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 DifferentTM 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:

 June 30, 2026(2)March 31, 2026CalPrivate Bank  Tier I leverage ratio11.52%11.29%Tier I risk-based capital ratio13.61%12.95%Total risk-based capital ratio14.86%14.20%

(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 10th 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 .

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.

PRIVATE BANCORP OF AMERICA, INC.CONSOLIDATED BALANCE SHEET(Unaudited)(Dollars in thousands)            Jun 30, 2026  Mar 31, 2026  Jun 30, 2025 Assets         Cash and due from banks $32,211  $26,135  $26,215 Interest-bearing deposits in other financial institutions  22,275   24,078   14,715 Interest-bearing deposits at Federal Reserve Bank  245,869   246,788   99,689 Total cash and due from banks  300,355   297,001   140,619 Interest-bearing time deposits with other institutions  4,344   4,326   4,270 Investment debt securities available for sale  237,074   220,908   188,821 Loans held for sale  -   596   8,826 Loans, net of deferred fees and costs and unaccreted discounts  2,132,724   2,140,964   2,081,063 Allowance for loan losses  (30,462)  (30,236)  (28,178)Loans held-for-investment, net of allowance  2,102,262   2,110,728   2,052,885 Federal Home Loan Bank stock, at cost  11,251   10,652   10,652 Operating lease right of use assets  6,733   7,196   7,254 Premises and equipment, net  2,525   2,678   2,213 Servicing assets, net  1,717   1,957   1,964 Accrued interest receivable  8,248   8,773   8,624 Other assets  33,793   29,111   28,752 Total assets $2,708,302  $2,693,926  $2,454,880           Liabilities and Shareholders' Equity         Liabilities         Noninterest bearing $663,200  $735,802  $601,473 Interest bearing  1,718,037   1,638,893   1,561,407 Total deposits  2,381,237   2,374,695   2,162,880 FHLB borrowings  8,000   8,000   11,000 Other borrowings  17,979   17,978   17,972 Accrued interest payable and other liabilities  15,570   20,521   16,089 Total liabilities  2,422,786   2,421,194   2,207,941           Shareholders' equity         Common stock  78,214   78,053   76,398 Additional paid-in capital  4,264   3,992   4,009 Retained earnings  209,263   196,247   172,849 Accumulated other comprehensive (loss) income, net  (6,225)  (5,560)  (6,317)Total shareholders' equity  285,516   272,732   246,939 Total liabilities and shareholders' equity $2,708,302  $2,693,926  $2,454,880 
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   Jun 30, 2026  Mar 31, 2026  Jun 30, 2025  Jun 30, 2026  Jun 30, 2025 Interest Income               Loans $39,038  $37,967  $38,004  $77,005  $74,569 Investment securities  2,384   2,661   1,800   5,045   3,305 Deposits in other financial institutions  1,953   1,785   2,184   3,738   4,382 Total interest income  43,375   42,413   41,988   85,788   82,256                 Interest Expense               Deposits  9,413   9,360   11,376   18,773   23,275 Borrowings  417   444   499   861   1,136 Total interest expense  9,830   9,804   11,875   19,634   24,411                 Net interest income  33,545   32,609   30,113   66,154   57,845 Provision for credit losses  (204)  2,019   1,293   1,815   1,592 Net interest income after provision for credit losses  33,749   30,590   28,820   64,339   56,253                 Noninterest income:               Service charges on deposit accounts  533   544   591   1,077   1,148 Net gain on sale of loans  4   907   523   911   992 Other noninterest income  464   484   616   948   1,203 Total noninterest income  1,001   1,935   1,730   2,936   3,343                 Noninterest expense:               Compensation and employee benefits  11,142   10,811   10,319   21,953   20,067 Occupancy and equipment  876   858   840   1,734   1,684 Data processing  1,491   1,369   1,396   2,860   2,722 Professional services  1,061   610   