Private Bancorp of America (PBAM) Q4 2024 earnings summary

Executive summary

• Achieved record quarterly net income of $10.7M in Q4 2024, up from $9.5M in Q3 2024 and $7.9M in Q4 2023, with diluted EPS of $1.82, up from $1.63 in Q3 and $1.36 in Q4 2023.

• FY 2024 net income was $35.8M, with diluted EPS of $6.15; adjusted net income rose 6.7% year-over-year, excluding 2023's one-time legal recoveries.

• Loans HFI grew 12.9% year-over-year to $2.09B; total deposits increased 13.8% to $2.13B, with core deposits up 19.5%.

• Recognized for top-tier ROA and ROE among banks under $5B in assets and #1 SBA 504 Community Bank Lender in the U.S.

Financial highlights

• Net interest income for Q4 2024 was $27.4M, up 6.6% sequentially and 23.5% year-over-year; net interest margin rose to 4.67% from 4.44% in Q3 and 4.33% in Q4 2023.

• Noninterest income in Q4 2024 was $1.9M, up from $1.4M in Q3 and $1.2M in Q4 2023, driven by higher SBA loan sales.

• Noninterest expense for Q4 2024 was $14.2M, with an efficiency ratio of 48.34%, improved from 49.46% in Q3 and 50.22% in Q4 2023.

• FY 2024 net interest margin was 4.48%, down from 4.65% in FY 2023; total cost of deposits rose to 2.56% from 1.81%.

• Tangible book value per share increased 19.7% year-over-year to $38.40.

Outlook and guidance

• Management highlights continued focus on organic growth, client service, and risk management, with ongoing investments in people, technology, and community engagement.

• The company remains committed to maintaining strong capital and liquidity positions while navigating inflationary pressures and wage growth.