Private Bancorp of America Q3 net income: $11.4M
Net income was lower than in the prior quarter, while criticized loans and nonperforming assets were higher than at June 30, 2026.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Private Bancorp of America, Inc. (PBAM) reported third-quarter 2026 net income of $11.4 million, or $1.97 per diluted share, versus $13.1 million and $2.27 in the prior quarter and $9.7 million and $1.65 a year earlier. Net interest income was $34.1 million, up 16.3% from third-quarter 2025; net interest margin was 5.05%, compared with 5.18% in the prior quarter and 4.65% a year earlier. Core deposits were $2.36 billion at September 30, 2026, up $31.8 million from June 30, 2026, while loans held for investment were $2.19 billion, up $54.0 million over the same period.
At September 30, 2026, criticized loans totaled $71.9 million, or 3.29% of total loans, compared with $58.0 million, or 2.72%, at June 30, 2026. Nonperforming assets were $43.3 million, or 1.58% of assets, compared with $40.5 million, or 1.50%. The $1.3 million quarterly provision included approximately $0.8 million related to the new CECL model, implemented July 1, 2026, for loans held-for-investment and unfunded commitments. The available-for-sale securities portfolio had a $17.7 million pretax net unrealized loss at September 30, 2026, versus $8.9 million at June 30, 2026. PBAM began trading on the Nasdaq Global Select Market on July 30, 2026; the quarter included approximately $0.9 million in uplisting expenses.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNet income rose year over year to $11.4 million from $9.7 million.
- Moderate pointNet interest income increased 16.3% year over year to $34.1 million.
Negative
- Moderate pointQuarterly net income declined to $11.4 million from $13.1 million in the prior quarter.
Filing Explained
The buyback remained unused at September 30, 2026, and reported liquidity included $1.9 billion of borrowing capacity, not cash on hand.
This 8-K furnishes third-quarter results and an investor presentation, and updates the buyback status: the board-authorized program permits up to
At
8-K Event Classification
Key Figures
Key Terms
net interest margin financial
current expected credit loss financial
criticized loans financial
available-for-sale financial
loans held-for-investment financial
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did PBAM earn in the third quarter of 2026?
What changed in PBAM's CECL model?
How much stock can PBAM repurchase under its program?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition.
On October 16, 2026, Private Bancorp of America, Inc. (the “Company”) issued a press release announcing its unaudited financial results for the three and nine months ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information furnished under Item 2.02 and Item 9.01 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liabilities under that Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of the Company under the Securities Act of 1933, as amended (the “Securities Act”), except as shall be set forth by specific reference in such filing.
Item 7.01 Regulation FD Disclosure.
The Company hereby furnishes an investor presentation (the “Presentation”), which will be used by management for presentations to investors, analysts and other interested parties. A copy of the Presentation is attached hereto as Exhibit 99.2.
The information furnished under Items 7.01 and 9.01 of this Current Report on Form 8-K, including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, as amended, or otherwise subject to liabilities under that Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of the Company under the Securities Act, as amended, except as shall be set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number |
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Description |
99.1 |
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Press Release of Private Bancorp of America, Inc. dated October 16, 2026 |
99.2 |
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Private Bancorp of America, Inc. Investor Presentation, Third Quarter 2026 |
104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Private Bancorp of America, Inc. |
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Date: |
October 16, 2026 |
By: |
/s/ Richard L. Sowers |
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Richard L. Sowers |
Exhibit 99.1
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FOR IMMEDIATE RELEASE
Private Bancorp of America, Inc. Announces Strong Net Income for Third Quarter 2026
Third Quarter 2026 Highlights
(1) A non-GAAP financial measure. A reconciliation of non-GAAP financial measures to GAAP financial measures can be found on page 15.
1
La Jolla, Calif. – October 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
2
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.
3
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:
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September 30, 2026 (2) |
June 30, 2026 |
CalPrivate Bank |
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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.
4
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.
5
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.
