Preferred Bank

FDIC-insured bank with its head office in Los Angeles, California, established in 1991 according to the FDIC.

Preferred Bank reported total assets of $7.7 bn at Q2 2026, up 6.2% on a year earlier, the 201st largest of 497 banks in our US coverage. The CET1 capital ratio at Preferred Bank was 11.06%, and the uninsured share of Preferred Bank was 50.28%. Source: FDIC Call Reports.

Key takeaways

  • On net interest margin, Preferred Bank slipped from 152nd to 247th among 500 US banks between and (1 = highest; FDIC Call Reports).
  • Preferred Bank reports one of the lowest efficiency ratio readings among banks of $1 bn to $10 bn: 33.01% at , where the median of the 339 banks is 56.87% (FDIC Call Reports).
Total assets
$7.7 bn
+6.2% on a year earlier
Rank 201 of 497 1 = highest
CET1 capital ratio
11.06%
-0.12 pp on a year earlier
Rank 409 of 448 1 = highest
Return on equity
16.49%
+0.01 pp on a year earlier
Rank 90 of 500 1 = highest
Uninsured share of deposits
50.28%
+2.17 pp on a year earlier
Rank 82 of 500 1 = highest

What sets Preferred Bank apart

How large is Preferred Bank?

The balance sheet of Preferred Bank at : assets $7.7 bn, deposits $6.5 bn, net loans $6.2 bn (loans equal to 95.77% of deposits). Securities make up 7.0% of total assets at Preferred Bank. Since , when Preferred Bank held $2.7 bn, its assets grew 188.1%. In the year to , deposits at Preferred Bank rose 6.5% while its total assets rose 6.2%. At , Preferred Bank employed 321 full-time equivalent staff across 16 offices, about $24.1 mn of assets per employee and $404.8 mn of deposits per office.

How much funding at Preferred Bank is uninsured?

At Preferred Bank, uninsured deposits (above the FDIC limit) made up 50.28% of domestic deposits at (+2.17 pp on a year earlier); Preferred Bank ranks 82nd of 500 on this measure. In dollars, Preferred Bank estimated $3.3 bn of uninsured deposits.

Key facts, Q2 2026

MetricValueChange from a year earlierUS rank
Total deposits$6.5 bn+6.5%196th of 499
Net loans and leases$6.2 bn+9.3%180th of 500
Loan-to-deposit ratio95.77%+2.51 pp96th of 500
Tier 1 leverage ratio10.55%-0.18 pp221st of 500
Total risk-based capital ratio13.74%-0.69 pp277th of 448
Net interest margin3.64%-0.13 pp247th of 500
Return on assets (ROA)1.69%-0.08 pp100th of 500
Efficiency ratio33.01%+1.00 pp30th of 500 (1 = lowest)
Unrealized gain/loss on held-to-maturity securitiesLoss of $1.1 mnNarrowed by $90,000
Unrealized gain/loss on available-for-sale securitiesLoss of $28.5 mnNarrowed by $3.1 mn
Noncurrent loans to total loans1.57%+0.66 pp434th of 500 (1 = lowest)
Net charge-offs to average loans0.18%+0.18 pp330th of 500 (1 = lowest)

US rank of Preferred Bank: 1 = highest unless marked 1 = lowest.

Balance sheet

Preferred Bank: assets, deposits and loans

USD bn
Total assets, deposits and net loans of Preferred Bank each quarter; total assets were $7.7 bn at Q2 2026$1.8bn$3.4bn$4.9bn$6.5bn$8.1bn20182020202220242026Total assets$7.7bnDeposits$6.5bnNet loans$6.2bnTotal assets, deposits and net loans of Preferred Bank each quarter; total assets were $7.7 bn at Q2 2026$1.8bn$3.9bn$6.0bn$8.1bn20202024
  • Total assets $7.7bn
  • Deposits $6.5bn
  • Net loans $6.2bn
to . FDIC Call Reports.

Capital and securities

The CET1 ratio of Preferred Bank stood at 11.06% in , -0.12 pp year on year. Low and high at Preferred Bank since : 9.13% () to 11.86% (). Equity capital of Preferred Bank at : $793.5 mn, or 10.3% of total assets. Preferred Bank also reported a total capital ratio of 13.74% for , and a tier 1 leverage ratio of 10.55%.

On held-to-maturity securities, Preferred Bank carried an unrealized loss of $1.1 mn at , equal to 0.1% of equity capital. The loss narrowed by $90,000 over the year. Its deepest point: $2.6 mn in . The available-for-sale portfolio of Preferred Bank showed an unrealized loss of $28.5 mn at ; the loss narrowed by $3.1 mn over the year.

Preferred Bank: capital ratios

Percent
CET1, total risk-based capital and tier 1 leverage ratios of Preferred Bank, Q1 2016 to Q2 20268.1%10%12%14%16%20182020202220242026Total capital14%CET111%Tier 1 leverage11%CET1, total risk-based capital and tier 1 leverage ratios of Preferred Bank, Q1 2016 to Q2 20268.1%11%13%16%20202024
  • Total capital 14%
  • CET1 11%
  • Tier 1 leverage 11%
to . FDIC Call Reports.