939   1,671   1,447 Other expenses  2,293   2,032   2,195   4,325   3,824 Total noninterest expense  16,863   15,680   15,689   32,543   29,744 Income before provision for income taxes  17,887   16,845   14,861   34,732   29,852 Provision for income taxes  4,769   4,818   4,412   9,587   8,841 Net income $13,118  $12,027  $10,449  $25,145  $21,011 Net income available to common shareholders $13,018  $11,942  $10,361  $24,960  $20,834                 Earnings per share               Basic earnings per share $2.29  $2.10  $1.80  $4.39  $3.63 Diluted earnings per share $2.27  $2.07  $1.77  $4.34  $3.57                 Average shares outstanding  5,681,165   5,694,148   5,754,872   5,687,621   5,744,836 Diluted average shares outstanding  5,741,395   5,773,819   5,837,537   5,757,609   5,830,897 
PRIVATE BANCORP OF AMERICA, INC.Consolidated average balance sheet, interest, yield and rates(Unaudited)(Dollars in thousands)      For the three months ended   Jun 30, 2026  Mar 31, 2026  Jun 30, 2025   Average Balance  Interest  Average Yield/Rate  Average Balance  Interest  Average Yield/Rate  Average Balance  Interest  Average Yield/Rate Interest-Earnings Assets                           Deposits in other financial institutions $206,162  $1,953   3.80% $184,847  $1,785   3.92% $191,701  $2,184   4.57%Investment securities  241,093   2,384   3.96%  230,033   2,661   4.63%  182,772   1,800   3.94%Loans, including LHFS  2,148,935   39,038   7.29%  2,125,318   37,967   7.24%  2,069,415   38,004   7.37%Total interest-earning assets  2,596,190   43,375   6.70%  2,540,198   42,413   6.77%  2,443,888   41,988   6.89%Noninterest-earning assets  46,930         53,274         43,336       Total Assets $2,643,120        $2,593,472        $2,487,224                                   Interest-Bearing Liabilities                           Interest bearing DDA, excluding brokered  293,170   319   0.44%  297,364   576   0.79%  242,929   814   1.34%Savings & MMA, excluding brokered  1,114,162   6,765   2.44%  1,057,767   6,278   2.41%  1,002,820   7,130   2.85%Time deposits, excluding brokered  213,426   1,818   3.42%  216,661   1,852   3.47%  218,900   2,097   3.84%Total deposits, excluding brokered  1,620,758   8,902   2.20%  1,571,792   8,706   2.25%  1,464,649   10,041   2.75%Total brokered deposits  49,514   511   4.14%  61,950   654   4.28%  120,935   1,335   4.43%Total Interest-Bearing Deposits  1,670,272   9,413   2.26%  1,633,742   9,360   2.32%  1,585,584   11,376   2.88%                            FHLB advances  8,000   83   4.16%  10,333   110   4.32%  12,868   139   4.33%Other borrowings  17,981   334   7.45%  17,976   334   7.54%  17,973   360   8.03%Total Interest-Bearing Liabilities  1,696,253   9,830   2.32%  1,662,051   9,804   2.39%  1,616,425   11,875   2.95%                            Noninterest-bearing deposits  649,135         640,076         609,760       Total Funding Sources  2,345,388   9,830   1.68%  2,302,127   9,804   1.73%  2,226,185   11,875   2.14%                            Noninterest-bearing liabilities  17,583         19,472         18,804       Shareholders' equity  280,149         271,873         242,235                                   Total Liabilities and Shareholders' Equity $2,643,120        $2,593,472        $2,487,224                                   Net interest income/spread    $33,545   5.02%    $32,609   5.04%    $30,113   4.75%Net interest margin        5.18%        5.21%        4.94%
