Private Bancorp of America, Inc. Announces Strong Net Income for Third Quarter 2026

Criticized loans increased to $71.9 million, while net unrealized securities losses widened to $17.7 million before tax.

Rhea-AI Summary

Private Bancorp of America (NASDAQ: PBAM) reported third-quarter 2026 net income of $11.4 million, below the prior quarter but above a year earlier. Diluted earnings per share were $1.97, versus $2.27 in the prior quarter and $1.65 a year earlier. Net interest income rose 16.3% year over year to $34.1 million; net interest margin was 5.05%, versus 5.18% sequentially and 4.65% a year earlier.

At September 30, loans held for investment reached $2.19 billion and core deposits reached $2.36 billion. Nonperforming assets increased to $43.3 million from $40.5 million at June 30. Noninterest expense rose to $18.4 million from $16.9 million sequentially, including approximately $0.9 million in NASDAQ uplisting costs. Tangible book value per share increased to $50.56 from $49.57. The results are unaudited; the bank's capital ratios exceeded the levels for well-capitalized institutions.

14 points · 0 major

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Positive

• Moderate pointNet income of $11.4 million fell from $13.1 million sequentially but rose from $9.7 million a year earlier.
• Moderate pointNet interest income of $34.1 million increased 1.7% sequentially and 16.3% year over year.
• Moderate pointCore deposits of $2.36 billion increased 1.4% from June 30 and 7.8% from September 30, 2025.
• Moderate pointLoans held for investment of $2.19 billion grew 2.5% sequentially and 5.0% year over year.
• Moderate pointTangible book value per share of $50.56 rose from $49.57 sequentially and $44.11 a year earlier.

9 minor points

• Minor pointDiluted EPS of $1.97 compared with $2.27 sequentially and $1.65 in third-quarter 2025.
• Minor pointThird-quarter returns were 1.65% on average assets and 15.62% on average tangible common equity.
• Minor pointAvailable liquidity of $2.4 billion covered 191.8% of uninsured deposits, net of collateralized and fiduciary deposits.
• Minor pointAvailable-for-sale securities of $267.7 million increased 12.9% sequentially and 33.9% year over year, primarily through purchases.
• Minor pointSecurities portfolio book yield increased to 4.13% at September 30 from 3.83% a year earlier.
• Minor pointNet loan recoveries totaled $0.9 million in third-quarter 2026.
• Minor pointSBA loan sales of $6.1 million generated a $337 thousand net gain, versus $4 thousand sequentially.
• Minor pointBank capital ratios exceeded well-capitalized levels; Tier I risk-based capital rose to 13.95% from 13.61% sequentially.
• Minor pointNASDAQ trading began July 30, 2026, following registration effectiveness on July 29.

Negative

• Moderate pointCriticized loans of $71.9 million compared with $58.0 million sequentially and $70.5 million a year earlier.
• Moderate pointNonperforming assets of $43.3 million increased from $40.5 million sequentially, reaching 1.58% of assets versus 1.50%.
• Moderate pointNet unrealized securities losses widened to $17.7 million before tax from $8.9 million at June 30.
• Moderate pointNoninterest expense of $18.4 million increased from $16.9 million sequentially and $15.9 million a year earlier.
• Moderate pointCredit-loss provision expense of $1.3 million compared with a $0.2 million sequential reversal and $1.8 million year-earlier expense.
• Moderate pointNet interest margin of 5.05% declined from 5.18% sequentially but exceeded 4.65% a year earlier.
• Moderate pointTotal funding costs of 1.71% increased from 1.68% sequentially but declined from 2.08% a year earlier.
• Moderate pointEfficiency ratio of 51.68% increased from 48.81% sequentially and 50.49% a year earlier.
• Moderate pointUninsured deposits, net of collateralized and fiduciary accounts, represented 52.8% of total deposits at September 30.

11 minor points

• Minor pointClassified loans increased to $67.7 million at September 30 from $51.0 million at June 30.
• Minor pointNonaccrual loans of $28.8 million increased from $26.9 million at June 30.
• Minor pointDeposit costs of 1.66% increased from 1.63% sequentially but declined from 2.02% a year earlier.
• Minor pointCore deposit costs of 1.61% increased from 1.57% sequentially but declined from 1.93% a year earlier.
• Minor pointInterest-earning asset yield declined to 6.60% from 6.70% in the prior quarter.
• Minor pointInterest-bearing liability costs increased to 2.34% from 2.32% in the prior quarter.
• Minor pointDeposit spot rate increased to 1.68% at September 30 from 1.65% at June 30.
• Minor pointNoninterest income of $1.4 million exceeded $1.0 million sequentially but declined from $2.2 million a year earlier.
• Minor pointEffective tax rate of 28.3% increased from 26.7% sequentially but remained below 29.7% a year earlier.
• Minor pointCash and cash equivalents decreased $49.1 million during the quarter as loans and securities increased.
• Minor pointTier I leverage ratio declined to 11.47% from 11.52% at June 30.

News Explained

The board authorized a program during the second quarter allowing Private Bancorp of America to repurchase up to $10.0 million of its common stock; this is permission, not a committed purchase. No shares had been repurchased by September 30, 2026, so the program had not yet resulted in a buyback.

Key Figures

Net income: $11.4 million Diluted earnings per share: $1.97 Net interest income: $34.1 million +5 more

Net income

$11.4 million

Third quarter 2026; compared with $13.1 million in the prior quarter and $9.7 million a year earlier

Diluted earnings per share

$1.97

Third quarter 2026; compared with $2.27 in the prior quarter and $1.65 a year earlier

Net interest income

$34.1 million

Third quarter 2026; up 1.7% from the prior quarter and 16.3% from a year earlier

Net interest margin

5.05%

Third quarter 2026; compared with 5.18% in the prior quarter and 4.65% a year earlier

Core deposits

$2.36 billion

As of September 30, 2026; increased $31.8 million, or 1.4%, from June 30, 2026

Criticized loans

$71.9 million, or 3.29% of total loans

As of September 30, 2026; compared with $58.0 million, or 2.72%, at June 30, 2026

Provision expense

$1.3 million

Third quarter 2026; compared with a $0.2 million provision reversal in the prior quarter

Tangible book value per share

$50.56

As of September 30, 2026; compared with $49.57 at June 30, 2026

Historical Context

1 past event · Latest: Jul 16

1 event

1. Jul 16

   Q2 earnings report

   24h Move

   -0.3%

   Q2 net income and diluted EPS rose year over year, providing a prior-quarter earnings comparison.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

cecl, net interest margin, available-for-sale, nonaccrual

4 terms

cecl financial

"the Company implemented a new current expected credit loss (“CECL”) model"

