Overview

• U.S. community bank's Q2 net income and EPS rose yr/yr and sequentially

• Company authorized $10 mln share repurchase program

• Credit metrics improved with declines in non-performing assets and criticized loans

Outlook

• Company says competitive markets and compressed spreads on new loans may impact future growth

• Company expects continued upward pressure on wages and third-party costs due to inflation

• Company plans to uplist to NASDAQ in Q3 2026, pending regulatory approval

Result Drivers

• NET INTEREST INCOME - Higher loan interest income drove a 2.9% increase in net interest income from the prior qtr, partially offset by higher interest expense

• CREDIT LOSS PROVISION REVERSAL - Q2 included a $0.2 mln provision reversal, compared to a $2.0 mln expense in the prior qtr, reflecting net recoveries and lower delinquencies

• HIGHER NONINTEREST EXPENSES - Noninterest expense rose $1.2 mln from the prior qtr, mainly due to investments in personnel and professional services for the planned NASDAQ uplisting

Company press release: ID:nGNX5sTHkx

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 EPS		$2.27
Q2 Net Income		$13.12 mln
Q2 Net Interest Income		$33.55 mln
Q2 Basic EPS		$2.29
Q2 Pretax Profit		$17.89 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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 $85.00, about 6.3% above its July 15 closing price of $80.00

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