Private Bancorp of America, Inc. Reports Record Third Quarter 2020 Financial Results - Private Bancorp (OTC:PBAM)

Net income for the quarter was $2.5 million, or $0.45 per diluted share
Net interest margin for the quarter was 3.94% compared to 3.66% in the prior quarter
Total loans were $1.0 billion up 2% for the quarter
Allowance for loan losses ("ALL") to total loans of 1.22%
No doubtful credits or charge offs in the quarter and no loan delinquencies at end of quarter
Non-performing assets represent 0.14% of total assets
COVID-19 loan deferrals declined to $34.4 million, or 3% of total loans from $97.5 million the prior quarter
Total deposits were $1.0 billion down 1% for the quarter and up 25% year-over-year
Non-interest-bearing deposits increased 4% during the quarter and represent 46% of total deposits
Cost of deposits were 0.27% in the third quarter, compared with 0.51% in the prior quarter
Non-interest expense declined 5%, compared to the second quarter

LA JOLLA, Calif., Oct. 26, 2020 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. PBAM, ("Company") and CalPrivate Bank ("Bank") announced unaudited financial results for the third quarter ending September 30, 2020. For the third quarter of 2020, the Company reported net income of $2.5 million or $0.45 per diluted share.

The Bank remains concerned about the safety and prosperity of our employees and clients during the ongoing COVID-19 crisis and during the quarter resumed normal branch hours at most of our locations. The Bank has $154.2 million in SBA PPP loans outstanding and worked with clients during the quarter to submit applications to the SBA for loan forgiveness. By the end of the quarter 206 loans representing $99.8 million in loan balances and $3.2 million in potential loan fees had been submitted to the SBA.

As of September 2020, the number of COVID-19 related loan deferrals decreased to 16 loans totaling $34.4 million or 3% of total loans from 56 loans and $97.5 million in the second quarter of 2020. The Bank had no past due loans at the end of the quarter and two loans totaling $1.7 million on non-accrual. Criticized assets were $4.9 million, consisting of 5 relationships all related to the impacts of COVID-19. Classified assets increased $3.6 million to $7.7 million at quarter end, of which the largest loan was a well secured $3.5 million credit. There were no doubtful credits or charge offs in the quarter.

The Allowance for Loan Losses increased $1.6 million to $12.7 million in the quarter with a resulting coverage ratio of 1.22% of total loans outstanding, including PPP loans, compared to $11.1 million or 1.08% at the second quarter of 2020 and $7.9 million or 0.96% at the third quarter of 2019. The increase in the Allowance for Loan Losses was primarily due to qualitative factors related to the general economic outlook in the markets we serve and the potential impact on the loan portfolio resulting from economic uncertainties related to COVID-19. Excluding the impact of PPP loans, the coverage ratio on the loan portfolio increased to 1.43%.

Rick Sowers, President and CEO of the Company and the Bank stated, "The Team continues to focus on the safety and prosperity of our clients and the communities we serve through our Relationship based business model. We are pleased with the continued progress we are making in increasing our operating leverage, reducing expenses, protecting our net interest margin and growing the Bank in a safe and sound manner. The third quarter included higher gain on sale from loans generated by our SBA Team and a significant reduction in deposit and funding costs."

The Company reported net income of $2.5 million or $0.45 per diluted share for the quarter ended September 30, 2020 compared with net income of $2.1 million or $0.37 per diluted share in the second quarter and a loss of $5 million or $0.89 per diluted share for the same period last year. Net interest income was $12.5 million for the third quarter of 2020, representing an $877 thousand or 7.50%, increase compared to the second quarter of 2020 and a $1.5 million or 13.9% increase, compared to the same period in 2019. Net interest margin for the third quarter of 2020 was 3.94% compared with 3.66% for the second quarter of 2020 and 4.67% for the same period in 2019. The increase in the net interest margin for the quarter was attributable to lower funding costs as a result of proactive repositioning and repricing of the deposit portfolio. The yield on earning assets for the third quarter of 2020 was 4.37% compared with 4.29% in the second quarter and 5.63% for the same period in 2019. The yield on loans for the quarter decreased to 5.21% compared to 5.30% in the second quarter of this year and decreased from 6.07% in the third quarter of 2019. The cost of total funding sources was 0.47% for the quarter compared with 0.69% in the second quarter and 1.04% for the same period in 2019.

