Preferred Bank (PFBC) investor relations material

Franchise and market overview

• $7.7 billion commercial bank headquartered in Los Angeles, focusing on small/medium businesses and high net worth individuals, with 16 branches across California, New York, and Texas.

• Significant insider ownership at 8.3%, aligning management with stakeholders.

• Ethnic Chinese clients represent about 45% of deposits and 20% of loans, with a strong presence in both ethnic and mainstream markets.

• Branch-light model with average branch size over $400 million in deposits, emphasizing efficiency and automation.

• Recent expansion includes a new Silicon Valley branch and relocation of the San Francisco branch to a high-traffic area.

Management and business model

• Long-tenured executive team averaging 37 years in banking and 25 years with the institution.

• Business model centers on high-touch client service, senior-level lender recruitment, and local decision-making.

• No holding company structure, supporting operational efficiency.

Financial performance and shareholder returns

• Q1 2026 ROA at 1.67%, ROE at 15.89%, and net interest margin at 3.57%.

• Efficiency ratio improved to 30.4% in Q1 2026, outperforming peers.

• Consistent growth in loans and deposits, reaching $6.1 billion and $6.4 billion respectively by Q1 2026.

• Five-year total shareholder return of 67.1%, among the highest in its peer group.

• Tangible book value per share grew at a 13.02% CAGR over nine years, reaching $60.19 by June 2025.