Preferred Bank Reports First Quarter Results
Rhea-AI Summary
Preferred Bank (NASDAQ: PFBC) reported Q1 2026 net income of $31.1 million or $2.53 per diluted share. Return on average assets was 1.67% and return on average equity 16.00%. Total loans rose to $6.12 billion and deposits to $6.42 billion.
Net interest margin contracted to 3.57% largely from interest reversals tied to one large relationship placed on nonaccrual. Nonperforming assets increased materially to $172.1 million with subsequent sales of CRE loans totaling $48.5 million on April 1, 2026. The bank repurchased 402,299 shares for $35.8 million.
Positive
- Net income up $1.1M year-over-year
- Total loans increased $68.6M linked quarter
- Total deposits increased $74.7M linked quarter
- Share repurchases of 402,299 shares for $35.8M
- NIM would have been 3.75% without interest reversals
Negative
- Net income declined $3.7M versus prior quarter
- Total nonperforming assets rose to $172.1M
- Net charge-offs of $5.5M in Q1 2026
- Allowance coverage ratio fell to 1.24%
- Key capital ratios declined: tangible common equity 10.05%, CET1 10.87%
News Market Reaction – PFBC
On the day this news was published, PFBC declined 1.39%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
PFBC is down 1.99% with mixed peer action: BFC +0.73%, WABC +1.35%, while OBK, PEBO and HOPE range from -1.07% to -2.48%, suggesting stock-specific focus on these results.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 22 | Quarterly earnings | Positive | -7.0% | Solid Q4 2025 earnings with strong returns but NIM contraction. |
| Jul 21 | Quarterly earnings | Positive | +4.8% | Q2 2025 profit growth, higher NIM and improved credit quality. |
| Apr 25 | Quarterly earnings | Negative | -6.8% | Q1 2025 earnings decline driven by lower net interest income. |
| Jan 27 | Quarterly earnings | Neutral | +1.3% | Q4 2024 results impacted by one-time expense but solid full-year. |
Earnings releases have averaged a -1.94% 1-day move, with mostly aligned price reactions.
Over the past year, PFBC’s earnings reports have highlighted solid profitability with occasional margin pressure and credit shifts. Prior quarters showed net income around $30–35M, NIM between 3.74–4.06%, and efficiency ratios near the low-30% range. Capital ratios remained strong, with total capital around 14–15%. Today’s Q1 2026 update continues that theme: strong returns but tighter NIM at 3.57% and higher nonperforming assets, following the large relationship moved to nonaccrual.
Historical Comparison
In the past year PFBC issued 4 earnings updates, averaging a -1.94% next‑day move, often reflecting margin shifts and credit metrics similar to this Q1 2026 report.
Earnings updates show a progression from higher NIM near 4.06% and improving credit in 2024–2025 to Q1 2026’s lower 3.57% margin and a spike in nonaccruals tied to a single large relationship, while capital ratios remain solid.
Market Pulse Summary
This announcement details Q1 2026 earnings with net income of $31.1M, EPS of $2.53, and solid returns of 1.67% ROAA and 16.00% ROAE. Net interest margin eased to 3.57%, mainly from interest reversals on a large relationship moved to nonaccrual, lifting nonperforming assets to $172.1M. Loans and deposits grew to $6.12B and $6.42B, respectively. Investors may watch future updates on resolving the nonaccrual loans, NIM stabilization, and capital ratios such as the 10.87% CET1 level.
Key Terms
net interest margin financial
nonaccrual financial
non-performing assets financial
efficiency ratio financial
provision for credit losses financial
tangible common equity ratio financial
common equity tier 1 capital ratio financial
loan production office technical
AI-generated analysis. Not financial advice.