Non-interest income was $936 thousand for the third quarter of 2020, representing a $442 thousand or 32% decrease compared to the second quarter of 2020 and a $352 thousand or 60% increase compared to the same period in 2019. The decrease in non-interest income for the quarter is due to $751 thousand in security gains recorded in the second quarter partially offset by a $344 thousand increase in revenues from SBA loan sales. The increase in non-interest income compared to a year ago is primarily due to $391 thousand in additional gains from the sale of SBA loans partially offset by $125 thousand in securities gains recorded in the third quarter of 2019. SBA loan sales for the third quarter were $6.2 million with a 13.8% trade premium compared with $3.4 million with a 10.4% trade premium in the second quarter of 2020 and $4.4 million with a 10.5% trade premium in the third quarter of 2019.

Non-interest expense was $8.2 million for the third quarter of 2020 representing a $474 thousand decrease, or 5%, compared to the second quarter of 2020 and a $699 thousand, or 8% decrease, compared to the same period in 2019. The decrease in second quarter expenses was primarily due to decreases in salaries and benefits and professional fees. The decrease compared to the first quarter of 2019 was due to decreases in salaries and benefits and professional services partially offset by an increase in other expense.

The Company reported total assets of $1.2 billion at September 30, 2020, representing a decrease of $29.8 million or 2% compared to the second quarter of 2020 and an increase of $244 million or 24% compared to the same period in 2019. The decrease in assets was largely due to repaying term FHLB advances offset by a $16.2 million, or 2% increase in loans, from the second quarter to $1.0 billion at September 30, 2020 and increased $221.8 million, or 27%, from the third quarter of 2019. Substantially all of the loan growth for the quarter was related to real estate loans.

"The Company continues to perform strongly. During the quarter, the CEO transition announced in January was completed. Rick Sowers is now President and CEO of both PBAM and CalPrivate Bank. We again thank Tom Wornham for leading the organization to where we are today," said Selwyn Isakow, Chairman of the Board of PBAM and the Bank. "The third quarter was highlighted by a higher net interest margin, improved efficiency ratio and greater clarity on the strength of the loan portfolio. The macro-environment in which we operate remains uncertain. Caution and diligence are our focus as we plan on taking advantage of dislocations in the industry to expand our client base with additional relationship-driven prospects seeking superior service and more creative solutions to their challenges and opportunities, provided by exceptional bankers."

On October 21, PBAM appointed Leda Csanka to the board of CalPrivate Bank, increasing the number of directors to thirteen. Ms. Csanka brings over 30 years of deep technology experience within financial services. She has held diverse IT and leadership roles with a multinational banking and financial services firm, having tenures within programming, architecture, infrastructure, standardization and strategic leadership for retail, direct and commercial banking, investment banking, asset management and insurance services. Ms. Csanka later became Chief Technology Officer and a member of the executive team of a leading broker-dealer that provided retail financial services to investment programs of banks and credit unions. Isakow stated, "We welcome Leda to the Bank board and are delighted to add someone who has such a depth of knowledge and understanding of technology in our industry at a time when our systems are integral to future exceptional client service and bank efficiency."

About Private Bancorp of America, Inc.

Private Bancorp of America, Inc. 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 Sowers
President and CEO
Private 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)

	September 30, 2020			June 30, 2020			Dollar change			Percentage change		September 30, 2019			Dollar change			Percentage change
Assets

