Private Bancorp of America, Inc. Announces Strong Net Income for Third Quarter 2026
Private Bancorp of America, Inc. (PBAM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 FOR IMMEDIATE RELEASE Private Bancorp of America, Inc. Announces Strong Net Income for Third Quarter 2026 Third Quarter 2026 Highlights • Net income for the third quarter of 2026 was $11.4 million, compared to $13.1 million in the prior quarter and $9.7 million in th
How this was made
The 30-second read
Why it matters
The earnings release confirms the bank’s profitability post‑uplisting and may influence its weighting in index reconstitutions.
Market read
First‑report earnings for a newly listed micro‑cap bank; modest impact expected.
What to watch
Potential upside from inclusion in the Russell 2000 and increased liquidity after the NASDAQ uplisting.
Private Bancorp of America, Inc. Announces Strong Net Income for Third Quarter 2026
Net income and diluted earnings per share increased from the third quarter of 2025, while both declined from the prior quarter as provision expense and noninterest expense increased. Loan and core-deposit growth remained positive, but criticized loans, nonaccrual loans, nonperforming assets and unrealized losses on available-for-sale securities increased.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net interest income, three months ended September 30, 2026GAAP | $34.1M | $0.6 million, or 1.7% | $4.8 million, or 16.3% |
| Net interest margin, three months ended September 30, 2026other | 5.05% | decrease of 13 basis points (bps) | – |
| Yield on interest-earning assets, three months ended September 30, 2026other | 6.60% | – | – |
| Cost of interest-bearing liabilities, three months ended September 30, 2026other | 2.34% | – | – |
| Total cost of deposits, three months ended September 30, 2026other | 1.66% | increase of 3 bps quarter over quarter | decrease of 17.8% year over year |
| Cost of core deposits, three months ended September 30, 2026other | 1.61% | – | – |
| Total cost of funding sources, three months ended September 30, 2026other | 1.71% | – | – |
| Provision for credit losses, three months ended September 30, 2026GAAP | $1.3M | – | – |
| Net recoveries, three months ended September 30, 2026GAAP | $900K | – | – |
| Noninterest income, three months ended September 30, 2026GAAP | $1.4M | – | – |
| Net gain on sale of loans, three months ended September 30, 2026GAAP | $337K | – | – |
| Noninterest expense, three months ended September 30, 2026GAAP | $18.4M | $1.5 million increase | – |
| Efficiency ratio, three months ended September 30, 2026non-GAAP | 51.68% | – | – |
| Pretax pre-provision net revenue, three months ended September 30, 2026non-GAAP | $17.18M | – | – |
| Provision for income tax expense, three months ended September 30, 2026GAAP | $4.5M | – | – |
| Effective tax rate, three months ended September 30, 2026GAAP | 28.3% | – | – |
| Net income, three months ended September 30, 2026GAAP | $11.4M | – | – |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $1.97 | – | – |
| Basic earnings per share, three months ended September 30, 2026GAAP | $1.99 | – | – |
| Return on average assets, three months ended September 30, 2026GAAP | 1.65% | – | – |
| Return on average tangible common equity, three months ended September 30, 2026non-GAAP | 15.62% | – | – |
| Total assets as of September 30, 2026GAAP | $2.75B | increase of $39.9 million | – |
| Cash and cash equivalents as of September 30, 2026GAAP | $251.2M | decrease of $49.1 million | – |
| Loans held-for-investment as of September 30, 2026GAAP | $2.19B | increase of $54.0 million, or 2.5% | increase of $105.1 million, or 5.0% |
| Investment securities available-for-sale as of September 30, 2026GAAP | $267.7M | increase of $30.6 million, or 12.9% | increase of $67.8 million, or 33.9% |
| Total deposits as of September 30, 2026GAAP | $2.41B | increase of $31.8 million | – |
| Core deposits as of September 30, 2026other | $2.36B | increase of $31.8 million, or 1.4% | increase of $171.5 million, or 7.8% |
| Brokered deposits as of September 30, 2026GAAP | $49.3M | unchanged | – |
| Allowance for loan losses as of September 30, 2026GAAP | $31.7 million, or 1.45% of loans HFI | – | – |
| Criticized loans as of September 30, 2026other | $71.9 million, or 3.29% of total loans | – | – |
| Nonaccrual loans as of September 30, 2026GAAP | $28.8M | – | – |
| Nonperforming assets as of September 30, 2026GAAP | $43.3 million, or 1.58% of total assets | increase of $2.8 million | – |