An accounting standard that requires banks and other lenders to estimate and record expected credit losses for loans and similar financial assets up front, based on historical experience, current conditions and reasonable forecasts. It matters to investors because it changes how much a firm must set aside as a loss reserve, which directly affects reported profits, capital levels and perceived financial strength—think of it as stocking a reserve for future bad loans before the rain starts.

net interest margin financial

"Net interest margin was 5.05% for the third quarter of 2026"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

available-for-sale financial

"Investment securities available-for-sale (“AFS”) were $267.7 million"

A classification for bonds, stocks or other investments that a company plans to keep but might sell before they reach full term. Think of it like items a shop keeps on a shelf for potential sale: their market value can go up or down while the company holds them, and those unrealized gains or losses are shown separately from operating profit until they are sold. Investors watch this because large swings can change a company’s reported net worth and signal how much flexibility it has to raise cash quickly.

nonaccrual financial

"nonaccrual loans were $28.8 million, up from $26.9 million"

A nonaccrual asset is a loan or investment that a lender stops counting as earning interest because the borrower is not making scheduled payments or the lender doubts future payments. Think of it like putting a subscription on hold when you stop receiving payments; it reduces reported income and signals a higher risk that the lender may not get repaid, which can affect a bank's profits and the value of its loan portfolio.

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Third Quarter 2026 Highlights

• Net income for the third quarter of 2026 was $11.4 million, compared to $13.1 million in the prior quarter and $9.7 million in the third quarter of 2025.
• Net income for the third quarter of 2026 represents a return on average assets of 1.65% and a return on average tangible common equity⁽¹⁾ of 15.62%.
• Diluted earnings per share for the third quarter of 2026 was $1.97, compared to $2.27 in the prior quarter and $1.65 in the third quarter of 2025.
• Core deposits were $2.36 billion as of September 30, 2026, an increase of $31.8 million, or 1.4%, from June 30, 2026, and an increase of $171.5 million, or 7.8%, from September 30, 2025. Total deposits were $2.41 billion. There was no change to the balance in brokered deposits.
• Total cost of deposits was 1.66% for the third quarter of 2026, compared to 1.63% in the prior quarter and 2.02% in the third quarter of 2025, an increase of 3 bps quarter over quarter and a decrease of 17.8% year over year. The spot rate for total deposits was 1.68% as of September 30, 2026, compared to 1.65% at June 30, 2026. Total cost of funding sources was 1.71% for the third quarter of 2026, compared to 1.68% in the prior quarter and 2.08% in the third quarter of 2025.
• Loans held-for-investment (“HFI”) totaled $2.19 billion as of September 30, 2026, an increase of $54.0 million, or 2.5%, from June 30, 2026, and an increase of $105.1 million, or 5.0%, from September 30, 2025.
• Investment securities available-for-sale (“AFS”) were $267.7 million as of September 30, 2026, an increase of $30.6 million, or 12.9%, since June 30, 2026, and an increase of $67.8 million, or 33.9%, from September 30, 2025, primarily as a result of new securities purchased.
• Net interest margin was 5.05% for the third quarter of 2026, compared to 5.18% in the prior quarter and 4.65% in the third quarter of 2025.
• For the third quarter of 2026, a provision expense of $1.3 million was recorded, compared to a provision reversal of $0.2 million for the prior quarter and a provision expense of $1.8 million for the third quarter of 2025. The allowance for loan losses was 1.45% of loans HFI as of September 30, 2026, compared to 1.43% at June 30, 2026 and 1.38% at September 30, 2025.
• As of September 30, 2026, criticized loans totaled $71.9 million, or 3.29% of total loans, compared to $58.0 million, or 2.72% of total loans, at June 30, 2026 and $70.5 million, or 3.39% of total loans, at September 30, 2025.
• Tangible book value per share⁽¹⁾ was $50.56 as of September 30, 2026, compared to $49.57 at June 30, 2026 and $44.11 at September 30, 2025.
• The Company’s Registration Statement on Form 10 (the “Registration Statement”) was declared effective by the Securities and Exchange Commission on July 29, 2026, and its common stock began trading on the NASDAQ Global Select Market (“NASDAQ”) on July 30, 2026 (the “NASDAQ Uplisting”). Included in the quarter were approximately $0.9 million of expenses associated with the NASDAQ Uplisting, and approximately $1.4 million year to date.

LA JOLLA, Calif., Oct. 16, 2026 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (NASDAQ: PBAM), (the “Company”) and CalPrivate Bank (the “Bank”) announced unaudited financial results for the third fiscal quarter ended September 30, 2026. The Company reported net income of $11.4 million, or $1.97 per diluted share, for the third quarter of 2026, compared to $13.1 million, or $2.27 per diluted share, in the prior quarter, and $9.7 million, or $1.65 per diluted share, in the third quarter of 2025.

Rick Sowers, President and Chief Executive Officer of the Company and the Bank, stated, “We are pleased with our third quarter results. The quarter included strong loan production and continued top-quartile net interest margin. Pipelines are strong going into the fourth quarter. Although criticized assets increased in the quarter, we are dedicating the appropriate resources to improve our credit metrics and believe that reserves are more than adequate. Our focus remains on delivering superior service and solutions to our clients and building a scalable business through investments in technology and people, including our recent hires in key positions — Chief Operating Officer, Chief Credit Officer and General Counsel, amongst others.”

Sowers added, “This year we celebrate 20 years of providing our signature Distinctly Different® service. It’s this commitment to quality service delivered by an exceptional team that has driven consistent growth and shareholder value creation.”

“PBAM began trading on NASDAQ on July 30, 2026, and the subsequent share price performance reflected not only continued attractive financial results but also the increase in trading volume in the third quarter. We thank the management team and the professional support we received for their sterling efforts in this transformative uplisting,” said Selwyn Isakow, Chairman of the Board of the Company and the Bank. “Profitability continues to be strong and the potential of being included in the reconstitution of the Russell 2000 Index provides additional momentum. The listing also creates additional strategic options and flexibility in pursuing external growth opportunities and enhances our successful team lift-out organic growth strategy by enhancing operational advantages in retaining and hiring exceptional talent. These factors, together with access to capital, provide opportunities for creating sustainable long-term value for shareholders.”

STATEMENT OF INCOME

Net Interest Income

Net interest income for the third quarter of 2026 totaled $34.1 million, an increase of $0.6 million, or 1.7%, from the prior quarter and an increase of $4.8 million, or 16.3%, from the third quarter of 2025. The increase from the prior quarter was driven by a $1.2 million increase in interest income, primarily reflecting higher interest on deposits in other financial institutions and higher investment securities income, partially offset by a modest increase in interest expense.

