KBRA Affirms Ratings for Preferred Bank

Preferred Bank (NASDAQ: PFBC) said KBRA affirmed its long-term deposit and senior unsecured ratings at A-, subordinated debt at BBB+, and short-term ratings at K2 with a Stable outlook as of April 17, 2026.

Rhea-AI Summary

Preferred Bank (NASDAQ: PFBC) said KBRA affirmed its long-term deposit and senior unsecured ratings at A-, subordinated debt at BBB+, and short-term ratings at K2 with a Stable outlook as of April 17, 2026.

KBRA cited the bank’s consistently strong profitability, including a 2025 ROA of 1.84%, a high-yielding loan portfolio, and a lean, branch-light cost structure as rating supports.

Positive

• Ratings affirmed: Long-term A-, subordinated BBB+, short-term K2
• 2025 ROA 1.84% indicating strong profitability
• Stable outlook on long-term ratings as of April 17, 2026

Negative

• None.

Argus Apr 21 session

-1.99% close to close Open Argus

Details

News Market Reaction – PFBC

On Apr 21, the first trading day after this news, PFBC closed 1.99% below the previous close.

Data tracked by StockTitan Argus for the Apr 21 session.

Key Figures

2025 ROA: 1.84% Full-service branches: 12 branches New York branch: 1 branch +2 more

2025 ROA

1.84%

Full-year 2025 return on assets cited by KBRA

Full-service branches

12 branches

California full-service branch banking offices

New York branch

1 branch

Branch in Flushing, New York

Texas branch

1 branch

Branch in Sugar Land, Texas

Loan production office

1 office

Loan Production Office in Sunnyvale, California

Historical Context

5 past events · Latest: Apr 08

5 events

1. Apr 08

   Earnings call scheduling

   24h Move

   +2.1%

   Announcement of date and time for Q1 2026 earnings release and call.

2. Mar 18

   Dividend declaration

   24h Move

   +1.8%

   Board declared a quarterly cash dividend of $0.80 per share.

3. Feb 23

   Credit quality update

   24h Move

   -0.9%

   Large borrower reclassified to nonaccrual with detailed collateral coverage.

4. Jan 22

   Earnings results

   24h Move

   -7.0%

   Reported strong Q4 and 2025 results with high ROA and ROE despite NIM pressure.

5. Jan 08

   Earnings call scheduling

   24h Move

   -0.7%

   Set date and time for Q4 2025 earnings release and conference call.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

senior unsecured debt, subordinated debt, short-term deposit, loan production office, +2 more

6 terms

senior unsecured debt financial

"affirmed the Bank’s deposit and senior unsecured debt ratings of A-"

A senior unsecured debt is a loan or bond that a company must repay before other unsecured obligations but is not backed by specific assets as collateral. Think of it as being earlier in line for repayment, like a preferred ticket in a queue, but without a guarantee you’ll get property if the company fails; that priority reduces risk compared with junior debt and affects expected interest rates and recovery prospects for investors.

subordinated debt financial

"the subordinated debt rating of BBB+"

Subordinated debt is a type of loan that is paid back after other debts have been settled if a company encounters financial trouble. It is considered riskier for lenders because they have lower priority in getting repaid, similar to being last in line during a payout. For investors, this means higher potential returns in exchange for taking on more risk.

short-term deposit financial

"and the short-term deposit and debt ratings of K2"

A short-term deposit is money placed with a bank or similar institution for a fixed, brief period—typically days to a year—earning interest while remaining relatively safe and easy to access when the term ends. Investors use these like a parking spot for cash: they offer lower returns than long-term investments but preserve capital, provide predictable interest, and keep funds liquid for opportunities or obligations that may arise soon.

loan production office financial

"as well as a Loan Production Office in Sunnyvale, California."

