Private Bancorp of America, Inc. · NASDAQ:PBAM
Private Bancorp of America — Q4 2022 Earnings Presentation
22 slides from Private Bancorp of America's earnings presentation, Jan 30, 2023
Slide 1: Q4 2022 Investor Update
Private Bancorp of America, Inc. (QTCQX: PBAM) (Holding Company for CalPrivate Bank) Q4 2022 Investor Update January 30, 2023
Slide 2: Disclosures
Disclosures FORWARD LOOKING STATEMENTS When used in this presentation, and in any other oral statements made with the approval of an authorized executive officer, the words or phrases “will,” “shall,” “may,” “could,” “should,” “hope,” “might,” “believe,” “expect,” “plan,” “assume,” “intend,” “estima
Slide 3: Corporate Overview
Corporate Overview The CalPrivate Bank Franchise Coastal Southern California Footprint • Founded in 2006 and headquartered in La Jolla, California, Private Bancorp of America, Inc. owns and operates Los Angeles County CalPrivate Bank, a dynamic relationship‐based commercial Beverly Hills bank South
Slide 4: Q4 2022 Results
Q4 2022 Results Financial • * Highlights Stock Price (vs. KBW Bank Index & S&P 500) • Net income for the quarter was $7.43 million, or $1.31 per diluted share • Average portfolio loan yields of 6.42% • Cost of funds: Deposits: 0.79% All Funding: 0.86% • NIM of 5.17% • TBVPS increase of $1.51 to $25.
Slide 5: Distinctly Different Service – 2022 NPS Score
Distinctly Different Service – 2022 NPS Score Our Net Promoter Score is a testament to our Distinctly Different service 2022 Top Service‐Focused Brands (1) 85 CalPrivate Bank (2) CPB client satisfaction 2.5x higher than U.S. Banking Industry 80 First Republic Bank (3) 75 USAA Exceptional service i
Slide 6: Strategic Focus – 2023
Strategic Focus – 2023 • Drive organic growth through relationship‐based banking, expanding current client relationships and obtaining new ones Balance Sheet Growth • Opportunistic top‐tier talent acquisition for new markets and current market expansion • Broader penetration into High Net Worth, inv
Slide 7: Disciplined Approach to Net Interest Margin
Disciplined Approach to Net Interest Margin Expanding Net Interest Margin NIM Protection Strategy 5.17% 4.99% • Relationship model allows us to maintain spread pricing 5.15% discipline on new originations 4.65% 4.61% 4.97% • ~36% of loans are variable or hybrid and are subject to one 4.44% or more r
Slide 8: Demonstrated Organic Growth in Loans
Demonstrated Organic Growth in Loans Relationship‐based banking strategy continues to result in strong loan growth (31% YoY) and increasing yields $2,000 7.00% 6.39% 5.76% 6.00% $1,595 $1,600 5.29% 5.36% 5.33% $1,495 $1,384 $275 5.00% $1,287 $263 $1,249 $233 $131 $1,200 $231 $1 $226 $137 $63 4.00% $
Slide 9: Quarterly Loan Growth Details (Q2–Q4 2022)
Quarterly Loan Growth Details (Q2–Q4 2022) Strong quarterly originations (HFI & HFS) were partially offset by paydowns & payoffs during the Quarter, but still resulted in net loan growth of 7% in Q4 Originations / Utilization Amortization / Paydowns / Loan Sales PPP Forgiveness $182 $1,595 $173 ‐$82
Slide 10: Positioned for Growth: Utilization Trends
Positioned for Growth: Utilization Trends Business Revolving Lines of Credit $700 $ in millions 75.0% $633 $632 $598 $600 70.0% $521 Revolving Line of Credit $ $500 $459 65.0% $420 Line Utilization $400 $364 $374 $358 $342 $348 $323 60.0% $294 $300 $236 $210 $216 $268 55.0% $200 $196 $100 50.0% $0 4
Slide 11: Loan Portfolio Breakdown
Loan Portfolio Breakdown Loan Portfolio by Industry Loan Portfolio by Type Borrower's Industry Total % of Total (by NAICS sector code) (in 000s)* Loans Real Estate Investment/ Rental & Leasing $ 832,001 52.0% Construction/ Builders & Contractors 57,873 3.6% Accommodation/Hotels & Food Services 135,3
