Private Bancorp of America, Inc. Announces Second Quarter 2022 Financial Results - Private Bancorp (OTC:PBAM)

Second Quarter Highlights

Net income for the quarter was $4.4 million, up 2.4% from the same period in the prior year
Diluted earnings per share of $0.77, up 2.7% from the same period in the prior year
Total loans held-for-investment ("HFI"), excluding Paycheck Protection Program ("PPP") loans, reached $1.4 billion, an increase of $322.9 million or 30.6% year-over-year and $100.8 million or 7.9% over Q1'22
Non-interest-bearing demand deposits grew $143.0 million or 23.7% year over year and $22.5 million from the prior quarter to $747.0 million, representing 51.9% of total deposits
Net interest margin (ex-PPP loans) of 4.57% compared to 4.14% for Q1'21 and compared to 4.51% for Q1'22
Cost of funding sources remained low at 0.20%
The provision for loan losses for the second quarter of 2022 was $659 thousand, an increase of $517 thousand compared to the first quarter of 2022
Allowance for Loan Losses was 1.29% of total loans HFI (ex-PPP loans)
Tangible book value per share of $22.68, down $0.12 from Q1'22 related to a mark-to-market adjustment on the securities portfolio
Private Bancorp of America, Inc. ("PBAM") well capitalized Tier 1 risk-based capital ratio of 9.51% (preliminary)

LA JOLLA, Calif., July 21, 2022 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. PBAM, ("Company") and CalPrivate Bank ("Bank") announced unaudited financial results for the second quarter ending June 30, 2022. The Company reported net income of $4.4 million, or $0.77 per diluted share, for the second quarter of 2022 compared to $6.5 million, or $1.13 per diluted share for the first quarter of 2022.

Rick Sowers, President and CEO of the Company and the Bank stated, "CalPrivate's core franchise continued to organically grow loans and deposits which drove solid growth in net interest income to $18.0 million – our highest level yet. However, given the volatility of the interest rate and credit markets, we experienced a decline in our SBA 7(a) loan sales and the resulting gain on sale income for the quarter."

Sowers continued, "While global events and the rapidly changing environment have put pressure on the overall financial markets and on our own financial results, our model of providing a concierge experience through our dedicated Teams and our core mission of providing Relationships, Solutions, and Trust continues to resonate and provide a stabilizing force to our Clients. We have been able to organically grow net loans (ex-PPP loans) more than $100 million in Q2'22, representing linked-quarter growth of 7.9%.

While the Federal Reserve raised overnight borrowing costs substantially in the second quarter, given our deep Client Relationships and strong referral network, the Bank was able to grow non-interest bearing deposits by $22.5 million while keeping the overall cost of interest bearing deposits low at 0.25%."

Domestic events, including high inflation, have unfavorably resulted in increased non-interest expense, including employee compensation and professional services. The decline in SBA gain on sale was both a result of lower 7(a) loan volumes and a softer secondary market, which led to an increased efficiency ratio of 64.9% from 53.6% for Q1'22. While the industry faces significant headwinds, including an increased possibility of a recession, our Bank continues to invest in the infrastructure to become more efficient and to support the growth of our Relationship Teams committed to serving our Clients.

As a continuation of the Company's investments in innovation to support long-term growth and efficiency, during the second quarter, the Company made additional FinTech investments in BankTech Ventures and the Banktech Consortium Fund, two leading investment management firms focused on providing capital to companies driving innovation in the banking industry and keeping the Company in front of emerging trends.

"The financial earnings power of PBAM remains resilient based on the first half results of 2022. The Company's ability to organically grow loans attests to the Company's successful strategy to stay focused on providing a Distinctly Different service. Diluted EPS for the first half of 2022 of $1.91 is up 22.4% from the same period a year ago," said Selwyn Isakow, Chairman of the Board of the Company and the Bank.

Isakow added, "We are proud of CalPrivate's achievements and financial performance to date, however, we remain cautious on the overall macro-economy. We must remain vigilant in our credit and risk management practices as we continue to evaluate the possibility of a near-term global recession due to significant geopolitical and economic challenges stemming from high inflation, energy supply constraints, volatile global politics, and the on-going war in Ukraine."

