Third Quarter 2025 Highlights

   -- Net income for the third quarter of 2025 was $9.7 million, compared to 
      $10.4 million in the prior quarter and $9.5 million in the third quarter 
      of 2024. Net income increased 2.6% year over year. Results for the third 
      quarter of 2025 reflect the reversal of $1.3 million of interest income 
      and a $1.0 million increase in reserves for loans placed on nonaccrual 
      during the quarter. 
 
   -- Net income for the third quarter of 2025 represents a return on average 
      assets of 1.51% and a return on average tangible common equity of 15.28% 
 
   -- Diluted earnings per share for the third quarter of 2025 was $1.65, 
      compared to $1.77 in the prior quarter and $1.63 in the third quarter of 
      2024 
 
   -- Core deposits were $2.19 billion as of September 30, 2025, an increase of 
      $121.1 million or 5.8% from June 30, 2025. Year over year, core deposits 
      increased $318.8 million or 17.0% and brokered deposits decreased $153.6 
      million or 65.7%. Total deposits were $2.27 billion as of September 30, 
      2025, an increase of $109.5 million or 5.1% from June 30, 2025, which 
      included a reduction in brokered deposits of $11.6 million. 
 
   -- Total cost of deposits was 2.02% for the third quarter of 2025, a 
      decrease from 2.08% in the prior quarter and 2.62% in the third quarter 
      of 2024, an improvement of 3.0% quarter over quarter and 22.9% year over 
      year. The spot rate for total deposits was 1.91% as of September 30, 
      2025, compared to 2.04% at June 30, 2025. Total cost of funding sources 
      was 2.08% for the third quarter of 2025, a decrease from 2.14% in the 
      prior quarter and 2.71% in the third quarter of 2024 
 
   -- Loans held-for-investment ("HFI") totaled $2.08 billion as of 
      September 30, 2025, an increase of $0.5 million or 0.0% from June 30, 
      2025. Loans HFI increased 3.4% year over year 
 
   -- Investment securities available-for-sale ("AFS") were $199.9 million as 
      of September 30, 2025, an increase of $11.0 million or 5.84% since June 
      30, 2025, and an increase of $58.8 million or 41.64% year over year, 
      primarily as a result of new securities purchased. 
 
   -- Net interest margin was 4.65% for the third quarter of 2025, compared to 
      4.94% in the prior quarter and 4.44% in the third quarter of 2024 
 
   -- Provision for credit losses for the third quarter of 2025 was $1.8 
      million, compared to $1.3 million for the prior quarter and $0.3 million 
      for the third quarter of 2024. The allowance for loan losses was 1.38% of 
      loans HFI as of September 30, 2025 compared to 1.35% at June 30, 2025 
 
   -- As of September 30, 2025, criticized loans totaled $70.5 million, or 
      3.39% of total loans, up from $58.2 million, or 2.79% of total loans at 
      June 30, 2025 
 
   -- Tangible book value per share was $44.11 as of September 30, 2025, an 
      increase of $1.91 since June 30, 2025 primarily as a result of strong 
      earnings. Tangible book value per share increased 4.5% 
      quarter-over-quarter and 19.6% year over year. 

LA JOLLA, Calif., Oct. 17, 2025 (GLOBE NEWSWIRE) -- Private Bancorp of America, Inc. (OTCQX: PBAM), ("Company") and CalPrivate Bank ("Bank") announced unaudited financial results for the third fiscal quarter ended September 30, 2025. The Company reported net income of $9.7 million, or $1.65 per diluted share, for the third quarter of 2025, compared to $10.4 million, or $1.77 per diluted share, in the prior quarter, and $9.5 million, or $1.63 per diluted share, in the third quarter of 2024.