6
PRIVATE BANCORP OF AMERICA, INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
(Dollars in thousands)
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Sep 30, 2026 |
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Jun 30, 2026 |
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Sep 30, 2025 |
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Assets |
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Cash and due from banks |
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$ |
30,346 |
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$ |
32,211 |
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$ |
29,605 |
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Interest-bearing deposits in other financial institutions |
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16,825 |
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|
22,275 |
|
|
|
16,314 |
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Interest-bearing deposits at Federal Reserve Bank |
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|
204,063 |
|
|
|
245,869 |
|
|
|
215,448 |
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Total cash and due from banks |
|
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251,234 |
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300,355 |
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261,367 |
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Interest-bearing time deposits with other institutions |
|
|
4,356 |
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4,344 |
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4,295 |
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Investment debt securities available for sale |
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267,701 |
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237,074 |
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199,852 |
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Loans held for sale |
|
|
- |
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- |
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|
|
314 |
|
Loans, net of deferred fees and costs and unaccreted discounts |
|
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2,186,690 |
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|
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2,132,724 |
|
|
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2,081,611 |
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Allowance for loan losses |
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|
(31,722 |
) |
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(30,462 |
) |
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(28,785 |
) |
Loans held-for-investment, net of allowance |
|
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2,154,968 |
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|
2,102,262 |
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2,052,826 |
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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 |
|
|
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1,717 |
|
|
|
2,004 |
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Accrued interest receivable |
|
|
9,417 |
|
|
|
8,248 |
|
|
|
8,031 |
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Other assets |
|
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38,145 |
|
|
|
33,793 |
|
|
|
28,077 |
|
Total assets |
|
$ |
2,748,220 |
|
|
$ |
2,708,302 |
|
|
$ |
2,576,481 |
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|
|
|
|
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Liabilities and Shareholders' Equity |
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Liabilities |
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|
|
|
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Noninterest bearing |
|
$ |
669,868 |
|
|
$ |
663,200 |
|
|
$ |
654,072 |
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Interest bearing |
|
|
1,743,125 |
|
|
|
1,718,037 |
|
|
|
1,618,296 |
|
Total deposits |
|
|
2,412,993 |
|
|
|
2,381,237 |
|
|
|
2,272,368 |
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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 |
|
7
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 |
|
8
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 |
|
|
Interest |
|
|
Average |
|
|
Average |
|
|
Interest |
|
|
Average |
|
|
Average |
|
|
Interest |
|
|
Average |
|
|||||||||
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 |
% |
||||||
9
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 |
|
|
Interest |
|
|
Average |
|
|
Average |
|
|
Interest |
|
|
Average |
|
||||||
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 |
% |
||||
10
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.
