- Private Bancorp of America (PBAM, Financial) reports a net income increase of 34.2% year-over-year to $10.6 million for Q1 2025.
- Core deposits grew by 27.5% year-over-year, reaching $2.05 billion by the end of Q1 2025.
- Total cost of deposits fell to 2.22% from 2.36% in the previous quarter.
Private Bancorp of America, Inc. (PBAM) announced robust financial results for the first quarter of 2025, with net income reaching $10.6 million, or $1.80 per diluted share. This marks a notable improvement from the $7.9 million reported in Q1 2024. However, it represents a slight decline from the $10.7 million recorded in the previous quarter.
Total deposits increased to $2.19 billion as of March 31, 2025, reflecting a 2.7% rise from the end of 2024 and a 15.1% increase year-over-year. This growth includes a substantial rise in core deposits, which surged by 27.5% year-over-year to $2.05 billion. The bank's net interest margin was 4.61%, slightly down from 4.67% in the last quarter.
The cost of deposits decreased to 2.22%, illustrating improved funding conditions from both the previous quarter and the same period last year, where costs stood at 2.36% and 2.61%, respectively. Meanwhile, loans held-for-investment saw a marginal decline of 0.3%, settling at $2.08 billion.
Despite the challenges, the bank maintained strong capital ratios, with a Tier 1 leverage ratio of 10.35% and a total risk-based capital ratio of 13.00%. However, asset quality indicators showed an increase in criticized and classified loans to 1.96% of total loans, up from 1.18% the previous quarter.
Private Bancorp's liquidity position remains solid, with total available liquidity reported at $2.1 billion, representing 192.8% of uninsured deposits. This liquidity includes $366 million in on-balance sheet resources and an additional $1.8 billion in unused borrowing capacity.