LOS ANGELES, April 22, 2026 (GLOBE NEWSWIRE) -- Preferred Bank (NASDAQ: PFBC), one of the larger independent California banks, today reported results for the quarter ended March 31, 2026. Preferred Bank (“the Bank”) reported net income of
Highlights for the Quarter:
- Return on average assets was
1.67% - Return on average equity was
16.00% - Total loans increased by
$68.6 million or1.1% , linked quarter - Total deposits increased by
$74.7 million , or1.2% , linked quarter - The efficiency ratio for the quarter was
33.8%
Li Yu, Chairman and CEO, commented, “Net income for the first quarter ending March 31, 2026, was
“During the first quarter, we disclosed that we placed
“Total non-performing assets at March 31, 2026, to
“Loans for the quarter have increased
“During the first quarter, we repurchased 402,299 shares of our common stock for total consideration of
Results of Operations
Net Interest Income and Net Interest Margin. Net interest income before provision for credit losses was
Noninterest Income. For the first quarter of 2026, noninterest income was
Noninterest Expense. Total noninterest expense was
Income Taxes. The Bank recorded a provision for income taxes of
Balance Sheet Summary
Total gross loans at March 31, 2026 were
Asset Quality
Non-accrual loans and loans 90 days or more past due and still accruing totaled
| C&I | SFR | CRE | Total | |||||||||||
| Balance | Appraised Value | Balance | Appraised Value | Balance | Appraised Value | Balance | Appraised Value | |||||||
| $ | 4,519,590 | $ | 461,638 | $ | 780,000 | $ | 649,036 | $ | 1,550,000 | |||||
| 46,156 | 144,542 | 1,275,000 | 4,037,500 | 4,250,000 | ||||||||||
| 63,744 | 924,624 | 1,308,000 | 3,690,251 | 6,260,000 | ||||||||||
| 3,526 | 658,067 | 967,246 | 6,265,056 | 7,100,000 | ||||||||||
| 19,500,000 | 48,300,000 | |||||||||||||
| 19,950,000 | 41,300,000 | |||||||||||||
| 48,458,994 | 65,650,000 | |||||||||||||
| 29,882,035 | 67,230,000 | |||||||||||||
| 7,914,950 | 12,890,000 | |||||||||||||
| 21,881,109 | 27,000,000 | |||||||||||||
| $ | 4,633,016 | $ | 2,188,871 | $ | 4,330,246 | $ | 162,228,931 | $ | 281,530,000 | $ | 169,050,818 | $ | 285,860,246 | |
| Note: | ||||||||||||||
| 1) Weighted LTV: | ||||||||||||||
| 2) | ||||||||||||||
Allowance for Credit Losses
The provision for credit losses for the first quarter of 2026 was
Capitalization
As of March 31, 2026, the Bank’s tangible common equity ratio was
Conference Call and Webcast
A conference call with simultaneous webcast to discuss Preferred Bank’s first quarter 2026 financial results will be held this afternoon, April 22, 2026 at 2:00 p.m. Eastern / 11:00 a.m. Pacific. Interested participants and investors may access the conference call by dialing 844-826-3037 (domestic) or 412-317-5182 (international) and referencing “Preferred Bank.” There will also be a live webcast of the call available at the Investor Relations section of Preferred Bank's website at www.preferredbank.com.
Preferred Bank's Chairman and CEO Li Yu, President and Chief Operating Officer Wellington Chen, Chief Financial Officer Edward J. Czajka, and Deputy Chief Operating Officer Johnny Hsu will discuss Preferred Bank's financial results, business highlights and outlook. After the live webcast, a replay will be available at the Investor Relations section of Preferred Bank's website. A replay of the call will also be available at 855-669-9658 (domestic) or 412-317-0088 (international) through February 5, 2026; the passcode is 4064016.
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)), two branches in New York (Manhattan and Flushing, Queens) and a branch office in the Houston, Texas suburb of Sugar Land. In addition, the Bank also operates 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.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the Bank’s future financial and operating results, the Bank's plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the Bank’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: changes in economic conditions; changes in the California real estate market; the loss of senior management and other employees; natural disasters or recurring energy shortage; changes in interest rates; competition from other financial services companies; ineffective underwriting practices; inadequate allowance for loan and lease losses to cover actual losses; risks inherent in construction lending; adverse economic conditions in Asia; downturn in international trade; inability to attract deposits; inability to raise additional capital when needed or on favorable terms; inability to manage growth; inadequate communications, information, operating and financial control systems, technology from fourth party service providers; the U.S. government’s monetary policies; government regulation; environmental liability with respect to properties to which the bank takes title; and the threat of terrorism. Additional factors that could cause the Bank's results to differ materially from those described in the forward-looking statements can be found in the Bank’s 2025 Annual Report on Form 10-K filed with the Federal Deposit Insurance Corporation which can be found on Preferred Bank’s website. The forward-looking statements in this press release speak only as of the date of the press release, and the Bank assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contained in the forward-looking statements. For additional information about Preferred Bank, please visit the Bank’s website at www.preferredbank.com.