PRIVATE BANCORP OF AMERICA, INC.Consolidated average balance sheet, interest, yield and rates(Unaudited)(Dollars in thousands)      Year to Date   Jun 30, 2026  Jun 30, 2025   Average Balance  Interest  Average Yield/Rate  Average Balance  Interest  Average Yield/Rate Interest-Earnings Assets:                  Deposits in other financial institutions $195,563  $3,738   3.85% $197,273  $4,382   4.48%Investment securities  235,594   5,045   4.31%  170,328   3,305   3.90%Loans  2,137,192   77,005   7.27%  2,073,976   74,569   7.25%Total interest-earning assets  2,568,349   85,788   6.74%  2,441,577   82,256   6.79%Noninterest-earning assets  50,084         35,977       Total Assets $2,618,433        $2,477,554                          Interest-Bearing Liabilities                  Interest bearing DDA, excluding brokered  295,256   895   0.61%  243,611   1,784   1.48%Savings & MMA, excluding brokered  1,086,121   13,043   2.42%  979,170   13,960   2.88%Time deposits, excluding brokered  215,034   3,670   3.44%  207,699   4,053   3.94%Total deposits, excluding brokered  1,596,411   17,608   2.22%  1,430,480   19,797   2.79%Total brokered deposits  55,698   1,165   4.22%  151,825   3,478   4.62%Total Interest-Bearing Deposits  1,652,109   18,773   2.29%  1,582,305   23,275   2.97%                   FHLB advances  9,160   193   4.25%  18,464   411   4.49%Other borrowings  17,979   668   7.49%  17,977   725   8.13%Total Interest-Bearing Liabilities  1,679,248   19,634   2.36%  1,618,746   24,411   3.04%                   Noninterest-bearing deposits  644,631         602,126       Total Funding Sources  2,323,879   19,634   1.70%  2,220,872   24,411   2.22%                   Noninterest-bearing liabilities  18,522         20,165       Shareholders' equity  276,032         236,517                          Total Liabilities and Shareholders' Equity $2,618,433        $2,477,554                          Net interest income/spread    $66,154   5.04%    $57,845   4.57%Net interest margin        5.19%        4.78%
PRIVATE BANCORP OF AMERICA, INC.Condensed Balance Sheets(Unaudited)(Dollars in thousands, except per share amounts)                  Jun 30, 2026  Mar 31, 2026  Dec 31, 2025  Sep 30, 2025  Jun 30, 2025 Assets               Cash and due from banks $300,355  $297,001  $155,015  $261,367  $140,619 Interest-bearing time deposits with other institutions  4,344   4,326   4,355   4,295   4,270 Investment securities  237,074   220,908   217,837   199,852   188,821 Loans held for sale  -   596   2,330   314   8,826 Total loans held-for-investment  2,132,724   2,140,964   2,126,147   2,081,611   2,081,063 Allowance for loan losses  (30,462)  (30,236)  (29,323)  (28,785)  (28,178)Loans held-for-investment, net of allowance  2,102,262   2,110,728   2,096,824   2,052,826   2,052,885 Operating lease right of use assets  6,733   7,196   6,352   6,811   7,254 Premises and equipment, net  2,525   2,678   2,783   2,252   2,213 Other assets and interest receivable  55,009   50,493   49,561   48,764   49,992 Total assets $2,708,302  $2,693,926  $2,535,057  $2,576,481  $2,454,880                 Liabilities and Shareholders' Equity               Liabilities               Noninterest Bearing $663,200  $735,802  $606,105  $654,072  $601,473 Interest Bearing  1,718,037   1,638,893   1,617,776   1,618,296   1,561,407 Total Deposits  2,381,237   2,374,695   2,223,881   2,272,368   2,162,880 Borrowings  25,979   25,978   28,976   28,974   28,972 Accrued interest payable and other liabilities  15,570   20,521   18,236   17,185   16,089 Total liabilities  2,422,786   2,421,194   2,271,093   2,318,527   2,207,941 Shareholders' equity               Common stock  78,214   78,053   76,972   76,403   76,398 Additional paid-in capital  4,264   3,992   4,389   4,479   4,009 Retained earnings  209,263   196,247   187,473   182,546   172,849 Accumulated other comprehensive (loss) income  (6,225)  (5,560)  (4,870)  (5,474)  (6,317)Total shareholders' equity  285,516   272,732   263,964   257,954   246,939 Total liabilities and shareholders' equity $2,708,302  $2,693,926  $2,535,057  $2,576,481  $2,454,880                 Book value per common share $49.87  $47.72  $46.08  $44.45  $42.54 Tangible book value per common share(1) $49.57  $47.38  $45.75  $44.11  $42.20 Shares outstanding  5,725,696   5,715,049   5,728,187   5,803,016   5,805,286 