Cash and due from banks	$	10,985		$	13,641		$	(2,656	)	-19.5	%	$	29,480		$	(18,495	)	-62.7	%
Interest-bearing deposits in other financial institutions		930			1,200			(270	)	-22.5	%		563			367		65.2	%
Interest-bearing deposits at Federal Reserve Bank		143,431			184,405			(40,974	)	-22.2	%		57,810			85,621		148.1	%
Total cash and due from banks		155,346			199,246			(43,900	)	-22.0	%		87,853			67,493		76.8	%
Interest-bearing time deposits with other institutions		5,760			5,758			2		0.0	%		2,255			3,505		155.4	%
Investment securities available for sale		26,525			27,664			(1,139	)	-4.1	%		73,170			(46,645	)	-63.7	%
Loans		1,042,786			1,026,509			16,277		1.6	%		820,989			221,797		27.0	%
Allowance for loan losses		(12,682	)		(11,100	)		(1,582	)	14.3	%		(7,893	)		(4,789	)	60.7	%
Net loans		1,030,104			1,015,409			14,695		1.4	%		813,096			217,008		26.7	%
Federal Home Loan Bank stock, at cost		4,602			4,602			-		0.0	%		4,060			542		13.3	%
Right of use asset		5,186			5,632			(446	)	-7.9	%		6,877			(1,691	)	-24.6	%
Premises and equipment, net		2,859			3,055			(196	)	-6.4	%		2,947			(88	)	-3.0	%
Other intangible assets		1,364			1,281			83		6.5	%		978			386		39.5	%
Deferred tax asset		4,141			4,141			-		0.0	%		4,409			(268	)	-6.1	%
Accrued interest receivable		3,883			3,556			327		9.2	%		2,569			1,314		51.1	%
Other assets		4,424			3,668			756		20.6	%		1,771			2,653		149.8	%
Total assets	$	1,244,194		$	1,274,012		$	(29,818	)	-2.3	%	$	999,985		$	244,209		24.4	%

Liabilities and Shareholders' Equity

Liabilities
Noninterest bearing	$	471,324		$	452,155		$	19,169		4.2	%	$	266,205		$	205,119		77.1	%
Interest Bearing		557,455			584,451			(26,996	)	-4.6	%		557,800			(345	)	-0.1	%
Total deposits		1,028,779			1,036,606			(7,827	)	-0.8	%		824,005			204,774		24.9	%
FHLB borrowings		80,000			105,000			(25,000	)	-23.8	%		55,000			25,000		45.5	%
Other borrowings		17,938			17,936			2		0.0	%		17,930			8		0.0	%
Accrued interest payable and other liabilities		14,227			14,097			130		0.9	%		9,779			4,448		45.5	%
Total liabilities		1,140,944			1,173,639			(32,695	)	-2.8	%		906,714			234,230		25.8	%

Shareholders' equity
Common stock		69,540			69,512			28		0.0	%		68,804			736		1.1	%
Additional paid-in capital		3,230			3,002			228		7.6	%		2,997			233		7.8	%
Retained earnings		29,521			26,984			2,537		9.4	%		20,917			8,604		41.1	%
Accumulated other comprehensive income		959			875			84		9.6	%		553			406		73.4	%
Total stockholders' equity		103,250			100,373			2,877		2.9	%		93,271			9,979		10.7	%

Total liabilities and stockholders' equity	$	1,244,194		$	1,274,012		$	(29,818	)	-2.3	%	$	999,985		$	244,209		24.4	%

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

	For the three months ended
	September 30, 2020		June 30, 2020		Dollar change			Percentage change		September 30, 2019			Dollar change			Percentage change
Interest Income
Loans	$	13,578	$	13,293	$	285		2.1	%	$	12,497		$	1,081		8.7	%
Investment securities		231		251		(20	)	-8.0	%		544			(313	)	-57.5	%
Deposits in other financial institutions		51		91		(40	)	-44.0	%		181			(130	)	-71.8	%
Total interest income		13,860		13,635		225		1.7	%		13,222			638		4.8	%

Interest Expense
Deposits		707		1,356		(649	)	-47.9	%		1,605			(898	)	-56.0	%
Borrowings		656		659		(3	)	-0.5	%		648			8		1.2	%
Total interest expense		1,363		2,015		(652	)	-32.4	%		2,253			(890	)	-39.5	%

Net interest income		12,497		11,620		877		7.5	%		10,969			1,528		13.9	%
Provision for loan losses		1,582		1,511		71		4.7	%		9,737			(8,155	)	-83.8	%
Net interest income after provision for loan losses		10,915		10,109		806		8.0	%		1,232			9,683		786.0	%

