Earnings release
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(1) A non-GAAP financial measure. A reconciliation of non-GAAP financial measures to GAAP financial measures can be found on pages 14- 15 1 FOR IMMEDIATE RELEASE Private Bancorp of America, Inc. Announces Continued Strong Net Income for Fourth Quarter 2025 Fourth Quarter 2025 Highlights • Net income for the fourth quarter of 2025 was $10.0 million, compared to $9.7 million in the prior quarter and $10.7 million in the fourth quarter of 2024. • Net income for the fourth quarter of 2025 represents a return on average assets of 1.53% and a return on average tangible common equity(1) of 15.22%. • Diluted earnings per share for the fourth quarter of 2025 was $1.71, compared to $1.65 in the prior quarter and $1.82 i n the fourth quarter of 2024. • Core deposits were $2.16 billion as of December 31, 2025, a decrease of $33.4 million or 1.5% from September 30, 2025, and an increase of $264.2 million or 13.9% from the fourth quarter of 2024. • Total deposits were $2.22 billion as of December 31, 2025, a decrease of $48.5 million or 2.1% from September 30, 2025, which included a reduction in brokered deposits of $15.1 million, compared to total deposits of $2.13 billion as of December 31, 2024. • Total cost of deposits was 1.80% for the fourth quarter of 2025, a decrease from 2.02% in the prior quarter and 2.36% in the fourth quarter of 2024, an improvement of 10.7% quarter over quarter and 23.7% year over year. The spot rate for total deposits was 1.71% as of December 31, 2025, compared to 1.91% at September 30, 2025. Total cost of funding sources was 1.86% for the fourth quarter of 2025, a decrease from 2.08% in the prior quarter and 2.45% in the fourth quarter of 2024. • Loans held-for-investment ("HFI") totaled $2.13 billion as of December 31, 2025, an increase of $44.5 million or 2.1% from September 30, 2025. • Investment securities available-for-sale ("AFS") were $217.8 million as of December 31, 2025, an increase of $18.0 million or 9.00% since September 30, 2025, and an increase of $72.6 million or 50.0% from December 31, 2024, primarily as a result of new securities purchased. • Net interest margin was 4.84% for the fourth quarter of 2025 , compared to 4.65% in the prior quarter and 4.67% in the fourth quarter of 2024. • Provision for credit losses for the fourth quarter of 2025 was $2.6 million, compared to $1.8 million for the prior quarter and $17 thousand for the fourth quarter of 2024. The allowance for loan losses was 1.38% of loans HFI as of December 31, 2025 compared to 1.38% at September 30, 2025. • As of December 31, 2025, criticized loans totaled $73.2 million, or 3.44% of total loans, up from $70.5 million, or 3.39% of total loans at September 30, 2025. • Tangible book value per share (1) was $45.75 as of December 31, 2025, an increase of $1.64 since September 30, 2025 primarily as a result of strong earnings. 2025 Full Year and Period End Highlights • Net income of $40.7 million for FY'25, up from $35.8 million in FY'24, an increase of 13.5% year over year. • Net income for FY'25 represents a return on average assets of 1.61% and a return on average tangible common equity(1) of 16.59%. • Diluted earnings per share of $6.92 for FY'25, up 12.5% from $6.15 in FY'24.
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2 • Pretax pre-provision net revenue(1) of $63.8 million for FY'25, up $10.2 million or 19.1% year over year. • Loans held-for-investment ("HFI") totaled $2.13 billion as of December 31, 2025, an increase of $41.0 million or 2.0% from December 31, 2024. • Total deposits were $2.22 billion as of December 31, 2025, an increase of $89.4 million or 4.2% from December 31, 2024, which included core deposits of $1.89 billion, which increased $264.2 million or 13.9% from the prior year, and brokered deposits of $65.1 million, which decreased $174.8 million or 72.9% from the prior year. • Federal Home Loan Bank advances decreased by $17.0 million as a result of strong core deposit growth. • Net interest margin was 4.76% for FY'25, an increase from 4.48% in FY'24. • Total cost of deposits was 2.03% for FY'25, a decrease from 2.56% in FY'24. The spot rate for total deposits was 1.71% as of December 31, 2025, compared to 2.29% at December 31, 2024. Total cost of funding sources was 2.09% for FY'25, a decrease from 2.65% in FY'24. • Tangible book value per share (1) was $45.75 as of December 31, 2025, an increase of $7.35 or 19.1% since December 31, 2024 primarily as a result of strong earnings. La Jolla, Calif. – January 16, 2026 (GLOBE NEWSWIRE) - Private Bancorp of America, Inc. (OTCQX: PBAM), ("Company") and CalPrivate Bank ("Bank") announced unaudited financial results for the fourth fiscal quarter ended December 31, 2025. The Company reported net income of $10.0 million, or $1.71 per diluted share, for the fourth quarter of 2025, compared to $9.7 million, or $1.65 per diluted share, in the prior quarter, and $10.7 million, or $1.82 per diluted share, in the fourth quarter of 2024. Rick Sowers, President and CEO of the Company and the Bank stated, "We continued to make progress in adding new relationships and providing our Clients with our signature Distinctly Different Service. This led to strong loan growth and loan production in the quarter and pipelines are healthy coming into Q1 2026. Our Montecito office is now open and we are welcoming new Clients with the support of a wonderful community in Santa Barbara. Overall, we are pleased with