Private Bancorp of America, Inc. (OTCQX: PBAM) and its subsidiary CalPrivate Bank have announced impressive financial results for the fourth quarter of 2024, marking a year of significant growth and profitability.
The company reported a record net income of $10.7 million for Q4 2024, up from $9.5 million in the previous quarter and $7.9 million in Q4 2023. This translates to a return on average assets of 1.80% and a return on average tangible common equity of 19.46%.
Diluted earnings per share reached $1.82, showing substantial growth from $1.63 in the prior quarter and $1.36 in Q4 2023. The bank’s loan portfolio expanded to $2.09 billion, a 3.6% increase from the previous quarter and a 12.9% year-over-year growth.
Total deposits grew to $2.13 billion, up 1.3% from the previous quarter and 13.8% year-over-year. Core deposits, which exclude brokered deposits, increased by 1.1% to $1.89 billion, representing a 19.5% year-over-year growth.
The bank’s net interest margin improved to 4.67% in Q4 2024, up from 4.44% in the previous quarter and 4.33% in Q4 2023. This improvement was primarily driven by a decrease in the cost of deposits, which fell to 2.36% from 2.62% in the prior quarter.
Credit quality remained strong, with total criticized and classified loans at $24.7 million, or 1.18% of total loans, slightly down from the previous quarter. The allowance for loan losses stood at 1.31% of loans held-for-investment.
Rick Sowers, President and CEO, commented on the results: “We are proud of our team’s efforts in both the quarter and the year. We produced top quartile results in both return on assets and equity while continuing our growth trajectory”.
The bank’s performance has earned it several accolades, including the top spot for both Return on Assets (ROA) and Return on Equity (ROE) among banks with less than $5 billion in assets, and the #1 SBA 504 Community Bank Lender in the United States. Despite the strong financial performance, the bank acknowledged the challenges faced by its Los Angeles market due to recent wildfires. Sowers expressed sympathy for those affected and stated that the bank stands ready to assist in any way possible.
Looking ahead, Private Bancorp of America appears positioned for continued growth, leveraging its strong capital ratios and focus on client service in the southern California market. However, the bank remains vigilant about potential risks, including the unknown financial impact of the Los Angeles wildfires on its loan portfolio.
