First Quarter 2026 Highlights

   -- Net income for the first quarter of 2026 was $12.0 million, compared to 
      $10.0 million in the prior quarter and $10.6 million in the first quarter 
      of 2025. 
 
   -- Net income for the first quarter of 2026 represents a return on average 
      assets of 1.88% and a return on average tangible common equity(1) of 
      18.07%. 
 
   -- Diluted earnings per share for the first quarter of 2026 was $2.07, 
      compared to $1.71 in the prior quarter and $1.80 in the first quarter of 
      2025. 
 
   -- Core deposits were $2.33 billion as of March 31, 2026, an increase of 
      $166.3 million or 7.7% from December 31, 2025, and an increase of $276.0 
      million or 13.5% from March 31, 2025. 
 
   -- Total deposits were $2.37 billion as of March 31, 2026, an increase of 
      $150.8 million or 6.8% from December 31, 2025, which included a reduction 
      in brokered deposits of $15.5 million. 
 
   -- Total cost of deposits was 1.67% for the first quarter of 2026, a 
      decrease from 1.80% in the prior quarter and 2.22% in the first quarter 
      of 2025, an improvement of 7.3% quarter over quarter and 24.8% year over 
      year. The spot rate for total deposits was 1.55% as of March 31, 2026, 
      compared to 1.71% at December 31, 2025. Total cost of funding sources was 
      1.73% for the first quarter of 2026, a decrease from 1.86% in the prior 
      quarter and 2.29% in the first quarter of 2025. 
 
   -- Loans held-for-investment (HFI) totaled $2.14 billion as of March 31, 
      2026, an increase of $14.8 million or 0.7% from December 31, 2025. 
 
   -- Investment securities available-for-sale (AFS) were $220.9 million as of 
      March 31, 2026, an increase of $3.1 million or 1.41% since December 31, 
      2025, and an increase of $64.6 million or 41.3% from March 31, 2025, 
      primarily as a result of new securities purchased. 
 
   -- Net interest margin was 5.21% for the first quarter of 2026, compared to 
      4.84% in the prior quarter and 4.61% in the first quarter of 2025. 
 
   -- Provision for credit losses for the first quarter of 2026 was $2.0 
      million, compared to $2.6 million for the prior quarter and $299 thousand 
      for the first quarter of 2025. The allowance for loan losses was 1.41% of 
      loans HFI as of March 31, 2026 compared to 1.38% at December 31, 2025. 
 
   -- As of March 31, 2026, criticized loans totaled $68.2 million, or 3.19% of 
      total loans, down from $73.2 million, or 3.44% of total loans at December 
      31, 2025. 
 
   -- Tangible book value per share(1) was $47.38 as of March 31, 2026, an 
      increase of $1.63 since December 31, 2025 primarily as a result of strong 
      earnings. 

(1) A non-GAAP financial measure. A reconciliation of non-GAAP financial measures to GAAP financial measures can be found on page 13.

LA JOLLA, Calif., April 17, 2026 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX: PBAM), ("Company") and CalPrivate Bank ("Bank") announced unaudited financial results for the first fiscal quarter ended March 31, 2026. The Company reported net income of $12.0 million, or $2.07 per diluted share, for the first quarter of 2026, compared to $10.0 million, or $1.71 per diluted share, in the prior quarter, and $10.6 million, or $1.80 per diluted share, in the first quarter of 2025.

Rick Sowers, President and CEO of the Company and the Bank stated, "The first quarter showed seasonally strong core deposit growth as a result of onboarding new profitable Client Relationships which continues to be our primary objective. This growth is supported by an outstanding Team of professionals who provide our Clients with exceptional service. Our net income, return on assets, return on equity and SBA gain on sale were up over the prior quarter as we focused on expense management amid tepid loan growth and an increasingly competitive credit market. Our discipline on pricing both in lending and deposits resulted in core NIM expansion."

Sowers added, "We are pleased to see credit metrics improving over the prior quarter. As previously discussed we have reviewed a significant portion of the credit portfolio in conjunction with a change in our credit leadership in 2025 and are laser focused on reducing criticized, classified and non-performing assets. We believe reserves are adequate and continue to take a disciplined approach to underwriting, portfolio management and loan grading."