| AT THE COMPANY: | AT FINANCIAL PROFILES: |
| Edward J. Czajka | Evan Niu |
| Executive Vice President | General Information |
| Chief Financial Officer | (310) 622-8243 |
| (213) 891-1188 | PFBC@finprofiles.com |
Financial Tables to Follow
| PREFERRED BANK | ||||||||
| Condensed Consolidated Statements of Operations | ||||||||
| (unaudited) | ||||||||
| (in thousands, except for net income per share and shares) | ||||||||
| For the Quarter Ended | ||||||||
| March 31, | December 31, | March 31, | ||||||
| 2026 | 2025 | 2025 | ||||||
| Interest income: | ||||||||
| Loans, including fees | $ | 103,382 | $ | 109,747 | $ | 101,491 | ||
| Investment securities | 13,301 | 14,677 | 12,810 | |||||
| Fed funds sold | 192 | 209 | 228 | |||||
| Total interest income | 116,875 | 124,633 | 114,529 | |||||
| Interest expense: | ||||||||
| Interest-bearing demand | 15,120 | 16,952 | 16,590 | |||||
| Savings | 54 | 55 | 69 | |||||
| Time certificates | 33,373 | 34,543 | 33,887 | |||||
| FHLB borrowings | 1,690 | 1,783 | - | |||||
| Subordinated debt | 1,325 | 1,325 | 1,325 | |||||
| Total interest expense | 51,562 | 54,658 | 51,871 | |||||
| Net interest income | 65,313 | 69,975 | 62,658 | |||||
| Provision for credit losses | 1,500 | 4,300 | 700 | |||||
| Net interest income after provision for credit losses | 63,813 | 65,675 | 61,958 | |||||
| Noninterest income: | ||||||||
| Fees & service charges on deposit accounts | 516 | 545 | 716 | |||||
| Letters of credit fee income | 2,737 | 2,408 | 2,244 | |||||
| BOLI income | 105 | 105 | 103 | |||||
| Net gain on sale of other real estate owned | - | 3,609 | - | |||||
| Net gain on called and sale of investment securities | 59 | 132 | - | |||||
| Net gain on sale of loans | 24 | 93 | 275 | |||||
| Other income | 869 | 1,202 | 660 | |||||
| Total noninterest income | 4,310 | 8,094 | 3,998 | |||||
| Noninterest expense: | ||||||||
| Salary and employee benefits | 15,460 | 13,101 | 14,839 | |||||
| Net occupancy expense | 2,426 | 2,430 | 2,294 | |||||
| Business development and promotion expense | 203 | 163 | 462 | |||||
| Professional services | 1,647 | 2,091 | 1,651 | |||||
| Office supplies and equipment expense | 358 | 375 | 386 | |||||
| OREO valuation allowance and related expense | 363 | 3,465 | 1,531 | |||||
| Other | 3,082 | 2,752 | 2,206 | |||||
| Total noninterest expense | 23,539 | 24,377 | 23,369 | |||||
| Income before provision for income taxes | 44,584 | 49,392 | 42,587 | |||||
| Income tax expense | 13,440 | 14,570 | 12,563 | |||||
| Net income | $ | 31,144 | $ | 34,822 | $ | 30,024 | ||
| Income per share available to common shareholders | ||||||||
| Basic | $ | 2.57 | $ | 2.85 | $ | 2.27 | ||
| Diluted | $ | 2.53 | $ | 2.79 | $ | 2.23 | ||
| Weighted-average common shares outstanding | ||||||||
| Basic | 12,105,359 | 12,210,077 | 13,226,582 | |||||
| Diluted | 12,292,237 | 12,479,124 | 13,453,176 | |||||
| Cash dividends per common share | $ | 0.80 | $ | 0.80 | $ | 0.75 | ||
| PREFERRED BANK | |||||||
| Condensed Consolidated Statements of Financial Condition | |||||||
| (unaudited) | |||||||
| (in thousands) | |||||||
| March 31, | December 31, | ||||||
| 2026 | 2025 | ||||||
| (Unaudited) | (Audited) | ||||||
| Assets | |||||||
| Cash and due from banks | $ | 805,161 | $ | 807,098 | |||