STATEMENT OF INCOME

Net Interest Income

Net interest income for the second quarter totaled $18.0 million, representing an increase of $842 thousand or 4.9% compared to the first quarter of 2022. The increase in net interest income for the second quarter was primarily due to increases in organic non-PPP loan balances and higher rates. PPP interest and fee income was $224 thousand in Q2'22, compared to $751 thousand in Q1'22. As of June 30, 2022, only 12 PPP loans with total balances of $2.7 million remained unforgiven by the SBA. Interest expense on deposits increased $83 thousand in Q2'22 vs Q1'22 due to higher deposit totals and an increase in the deposit rates paid to Clients.

Net Interest Margin

The net interest margin for Q2'22 was 4.61% compared to 4.65% for the first quarter of 2022. Excluding PPP-loans, the net interest margin for Q2'22 was 4.57% compared to 4.51% for the first quarter of 2022. The 0.04% decrease in the as reported net interest margin for the second quarter was due to lower loan prepayments and higher cost of deposits. Average portfolio loan yields were 5.37% for Q2'22, compared to 5.51% for Q1'22, including loan prepayment fees. The yield on earning assets for the second quarter was 4.80% for Q2'22 compared with 4.82% for Q1'22 and the cost of funds was 0.20% for Q2'22 compared to 0.19% for Q1'22.

Provision for Loan Losses

The provision for loan losses for the second quarter was $659 thousand, an increase of $517 thousand compared to the first quarter of 2022. While the economy continued to recover in the second quarter, 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%.

Non-Interest Income

Non-interest income was $1.4 million for the second quarter, representing a $1.7 million decrease, compared to the first quarter of 2022. The decrease in non-interest income was primarily due to a decrease in SBA loans sales during second quarter compared to the first quarter of 2022. SBA loan sales for the second quarter were $9.9 million with a 10.5% average trade premium resulting in a net gain on sale of $768 thousand, compared with $26.2 million with a 12.9% average trade premium resulting in a net gain on sale of $2.5 million in the first quarter of 2022.

Non-Interest Expense

Non-interest expense was $12.6 million for the second quarter representing a $1.7 million, or 16.0% increase compared to the first quarter of 2022. Much of the increase was related to the elevated levels of professional services and other expenses given an 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. Related to the strong organic loan growth in the second quarter, the Company also increased its reserve for unfunded commitments by $214 thousand.

STATEMENT OF FINANCIAL CONDITION

Balance Sheet

At June 30, 2022, the Company reported total assets of $1.6 billion representing an increase of $66.6 million or 4.3% compared to the first quarter of 2022. The increase in assets for the second quarter was due to increases in loans supported by growth in core deposits. Total loans HFI increased to $1.4 billion at June 30, 2022 or $94.7 million during the quarter, up 7.4%; excluding PPP loans, total loans increased $100.8 million, up 7.9%. Total deposits were $1.4 billion representing an increase of $69.6 million, or 5.1%, compared to the first quarter. Total non-interest-bearing deposits represented 51.9% of total deposits at June 30, 2022. Additionally, during the quarter, the mark-to-market fair value net loss on the securities portfolio, which consisted mainly of US Treasury and Government Agency debt, increased to -$12.5 million from -$5.6 million from the prior quarter.

Asset Quality and Loan Deferrals

The Allowance for Loan Losses increased $659 thousand to $17.8 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 June 30, 2022, there were no doubtful credits or charge offs and Classified assets remained at $11.2 million, compared Q1'22. Total classified assets consisted of 10 loans, of which 6 loans totaling $7.9 million were secured by real estate with a weighted average LTV of 45.4%. In addition, all loans that were previously granted payment deferrals related to COVID-19 have resumed their contractual payments.

Capital Ratios ₍₁₎

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

	Jun 30, 2022 ⁽¹⁾	Mar 31, 2022	Dec 31, 2021
Private Bancorp of America
Tier I leverage ratio	8.61%	8.85%	8.42%
Tier I risk-based capital ratio	9.51%	10.31%	10.63%
Total risk-based capital ratio	12.01%	12.94%	13.38%

CalPrivate Bank
Tier I leverage ratio	9.58%	9.72%	9.29%
Tier I risk-based capital ratio	10.57%	11.93%	11.73%
Total risk-based capital ratio	11.82%	13.18%	12.98%

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

Stock Repurchase Program

During the second quarter of 2022, PBAM announced that it had completed its stock repurchase program on April 28, 2022 through the repurchase of 60,000 shares.

