First Quarter 2024 Highlights Net income for the first quarter of 2024 of $7.9 million, compared to $7.9 million in the prior quarter and $9.0 million in the first quarter of 2023. Net income for the first quarter of 2024 represents a return on average assets of 1.48% and a return on average tangible common equity of 16.86% Diluted earnings per share for the first quarter of 2024 of $1.36, compared to $1.36 in the prior quarter and $1.57 in the first quarter of 2023 Loans held-for-investment ("HFI") totaled $1.91 billion as of March 31, 2024, an increase of $59.8 million or 3.2% (13.0% annualized) from December 31, 2023. Loans HFI increased 17.5% year over year Provision for credit losses for the first quarter of 2024 was $0.2 million, compared to $0.5 million for the prior quarter and $0.1 million for the first quarter of 2023. The allowance for loan losses was 1.29% of loans HFI as of March 31, 2024 Total deposits were $1.90 billion as of March 31, 2024, an increase of $29.3 million or 1.6% (6.3% annualized) from December 31, 2023. Federal Home Loan Bank advances decreased by $4.0 million as a consequence of deposit growth. Core deposits were $1.61 billion as of March 31, 2024, an increase of $22.1 million or 1.4% from December 31, 2023 Net interest margin was 4.31% for the first quarter of 2024, as compared to 4.33% for the prior quarter and 4.90% for the first quarter of 2023 Total cost of funding sources was 2.70% for the first quarter of 2024, an increase from 2.53% in the prior quarter and 1.39% in the first quarter of 2023 Tangible book value per share was $33.55 as of March 31, 2024, an increase of $1.47 since December 31, 2023 as a result of strong earnings. Tangible book value per share increased 4.6% quarter-over-quarter and 27.6% year over year. LA JOLLA, Calif., April 19, 2024 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX:PBAM), ("Company") and CalPrivate Bank ("Bank") announced unaudited financial results for the first fiscal quarter ended March 31, 2024. The Company reported net income of $7.9 million, or $1.36 per diluted share, for the first quarter of 2024, compared to $7.9 million, or $1.36, in the prior quarter, and $9.0 million, or $1.57, in the first quarter of 2023. Rick Sowers, President and CEO of the Company and the Bank stated, "We are pleased with our Team's ability to continue to grow the balance sheet and bring on new Clients. By putting the Client at the center of what we do, we are able to exceed expectations and earn their Trust. Our Service and Relationship Teams continue to excel in a challenging environment. Our performance is a reflection of our Client focused, profit driven mindset. Our goal continues to be adding value for our Team, our Clients and our Shareholders." Sowers added, "We view this as an opportunistic market. We continue to hire great bankers who share our culture and passion for Client service. Disruption in our markets continues to provide opportunities for us to grow and we fully intend to take advantage of those. To support that growth, we continue to forge ahead with infrastructure and technology investments to support our business and private banking clients, both now and into the future." "The Company continues to exhibit successful customer acquisition activity despite a challenging interest rate environment. Additionally, the Company is investing in people and infrastructure, including strong risk management, product strategy and innovation needed to support the continued growth of the CalPrivate franchise," said Selwyn Isakow, Chairman of the Board of the Company and the Bank. STATEMENT OF INCOME Net Interest Income Net interest income for the first quarter of 2024 totaled $22.8 million, an increase of $0.6 million or 2.6% from the prior quarter and an increase of $0.6 million or 2.7% from the first quarter of 2023. The increase from the prior quarter was driven primarily by 4.4% growth in interest-earning assets and a 14 basis point increase in asset yields as interest income increased by $1.7 million. Partially offsetting this was an increase of $1.1 million in interest expense, which resulted from a 8.2% increase in average interest bearing-liabilities and a 9 basis point increase in the cost of interest-bearing liabilities. Net Interest Margin Net interest margin for the first quarter of 2024 was 4.31%, compared to 4.33% for the prior quarter and 4.90% in the first quarter of 2023. The 2 basis point decrease in net interest margin from the prior quarter was due primarily to higher rates paid on deposits, partially offset by higher rates on new loan originations and variable rate loans and investment securities. The yield on earning assets was 6.78% for the first quarter of 2024 compared to 6.64% for the prior quarter, and the cost of interest-bearing liabilities was 3.77% for the first quarter of 2024 compared to 3.68% in the prior quarter. The cost of total deposits was 2.61% for the first quarter of 2024 compared to 2.41% in the prior quarter. The cost of core deposits, which excludes brokered deposits, was 2.14% in the first quarter of 2024 compared to 1.93% in the prior quarter. The spot rate for total deposits was 2.66% as of March 31, 2024, compared to 2.49% at December 31, 2023. Provision for Credit Losses Provision expense for credit losses for the first quarter of 2024 was $0.2 million, compared to $0.5 million in the prior quarter and $0.1 million for the first quarter of 2023. For more details, please refer to the "Asset Quality" section below. Noninterest Income