Private Bancorp of America, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance

• Net income for the third quarter of 2026 was $11.4 million, compared to $13.1 million in the prior quarter and $9.7 million in the third quarter of 2025.
• Diluted earnings per share (EPS) were $1.97 for the third quarter of 2026, compared to $2.27 in the prior quarter and $1.65 in the third quarter of 2025.
• Return on average assets (ROAA) was 1.65% for the third quarter of 2026.
• Return on average tangible common equity (ROATCE) was 15.62% for the third quarter of 2026.
• Net interest income totaled $34.1 million, an increase of 1.7% from the prior quarter and 16.3% from the third quarter of 2025.
• Net interest margin (NIM) was 5.05% for the third quarter of 2026, compared to 5.18% in the prior quarter and 4.65% in the third quarter of 2025.
• Provision for credit losses was an expense of $1.3 million for the third quarter of 2026, compared to a reversal of $0.2 million in the prior quarter and an expense of $1.8 million in the third quarter of 2025.
• 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 efficiency ratio 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.
• Provision for income tax expense was $4.5 million for the third quarter of 2026, with an effective tax rate of 28.3%.
• Total assets were $2.75 billion as of September 30, 2026.
• Tangible book value per share was $50.56 as of September 30, 2026, compared to $49.57 at June 30, 2026 and $44.11 at September 30, 2025.

Guidance and Future Outlook

• Management stated that loan production was strong and pipelines are strong going into the fourth quarter.
• The Company believes reserves are more than adequate despite an increase in criticized assets.
• The listing on NASDAQ creates additional strategic options and flexibility for external growth opportunities.
• The potential inclusion in the reconstitution of the Russell 2000 Index provides additional momentum.
• The Company plans to continue investing in people, processes, and technology to scale the business.

Business Segments and Product Lines

• Loans held-for-investment (HFI) totaled $2.19 billion as of September 30, 2026, an increase of 5.0% from September 30, 2025.
• Core deposits were $2.36 billion as of September 30, 2026, an increase of 7.8% from September 30, 2025.
• Investment securities available-for-sale (AFS) were $267.7 million as of September 30, 2026, an increase of 33.9% from September 30, 2025.
• Noninterest income was $1.4 million for the third quarter of 2026, driven by the sale of $6.1 million in U.S. Small Business Administration (SBA) loans with a 10.72% average trade premium.
• Total deposits were $2.41 billion as of September 30, 2026, with brokered deposits remaining unchanged at $49.3 million.
• The Company hired key personnel including a Chief Operating Officer, Chief Credit Officer, and General Counsel.

Market and Competitive Landscape

• The Company operates in a market with inflationary pressures and low unemployment contributing to upward pressure on wages.
• CalPrivate Bank is in the top tier of customer service survey ratings, scoring almost 3x higher than the median domestic bank.
• The Company is a Bauer Financial 5-star rated bank, an SBA Preferred Lender, and the Community Bank 504 Lender of the Year by the NADCO Community Impact Awards.
• The NASDAQ uplisting on July 30, 2026, enhances operational advantages in retaining and hiring exceptional talent.

Risks and Challenges

• Criticized loans increased to $71.9 million (3.29% of total loans) as of September 30, 2026, from $58.0 million (2.72%) at June 30, 2026.
• 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.
• Nonperforming assets were $43.3 million (1.58% of total assets) as of September 30, 2026, up from $40.5 million (1.50%) at June 30, 2026.
• Nonaccrual loans increased to $28.8 million as of September 30, 2026, from $26.9 million at June 30, 2026.
• The net unrealized loss on the AFS securities portfolio increased to $17.7 million (pre-tax) as of September 30, 2026, due to higher market interest rates.
• Noninterest expense increased due to $0.6 million of impairment expense related to other real estate owned (OREO).
• The Company implemented a new current expected credit loss (CECL) model effective July 1, 2026, which included a $0.8 million provision associated with the transition.

Management Commentary and Tone

• Rick Sowers, President and CEO, expressed pleasure with the third-quarter results, citing strong loan production and continued top-quartile net interest margin.
• Management indicated a focus on delivering superior service and solutions while building a scalable business.
• Selwyn Isakow, Chairman of the Board, thanked the management team for efforts in the transformative uplisting and noted that profitability continues to be strong.
• The tone regarding credit quality was confident, with management stating they are dedicating appropriate resources to improve credit metrics and believe reserves are adequate.

Other Key Points

• The Company's Registration Statement on Form 10 was declared effective by the SEC on July 29, 2026, and common stock began trading on the NASDAQ Global Select Market on July 30, 2026.
• Approximately $0.9 million of expenses associated with the NASDAQ Uplisting were included in the third quarter, with approximately $1.4 million year-to-date.
• In the third quarter of 2026, the Board authorized a stock repurchase program allowing the Company to repurchase up to $10.0 million of its common stock; no shares had been repurchased as of September 30, 2026.
• The Company celebrated 20 years of providing its "Distinctly Different®" service.
• Total available liquidity was $2.4 billion, or 191.8% of uninsured deposits, net of collateralized and fiduciary deposits, as of September 30, 2026.
• The Bank's capital ratios were in excess of the levels established for "well capitalized" institutions, with a Tier I risk-based capital ratio of 13.95% and a Total risk-based capital ratio of 15.20% as of September 30, 2026.