| Tangible book value per share as of September 30, 2026non-GAAP | $50.56 | – | – |
| Total shareholders' equity as of September 30, 2026GAAP | $291.3M | – | – |
| Total borrowings as of September 30, 2026GAAP | $25.98M | – | – |
| Net unrealized loss on available-for-sale securities portfolio as of September 30, 2026GAAP | $17.7 million (pre-tax) | – | – |
| Total available liquidity as of September 30, 2026other | $2.4 billion or 191.8% of uninsured deposits, net of collateralized and fiduciary deposits | – | – |
| Tier I leverage ratio as of September 30, 2026other | 11.47% | – | – |
| Tier I risk-based capital ratio as of September 30, 2026other | 13.95% | – | – |
| Total risk-based capital ratio as of September 30, 2026other | 15.20% | – | – |
| Net income, year to date September 30, 2026GAAP | $36.55M | – | – |
| Diluted earnings per share, year to date September 30, 2026GAAP | $6.31 | – | – |
| Net interest income, year to date September 30, 2026GAAP | $100.3M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- During the second quarter of 2026, the Board of Directors authorized a stock repurchase program under which the Company may repurchase up to $10.0 million of its common stock.
- As of September 30, 2026, no shares had been repurchased under this program.
What drove it
- The increase in net interest income from the prior quarter was driven by a $1.2 million increase in interest income, primarily reflecting higher interest on deposits in other financial institutions and higher investment securities income, partially offset by a modest increase in interest expense.
- Loans HFI growth primarily reflected higher investor-owned commercial real estate, SBA 504, multifamily and construction loan balances, partially offset by lower owner-occupied commercial real estate and commercial and industrial balances.
- During the quarter, core deposits increased as a $25.1 million increase in interest-bearing core deposits was accompanied by a $6.7 million increase in noninterest-bearing core deposits.
- The third-quarter provision included approximately $0.8 million associated with the CECL model transition, primarily reflecting an increase in the reserve for unfunded commitments.
- The increase in AFS securities primarily resulted from new securities purchased.
Concerns
- The quarter recorded a provision expense of $1.3 million, compared to a provision reversal of $0.2 million in the prior quarter.
- Criticized loans increased to $71.9 million, or 3.29% of total loans, from $58.0 million, or 2.72% of total loans, at June 30, 2026.
- The increase in criticized loans was primarily attributable to a Chapter 11 bankruptcy filing impacting two related real estate investor loans totaling $8.8 million and delinquent payments for two SBA 504 real estate loans totaling $3.7 million.
- Nonperforming assets increased to $43.3 million, or 1.58% of total assets, from $40.5 million, or 1.50% of total assets, at June 30, 2026.
- Noninterest expense increased by $1.5 million from the prior quarter, including $0.6 million of OREO impairment expense, a $0.4 million increase in compensation and employee benefits, and NASDAQ Uplisting costs.
- The net unrealized loss on the AFS securities portfolio increased to $17.7 million (pre-tax) from a loss of $8.9 million (pre-tax) as of June 30, 2026 due to higher market interest rates during the quarter.
What to watch
- Loan production and the strong pipelines going into the fourth quarter.
- Whether criticized assets, nonaccrual loans and nonperforming assets improve after their third-quarter increases.
- The effect of higher deposit costs and interest-bearing-liability costs on net interest margin.
- Expense scaling, including NASDAQ Uplisting costs, investments in technology and people, and wage and third-party service-provider cost pressure.
- Activity under the authorized stock repurchase program, under which no shares had been repurchased as of September 30, 2026.
Balance sheet and cash flow
- Total assets were $2.75 billion as of September 30, 2026, an increase of $39.9 million since June 30, 2026.
- Total deposits were $2.41 billion as of September 30, 2026, an increase of $31.8 million since June 30, 2026.
- Total available liquidity was $2.4 billion or 191.8% of uninsured deposits, net of collateralized and fiduciary deposits, as of September 30, 2026.
- Total available liquidity is comprised of $502 million of on-balance sheet liquidity (cash and investment securities) and $1.9 billion of unused borrowing capacity.