Noninterest income was $1.4 million for the first quarter of 2024, compared to $1.2 million in the prior quarter and $1.5 million in the first quarter of 2023. SBA loan sales for the first quarter of 2024 were $8.9 million with a 10.84% average trade premium resulting in a net gain on sale of $681 thousand, compared with $6.7 million with a 9.62% average trade premium resulting in a net gain on sale of $436 thousand in the prior quarter. Management expects continued softness in the market for SBA 7a loans. Noninterest Expense Noninterest expense was $12.8 million for the first quarter of 2024, compared to $11.8 million in the prior quarter and $11.6 million in the first quarter of 2023. Compensation and employee benefits expense increased $919 thousand compared to the prior quarter driven by seasonal increases to benefit expenses and employer taxes, annual merit increases and adjustments to share-based compensation. The efficiency ratio was 52.84% for the first quarter of 2024 compared to 50.22% in the prior quarter and 48.90% in the first quarter of 2023. The increase in the efficiency ratio from the prior quarter was due primarily to the aforementioned increases in compensation and employee benefits expense. The Company remains committed to making investments in the business, including technology, marketing, and staffing. Inflationary pressures and low unemployment continue to have an impact on rising wages as well as increased costs related to third party service providers, which we proactively monitor and manage. Provision for Income Tax Expense Provision for income tax expense was $3.3 million for the first quarter of 2024, compared to $3.3 million for the prior quarter. The effective tax rate for the first quarter of 2024 was 29.5%, compared to 29.9% in the prior quarter and 25.2% in the first quarter of 2023. STATEMENT OF FINANCIAL CONDITION As of March 31, 2024, total assets were $2.19 billion, an increase of $35.3 million since December 31, 2023. The increase in assets from the prior quarter was primarily due to higher loans receivable and investment securities, partially offset by the decrease in cash balances. Total cash and due from banks was $141.5 million as of March 31, 2024, a decrease of $36.6 million or 20.5%, since December 31, 2023, primarily due to the use of funds that were deposited at the end of the prior quarter. Loans HFI totaled $1.91 billion as of March 31, 2024, an increase of $59.8 million or 3.2% since December 31, 2023. Investment securities available for sale ("AFS") were $114.1 million as of March 31, 2024, an increase of $11.6 million or 11.3% since December 31, 2023 as a result of new securities purchased. As of March 31, 2024, the net unrealized loss on the AFS investment securities portfolio, which is comprised mostly of US Treasury and Government Agency debt, was $12.4 million (pre-tax) compared to a loss of $12.1 million (pre-tax) as of December 31, 2023. The average duration of the Bank's AFS portfolio is 3.6 years. The Company has no held-to-maturity securities. Total deposits were $1.90 billion as of March 31, 2024, an increase of $29.3 million since December 31, 2023. During the quarter, core deposits increased by $22.1 million, which was driven by a $78.5 million increase in interest-bearing core deposits (including balances in the Intrafi ICS and CDARS programs), partially offset by a $56.5 million decrease in noninterest-bearing core deposits. Deposit mix has continued to shift while short-term interest rates remain higher. Noninterest-bearing deposits represent 32.1% of total core deposits. Uninsured deposits, net of collateralized and fiduciary deposit accounts, represent 46.3% of total deposits as of March 31, 2024. As of March 31, 2024, total available liquidity was $1.6 billion or 181% of uninsured deposits, net of collateralized and fiduciary deposit accounts. Total available liquidity is comprised of $247 million of on-balance sheet liquidity (cash and investment securities) and $1.4 billion of unused borrowing capacity. Asset Quality and Allowance for Credit Losses ("ACL") As of March 31, 2024, the allowance for loan losses was $24.7 million or 1.29% of loans HFI, compared to $24.5 million or 1.33% as of December 31, 2023. The decrease in the coverage ratio from December 31, 2023 primarily reflects improvements in the economic forecasts used for estimating credit losses. The Company continues to have strong credit metrics and its nonperforming assets are 0.21% of total assets as of March 31, 2024. The reserve for unfunded commitments was $1.7 million as of March 31, 2024, compared to $1.7 million as of December 31, 2023. Given the credit quality of the loan portfolio, management believes we are sufficiently reserved. At March 31, 2024 and December 31, 2023, there are no doubtful credits and classified assets were $10.8 million and $11.0 million, respectively. Total classified assets consisted of nine loans as of March 31, 2024, which included six loans totaling $6.9 million secured by real estate with a weighted average LTV of 43.3%. The remaining three loans were commercial and industrial loans, the first of which was an SBA loan with a balance of $1.0 million, which is 90% guaranteed by the SBA, the second had a balance of $0.3 million and was secured by a UCC-1 lien and the third was a $2.5 million nonaccrual loan with a specific reserve of $1.75 million. Capital Ratios (2) The Bank's capital ratios were in excess of the levels established for "well capitalized" institutions and are as follows:   