| Fed funds sold | 20,000 | 20,000 | |||||
| Cash and cash equivalents | 825,161 | 827,098 | |||||
| Securities held-to-maturity, at amortized cost | 18,458 | 18,749 | |||||
| Securities available-for-sale, at fair value | 553,184 | 566,186 | |||||
| Loans held for sale, at lower of cost or fair value | 76,324 | - | |||||
| Loans | 6,046,544 | 6,054,264 | |||||
| Less allowance for credit losses | (75,036 | ) | (78,992 | ) | |||
| Less amortized deferred loan fees, net | (7,923 | ) | (9,030 | ) | |||
| Loans, net | 5,963,585 | 5,966,242 | |||||
| Other real estate owned and repossessed assets | 3,010 | 3,510 | |||||
| Bank furniture and fixtures, net | 8,972 | 8,064 | |||||
| Bank-owned life insurance | 10,782 | 10,712 | |||||
| Accrued interest receivable | 34,811 | 34,233 | |||||
| Investment in affordable housing partnerships | 66,394 | 69,978 | |||||
| Federal Home Loan Bank stock, at cost | 15,000 | 15,000 | |||||
| Deferred tax assets | 43,492 | 41,976 | |||||
| Income tax receivable | - | 3,884 | |||||
| Operating lease right-of-use assets | 29,593 | 30,531 | |||||
| Other assets | 5,871 | 5,002 | |||||
| Total assets | $ | 7,654,637 | $ | 7,601,165 | |||
| Liabilities and Shareholders' Equity | |||||||
| Deposits: | |||||||
| Noninterest bearing demand deposits | $ | 716,777 | $ | 699,160 | |||
| Interest bearing deposits: | 2,200,374 | 2,205,914 | |||||
| Savings | 26,822 | 30,376 | |||||
| Time certificates of | 1,795,883 | 1,754,273 | |||||
| Other time certificates | 1,680,291 | 1,655,723 | |||||
| Total deposits | 6,420,147 | 6,345,446 | |||||
| Advances from Federal Home Loan Bank | 200,000 | 200,000 | |||||
| Subordinated debt issuance, net | 148,766 | 148,706 | |||||
| Commitments to fund investment in affordable housing partnerships | 18,873 | 23,327 | |||||
| Operating lease liabilities | 34,383 | 35,107 | |||||
| Accrued interest payable | 16,754 | 16,513 | |||||
| Other liabilities | 45,515 | 42,589 | |||||
| Total liabilities | 6,884,438 | 6,811,688 | |||||
| Shareholders' equity | 770,199 | 789,477 | |||||
| Total liabilities and shareholders' equity | $ | 7,654,637 | $ | 7,601,165 | |||
| Book value per common share | $ | 65.04 | $ | 64.83 | |||
| Number of common shares outstanding | 11,841,866 | 12,177,588 | |||||
| PREFERRED BANK | |||||||||||||||||||
| Selected Consolidated Financial Information | |||||||||||||||||||
| (unaudited) | |||||||||||||||||||
| (in thousands, except for ratios) | |||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||
| Unaudited historical quarterly operations data: | |||||||||||||||||||
| Interest income | $ | 116,875 | $ | 124,633 | $ | 126,850 | $ | 120,443 | $ | 114,529 | |||||||||
| Interest expense | 51,562 | 54,658 | 55,540 | 53,569 | 51,871 | ||||||||||||||
| Interest income before provision for credit losses | 65,313 | 69,975 | 71,310 | 66,874 | 62,658 | ||||||||||||||
| Provision for credit losses | 1,500 | 4,300 | 2,500 | 1,600 | 700 | ||||||||||||||
| Noninterest income | 4,310 | 8,094 | 3,665 | 3,762 | 3,998 | ||||||||||||||
| Noninterest expense | 23,539 | 24,377 | 21,498 | 22,445 | 23,369 | ||||||||||||||
| Income tax expense | 13,440 | 14,570 | 15,038 | 13,744 | 12,563 | ||||||||||||||
| Net income | $ | 31,144 | $ | 34,822 | $ | 35,939 | $ | 32,847 | $ | 30,024 | |||||||||
