Preferred Bank · NASDAQ:PFBC
Preferred Bank — 2025 U.S. Bank and Banking on Tech Conference
24 slides from Preferred Bank's conference presentation, Sep 3, 2025
Slide 1: 2025 U.S. Bank and Banking on Tech Conference
2025 U.S. Bank and Banking on Tech Conference Sep 3, 2025
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 ➢ $7.3 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 $94.00 (8/25/25) Shares O/S 12.42mm Market Cap $1.17bb Avg Volume (50-day) 88.7m shares Raymond James & Co D.A. Davidson Annual Dividend: $3.00 Piper Sandler Companies Current Yield: 3.19% 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
| PREFERRED BANK
Slide 8: Superior ROE and Operating Efficiency
Superior ROE and Operating Efficiency ROE 29.00% 23.32% 23.19% 24.00% 21.21% 19.36% 19.00% 18.70% 19.00% 18.00% 16.48% 15.58% 14.00% 9.00% 4.00% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Efficiency Ratio 40.00% 35.00% 33.67% 31.02% 31.98% 30.00% 27.29% 27.99% 28.11% 28.
Slide 9: Consistent Loan and Deposit Growth
Consistent Loan and Deposit Growth….. Total Loans $5,800 $5,740 $5,643 $5,634 $5,572 $5,429 $5,400 $5,326 $5,274 $5,119 $5,128 $5,000 $4,600 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $6,400 Total Deposits $6,078 $6,073 $6,000 $5,879 $5,917 $5,868 $5,802 $5,683 $5,709 $5
Slide 10: 5-Year Total Return vs S&P West Banks > $5bb
5-Year Total Return vs S&P West Banks > $5bb 250.0% 244.4% 230.0% 216.4% 214.8% 210.0% 190.0% 170.0% 136.3% 150.0% 128.4% 130.0% 120.3% 105.4% 110.0% 100.5% 89.4% 90.0% 80.6% 72.9% 48.3% 44.6% 42.7% 70.0% 28.8% 53.1% 34.6% 44.6% 28.4% 50.0% 22.5% 30.0% 21.7% 4.9% 10.0% 2.6% -10.0% -30.0% -0.9% -16.7
Slide 11: Capital
| PREFERRED P BANK =
Slide 12: Capital Ratios – June 30, 2025
Capital Ratios – June 30, 2025 Well Capitalized Regulatory Guidance 16.00% 14.43% 14.00% 12.00% 11.18% 11.18% 10.73% 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: Credit Overview
Credit Overview
Slide 15: Loan Portfolio Composition – June 30, 2025
Loan Portfolio Composition – June 30, 2025 • Diverse loan portfolio – 26.3% 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 Com
Slide 16: Real Estate Loan Portfolio – June 30, 2025
Real Estate Loan Portfolio – June 30, 2025 Portfolio Characteristics Other 1-4 Family 7.5% 20 Largest Relationships 24.6% of total CRE 4.9% Wtd Avg Maturity 2.5 Years Wtd Avg Coupon 7.57% Hotel/Motel Average DCR 1.63x 16.2% Wtd Average LTV 55.7% Multi- Family 20.2% Industrial 13.4% Retail 24.0% Offi
Slide 17: C&I Portfolio Detail – June 30, 2025
C&I Portfolio Detail – June 30, 2025 Data Processing, Hosting Secondary Market Financing Services 1.5% 11.4% Media Assets Service 1.9% 30.7% Manufacturing 5.9% Securities Brokerage 3.4% Food Service 1.5% Other 15.1% Healthcare Food distribution 7.1% 2.6% Electronics Motion Pictures 2.4% 7.6% Merchan
Slide 18: NPA’s
NPA’s Nonperforming Assets $100,000 92,532 $90,000 $80,000 $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 $17,151 $10,000 $0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $65.5mm of NPA’s are comprised of the two aforementio
Slide 19: Recent Developments – NPA’s
Recent Developments – NPA’s • Of the $50.2mm in nonaccrual loans reported as of June 30, 2025, below are some details: • The majority of the nonaccrual balance is a $37.9mm loan secured by a multi-family property that is nearly 100% occupied. The most recent value from an appraisal from November 202
Slide 20: Deposits
| PREFERRED P BANK =
Slide 21: Deposit Composition – June 30, 2025
Deposit Composition – June 30, 2025 DDA 11.1% CD's > $250k 27.7% MMDA 33.0% CD's < $250k Savings 27.7% 0.6% Characteristics Percentage DDA 11.1% MRQ Cost of Deposits 3.42% LQA Growth Rate 0.37% Core Deposits / Total Deposits 57.0% 21
Slide 22: 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 is currently finalizing a lease agreement with the owner of a retail property in Cupertino, California with the intent to move the Silicon
Slide 23: Summary
Summary • Preferred Bank has a strong capital base with 10.3% tangible common equity • Since June of 2023, the Bank repurchased 2,207,984 shares at an average price of $70.71. This represents 15.3% of total outstanding shares which has significantly increased EPS over this period. The Bank still has
Slide 24: Questions?
PREFERRED Bank Questions? 24
Preferred Bank — 2025 U.S. Bank and Banking on Tech Conference on 6ix