Noninterest income:
Service charges on deposit accounts		141		143		(2	)	-1.4	%		137			4		2.9	%
Net gain on sale of loans		554		210		344		163.8	%		163			391		239.9	%
Gain on sale of investment securities		0		751		(751	)	-100.0	%		125			(125	)	-100.0	%
Other noninterest income		241		274		(33	)	-12.0	%		159			82		51.6	%
Total noninterest income		936		1,378		(442	)	-32.1	%		584			352		60.3	%

Noninterest expense:
Salary and employee benefits		5,365		5,790		(425	)	-7.3	%		6,341			(976	)	-15.4	%
Occupancy and equipment		864		900		(36	)	-4.0	%		793			71		9.0	%
Data processing		643		561		82		14.6	%		588			55		9.4	%
Professional services		514		628		(114	)	-18.2	%		639			(125	)	-19.6	%
Other expenses		846		827		19		2.3	%		570			276		48.4	%
Total noninterest expense		8,232		8,706		(474	)	-5.4	%		8,931			(699	)	-7.8	%

Income (loss) before provision for income taxes		3,619		2,781		838		30.1	%		(7,115	)		10,734		-150.9	%
Provision for income taxes		1,084		711		373		52.5	%		(2,081	)		3,165		-152.1	%
Net income (loss)	$	2,535	$	2,070	$	465		22.5	%	$	(5,034	)	$	7,569		-150.4	%
Net income (loss) available to common shareholders	$	2,499	$	2,038	$	461		22.6	%	$	(4,950	)	$	7,449		-150.5	%

Earnings (loss) per share
Basic earnings (loss) per share	$	0.45	$	0.37	$	0.08		21.6	%	$	(0.91	)	$	1.36		-149.5	%
Diluted earnings (loss) per share	$	0.45	$	0.37	$	0.08		21.6	%	$	(0.89	)	$	1.34		-150.6	%

Average shares outstanding		5,499,970		5,435,155		64,815		1.2	%		5,465,278			34,692		0.6	%
Diluted average shares outstanding		5,516,013		5,453,597		62,416		1.1	%		5,563,931			(47,918	)	-0.9	%

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

	For the nine months ended
	September 30, 2020		September 30, 2019			Dollar change			Percentage change
Interest Income
Loans	$	39,999	$	34,449		$	5,550		16.1	%
Investment securities		883		1,818			(935	)	-51.4	%
Deposits in other financial institutions		446		440			6		1.4	%
Total interest income		41,328		36,707			4,621		12.6	%

Interest Expense
Deposits		3,773		4,152			(379	)	-9.1	%
Borrowings		1,904		1,863			41		2.2	%
Total interest expense		5,677		6,015			(338	)	-5.6	%

Net interest income		35,651		30,692			4,959		16.2	%
Provision for loan losses		4,091		11,122			(7,031	)	-63.2	%
Net interest income after provision for loan losses		31,560		19,570			11,990		61.3	%

Noninterest income:
Service charges on deposit accounts		457		347			110		31.7	%
Net gain on sale of loans		1,444		817			627		76.7	%
Gain on sale of investment securities		751		150			601		400.7	%
Other noninterest income		808		428			380		88.8	%
Total noninterest income		3,460		1,742			1,718		98.6	%

Noninterest expense:
Salary and employee benefits		16,707		17,462			(755	)	-4.3	%
Occupancy and equipment		2,649		2,109			540		25.6	%
Data processing		1,721		1,602			119		7.4	%
Professional services		2,001		1,395			606		43.4	%
Other expenses		2,521		2,153			368		17.1	%
Total noninterest expense		25,599		24,721			878		3.6	%

Income (loss) before provision for income taxes		9,421		(3,409	)		12,830		-376.4	%
Provision for income taxes		2,910		(1,014	)		3,924		-387.0	%
Net income (loss)	$	6,511	$	(2,395	)	$	8,906		-371.9	%
Net income (loss) available to common shareholders	$	6,407	$	(2,351	)	$	8,758		-372.5	%

Earnings (loss) per share
Basic earnings (loss) per share	$	1.17	$	(0.46	)	$	1.63		-354.3	%
Diluted earnings (loss) per share	$	1.16	$	(0.45	)	$	1.61		-357.8	%