Net Interest Margin

Net interest margin (“NIM”) for the third quarter of 2026 was 5.05%, compared to 5.18% for the prior quarter and 4.65% in the third quarter of 2025. The decrease of 13 basis points (bps) in NIM from the prior quarter was primarily a result of the 15 bps positive impact from net nonaccrual interest adjustments in the second quarter, partially offset by approximately 4 bps from higher prepayment penalties and 2 bps from a special FHLB stock dividend recorded in the third quarter. The yield on interest-earning assets was 6.60% for the third quarter of 2026 compared to 6.70% for the prior quarter, and the cost of interest-bearing liabilities was 2.34% for the third quarter of 2026 compared to 2.32% in the prior quarter. The cost of total deposits was 1.66% for the third quarter of 2026 compared to 1.63% in the prior quarter. The cost of core deposits, which excludes brokered deposits, was 1.61% in the third quarter of 2026 compared to 1.57% in the prior quarter and 1.93% for the third quarter of 2025. The spot rate for total deposits was 1.68% as of September 30, 2026, compared to 1.65% at June 30, 2026.

Provision for Credit Losses

A credit loss provision expense of $1.3 million was recorded for the third quarter of 2026, compared to a $0.2 million provision reversal in the prior quarter and a $1.8 million provision expense in the third quarter of 2025. The total provision expense for the quarter was comprised of $0.4 million for loans HFI and $0.9 million for unfunded commitments. Net recoveries were $0.9 million. Effective July 1, 2026, the Company implemented a new current expected credit loss (“CECL”) model for loans HFI and unfunded commitments. The third-quarter provision included approximately $0.8 million associated with the model transition, primarily reflecting an increase in the reserve for unfunded commitments. For more details, please refer to the “Asset Quality and Allowance for Credit Losses (ACL)” section below.

Noninterest Income

Noninterest income was $1.4 million for the third quarter of 2026, compared to $1.0 million in the prior quarter and $2.2 million in the third quarter of 2025. U.S. Small Business Administration (“SBA”) loans totaling $6.1 million were sold during the third quarter of 2026 with a 10.72% average trade premium, resulting in a net gain on sale of $337 thousand, compared with sales of $3.4 million with a 10.50% average trade premium and a $0.2 million premium reimbursement that reduced the net gain on sale to $4 thousand in the prior quarter.

Noninterest Expense

Noninterest expense was $18.4 million for the third quarter of 2026, compared to $16.9 million in the prior quarter and $15.9 million in the third quarter of 2025. The $1.5 million increase from the prior quarter was primarily due to $0.6 million of impairment expense related to other real estate owned (“OREO”), a $0.4 million increase in compensation and employee benefits, and increased costs related to the NASDAQ Uplisting. The NASDAQ Uplisting costs totaled approximately $0.9 million during the quarter and were included primarily in professional services and other expenses. Other expenses increased $1.1 million from the third quarter of 2025, primarily due to the $0.6 million OREO impairment expense and $0.3 million NASDAQ initial listing fee. The efficiency ratio⁽¹⁾ was 51.68% for the third quarter of 2026, compared to 48.81% in the prior quarter and 50.49% in the third quarter of 2025. The increase in the efficiency ratio from the prior quarter primarily reflected a $1.5 million increase in noninterest expense, partially offset by a $0.4 million increase in noninterest income and a $0.6 million increase in net interest income.

The Company continues to invest in people, processes and technology to scale the business. Inflationary pressures and low unemployment continue to contribute to upward pressure on wages, as well as increased costs related to third-party service providers, which we proactively monitor and manage.

Provision for Income Tax Expense

Provision for income tax expense was $4.5 million for the third quarter of 2026, compared to $4.8 million for the prior quarter. The effective tax rate for the third quarter of 2026 was 28.3%, compared to 26.7% in the prior quarter and 29.7% in the third quarter of 2025. The effective tax rate increased from the prior quarter primarily due to discrete tax benefits associated with equity compensation that lowered the prior quarter’s effective tax rate.

STATEMENT OF FINANCIAL CONDITION

As of September 30, 2026, total assets were $2.75 billion, an increase of $39.9 million since June 30, 2026. The increase in assets from the prior quarter primarily reflected a $54.0 million increase in loans HFI and a $30.6 million increase in AFS securities, partially offset by a $49.1 million decrease in cash and cash equivalents. AFS securities were $267.7 million as of September 30, 2026, an increase of $30.6 million, or 12.9%, since June 30, 2026, primarily as a result of new securities purchased. As of September 30, 2026, the net unrealized loss on the AFS securities portfolio, which is comprised primarily of U.S. government agency mortgage-backed securities, was $17.7 million (pre-tax) compared to a loss of $8.9 million (pre-tax) as of June 30, 2026. The increase in net unrealized losses was due to higher market interest rates during the quarter. The average duration of the Bank’s AFS portfolio is 4.4 years. The AFS portfolio’s book yield increased to 4.13% at September 30, 2026, from 3.83% at September 30, 2025. The Company has no held-to-maturity securities. Loans HFI totaled $2.19 billion as of September 30, 2026, an increase of $54.0 million since June 30, 2026, primarily reflecting higher investor-owned commercial real estate, SBA 504, multifamily and construction loan balances, partially offset by lower owner-occupied commercial real estate and commercial and industrial balances.

Total deposits were $2.41 billion as of September 30, 2026, an increase of $31.8 million since June 30, 2026. During the quarter, core deposits increased by $31.8 million, as a $25.1 million increase in interest-bearing core deposits (including balances in the IntraFi ICS and CDARS programs) was accompanied by a $6.7 million increase in noninterest-bearing core deposits. Noninterest-bearing deposits represented 28.3% of total core deposits. Brokered deposits were $49.3 million as of September 30, 2026, unchanged since June 30, 2026. Uninsured deposits, net of collateralized and fiduciary deposit accounts, represented 52.8% of total deposits as of September 30, 2026.

As of September 30, 2026, total available liquidity was $2.4 billion or 191.8% of uninsured deposits, net of collateralized and fiduciary deposits. Total available liquidity is comprised of $502 million of on-balance sheet liquidity (cash and investment securities) and $1.9 billion of unused borrowing capacity.

Asset Quality and Allowance for Credit Losses (ACL)

As of September 30, 2026, the allowance for loan losses was $31.7 million, or 1.45% of loans HFI, compared to $30.5 million or 1.43% of loans HFI as of June 30, 2026. The allowance-to-loans HFI ratio was 1.38% at September 30, 2025. The increase in the coverage ratio primarily reflected net loan growth, with originations and balance increases carrying higher reserve rates than loans paid off or paid down, as well as risk-rating downgrades and higher qualitative reserves on construction loans. Nonperforming assets were 1.58% of total assets as of September 30, 2026, compared to 1.50% as of June 30, 2026.

Effective July 1, 2026, the Company implemented a new CECL model for loans HFI and unfunded commitments, including a change in its CECL software vendor and more granular loan segmentation based on shared risk characteristics. The reserve for unfunded commitments was $1.4 million as of September 30, 2026, compared to $0.5 million as of June 30, 2026. At the July 1 transition, the new model decreased the allowance for loans HFI by approximately $47 thousand and increased the reserve for unfunded commitments by approximately $0.8 million.