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

PRIVATE BANCORP OF AMERICA, INC.Condensed Statements of Income(Unaudited)(Dollars in thousands, except per share amounts)    For the three months ended  Jun 30, 2026  Mar 31, 2026  Dec 31, 2025  Sep 30, 2025  Jun 30, 2025 Interest income$43,375  $42,413  $41,872  $41,254  $41,988 Interest expense 9,830   9,804   10,819   11,922   11,875 Net interest income 33,545   32,609   31,053   29,332   30,113 Provision for credit losses (204)  2,019   2,558   1,792   1,293 Net interest income after provision for credit losses 33,749   30,590   28,495   27,540   28,820                Service charges on deposit accounts 533   544   529   537   591 Net gain on sale of loans 4   907   320   1,008   523 Other noninterest income 464   484   564   627   616 Total noninterest income 1,001   1,935   1,413   2,172   1,730                Compensation and employee benefits 11,142   10,811   10,633   10,882   10,319 Occupancy and equipment 876   858   906   841   840 Data processing 1,491   1,369   1,347   1,429   1,396 Professional services 1,061   610   660   742   939 Other expenses 2,293   2,032   2,187   2,011   2,195 Total noninterest expense 16,863   15,680   15,733   15,905   15,689                Income before provision for income taxes 17,887   16,845   14,175   13,807   14,861 Income taxes 4,769   4,818   4,221   4,106   4,412 Net income$13,118  $12,027  $9,954  $9,701  $10,449 Net income available to common shareholders$13,018  $11,942  $9,874  $9,623  $10,361                Earnings per share              Basic earnings per share$2.29  $2.10  $1.73  $1.67  $1.80 Diluted earnings per share$2.27  $2.07  $1.71  $1.65  $1.77                Average shares outstanding 5,681,165   5,694,148   5,701,291   5,757,192   5,754,872 Diluted average shares outstanding 5,741,395   5,773,819   5,785,991   5,837,837   5,837,537 
 Performance Ratios  Jun 30, 2026  Mar 31, 2026  Dec 31, 2025  Sep 30, 2025  Jun 30, 2025 ROAA 1.99%  1.88%  1.53%  1.51%  1.69%ROAE 18.78%  17.94%  15.11%  15.16%  17.30%ROATCE(1) 18.90%  18.07%  15.22%  15.28%  17.44%Net interest margin 5.18%  5.21%  4.84%  4.65%  4.94%Net interest spread 5.02%  5.04%  4.67%  4.45%  4.75%Efficiency ratio(1) 48.81%  45.39%  48.46%  50.49%  49.27%Noninterest expense / average assets 2.56%  2.45%  2.41%  2.47%  2.53%

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

PRIVATE BANCORP OF AMERICA, INC.(Unaudited)      Selected Quarterly Average Balances   (Dollars in thousands)   For the three months ended   Jun 30, 2026  Mar 31, 2026  Dec 31, 2025  Sep 30, 2025  Jun 30, 2025 Total assets $2,643,120  $2,593,472  $2,589,506  $2,550,564  $2,487,224 Earning assets $2,596,190  $2,540,198  $2,545,081  $2,505,145  $2,443,888 Total loans, including loans held for sale $2,148,935  $2,125,318  $2,101,190  $2,091,309  $2,069,415 Total deposits $2,319,407  $2,273,818  $2,279,735  $2,250,180  $2,195,344 Total shareholders' equity $280,149  $271,873  $261,344  $253,829  $242,235 
 Loan Balances by Type  (Dollars in thousands)  Jun 30, 2026  Mar 31, 2026  Dec 31, 2025  Sep 30, 2025  Jun 30, 2025 Commercial Real Estate (CRE):              Investor owned$570,865  $560,707  $577,730  $595,833  $604,070 Owner occupied 223,442   238,653   236,623   226,919   224,760 Multifamily 184,005   177,151   155,941   145,496   160,902 Secured by single family 205,365   194,494   198,743   210,812   197,137 Land and construction 48,782   43,879   47,029   53,976   51,669 SBA secured by real estate 409,467   430,962   403,609   402,648   401,546 Total CRE 1,641,926   1,645,846   1,619,675   1,635,684   1,640,084 Commercial business:              Commercial and industrial 453,854   461,824   471,526   415,353   412,107 SBA non-real estate secured 34,935   31,265   32,853   28,655   26,931 Total commercial business 488,789   493,089   504,379   444,008   439,038 Consumer 2,009   2,029   2,093   1,919   1,941 Total loans held for investment$2,132,724  $2,140,964  $2,126,147  $2,081,611  $2,081,063 
 Deposits by Type  (Dollars in thousands)  Jun 30, 2026  Mar 31, 2026  Dec 31, 2025  Sep 30, 2025  Jun 30, 2025 Noninterest-bearing DDA$663,200  $735,802  $606,105  $654,072  $601,473 Interest-bearing DDA, excluding brokered 308,561   298,747   309,013   268,210   251,701 Savings & MMA, excluding brokered 1,136,048   1,073,682   1,024,829   1,038,035   990,798 Time deposits, excluding brokered 224,127   216,915   218,871   231,886   227,129 Total deposits, excluding brokered 2,331,936   2,325,146   2,158,818   2,192,203   2,071,101 Total brokered deposits 49,301   49,549   65,063   80,165   91,779 Total deposits$2,381,237  $2,374,695  $2,223,881  $2,272,368  $2,162,880 
PRIVATE BANCORP OF AMERICA, INC.(Unaudited)      Rollforward of Allowance for Credit Losses   (Dollars in thousands)   For the three months ended   Jun 30, 2026  Mar 31, 2026  Dec 31, 2025  Sep 30, 2025  Jun 30, 2025 Allowance for loan losses:               Beginning balance $30,236  $29,323  $28,785  $28,178  $26,437 Provision for loan losses  (73)  2,026   2,898   1,666   1,741 Net (charge-offs) recoveries  299   (1,113)  (2,360)  (1,059)  - Ending balance  30,462   30,236   29,323   28,785   28,178 Reserve for unfunded commitments  546   677   684   1,024   899 Total allowance for credit losses $31,008  $30,913  $30,007  $29,809  $29,077 
 Asset Quality  (Dollars in thousands)  Jun 30, 2026  Mar 31, 2026  Dec 31, 2025  Sep 30, 2025  Jun 30, 2025 Total loans held-for-investment$2,132,724  $2,140,964  $2,126,147  $2,081,611  $2,081,063 Allowance for loan losses$(30,462) $(30,236) $(29,323) $(28,785) $(28,178)30-89 day past due loans, excluding nonaccrual$880  $20,741  $5,945  $7,354  $4,680 90+ day past due loans, excluding nonaccrual$-  $-  $-  $-  $- Nonaccrual loans$26,893  $34,584  $42,227  $37,663  $7,722 Other real estate owned (OREO)$13,637  $8,568  $8,568  $8,568  $8,568 NPAs / Total assets 1.50%  1.60%  2.00%  1.79%  0.66%NPLs / Total loans held-for-investment 1.26%  1.62%  1.99%  1.81%  0.37%Net quarterly charge-offs (recoveries)$(299) $1,113  $2,360  $1,059  $- Net charge-offs (recoveries) /avg loans (annualized) (0.06)%  0.21%  0.45%  0.20%  0.00%Allowance for loan losses to loans HFI 1.43%  1.41%  1.38%  1.38%  1.35%Allowance for loan losses to nonaccrual loans 113.27%  87.43%  69.44%  76.43%  364.91%