the quarter, our strong earnings and loan growth." Sowers added, "We spent much of 2025 focused on building our internal infrastructure and client delivery capabilities, making significant investments in technology and Team Members, and we will continue this in 2026. We also reviewed a significant portion of the credit portfolio in conjunction with a change in our credit leadership and are laser focused on reducing criticized, classified and non-performing assets. We believe reserves are adequate and that this extensive review has put us on solid ground for continued growth. Additionally, our Relationship Teams did an outstanding job increasing core deposits by nearly 14% in 2025 while maintaining a very strong Net Interest Margin." The Bank's superior financial performance and industry leading service metrics continue to be recognized by industry publications and our Clients. This recognition reinforces our strategic thinking and our dedication to excellence, innovation, delivering Client-focused banking solutions and enhancing shareholder value: • Top 20 Community Banks in the US for 2025 by American Banker with assets between $2B and $10B in assets and #2 in California • #1 for both Return on Assets (ROA) and Return on Equity (ROE) among banks with less than $5 billion in assets in 2024 • #1 SBA 504 Community Bank Lender in the United States • #10 Best U.S. Bank by Bank Director’s RankingBanking® • Client Net Promoter Score of 81 (World Class) • Bauer 5 Star Rating • 2025 Best 50 OTCQX "CalPrivate Bank delivered strong quarterly performance, continued to outperform peers, and grew tangible book value, demonstrating the strength of our strategy and management’s disciplined execution,” said Selwyn Isakow, Chairman of the Board of the Company and the Bank. “At the same time, we are making targeted investments to scale the franchise, including our Santa Barbara County expansion, the addition of high-impact business development and operational talent, and continued enhancements to our core systems, digital capabilities, and AI. These investments reinforce our ability to provide uniquely exceptional client service, deliver creative and customized solutions, and deepen relationships, while expanding our long-term growth trajectory and strategic flexibility."
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3 STATEMENT OF INCOME Net Interest Income Net interest income for the fourth quarter of 2025 totaled $31.1 million, an increase of $1.7 million or 5.9% from the prior quarter and an increase of $3.6 million or 13.3% from the fourth quarter of 2024. The increase from the prior quarter was due to a $0.6 million increase in interest income and a $1.1 million decrease in interest expense primarily due to proactive management of deposit pricing in response to Federal Reserve Bank rate cuts. Net Interest Margin Net interest margin for the fourth quarter of 2025 was 4.84%, compared to 4.65% for the prior quarter and 4.67% in the fourth quarter of 2024. The 19 basis point increase in net interest margin from the prior quarter was primarily due to a lower cost of deposits, which decreased 22 basis points as a result of proactive management of deposit pricing. The yield on interest-earning assets was 6.53% for the fourth quarter of 2025 compared to 6.53% for the prior quarter, and the cost of interest-bearing liabilities was 2.60% for the fourth quarter of 2025 compared to 2.88% in the prior quarter. The cost of total deposits was 1.80% for the fourth quarter of 2025 compared to 2.02% in the prior quarter. The cost of core deposits, which excludes brokered deposits, was 1.71% in the fourth quarter of 2025 compared to 1.93% in the prior quarter and 2.07% for the fourth quarter of 2024. The spot rate for total deposits was 1.71% as of December 31, 2025, compared to 1.91% at September 30, 2025. Provision for Credit Losses Provision expense for credit losses for the fourth quarter of 2025 was $2.6 million, compared to $1.8 million in the prior quarter and $17 thousand in the fourth quarter of 2024. The provision expense for loans HFI for the fourth quarter of 2025 was $2.9 million, primarily reflecting net charge-offs of $2.4 million, loan portfolio growth and modestly higher forecasted loss rates on commercial and industrial loans, partially offset by a $1.2 million net reversal of specific reserves for individually-evaluated loans . In addition, there was a $0.3 million net reversal for unfunded commitments that was primarily a result of lower credit line commitment balances compared to the prior quarter. For more details, please refer to the "Asset Quality" section below. Noninterest Income Noninterest income was $1.4 million for the fourth quarter of 2025, compared to $2.2 million in the prior quarter and $1.9 million in the fourth quarter of 2024. U.S. Small Business Administration ("SBA") loan sales for the fourth quarter of 2025 were $5.6 million with a 10.56% average trade premium resulting in a net gain on sale of $0.3 million, compared with $17.3 million with a 9.46% average trade premium resulting in a net gain on sale of $1.0 million in the prior quarter. SBA loan gain on sale was muted in the fourth quarter due to the impact of the government shutdown. Noninterest Expense Noninterest expense was $15.7 million for the fourth quarter of 2025, compared to $15.9 million in the prior quarter and $14.2 million in the fourth quarter of 2024. The decrease in noninterest expense from the prior quarter is primarily due to lower compensation and employee benefits, primarily reflecting the seasonal impact of payroll tax caps. The efficiency ratio (1) was 48.46% for the fourth quarter of 2025 compared to 50.49% in the prior quarter and 48.34% in the fourth quarter of 2024. The decrease in the efficiency ratio from the prior quarter reflects an increase in net interest income, primarily from lower interest expense as a result of lower costs of deposits, and the decrease in noninterest expense. The Company remains committed to making investments in the business, including technology, marketing, and staffing. 