Second Quarter 2026 Highlights

• Net income for the second quarter of 2026 was $13.1 million, compared to $12.0 million in the prior quarter and $10.4 million in the second quarter of 2025.
• Net income for the second quarter of 2026 represents a return on average assets of 1.99% and a return on average tangible common equity⁽¹⁾ of 18.90%.
• Diluted earnings per share for the second quarter of 2026 was $2.27, compared to $2.07 in the prior quarter and $1.77 in the second quarter of 2025.
• Core deposits were $2.33 billion as of June 30, 2026, an increase of $6.8 million or 0.3% from March 31, 2026, and an increase of $260.8 million or 12.6% from June 30, 2025.
• Total deposits were $2.38 billion as of June 30, 2026, an increase of $6.5 million or 0.3% from March 31, 2026, which included a reduction in brokered deposits of $0.2 million.
• Total cost of deposits was 1.63% for the second quarter of 2026, a decrease from 1.67% in the prior quarter and 2.08% in the second quarter of 2025, an improvement of 2.5% quarter over quarter and 21.7% year over year. The spot rate for total deposits was 1.65% as of June 30, 2026, compared to 1.55% at March 31, 2026 as a result of deposit mix changes. Total cost of funding sources was 1.68% for the second quarter of 2026, a decrease from 1.73% in the prior quarter and 2.14% in the second quarter of 2025.
• Loans held-for-investment (“HFI”) totaled $2.13 billion as of June 30, 2026, a decrease of $8.2 million or 0.4% from March 31, 2026.
• Investment securities available-for-sale (“AFS”) were $237.1 million as of June 30, 2026, an increase of $16.2 million or 7.3% since March 31, 2026, and an increase of $48.3 million or 25.6% from June 30, 2025, primarily as a result of new securities purchased.
• Net interest margin was 5.18% for the second quarter of 2026, compared to 5.21% in the prior quarter and 4.94% in the second quarter of 2025.
• For the second quarter of 2026, a provision reversal of $0.2 million was recorded, compared to a provision expense of $2.0 million for the prior quarter and a provision expense of $1.3 million for the second quarter of 2025. The allowance for loan losses was 1.43% of loans HFI as of June 30, 2026 compared to 1.41% at March 31, 2026.
• As of June 30, 2026, criticized loans totaled $58.0 million, or 2.72% of total loans, down from $68.3 million, or 3.19% of total loans at March 31, 2026.
• Tangible book value per share⁽¹⁾ was $49.57 as of June 30, 2026, an increase of $2.19 since March 31, 2026 primarily as a result of strong earnings.
• Filing of the Company’s Registration Statement on Form 10 (the “Registration Statement”) pursuant to the Securities Exchange Act of 1934, as amended, in connection with strategic decision to pursue a listing on the NASDAQ Global Select Market (“NASDAQ”).

LA JOLLA, Calif., July 16, 2026 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX: PBAM), (“Company”) and CalPrivate Bank (“Bank”) announced unaudited financial results for the second fiscal quarter ended June 30, 2026. The Company reported net income of $13.1 million, or $2.27 per diluted share, for the second quarter of 2026, compared to $12.0 million, or $2.07 per diluted share, in the prior quarter, and $10.4 million, or $1.77 per diluted share, in the second quarter of 2025.

Rick Sowers, President and Chief Executive Officer of the Company and the Bank stated, “The second quarter of 2026 reflects continued strong earnings, a strong net interest margin that remained above 5%, and solid seasonal deposit trends. Credit metrics improved in the quarter, with declines in both non-performing assets and past-due loans. Loan production was solid, with strong origination volume mostly offsetting elevated maturities and prepayments, resulting in a modest decline in loan balances. We operate in competitive markets and spreads on new originations are compressed. While the goal continues to be organic growth, we remain disciplined in how we lend.”

Sowers added, “We made significant investments in new roles and team members during the first half of the year, including a Chief Operating Officer, General Counsel, and a senior leader in Data and AI, to name a few. These investments reflect the Company’s commitment to scaling the business, focusing on delivering our Distinctively Different^TM Service to our Clients, delivering long-term shareholder value, and preparing to be a public reporting company.”

“Once again, our team produced superior quarterly profitability while investing in human capital, technology, and the professional fees related to the Board’s intention to transfer the Company’s common stock listing to NASDAQ,” said Selwyn Isakow, Chairman of the Board of the Company and the Bank. “The planned uplisting is subject to the satisfaction of all applicable initial listing requirements, including NASDAQ’s final approval of the listing. Moving to NASDAQ marks a pivotal milestone for our company. We believe this transition will enhance our credibility, expand access to capital, improve market visibility and liquidity, reinforce our ability to attract and retain exceptional talent as we continue to grow, and provide additional flexibility when pursuing accretive strategic growth opportunities. We believe these advantages will better position us to execute our long-term growth strategy and create sustainable long-term value for shareholders.”