11
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.
12
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 |
|
13
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 |
% |
14
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 |
|
15
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 |
% |
16
October 16, 2026 (NASDAQ: PBAM) Q3 2026 Investor Update Holding Company for Exhibit 99.2
Disclosures FORWARD LOOKING STATEMENTS This investor presentation contains expressions of expectations, both implied and explicit, that are “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of Private Bancorp of America, Inc. (the “Company”). There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. The Company cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. These risks and uncertainties include, but are not limited to, the following: the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; the effects of, and changes in, trade, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; interest rate, liquidity, economic, market, credit, operational, and inflation risks associated with our business, including the speed and predictability of changes in these risks; our ability to attract and retain deposits and to access other sources of liquidity, particularly in a higher interest rate environment, and the quality and composition of our deposits; business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic markets, including the tight labor market, ineffective management of the U.S. federal budget or debt, or turbulence or uncertainty in domestic or foreign financial markets; the effects of concentrations in our loan portfolio, including Small Business Administration loans, commercial real estate and the risks of geographic and industry concentrations; possible credit-related impairments of securities held by us; changes in the level of our nonperforming assets and charge-offs; the timely development of competitive new products and services and the acceptance of these products and services by new and existing customers; the ability to attract and retain essential personnel or changes in our essential personnel; the impact of changes in financial services policies, laws and regulations, including those concerning taxes, banking, securities and insurance, and the application thereof by regulatory bodies; compliance risks, including the costs of monitoring, testing, and maintaining compliance with complex laws and regulations; the effectiveness of our risk management framework and quantitative models; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time to time by bank regulatory agencies, the U.S. Securities and Exchange Commission (the “SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, or other accounting standards setters; the impact of governmental efforts to restructure or modify the U.S. financial regulatory system; the impact of changes in the Federal Deposit Insurance Corporation (“FDIC”) insurance assessment rate or the rules and regulations related to the calculation of the FDIC insurance assessment amount; changes in consumer spending, borrowing, and savings habits; changes in the financial performance and/or condition of our borrowers; our ability to effectively compete with banks, nonbank financial institutions and financial technology companies and the effects of competition in the financial services industry on our business; the effects of disruptions or instability in the financial system, including as a result of the failure of a financial institution or other participants in it, or geopolitical instability, including war, terrorist attacks, pandemics and man-made and natural disasters; cybersecurity threats and the cost of defending against them; uncertainty around, and disruption from, new and emerging technologies, including the adoption and utilization of artificial intelligence (“AI”) and generative AI; climate change, including the enhanced regulatory, compliance, credit, and reputational risks and costs; unanticipated regulatory, legal, or judicial proceedings; the one-time and incremental costs of operating as a public company; our ability to meet our obligations as a public company, including our obligation under Section 404 of the Sarbanes-Oxley Act of 2002; and our ability to manage the risks involved in the foregoing. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company’s Registration Statement on Form 10 filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov). The Company undertakes no obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made. NON-GAAP FINANCIAL MEASURES This presentation contains certain non-GAAP financial measures in addition to results presented in accordance with GAAP. 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, permit investors to effectively analyze financial trends of our business activities and 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 on pages 27-31 of this presentation.