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 $4.2 million for the fourth quarter of 2025, compared to $4.1 million for the prior quarter. The effective tax rate for the fourth quarter of 2025 was 29.8%, compared to 29.7% in the prior quarter and 29.6% in the fourth quarter of 2024. STATEMENT OF FINANCIAL CONDITION As of December 31, 2025, total assets were $2.54 billion, a decrease of $41.4 million since September 30, 2025. The decrease in assets from the prior quarter was primarily due to a $106.4 million decrease in cash and due from banks , which was primarily driven
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4 by a $44.5 million increase in loans held for investment and a $48.5 million decrease in total deposits. Investment securities available- for-sale ("AFS") were $217.8 million as of December 31, 2025, an increase of $18.0 million or 9.0% since September 30, 2025, primarily as a result of new securities purchased. As of December 31, 2025, the net unrealized loss on the AFS investment securities portfolio, which is comprised mostly of US Treasury and Government Agency debt, was $7.0 million (pre- tax) compared to a loss of $7.8 million (pre-tax) as of September 30, 2025. The average duration of the Bank’s AFS portfolio is 3.6 years. The Company has no held-to-maturity securities. Loans HFI totaled $2.13 billion as of December 31, 2025, an increase of $44.5 million since September 30, 2025 , primarily reflecting increases in commercial and industrial ("C&I") loan balances partially offset by decreases in commercial real estate ("CRE") loan balances. Total deposits were $2.22 billion as of December 31, 2025, a decrease of $48.5 million since September 30, 2025 . During the quarter, core deposits decreased by $33.4 million, driven by a $48.0 million decrease in noninterest-bearing core deposits, partially offset by a $14.6 million increase in interest-bearing core deposits (including balances in the IntraFi ICS and CDARS programs). Noninterest-bearing deposits represent 28.1% of total core deposits. Brokered deposits decreased by $15.1 million since September 30, 2025 . Uninsured deposits, net of collateralized and fiduciary deposit accounts, represent 49.4% of total deposits as of December 31, 2025. As of December 31, 2025, total available liquidity was $2.2 billion or 201.8% of uninsured deposits, net of collateralized and fiduciary deposit accounts. Total available liquidity is comprised of $362 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 December 31, 2025, the allowance for loan losses was $29.3 million or 1.38% of loans HFI, compared to $28.8 million or 1.38% of loans HFI as of September 30, 2025. The coverage ratio remained flat compared to the prior quarter, as modestly higher forecasted loss rates on commercial and industrial loans were offset by lower specific reserves for individually evaluated loans. Nonperforming assets were 2.00% of total assets as of December 31, 2025 compared to 1.79% as of September 30, 2025 . The reserve for unfunded commitments was $0.7 million as of December 31, 2025, compared to $1.0 million as of September 30, 2025. The decrease in the reserve for unfunded commitments was primarily a result of lower credit line commitment balances. Given the credit quality of the loan portfolio, management believes we are sufficiently reserved. At December 31, 2025, criticized loans totaled $73.2 million, or 3.44% of total loans, up from $70.5 million, or 3.39% of total loans at September 30, 2025, of which classified loans were $64.3 million and $61.9 million, respectively. The December 31, 2025 classified balance consisted of 46 loans: 27 real estate secured loans totaling $39.1 million and a 60.2% weighted-average LTV; and 19 commercial and industrial loans totaling $25.2 million with $2.2 million of specific reserves. As of December 31, 2025, classified loans included $42.2 million of nonaccrual loans, an increase of $4.5 million from September 30, 2025. Capital Ratios (2) The Bank’s capital ratios were in excess of the levels established for "well capitalized" institutions and are as follows: December 31, 2025 (2) September 30, 2025 CalPrivate Bank Tier I leverage ratio 10.85% 10.80% Tier I risk-based capital ratio 12.62% 12.56% Total risk-based capital ratio 13.88% 13.81% (2) December 31, 2025 capital ratios are preliminary and subject to change. Stock Repurchase Program On September 11, 2025, PBAM announced that the Board of Directors had authorized a stock repurchase program to devote up to $5 million in aggregate consideration to the repurchase of shares in privately-negotiated transactions and in the open market in accordance with Rules 10b5- 1 and 10b- 18 of the Securities and Exchange Act of 1934. On November 20, 2025, the stock repurchase program concluded with repurchases totaling 86,594 shares at an average price per share of $57.69, excluding brokerage commissions and other execution costs.
