Preferred Bank · NASDAQ:PFBC
Preferred Bank — Q3 2025 Earnings Presentation
24 slides from Preferred Bank's earnings presentation, November 2025
Slide 1: Q3 2025 Investor Deck
| PREFERRED : P Q3 2025 Investor Deck
Slide 2: Forward Looking Statements
Forward Looking Statements During the course of this presentation, management may make statements regarding events or future financial performance of the Bank. These statements may include comments with respect to our objectives and strategies, and the results of our operations and our business. How
Slide 3: Franchise Overview: Preferred Bank
Franchise Overview: Preferred Bank ➢ $7.5 billion commercial bank headquartered in Los Angeles, Preferred Bank (NASDAQ: PFBC) CA, targeting small/medium businesses and high net worth Headquarters Los Angeles, CA individuals within footprint lending Founded / IPO 1991 / 2005 ➢ Services customers thro
Slide 4: PFBC Stock Profile
PFBC Stock Profile Ticker Symbol NASDAQ: PFBC Recent Price $92.89 (11/13/25) Shares O/S 12.35mm Market Cap $1.14bb Avg Volume (50-day) 78.8m shares Raymond James & Co D.A. Davidson Annual Dividend: $3.00 Piper Sandler Companies Current Yield: 3.23% Janney Montgomery Scott Stephens Co. 4
Slide 5: Management Overview and Business Model
Management Overview and Business Model Long-Tenured Management Team with Average of [~17] Years in Current Roles How We Execute – Business Model Li Yu ➢ Founded Preferred Bank in 1991 ➢ Largest individual shareholder ➢ Ultra high-touch service – our frontline personnel Chairman & CEO 39 years of ban
Slide 6: Branch Map
Branch Map ➢ Primarily serving ethnic Chinese in: Branch light model • San Gabriel Valley area of Southern with average branch California (Alhambra, Arcadia, size of $380mm in Diamond Bar, City of Industry) deposits • South Bay (Torrance) • Irvine (2) • San Francisco (Business District) • Flushing,
Slide 7: Performance
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Slide 8: Superior ROE and Operating Efficiency
Superior ROE and Operating Efficiency ROE 29.00% 23.19% 24.00% 21.21% 19.36% 19.00% 18.70% 19.00% 18.00% 16.48% 17.19% 15.58% 14.00% 9.00% 4.00% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Efficiency Ratio 40.00% 35.00% 33.67% 31.02% 31.98% 30.68% 30.00% 27.99% 28.11% 28.
Slide 9: Consistent Loan and Deposit Growth
Consistent Loan and Deposit Growth….. Total Loans $6,000 $5,872 $5,740 $5,643 $5,634 $5,572 $5,600 $5,429 $5,326 $5,274 $5,200 $5,128 $4,800 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 $6,600 Total Deposits $6,230 $6,200 $6,073 $6,078 $5,879 $5,917 $5,868 $5,802 $5,800 $5
Slide 10: 5-Year Total Return vs S&P West Banks > $5bb
5-Year Total Return vs S&P West Banks > $5bb 290.0% 274.0% 268.5% 270.0% 263.2% 250.0% 229.5% 230.0% 203.6% 210.0% 190.0% 180.1%169.6% 170.0% 161.3% 150.0% 140.2% 130.0% 112.9% 82.4% 108.8% 80.7% 110.0% 94.0% 70.8% 58.7% 90.0% 77.2% 59.5% 70.0% 38.6% 37.7% 50.0% 29.5% 2.4% 31.4% 30.0% 8.4% 10.0% -10
Slide 11: Capital
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Slide 12: Capital Ratios – September 30, 2025
Capital Ratios – September 30, 2025 Well Capitalized Regulatory Guidance 16.00% 14.56% 14.00% 12.00% 11.34% 11.34% 10.66% 10.00% 10.00% 8.00% 8.00% 6.00% 6.50% 5.00% 4.00% Tier 1 Leverage Ratio Common Equity Tier 1 Tier 1 Capital Ratio Total Capital Ratio Ratio 12
Slide 13: Tangible Book Value per Share
