Private Bancorp of America, Inc. · NASDAQ:PBAM
Private Bancorp of America — Q1 2025 Earnings Presentation
26 slides from Private Bancorp of America's earnings presentation, Apr 21, 2025
Slide 1: Q1 2025 Investor Update
(OTCQX: PBAM) Holding Company for April 21, 2025 Q1 2025 Investor Update
Slide 2: Disclosures
Disclosures FORWARD LOOKING STATEMENTS This presentation 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 c
Slide 3: Corporate Overview
Corporate Overview ▌ The CalPrivate Bank Franchise ▌Coastal Southern California Footprint o Founded in 2006 and headquartered in La Jolla, California, Private Bancorp of America, Inc. owns and operates CalPrivate Bank, a dynamic relationship-based commercial bank o With 6 branch locations in Los Ang
Slide 4: Consistent Focus on Shareholder Value Creation
Consistent Focus on Shareholder Value Creation ▌ Growth Oriented Strategy $ Total Assets (in Billions) o Culture of excellence in all aspects of serving Clients 17.8% 5 Yr CAGR o Growth oriented Sales and Service Teams o Consistent growth of earning assets at strong yields o Core EPS growth above 40
Slide 5: PBAM Stock Total Return (vs KBW Bank Index, S&P 500, and Select Peers)
PBAM Stock Total Return (vs KBW Bank Index, S&P 500, and Select Peers) ▌ PBAM stock has outperformed market indexes and peer group over the last 3 years 1 Year Total Return 3 Year Total Return 1 Peer Group Includes: BCAL, FSBC, BSRR, CWBC, MYFW, PCB, BCML, OPBK, AVBH, FNRN, TSBK, OVLY, PLBC, RVSB, F
Slide 6: Q1 2025 Results and Highlights
Q1 2025 Results and Highlights ▌ Financial Highlights ▌ Operational & Performance Highlights o $10.6 million in Net Income o 47.90% Efficiency Ratio o $1.80 Earnings per Diluted Share o 4.61% Net Interest Margin o $2.48 billion in Assets o 1.74% Return on Average Assets o $2.08 billion in Loans HFI
Slide 7: Strategic Focus – 2025
Strategic Focus – 2025 • COMING SOON- Full-Service Office in Montecito, Santa Barbara County, California • Organic growth in existing markets Opportunistic Growth • Top-tier talent acquisition for new markets and current market expansion • Emphasis on High Net Worth, legal industry, property managem
Slide 8: Managing NIM in a Volatile Environment
Managing NIM in a Volatile Environment ▌ NIM Protection Strategy Proven Relationship Banking model allows for keen understanding of Clients and providing them with value Strong Loan Yields Deposit Retention & Growth Other NIM Performance Contributors • Desirable mix of Fixed, Variable and • Robust p
Slide 9: Strong Deposit Franchise
Strong Deposit Franchise ▌ Executed deposit repricing strategy in second half of 2024 as countermeasure to Fed rate cuts resulting in successful reduction in deposit costs and protection of Net Interest Margin Growing Customer Deposits 1Q25 Deposit Mix Deposit Rate Trends Dollars in Thousands Non-In
Slide 10: Strong Liquidity & Funding Position
Strong Liquidity & Funding Position ▌ Focus on maintaining strong liquidity position and continued improvement in the deposit mix Liquid Assets Wholesale Funding Dollars in Millions Dollars in Millions Dollars in Millions Total Available Liquidity ▌ Commentary Total Available % of o 1Q25 liquid asse
Slide 11: Loan Originations by Quarter
Loan Originations by Quarter ▌ Slower loan demand across the industry, the impact of Los Angeles wildfires, coupled with an uncertain economic and political environment has led to lower 1Q25 originations. We continue to use a disciplined approach to underwriting and pricing to protect our Net Intere
Slide 12: Loans Held for Investment Portfolio
Loans Held for Investment Portfolio ▌ Disciplined pricing strategy and taking advantage of market opportunities produced an increase of loan balances by 9.0% YoY with strong yields 1Q25 Loan Mix HFI Loan Balances * ** Dollars in Millions Investor C&I SBA Secured by RE Owner Occupied SFR Secured Mult
Slide 13: Real Estate Secured Loan Portfolio Breakdown
Real Estate Secured Loan Portfolio Breakdown 1Q25 Mix of Loans Secured by Real Estate Secured by Real Estate & LTV Dollars in Millions ▌ Loan Diversification Real Estate Secured- Specific Portfolio Details o HFI Loan composition reflects specific efforts to diversify among industries, seek real esta