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5 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, cross border banking, 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 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 Safe Harbor Paragraph 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, especially given the current turmoil in the banking and financial markets. 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 Private Bancorp of America, Inc. operates, including competition in lending and deposit acquisition, the unpredictability of fee income from participation in SBA loan programs, the effects of bank failures, 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. 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.
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6 PRIVATE BANCORP OF AMERICA, INC. CONSOLIDATED BALANCE SHEET (Unaudited) (Dollars in thousands) Dec 31, 2025 Sep 30, 2025 Dec 31, 2024 Assets Cash and due from banks $ 11,148 $ 29,605 $ 16,528 Interest-bearing deposits in other financial institutions 13,523 16,314 10,419 Interest-bearing deposits at Federal Reserve Bank 130,344 215,448 136,929 Total cash and due from banks 155,015 261,367 163,876 Interest-bearing time deposits with other institutions 4,355 4,295 4,189 Investment debt securities available for sale 217,837 199,852 145,238 Loans held for sale 2,330 314 3,008 Loans, net of deferred fees and costs and unaccreted discounts 2,126,147 2,081,611 2,085,149 Allowance for loan losses (29,323) (28,785) (27,267) Loans held-for-investment, net of allowance 2,096,824 2,052,826 2,057,882 Federal Home Loan Bank stock, at cost 10,652 10,652 9,586 Operating lease right of use assets 6,352 6,811 6,819 Premises and equipment, net 2,783 2,252 2,335 Servicing assets, net 1,913 2,004 2,087 Accrued interest receivable 8,284 8,031 7,993 Other assets 28,712 28,077 20,998 Total assets $ 2,535,057 $ 2,576,481 $ 2,424,011 Liabilities and Shareholders' Equity Liabilities Noninterest bearing $ 606,105 $ 654,072 $ 553,405 Interest bearing 1,617,776 1,618,296 1,581,054 Total deposits 2,223,881 2,272,368 2,134,459 FHLB borrowings 11,000 11,000 28,000 Other borrowings 17,976 17,974 17,969 Accrued interest payable and other liabilities 18,236 17,185 20,049 Total liabilities 2,271,093 2,318,527 2,200,477 Shareholders' equity Common stock 76,447 76,403 75,377 Additional paid-in capital 4,914 4,479 4,393 Retained earnings 187,473 182,546 152,252 Accumulated other comprehensive (loss) income, net (4,870) (5,474) (8,488) Total shareholders' equity 263,964 257,954 223,534 Total liabilities and shareholders' equity $ 2,535,057 $ 2,576,481 $ 2,424,011
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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 Dec 31, 2025 Sep 30, 2025 Dec 31, 2024 Dec 31, 2025 Dec 31, 2024 Interest Income Loans $ 37,290 $ 36,771 $ 37,259 $ 148,630 $ 142,156 Investment securities 2,288 2,051 1,510 7,644 4,924 Deposits in other financial institutions 2,294 2,432 1,661 9,108 7,814 Total interest income 41,872 41,254 40,430 165,382 154,894 Interest Expense Deposits 10,352 11,440 12,297 45,067 50,935 Borrowings 467 482 726 2,085 3,407 Total interest expense 10,819 11,922 13,023 47,152 54,342 Net interest income 31,053 29,332 27,407 118,230 100,552 Provision for credit losses 2,558 1,792 17 5,942 2,690 Net interest income after provision for credit losses 28,495 27,540 27,390 112,288 97,862 Noninterest income: Service charges on deposit accounts 529 537 558 2,214 1,880 Net gain on sale of loans 320 1,008 932 2,320 2,861 Other noninterest income 564 627 456 2,394 1,603 Total noninterest income 1,413 2,172 1,946 6,928 6,344 Noninterest expense: Compensation and employee benefits 10,633 10,882 9,539 41,582 36,658 Occupancy and equipment 906 841 847 3,431 3,257 Data processing 1,347 1,429 1,195 5,498 4,674 Professional services 660 742 573 2,849 1,737 Other expenses 2,187 2,011 2,036 8,022 7,034 Total noninterest expense 15,733 15,905 14,190 61,382 53,360 Income before provision for income taxes 14,175 13,807 15,146 57,834 50,846 Provision for income taxes 4,221 4,106 4,488 17,168 15,024 Net income $ 9,954 $ 9,701 $ 10,658 $ 40,666 $ 35,822 Net income available to common shareholders $ 9,874 $ 9,623 $ 10,573 $ 40,334 $ 35,541 Earnings per share Basic earnings per share $ 1.73 $ 1.67 $ 1.85 $ 7.03 $ 6.24 Diluted earnings per share $ 1.71 $ 1.65 $ 1.82 $ 6.92 $ 6.15 Average shares outstanding 5,701,291 5,757,192 5,716,291 5,737,682 5,698,207 Diluted average shares outstanding 5,785,991 5,837,837 5,813,197 5,825,268 5,782,385