Corporate Overview Top 5% banks in the U.S. with assets $2B to $10B Ranked Bauer 5-Star Rating #39 2025 OTCQX Best 50 Ranked #1 Community Bank SBA 504 Lender in the U.S. Ranked #10 Best Bank in the U.S. by Bank Director's Ranking Banking® ▌ Recent Accolades ▌Coastal Southern California Footprint Founded in 2006 and headquartered in La Jolla, California, Private Bancorp of America, Inc. owns and operates CalPrivate Bank, a dynamic relationship-based private and business bank With 7 branch locations in Los Angeles, Orange, Santa Barbara and San Diego counties, we provide a Distinctively Different tm approach to serving our Clients, which include high net worth individuals, real estate professionals and small to medium-sized businesses Our branch-light, high-touch relationship-based model places Clients at the center of focus resulting in superior outcomes Net Promoter Score (NPS) of 80+ (World Class) for 22 consecutive quarters reflects Service focus Highly aligned with Shareholder interests as Directors & Executive Officers1 own ~25% of total shares outstanding2 ▌ The CalPrivate Bank Franchise 2024 Bank in the U.S. with assets $2B to $10B #14 Ranked 2025 1 Includes both the HoldCo and Bank Board directors and Company NEOs 2 Represents beneficial ownership as presented in PBAM Form 10-12B/A filing on July 17, 2026
Focus on Consistent Long-Term Shareholder Value Creation 35.1% Adjusted EPS 6 Yr CAGR 18.0% 6 Yr CAGR $ Annual EPS* $ Tangible Book Value per Share* $ Total Assets (in Billions) $ Total Net Loans (in Billions) $ Total Deposits (in Billions) 17.4% 6 Yr CAGR 15.7% 6 Yr CAGR 15.5% 6 Yr CAGR $ Pre-Provision Net Revenue per Share* Culture of excellence in all aspects of serving Clients Growth oriented Sales and Service Teams Adding shareholder value through disciplined capital deployment and strong tangible book value growth ▌ Growth Oriented Strategy 31.9% PPNR per Share 6 Yr CAGR *Please refer to the non-GAAP reconciliation on pages 27-31
Source: S&P Global Market Intelligence Note: Total annual returns as of 9/30/2026. PBAM total year-to-date return as of 9/30/2026 1 Peer Group Includes: AMBZ, AVBH, BCAL, BCML, BMRC, BPRN, BWFG, EFSI, ESQ, FFBB, FNRN, FRBA, FSBC, FVCB, JMSB, MNSB, MRBK, OBT, OPBK, PCB, PLBC, RBB, UNTY, USCB, WCCB 3 Yr Stock Total Return (%) 7 Yr Stock Total Return (%) 5 Yr Stock Total Return (%) Focus on Shareholder Return Uplisting of PBAM on NASDAQ on July 30, 2026 2026 year-to-date total return of 47.8% PBAM stock has outperformed its peer group over the last 3, 5, and 7 years Long term outperformance relative to the S&P 500 and KRX benchmarks demonstrates focus on sustained value creation for PBAM shareholders 1 1 PBAM Stock Total Return (vs KBW Regional Bank Index, S&P 500, and Select Peers)
KPI Peer Comparison 1 Peer Group Includes: AMBZ, AVBH, BCAL, BCML, BMRC, BPRN, BWFG, EFSI, ESQ, FFBB, FNRN, FRBA, FSBC, FVCB, JMSB, MNSB, MRBK, OBT, OPBK, PCB, PLBC, RBB, UNTY, USCB, WCCB (Source: S&P Global) Return on Average Assets %* Return on Average Tangible Common Equity %* Net Interest Margin % Tangible Book Value per Share $* *Please refer to the non-GAAP reconciliation on pages 27-31
Loans Held For Investment (HFI) increased $54.0 million, or 2.5%, from 2Q26 Average HFI Loan Yields of 7.21% Core deposits increased $31.8 million, or 1.4%, from 2Q26 and increased $171.5 million, or 7.8%, since 3Q25 Non-interest-bearing deposits represent 27.8% of total deposits (28.3% of core deposits) Total Cost of Deposits of 1.66%, up from 1.63% in 2Q26 Uninsured deposits, net of collateralized and fiduciary deposit accounts, represent 52.8% of total deposits $2.4 billion total available liquidity, representing 191.8% of uninsured deposits, net of collateralized and fiduciary accounts Non-Performing Assets increased $2.8 million, or 6.9%. NPA to Total Assets Ratio of 1.58%, up from 1.50% at prior quarter Allowance for loan losses of $31.7 million, or 1.45% of total loans HFI Total Classified Loans of $67.7 million, of which $57.5 million (85%) is secured by real estate with a weighted average LTV of 62%, and 12 commercial and industrial loans totaling $10.2 million Q3 2026 Results and Highlights ▌ Asset Quality Highlights ▌ Loan & Deposit Highlights $11.4 million in Net Income $1.97 Earnings Per Diluted Share $2.75 billion in Assets $2.19 billion in Loans HFI $2.41 billion in Deposits $50.56 Tangible Book Value per Share* (up $0.99 from 6/30/2026) Began trading on the NASDAQ Global Select Market under the symbol PBAM on July 30, 2026 ▌ Financial Highlights 51.68% Efficiency Ratio* 5.05% Net Interest Margin 1.65% Return on Average Assets 15.62% Return on Average Tangible Common Equity* 15.20% CalPrivate Bank Total Risk Based Capital Ratio** ** Preliminary ▌ Operational & Performance Highlights *Please refer to the non-GAAP reconciliation on pages 27-31