At September 30, 2026, criticized loans totaled $71.9 million, or 3.29% of total loans, compared to $58.0 million, or 2.72% of total loans, at June 30, 2026, of which classified loans were $67.7 million and $51.0 million, respectively. Criticized loans were $70.5 million, or 3.39% of total loans, at September 30, 2025. The September 30, 2026 classified balance consisted of 54 loans: 42 real estate secured loans totaling $57.5 million with a 62.0% weighted-average LTV; and 12 commercial and industrial loans totaling $10.2 million. The increase in criticized loans is primarily attributable to a Chapter 11 bankruptcy filing impacting two related real estate investor loans totaling $8.8 million and delinquent payments for two SBA 504 real estate loans totaling $3.7 million.

As of September 30, 2026, nonaccrual loans were $28.8 million, up from $26.9 million as of June 30, 2026. Specific reserves of $1.9 million were held against nonaccrual loan balances of $4.4 million. The nonaccrual loans without specific reserves were supported by collateral values exceeding their loan balances, except for one $1.5 million commercial and industrial loan placed on nonaccrual during the quarter.

As of September 30, 2026, nonperforming assets were $43.3 million, or 1.58% of total assets, an increase of $2.8 million from $40.5 million, or 1.50% of total assets, at June 30, 2026, driven by a $1.9 million increase in nonaccrual loans and a $0.9 million increase in other real estate owned.

Capital Ratios ⁽²⁾

The Bank’s capital ratios were in excess of the levels established for “well capitalized” institutions and are as follows:

	September 30, 2026 (2)		June 30, 2026
CalPrivate Bank
Tier I leverage ratio	11.47%		11.52%
Tier I risk-based capital ratio	13.95%		13.61%
Total risk-based capital ratio	15.20%		14.86%

(2) September 30, 2026 capital ratios are preliminary and subject to change.

Share Repurchases Authorized

During the second quarter of 2026, the Company’s Board of Directors authorized a stock repurchase program under which the Company may repurchase up to $10.0 million of its common stock. As of September 30, 2026, no shares had been repurchased under this program.

About Private Bancorp of America, Inc. (NASDAQ: PBAM)

PBAM is the holding company for CalPrivate Bank, which operates offices in Coronado, San Diego, La Jolla, Newport Beach, El Segundo, Beverly Hills, and Montecito, as well as through efficient digital banking services. CalPrivate Bank is driven by its core values of building client Relationships based on superior funding Solutions, unparalleled Service, and mutual Trust. The Bank caters to high-net-worth individuals, professionals, closely held businesses, and real estate entrepreneurs, delivering a Distinctly Different^® personalized banking experience while leveraging cutting-edge technology to enhance our clients’ evolving needs. CalPrivate Bank is in the top tier of customer service survey ratings in the nation, scoring almost 3x higher than the median domestic bank. The Bank offers comprehensive deposit and treasury services, rapid and creative loan options including various portfolio and government-guaranteed lending programs, and innovative, unique technologies that drive enhanced client performance. Additionally, CalPrivate Bank is a Bauer Financial 5-star rated bank, an SBA Preferred Lender, and has been honored as Community Bank 504 Lender of the Year by the NADCO Community Impact Awards, exemplifying excellence in the banking industry. These recognitions highlight the Bank’s commitment to delivering exceptional banking services and setting new industry standards.

Investor information is available at www.investors.pbam.com. CalPrivate Bank’s website is www.calprivate.bank.

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures in addition to results presented in accordance with GAAP, including efficiency ratio, pretax pre-provision net revenue, average tangible common equity, tangible book value per share and return on average tangible common equity. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s results of operations and financial condition and to enhance investors’ overall understanding of such results of operations and financial condition, to permit investors to effectively analyze financial trends of our business activities, and to enhance comparability with peers across the financial services sector. These non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures prepared in accordance with GAAP and should be read in conjunction with the Company’s GAAP financial information. A reconciliation of the most comparable GAAP financial measures to non-GAAP financial measures is included in the accompanying financial tables.

Investor Relations Contacts

Rick Sowers
President and Chief Executive Officer
Private Bancorp of America, Inc., and CalPrivate Bank
(424) 303-4894

Cory Stewart
Executive Vice President and Chief Financial Officer
Private Bancorp of America, Inc., and CalPrivate Bank
(206) 293-3669

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements about the Company’s plans, objectives, expectations, intentions, estimates, projections and beliefs concerning future events, financial performance and the assumptions underlying those statements. Words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend” and “plan,” and similar expressions, may identify forward-looking statements. These statements involve known and unknown risks and uncertainties, many beyond the Company’s control, that could cause actual results to differ materially from those expressed or implied.

These factors include the effects of depositors withdrawing funds unexpectedly, counterparties being unable to provide liquidity sources that we believe should be available, loan losses, economic conditions and competition in the geographic and business areas in which the Company operates, including competition in lending and deposit acquisition, the unpredictability of fee income from participation in SBA loan programs, liquidations and mergers in our markets and nationally, our ability to successfully integrate and develop business through the addition of new personnel, whether our efforts to expand loan, product and service offerings will prove profitable, system failures and data security, whether we can effectively secure and implement new technology solutions, inflation, fluctuations in interest rates, legislation and governmental regulation; public company costs and compliance with SEC reporting, NASDAQ and internal-control requirements; and volatility and liquidity of our common stock.

Other risks include changes in the U.S. and local economies and financial markets; developments in the banking industry that affect customer confidence, liquidity and regulatory responses; changes in trade, monetary and fiscal policy, including Federal Reserve policy; the speed and predictability of changes in interest rates and liquidity, market, credit and operational conditions; our ability to attract and retain deposits and other funding sources and changes in their composition; labor-market conditions and federal budget and debt developments; concentrations in SBA and commercial real estate loans and in particular geographic areas and industries; possible credit-related impairment of investment securities; changes in nonperforming assets and charge-offs; customer acceptance of new products and our ability to retain essential personnel; changes in tax, banking, securities and insurance laws and their application; the cost and complexity of maintaining compliance; the effectiveness of our risk-management framework and quantitative models; changes in accounting standards and regulatory requirements, including FDIC assessments; changes in consumer spending, borrowing and saving and in borrowers’ financial condition; competition from banks, nonbank providers and financial technology companies; financial-system disruptions, geopolitical events, war, terrorism, pandemics and natural or man-made disasters; cybersecurity threats and the cost of defending against them; disruption from artificial intelligence and other new technologies; climate-related credit, compliance, reputational and operating risks; and legal, regulatory and judicial proceedings. Our ability to manage these risks and to meet public-company obligations, including Section 404 of the Sarbanes-Oxley Act, may also affect actual results.