Average shares outstanding		5,492,123		5,163,512			328,611		6.4	%
Diluted average shares outstanding		5,522,929		5,262,165			260,764		5.0	%

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

	For the three months ended
	September 30, 2020						June 30, 2020						September 30, 2019
	Average Balance		Interest		Average Yield/Rate		Average Balance		Interest		Average Yield/Rate		Average Balance		Interest		Average Yield/Rate
Interest-Earnings Assets:
Deposits in other financial institutions	$	191,912	$	51	0.11	%	$	231,621	$	91	0.16	%	$	35,658	$	181	2.01	%
Investment securities		31,727		231	2.91	%		38,539		251	2.61	%		79,842		544	2.73	%
Loans		1,037,195		13,578	5.21	%		1,008,220		13,293	5.30	%		816,281		12,497	6.07	%
Total interest-earning assets		1,260,834		13,860	4.37	%		1,278,380		13,635	4.29	%		931,781		13,222	5.63	%
Noninterest-earning assets		10,529						15,104						39,083
Total Assets	$	1,271,363					$	1,293,484					$	970,864

Interest-Bearing Liabilities
Interest-bearing transaction accounts	$	59,624	$	19	0.13	%	$	73,509	$	26	0.14	%	$	37,644	$	69	0.73	%
Money market		402,286		349	0.35	%		394,523		476	0.49	%		372,008		959	1.02	%
Savings deposits		9,024		2	0.09	%		8,863		2	0.09	%		7,099		5	0.28	%
Certificates of deposit		97,444		337	1.38	%		126,545		852	2.71	%		100,705		572	2.25	%
Total Interest-Bearing Deposits		568,378		707	0.49	%		603,440		1,356	0.90	%		517,456		1,605	1.23	%

FHLB advances		100,924		384	1.51	%		100,385		387	1.55	%		63,301		376	2.36	%
Other borrowings		17,937		272	6.07	%		17,934		272	6.07	%		17,929		272	6.07	%
Total Interest-Bearing Liabilities		118,861		656	2.20	%		118,319		659	2.24	%		81,230		648	3.16	%

Noninterest-bearing deposits		467,845						458,631						261,365
Total Funding Sources		1,155,084		1,363	0.47	%		1,180,390		2,015	0.69	%		860,051		2,253	1.04	%

Noninterest-bearing liabilities		13,740						12,964						12,422

Shareholders' equity		102,539						100,130						98,391

Total Liabilities and Shareholders' Equity	$	1,271,363					$	1,293,484					$	970,864

Net interest spread					3.90	%					3.60	%					4.59	%

Net interest income			$	12,497					$	11,620					$	10,969
Net interest margin					3.94	%					3.66	%					4.67	%

	PRIVATE BANCORP OF AMERICA, INC.
	Condensed Balance Sheets
	(Unaudited)
	(Dollars in thousands, except per share amounts)
	Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019
Assets
Cash and due from banks	$	155,346		$	199,246		$	221,154		$	105,610		$	87,853
Interest-bearing time deposits with other institutions		5,760			5,758			5,756			5,758			2,255
Investment securities		26,525			27,664			49,327			51,179			73,170
Loans		1,042,786			1,026,509			894,076			885,556			820,989
Allowance for loan losses		(12,682	)		(11,100	)		(9,598	)		(8,601	)		(7,893	)
Net loans		1,030,104			1,015,409			884,478			876,955			813,096
Right of use asset		5,186			5,632			6,022			6,452			6,877
Premises and equipment, net		2,859			3,055			3,052			3,165			2,947
Other assets and interest receivable		18,414			17,248			16,092			16,868			13,787
Total assets	$	1,244,194		$	1,274,012		$	1,185,881		$	1,065,987		$	999,985

Liabilities and Shareholders' Equity

Liabilities
Noninterest Bearing	$	471,324		$	452,155		$	355,225		$	268,116		$	266,205
Interest Bearing		557,455			584,451			607,062			582,139			557,800
Total Deposits		1,028,779			1,036,606			962,287			850,255			824,005
Borrowings		97,938			122,936			112,934			107,932			72,930
Accrued interest payable and other liabilities		14,227			14,097			12,497			12,120			9,779
Total liabilities		1,140,944			1,173,639			1,087,718			970,307			906,714