Credit Quality & Portfolio Management Loan pricing focused on capturing preferred client and credit profile Risk-based approach to loan reviews and Portfolio Management Early and active client engagement to minimize potential of future problem credits Continued resolution and cleanup of existing Criticized & Classified Assets and NPAs Refinement of Credit Department roles & responsibilities, service and operating model Loan & Deposit Growth Emphasis on loan retention to minimize impact of payoffs and maturities Organic growth in existing markets including newest Santa Barbara market Top-tier talent acquisition for existing and new markets Emphasis on High Net Worth, entertainment, legal industry, property management & family office Enhance Shareholder Value Utilize experience of new senior hires to propel business scalability Continued emphasis on Project Governance and Prioritization to identify and execute on high value improvement opportunities that lead to lower cost operations, increased service to clients, and value-added solutions in the marketplace Utilize Data Analytics & AI as a means for process improvement and business intelligence Continued evolution of product and strategy roadmaps to address client needs Build Business Scalability Strategic Focus – 2026 The Company uplisted and began trading on NASDAQ on July 30, 2026, resulting in higher trading volume, improved liquidity, increased investor/market awareness, and strategic flexibility Reinforce business practices and client acquisition strategies that have led to top-quartile return on assets and return on equity over the last 5 years Share buybacks and potential dividends as capital deployment alternatives
Net Interest Income & Net Interest Margin Managing NIM in a Volatile Environment Proven Relationship Banking model allows for keen understanding of Clients and providing them with value ▌ NIM Protection Strategy Other NIM Performance Contributors Strong Yields on Cash and Due From Banks Alternative Funding Sources and Borrowings used to fund transactional, higher yielding assets when needed Targeted securities growth to increase overall portfolio yield Strong Loan Yields Desirable mix of Fixed, Variable and Hybrid loan types Fixed Rate Loan Terms generally at 5 years or less Relationship model allows for spread pricing discipline on new originations Use of Prepayment Penalties, Floors & other Yield Protecting Loan Structures Deposit Retention & Growth Robust product offering, including IntraFi ICS & CDARS programs Exception based deposit pricing; adjustable and proactively manageable as Fed makes changes to treasury rates Expansion of newer legal verticals with new hires Earning Asset Yields & Cost of Funds Dollars in Millions * FOOTNOTES below reflect non-GAAP measures. Refer to pages 27-29 for non-GAAP reconciliation 3Q25- $1.3M nonaccrual interest reversed; adjusted earning asset yield of 6.74%, and NIM of 4.86% 4Q25- $304K nonaccrual interest reversed; adjusted earning asset yield of 6.57%, and NIM of 4.89% 1Q26- $1.3M net nonaccrual interest recognized, prepay penalties, and FHLB stock special dividend; adjusted earning asset yield of 6.57%, and NIM of 5.00% 2Q26- $905K net nonaccrual interest recognized; adjusted earning asset yield of 6.56% and NIM of 5.04% 3Q26- $353K net nonaccrual interest reversed, prepay penalties, and FHLB stock special dividend; adjusted earning asset yield of 6.55%, and NIM of 5.00%
3Q26 Deposit Mix Strong Deposit Franchise ▌ Relationship banking approach produces core deposit growth, lower cost of funds and reduced dependency on brokered deposits – all of which drive higher franchise value Growing Customer Deposits Deposit Cost Trends Total deposits increased $31.8 million during 3Q26 (+1.3%), comprised entirely of core deposits as brokered deposits were unchanged Total deposits increased $140.6 million year-over-year (+6.2%), comprised of $171.5 million increase in core deposits and $30.9 million decline in brokered deposits Weighted average spot deposit rate of 1.68%, or 1.63% excluding brokered deposits, at 9/30/26 Excluding brokered deposits, cumulative interest-bearing deposit beta was 68% from 2Q24 to 2Q26 (most recent Fed rate cutting cycle) ▌ Deposit Commentary Non-Interest Bearing Interest Bearing DDA Savings & MMDA Time Deposits Brokered Avg Dep Cost Avg Dep Cost Ex. Bkrd Ending Deposit Cost Excl. Bkrd Dollars in millions
