Preferred Bank Business Summary

Preferred Bank (PFBC) functions as a high-performance commercial bank primarily generating revenue through net interest income (NII) sourced from a concentrated portfolio of real estate and business loans. Its core business segments are categorized into Commercial Real Estate (CRE), which includes construction and multi-family lending, and Commercial and Industrial (C&I) lending, with a specific emphasis on international trade finance and asset-based lending. The bank caters predominantly to the Chinese-American business community in California and New York, leveraging a high-touch service model to secure low-cost deposits. Within the competitive landscape of Asian-American focused lenders, PFBC competes directly with East West Bancorp (EWBC), Cathay General Bancorp (CATY), and Hope Bancorp (HOPE), positioning itself as a leaner, more efficient operator with consistently higher-than-average return on assets (ROA) and net interest margins compared to its larger rivals. The bank’s strategic direction is led by founder, Chairman, and CEO Li Yu, a veteran of the California banking industry who previously served as Chairman of California Commerce Bank and is a past president of the National Association of Chinese American Bankers. The executive leadership team includes President and COO Wellington Chen, who manages day-to-day operations and credit administration, and Executive Vice President and CFO Edward J. Czajka, who directs the firm’s financial strategy and investor relations. This core team is recognized for maintaining one of the lowest efficiency ratios in the industry. Preferred Bank’s institutional stability is reinforced by a shareholder base featuring major asset managers such as BlackRock, Vanguard, and State Street, alongside a board of directors composed of influential leaders in real estate and international commerce.