Shareholders' equity
Common stock		69,540			69,512			69,165			69,159			68,804
Additional paid-in capital		3,230			3,002			3,254			3,048			2,997
Retained earnings		29,521			26,984			24,839			22,905			20,917
Accumulated other comprehensive income		959			875			905			568			553
Total shareholders' equity		103,250			100,373			98,163			95,680			93,271
Total liabilities and shareholders' equity	$	1,244,194		$	1,274,012		$	1,185,881		$	1,065,987		$	999,985

Book value per common share	$	18.50		$	17.99		$	17.57		$	17.15		$	16.84
Tangible book value per common share	$	18.26		$	17.76		$	17.35		$	16.96		$	16.66
Shares outstanding		5,580,456			5,578,884			5,586,270			5,577,968			5,539,938

	Regulatory Capital Ratios (PBAM) ¹
	Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019
Tier 1 leverage ratio		7.92	%		7.57	%		8.79	%		9.17	%		9.54	%
Tier 1 risk-based capital ratio		11.35	%		9.66	%		9.20	%		9.86	%		10.24	%
Common equity Tier 1 ratio		11.35	%		9.66	%		9.20	%		9.86	%		10.24	%
Total risk-based capital ratio		14.63	%		12.60	%		11.91	%		12.71	%		13.09	%
Tangible equity / tangible assets		8.20	%		7.79	%		8.18	%		8.88	%		9.24	%

¹ Preliminary ratios for Sept 30, 2020

	PRIVATE BANCORP OF AMERICA, INC.
	Condensed Statements of Income
	(Unaudited)
	(Dollars in thousands, except per share amounts)
	Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019
Interest income	$	13,860		$	13,635		$	13,834		$	13,472		$	13,222
Interest expense		1,363			2,015			2,299			2,400			2,253
Net interest income		12,497			11,620			11,535			11,072			10,969
Provision for loan losses		1,582			1,511			997			708			9,737
Net interest income after provision for loan losses		10,915			10,109			10,538			10,364			1,232

Noninterest income		936			1,378			1,146			1,021			584

Salary and employee benefits		5,365			5,790			5,552			5,427			6,341
Occupancy and equipment		864			900			884			832			793
Data processing		643			561			518			631			588
Professional services		514			628			859			726			639
Other expenses		846			827			848			946			570
Total noninterest expense		8,232			8,706			8,661			8,562			8,931

Income (loss) before provision for income taxes		3,619			2,781			3,023			2,823			(7,115	)
Income taxes		1,084			711			1,116			857			(2,081	)
Net income (loss)	$	2,535		$	2,070		$	1,907		$	1,966		$	(5,034	)
Net income (loss) available to common shareholders	$	2,499		$	2,038		$	1,874		$	1,931		$	(4,950	)

Earnings (loss) per share
Basic earnings (loss) per share	$	0.45		$	0.37		$	0.34		$	0.36		$	(0.91	)
Diluted earnings (loss) per share	$	0.45		$	0.37		$	0.34		$	0.35		$	(0.89	)

Average shares outstanding		5,499,970			5,435,155			5,488,197			5,414,056			5,465,278
Diluted average shares outstanding		5,516,013			5,453,597			5,555,376			5,492,930			5,563,931

	Performance Ratios
	Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019
ROAA		0.79	%		0.64	%		0.70	%		0.77	%		-2.06	%
ROAE		9.84	%		8.31	%		7.86	%		8.53	%		-20.30	%
ROTE		9.96	%		8.42	%		7.96	%		8.01	%		-20.50	%
Net interest margin		3.94	%		3.66	%		4.46	%		4.47	%		4.67	%
Net interest spread		3.90	%		3.60	%		4.40	%		4.40	%		4.59	%
Efficiency ratio		61.28	%		66.98	%		68.30	%		70.80	%		77.30	%
Noninterest expense / average assets		2.58	%		2.71	%		3.20	%		3.33	%		3.65	%