▌ Focus on maintaining strong liquidity position and continued improvement in the deposit mix Strong Liquidity & Funding Position Cash & Securities Total Available Liquidity Wholesale Funding Dollars in Millions 3Q26 liquid assets decreased by $18 million from 2Q26 $2.4 billion total available liquidity at 9/30/26: $502 million on-balance sheet and $1.9 billion with external sources. Total liquidity represents 192% of uninsured deposits, net of collateralized and fiduciary accounts 31% year-over-year decrease in Wholesale Funding AFS Securities increased $30.6 million or 12.9% during 3Q26 ▌ Commentary Dollars in Millions
Loan Originations by Quarter 1Q26 2Q26 3Q26 CRE 6.28% 6.63% 6.85% C&I 7.30% 6.83% 7.10% SBA 504 8.44% 8.19% 8.78% SBA 7A 9.18% 9.36% 8.87% Key Origination Rates Current lending strategy targets the use of Prepayment Penalties, Floors and other yield protection structures with an overall emphasis on Margin and Profitability with prudent Balance Sheet growth Industry wide pursuit of loan growth coupled with lower customer demand has led to many banks compromising on loan margins ▌ Loan Origination Commentary Loan Originations 5 Quarter Origination Mix (Contract Amount, $ in millions) Weighted Avg Orig Rate C&I CRE SBA 504 SBA 7A Construction Consumer +Other ▌Emphasis on loan retention, pricing discipline and credit quality
Loan Portfolio Rollforward Loan Rollforward Loans HFI balances in roll forward represent outstanding balances and are before allowance for credit losses Loans HFI increased $54 million, or 2.5%, during 3Q26 due to strong loan originations and reduced prepayments/maturities In addition to new originations, we are also focused on client and loan retention to reduce the impact of payoffs and maturities ▌ Loan Rollforward Commentary
Loans Held for Investment Portfolio ▌ Managing the Loan Portfolio through prudent risk selection and disciplined pricing; with a focus on maintaining and growing client relationships and achieving appropriate risk adjusted yields HFI Loan Balances & Yields 3Q26 Loan Mix Dollars in Millions Investor Owned C&I SBA Secured by RE Owner Occupied SFR Secured Multifamily Land & Construction SBA Non-RE Secured Consumer Loan Yield Loan portfolio well diversified across industry, collateral, and loan types 97% of loans are Pass rated and the bank has historically low level of net charge offs Quality of underlying obligor financial strength and collateral is strong in relation to loan yields leading to strong and stable NIM, ROAA, and ROE ▌ Loan Portfolio Commentary * FOOTNOTES below reflect non-GAAP measures. Refer to pages 27-29 for non-GAAP reconciliation 3Q25- $1.3M nonaccrual interest reversed; adjusted loan yield of 7.23% 4Q25- $304K nonaccrual interest reversed; adjusted loan yield of 7.10% 1Q26- $958K net nonaccrual interest and prepay penalties recognized; adjusted loan yield of 7.06% 2Q26- $905K net nonaccrual interest recognized; adjusted loan yield of 7.12% 3Q26- $212K net nonaccrual interest reversed and prepay penalties recognized; adjusted loan yield of 7.17%
Real Estate Secured Loan Portfolio Breakdown Loan Type WAVG LTV WAVG Orig GDSCR* % Owner Occupied Office 51.5% 2.68 55% Hotel & Motel 53.1% 3.80 N/A Retail 55.9% 2.14 52% Multifamily 57.9% 3.50 N/A SFR Secured 51.9% 4.52 36% Total 52.1% 3.36 42% 3Q26 Mix of Loans Secured by Real Estate Secured by Real Estate & LTV CRE loan portfolio composition reflects specific efforts to diversify among property types and low to average leverage The bank lends primarily in the metro areas of coastal Southern California. LA represents 38%, San Diego represents 24%, and Orange County represents 8% of total loans secured by real estate ▌ Loan Diversification Real Estate Secured - Specific Portfolio Details Dollars in Millions *Global Debt Service Coverage Ratio
Operating accounts and associated lines are a focus to drive core deposits and cash management fees We target 55%-60% utilization and will use the renewal process to ensure prudent credit exposure and additional income on unused lines ▌ Overview Total Revolving Lines of Credit $ in millions Line Utilization Revolving Line of Credit $ Total Revolving Lines of Credit Use of floors on revolving lines to mitigate NIM compression Cautiously optimistic on increased future utilizations given economic headwinds (e.g., market interest rates, inflation, unemployment, etc.) ▌ Utilization & Rates
▌ SBA Lending is an essential part of the CalPrivate Bank business model, offering lower leverage, higher yielding 504 and 7(a) guaranteed lending products to small businesses in our local communities SBA Lending Overview SBA Originations SBA Balances Award winning SBA team serving our communities SBA loan programs are a great funding source for Small Business owners and provide a solid risk adjusted return for the bank including the opportunity for Gain on Sale income SBA loan programs as a whole spur economic development and provide small businesses that employ nearly half of the U.S. population with needed funding, while also maintaining historically low default rates Purposeful management of SBA Loan Production and overall SBA Loan Portfolio as a part of the broader CalPrivate Bank strategy ▌ SBA Overview Ranked #1 Community Bank SBA 504 Lender in the U.S. Contract Amount, Dollars in Millions Dollars in Millions