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8 PRIVATE BANCORP OF AMERICA, INC. Consolidated average balance sheet, interest, yield and rates (Unaudited) (Dollars in thousands) For the three months ended Dec 31, 2025 Sep 30, 2025 Dec 31, 2024 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 $ 223,338 $ 2,294 4.08% $ 210,669 $ 2,432 4.58% $ 143,053 $ 1,661 4.62% Investment securities 220,553 2,288 4.15% 203,167 2,051 4.04% 155,768 1,510 3.88% Loans, including LHFS 2,101,190 37,290 7.04% 2,091,309 36,771 6.98% 2,036,178 37,259 7.28% Total interest-earning assets 2,545,081 41,872 6.53% 2,505,145 41,254 6.53% 2,334,999 40,430 6.89% Noninterest-earning assets 44,425 45,419 24,951 Total Assets $ 2,589,506 $ 2,550,564 $ 2,359,950 Interest-Bearing Liabilities Interest bearing DDA, excluding brokered 296,103 778 1.04% 262,730 878 1.33% 178,811 634 1.41% Savings & MMA, excluding brokered 1,014,162 6,605 2.58% 1,031,209 7,456 2.87% 904,191 6,991 3.08% Time deposits, excluding brokered 234,315 2,137 3.62% 233,094 2,185 3.72% 191,794 2,004 4.16% Total deposits, excluding brokered 1,544,580 9,520 2.45% 1,527,033 10,519 2.73% 1,274,796 9,629 3.00% Total brokered deposits 75,790 832 4.36% 84,841 921 4.31% 218,792 2,668 4.85% Total Interest-Bearing Deposits 1,620,370 10,352 2.53% 1,611,874 11,440 2.82% 1,493,588 12,297 3.28% FHLB advances 11,008 121 4.36% 11,000 120 4.33% 29,446 343 4.63% Other borrowings 17,975 346 7.64% 17,973 362 7.99% 17,967 383 8.48% Total Interest-Bearing Liabilities 1,649,353 10,819 2.60% 1,640,847 11,922 2.88% 1,541,001 13,023 3.36% Noninterest-bearing deposits 659,365 638,306 577,462 Total Funding Sources 2,308,718 10,819 1.86% 2,279,153 11,922 2.08% 2,118,463 13,023 2.45% Noninterest-bearing liabilities 19,444 17,582 21,524 Shareholders' equity 261,344 253,829 219,963 Total Liabilities and Shareholders' Equity $ 2,589,506 $ 2,550,564 $ 2,359,950 Net interest income/spread $ 31,053 4.67% $ 29,332 4.45% $ 27,407 4.44% Net interest margin 4.84% 4.65% 4.67%
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9 PRIVATE BANCORP OF AMERICA, INC. Consolidated average balance sheet, interest, yield and rates (Unaudited) (Dollars in thousands) Year to Date Dec 31, 2025 Dec 31, 2024 Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate Interest-Earnings Assets: Deposits in other financial institutions $ 207,220 $ 9,108 4.40% $ 150,654 $ 7,814 5.19% Investment securities 191,265 7,644 3.99% 135,519 4,924 3.62% Loans 2,085,204 148,630 7.13% 1,958,793 142,156 7.26% Total interest-earning assets 2,483,689 165,382 6.66% 2,244,966 154,894 6.90% Noninterest-earning assets 40,474 25,240 Total Assets $ 2,524,163 $ 2,270,206 Interest-Bearing Liabilities Interest bearing DDA, excluding brokered 261,661 3,440 1.31% 142,543 2,154 1.51% Savings & MMA, excluding brokered 1,001,107 28,021 2.80% 852,130 28,513 3.35% Time deposits, excluding brokered 220,809 8,375 3.79% 171,048 7,134 4.17% Total deposits, excluding brokered 1,483,577 39,836 2.69% 1,165,721 37,801 3.24% Total brokered deposits 115,776 5,231 4.52% 262,266 13,134 5.01% Total Interest-Bearing Deposits 1,599,353 45,067 2.82% 1,427,987 50,935 3.57% FHLB advances 14,703 652 4.43% 40,680 1,975 4.85% Other borrowings 17,975 1,433 7.97% 17,966 1,432 7.97% Total Interest-Bearing Liabilities 1,632,031 47,152 2.89% 1,486,633 54,342 3.66% Noninterest-bearing deposits 625,673 560,422 Total Funding Sources 2,257,704 47,152 2.09% 2,047,055 54,342 2.65% Noninterest-bearing liabilities 19,321 18,531 Shareholders' equity 247,138 204,620 Total Liabilities and Shareholders' Equity $ 2,524,163 $ 2,270,206 Net interest income/spread $ 118,230 4.57% $ 100,552 4.25% Net interest margin 4.76% 4.48%