| Earnings per share | |||||||||||||||||||
| Basic | $ | 2.57 | $ | 2.85 | $ | 2.90 | $ | 2.61 | $ | 2.27 | |||||||||
| Diluted | $ | 2.53 | $ | 2.79 | $ | 2.84 | $ | 2.57 | $ | 2.23 | |||||||||
| Ratios for the period: | |||||||||||||||||||
| Return on average assets | 1.67 | % | 1.82 | % | 1.93 | % | 1.85 | % | 1.76 | % | |||||||||
| Return on average equity | 15.89 | % | 17.59 | % | 18.64 | % | 17.55 | % | 15.62 | % | |||||||||
| Net interest margin (Fully-taxable equivalent) | 3.57 | % | 3.74 | % | 3.92 | % | 3.85 | % | 3.75 | % | |||||||||
| Noninterest expense to average assets | 1.26 | % | 1.27 | % | 1.16 | % | 1.26 | % | 1.37 | % | |||||||||
| Efficiency ratio | 33.81 | % | 31.22 | % | 28.67 | % | 31.78 | % | 35.06 | % | |||||||||
| Net charge-offs (recoveries) to average loans (annualized) | 0.37 | % | 0.00 | % | 0.11 | % | 0.00 | % | -0.01 | % | |||||||||
| Ratios as of period end: | |||||||||||||||||||
| Tangible common equity ratio | 10.05 | % | 10.38 | % | 10.38 | % | 10.26 | % | 10.96 | % | |||||||||
| Tier 1 leverage capital ratio | 10.37 | % | 10.54 | % | 10.66 | % | 10.73 | % | 11.52 | % | |||||||||
| Common equity tier 1 risk-based capital ratio | 10.87 | % | 11.26 | % | 11.34 | % | 11.18 | % | 11.86 | % | |||||||||
| Tier 1 risk-based capital ratio | 10.87 | % | 11.26 | % | 11.34 | % | 11.18 | % | 11.86 | % | |||||||||
| Total risk-based capital ratio | 13.98 | % | 14.47 | % | 14.56 | % | 14.43 | % | 15.15 | % | |||||||||
| Allowances for credit losses to loans at end of period | 1.24 | % | 1.30 | % | 1.27 | % | 1.29 | % | 1.28 | % | |||||||||
| Allowance for credit losses to non-performing loans | 0.8x | 1.54x | 4.24x | 1.41x | 0.91x | ||||||||||||||
| Average balances: | |||||||||||||||||||
| Total securities | $ | 580,248 | $ | 586,950 | $ | 583,302 | $ | 503,861 | $ | 402,754 | |||||||||
| Total loans | 6,037,241 | 5,947,814 | 5,753,801 | 5,623,010 | 5,555,010 | ||||||||||||||
| Total earning assets | 7,437,232 | 7,439,767 | 7,234,568 | 6,984,272 | 6,780,438 | ||||||||||||||
| Total assets | 7,563,705 | 7,585,940 | 7,382,265 | 7,121,047 | 6,905,249 | ||||||||||||||
| Total time certificate of deposits | 3,451,924 | 3,402,304 | 3,330,241 | 3,321,327 | 3,164,766 | ||||||||||||||
| Total interest bearing deposits | 5,644,722 | 5,651,369 | 5,501,767 | 5,345,308 | 5,244,243 | ||||||||||||||
| Total deposits | 6,311,446 | 6,336,242 | 6,169,728 | 6,005,486 | 5,886,163 | ||||||||||||||
| Total interest bearing liabilities | 5,993,452 | 6,000,042 | 5,850,376 | 5,614,737 | 5,392,735 | ||||||||||||||
| Total equity | 794,931 | 785,581 | 764,766 | 750,535 | 779,339 | ||||||||||||||
| PREFERRED BANK | |||||||||||||||||||
| Selected Consolidated Financial Information | |||||||||||||||||||
| (unaudited) | |||||||||||||||||||
| (in thousands, except for ratios) | |||||||||||||||||||
| As of | |||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | |||||||||||||||
| Unaudited quarterly statement of financial position data: | |||||||||||||||||||
| Assets: | |||||||||||||||||||
| Cash and cash equivalents | $ | 825,161 | $ | 827,098 | $ | 815,459 | $ | 796,257 | $ | 925,183 | |||||||||
| Securities held-to-maturity, at amortized cost | 18,458 | 18,749 | 19,034 | 19,456 | 19,745 | ||||||||||||||