▌ Optimizing SBA loan sales versus HFI based on secondary market conditions and loan yields. SBA Loan Sale Strategies SBA 7(a) Loan Sales SBA 7(a) Income & Premium Typically, the guaranteed portion of 7(a) loans is 75% and at times can extend up to 90% of the loan for clients that export. The guaranteed portion can be sold on the secondary market for Gain on Sale income The unsold portion of the 7(a) loans and the 504 first trust deeds remain on the balance sheet post sale and debenture funding Market conditions and buyer appetite influence decision and timing of 7(a) loan sales Servicing the 7(a) loan is typically 1% of the full loan amount annually, including amounts sold on the secondary market Approximately 23% of the on-balance sheet SBA 7(a) balances are guaranteed 1Q26 SBA gain on sale elevated due to the inability to sell loans during 4Q25 Government shutdown. 2Q26 SBA gain on sale reduced by $162 thousand premium reimbursement to an investor related to early payoff of previously sold loan ▌ SBA Loan Sale Overview Dollars in Millions Dollars in Millions
Interest Rate Risk Management Loans Repricing & Maturities Interest Rate Sensitivity Investments AFS Portfolio 65% adjustable loans at 9/30/26; 41% are hybrid & 24% variable 47% of loans reprice or mature < 1 year. 3% of loans reprice or mature >5 years NII is relatively neutral to market rate changes. Our discipline of maintaining floors on originations & renewals mitigates interest rate risk in declining rate environments Loan Portfolio average spot note rate increased to 6.98% at 9/30/26 from 6.92% at 6/30/26 Mark-to-market pre-tax loss on investments AFS portfolio increased from $8.9 million (3.8% of portfolio fair value) at 6/30/26 to $17.7M (6.6% of FV) at 9/30/26 due to significant increase in market rates ▌ Commentary
▌ Credit risk and loan portfolio management continues to proactively identify and address potential problem assets Credit Risk Management Classified Loans Special Mention & Classified as % of Gross Loans Total criticized loans increased by $13.9 million during 3Q26 due primarily to bankruptcy for two related real estate investor loans totaling $8.8 million and delinquencies for two SBA 504 loans totaling $3.7 million Of the 54 total classified loans, 28 are current on payments 42 of 54 classified loans are secured by real estate with a weighted average CLTV of 62%, which includes 8 SBA guaranteed loans with an average CLTV of 59% and 12 SBA 504 loans with an average CLTV of 56% 12 classified loans are C&I, which includes 4 SBA guaranteed loans ▌ Commentary Unsecured = any loans that are not secured by a real estate property or cash per regulatory legal lending definition; classified loans with collateral taken as an abundance of caution have been re-categorized as secured Dollars in Millions Dollars in Millions Special Mention Loans
Non-Performing Assets (NPAs) Credit Risk Management Metrics Non-Performing Loans as % of Total Loans Non-Performing Assets as % of Total Assets Quarterly Net Charge Offs in bps of Loans HFI Allowance for Loan Losses as % of Loans HFI Nonperforming assets increased by $2.8 million, or 6.9%, during 3Q26 due to two loans totaling $1.9 million placed on non-accrual status and a $0.9 million increase to OREO 14 of 20 nonperforming loans totaling $23.3 million are collateral dependent with a weighted average CLTV of 67% 4 nonperforming loans with minimal or no collateral (unsecured) totaling $2.8 million have $1.3 million in specific reserves 2 nonperforming loans totaling $2.7 million are guaranteed by the SBA with specific reserves of $0.5 million for the unguaranteed amounts ▌ Credit Commentary Dollars in Millions
Total Allowance for Credit Losses Current Expected Credit Loss (“CECL”) ($ in millions) ACL Rollforward New current expected credit loss (CECL) model was implemented effective July 1, 2026 The increase in the allowance for loan losses and the coverage ratio (allowance for loan losses as a % of loans HFI) in 3Q26 was primarily driven by net loan growth at higher reserve rates, risk-rating downgrades and higher qualitative reserves on construction loans The increase in the reserve for unfunded commitments in 3Q26 was primarily the result of the transition to new CECL model, which increased the reserve by approximately $0.8 million ▌ Quarterly ACL Summary