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10 PRIVATE BANCORP OF AMERICA, INC. Condensed Balance Sheets (Unaudited) (Dollars in thousands, except per share amounts) Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Assets Cash and due from banks $ 155,015 $ 261,367 $ 140,619 $ 218,481 $ 163,876 Interest-bearing time deposits with other institutions 4,355 4,295 4,270 4,213 4,189 Investment securities 217,837 199,852 188,821 156,346 145,238 Loans held for sale 2,330 314 8,826 2,066 3,008 Total loans held-for-investment 2,126,147 2,081,611 2,081,063 2,078,653 2,085,149 Allowance for loan losses (29,323) (28,785) (28,178) (26,437) (27,267) Loans held-for-investment, net of allowance 2,096,824 2,052,826 2,052,885 2,052,216 2,057,882 Operating lease right of use assets 6,352 6,811 7,254 6,383 6,819 Premises and equipment, net 2,783 2,252 2,213 2,432 2,335 Other assets and interest receivable 49,561 48,764 49,992 40,736 40,664 Total assets $ 2,535,057 $ 2,576,481 $ 2,454,880 $ 2,482,873 $ 2,424,011 Liabilities and Shareholders' Equity Liabilities Noninterest Bearing $ 606,105 $ 654,072 $ 601,473 $ 599,095 $ 553,405 Interest Bearing 1,617,776 1,618,296 1,561,407 1,593,014 1,581,054 Total Deposits 2,223,881 2,272,368 2,162,880 2,192,109 2,134,459 Borrowings 28,976 28,974 28,972 33,970 45,969 Accrued interest payable and other liabilities 18,236 17,185 16,089 21,559 20,049 Total liabilities 2,271,093 2,318,527 2,207,941 2,247,638 2,200,477 Shareholders' equity Common stock 76,447 76,403 76,398 76,156 75,377 Additional paid-in capital 4,914 4,479 4,009 3,712 4,393 Retained earnings 187,473 182,546 172,849 162,462 152,252 Accumulated other comprehensive (loss) income (4,870) (5,474) (6,317) (7,095) (8,488) Total shareholders' equity 263,964 257,954 246,939 235,235 223,534 Total liabilities and shareholders' equity $ 2,535,057 $ 2,576,481 $ 2,454,880 $ 2,482,873 $ 2,424,011 Book value per common share $ 46.08 $ 44.45 $ 42.54 $ 40.63 $ 38.76 Tangible book value per common share (1) $ 45.75 $ 44.11 $ 42.20 $ 40.29 $ 38.40 Shares outstanding 5,728,187 5,803,016 5,805,286 5,789,306 5,766,810 (1) Non-GAAP measure. See GAAP to non-GAAP Reconciliation table.
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11 PRIVATE BANCORP OF AMERICA, INC. Condensed Statements of Income (Unaudited) (Dollars in thousands, except per share amounts) For the three months ended Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Interest income $ 41,872 $ 41,254 $ 41,988 $ 40,268 $ 40,430 Interest expense 10,819 11,922 11,875 12,536 13,023 Net interest income 31,053 29,332 30,113 27,732 27,407 Provision for credit losses 2,558 1,792 1,293 299 17 Net interest income after provision for credit losses 28,495 27,540 28,820 27,433 27,390 Service charges on deposit accounts 529 537 591 557 558 Net gain on sale of loans 320 1,008 523 469 932 Other noninterest income 564 627 616 587 456 Total noninterest income 1,413 2,172 1,730 1,613 1,946 Compensation and employee benefits 10,633 10,882 10,319 9,748 9,539 Occupancy and equipment 906 841 840 844 847 Data processing 1,347 1,429 1,396 1,326 1,195 Professional services 660 742 939 508 573 Other expenses 2,187 2,011 2,195 1,629 2,036 Total noninterest expense 15,733 15,905 15,689 14,055 14,190 Income before provision for income taxes 14,175 13,807 14,861 14,991 15,146 Income taxes 4,221 4,106 4,412 4,429 4,488 Net income $ 9,954 $ 9,701 $ 10,449 $ 10,562 $ 10,658 Net income available to common shareholders $ 9,874 $ 9,623 $ 10,361 $ 10,482 $ 10,573 Earnings per share Basic earnings per share $ 1.73 $ 1.67 $ 1.80 $ 1.83 $ 1.85 Diluted earnings per share $ 1.71 $ 1.65 $ 1.77 $ 1.80 $ 1.82 Average shares outstanding 5,701,291 5,757,192 5,754,872 5,734,688 5,716,291 Diluted average shares outstanding 5,785,991 5,837,837 5,837,537 5,826,229 5,813,197 Performance Ratios Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 ROAA 1.53% 1.51% 1.69% 1.74% 1.80% ROAE 15.11% 15.16% 17.30% 18.56% 19.28% ROATCE (1) 15.22% 15.28% 17.44% 18.74% 19.46% Net interest margin 4.84% 4.65% 4.94% 4.61% 4.67% Net interest spread 4.67% 4.45% 4.75% 4.41% 4.44% Efficiency ratio (1) 48.46% 50.49% 49.27% 47.90% 48.34% Noninterest expense / average assets 2.41% 2.47% 2.53% 2.31% 2.39% (1) Non-GAAP measure. See GAAP to non-GAAP Reconciliation table.