Additional risks appear in our Form 10, as amended, and latest Form 10-Q filed with the SEC, and in other SEC filings available at www.sec.gov. Forward-looking statements are not guarantees or predictions of future performance. We undertake no obligation to update forward-looking statements for changes in underlying factors, new information, future events or otherwise. Forward-looking statements speak only as of the date made; you should not place undue reliance on them. Although we believe in good faith the assumptions and bases supporting our forward-looking statements to be reasonable, there can be no assurance that those assumptions and bases will prove accurate.

PRIVATE BANCORP OF AMERICA, INC. CONSOLIDATED BALANCE SHEET (Unaudited) (Dollars in thousands)
		Sep 30, 2026				Jun 30, 2026				Sep 30, 2025
Assets
Cash and due from banks		$	30,346			$	32,211			$	29,605
Interest-bearing deposits in other financial institutions			16,825				22,275				16,314
Interest-bearing deposits at Federal Reserve Bank			204,063				245,869				215,448
Total cash and due from banks			251,234				300,355				261,367
Interest-bearing time deposits with other institutions			4,356				4,344				4,295
Investment debt securities available for sale			267,701				237,074				199,852
Loans held for sale			-				-				314
Loans, net of deferred fees and costs and unaccreted discounts			2,186,690				2,132,724				2,081,611
Allowance for loan losses			(31,722	)			(30,462	)			(28,785	)
Loans held-for-investment, net of allowance			2,154,968				2,102,262				2,052,826
Federal Home Loan Bank stock, at cost			11,251				11,251				10,652
Operating lease right of use assets			6,757				6,733				6,811
Premises and equipment, net			2,759				2,525				2,252
Servicing assets, net			1,632				1,717				2,004
Accrued interest receivable			9,417				8,248				8,031
Other assets			38,145				33,793				28,077
Total assets		$	2,748,220			$	2,708,302			$	2,576,481
Liabilities and Shareholders' Equity
Liabilities
Noninterest bearing		$	669,868			$	663,200			$	654,072
Interest bearing			1,743,125				1,718,037				1,618,296
Total deposits			2,412,993				2,381,237				2,272,368
FHLB borrowings			8,000				8,000				11,000
Other borrowings			17,981				17,979				17,974
Accrued interest payable and other liabilities			17,897				15,570				17,185
Total liabilities			2,456,871				2,422,786				2,318,527
Shareholders' equity
Common stock			78,223				78,214				76,403
Additional paid-in capital			4,849				4,264				4,479
Retained earnings			220,660				209,263				182,546
Accumulated other comprehensive (loss) income, net			(12,383	)			(6,225	)			(5,474	)
Total shareholders' equity			291,349				285,516				257,954
Total liabilities and shareholders' equity		$	2,748,220			$	2,708,302			$	2,576,481

PRIVATE BANCORP OF AMERICA, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Dollars in thousands, except per share amounts)
		For the three months ended												Year to Date
		Sep 30, 2026				Jun 30, 2026				Sep 30, 2025				Sep 30, 2026				Sep 30, 2025
Interest Income
Loans		$	39,050			$	39,038			$	36,771			$	116,055			$	111,340
Investment securities			2,920				2,384				2,051				7,965				5,356
Deposits in other financial institutions			2,630				1,953				2,432				6,368				6,814
Total interest income			44,600				43,375				41,254				130,388				123,510
Interest Expense
Deposits			10,052				9,413				11,440				28,825				34,715
Borrowings			423				417				482				1,284				1,618
Total interest expense			10,475				9,830				11,922				30,109				36,333
Net interest income			34,125				33,545				29,332				100,279				87,177
Provision for credit losses			1,261				(204	)			1,792				3,076				3,384
Net interest income after provision for credit losses			32,864				33,749				27,540				97,203				83,793
Noninterest income:
Service charges on deposit accounts			520				533				537				1,597				1,685
Net gain on sale of loans			337				4				1,008				1,248				2,000
Other noninterest income			578				464				627				1,526				1,830
Total noninterest income			1,435				1,001				2,172				4,371				5,515
Noninterest expense:
Compensation and employee benefits			11,552				11,142				10,882				33,505				30,949
Occupancy and equipment			944				876				841				2,678				2,525
Data processing			1,476				1,491				1,429				4,336				4,151
Professional services			1,281				1,061				742				2,952				2,189
Other expenses			3,124				2,293				2,011				7,449				5,835
Total noninterest expense			18,377				16,863				15,905				50,920				45,649
Income before provision for income taxes			15,922				17,887				13,807				50,654				43,659
Provision for income taxes			4,513				4,769				4,106				14,100				12,947
Net income		$	11,409			$	13,118			$	9,701			$	36,554			$	30,712
Net income available to common shareholders		$	11,326			$	13,018			$	9,623			$	36,292			$	30,459
Earnings per share
Basic earnings per share		$	1.99			$	2.29			$	1.67			$	6.38			$	5.30
Diluted earnings per share		$	1.97			$	2.27			$	1.65			$	6.31			$	5.22
Average shares outstanding			5,682,307				5,681,165				5,757,192				5,685,830				5,748,975
Diluted average shares outstanding			5,749,108				5,741,395				5,837,837				5,754,931				5,833,902

PRIVATE BANCORP OF AMERICA, INC. Consolidated average balance sheet, interest, yield and rates (Unaudited) (Dollars in thousands)
		For the three months ended
		Sep 30, 2026												Jun 30, 2026												Sep 30, 2025
		Average Balance				Interest				Average Yield/Rate				Average Balance				Interest				Average Yield/Rate				Average Balance				Interest				Average Yield/Rate
Interest-Earning Assets
Deposits in other financial institutions		$	265,181			$	2,630				3.93	%		$	206,162			$	1,953				3.80	%		$	210,669			$	2,432				4.58	%
Investment securities			266,645				2,920				4.38	%			241,093				2,384				3.96	%			203,167				2,051				4.04	%
Loans, including LHFS			2,149,788				39,050				7.21	%			2,148,935				39,038				7.29	%			2,091,309				36,771				6.98	%
Total interest-earning assets			2,681,614				44,600				6.60	%			2,596,190				43,375				6.70	%			2,505,145				41,254				6.53	%
Noninterest-earning assets			58,108												46,930												45,419
Total Assets		$	2,739,722											$	2,643,120											$	2,550,564
Interest-Bearing Liabilities
Interest bearing DDA, excluding brokered			312,893				459				0.58	%			293,170				319				0.44	%			262,730				878				1.33	%
Savings & MMA, excluding brokered			1,156,007				7,087				2.43	%			1,114,162				6,765				2.44	%			1,031,209				7,456				2.87	%
Time deposits, excluding brokered			230,863				1,988				3.42	%			213,426				1,818				3.42	%			233,094				2,185				3.72	%
Total deposits, excluding brokered			1,699,763				9,534				2.23	%			1,620,758				8,902				2.20	%			1,527,033				10,519				2.73	%
Total brokered deposits			49,301				518				4.17	%			49,514				511				4.14	%			84,841				921				4.31	%
Total Interest-Bearing Deposits			1,749,064				10,052				2.28	%			1,670,272				9,413				2.26	%			1,611,874				11,440				2.82	%
FHLB advances			8,000				85				4.22	%			8,000				83				4.16	%			11,000				120				4.33	%
Other borrowings			17,980				338				7.46	%			17,981				334				7.45	%			17,973				362				7.99	%
Total Interest-Bearing Liabilities			1,775,044				10,475				2.34	%			1,696,253				9,830				2.32	%			1,640,847				11,922				2.88	%
Noninterest-bearing deposits			656,242												649,135												638,306
Total Funding Sources			2,431,286				10,475				1.71	%			2,345,388				9,830				1.68	%			2,279,153				11,922				2.08	%
Noninterest-bearing liabilities			16,901												17,583												17,582
Shareholders' equity			291,535												280,149												253,829
Total Liabilities and Shareholders' Equity		$	2,739,722											$	2,643,120											$	2,550,564
Net interest income/spread						$	34,125				4.89	%						$	33,545				5.02	%						$	29,332				4.45	%
Net interest margin											5.05	%											5.18	%											4.65	%