Non-Interest Expense (NIE) ▌ Ongoing focus on improving operating leverage and scalability through technology and process improvement initiatives while adding talent and improving capabilities and offerings to our Clients Expenses and Operational Efficiency Compensation & Benefits Other Expenses Data Processing Occupancy & Equipment Professional Svcs Efficiency Measures Professional Services for the quarter includes $0.6 million related to the uplisting of the Company’s common stock on NASDAQ Other Expense for the quarter includes $0.3 million related to the NASDAQ uplisting and $0.6 million of OREO costs Continued investments being made in people, process and technology to scale the business ▌ NIE Commentary Dollars in Thousands *Please refer to the non-GAAP reconciliation on pages 27-31 *
▌ Continued strong capital accretion to support balance sheet growth & strategic options to enhance shareholder value Strong Capital Position * Select CalPrivate Bank Capital Ratios Tangible Book Value per Share* Manage capital to achieve strong levels of Return on Equity while maintaining capital buffer for growth Proven ability to add shareholder value by consistently increasing tangible book value through strong earnings Investing in areas with strong returns on equity, including SBA 7(a) lending, fee income initiatives and business lines of credit Tangible Common Equity Ratio* of 10.55% at 9/30/26 During 4Q25, repurchased 86,594 shares at an average price of $57.69. During 1Q26, repurchased 44,214 shares at an average price of $67.80 During 2Q26, the Board authorized a stock repurchase program whereby the Company may repurchase an aggregate amount of up to $10 million in stock. To date, no shares have been repurchased under the program ▌ Capital Strategy *Please refer to the non-GAAP reconciliation on pages 27-31
CalPrivate Culture and Community Outreach ONE Team: A cohesive, talented, accountable and empowered group of service-oriented professionals who show up every day dedicated to providing top-tier service to our Clients and Team Members. ONE Goal: To be the best company we can be. ONE Vision: To excel as a top-performing, growth-oriented community bank renowned for exceptional service, delivered by an outstanding Team that provides innovative, personalized solutions to our Clients in a secure and reliable environment. ONE Team. ONE Goal. ONE Vision. An important aspect of our company culture is community engagement CalPrivate Bank donates to non-profit organizations with both our time and money across a wide range of community groups from San Diego to Santa Barbara Employee contributions are matched A Community Advisory Board is present in each market, made up of top civic and business leaders to provide input to the Board and Management Our Board of Directors are active members of our communities, dedicating countless hours in service of others ▌ Community Support
Technology & Innovation Differentiation Technology Principles Investment in technology is a competitive necessity Enables improved performance by providing improved Client Experience, expansion of the Client base and increased productivity Helps address regulatory pressure related to managing operational risks Enables scalability for organic growth and M&A Technology & Innovation Board Committee Board level expertise in technology, audit and innovation Dedicated focus on digital transformation Provides oversight on roadmap, governance and budget Governance and framework for AI Strategy focused on efficiency, productivity and client experience opportunities Product Strategy Focus on products & services development to enhance Client Experience Current areas of focus include Payments, Fraud Prevention & Digitization Focus on continuous process & service improvement through use of technology tools Utilize AI solutions to expand product offerings, improve client servicing and overall support Information Technology Management Committee Enhancing focus on Cybersecurity and emerging security trends Multi-discipline and cross functional membership ensures enterprise adoption Developing Data Analytics & AI Program. Direct oversight of AI adoption Direct Tech Investments Utilize partnerships with BankTech Ventures, BankTech Consortium & JAM FINTOP for enhanced research & development in the Fintech ecosystem Board and Management commitment to finding partnerships through industry leaders that are focused on solving the challenges of community banking
Non-GAAP Reconciliation
Non-GAAP Reconciliation
Non-GAAP Reconciliation
Non-GAAP Reconciliation continued
Non-GAAP Reconciliation continued
President & Chief Executive Officer o. 424.303.4894 rsowers@calprivate.bank Rick Sowers Cory Stewart EVP & Chief Financial Officer o. 949.345.7625 cstewart@calprivate.bank Management Contacts
Holding Company for (NASDAQ: PBAM)