Slide 12: Sustainable Deposit Franchise
Sustainable Deposit Franchise Emphasis on deposit retention in an environment of rising deposit rates and extreme competition. Remix of deposit portfolio to alleviate the market pressures has proven effective and is desired relative to utilizing alternative funding sources. Growing Customer Deposits
Slide 13: Interest Rate Sensitivity & Securities Overview
Interest Rate Sensitivity & Securities Overview Net Interest Income Sensitivity AFS Securities Portfolio Overview 15.0% 11% Dollars in millions 8% September 30, 2022 December 31, 2022 6% 5% 6% 7% 3% 3% % Change from BASE 5.0% Fair Value AOCI Yield Fair Value AOCI Yield ‐5.0% ‐2% US Treasuries $ 19.8
Slide 14: Slower SBA Growth and Shifting Market Dynamics
Slower SBA Growth and Shifting Market Dynamics Shifting loan sales to balance sheet portfolio given softness in market and attractive loan yields SBA Originations Increasing SBA Loan Balances SBA 7(a) Loan Sales & Premiums SBA 7(a) Gain on Sale 14
Slide 15: Solid Credit Risk Management Metrics
Solid Credit Risk Management Metrics High‐touch relationship‐based banking model results in superior portfolio performance Non‐Performing Loans to Total Loans Chart Title Non‐Performing Assets to Total Assets Chart Title 0.31% 0.27% 0.24% 0.21% 0.12% 0.11% 0.10% 0.11% 0.09% 0.09% Q4-21 Q1-22 Q2-22 Q
Slide 16: Solid Credit Risk Management Metrics
Solid Credit Risk Management Metrics Proactive credit risk management leading to minimal substandard assets Classified Loans Criticized Loans • Unsecured = any loans that are not secured by a real estate property or cash per • Total Unsecured Criticized Loans were $0 for all periods. regulatory lega
Slide 17: Strong Capital
Strong Capital Capital levels remain strong with earnings supporting growth capital needs in near term Selected CalPrivate Capital Ratios * * * *Preliminary Tangible Book Value per Share Capital Strategy • Maintain optimal levels of capital to ensure high ROC • Proven ability to add shareholder valu
Slide 18: Operational Efficiency
Operational Efficiency Continued focus on improving operating leverage through technology and process improvement initiatives Non‐interest Expenses Non‐interest Expense Details • Legal expenses driving increases in Professional Services • 4Q compensation & benefit increases due to production incenti
Slide 19: Technology & Innovation Differentiation
Technology & Innovation Differentiation • Added Board level expertise in technology, audit and innovation Technology & Innovation Board • Dedicated focus on digital transformation Committee • Provides oversite on roadmap, governance and budget • Enhancing focus on Cybersecurity and emerging security
Slide 20: Community Outreach & Diversity
Community Outreach & Diversity Community Support • An important aspect to our company culture is community engagement • CalPrivate donates to non‐profit organizations across a wide range of community groups from Los Angeles to San Diego • Employee contributions are matched • Team members donate volu
Slide 21: Management Contacts
Management Contacts Rick Sowers President & Chief Executive Officer o. 424.303.4894 c. 310.569.3635 e. rsowers@calprivate.bank Cory Stewart EVP & Chief Financial Officer c. 206.293.3669 e. cstewart@calprivate.bank 21
Slide 22: Q&A
Q&A Priv a t e B a n c o rp o f A m e ric a , I n c. (QT C Q X: P B AM ) (Holding Company for CalPrivate Bank)
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