PRIVATE BANCORP OF AMERICA, INC. Consolidated average balance sheet, interest, yield and rates (Unaudited) (Dollars in thousands)
		Year to Date
		Sep 30, 2026												Sep 30, 2025
		Average Balance				Interest				Average Yield/Rate				Average Balance				Interest				Average Yield/Rate
Interest-Earning Assets:
Deposits in other financial institutions		$	219,024			$	6,368				3.89	%		$	201,788			$	6,814				4.51	%
Investment securities			246,058				7,965				4.32	%			181,395				5,356				3.94	%
Loans			2,141,437				116,055				7.25	%			2,079,818				111,340				7.16	%
Total interest-earning assets			2,606,519				130,388				6.69	%			2,463,001				123,510				6.70	%
Noninterest-earning assets			52,788												39,141
Total Assets		$	2,659,307											$	2,502,142
Interest-Bearing Liabilities
Interest bearing DDA, excluding brokered			301,199				1,354				0.60	%			250,054				2,662				1.42	%
Savings & MMA, excluding brokered			1,109,672				20,130				2.43	%			996,707				21,416				2.87	%
Time deposits, excluding brokered			220,369				5,658				3.43	%			216,257				6,238				3.86	%
Total deposits, excluding brokered			1,631,240				27,142				2.22	%			1,463,018				30,316				2.77	%
Total brokered deposits			53,542				1,683				4.20	%			129,252				4,399				4.55	%
Total Interest-Bearing Deposits			1,684,782				28,825				2.29	%			1,592,270				34,715				2.91	%
FHLB advances			8,769				278				4.24	%			15,949				531				4.45	%
Other borrowings			17,979				1,006				7.48	%			17,976				1,087				8.08	%
Total Interest-Bearing Liabilities			1,711,530				30,109				2.35	%			1,626,195				36,333				2.99	%
Noninterest-bearing deposits			648,543												614,319
Total Funding Sources			2,360,073				30,109				1.71	%			2,240,514				36,333				2.17	%
Noninterest-bearing liabilities			17,976												19,279
Shareholders' equity			281,258												242,349
Total Liabilities and Shareholders' Equity		$	2,659,307											$	2,502,142
Net interest income/spread						$	100,279				4.98	%						$	87,177				4.53	%
Net interest margin											5.14	%											4.73	%

PRIVATE BANCORP OF AMERICA, INC. Condensed Balance Sheets (Unaudited) (Dollars in thousands, except per share amounts)
		Sep 30, 2026				Jun 30, 2026				Mar 31, 2026				Dec 31, 2025				Sep 30, 2025
Assets
Cash and due from banks		$	251,234			$	300,355			$	297,001			$	155,015			$	261,367
Interest-bearing time deposits with other institutions			4,356				4,344				4,326				4,355				4,295
Investment securities			267,701				237,074				220,908				217,837				199,852
Loans held for sale			-				-				596				2,330				314
Total loans held-for-investment			2,186,690				2,132,724				2,140,964				2,126,147				2,081,611
Allowance for loan losses			(31,722	)			(30,462	)			(30,236	)			(29,323	)			(28,785	)
Loans held-for-investment, net of allowance			2,154,968				2,102,262				2,110,728				2,096,824				2,052,826
Operating lease right of use assets			6,757				6,733				7,196				6,352				6,811
Premises and equipment, net			2,759				2,525				2,678				2,783				2,252
Other assets and interest receivable			60,445				55,009				50,493				49,561				48,764
Total assets		$	2,748,220			$	2,708,302			$	2,693,926			$	2,535,057			$	2,576,481
Liabilities and Shareholders' Equity
Liabilities
Noninterest Bearing		$	669,868			$	663,200			$	735,802			$	606,105			$	654,072
Interest Bearing			1,743,125				1,718,037				1,638,893				1,617,776				1,618,296
Total Deposits			2,412,993				2,381,237				2,374,695				2,223,881				2,272,368
Borrowings			25,981				25,979				25,978				28,976				28,974
Accrued interest payable and other liabilities			17,897				15,570				20,521				18,236				17,185
Total liabilities			2,456,871				2,422,786				2,421,194				2,271,093				2,318,527
Shareholders' equity
Common stock			78,223				78,214				78,053				76,972				76,403
Additional paid-in capital			4,849				4,264				3,992				4,389				4,479
Retained earnings			220,660				209,263				196,247				187,473				182,546
Accumulated other comprehensive (loss) income			(12,383	)			(6,225	)			(5,560	)			(4,870	)			(5,474	)
Total shareholders' equity			291,349				285,516				272,732				263,964				257,954
Total liabilities and shareholders' equity		$	2,748,220			$	2,708,302			$	2,693,926			$	2,535,057			$	2,576,481
Book value per common share		$	50.85			$	49.87			$	47.72			$	46.08			$	44.45
Tangible book value per common share (1)		$	50.56			$	49.57			$	47.38			$	45.75			$	44.11
Shares outstanding			5,729,832				5,725,696				5,715,049				5,728,187				5,803,016

(1) Non-GAAP measure. See GAAP to non-GAAP Reconciliation table.