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 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)

	June 30, 2022			March 31, 2022			Dollar change			Percentage change		June 30, 2021			Dollar change			Percentage change
Assets
Cash and due from banks	$	15,694		$	17,099		$	(1,405	)	-8.2	%	$	12,783		$	2,911		22.8	%
Interest-bearing deposits in other financial institutions		43,857			40,878			2,979		7.3	%		13,969			29,888		214.0	%
Interest-bearing deposits at Federal Reserve Bank		29,241			66,038			(36,797	)	-55.7	%		65,356			(36,115	)	-55.3	%
Total cash and due from banks		88,792			124,015			(35,223	)	28.4	%		92,108			(3,316	)	-3.6	%
Interest-bearing time deposits with other institutions		6,157			5,817			340		5.8	%		5,760			397		6.9	%
Investment securities available for sale		113,565			114,382			(817	)	-0.7	%		88,755			24,810		28.0	%
Loan held for sale		4,460			1,999			2,461		123.1	%		19,625			(15,165	)	-77.3	%
Total loans held-for-investment		1,379,519			1,284,838			94,681		7.4	%		1,164,611			214,908		18.5	%
Allowance for loan losses		(17,776	)		(17,117	)		(659	)	3.8	%		(15,708	)		(2,068	)	13.2	%
Net loans		1,361,743			1,267,721			94,022		7.4	%		1,148,903			212,840		18.5	%
Federal Home Loan Bank stock, at cost		7,020			4,909			2,111		43.0	%		4,909			2,111		43.0	%
Right of use asset		3,037			3,400			(363	)	-10.7	%		5,185			(2,148	)	-41.4	%
Premises and equipment, net		2,640			2,813			(173	)	-6.2	%		2,578			62		2.4	%
Servicing assets, net		3,515			3,525			(10	)	-0.3	%		2,123			1,392		65.6	%
Deferred tax asset		9,229			7,032			2,197		31.2	%		7,012			2,217		31.6	%
Accrued interest receivable		3,855			3,453			402		11.6	%		3,501			354		10.1	%
Other assets		8,089			6,416			1,673		26.1	%		2,311			5,778		250.0	%
Total assets	$	1,612,102		$	1,545,482		$	66,620		4.3	%	$	1,382,770		$	229,332		16.6	%

Liabilities and Shareholders' Equity

Liabilities
Noninterest bearing	$	747,006		$	724,469		$	22,537		3.1	%	$	603,914		$	143,092		23.7	%
Interest Bearing		693,646			646,545			47,101		7.3	%		601,530			92,116		15.3	%
Total deposits		1,440,652			1,371,014			69,638		5.1	%		1,205,444			235,208		19.5	%
FHLB borrowings		10,000			10,000			-		0.0	%		30,000			(20,000	)	-66.7	%
Other borrowings		17,950			17,948			2		0.0	%		17,943			7		0.0	%
Accrued interest payable and other liabilities		13,305			14,630			(1,325	)	-9.1	%		13,059			246		1.9	%
Total liabilities		1,481,907			1,413,592			68,315		4.8	%		1,266,446			215,461		17.0	%

Shareholders' equity
Common stock		71,516			70,899			617		0.9	%		70,405			1,111		1.6	%
Additional paid-in capital		3,368			3,602			(234	)	-6.5	%		3,179			189		5.9	%
Retained earnings		64,036			61,424			2,612		4.3	%		42,810			21,226		49.6	%
Accumulated other comprehensive (loss) income		(8,725	)		(4,035	)		(4,690	)	116.2	%		(70	)		(8,655	)	12364.3	%
Total stockholders' equity		130,195			131,890			(1,695	)	-1.3	%		116,324			13,871		11.9	%
Total liabilities and stockholders' equity	$	1,612,102		$	1,545,482		$	66,620		4.3	%	$	1,382,770		$	229,332		16.6	%

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

	For the three months ended
	June 30, 2022		March 31, 2022		Dollar change			Percentage change		June 30, 2021		Dollar change			Percentage change
Interest Income
Loans	$	17,931	$	17,246	$	685		4.0	%	$	14,637	$	3,294		22.5	%
Investment securities		571		401		170		42.4	%		351		220		62.7	%
Deposits in other financial institutions		204		134		70		52.2	%		40		164		410.0	%
Total interest income		18,706		17,781		925		5.2	%		15,028		3,678		24.5	%

