Headquartered in Los Angeles, California, Preferred Bank (NASDAQ: PFBC) (“Preferred Bank” or “the bank”) is an FDIC designated minority depository institution whose genesis was to serve the Chinese American community, though has gradually evolved into more of a mainstream bank (as of YE25, ethnic Chinese clients account for ~45% of deposits and ~20% of loans).
The bank currently operates 16 branches across the U.S., predominantly located in SoCal, and, to a lesser extent, NYC, San Francisco, and Houston. Contemporary growth has been organic, with no M&A activity in 10+ years.
The bank’s loan portfolio is commercially oriented, with investor CRE (including MF and C&D) constituting the largest segment at 58%, followed by C&I (30%), and residential mortgage (12%), mainly non-QM loans.
Key Credit Considerations
Preferred Bank’s ratings continue to be anchored by its strong earnings profile, with 1Q26 ROA of 1.64% and NIM…
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