PRIVATE BANCORP OF AMERICA, INC. Condensed Statements of Income (Unaudited) (Dollars in thousands, except per share amounts)
	For the three months ended
	Sep 30, 2026				Jun 30, 2026				Mar 31, 2026				Dec 31, 2025				Sep 30, 2025
Interest income	$	44,600			$	43,375			$	42,413			$	41,872			$	41,254
Interest expense		10,475				9,830				9,804				10,819				11,922
Net interest income		34,125				33,545				32,609				31,053				29,332
Provision for credit losses		1,261				(204	)			2,019				2,558				1,792
Net interest income after provision for credit losses		32,864				33,749				30,590				28,495				27,540
Service charges on deposit accounts		520				533				544				529				537
Net gain on sale of loans		337				4				907				320				1,008
Other noninterest income		578				464				484				564				627
Total noninterest income		1,435				1,001				1,935				1,413				2,172
Compensation and employee benefits		11,552				11,142				10,811				10,633				10,882
Occupancy and equipment		944				876				858				906				841
Data processing		1,476				1,491				1,369				1,347				1,429
Professional services		1,281				1,061				610				660				742
Other expenses		3,124				2,293				2,032				2,187				2,011
Total noninterest expense		18,377				16,863				15,680				15,733				15,905
Income before provision for income taxes		15,922				17,887				16,845				14,175				13,807
Income taxes		4,513				4,769				4,818				4,221				4,106
Net income	$	11,409			$	13,118			$	12,027			$	9,954			$	9,701
Net income available to common shareholders	$	11,326			$	13,018			$	11,942			$	9,874			$	9,623
Earnings per share
Basic earnings per share	$	1.99			$	2.29			$	2.10			$	1.73			$	1.67
Diluted earnings per share	$	1.97			$	2.27			$	2.07			$	1.71			$	1.65
Average shares outstanding		5,682,307				5,681,165				5,694,148				5,701,291				5,757,192
Diluted average shares outstanding		5,749,108				5,741,395				5,773,819				5,785,991				5,837,837

	Performance Ratios
	Sep 30, 2026				Jun 30, 2026				Mar 31, 2026				Dec 31, 2025				Sep 30, 2025
ROAA		1.65	%			1.99	%			1.88	%			1.53	%			1.51	%
ROAE		15.53	%			18.78	%			17.94	%			15.11	%			15.16	%
ROATCE (1)		15.62	%			18.90	%			18.07	%			15.22	%			15.28	%
Net interest margin		5.05	%			5.18	%			5.21	%			4.84	%			4.65	%
Net interest spread		4.89	%			5.02	%			5.04	%			4.67	%			4.45	%
Efficiency ratio (1)		51.68	%			48.81	%			45.39	%			48.46	%			50.49	%
Noninterest expense / average assets		2.66	%			2.56	%			2.45	%			2.41	%			2.47	%

(1) Non-GAAP measure. See GAAP to non-GAAP Reconciliation table.

PRIVATE BANCORP OF AMERICA, INC. (Unaudited)
		Selected Quarterly Average Balances
		(Dollars in thousands)
		For the three months ended
		Sep 30, 2026				Jun 30, 2026				Mar 31, 2026				Dec 31, 2025				Sep 30, 2025
Total assets		$	2,739,722			$	2,643,120			$	2,593,472			$	2,589,506			$	2,550,564
Earning assets		$	2,681,614			$	2,596,190			$	2,540,198			$	2,545,081			$	2,505,145
Total loans, including loans held for sale		$	2,149,788			$	2,148,935			$	2,125,318			$	2,101,190			$	2,091,309
Total deposits		$	2,405,306			$	2,319,407			$	2,273,818			$	2,279,735			$	2,250,180
Total shareholders' equity		$	291,535			$	280,149			$	271,873			$	261,344			$	253,829

		Loan Balances by Type
		(Dollars in thousands)
		Sep 30, 2026				Jun 30, 2026				Mar 31, 2026				Dec 31, 2025				Sep 30, 2025
Commercial Real Estate (CRE):
Investor owned		$	598,556			$	570,865			$	560,707			$	577,730			$	595,833
Owner occupied			213,557				223,442				238,653				236,623				226,919
Multifamily			217,207				184,005				177,151				155,941				145,496
Secured by single family			235,949				205,365				194,494				198,743				210,812
Land and construction			59,405				48,782				43,879				47,029				53,976
SBA secured by real estate			431,749				409,467				430,962				403,609				402,648
Total CRE			1,756,423				1,641,926				1,645,846				1,619,675				1,635,684
Commercial business:
Commercial and industrial			394,283				453,854				461,824				471,526				415,353
SBA non-real estate secured			33,022				34,935				31,265				32,853				28,655
Total commercial business			427,305				488,789				493,089				504,379				444,008
Consumer			2,962				2,009				2,029				2,093				1,919
Total loans held for investment		$	2,186,690			$	2,132,724			$	2,140,964			$	2,126,147			$	2,081,611

		Deposits by Type
		(Dollars in thousands)
		Sep 30, 2026				Jun 30, 2026				Mar 31, 2026				Dec 31, 2025				Sep 30, 2025
Noninterest-bearing DDA		$	669,868			$	663,200			$	735,802			$	606,105			$	654,072
Interest-bearing DDA, excluding brokered			305,574				308,561				298,747				309,013				268,210
Savings & MMA, excluding brokered			1,142,469				1,136,048				1,073,682				1,024,829				1,038,035
Time deposits, excluding brokered			245,781				224,127				216,915				218,871				231,886
Total deposits, excluding brokered			2,363,692				2,331,936				2,325,146				2,158,818				2,192,203
Total brokered deposits			49,301				49,301				49,549				65,063				80,165
Total deposits		$	2,412,993			$	2,381,237			$	2,374,695			$	2,223,881			$	2,272,368

PRIVATE BANCORP OF AMERICA, INC. (Unaudited)
		Rollforward of Allowance for Credit Losses
		(Dollars in thousands)
		For the three months ended
		Sep 30, 2026				Jun 30, 2026				Mar 31, 2026				Dec 31, 2025				Sep 30, 2025
Allowance for loan losses:
Beginning balance		$	30,462			$	30,236			$	29,323			$	28,785			$	28,178
Provision for loan losses			361				(73	)			2,026				2,898				1,666
Net (charge-offs) recoveries			899				299				(1,113	)			(2,360	)			(1,059	)
Ending balance			31,722				30,462				30,236				29,323				28,785
Reserve for unfunded commitments			1,446				546				677				684				1,024
Total allowance for credit losses		$	33,168			$	31,008			$	30,913			$	30,007			$	29,809