Interest Expense
Deposits		410		327		83		25.4	%		409		1		0.2	%
Borrowings		313		313		-		0.0	%		1,020		(707	)	-69.3	%
Total interest expense		723		640		83		13.0	%		1,429		(706	)	-49.4	%

Net interest income		17,983		17,141		842		4.9	%		13,599		4,384		32.2	%
Provision for loan losses		659		142		517		364.1	%		1,146		(487	)	-42.5	%
Net interest income after provision for loan losses		17,324		16,999		325		1.9	%		12,453		4,871		39.1	%

Noninterest income:
Service charges on deposit accounts		299		281		18		6.4	%		224		57		29.4	%
Net gain on sale of loans		768		2,471		(1,703	)	-68.9	%		1,476		995		-67.0	%
Other noninterest income		375		357		18		5.0	%		171		186		51.2	%
Total noninterest income		1,442		3,109		(1,667	)	-53.6	%		1,871		1,238		-48.6	%

Noninterest expense:
Salary and employee benefits		7,374		7,313		61		0.8	%		5,966		1,408		23.6	%
Occupancy and equipment		808		723		85		11.8	%		820		(12	)	-1.5	%
Data processing		824		653		171		26.2	%		690		134		19.4	%
Professional services		1,835		915		920		100.5	%		791		1,044		132.0	%
Other expenses		1,759		1,255		504		40.2	%		891		868		97.4	%
Total noninterest expense		12,600		10,859		1,741		16.0	%		9,158		3,442		37.6	%

Income before provision for income taxes		6,166		9,249		(3,083	)	-33.3	%		6,100		66		1.1	%
Provision for income taxes		1,769		2,747		(978	)	-35.6	%		1,806		(37	)	-2.0	%
Net income	$	4,397	$	6,502	$	(2,105	)	-32.4	%	$	4,294	$	103		2.4	%
Net income available to common shareholders	$	4,347	$	6,432	$	(2,085	)	-32.4	%	$	4,231	$	116		2.7	%

Earnings per share
Basic earnings per share	$	0.78	$	1.16	$	(0.37	)	-32.1	%	$	0.76	$	0.02		3.2	%
Diluted earnings per share	$	0.77	$	1.13	$	(0.36	)	-32.0	%	$	0.75	$	0.02		2.8	%

Average shares outstanding		5,543,065		5,568,400		(25,335	)	-0.5	%		5,536,111		6,954		0.1	%
Diluted average shares outstanding		5,639,282		5,672,701		(33,419	)	-0.6	%		5,622,075		17,207		0.3	%

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


	June 30, 2022		June 30, 2021		Dollar change			Percentage change
Interest Income
Loans	$	35,177	$	28,796	$	6,381		22.2	%
Investment securities		972		656		316		48.2	%
Deposits in other financial institutions		339		99		240		242.4	%
Total interest income		36,488		29,551		6,937		23.5	%

Interest Expense
Deposits		737		926		(189	)	-20.4	%
Borrowings		626		2,239		(1,613	)	-72.0	%
Total interest expense		1,363		3,165		(1,802	)	-56.9	%

Net interest income		35,125		26,386		8,739		33.1	%
Provision for loan losses		802		1,446		(644	)	-44.5	%
Net interest income after provision for loan losses		34,323		24,940		9,383		37.6	%

Noninterest income:
Service charges on deposit accounts		580		454		126		27.8	%
Net gain on sale of loans		3,239		3,802		(563	)	-14.8	%
Gain on sale of investment securities		-		-		-		N/A
Other noninterest income		732		420		312		74.3	%
Total noninterest income		4,551		4,676		(125	)	-2.7	%

Noninterest expense:
Salary and employee benefits		14,687		10,881		3,806		35.0	%
Occupancy and equipment		1,531		1,630		(99	)	-6.1	%
Data processing		1,476		1,326		150		11.3	%
Professional services		2,750		1,441		1,309		90.8	%
Other expenses		2,998		1,654		1,344		81.3	%
Total noninterest expense		23,442		16,932		6,510		38.4	%

Income before provision for income taxes		15,432		12,684		2,748		21.7	%
Provision for income tax		4,517		3,784		733		19.4	%
Net income	$	10,915	$	8,900	$	2,015		22.6	%
Net income available to common shareholders	$	10,794	$	8,761	$	2,033		23.2	%

Earnings per share
Basic earnings per share	$	1.94	$	1.59	$	0.35		22.0	%
Diluted earnings per share	$	1.91	$	1.56	$	0.35		22.4	%