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 
 
   -- Top 10 for both Return on Assets (ROA) and Return on Equity $(ROE)$ among 
      banks with less than $5 billion in assets in 2025 
 
   -- #1 SBA 504 Community Bank Lender in the United States 
 
   -- Client Net Promoter Score of 81 (World Class) 
 
   -- Bauer 5 Star Rating 
 
   -- 2025 Best 50 OTCQX 

"We continued to build PBAM's franchise value through another strong earnings quarter, driven by exceptional deposit growth and net interest margin performance, resulting in superior returns on assets and tangible book value accretion," said Selwyn Isakow, Chairman of the Board of the Company and the Bank. "Through disciplined risk management and a clear focus on our mission, management has successfully navigated an uncertain economic and geopolitical environment, as well as an increasingly complex and competitive financial services landscape. Our continued investments in technology and talent have further strengthened our position as coastal Southern California's premier relationship-focused bank serving private and closely held businesses. We remain firmly on our growth trajectory by delivering superior service and tailored financial solutions, earning the trust of our clients, reflected in the fact that the majority of our new business continues to come from referrals."

STATEMENT OF INCOME

Net Interest Income

Net interest income for the first quarter of 2026 totaled $32.6 million, an increase of $1.6 million or 5.0% from the prior quarter and an increase of $4.9 million or 17.6% from the first quarter of 2025. The increase from the prior quarter was due to a $0.5 million increase in interest income and a $1.0 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 $(NIM)$ for the first quarter of 2026 was 5.21%, compared to 4.84% for the prior quarter and 4.61% in the first quarter of 2025. The increase of 37 basis points (bps) in the NIM from the prior quarter was primarily driven by nonaccrual interest adjustments (+13 bps), higher prepayment penalties (+7 bps), and a special FHLB stock dividend (+5 bps). In addition, the NIM increased due to lower cost of deposits, which decreased 13 basis points as a result of proactive management of deposit pricing. The yield on interest-earning assets was 6.77% for the first quarter of 2026 compared to 6.53% for the prior quarter, and the cost of interest-bearing liabilities was 2.39% for the first quarter of 2026 compared to 2.60% in the prior quarter. The cost of total deposits was 1.67% for the first quarter of 2026 compared to 1.80% in the prior quarter. The cost of core deposits, which excludes brokered deposits, was 1.60% in the first quarter of 2026 compared to 1.71% in the prior quarter and 1.99% for the first quarter of 2025. The spot rate for total deposits was 1.55% as of March 31, 2026, compared to 1.71% at December 31, 2025.

Provision for Credit Losses

Provision expense for credit losses for the first quarter of 2026 was $2.0 million, compared to $2.6 million in the prior quarter and $299 thousand in the first quarter of 2025. The provision expense for loans HFI for the first quarter of 2026 was $2.0 million, primarily reflecting $1.1 million of net charge offs, higher levels of past due loans, loan growth and increased weighting toward the downside economic scenario used in the Company's current expected credit losses (CECL) model. These factors were partially offset by lower reserves for individually evaluated loans, primarily driven by loan paydowns. For more details, please refer to the "Asset Quality" section below.

Noninterest Income

Noninterest income was $1.9 million for the first quarter of 2026, compared to $1.4 million in the prior quarter and $1.6 million in the first quarter of 2025. U.S. Small Business Administration (SBA) loan sales for the first quarter of 2026 were $16.2 million with a 10.31% average trade premium resulting in a net gain on sale of $0.9 million, compared with sales of $5.6 million with a 10.56% average trade premium resulting in a net gain on sale of $0.3 million in the prior quarter. SBA loan gain on sale was muted in the fourth quarter due to the U.S. government shutdown, which delayed loan closings and shifted sales volume into the first quarter of 2026.

Noninterest Expense

Noninterest expense was $15.7 million for the first quarter of 2026, compared to $15.7 million in the prior quarter and $14.1 million in the first quarter of 2025. The efficiency ratio(1) was 45.39% for the first quarter of 2026, compared to 48.46% in the prior quarter and 47.90% in the first quarter of 2025. The decrease in the efficiency ratio from the prior quarter primarily reflects the increases in net interest income and noninterest income described above, while noninterest expense remained relatively flat.

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