| Securities available-for-sale, at fair value | 553,184 | 566,186 | 569,115 | 577,040 | 390,096 | ||||||||||||||
| Loans: | |||||||||||||||||||
| Real estate – Mortgage: | |||||||||||||||||||
| Real estate—Residential | $ | 738,508 | $ | 783,136 | $ | 793,217 | $ | 767,620 | $ | 779,462 | |||||||||
| Real estate—Commercial | 3,105,331 | 3,028,762 | 2,890,990 | 2,868,308 | 2,897,956 | ||||||||||||||
| Total Real Estate – Mortgage | 3,843,839 | 3,811,898 | 3,684,207 | 3,635,928 | 3,677,418 | ||||||||||||||
| Real estate – Construction: | |||||||||||||||||||
| R/E Construction — Residential | 265,748 | 282,808 | 285,623 | 291,343 | 306,283 | ||||||||||||||
| R/E Construction — Commercial | 343,598 | 387,759 | 323,897 | 303,354 | 269,065 | ||||||||||||||
| Total real estate construction loans | 609,346 | 670,567 | 609,520 | 594,697 | 575,348 | ||||||||||||||
| Commercial and industrial | 1,584,984 | 1,563,504 | 1,570,423 | 1,501,188 | 1,374,379 | ||||||||||||||
| SBA | 8,087 | 8,053 | 7,630 | 7,741 | 7,104 | ||||||||||||||
| Consumer and others | 288 | 242 | 231 | 56 | 164 | ||||||||||||||
| Gross loans | 6,046,544 | 6,054,264 | 5,872,011 | 5,739,610 | 5,634,413 | ||||||||||||||
| Allowance for credit losses on loans | (75,036 | ) | (78,992 | ) | (74,692 | ) | (73,830 | ) | (72,274 | ) | |||||||||
| Net deferred loan fees | (7,923 | ) | (9,030 | ) | (9,956 | ) | (11,940 | ) | (9,652 | ) | |||||||||
| Net loans, excluding loans held for sale | $ | 5,963,585 | $ | 5,966,242 | $ | 5,787,363 | $ | 5,653,840 | $ | 5,552,487 | |||||||||
| Loans held for sale | $ | 76,324 | $ | - | $ | - | $ | - | $ | - | |||||||||
| Net loans | $ | 6,039,909 | $ | 5,966,242 | $ | 5,787,363 | $ | 5,653,840 | $ | 5,552,487 | |||||||||
| Other real estate owned and repossessed assets | $ | 3,010 | $ | 3,510 | $ | 52,609 | $ | 13,755 | $ | 13,650 | |||||||||
| Investment in affordable housing partnerships | 66,394 | 69,978 | 73,874 | 74,783 | 63,612 | ||||||||||||||
| Federal Home Loan Bank stock, at cost | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | ||||||||||||||
| Other assets | 133,521 | 134,402 | 135,340 | 128,629 | 120,319 | ||||||||||||||
| Total assets | $ | 7,654,637 | $ | 7,601,165 | $ | 7,467,794 | $ | 7,278,760 | $ | 7,100,092 | |||||||||
| Liabilities: | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Demand | $ | 716,777 | $ | 699,160 | $ | 654,302 | $ | 675,102 | $ | 730,270 | |||||||||
| Interest bearing demand | 2,200,374 | 2,205,914 | 2,205,865 | 2,004,135 | 2,099,987 | ||||||||||||||
| Savings | 26,822 | 30,376 | 31,087 | 34,333 | 32,631 | ||||||||||||||
| Time certificates of | 1,795,883 | 1,754,273 | 1,699,757 | 1,681,026 | 1,531,715 | ||||||||||||||
| Other time certificates | 1,680,291 | 1,655,723 | 1,638,662 | 1,683,737 | 1,678,132 | ||||||||||||||
| Total deposits | $ | 6,420,147 | $ | 6,345,446 | $ | 6,229,673 | $ | 6,078,333 | $ | 6,072,735 | |||||||||
| Advance from Federal Home Loan Bank | 200,000 | 200,000 | 200,000 | 200,000 | - | ||||||||||||||
| Subordinated debt issuance, net | 148,766 | 148,706 | 148,647 | 148,588 | 148,529 | ||||||||||||||
| Commitments to fund investment in affordable housing partnerships | 18,873 | 23,327 | 24,874 | 30,645 | 20,956 | ||||||||||||||