Average assets	$	1,271,363		$	1,088,242		$	1,018,944		$	970,864		$	897,120

		4.021978022			4.021978022			3.967391304			3.967391304			4.010989011

Salary and employee benefits		1.70	%		2.14	%		2.16	%		2.22	%		2.84	%
Occupancy and equipment		0.27	%		0.33	%		0.34	%		0.34	%		0.35	%
Data processing		0.20	%		0.21	%		0.20	%		0.26	%		0.26	%
Professional services		0.16	%		0.23	%		0.33	%		0.30	%		0.29	%
Other expenses		0.27	%		0.31	%		0.33	%		0.39	%		0.25	%
		2.60	%		3.22	%		3.37	%		3.50	%		3.99	%

	PRIVATE BANCORP OF AMERICA, INC.
	Average Balances
	(Unaudited)
	(Dollars in thousands)
	Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019
Total assets	$	1,271,363		$	1,293,484		$	1,088,242		$	1,018,944		$	970,864
Earning assets	$	1,260,834		$	1,278,380		$	1,040,267		$	982,032		$	931,781
Total loans	$	1,037,195		$	1,008,220		$	881,655		$	845,199		$	816,281
Total deposits	$	1,036,223		$	1,062,071		$	896,327		$	842,229		$	778,821
Total equity	$	102,539		$	100,130		$	97,566		$	91,464		$	98,391


	Loan Balances by Type
	(Dollars in thousands)
	Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019
Real estate - investor owned	$	231,787		$	234,806		$	246,026		$	245,658		$	247,953
Real estate - owner occupied		250,286			240,587			234,771			225,778			192,739
Real estate - multifamily		64,268			66,431			67,550			68,308			68,536
Real estate - single family		59,994			57,521			58,429			59,487			59,782
Commercial business		237,316			231,832			245,610			243,438			204,166
SBA PPP loans		154,210			153,497			-			-			-
Land and construction		28,277			26,327			27,044			32,151			37,918
Consumer		7,559			8,046			7,300			6,172			5,585
Total loans held for investment		1,033,697			1,019,047			886,730			880,992			816,679
Loans held for sale		9,089			7,462			7,346			4,564			4,310
Total loans, including loans held for sale		1,042,786			1,026,509			894,076			885,556			820,989
Allowance for loan losses		(12,682	)		(11,100	)		(9,598	)		(8,601	)		(7,893	)
Net loans	$	1,030,104		$	1,015,409		$	884,478		$	876,955		$	813,096


	Deposits by Type
	(Dollars in thousands)
	Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019
Non interest bearing DDA	$	471,324		$	452,155		$	355,225		$	268,116		$	266,205
Interest bearing DDA		56,837			63,805			108,368			112,397			47,805
Savings & MMA		396,233			427,685			366,109			350,563			394,128
Retail CD		8,401			8,493			8,484			6,989			7,132
Jumbo CD		95,984			84,468			124,101			112,190			108,735
Total deposits	$	1,028,779		$	1,036,606		$	962,287		$	850,255		$	824,005


	Asset Quality
	(Dollars in thousands)
	Sep 30, 2020			Jun 30, 2020			Mar 31, 2020			Dec 31, 2019			Sep 30, 2019
Total Loans	$	1,042,786		$	1,026,509		$	894,076		$	885,556		$	820,989
30-89 day past due loans	$	-		$	-		$	297		$	-		$	-
90+ day past due loans	$	-		$	-		$	-		$	-		$	-
Nonaccrual loans	$	1,743		$	-		$	663		$	-		$	-

NPAs / Assets		0.14	%		0.00	%		0.06	%		0.00	%		0.00	%
NPLs / loans & OREO		0.17	%		0.00	%		0.07	%		0.00	%		0.00	%
Net quarterly charge-offs	$	-		$	-		$	-		$	-		$	9,481
Net charge-offs/avg loans (annualized)		0.00	%		0.00	%		0.00	%		0.00	%		4.65	%
Allowance for loan losses to loans		1.22	%		1.08	%		1.07	%		0.97	%		0.96	%
Allowance for loan losses to nonaccrual loans		727.60	%		NM			1447.66	%		NM			NM

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