A loan production office is a bank or finance company location set up primarily to find, meet with, and originate loans, but it typically does not handle full retail services like deposits or cash transactions. For investors, an LPO is a way for a lender to grow loan volume and reach new customers with lower overhead, which can boost revenue but also concentrates credit risk in specific markets—like opening a pop-up shop that only sells one product.

trade finance financial

"real estate finance, commercial loans and trade finance to small and mid-sized businesses"

Trade finance consists of the financial tools and services that facilitate international buying and selling of goods and services. It provides the necessary funds, guarantees, and payment methods to ensure that exporters receive payment and importers get their goods, reducing risks and making cross-border trade smoother. This support helps businesses expand globally and ensures economic flow between countries.

fdic regulatory

"its deposits are insured by the Federal Deposit Insurance Corporation, or FDIC,"

The Federal Deposit Insurance Corporation (FDIC) is a U.S. government agency that protects individual and business bank deposits by insuring accounts up to a set limit, acting like a safety net for savers if a bank fails. It matters to investors because FDIC insurance reduces the chance of sudden losses for depositors, supports confidence in the banking system, and can influence the perceived risk and stock value of banks and financial firms.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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LOS ANGELES, April 20, 2026 (GLOBE NEWSWIRE) -- Preferred Bank (NASDAQ: PFBC), (“the Bank”), an independent commercial bank, announced today that Kroll Bond Rating Agency, LLC ("KBRA") affirmed the Bank’s deposit and senior unsecured debt ratings of A-, the subordinated debt rating of BBB+, and the short-term deposit and debt ratings of K2. The outlook of the long-term ratings for the Bank is Stable as of April 17, 2026.

In affirming its ratings, KBRA noted that the Bank’s ratings remained anchored by its consistently strong profitability metrics, highlighted by its 2025 ROA of 1.84%, which continues to benefit from a high yielding loan portfolio and lean cost structure associated with the Bank’s branch light business model.

The complete KBRA press release on Preferred Bank is available on KBRA’s website, https://www.krollbondratings.com. The KBRA press release, credit ratings, and analysis constitute part of the information contained therein are, and must be construed solely as, statements of opinion of KBRA and not statements of fact or recommendations of KBRA or the Bank to purchase, sell or hold any of the Bank’s securities.

About Preferred Bank

Preferred Bank is one of the larger independent commercial banks headquartered in California. The Bank is chartered by the State of California, and its deposits are insured by the Federal Deposit Insurance Corporation, or FDIC, to the maximum extent permitted by law. The Bank conducts its banking business from its main office in Los Angeles, California, and through twelve full-service branch banking offices in California (Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine (2), Diamond Bar, Pico Rivera, Tarzana and San Francisco (2)). The Bank also operates a branch in Flushing, New York and in the Houston suburb of Sugar Land, Texas as well as a Loan Production Office in Sunnyvale, California. Preferred Bank offers a broad range of deposit and loan products and services to both commercial and consumer customers. The Bank provides personalized deposit services as well as real estate finance, commercial loans and trade finance to small and mid-sized businesses, entrepreneurs, real estate developers, professionals and high net worth individuals. Although originally founded as a Chinese-American Bank, Preferred Bank now derives most of its customers from the diversified mainstream market but does continue to benefit from the significant migration to California of ethnic Chinese from China and other areas of East Asia.

AT THE COMPANY: Edward J. Czajka Executive Vice President Chief Financial Officer (213) 891-1188

AT FINANCIAL PROFILES: Evan Niu General Information (310) 478-2700 PFBC@finprofiles.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What ratings did KBRA affirm for Preferred Bank (PFBC) on April 17, 2026?

KBRA affirmed Preferred Bank’s long-term deposit and senior unsecured ratings at A-. According to the company, KBRA also affirmed subordinated debt at BBB+ and short-term ratings at K2, with a Stable outlook on the long-term ratings.

Why did KBRA cite Preferred Bank (PFBC) when affirming its ratings in April 2026?

KBRA cited the bank’s consistently strong profitability and lean cost structure. According to the company, KBRA highlighted a 2025 ROA of 1.84%, a high-yielding loan portfolio, and a branch-light business model as key supports.

What does a Stable outlook from KBRA mean for PFBC shareholders?

A Stable outlook means KBRA expects the ratings to remain steady near term. According to the company, the Stable outlook reflects confidence in Preferred Bank’s profitability, asset quality, and cost profile absent material adverse changes.

How does Preferred Bank’s 2025 ROA of 1.84% affect its credit profile (PFBC)?

A 1.84% ROA signals robust earnings relative to assets, supporting credit strength. According to the company, this profitability helped KBRA affirm PFBC’s ratings by offsetting balance-sheet or market pressures through earnings generation.

Where can investors find KBRA’s full analysis of Preferred Bank (PFBC)?

Investors can read KBRA’s full press release and credit analysis on KBRA’s website. According to the company, KBRA’s release, ratings, and commentary are statements of opinion and not investment recommendations.