| Other liabilities | 96,652 | 94,209 | 88,958 | 73,534 | 79,268 | ||||||||||||||
| Total liabilities | $ | 6,884,438 | $ | 6,811,688 | $ | 6,692,152 | $ | 6,531,100 | $ | 6,321,488 | |||||||||
| Equity: | |||||||||||||||||||
| Common stock, no par value | $ | 210,882 | $ | 210,882 | $ | 210,882 | $ | 210,882 | $ | 210,882 | |||||||||
| Additional paid-in capital | 108,853 | 105,105 | 103,235 | 101,088 | 99,603 | ||||||||||||||
| Treasury stock | (334,490 | ) | (293,406 | ) | (277,351 | ) | (271,005 | ) | (214,406 | ) | |||||||||
| Retained earnings | 802,308 | 780,637 | 755,587 | 728,891 | 705,360 | ||||||||||||||
| Accumulated other comprehensive income | (17,354 | ) | (13,741 | ) | (16,711 | ) | (22,196 | ) | (22,835 | ) | |||||||||
| Total shareholders' equity | $ | 770,199 | $ | 789,477 | $ | 775,642 | $ | 747,660 | $ | 778,604 | |||||||||
| Total liabilities and shareholders' equity | $ | 7,654,637 | $ | 7,601,165 | $ | 7,467,794 | $ | 7,278,760 | $ | 7,100,092 | |||||||||
| PREFERRED BANK | |||||||||||||||||||||||
| QUARTER-TO-DATE AVERAGE BALANCES, YIELD AND RATES | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three months ended March 31, | Three months ended December 31, | Three months ended March 31, | |||||||||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||||||||
| Interest | Average | Interest | Average | Interest | Average | ||||||||||||||||||
| Average | Income or | Yield/ | Average | Income or | Yield/ | Average | Income or | Yield/ | |||||||||||||||
| Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||
| ASSETS | (Dollars in thousands) | ||||||||||||||||||||||
| Interest earning assets: | |||||||||||||||||||||||
| Loans(1,2) | $ | 6,051,465 | $ | 103,382 | 6.93 | % | $ | 5,947,986 | $ | 109,747 | 7.32 | % | $ | 5,556,521 | $ | 101,491 | 7.41 | % | |||||
| Investment securities(3) | 580,248 | 5,712 | 3.99 | % | 586,950 | 5,883 | 3.98 | % | 402,754 | 4,093 | 4.12 | % | |||||||||||
| Federal funds sold | 20,507 | 192 | 3.80 | % | 20,337 | 209 | 4.08 | % | 20,222 | 228 | 4.57 | % | |||||||||||
| Other earning assets | 785,012 | 7,681 | 3.97 | % | 884,494 | 8,886 | 3.99 | % | 800,941 | 8,816 | 4.46 | % | |||||||||||
| Total interest earning assets | 7,437,232 | 116,967 | 6.38 | % | 7,439,767 | 124,725 | 6.65 | % | 6,780,438 | 114,628 | 6.86 | % | |||||||||||
| Deferred loan fees, net | (8,334 | ) | (9,739 | ) | (9,189 | ) | |||||||||||||||||
| Allowance for credit losses on loans | (78,986 | ) | (74,738 | ) | (71,550 | ) | |||||||||||||||||
| Noninterest earning assets: | |||||||||||||||||||||||
| Cash and due from banks | 10,685 | 11,055 | 11,513 | ||||||||||||||||||||
| Bank furniture and fixtures | 8,509 | 7,887 | 8,439 | ||||||||||||||||||||
| Right of use assets | 30,195 | 28,344 | 15,201 | ||||||||||||||||||||
| Other assets | 164,404 | 183,364 | 170,397 | ||||||||||||||||||||
| Total assets | $ | 7,563,705 | $ | 7,585,940 | $ | 6,905,249 | |||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
| Interest bearing liabilities: | |||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||
| Interest bearing demand and savings | $ | 2,192,798 | $ | 15,174 | 2.81 | % | $ | 2,249,065 | $ | 17,007 | 3.00 | % | $ | 2,079,477 | $ | 16,659 | 3.25 | % | |||||