Tangible Book Value per Share TBVPS – 10 Years $65.00 $60.19 $60.00 $54.23 $55.00 $50.00 $47.04 $45.00 $40.44 $40.00 $37.36 $35.00 $32.73 $29.50 $30.00 $25.14 $25.00 $20.99 $20.00 $20.00 $15.00 30-Jun-16 30-Jun-17 30-Jun-18 30-Jun-19 30-Jun-20 30-Jun-21 30-Jun-22 30-Jun-23 30-Jun-24 30-Jun-25 CAGR o
Slide 14: Stock Repurchase 2023-2025
Stock Repurchase 2023-2025 • As deposit growth has slowed, total asset growth slows concurrently, which leads to outsized capital ratios, even after dividends, due to the Bank’s superior profitability metrics. This is a highly efficient way to return money to the shareholders in the form of a higher
Slide 15: Earnings Surprise History (Piper Sandler)
PIPER|SANDLER October 2, 2025 Earnings Surprise History Sorted highest-to-lowest by upside surprise Last 20 Quarters Banks & Thrif 1. LendingClub Corporation [Ke 89 oO 2. Preferred Bank PFBC 89 o 11 3. CVB Financial Corp. CVBF 84 oO 16 4. Private Bancorp of America, Inc. PBAM 84 5 11 5. Wells Fargo
Slide 16: Credit Overview
Credit Overview
Slide 17: Loan Portfolio Composition – September 30, 2025
Loan Portfolio Composition – September 30, 2025 • Diverse loan portfolio – 26.7% of loans are C & I • High level of diversification among industries • Above-average number of Senior Lenders and Business Development staff allow PFBC to look at a high level of deal flow • Drives strong loan yields Loa
Slide 18: Real Estate Loan Portfolio – September 30, 2025
Real Estate Loan Portfolio – September 30, 2025 Portfolio Characteristics Other 1-4 Family 7.5% 20 Largest Relationships 23.8% of total CRE 5.2% Wtd Avg Maturity 2.5 Years Wtd Avg Coupon 7.40% Hotel/Motel Average DCR 1.60x 16.2% Wtd Average LTV 55.1% Multi- Family 19.1% Industrial 12.9% Retail 23.7%
Slide 19: C&I Portfolio Detail – Sep 30, 2025
C&I Portfolio Detail – Sep 30, 2025 Data Processing, Hosting Secondary Market Financing Services 1.4% 10.3% Media Assets 1.8% Service 30.6% Manufacturing 6.2% Securities Brokerage 3.2% Food Service 1.4% Other 15.8% Food distribution Healthcare 2.5% 9.1% Electronics Motion Pictures 2.4% Merchant Whol
Slide 20: NPA's
NPA’s Nonperforming Assets 100,000 92,532 90,000 80,000 70,215 70,000 66,041 60,000 57,267 50,000 45,435 40,000 36,104 35,031 34,444 30,000 24,358 20,000 10,000 - Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 * $37.1mm of NPA’s were sold in early October for a sizeable gain
Slide 21: Deposits
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Slide 22: Deposit Composition – September 30, 2025
Deposit Composition – September 30, 2025 DDA 10.5% CD's > $250k MMDA 35.4% CD's < $250k 26.3% Savings 0.5% Characteristics Percentage DDA 10.5% MRQ Cost of Deposits 3.37% LQA Growth Rate 2.50% Core Deposits / Total Deposits 57.0% 22
Slide 23: Recent Expansion
Recent Expansion • On April 7, 2025, the Bank opened a full-service Branch office In Manhattan, NY in the prestigious Penn 2 building at Penn Station. • The Bank has signed a lease agreement with the owner of a retail property in Cupertino, California with the intent to move the Silicon Valley LPO t
Slide 24: Summary
Summary • Preferred Bank has a strong capital base with 10.4% tangible common equity • Since June of 2023, the Bank repurchased 2,404,145 shares at an average price of $72.17. This represents 16.7% of total outstanding shares which has significantly increased EPS over this period. The Bank still has