		Asset Quality
		(Dollars in thousands)
		Sep 30, 2026				Jun 30, 2026				Mar 31, 2026				Dec 31, 2025				Sep 30, 2025
Total loans held-for-investment		$	2,186,690			$	2,132,724			$	2,140,964			$	2,126,147			$	2,081,611
Allowance for loan losses		$	(31,722	)		$	(30,462	)		$	(30,236	)		$	(29,323	)		$	(28,785	)
30-89 day past due loans, excluding nonaccrual		$	16,463			$	880			$	20,741			$	5,945			$	7,354
90+ day past due loans, excluding nonaccrual		$	-			$	-			$	-			$	-			$	-
Nonaccrual loans		$	28,770			$	26,893			$	34,584			$	42,227			$	37,663
Other real estate owned (OREO)		$	14,552			$	13,637			$	8,568			$	8,568			$	8,568
NPAs / Total assets			1.58	%			1.50	%			1.60	%			2.00	%			1.79	%
NPLs / Total loans held-for-investment			1.32	%			1.26	%			1.62	%			1.99	%			1.81	%
Net quarterly charge-offs (recoveries)		$	(899	)		$	(299	)		$	1,113			$	2,360			$	1,059
Net charge-offs (recoveries) /avg loans (annualized)			(0.17	)%			(0.06	)%			0.21	%			0.45	%			0.20	%
Allowance for loan losses to loans HFI			1.45	%			1.43	%			1.41	%			1.38	%			1.38	%
Allowance for loan losses to nonaccrual loans			110.26	%			113.27	%			87.43	%			69.44	%			76.43	%

PRIVATE BANCORP OF AMERICA, INC.
(Unaudited)

The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: efficiency ratio, pretax pre-provision net revenue, average tangible common equity, tangible book value per share and return on average tangible common equity. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute for the GAAP measures.

		GAAP to Non-GAAP Reconciliation
		(Dollars in thousands)
		For the three months ended
		Sep 30, 2026				Jun 30, 2026				Mar 31, 2026				Dec 31, 2025				Sep 30, 2025
Efficiency Ratio
Noninterest expense		$	18,377			$	16,863			$	15,680			$	15,733			$	15,905
Net interest income			34,125				33,545				32,609				31,053				29,332
Noninterest income			1,435				1,001				1,935				1,413				2,172
Total net interest income and noninterest income			35,560				34,546				34,544				32,466				31,504
Efficiency ratio (non-GAAP)			51.68	%			48.81	%			45.39	%			48.46	%			50.49	%
Pretax pre-provision net revenue
Net interest income		$	34,125			$	33,545			$	32,609			$	31,053			$	29,332
Noninterest income			1,435				1,001				1,935				1,413				2,172
Total net interest income and noninterest income			35,560				34,546				34,544				32,466				31,504
Less: Noninterest expense			18,377				16,863				15,680				15,733				15,905
Pretax pre-provision net revenue (non-GAAP)		$	17,183			$	17,683			$	18,864			$	16,733			$	15,599
Return on Average Assets, Average Equity, and Average Tangible Common Equity
Net income		$	11,409			$	13,118			$	12,027			$	9,954			$	9,701
Average assets			2,739,722				2,643,120				2,593,472				2,589,506				2,550,564
Average shareholders' equity			291,535				280,149				271,873				261,344				253,829
Less: Average intangible assets			1,674				1,819				1,910				1,913				2,025
Average tangible common equity (non-GAAP)			289,861				278,330				269,963				259,431				251,804
Return on average assets			1.65	%			1.99	%			1.88	%			1.53	%			1.51	%
Return on average equity			15.53	%			18.78	%			17.94	%			15.11	%			15.16	%
Return on average tangible common equity (non-GAAP)			15.62	%			18.90	%			18.07	%			15.22	%			15.28	%
Tangible book value per share
Total equity			291,349				285,516				272,732				263,964				257,954
Less: Total intangible assets			1,632				1,717				1,957				1,913				2,004
Total tangible equity			289,717				283,799				270,775				262,051				255,950
Shares outstanding			5,729,832				5,725,696				5,715,049				5,728,187				5,803,016
Tangible book value per share (non-GAAP)		$	50.56			$	49.57			$	47.38			$	45.75			$	44.11

PRIVATE BANCORP OF AMERICA, INC.
(Unaudited)

The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: efficiency ratio, pretax pre-provision net revenue, average tangible common equity and return on average tangible common equity. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute for the GAAP measures.

		GAAP to Non-GAAP Reconciliation
		(Dollars in thousands)
		Year to Date
		Sep 30, 2026				Sep 30, 2025
Efficiency Ratio
Noninterest expense		$	50,920			$	45,649
Net interest income			100,279				87,177
Noninterest income			4,371				5,515
Total net interest income and noninterest income			104,650				92,692
Efficiency ratio (non-GAAP)			48.66	%			49.25	%
Pretax pre-provision net revenue
Net interest income		$	100,279			$	87,177
Noninterest income			4,371				5,515
Total net interest income and noninterest income			104,650				92,692
Less: Noninterest expense			50,920				45,649
Pretax pre-provision net revenue (non-GAAP)		$	53,730			$	47,043
Return on Average Assets, Average Equity, and Average Tangible Common Equity
Net income		$	36,554			$	30,712
Average assets			2,659,307				2,502,142
Average shareholders' equity			281,258				242,349
Less: Average intangible assets			1,800				2,025
Average tangible common equity (non-GAAP)			279,458				240,324
Return on average assets			1.84	%			1.64	%
Return on average equity			17.38	%			16.94	%
Return on average tangible common equity (non-GAAP)			17.49	%			17.09	%

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Private Bancorp of America's third-quarter 2026 earnings?

Private Bancorp of America reported $11.4 million in net income, or $1.97 per diluted share. That compares with $13.1 million, or $2.27 per diluted share, in the prior quarter and $9.7 million, or $1.65 per diluted share, in third-quarter 2025.

How much did Private Bancorp of America's criticized loans increase?

Criticized loans reached $71.9 million, or 3.29% of total loans, at September 30, 2026. They were $58.0 million, or 2.72%, at June 30, 2026, and $70.5 million, or 3.39%, at September 30, 2025.

What drove Private Bancorp of America's third-quarter 2026 expense increase?

The sequential expense increase primarily reflected $0.6 million of impairment expense on other real estate owned, a $0.4 million increase in compensation and benefits, and higher NASDAQ uplisting costs. Uplisting expenses totaled approximately $0.9 million during the quarter and approximately $1.4 million year to date.

How did Private Bancorp of America's new credit-loss model affect third-quarter 2026 reserves?

The third-quarter provision included approximately $0.8 million associated with the model transition, primarily reflecting a higher reserve for unfunded commitments. The new expected-credit-loss model took effect July 1, 2026. At September 30, the loan-loss allowance was $31.7 million, or 1.45% of loans held for investment, versus $30.5 million, or 1.43%, at June 30.

What liquidity sources did Private Bancorp of America have at September 30, 2026?

Available liquidity consisted of $502 million in cash and investment securities and $1.9 billion of unused borrowing capacity. Total available liquidity was $2.4 billion, representing 191.8% of uninsured deposits after excluding collateralized and fiduciary deposits.