Private Bancorp of America, Inc. · NASDAQ:PBAM
Private Bancorp of America — Q4 2024 Earnings Presentation
25 slides from Private Bancorp of America's earnings presentation, Jan 17, 2025
Slide 1: Q4 2024 Investor Update
(OTCQX: PBAM) (Holding Company for CalPrivate Bank) Q4 2024 Investor Update January 17, 2025
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 • 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 Los Angeles County • With 6 branch loc
Slide 4: Consistent Focus on Shareholder Value Creation
Consistent Focus on Shareholder Value Creation Growth Oriented Strategy $ Total Assets (in Billions) • Culture of excellence in all aspects of serving Clients 17.8% 5 Yr CAGR • Growth oriented Sales and Service Teams • Consistent growth of earning assets at strong yields • 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, FFB
Slide 6: Q4 2024 Results and Highlights
Q4 2024 Results and Highlights • Financial * Highlights Operational • * & Performance Highlights • 48.34% Efficiency Ratio • $10.7 million in Net Income • 4.67% Net Interest Margin • $1.82 Earnings Per Diluted Share • 1.80% Return On Average Assets • $2.43 billion in Assets • 19.46% Return On Averag
Slide 7: Strategic Focus – 2025
Strategic Focus – 2025 • Organic growth in existing markets • Top‐tier talent acquisition for new markets and current market expansion Opportunistic Growth • Emphasis on High Net Worth, legal industry, property management & family office • IPO Readiness • Focus on M&A • Create frictionless client ex
Slide 8: Managing NIM in a Volatile Environment
Managing NIM in a Volatile Environment Loan Yields & Cost of Funds NIM Protection Strategy Proven Relationship Banking model allows for keen understanding of Clients and providing them with value Strong Loan Yields • Desirable mix of Fixed, Variable and Hybrid loan types • Fixed Rate Loan Terms gene
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 Deposit Rate Trends Deposit Commentary • Total deposits increased
Slide 10: Strong Liquidity & Funding Position
Strong Liquidity & Funding Position Focus on maintaining strong liquidity position and optimizing from a diverse funding mix Liquid Assets Total Available Liquidity Note: Dollars in Millions & Unused Uninsured Liqudity Sources (000's) Deposits Cash, unrestricted 159,847 16% 1 Liquid Securities 140,7
Slide 11: Loan Originations by Quarter
Loan Originations by Quarter Due to slower loan demand across the industry and with our Clients, we are opportunistically lending across all channels and regions at desirable rates of return to drive higher Net Interest Income and protect NIM Loan Originations (Contract Amount, $ in millions) Commen
Slide 12: Demonstrated Organic Growth in Loans
Demonstrated Organic Growth in Loans Disciplined pricing strategy and taking advantage of market opportunities produced an increase of loan balances by 12.9% YoY with strong yields Loan Balances * ** *$590K of nonaccrual interest recognized in 2Q’24, adjusted loan yield of 7.25% Note: Dollars in Mil
Slide 13: Loan Portfolio Breakdown
Loan Portfolio Breakdown Loan Portfolio by Industry Loan Secured by Real Estate Borrower's Industry Total % of Total $1,622 Million of Loan Portfolio Secured by Real Estate (78%) (by NAICS sector code) (in 000s)* Loans Real Estate Investment/ Rental & Leasing $ 1,126,189 53.9% Construction/ Builders
Slide 14: Total Revolving Lines of Credit and Line Utilization
Total Revolving Lines of Credit Total Revolving Lines of Credit $ in millions Revolving Line of Credit $ Line Utilization Overview Utilization & Rates • 16% Compound Annual Growth Rate (CAGR) for revolving • Use of floors on variable lines to mitigate NIM compression line amounts over last 8 quarter
Slide 15: SBA Lending and Shifting Market Dynamics
SBA Lending and Shifting Market Dynamics Optimizing SBA loan sales versus balance sheet portfolio based on secondary market conditions and loan yields. Approx 33% of on balance sheet SBA 7a balances are guaranteed SBA Originations Increasing SBA Loan Balances SBA 7(a) Loan Sales & Premiums SBA 7(a)
Slide 16: Interest Rate Risk Management
Interest Rate Risk Management Loans Repricing & Maturities Interest Rate Sensitivity December 31, 2024 Fixed‐Rate Loans Adjustable‐Rate Loans (incl. Hybrids) Estimated Change from 12/31/24 Balance (in % of Balance (in % of Baseline forecast Term to Maturity 000's) Rate Loans Term to Rate Adjust 000'
Slide 17: 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 Classified Loans • Reduction of $9.7M in Criticized Loan balances in Q2’24 was • Increase in Classified assets in Q3’24 was primari
Slide 18: Solid Credit Risk Management Metrics
Solid Credit Risk Management Metrics High‐touch relationship‐based banking model results in superior portfolio performance Quarterly Net Charge Offs (recoveries) Credit Commentary $500 (in thousands) • Proactive SBA and Loan Portfolio Management $400 • 5 total non‐performing loans ($11.5 million): $
Slide 19: Current Expected Credit Loss (CECL) Implementation
Current Expected Credit Loss (“CECL”) Implementation ACL Roll‐Forward 1Q'24 2Q'24 3Q'24 4Q'24 Dec 31, 2023 Change in Mar 31, 2024 Change in Jun 30, 2024 Change in Sep 30, 2024 Change in Dec 31, 2024 $ in thousands CECL Reserve CECL Reserve CECL Reserve CECL Reserve CECL Allowance for loan losses 24,
Slide 20: 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 Expenses Non‐interest Expense & Efficiency Details • Non‐interest expense
Slide 21: Strong Capital Position
Strong Capital Position Strong build of capital ratios through 2023 & 2024, even with sustained balance sheet growth Select CalPrivate Bank Capital Ratios * *Preliminary Tangible Book Value per Share Capital Strategy • Manage capital to achieve strong levels of Return on Equity • Proven ability to a
Slide 22: CalPrivate Culture and Community Outreach
CalPrivate Culture and Community Outreach Community Support • An important aspect to our company culture is community engagement • 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 • Employee contrib
Slide 23: Technology & Innovation Differentiation
Technology & Innovation Differentiation •Investment in technology is a competitive necessity •Enables improved performance by providing improved Client Experience, Technology Principles expansion of the Client base and increased productivity •Helps address regulatory pressure related to managing ope
Slide 24: 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 24
Slide 25: Q&A
Q&A (OTCQX: P B A M ) (Holding Company for CalPrivate Bank)
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