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 in 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.
-- 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., Jan. 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 $5 billion in assets in 2024
-- #1 SBA 504 Community Bank Lender in the United States
-- #10 Best U.S. Bank by Bank Director's RankingBanking$(R)$
-- 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."
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 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 $57.69, excluding brokerage commissions and other execution costs.
About Private Bancorp of America, Inc. (OTCQX: PBAM)
PBAM is the holding company for CalPrivate Bank, which operates offices in Coronado, San Diego, La Jolla, Newport Beach, El Segundo, Beverly Hills, and Montecito, as well as through efficient digital banking services. CalPrivate Bank is driven by its core values of building client Relationships based on superior funding Solutions, unparalleled Service, and mutual Trust. The Bank caters to high-net-worth individuals, professionals, closely held businesses, and real estate entrepreneurs, delivering a Distinctly Different$(TM)$ 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(R) 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.
PRIVATE BANCORP OF AMERICA, INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
(Dollars in thousands)
Dec 31, Sep 30,
2025 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
========= ========= =========
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, Sep 30, Dec 31, Dec 31,
2025 2025 2024 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
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 Average Average Average Average Average
Balance Interest Yield/Rate Balance Interest Yield/Rate Balance Interest 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%
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 Average Average Average
Balance Interest Yield/Rate Balance Interest 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%
PRIVATE BANCORP OF AMERICA, INC.
Condensed Balance Sheets
(Unaudited)
(Dollars in thousands, except per share amounts)
Dec 31, Sep 30, Jun 30, Mar 31,
2025 2025 2025 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.
PRIVATE BANCORP OF AMERICA, INC.
Condensed Statements of Income
(Unaudited)
(Dollars in thousands, except per share amounts)
For the three months ended
------------------------------------------------------------
Dec 31, Sep 30, Jun 30, Mar 31,
2025 2025 2025 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, Sep 30, Jun 30, Mar 31, Dec 31,
2025 2025 2025 2025 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.
PRIVATE BANCORP OF AMERICA, INC.
(Unaudited)
Selected Quarterly Average Balances
(Dollars in thousands)
For the three months ended
------------------------------------------------------------
Dec 31, Sep 30, Jun 30, Mar 31,
2025 2025 2025 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, Sep 30, Jun 30, Mar 31,
2025 2025 2025 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, Sep 30, Jun 30, Mar 31,
2025 2025 2025 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
========= ========= ========= ========= =========
PRIVATE BANCORP OF AMERICA, INC.
(Unaudited)
Rollforward of Allowance for Credit Losses
(Dollars in thousands)
For the three months ended
------------------------------------------------
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,
2025 2025 2025 2025 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 $2,126,147 $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)
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%
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
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%
(END) Dow Jones Newswires
January 16, 2026 08:01 ET (13:01 GMT)