CalPrivate Bank Q4 net interest margin improves on lower deposit costs

Overview

• California bank's Q4 net income was $10 mln, a decrease from the previous year

• Net interest margin improved to 4.84% due to lower deposit costs

• Core deposits increased 13.9% yr/yr, while total deposits declined from Q3

Outlook

• Company plans continued investments in technology and team members in 2026

• CalPrivate Bank aims to reduce criticized and non-performing assets

• Company sees healthy loan pipelines entering Q1 2026

Result Drivers

• LOAN GROWTH - Strong loan growth, particularly in commercial and industrial loans, contributed to an increase in loans held-for-investment

• DEPOSIT COST MANAGEMENT - Net interest margin improved due to proactive management of deposit pricing, resulting in lower deposit costs

• TECHNOLOGY INVESTMENTS - Significant investments in technology and infrastructure were made to enhance client service and operational capabilities

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for CalPrivate Bank is $74.00, about 28.6% above its January 15 closing price of $57.53

Press Release: ID:nGNX7VBnwD

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