Average shares outstanding		5,555,662		5,525,557		30,105		0.5	%
Diluted average shares outstanding		5,652,071		5,601,705		50,366		0.9	%

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

	For the three months ended
	June 30, 2022						March 31, 2022						June 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	$	100,017	$	205	0.82	%	$	116,903	$	134	0.46	%	$	137,902	$	40	0.12	%
Investment securities		125,550		571	1.82	%		109,252		401	1.47	%		88,132		351	1.59	%
Loans		1,339,095		17,931	5.37	%		1,268,695		17,246	5.51	%		1,125,958		14,637	5.21	%
Total interest-earning assets		1,564,662		18,707	4.80	%		1,494,850		17,781	4.82	%		1,351,992		15,028	4.46	%
Noninterest-earning assets		27,614						21,502						18,217
Total Assets	$	1,592,276					$	1,516,352					$	1,370,209

Interest-Bearing Liabilities
Interest-bearing transaction accounts	$	87,682	$	54	0.25	%	$	78,557	$	16	0.08	%	$	65,283	$	12	0.07	%
Money market		492,838		241	0.20	%		498,146		192	0.16	%		424,371		231	0.22	%
Savings deposits		14,216		3	0.01	%		13,523		3	0.09	%		9,229		2	0.09	%
Certificates of deposit		67,184		111	0.66	%		68,525		116	0.69	%		75,537		164	0.87	%
Total Interest-Bearing Deposits		661,920		409	0.25	%		658,751		327	0.20	%		574,420		409	0.29	%

FHLB advances		10,000		42	1.64	%		10,000		41	1.66	%		41,153		748	7.29	%
Other borrowings		17,948		272	6.06	%		17,948		272	6.06	%		17,942		272	6.06	%
Total Interest-Bearing Liabilities		27,948		314	4.49	%		27,948		313	4.54	%		59,095		1,020	6.92	%

Noninterest-bearing deposits		757,728						682,880						609,932
Total Funding Sources		1,447,596		723	0.20	%		1,369,579		640	0.19	%		1,243,447		1,429	0.46	%

Noninterest-bearing liabilities		11,891						14,301						11,881
Shareholders' equity		132,789						132,472						114,881

Total Liabilities and Shareholders' Equity	$	1,592,276					$	1,516,352					$	1,370,209

Net interest income/spread			$	17,984	4.60	%			$	17,141	4.63	%			$	13,599	4.00	%
Net interest margin					4.61	%					4.65	%					4.03	%

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


	June 30, 2022						June 30, 2021
	Average Balance		Interest		Average Yield/Rate		Average Balance		Interest		Average Yield/Rate
Interest-Earnings Assets:
Deposits in other financial institutions	$	108,413	$	339	0.63	%	$	187,826	$	99	0.11	%
Investment securities		117,447		972	1.67	%		73,759		656	1.79	%
Loans		1,304,089		35,177	5.44	%		1,085,617		28,796	5.35	%
Total interest-earning assets		1,529,949		36,488	4.81	%		1,347,202		29,551	4.42	%
Noninterest-earning assets		24,572						19,368
Total Assets	$	1,554,521					$	1,366,570

Interest-Bearing Liabilities
Interest-bearing transaction accounts	$	83,145	$	68	0.16	%	$	61,682	$	24	0.08	%
Money market		495,478		433	0.18	%		427,877		466	0.22	%
Savings deposits		13,872		7	0.10	%		8,999		5	0.11	%
Certificates of deposit		67,851		227	0.67	%		87,960		431	0.99	%
Total Interest-Bearing Deposits		660,346		735	0.22	%		586,518		926	0.32	%

FHLB advances		10,000		83	1.67	%		57,017		1,696	6.00	%
Other borrowings		17,949		544	6.11	%		17,941		545	6.06	%
Total Interest-Bearing Liabilities		27,949		627	4.52	%		74,958		2,239	6.03	%

Noninterest-bearing deposits		720,504						578,652
Total Funding Sources		1,408,799		1,362	0.19	%		1,240,128		3,165	0.51	%

Noninterest-bearing liabilities		13,084						13,845
Shareholders' equity		132,638						112,597

Total Liabilities and Shareholders' Equity	$	1,554,521					$	1,366,570

Net interest income/spread			$	35,126	4.61	%			$	26,386	3.91	%
Net interest margin					4.63	%					3.95	%