- FHLB borrowings were $8,000 and other borrowings were $17,981 as of September 30, 2026.
Analysis
Private Bancorp reported third-quarter net income of $11.4 million and diluted earnings per share of $1.97. Both measures were below the prior quarter's $13.1 million and $2.27, respectively, but above the third quarter of 2025, when net income was $9.7 million and diluted earnings per share was $1.65. Net interest income rose to $34.1 million, supported by higher interest income on deposits in other financial institutions and investment securities.
The balance sheet continued to expand. Loans held-for-investment totaled $2.19 billion, up $54.0 million from June 30, 2026, while total deposits increased $31.8 million to $2.41 billion. Core deposits reached $2.36 billion and brokered deposits were unchanged at $49.3 million. Loan expansion was concentrated in investor-owned commercial real estate, SBA 504, multifamily and construction balances, while owner-occupied commercial real estate and commercial and industrial balances declined.
Margin remained elevated relative to the third quarter of 2025 but contracted sequentially. Net interest margin was 5.05%, compared with 5.18% in the prior quarter and 4.65% a year earlier. The company identified second-quarter net nonaccrual interest adjustments as a principal reason for the sequential decline. Total cost of deposits increased to 1.66% from 1.63% sequentially, and the cost of interest-bearing liabilities rose to 2.34% from 2.32%.
Credit and expense trends tempered the quarter. Provision expense was $1.3 million after a $0.2 million provision reversal in the prior quarter, including approximately $0.8 million associated with the CECL model transition. Criticized loans, nonaccrual loans and nonperforming assets all increased sequentially. Noninterest expense rose to $18.4 million, reflecting OREO impairment, higher compensation and employee benefits, and costs tied to the NASDAQ Uplisting. The efficiency ratio increased to 51.68% from 48.81%.
Capital and liquidity remained substantial in the reported period. Total available liquidity was $2.4 billion or 191.8% of uninsured deposits, net of collateralized and fiduciary deposits, and the Bank's reported capital ratios exceeded well-capitalized levels. Tangible book value per share increased to $50.56. The company has authorized repurchases of up to $10.0 million of common stock, but reported that no shares had been repurchased as of September 30, 2026. No formal forward financial guidance was provided.
Management, verbatim
We are pleased with our third quarter results. The quarter included strong loan production and continued top-quartile net interest margin. Pipelines are strong going into the fourth quarter. Although criticized assets increased in the quarter, we are dedicating the appropriate resources to improve our credit metrics and believe that reserves are more than adequate.
Rick Sowers, President and Chief Executive Officer of the Company and the Bank
Profitability continues to be strong and the potential of being included in the reconstitution of the Russell 2000 Index provides additional momentum. The listing also creates additional strategic options and flexibility in pursuing external growth opportunities and enhances our successful team lift-out organic growth strategy by enhancing operational advantages in retaining and hiring exceptional talent.
Selwyn Isakow, Chairman of the Board of the Company and the Bank
Not in the filing
stated, not guessed- Total revenue was not reported because the company reports net interest income and noninterest income rather than revenue.
- Gross margin was not reported.
- Operating income was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Dividend information was not reported.
- Forward financial guidance was not provided.
- Prior guidance was not provided.
- Reportable operating segments and segment revenue were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Private Bancorp of America recently completed a NASDAQ uplisting, incurring $0.9 M in related expenses.
Ticker impact
SEC Form 8‑K reports Private Bancorp of America’s unaudited Q3 2026 earnings, including net income of $11.4 M and EPS of $1.97.
neutral to slight upside as investors digest the earnings beat and NASDAQ uplisting benefits
The numbers are new and primary, but the scale is small and the earnings change is modest, so any move is expected to be limited.
Market effects
Provides a data point for the regional community banking sector and recent NASDAQ uplistings.
Limited impact on U.S. small‑cap banking indices.
Minimal; primarily a U.S. micro‑cap event.
Counterpoint
The modest earnings beat may be outweighed by rising loan loss provisions and higher criticized loans, suggesting downside risk.
Key entities
- ExecutiveRick Sowers
President and CEO of Private Bancorp of America, quoted on earnings.
- ExecutiveSelwyn Isakow
Chairman of the Board, commented on uplisting benefits.
