Preferred Bank · NASDAQ:PFBC
Preferred Bank — D.A. Davidson 28th Annual Financial Institutions Conference 2026
24 slides from Preferred Bank's conference presentation, May 5, 2026
Slide 1: D.A. Davidson 28th Annual Financial Institutions Conference
D.A. Davidson 28th Annual Financial Institutions Conference May 5, 2026
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 ➢ $7.7 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 $94.97 (4/23/26) Shares O/S 11.84mm Market Cap $1.12bb Avg Volume (50-day) 106.5m shares D.A. Davidson Brean Capital Annual Dividend: $3.20 Stephens Co Current Yield: 3.37% Raymond James & Co Piper Sandler 4
Slide 5: Management Overview and Business Model
Management Overview and Business Model Long-Tenured Management Team with Average of [~18] 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 40 years of ban
Slide 6: Branch Map
Branch Map ➢ Primarily serving ethnic Chinese in: ▪ San Gabriel Valley area of Southern California (Alhambra, Arcadia, Diamond Bar, City of Industry) ▪ South Bay (Torrance) ▪ Irvine (2) ▪ San Francisco (Business District) ▪ Flushing, NY ▪ Manhattan ▪ Houston, TX ➢ Primarily serving mainstream client
Slide 7: Performance
| PREFERRED BANK
Slide 8: Superior ROE and Operating Efficiency
Superior ROE and Operating Efficiency ROE 22.00% 20.00% 19.36% 19.00% 18.70% 18.00% 17.59% 18.00% 17.19% 16.48% 15.58% 15.89% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Efficiency Ratio 40.00% 33.67% 33.81% 35.00% 31.98% 31.0
Slide 9: Consistent Loan and Deposit Growth
Consistent Loan and Deposit Growth….. Total Loans $6,200 $6,123 $6,054 $5,872 $5,800 $5,740 $5,643 $5,634 $5,572 $5,429 $5,400 $5,326 $5,000 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 $6,600 $6,420 Total Deposits $6,345 $6,230 $6,200 $6,073 $6,078 $5,879 $5,917 $5,868 $5
Slide 10: 5-Year Total Return vs S&P West Banks > $5bb
5-Year Total Return vs S&P West Banks > $5bb 120.0% 100.1% 100.0% 81.0% 67.1% 80.0% 67.1% 64.0% 60.0% 49.4% 43.5% 40.0% 34.1% 32.9% 16.0% 11.9% 11.6% 19.7% 18.3% 6.3% 20.0% 1.8% 9.0% 0.0% -20.0% -4.1% -6.0% -1.7% -9.0% -16.8% -19.6% -17.8% -40.0% -60.0% 5-Year Period Ending March 31, 2026 -61.0% -73
Slide 11: Capital
| PREFERRED P BANK =
Slide 12: Capital Ratios – March 31, 2026
Capital Ratios – March 31, 2026 Well Capitalized Regulatory Guidance 16.00% 13.98% 14.00% 12.00% 10.87% 10.87% 10.37% 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 2023-2026
Stock Repurchase 2023-2026 • 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. Stock buybacks are a highly efficient way to return money to the shareholders in the form
Slide 15: Credit Overview
Credit Overview
Slide 16: Loan Portfolio Composition – March 31, 2026
Loan Portfolio Composition – March 31, 2026 • Diverse loan portfolio – 26.0% 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 Loan Co
Slide 17: Real Estate Loan Portfolio – March 31, 2026
Real Estate Loan Portfolio – March 31, 2026 Portfolio Characteristics Other 1-4 Family 7.7% 20 Largest Relationships 24.7% of total CRE 4.3% Wtd Avg Maturity 2.5 Years Wtd Avg Coupon 7.05% Average DCR 1.65x Hotel/Motel Wtd Average LTV 56.2% 18.5% Multi- Family 18.2% Industrial 13.1% Retail 24.1% Off
Slide 18: C&I Portfolio Detail – March 31, 2026
C&I Portfolio Detail – March 31, 2026 Real Estate Credit Data Processing, Hosting 2.5% Services 12.2% Service 27.6% Wired Telecommunications Carriers 3.5% Manufacturing 5.6% Food Service 1.4% Securities Brokerage 3.2% Healthcare Other 8.8% 16.2% Food distribution Motion Pictures 2.6% 7.1% Electronic
Slide 19: NPA's
NPA’s Nonperforming Assets 172,061 170,000 150,000 130,000 110,000 92,532 90,000 70,215 70,000 66,041 57,267 54,799 50,000 35,031 34,444 30,000 24,358 10,000 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 $48.5mm in NPA’s were sold on April 1, 2026, at par 19
Slide 20: NPA Summary
NPA Summary Type Balance Subtotals Appraised Value C&I $ 4,519,590 46,156 63,744 3,526 $ 4,633,016 SFR $ 461,638 780,000 144,542 1,275,000 924,624 1,308,000 658,067 967,246 $ 2,188,871 CRE $ 649,036 1,550,000 4,037,500 4,250,000 3,690,251 6,260,000 6,265,056 7,100,000 19,500,000 48,300,000 19,950,00
Slide 21: Deposits
| PREFERRED P BANK =
Slide 22: Deposit Composition – March 31, 2026
Deposit Composition – March 31, 2026 DDA 11.2% CD's > $250k MMDA 34.3% CD's < $250k Savings 26.2% 0.4% Characteristics Percentage DDA 11.2% MRQ Cost of Deposits 3.12% LQA Growth Rate 4.53% Core Deposits / Total Deposits 58.0% 22
Slide 23: Recent Expansion
Recent Expansion • The Bank has signed a lease agreement with the owner of a retail property in Cupertino, California which is currently being improved to house our new Silicon Valley full service branch office. • The Bank’s San Francisco – Richmond branch has moved from Geary Street (Central Richmo
Slide 24: Summary
Summary • Preferred Bank has a strong capital base with 10.1% tangible common equity • Since June of 2023, the Bank repurchased 2,806,444 shares at an average price of $74.58. This represents 19.4% of total outstanding shares which has significantly increased EPS over this period. The Bank still has
Preferred Bank — D.A. Davidson 28th Annual Financial Institutions Conference 2026 on 6ix