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  Jun 30, 2026  Mar 31, 2026  Dec 31, 2025  Sep 30, 2025  Jun 30, 2025 Efficiency Ratio              Noninterest expense$16,863  $15,680  $15,733  $15,905  $15,689 Net interest income 33,545   32,609   31,053   29,332   30,113 Noninterest income 1,001   1,935   1,413   2,172   1,730 Total net interest income and noninterest income 34,546   34,544   32,466   31,504   31,843 Efficiency ratio (non-GAAP) 48.81%  45.39%  48.46%  50.49%  49.27%               Pretax pre-provision net revenue              Net interest income$33,545  $32,609  $31,053  $29,332  $30,113 Noninterest income 1,001   1,935   1,413   2,172   1,730 Total net interest income and noninterest income 34,546   34,544   32,466   31,504   31,843 Less:Noninterest expense 16,863   15,680   15,733   15,905   15,689 Pretax pre-provision net revenue (non-GAAP)$17,683  $18,864  $16,733  $15,599  $16,154                Return and Adjusted Return on Average Assets, Average Equity, Average Tangible Equity              Net income$13,118  $12,027  $9,954  $9,701  $10,449 Average assets 2,643,120   2,593,472   2,589,506   2,550,564   2,487,224 Average shareholders' equity 280,149   271,873   261,344   253,829   242,235 Less:Average intangible assets 1,819   1,910   1,913   2,025   1,953 Average tangible common equity (non-GAAP) 278,330   269,963   259,431   251,804   240,282                Return on average assets 1.99%  1.88%  1.53%  1.51%  1.69%Return on average equity 18.78%  17.94%  15.11%  15.16%  17.30%Return on average tangible common equity (non-GAAP) 18.90%  18.07%  15.22%  15.28%  17.44%               Tangible book value per share              Total equity 285,516   272,732   263,964   257,954   246,939 Less:Total intangible assets 1,717   1,957   1,913   2,004   1,964 Total tangible equity 283,799   270,775   262,051   255,950   244,975 Shares outstanding 5,725,696   5,715,049   5,728,187   5,803,016   5,805,286 Tangible book value per share (non-GAAP)$49.57  $47.38  $45.75  $44.11  $42.20