Preferred Bank (PFBC) investor relations material

Franchise overview and market presence

• $7.7 billion commercial bank headquartered in Los Angeles, focusing on small/medium businesses and high net worth individuals, with 17 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.

• Operational efficiency is a hallmark, with a branch-light model and high average branch deposit size.

Management and business model

• Long-tenured management team averaging 18 years in current roles and 37 years of industry experience.

• Ultra high-touch service model fosters deep client relationships and loyalty.

• Focus on recruiting senior lenders with established client books.

• Local decision-making and efficient back office with no holding company structure.

Financial performance and growth

• Q2 2026 ROA at 1.75%, ROE at 17.05%, and net interest margin at 3.73%.

• Efficiency ratio at 32.3% in Q2 2026, consistently outperforming peers.

• Total loans reached $6.25 billion and deposits $6.47 billion as of Q2 2026, showing steady growth.

• Five-year total return of 104.6%, outperforming most peers and S&P West Banks index.