Private Bancorp of America (PBAM) Q3 2024 earnings summary

Executive summary

• Achieved record net income of $9.5 million for Q3 2024, up from $7.8 million in Q2 2024 and $8.5 million in Q3 2023.

• Diluted EPS reached $1.63, compared to $1.35 in the prior quarter and $1.47 a year ago.

• Return on average assets was 1.62% and return on average tangible common equity was 18.18% for Q3 2024.

• Recognized as #1 for ROA and ROE among banks with less than $5B in assets and 10th best bank of any size nationally.

• Continued strong growth in core deposits and tangible book value per share, with franchise value enhanced by investments in people and technology.

Financial highlights

• Net interest income for Q3 2024 was $25.7 million, up 4.2% from Q2 2024 and 10.5% year-over-year.

• Net interest margin was 4.44%, down from 4.48% in Q2 2024 and 4.67% in Q3 2023.

• Total assets reached $2.39 billion, up $100.7 million from Q2 2024.

• Loans held-for-investment totaled $2.01 billion, up 1.7% sequentially and 14.0% year-over-year.

• Total deposits were $2.11 billion, up 5.3% sequentially and 19.1% year-over-year; core deposits up 7.4% sequentially and 23.0% year-over-year.

• Provision for credit losses was $0.3 million, down from $2.1 million in Q2 2024.

• Noninterest income was $1.4 million, with SBA loan sales of $9.1 million and a 10.96% average trade premium.

• Noninterest expense was $13.4 million, with an efficiency ratio of 49.46%.

Outlook and guidance

• Management remains committed to investing in technology, marketing, and staffing to support growth.

• Inflationary pressures and low unemployment are expected to continue impacting wage and service provider costs.