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12 PRIVATE BANCORP OF AMERICA, INC. (Unaudited) Selected Quarterly Average Balances (Dollars in thousands) For the three months ended Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Total assets $ 2,589,506 $ 2,550,564 $ 2,487,224 $ 2,467,778 $ 2,359,950 Earning assets $ 2,545,081 $ 2,505,145 $ 2,443,888 $ 2,439,242 $ 2,334,999 Total loans, including loans held for sale $ 2,101,190 $ 2,091,309 $ 2,069,415 $ 2,078,588 $ 2,036,178 Total deposits $ 2,279,735 $ 2,250,180 $ 2,195,344 $ 2,173,402 $ 2,071,050 Total shareholders' equity $ 261,344 $ 253,829 $ 242,235 $ 230,731 $ 219,963 Loan Balances by Type (Dollars in thousands) Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Commercial Real Estate (CRE): Investor owned $ 577,730 $ 595,834 $ 604,073 $ 577,512 $ 572,659 Owner occupied 236,623 226,919 223,558 228,232 223,442 Multifamily 155,941 145,496 160,902 163,218 162,330 Secured by single family 198,743 210,785 197,100 200,650 198,579 Land and construction 47,029 53,976 51,669 70,293 62,638 SBA secured by real estate 403,609 402,659 407,148 402,524 401,990 Total CRE 1,619,675 1,635,669 1,644,450 1,642,429 1,621,638 Commercial business: Commercial and industrial 471,526 415,041 404,489 417,258 441,182 SBA non-real estate secured 32,853 28,982 30,183 17,004 20,205 Total commercial business 504,379 444,023 434,672 434,262 461,387 Consumer 2,093 1,919 1,941 1,962 2,124 Total loans held for investment $ 2,126,147 $ 2,081,611 $ 2,081,063 $ 2,078,653 $ 2,085,149 Deposits by Type (Dollars in thousands) Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Noninterest-bearing DDA $ 606,105 $ 654,072 $ 601,473 $ 599,095 $ 553,405 Interest-bearing DDA, excluding brokered 309,013 268,210 251,701 257,720 251,594 Savings & MMA, excluding brokered 1,024,829 1,038,035 990,798 981,491 887,740 Time deposits, excluding brokered 218,871 231,886 227,129 210,845 201,851 Total deposits, excluding brokered 2,158,818 2,192,203 2,071,101 2,049,151 1,894,590 Total brokered deposits 65,063 80,165 91,779 142,958 239,869 Total deposits $ 2,223,881 $ 2,272,368 $ 2,162,880 $ 2,192,109 $ 2,134,459
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13 PRIVATE BANCORP OF AMERICA, INC. (Unaudited) Rollforward of Allowance for Credit Losses (Dollars in thousands) For the three months ended Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Allowance for loan losses: Beginning balance $ 28,785 $ 28,178 $ 26,437 $ 27,267 $ 26,594 Provision for loan losses 2,898 1,666 1,741 460 673 Net (charge-offs) recoveries (2,360) (1,059) - (1,290) - Ending balance 29,323 28,785 28,178 26,437 27,267 Reserve for unfunded commitments 684 1,024 899 1,348 1,509 Total allowance for credit losses $ 30,007 $ 29,809 $ 29,077 $ 27,785 $ 28,776 Asset Quality (Dollars in thousands) Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Total loans held-for-investment $ 2,126,14 7 $ 2,081,61 1 $ 2,081,06 3 $ 2,078,65 3 $ 2,085,14 9 Allowance for loan losses $ (29,323) $ (28,785) $ (28,178) $ (26,437) $ (27,267) 30-89 day past due loans $ 9,136 $ 7,350 $ 4,842 $ 2,399 $ 1,952 90+ day past due loans $ 19,485 $ 10,314 $ 2,850 $ 13,223 $ 11,512 Nonaccrual loans $ 42,164 $ 37,660 $ 7,716 $ 15,565 $ 11,512 Other real estate owned (OREO) $ 8,568 $ 8,568 $ 8,568 $ - $ - NPAs / Total assets 2.00% 1.79% 0.66% 0.63% 0.47% NPLs / Total loans held-for-investment 1.98% 1.81% 0.37% 0.75% 0.55% Net quarterly charge-offs (recoveries) $ 2,360 $ 1,059 $ - $ 1,290 $ - Net charge-offs (recoveries) /avg loans (annualized) 0.45% 0.20% 0.00% 0.25% 0.00% Allowance for loan losses to loans HFI 1.38% 1.38% 1.35% 1.27% 1.31% Allowance for loan losses to nonaccrual loans 69.55% 76.43% 365.19% 169.85% 236.86%