Preferred Bank: unrealized securities gains and losses

USD bn
Unrealized gains and losses on available-for-sale and held-to-maturity securities of Preferred Bank, Q1 2016 to Q2 2026-$58mn-$40mn-$22mn-$4mn$14mn20182020202220242026Held to maturity-$1mnAvailable for sale-$28mnUnrealized gains and losses on available-for-sale and held-to-maturity securities of Preferred Bank, Q1 2016 to Q2 2026-$58mn-$34mn-$10mn$14mn20202024
  • Available for sale -$28mn
  • Held to maturity -$1mn
to . FDIC Call Reports.

Profitability and loan quality

For the year to , Preferred Bank earned a return on equity of 16.49%; return on assets: 1.69%. Net interest margin at Preferred Bank: 3.64%, -0.13 pp in a year. Preferred Bank net income: $64.7 mn, up 2.9% year on year. The efficiency ratio of Preferred Bank was 33.01%: about 33 cents cost per revenue dollar, against 60 cents at the median peer.

At , noncurrent loans were 1.57% of total loans at Preferred Bank; net charge-offs: 0.18% of average loans. Gross loans and leases at Preferred Bank: $6.3 bn, up 9.3% in a year.

Preferred Bank: profitability

Percent, annualized
Return on equity, net interest margin and return on assets of Preferred Bank, Q1 2016 to Q2 2026-1.4%5.2%12%18%25%20182020202220242026Return on equity16%Net interest margin3.6%Return on assets1.7%Return on equity, net interest margin and return on assets of Preferred Bank, Q1 2016 to Q2 2026-1.4%7.4%16%25%20202024
  • Return on equity 16%
  • Net interest margin 3.6%
  • Return on assets 1.7%
to . FDIC Call Reports.

Peer group of Preferred Bank

The peer group of Preferred Bank is the 6 banks nearest to it by total assets at : 3 larger and 3 smaller. Of the peers, 3 share the charter type of Preferred Bank (state nonmember bank), 6 sit in the same size group ($1 bn to $10 bn) and 0 have head offices in California. Against them, Preferred Bank shows CET1 ratio 11.06% against a peer median of 11.71%, return on equity 16.49% against a peer median of 11.34% and uninsured deposit share 50.28% against a peer median of 39.60%.

BankCharterStateTotal assetsCET1 ratioReturn on equityUninsured share
Bankers Trust CompanyState nonmember bankIA$7.8 bn10.95%11.28%57.36%
Stockman Bank of MontanaState nonmember bankMT$7.7 bn12.01%19.71%40.06%
Bangor Savings BankState-chartered stock savings bankME$7.7 bn10.39%5.26%19.67%
Preferred BankState nonmember bankCA$7.7 bn11.06%16.49%50.28%
Equity BankState member bankKS$7.7 bn13.08%11.77%27.12%
Kearny BankState-chartered stock savings bankNJ$7.7 bn13.44%4.90%39.15%
Ocean BankState nonmember bankFL$7.6 bn11.41%11.41%45.92%

. FDIC Call Reports.

Last eight quarters

Two years at Preferred Bank, to : assets +12.5%, deposits +10.3%, equity +5.8%. Staff 317 to 321; offices 15 to 16.

MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026
Total assets$6.9 bn$6.9 bn$7.1 bn$7.3 bn$7.5 bn$7.6 bn$7.7 bn$7.7 bn
Total deposits$5.9 bn$5.9 bn$6.1 bn$6.1 bn$6.2 bn$6.4 bn$6.4 bn$6.5 bn
Bank equity capital$750.1 mn$763.2 mn$778.6 mn$747.7 mn$775.6 mn$789.5 mn$770.2 mn$793.5 mn
CET1 ratio11.66%11.80%11.86%11.18%11.34%11.26%10.87%11.06%
Return on equity (ROE)18.68%17.99%15.58%16.48%17.19%17.33%15.97%16.49%
Uninsured share of domestic deposits45.37%46.36%46.61%48.10%50.02%50.29%49.46%50.28%
Full-time equivalent employees317323323323319324322321
Number of offices1515161616161616

FDIC Call Reports.

Mergers and acquisitions

The FDIC history of Preferred Bank, oldest first; figures before and after each event are not like for like.

  1. . Absorbed United International Bank (FDIC certificate 57987).

Questions and identifiers

What were the total assets of Preferred Bank?

Preferred Bank reported $7.7 bn at in its Call Report. That makes Preferred Bank the 201st largest of 497 banks in our US coverage.

Is Preferred Bank profitable?

Preferred Bank reported net income of $64.7 mn for the year to ; annualized return on equity: 16.49%. So yes: Preferred Bank made a profit over these months.

When is data for Preferred Bank next updated?

Figures from Preferred Bank for are due after .

Where can I check the figures for Preferred Bank?

In the FDIC BankFind Suite record for certificate 33539, and in the Call Reports of Preferred Bank (RSSD ID 1918344) at the FFIEC Central Data Repository.