Slide 14: Line Utilization Revolving Line of Credit
Total Revolving Lines of Credit Total Revolving Lines of Credit $ in millions Revolving Line of Credit $ Line Utilization ▌ Overview ▌ Utilization & Rates o 16% Compound Annual Growth Rate (CAGR) for o Use of floors on variable lines to mitigate NIM revolving line amounts over last 8 quarters compre
Slide 15: SBA Lending Overview
SBA Lending Overview ▌ SBA Lending is an essential part of the CalPrivate Bank business model, offering low leverage, high yield 504 and 7(a) guaranteed lending products to small businesses in our local communities SBA Originations ▌ SBA Overview Dollars in Millions o Award winning SBA Ranked #1 Com
Slide 16: SBA Loan Sale Strategies
SBA Loan Sale Strategies ▌ Optimizing SBA loan sales versus HFI based on secondary market conditions and loan yields. Approx 33% of on balance sheet SBA 7a balances are guaranteed SBA 7(a) Loan Sales SBA 7(a) Income & Premium Dollars in Millions Dollars in Millions ▌ SBA Loan Sale Overview o Typical
Slide 17: Interest Rate Risk Management
Interest Rate Risk Management Loans Repricing & Maturities Interest Rate Sensitivity March 31, 2025 Fixed-Rate Loans Adjustable-Rate Loans (incl. Hybrids) Estimated Change from 3/31/25 Rate Shock Baseline forecast Balance % of Term to Rate Balance (in % of Term to Maturity (in 000's) Rate Loans Adju
Slide 18: Solid Credit Risk Management Metrics
Solid Credit Risk Management Metrics ▌ Proactive credit risk and loan portfolio management leading to minimal substandard assets and solid credit metrics Criticized Loans ▌ Commentary Dollars in Millions o 20 total classified loans o 17 of 20 are secured by real estate with LTV of 52.7% o 11 of 20 a
Slide 19: Solid Credit Risk Management Metrics
Solid Credit Risk Management Metrics Net Charge Offs (Recoveries) ▌ Credit Commentary Dollars in Thousands o 9 Total non-performing loans from the population of Classified loans o 4 loans associated with a single borrower totaling $9.0 million (combined LTV of 67% in foreclosure) Non-Performing Loan
Slide 20: Current Expected Credit Loss ("CECL") Implementation
Current Expected Credit Loss (“CECL”) Implementation ACL Rollforward 2Q24 3Q24 4Q24 1Q25 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Mar 31, 2025 Change in Change in Change in Change in ACL ACL ACL ACL ACL $ in thousands ACL ACL ACL ACL Allowance for loan losses 24,693 1,898 26,591 3 26,594
Slide 21: Expenses and Operational Efficiency
Expenses and Operational Efficiency ▌ Ongoing focus on improving operating leverage through technology and process improvement initiatives while adding talent and improving capabilities and offerings to our Clients Non-Interest Expense (NIE) ▌ NIE Commentary o Non-interest expense grew at a lower Do
Slide 22: Strong Capital Position
Strong Capital Position ▌ Strong build of capital ratios through 2023 & 2024, even with sustained balance sheet growth ▌ Capital Strategy o Manage capital to achieve strong levels of Return on Equity o Proven ability to add shareholder value by consistently increasing tangible book value through str
Slide 23: CalPrivate Culture and Community Outreach
CalPrivate Culture and Community Outreach ▌ Community Support o An important aspect of our company culture is community engagement o CalPrivate Bank donates to non-profit organizations with both our time and money across a wide range of community groups from Los Angeles to San Diego o Employee contr
Slide 24: Technology & Innovation Differentiation
Technology & Innovation Differentiation • Investment in technology is a competitive necessity • Enables improved performance by providing improved Client Experience, expansion of Technology the Client base and increased productivity Principles • Helps address regulatory pressure related to managing
Slide 25: Management Contacts
Management Contacts Rick Sowers Cory Stewart President & Chief Executive Officer EVP & Chief Financial Officer o. 424.303.4894 c. 206.293.3669 c. 310.569.3635 cstewart@calprivate.bank rsowers@calprivate.bank
Slide 26: Q&A
(OTCQX: PBAM) Q&A Holding Company for
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