STATEMENT OF INCOME

Net Interest Income

Net interest income for the second quarter of 2026 totaled $33.5 million, an increase of $0.9 million or 2.9% from the prior quarter and an increase of $3.4 million or 11.4% from the second quarter of 2025. The increase from the prior quarter was driven by a $1.0 million increase in interest income, primarily reflecting higher interest loan income, partially offset by a modest increase in interest expense.

Net Interest Margin

Net interest margin (“NIM”) for the second quarter of 2026 was 5.18%, compared to 5.21% for the prior quarter and 4.94% in the second quarter of 2025. The decrease of 3 basis points (bps) in the NIM from the prior quarter included a decrease in prepayment penalties (-7 bps) and the absence of a special FHLB stock dividend recorded in the prior quarter (-5 bps), partially offset by an increase in net nonaccrual interest recognized (+8 bps). The yield on interest-earning assets was 6.70% for the second quarter of 2026 compared to 6.77% for the prior quarter, and the cost of interest-bearing liabilities was 2.32% for the second quarter of 2026 compared to 2.39% in the prior quarter. The cost of total deposits was 1.63% for the second quarter of 2026 compared to 1.67% in the prior quarter. The cost of core deposits, which excludes brokered deposits, was 1.57% in the second quarter of 2026 compared to 1.60% in the prior quarter and 1.94% for the second quarter of 2025. The spot rate for total deposits was 1.65% as of June 30, 2026, compared to 1.55% at March 31, 2026 as a result of deposit mix changes.

Provision for Credit Losses

A credit loss provision reversal of $0.2 million was recorded for the second quarter of 2026, compared to a $2.0 million provision expense in the prior quarter and a $1.3 million provision expense in the second quarter of 2025. The provision for loans HFI for the second quarter of 2026 was a $0.1 million provision reversal, primarily reflecting $0.3 million of net recoveries and lower delinquencies within the collectively evaluated loan portfolio, partially offset by higher reserves for individually evaluated loans. For more details, please refer to the “Asset Quality” section below.

Noninterest Income

Noninterest income was $1.0 million for the second quarter of 2026, compared to $1.9 million in the prior quarter and $1.7 million in the second quarter of 2025. U.S. Small Business Administration (“SBA”) loans totaling $3.4 million were sold during the second quarter of 2026 with a 10.50% average trade premium, and we also recognized a premium reimbursement of $0.2 million, resulting in a net gain on sale of $4 thousand, compared with sales of $16.2 million with a 10.31% average trade premium resulting in a net gain on sale of $0.9 million in the prior quarter.

Noninterest Expense

Noninterest expense was $16.9 million for the second quarter of 2026, compared to $15.7 million in the prior quarter and $15.7 million in the second quarter of 2025. The efficiency ratio⁽¹⁾ was 48.81% for the second quarter of 2026, compared to 45.39% in the prior quarter and 49.27% in the second quarter of 2025. The increase in the efficiency ratio from the prior quarter primarily reflected a $0.9 million decrease in noninterest income and a $1.2 million increase in noninterest expense, partially offset by a $0.9 million increase in net interest income. The increase in noninterest expense primarily reflected higher professional services related, in part, to our initiative to become an SEC reporting company and have the Company’s common stock listed on NASDAQ.

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 $4.8 million for the second quarter of 2026, compared to $4.8 million for the prior quarter. The effective tax rate for the second quarter of 2026 was 26.7%, compared to 28.6% in the prior quarter and 29.7% in the second quarter of 2025. The decrease in the effective tax rate was primarily driven by discrete tax benefits associated with equity compensation.

STATEMENT OF FINANCIAL CONDITION

As of June 30, 2026, total assets were $2.71 billion, an increase of $14.4 million since March 31, 2026. The increase in assets from the prior quarter primarily reflected a $16.2 million increase in AFS securities, a $4.7 million increase in other assets (primarily reflecting a $5.1 million increase in other real estate owned) and a $3.4 million increase in cash and due from banks, partially offset by an $8.2 million decrease in loans held for investment. AFS securities were $237.1 million as of June 30, 2026, an increase of $16.2 million or 7.3% since March 31, 2026, primarily as a result of new securities purchased. As of June 30, 2026, the net unrealized loss on the AFS securities portfolio, which is comprised primarily of U.S. government agency mortgage-backed securities, was $8.9 million (pre-tax) compared to a loss of $7.9 million (pre-tax) as of March 31, 2026. The average duration of the Bank’s AFS portfolio is 4.0 years. The Company has no held-to-maturity securities. Loans HFI totaled $2.13 billion as of June 30, 2026, a decrease of $8.2 million since March 31, 2026, primarily reflecting lower SBA 504, owner-occupied CRE and C&I balances, partially offset by increases in investor-owned CRE, single-family-secured and multifamily loans.