	PRIVATE BANCORP OF AMERICA, INC.
	Condensed Balance Sheets
	(Unaudited)
	(Dollars in thousands, except per share amounts)
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021
Assets
Cash and due from banks	$	88,792		$	124,015		$	149,085		$	138,553		$	92,108
Interest-bearing time deposits with other institutions		6,157			5,817			5,760			5,760			5,760
Investment securities		113,565			114,382			102,065			93,099			88,755
Loans held for sale		4,460			1,999			24,658			35,448			19,625
Total loans held-for-investment (excluding PPP loans)		1,376,801			1,276,043			1,188,634			1,117,983			1,053,938
SBA PPP loans		2,718			8,795			35,524			74,152			110,673
Allowance for loan losses		(17,776	)		(17,117	)		(16,975	)		(16,141	)		(15,708	)
Net loans		1,361,743			1,267,721			1,207,183			1,175,994			1,148,903
Right of use asset		3,037			3,400			3,760			4,115			5,185
Premises and equipment, net		2,640			2,813			2,294			2,459			2,578
Other assets and interest receivable		31,708			25,335			22,279			19,254			19,856
Total assets	$	1,612,102		$	1,545,482		$	1,517,084		$	1,474,682		$	1,382,770

Liabilities and Shareholders' Equity

Liabilities
Noninterest Bearing	$	747,006		$	724,469		$	682,589		$	646,233		$	603,914
Interest Bearing		693,646			646,545			663,074			667,012			601,530
Total Deposits		1,440,652			1,371,014			1,345,663			1,313,245			1,205,444
Borrowings		27,950			27,948			27,947			27,945			47,943
Accrued interest payable and other liabilities		13,305			14,630			15,110			11,613			13,059
Total liabilities		1,481,907			1,413,592			1,388,720			1,352,803			1,266,446

Shareholders' equity
Common stock		71,516			70,899			70,850			70,470			70,405
Additional paid-in capital		3,368			3,602			3,343			3,465			3,179
Retained earnings		64,036			61,424			54,922			47,845			42,810
Accumulated other comprehensive (loss) income		(8,725	)		(4,035	)		(751	)		99			(70	)
Total shareholders' equity		130,195			131,890			128,364			121,879			116,324
Total liabilities and shareholders' equity	$	1,612,102		$	1,545,482		$	1,517,084		$	1,474,682		$	1,382,770

Book value per common share	$	23.31		$	23.42		$	22.81		$	21.70		$	20.71
Tangible book value per common share	$	22.68		$	22.80		$	22.26		$	21.27		$	20.33
Shares outstanding		5,584,465			5,630,993			5,627,735			5,617,273			5,617,020

	Regulatory Capital Ratios (PBAM) ¹
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021
Tier 1 leverage ratio		8.61	%		8.85	%		8.42	%		8.19	%		8.36	%
Tier 1 risk-based capital ratio		9.51	%		10.31	%		10.63	%		10.64	%		10.74	%
Common equity Tier 1 ratio		9.51	%		10.31	%		10.63	%		10.64	%		10.74	%
Total risk-based capital ratio		12.01	%		12.94	%		13.38	%		13.48	%		13.68	%
Tangible equity / tangible assets		8.46	%		8.66	%		8.35	%		8.12	%		8.28	%

¹ Preliminary ratios for June 30, 2022

	PRIVATE BANCORP OF AMERICA, INC.
	Condensed Statements of Income
	(Unaudited)
	(Dollars in thousands, except per share amounts)
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021
Interest income	$	18,706		$	17,781		$	17,356		$	16,458		$	15,028
Interest expense		723			640			667			741			1,429
Net interest income		17,983			17,141			16,689			15,717			13,599
Provision for loan losses		659			142			834			433			1,146
Net interest income after provision for loan losses		17,324			16,999			15,855			15,284			12,453

Noninterest income		1,442			3,109			4,265			2,389			2,805

Salary and employee benefits		7,374			7,313			6,492			6,595			5,966
Occupancy and equipment		808			723			741			1,484			820
Data processing		824			653			703			799			690
Professional services		1,835			915			843			552			791
Other expenses		1,759			1,255			1,060			1,034			891
Total noninterest expense		12,600			10,859			9,839			10,464			9,158