Rick Sowers, President and CEO of the Company and the Bank stated, "Management and the Board continue to be focused on the basics -- building and expanding quality Relationships in the communities we serve. This is demonstrated by the improvement in our core deposit franchise and our consistent, strong earnings profile. Although 2025 continues to be a slow year for loan growth due to suppressed demand, what we view as continued unreasonable market pricing, and increased non-bank competition, we are adding new Relationships across our footprint by delivering our Clients customized Solutions that meet their individual needs. Pipelines are strong going into the fourth quarter across our markets, which is encouraging. We believe that focusing on the fundamentals and having a disciplined approach to lending and balance sheet management have served us well and we are not deviating from that strategy."

Sowers added, "We are excited to open our Montecito Branch this quarter and welcoming Clients into our office in the Upper Village. Led by longtime Santa Barbara banking executive George Leis, we are hitting the ground running and looking forward to gaining market share in this important expansion for CalPrivate Bank."

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 continues to outperform peers and build tangible book value for shareholders at an attractive rate," said Selwyn Isakow, Chairman of the Board of the Company and the Bank. "While economic and geopolitical uncertainty continue to temper business investment and industry loan demand, management's disciplined execution of our strategy - to be the finest relationship bank in coastal Southern California - continues to deliver results. Through our Distinctly Different$(TM)$ service and superior client solutions, core deposit growth from our valued clients remains exceptional, strengthening franchise value and earnings. Our client relationships are defined by the mutual trust we build, the friendships formed, and the shared success that connects us. Behind every committed client relationship is a dedicated team of professionals across operations, compliance, technology, and support, whose quiet excellence and collegial spirit make our service promise possible each day. They are the foundation of our culture and the reason CalPrivate feels so different from any other bank."

STATEMENT OF INCOME

Net Interest Income

Net interest income for the third quarter of 2025 totaled $29.3 million, a decrease of $0.8 million or 2.6% from the prior quarter and an increase of $3.6 million or 14.1% from the third quarter of 2024. The decrease from the prior quarter was due to a $0.7 million decrease in interest income, including a $1.3 million reversal of interest income for loans placed on nonaccrual during the quarter.

Net Interest Margin

Net interest margin for the third quarter of 2025 was 4.65%, compared to 4.94% for the prior quarter and 4.44% in the third quarter of 2024. The 29 basis point decrease in net interest margin from the prior quarter was primarily due to a lower average yield on loans, which included a 21 basis point decrease in the net interest margin due to a reversal of interest income for loans placed on nonaccrual during the quarter. The yield on interest-earning assets was 6.53% for the third quarter of 2025 compared to 6.89% for the prior quarter, and the cost of interest-bearing liabilities was 2.88% for the third quarter of 2025 compared to 2.95% in the prior quarter. The cost of total deposits was 2.02% for the third quarter of 2025 compared to 2.08% in the prior quarter. The cost of core deposits, which excludes brokered deposits, was 1.93% in the third quarter of 2025 compared to 1.94% in the prior quarter and 2.27% for the third quarter of 2024. The spot rate for total deposits was 1.91% as of September 30, 2025, compared to 2.04% at June 30, 2025.

Provision for Credit Losses

Provision expense for credit losses for the third quarter of 2025 was $1.8 million, compared to $1.3 million in the prior quarter and $0.3 million in the third quarter of 2024. The provision expense for loans HFI for the third quarter of 2025 was $1.7 million, primarily reflecting a $1.0 million increase in reserves for loans placed on nonaccrual during the quarter. In addition, there was a $0.1 million provision for unfunded commitments that was primarily driven by growth in total 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 $2.2 million for the third quarter of 2025, compared to $1.7 million in the prior quarter and $1.4 million in the third quarter of 2024. U.S. Small Business Administration ("SBA") loan sales for the third quarter of 2025 were $17.3 million with a 9.46% average trade premium resulting in a net gain on sale of $1.0 million, compared with $9.5 million with a 10.01% average trade premium resulting in a net gain on sale of $523 thousand in the prior quarter.

Noninterest Expense

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October 17, 2025 08:05 ET (12:05 GMT)