19.24			$	18.50			$	17.99
Tangible book value per common share	$	20.33			$	19.55			$	18.95			$	18.26			$	17.76
Shares outstanding		5,617,020				5,618,324				5,600,508				5,580,456				5,578,884
	Regulatory Capital Ratios (PBAM) 1
	Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sep 30, 2020				Jun 30, 2020
Tier 1 leverage ratio		8.30	%			8.07	%			8.52	%			7.92	%			7.57	%
Tier 1 risk-based capital ratio		11.62	%			11.35	%			11.20	%			11.35	%			9.66	%
Common equity Tier 1 ratio		11.62	%			11.35	%			11.20	%			11.35	%			9.66	%
Total risk-based capital ratio		14.69	%			14.46	%			14.36	%			14.63	%			12.60	%
Tangible equity / tangible assets		8.27	%			8.09	%			7.99	%			8.20	%			7.79	%
1 Preliminary ratios for June 30, 2021

	PRIVATE BANCORP OF AMERICA, INC.
	Condensed Statements of Income
	(Unaudited)
	(Dollars in thousands, except per share amounts)
	Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sep 30, 2020				Jun 30, 2020
Interest income	$	15,028			$	14,523			$	15,826			$	13,860			$	13,635
Interest expense		1,429				1,737				1,209				1,363				2,015
Net interest income		13,599				12,786				14,617				12,497				11,620
Provision for loan losses		1,146				300				1,579				1,582				1,511
Net interest income after provision for loan losses		12,453				12,486				13,038				10,915				10,109
Noninterest income		2,805				1,871				1,636				936				1,378
Salary and employee benefits		5,966				4,915				5,293				5,365				5,790
Occupancy and equipment		820				810				774				864				900
Data processing		690				635				624				643				561
Professional services		791				650				949				514				628
Other expenses		891				763				780				846				827
Total noninterest expense		9,158				7,773				8,420				8,232				8,706
Income before provision for income taxes		6,100				6,584				6,254				3,619				2,781
Income taxes		1,806				1,977				1,874				1,084				711
Net income	$	4,294			$	4,607			$	4,380			$	2,535			$	2,070
Net income available to common shareholders	$	4,231			$	4,529			$	4,307			$	2,499			$	2,038
Earnings per share
Basic earnings per share	$	0.76			$	0.82			$	0.78			$	0.45			$	0.37
Diluted earnings per share	$	0.75			$	0.81			$	0.78			$	0.45			$	0.37
Average shares outstanding		5,536,111				5,514,887				5,501,272				5,499,970				5,435,155
Diluted average shares outstanding		5,622,075				5,579,477				5,540,232				5,516,013				5,453,597
	Performance Ratios
	Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sep 30, 2020				Jun 30, 2020
ROAA		1.26	%			1.37	%			1.41	%			0.79	%			0.64	%
ROAE		14.99	%			16.94	%			16.30	%			9.84	%			8.31	%
ROTE		15.25	%			17.19	%			16.54	%			9.96	%			8.42	%
Net interest margin		4.03	%			3.89	%			4.74	%			3.94	%			3.66	%
Net interest spread		4.00	%			3.85	%			4.71	%			3.90	%			3.60	%
Efficiency ratio		55.83	%			53.03	%			51.81	%			61.28	%			66.98	%
Noninterest expense / average assets		2.68	%			2.31	%			2.71	%			2.58	%			2.71	%

	PRIVATE BANCORP OF AMERICA, INC.
	Average Balances
	(Unaudited)
	(Dollars in thousands)
	Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sep 30, 2020				Jun 30, 2020
Total assets	$	1,370,209			$	1,362,887			$	1,234,611			$	1,271,363			$	1,293,484
Earning assets	$	1,351,992			$	1,331,448			$	1,225,806			$	1,260,834			$	1,278,380
Total loans	$	1,125,958			$	1,044,828			$	1,005,712			$	1,037,195			$	1,008,220
Total deposits	$	1,184,352			$	1,145,776			$	1,017,389			$	1,036,223			$	1,062,071
Total equity	$	114,881			$	110,284			$	106,874			$	102,539			$	100,130
	Loan Balances by Type
	(Dollars in thousands)
	Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sep 30, 2020				Jun 30, 2020
Real estate - investor owned	$	293,461			$	247,928			$	243,745			$	231,787			$	234,806
Real estate - owner occupied		313,579				284,494				268,193				259,375				240,587
Real estate - multifamily		72,790				75,361				69,187				64,268				66,431
Real estate - single family		90,223				75,353				67,522				59,994				57,521
Commercial business		244,493				227,635				251,711				228,914				231,885
SBA PPP loans		110,673				133,740				62,338				154,210				153,497
Land and construction		32,413				30,103				29,377				28,277				26,327
Consumer		6,979				7,386				6,797				7,559				8,046
Total loans held for investment		1,164,611				1,082,000				998,870				1,034,384				1,019,100
Loans held for sale		19,625				12,430				9,687				8,402				7,409
Total loans, including loans held for sale		1,184,236				1,094,430				1,008,557				1,042,786				1,026,509
Allowance for loan losses		(15,708	)			(14,561	)			(14,262	)			(12,682	)			(11,100	)
Net loans	$	1,168,528			$	1,079,869			$	994,295			$	1,030,104			$	1,015,409
	Deposits by Type
	(Dollars in thousands)
	Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sep 30, 2020				Jun 30, 2020
Non interest bearing DDA	$	603,914			$	579,318			$	531,732			$	471,324			$	452,155
Interest bearing DDA		70,320				59,399				60,606				56,837				63,805
Savings & MMA		463,165				423,957				424,540				396,233				427,685
Retail CD		5,827				5,855				7,770				8,401				8,493
Jumbo CD		62,218				95,130				88,300				95,984				84,468
Total deposits	$	1,205,444			$	1,163,659			$	1,112,948			$	1,028,779			$	1,036,606
	Asset Quality
	(Dollars in thousands)
	Jun 30, 2021				Mar 31, 2021				Dec 31, 2020				Sep 30, 2020				Jun 30, 2020
Total loans, including loans held for sale	$	1,184,236			$	1,094,430			$	1,008,557			$	1,042,786			$	1,026,509
30-89 day past due loans	$	-			$	-			$	-			$	-			$	-
90+ day past due loans	$	-			$	-			$	-			$	-			$	-
Nonaccrual loans	$	1,540			$	1,609			$	1,609			$	1,743			$	-
NPAs / Assets		0.11	%			0.12	%			0.12	%			0.14	%			0.00	%
NPLs / loans & OREO		0.13	%			0.15	%			0.16	%			0.17	%			0.00	%
Net quarterly charge-offs	$	-			$	-			$	-			$	-			$	-
Net charge-offs/avg loans (annualized)		0.00	%			0.00	%			0.00	%			0.00	%			0.00	%
Allowance for loan losses to loans		1.33	%			1.33	%			1.41	%			1.22	%			1.08	%
Allowance for loan losses to nonaccrual loans		1020.00	%			904.97	%			886.39	%			727.60	%			NM

Source: Private Bancorp of America, Inc.

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