March 31, 2024 (2) December 31, 2023 CalPrivate Bank     Tier I leverage ratio 10.08% 10.07% Tier I risk-based capital ratio 11.20% 11.02% Total risk-based capital ratio 12.45% 12.27% (2) March 31, 2024 capital ratios are preliminary and subject to change. About Private Bancorp of America, Inc. Private Bancorp of America, Inc. (OTCQX:PBAM), is the holding company for CalPrivate Bank. CalPrivate Bank provides a Distinctly Different banking experience through unparalleled service and creative funding solutions to high-net-worth individuals, professionals, locally owned businesses, and real estate entrepreneurs. Customers are serviced through offices in Coronado, San Diego, La Jolla, Newport Beach, El Segundo and Beverly Hills as well as efficient electronic banking offerings. The Bank also offers various portfolio and government guaranteed lending programs, including SBA and cross-border Export-Import Bank programs. CalPrivate Bank is an SBA Preferred Lender and a Bauer Financial 5-star rated bank. CalPrivate Bank's website is www.calprivate.bank. Non-GAAP Financial Measures This press release contains certain non-GAAP financial measures in addition to results presented in accordance with GAAP, including adjusted income before provision for income taxes, adjusted net income, adjusted diluted earnings per share ("Adjusted EPS"), efficiency ratio, adjusted efficiency ratio, pretax pre-provision net revenue, average tangible common equity, adjusted return on average assets, return on average tangible common equity and adjusted return on average tangible common equity. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company's results of operations and financial condition and to enhance investors' overall understanding of such results of operations and financial condition, permit investors to effectively analyze financial trends of our business activities, and enhance comparability with peers across the financial services sector. These non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures prepared in accordance with GAAP and should be read in conjunction with the Company's GAAP financial information. A reconciliation of the most comparable GAAP financial measures to non-GAAP financial measures is included in the accompanying financial tables. Investor Relations Contacts Rick SowersPresident and Chief Executive OfficerPrivate Bancorp of America, Inc., and CalPrivate Bank(424) 303-4894 Cory StewartExecutive Vice President and Chief Financial OfficerPrivate Bancorp of America, Inc., and CalPrivate Bank(206) 293-3669 Safe Harbor Paragraph This communication contains expressions of expectations, both implied and explicit, that are "forward-looking statements" within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We caution you that a number of important factors could cause actual results to differ materially from those in the forward-looking statements, especially given the current turmoil in the banking and financial markets. These factors include the effects of depositors withdrawing funds unexpectedly, counterparties being unable to provide liquidity sources that we believe should be available, loan losses, economic conditions and competition in the geographic and business areas in which Private Bancorp of America, Inc. operates, including competition in lending and deposit acquisition, the unpredictability of fee income from participation in SBA loan programs, the effects of bank failures, liquidations and mergers in our markets and nationally, our ability to successfully integrate and develop business through the addition of new personnel, whether our efforts to expand loan, product and service offerings will prove profitable, system failures and data security, whether we can effectively secure and implement new technology solutions, 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. These factors could cause actual results to differ materially from what we anticipate or project. You should not place undue reliance on any such forward-looking statement, which speaks only as of the date on which it was made. Although we in good faith believe the assumptions and bases supporting our forward-looking statements to be reasonable there can be no assurance that those assumptions and bases will prove accurate. PRIVATE BANCORP OF AMERICA, INC.CONSOLIDATED BALANCE SHEET(Unaudited)(Dollars in thousands)       Mar 31, 2024     Dec 31, 2023     Mar 31, 2023   Assets                   Cash and due from banks   $ 13,136     $ 19,811     $ 13,347   Interest-bearing deposits in other financial institutions     34,790       39,667       73,420   Interest-bearing deposits at Federal Reserve Bank     93,575       118,622       125,045   Total cash and due from banks     141,501       178,100       211,812   Interest-bearing time deposits with other institutions     4,032       4,000       7,661   Investment debt securities available for sale     114,067       102,499       103,790   Loans held for sale     383       1,233       465   Loans, net of deferred fees and costs and unaccreted discounts     1,906,992       1,847,161       1,623,028   Allowance for loan losses     (24,693 )     (24,476 )     (21,135 ) Loans held-for-investment, net of allowance     1,882,299       1,822,685       1,601,893   Federal Home Loan Bank stock, at cost     8,915       8,915       7,020   Right of use asset     2,765       3,096       2,889   Premises and equipment, net     1,804       1,700       1,744   Servicing assets, net     2,203       2,318       3,057   Accrued interest