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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, 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 of the GAAP measures. GAAP to Non-GAAP Reconciliation (Dollars in thousands) For the three months ended Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Efficiency Ratio Noninterest expense $ 15,733 $ 15,905 $ 15,689 $ 14,055 $ 14,190 Net interest income 31,053 29,332 30,113 27,732 27,407 Noninterest income 1,413 2,172 1,730 1,613 1,946 Total net interest income and noninterest income 32,466 31,504 31,843 29,345 29,353 Efficiency ratio (non-GAAP) 48.46% 50.49% 49.27% 47.90% 48.34% Pretax pre-provision net revenue Net interest income $ 31,053 $ 29,332 $ 30,113 $ 27,732 $ 27,407 Noninterest income 1,413 2,172 1,730 1,613 1,946 Total net interest income and noninterest income 32,466 31,504 31,843 29,345 29,353 Less: Noninterest expense 15,733 15,905 15,689 14,055 14,190 Pretax pre-provision net revenue (non-GAAP) $ 16,733 $ 15,599 $ 16,154 $ 15,290 $ 15,163 Return and Adjusted Return on Average Assets, Average Equity, Average Tangible Equity Net income $ 9,954 $ 9,701 $ 10,449 $ 10,562 $ 10,658 Average assets 2,589,506 2,550,564 2,487,224 2,467,778 2,359,950 Average shareholders' equity 261,344 253,829 242,235 230,731 219,963 Less: Average intangible assets 1,913 2,025 1,953 2,098 2,028 Average tangible common equity (non-GAAP) 259,431 251,804 240,282 228,633 217,935 Return on average assets 1.53% 1.51% 1.69% 1.74% 1.80% Return on average equity 15.11% 15.16% 17.30% 18.56% 19.28% Return on average tangible common equity (non-GAAP) 15.22% 15.28% 17.44% 18.74% 19.46% Tangible book value per share Total equity 263,964 257,954 246,939 235,235 223,534 Less: Total intangible assets 1,913 2,004 1,964 1,993 2,087 Total tangible equity 262,051 255,950 244,975 233,242 221,447 Shares outstanding 5,728,187 5,803,016 5,805,286 5,789,306 5,766,810 Tangible book value per share (non-GAAP) $ 45.75 $ 44.11 $ 42.20 $ 40.29 $ 38.40
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15 PRIVATE BANCORP OF AMERICA, INC. (Unaudited) The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: efficiency ratio, adjusted efficiency ratio, pretax pre-provision net revenue, average tangible common equity, adjusted return on average assets, return on average tangible common equity and adjusted 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 of the GAAP measures. GAAP to Non-GAAP Reconciliation (Dollars in thousands) Year to Date Dec 31, 2025 Dec 31, 2024 Efficiency Ratio Noninterest expense $ 61,382 $ 53,360 Net interest income 118,230 100,552 Noninterest income 6,928 6,344 Total net interest income and noninterest income 125,158 106,896 Efficiency ratio (non-GAAP) 49.04% 49.92% Pretax pre-provision net revenue Net interest income $ 118,230 $ 100,552 Noninterest income 6,928 6,344 Total net interest income and noninterest income 125,158 106,896 Less: Noninterest expense 61,382 53,360 Pretax pre-provision net revenue (non-GAAP) $ 63,776 $ 53,536 Return and Adjusted Return on Average Assets, Average Equity, Average Tangible Equity Net income $ 40,666 $ 35,822 Average assets 2,524,163 2,270,206 Average shareholders' equity 247,138 204,620 Less: Average intangible assets 1,997 2,185 Average tangible common equity (non-GAAP) 245,141 202,435 Return on average assets 1.61% 1.58% Return on average equity 16.45% 17.51% Return on average tangible common equity (non-GAAP) 16.59% 17.70%