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The Current Environment in the Banking Industry

Dear Valued Client,

We want to take this opportunity to address the current environment in the banking industry and assure you of the safety and strength of Private Bancorp of America and CalPrivate Bank. We have a strong balance sheet and a premier Client base. From a financial performance perspective, we have a solid Bank that is committed to sustainable growth and profit. The Company:

• Is Well Capitalized
• Is Consistently Profitable
• Has only 6% of Assets in Interest Rate Sensitive Investment Securities (“AFS” portfolio)
• Is Highly Liquid with a Strong Deposit Base and over $500 million in Untapped Borrowing Availability

As you likely know, in the past weeks, there have been two bank failures in the United States, which has led to instability in the financial markets and general concerns regarding the banking sector. In fact, the failures of those two banks were due to their unique circumstances, none of which are relevant to Private Bancorp of America/CalPrivate Bank or to the industry as a whole.

• The two banks that failed were highly concentrated in particular industries. Silicon Valley Bank specialized in start-up and venture capital companies with large deposit concentrations controlled by relatively few people tied to those same companies. Signature Bank operated in the cryptocurrency space and was one of the largest providers of banking services to digital asset and token companies.
• By comparison, CalPrivate Bank does not participate in either of these industries, instead focusing on the basics of community Relationship banking: serving diverse Clients with deep ties to our Communities that both create jobs and stimulate local economies.
• Both failed banks were also heavily invested in longer-term bonds that can have swings in value, particularly in a rising rate environment. Our investment securities portfolio represents only 6% of our total assets and comprises shorter-duration securities.
• Risky lending practices can contribute to instability in banks. Our loan portfolio, which does not have a single loan past due, is well-secured. We maintain an average loan-to-value of 55% in our real estate portfolio, which makes up the majority of our lending. We focus our loans on areas that we have deep knowledge of and understand. We lend to you.
• We have a profitable and highly liquid balance sheet. We fundamentally believe that operating safely and soundly is the key to long-term success. We serve our Clients and our Communities by building enduring Trust and offering creative Solutions to you – this is what we know how to do, and we do it well. Our Clients – all of you – tell us this by consistently referring your friends, family, and business colleagues to us. Our Net Promoter Score is an 85, a world-class measure of our dedication to our focus on our Clients.

We appreciate your loyalty and your Relationship with us. Together, we move forward.

With Gratitude,