Income before provision for income taxes		6,166			9,249			10,281			7,209			6,100
Income taxes		1,769			2,747			2,986			2,158			1,806
Net income	$	4,397		$	6,502		$	7,295		$	5,051		$	4,294
Net income available to common shareholders	$	4,347		$	6,432		$	7,204		$	4,984		$	4,231

Earnings per share
Basic earnings per share	$	0.78		$	1.16		$	1.30		$	0.90		$	0.76
Diluted earnings per share	$	0.77		$	1.13		$	1.28		$	0.89		$	0.75

Average shares outstanding		5,543,065			5,568,400			5,547,422			5,543,403			5,536,111
Diluted average shares outstanding		5,639,282			5,672,701			5,638,186			5,629,900			5,622,075

	Performance Ratios
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021
ROAA		1.12	%		1.74	%		1.91	%		1.39	%		1.26	%
ROAE		13.43	%		19.91	%		22.72	%		16.61	%		14.99	%
ROTE		13.62	%		20.20	%		23.07	%		16.88	%		15.25	%
Net interest margin		4.61	%		4.65	%		4.44	%		4.39	%		4.03	%
Net interest spread		4.60	%		4.63	%		4.43	%		4.38	%		4.00	%
Efficiency ratio		64.86	%		53.62	%		46.96	%		57.79	%		55.83	%
Noninterest expense / average assets		3.21	%		2.90	%		2.58	%		2.88	%		2.68	%

	PRIVATE BANCORP OF AMERICA, INC.
	(Unaudited)
	Selected Quarterly Average Balances
	(Dollars in thousands)
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021
Total assets	$	1,592,276		$	1,516,352		$	1,514,583		$	1,442,278		$	1,370,209
Earning assets	$	1,564,662		$	1,494,850		$	1,490,235		$	1,420,970		$	1,351,992
Total loans, including loans held for sale	$	1,339,095		$	1,268,695		$	1,222,234		$	1,185,865		$	1,125,958
Total deposits	$	1,419,648		$	1,341,631		$	1,346,777		$	1,276,349		$	1,184,352
Total equity	$	132,789		$	132,472		$	127,387		$	120,618		$	114,881


	Loan Balances by Type
	(Dollars in thousands)
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021
Real estate - investor owned	$	390,628		$	350,152		$	324,167		$	307,469		$	293,461
Real estate - owner occupied		359,270			371,840			339,081			329,985			313,579
Real estate - multifamily		121,693			105,964			97,285			82,460			72,790
Real estate - single family		94,212			89,630			86,399			81,239			90,223
Commercial business		359,692			307,421			294,944			274,708			244,493
SBA PPP loans		2,718			8,795			35,524			74,152			110,673
Land and construction		44,856			44,856			39,702			34,996			32,413
Consumer		6,450			6,180			7,049			7,126			6,979
Total loans held for investment	$	1,379,519		$	1,284,838		$	1,224,151		$	1,192,135		$	1,164,611


	Deposits by Type
	(Dollars in thousands)
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021
Non interest bearing DDA	$	747,006		$	724,469		$	682,589		$	646,233		$	603,914
Interest bearing DDA		93,405			75,904			81,788			68,056			70,320
Savings & MMA		533,145			503,552			513,070			530,782			463,165
Retail CD		3,387			3,384			5,281			5,633			5,827
Jumbo CD		63,709			63,705			62,935			62,541			62,218
Total deposits	$	1,440,652		$	1,371,014		$	1,345,663		$	1,313,245		$	1,205,444


	Asset Quality
	(Dollars in thousands)
	Jun 30, 2022			Mar 31, 2022			Dec 31, 2021			Sep 30, 2021			Jun 30, 2021
Total loans held-for-investment	$	1,379,519		$	1,284,838		$	1,224,151		$	1,192,135		$	1,164,611
30-89 day past due loans	$	-		$	-		$	-		$	200		$	-
90+ day past due loans	$	-		$	-		$	-		$	-		$	-
Nonaccrual loans	$	1,453		$	1,453		$	1,510		$	1,494		$	1,540

NPAs / Assets		0.09	%		0.09	%		0.10	%		0.10	%		0.11	%
NPLs / Total loans held-for-investment & OREO		0.11	%		0.11	%		0.12	%		0.12	%		0.13	%
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		1.29	%		1.33	%		1.39	%		1.35	%		1.35	%
Allowance for loan losses to nonaccrual loans		1223.40	%		1178.05	%		1124.11	%		1080.39	%		1020.00	%

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