| TCD | 1,773,086 | 16,886 | 3.86 | % | 1,725,674 | 17,220 | 3.96 | % | 1,482,324 | 15,640 | 4.28 | % | |||||||||||
| Other time certificates | 1,678,838 | 16,487 | 3.98 | % | 1,676,630 | 17,323 | 4.10 | % | 1,682,442 | 18,247 | 4.40 | % | |||||||||||
| Total interest bearing deposits | 5,644,722 | 48,547 | 3.49 | % | 5,651,369 | 51,551 | 3.62 | % | 5,244,243 | 50,546 | 3.91 | % | |||||||||||
| Advance from Federal Home Loan Bank | 200,000 | 1,690 | 3.43 | % | 200,000 | 1,783 | 3.54 | % | - | - | 0.00 | % | |||||||||||
| Subordinated debt, net | 148,728 | 1,325 | 3.61 | % | 148,673 | 1,325 | 3.54 | % | 148,492 | 1,325 | 3.62 | % | |||||||||||
| Total interest bearing liabilities | 5,993,452 | 51,562 | 3.49 | % | 6,000,042 | 54,658 | 3.61 | % | 5,392,735 | 51,871 | 3.90 | % | |||||||||||
| Noninterest bearing liabilities: | |||||||||||||||||||||||
| Demand deposits | 666,724 | 684,873 | 641,920 | ||||||||||||||||||||
| Lease liability | 34,885 | 32,626 | 18,963 | ||||||||||||||||||||
| Other liabilities | 73,713 | 82,818 | 72,292 | ||||||||||||||||||||
| Total liabilities | 6,768,774 | 6,800,359 | 6,125,910 | ||||||||||||||||||||
| Shareholders’ equity | 794,931 | 785,581 | 779,339 | ||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 7,563,705 | $ | 7,585,940 | $ | 6,905,249 | |||||||||||||||||
| Net interest income | $ | 65,405 | $ | 70,067 | $ | 62,757 | |||||||||||||||||
| Net interest spread | 2.89 | % | 3.04 | % | 2.96 | % | |||||||||||||||||
| Net interest margin | 3.57 | % | 3.74 | % | 3.75 | % | |||||||||||||||||
| Cost of Deposits: | |||||||||||||||||||||||
| Noninterest bearing demand deposits | $ | 666,724 | $ | 684,873 | $ | 641,920 | |||||||||||||||||
| Interest bearing deposits | 5,644,722 | 48,547 | 3.49 | % | 5,651,369 | 51,551 | 3.62 | % | 5,244,243 | 50,546 | 3.91 | % | |||||||||||
| Total Deposits | $ | 6,311,446 | $ | 48,547 | 3.12 | % | $ | 6,336,242 | $ | 51,551 | 3.23 | % | $ | 5,886,163 | $ | 50,546 | 3.48 | % | |||||
| 1) Includes non-accrual loans and loans held for sale | |||||||||||||||||||||||
| 2) Net loan fee income of | |||||||||||||||||||||||
| 3) Yields on securities have been adjusted to a tax-equivalent basis | |||||||||||||||||||||||
| Preferred Bank | |||||||
| Loan and Credit Quality Information | |||||||
| Allowance For Credit Losses History | |||||||
| Quarter Ended | Year Ended | ||||||
| March 31, 2026 | December 31, 2025 | ||||||
| (Dollars in 000's) | |||||||
| Allowance For Credit Losses | |||||||
| Balance at Beginning of Period | $ | 78,992 | $ | 71,477 | |||
| Charge-Offs | |||||||
| Commercial & Industrial | 2,545 | 8 | |||||
| Mini-perm Real Estate | 3,833 | 1,749 | |||||
| Total Charge-Offs | 6,378 | 1,757 | |||||
| Recoveries | |||||||
| Commercial & Industrial | 73 | 172 | |||||
| Mini-perm Real Estate | 849 | - | |||||
| Total Recoveries | 922 | 172 | |||||
| Net Charge-Offs | 5,456 | 1,585 | |||||
| Provision for Credit Losses: | 1,500 | 9,100 | |||||
| Balance at End of Period | $ | 75,036 | $ | 78,992 | |||
| Average Loans Held for Investment | $ | 6,037,241 | $ | 5,721,077 | |||
| Loans Held for Investment at End of Period | $ | 6,046,544 | $ | 6,054,264 | |||
| Net Charge-Offs to Average Loans | 0.37 | % | 0.03 | % | |||
| Allowances for Credit Losses to Loans at End of Period | 1.24 | % | 1.30 | % | |||
