Private Bancorp of America (PBAM) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $7.8 million, nearly flat sequentially but down from $15.5 million (GAAP) in Q2 2023, which included significant one-time recoveries and legal settlements.

• Diluted EPS for Q2 2024 was $1.35, compared to $1.36 in the prior quarter and $2.69 (GAAP) or $1.43 (adjusted) in Q2 2023.

• Strong loan and deposit growth continued, with expansion across all geographies and business lines, and recognition as a top-performing bank in its asset class.

Financial highlights

• Net interest income rose to $24.7 million, up 8.4% from the prior quarter and 8.6% year-over-year, driven by higher loan yields and asset growth.

• Loans held-for-investment reached $1.98 billion, up 3.8% sequentially and 15.3% year-over-year.

• Total deposits were $2.00 billion, up 5.1% from Q1 2024 and 17.8% year-over-year; core deposits increased 8.5% sequentially.

• Provision for credit losses was $2.1 million, up from $0.2 million in Q1 2024, reflecting loan growth and updated reserve rates.

• Noninterest income was $1.5 million, with SBA loan sales contributing $661 thousand in gains.

• Noninterest expense was $13.0 million, with an efficiency ratio of 49.46%, improved from 52.84% in Q1 2024.

Outlook and guidance

• Management expects continued softness in the SBA 7a loan market.

• Ongoing investments in people, technology, and infrastructure are planned to support franchise growth.

• Inflationary pressures and rising wages are being proactively managed.