receivable     7,931       7,499       5,674   Other assets     21,877       20,423       20,623   Total assets   $ 2,187,777     $ 2,152,468     $ 1,966,628                       Liabilities and Shareholders' Equity                   Liabilities                   Noninterest bearing   $ 516,294     $ 572,755     $ 639,664   Interest bearing     1,388,381       1,302,615       944,102   Total deposits     1,904,675       1,875,370       1,583,766   FHLB borrowings     53,000       57,000       192,000   Other borrowings     17,963       17,961       17,956   Accrued interest payable and other liabilities     18,107       16,354       20,592   Total liabilities     1,993,745       1,966,685       1,814,314                       Shareholders' equity                   Common stock     74,105       74,003       73,254   Additional paid-in capital     4,108       3,679       3,289   Retained earnings     124,464       116,604       84,751   Accumulated other comprehensive (loss) income, net     (8,645 )     (8,503 )     (8,980 ) Total shareholders' equity     194,032       185,783       152,314   Total liabilities and shareholders' equity   $ 2,187,777     $ 2,152,468     $ 1,966,628   PRIVATE BANCORP OF AMERICA, INC.CONSOLIDATED STATEMENTS OF INCOME(Unaudited)(Dollars in thousands, except per share amounts)       For the three months ended       Mar 31, 2024     Dec 31, 2023     Mar 31, 2023   Interest Income                   Loans   $ 33,006     $ 31,482     $ 26,228   Investment securities     979       655       580   Deposits in other financial institutions     1,799       1,926       1,150   Total interest income     35,784       34,063       27,958                       Interest Expense                   Deposits     12,130       10,874       4,924   Borrowings     886       1,001       866   Total interest expense     13,016       11,875       5,790                       Net interest income     22,768       22,188       22,168   Provision (reversal) for credit losses     233       459       73   Net interest income after provision for credit losses     22,535       21,729       22,095                       Noninterest income:                   Service charges on deposit accounts     388       373       348   Net gain on sale of loans     681       436       474   Other noninterest income     357       435       643   Total noninterest income     1,426       1,244       1,465                       Noninterest expense:                   Compensation and employee benefits     8,861       7,942       8,030   Occupancy and equipment     770       790       806   Data processing     1,058       1,001       944   Professional services     488       410       438   Other expenses     1,606       1,625       1,339   Total noninterest expense     12,783       11,768       11,557   Income before provision for income taxes     11,178       11,205       12,003   Provision for income taxes     3,294       3,346       3,029   Net income   $ 7,884     $ 7,859     $ 8,974   Net income available to common shareholders   $ 7,832     $ 7,800     $ 8,923                       Earnings per share                   Basic earnings per share   $ 1.38     $ 1.38     $ 1.59   Diluted earnings per share   $ 1.36     $ 1.36     $ 1.57                       Average shares outstanding     5,679,843       5,664,028       5,608,193   Diluted average shares outstanding     5,754,937       5,723,735       5,673,394   PRIVATE BANCORP OF AMERICA, INC.Consolidated average balance sheet, interest, yield and rates(Unaudited)(Dollars in thousands)       For the three months ended       Mar 31, 2024     Dec 31, 2023     Mar 31, 2023       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   $ 135,511     $ 1,799       5.34 %   $ 144,265     $ 1,926       5.30 %   $ 123,159     $ 1,150       3.79 % Investment securities     119,690       979       3.27 %     101,719       655       2.58 %     112,694       580       2.06 % Loans, including LHFS     1,868,308       33,006       7.11 %     1,788,572       31,482       6.98 %     1,597,236       26,228       6.66 % Total interest-earning assets     2,123,509       35,784       6.78 %     2,034,556       34,063       6.64 %     1,833,089       27,958       6.19 % Noninterest-earning assets     25,469                   27,930                   24,905               Total Assets   $ 2,148,978                 $ 2,062,486                 $ 1,857,994                                                                       Interest-Bearing Liabilities                                                       Interest bearing DDA, excluding brokered     109,838       441       1.61 %     112,580       503       1.77 %     100,640       343       1.38 % Savings & MMA, excluding brokered     765,770       6,421       3.37 %     713,754       5,811       3.23 %     619,316       2,378       1.56 % Time deposits, excluding brokered     155,703       1,583       4.09 %     123,985       1,155       3.70 %     83,032       456       2.23 % Total deposits, excluding brokered     1,031,311       8,445       3.29 %     950,319       7,469       3.12 %     802,988       3,177       1.60 % Total brokered deposits     287,885       3,685       5.15 %     256,761       3,405       5.26 %     151,993       1,747       4.66 % Total Interest-Bearing Deposits     1,319,196       12,130       3.70 %     1,207,080       10,874       3.57 %     954,981       4,924       2.09 %                                                         FHLB advances     49,935       614       4.95