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®
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™ 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 10th best bank in the country and the #1 bank in its asset class for both return on assets (ROA) and return on equity (ROE). CalPrivate Bank was also ranked in the top 5% of banks in the U.S. with assets between $2B and $10B by American Banker. Additionally, CalPrivate Bank is a Bauer Financial 5-star rated bank, an SBA Preferred Lender, and has been honored as Community Bank 504 Lender of the Year by the NADCO Community Impact Awards, exemplifying excellence in the banking industry. These prestigious rankings highlight the Bank's commitment to delivering exceptional banking services and setting new industry standards.
CalPrivate Bank's website is 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 SowersPresident and Chief Executive OfficerPrivate Bancorp of America, Inc., and CalPrivate Bank(424) 303-4894
Cory StewartExecutive Vice President and Chief Financial OfficerPrivate 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, 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
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
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
AverageBalance
Interest
AverageYield/Rate
AverageBalance
Interest
AverageYield/Rate
AverageBalance
Interest
AverageYield/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