Total deposits were $2.38 billion as of June 30, 2026, an increase of $6.5 million since March 31, 2026. During the quarter, core deposits increased by $6.8 million, as a $79.4 million increase in interest-bearing core deposits (including balances in the IntraFi ICS and CDARS programs) was partially offset by a $72.6 million decrease in noninterest-bearing core deposits. Noninterest-bearing deposits represented 28.4% of total core deposits. Brokered deposits decreased by $0.2 million since March 31, 2026. Uninsured deposits, net of collateralized and fiduciary deposit accounts, represent 53.8% of total deposits as of June 30, 2026.

As of June 30, 2026, total available liquidity was $2.4 billion or 190.8% of uninsured deposits, net of collateralized and fiduciary deposits. Total available liquidity is comprised of $525 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 June 30, 2026, the allowance for loan losses was $30.5 million or 1.43% of loans HFI, compared to $30.2 million or 1.41% of loans HFI as of March 31, 2026. The coverage ratio increased compared to the prior quarter primarily due to higher reserves on individually evaluated loans. Nonperforming assets were 1.50% of total assets as of June 30, 2026 compared to 1.60% as of March 31, 2026. The reserve for unfunded commitments was $0.5 million as of June 30, 2026, compared to $0.7 million as of March 31, 2026.

At June 30, 2026, criticized loans totaled $58.0 million, or 2.72% of total loans, down from $68.3 million, or 3.19% of total loans at March 31, 2026, of which classified loans were $51.0 million and $59.5 million, respectively. The June 30, 2026 classified balance consisted of 47 loans: 36 real estate secured loans totaling $42.6 million and a 61.6% weighted-average LTV; and 11 commercial and industrial loans totaling $8.4 million.

As of June 30, 2026, nonaccrual loans were $26.9 million. Specific reserves of $1.8 million were held against nonaccrual loan balances of $5.8 million. The remaining nonaccrual balances were supported by collateral values in excess of loan balances.

As of June 30, 2026, nonperforming assets were $40.5 million, or 1.50% of total assets, a decrease of $2.6 million from $43.2 million, or 1.60% of total assets, at March 31, 2026, driven by a $7.7 million decrease in nonaccrual loans partially offset by a $5.1 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:

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

Private Bancorp of America, Inc. Announces Intent to Uplist to NASDAQ Global Market

The Company has filed the Registration Statement with the U.S. Securities and Exchange Commission (the “SEC”) in connection with its planned uplisting of the Company’s common stock to NASDAQ. The Registration Statement has not been declared effective by the SEC. The Registration Statement will become effective following conclusion of the SEC’s review of the Registration Statement and approval by NASDAQ of our listing application. The Company’s common stock will continue to trade on the OTCQX market under the ticker symbol “PBAM” until the Company is able to uplist to NASDAQ. Subject to NASDAQ’s approval of our listing application, we will continue to trade under the ticker symbol “PBAM”. We expect the uplisting to occur, subject to the receipt of the requisite SEC and NASDAQ approvals, during third quarter of 2026.

Share Repurchases Authorized

During the quarter, the Company's Board of Directors authorized a stock repurchase program, whereby the Company may repurchase an aggregate amount of up to $10.0 million shares of its common stock, or approximately 2.3% of its outstanding shares of common stock. To date, no shares of the Company’s common stock were repurchased under the plan.

About Private Bancorp of America, Inc. (OTCQX: 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. CalPrivate Bank has been recognized by Bank Director's RankingBanking® as the 10^th best bank in the country and the #1 bank in its asset class for both return on assets (ROA) and return on equity (ROE). CalPrivate Bank was also ranked in the top 5% of banks in the U.S. with assets between $2B and $10B by American Banker. 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 prestigious rankings highlight the Bank’s commitment to delivering exceptional banking services and setting new industry standards.

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 communication 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. We caution you that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. 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, and the risk that the Company may not be able to complete its uplisting to NASDAQ. You should not place undue reliance on forward-looking statements, and we undertake no obligation to update those statements whether as a result of changes in underlying factors, new information, future events or otherwise. These factors could cause actual results to differ materially from what we anticipate or project. You should not place undue reliance on any such forward-looking statement, which speaks only as of the date on which it was made. 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.

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

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

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.