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Q2 2026 · read from the 30 June 2026 Call Report · United States · Pacific · California, the state note

Preferred Bank

Los Angeles, California · $7.73B in assets · beside the 11 other California banks between $3B and $10B

The filing

97.0%
Loans / deposits
12th of 12
1.57%
NPA / loans
10th of 11
57.4%
CRE / loans
10th of 11

Preferred Bank is the fifth largest of the 12 California banks nearest its size between $3B and $10B, with $7.73B in assets at 30 June 2026. Loans are 97.0% of deposits, the highest in the cohort against a median of 86.5%, and equity is 10.3% of assets, 7th of 11. Loans grew +9.3% in the year, 3rd of 11, and deposits grew 6.5%; the cohort's median loan growth is +3.1%.

Noncurrent loans are 1.57% of the book, 10th of 11 against a median of 0.30%; 1.73% is 30 to 89 days past due, and the allowance covers them 0.8 times. Net charge-offs are 0.17% of loans, 8th of 10. Commercial real estate is 57.4% of loans, 10th of 11 against a median of 47.4%, and 357% of capital, above the 300% screen, with construction at 67% against the 100% screen.

Return on assets is 1.68%, 3rd of 11 against a median of 1.32%, on an efficiency ratio of 33.0%, 4th of 11. Five years ago it was 1.56%. The question is what the concentration does under a commercial real estate stress, and how much of it is owner-occupied (owner-occupied nonresidential is 3.6% of loans).

Loans as a share of depositsCA banks $3B to $10B · 30 June 2026 · lower is stronger, listed first
median 86.5% FA First American Trust FSB 0.0% WB Westamerica Bank 14.0% SM SMBC Manubank 48.2% FM Farmers & Merchants Bank Central California 72.7% MT Mizrahi Tefahot Bank LTD 79.0% RC River City Bank 85.7% TC Tri Counties Bank 87.3% CB CTBC Bank Corp. USA 88.0% FB Fremont Bank 90.6% PB Poppy Bank 92.8% HB Hanmi Bank 94.1% PB Preferred Bank 97.0%
Loans, year over yearCA banks $3B to $10B · 30 June 2026 · no better direction, largest first
median +3.1% MT Mizrahi Tefahot Bank LTD +56.9% PB Poppy Bank +10.8% PB Preferred Bank +9.3% RC River City Bank +7.3% TC Tri Counties Bank +5.1% FB Fremont Bank +3.1% HB Hanmi Bank +3.1% CB CTBC Bank Corp. USA +2.2% FM Farmers & Merchants Bank Central California +2.2% WB Westamerica Bank -10.6% SM SMBC Manubank -40.2%

SBA 7(a), FY2008 to FY2026

Preferred Bank is the 151st largest 7(a) lender into California of 512, with $29M across 35 loans, 0.0% of everything approved in the state (Wells Fargo Bank National Association leads with $5.56B). 1 of its 15 markets have had no approvals since before FY2023: an absence in the record, not a stated withdrawal.

Where it lends in California, and where it has gone quietshare movement, FY2023 to FY2025 against FY2020 to FY2022; outlined counties are on the book
Gaining shareLosing shareFlatGone quiet: nothing since FY2023Too thin to read a directionNo record
Every market on the book, largest firstrank and share among every lender in the county, FY2008 to FY2026
CountyApprovedRankShareTrend
Los Angeles, CA$22M95th of 3080.1%thin
Arapahoe, CO$4M66th of 1660.3%thin
Orange, CA$3M132nd of 2560.0%thin
San Bernardino, CA$2M133rd of 2130.0%thin
Snohomish, WA$2M74th of 1270.1%thin
Harris, TX$1M211th of 3140.0%thin
Yakima, WA$1M43rd of 840.4%thin
Santa Clara, CA$1M128th of 1870.0%thin
Jefferson, TX$1M49th of 810.3%thin
Fresno, CA$587K100th of 1380.0%thin
Grant, WA$480K44th of 600.2%thin
Clark, NV$350K188th of 2290.0%thin
Gilliam, OR$264K1st of 1100.0%thin
2 smaller markets not shown.
What it lends to: the five largest industries on the bookshare of book is concentration; share of sector and rank are position, among every 7(a) lender nationally
IndustryLoansApprovedShare of bookShare of sectorRank
Accommodation & food services16$17M40.9%0.02%425th of 2,596
Wholesale trade6$7M18.5%0.03%348th of 1,651
Retail trade8$5M13.0%0.01%705th of 2,589
Construction3$2M6.0%0.01%845th of 2,063
Professional & technical services2$2M4.1%0.01%796th of 1,955
7(a) lenders into California, share of approvals since FY2008512 lenders on record; the ten largest and Preferred Bank
WF Wells Fargo Bank National Associa… 8.5% $5.56B · 15,065 loans UB U.S. Bank, National Association 7.3% $4.78B · 14,424 loans LO Live Oak Banking Company 4.5% $2.95B · 2,312 loans EB Enterprise Bank & Trust 4.3% $2.82B · 2,975 loans Bo Bank of Hope 3.9% $2.57B · 6,200 loans CB Columbia Bank 3.6% $2.33B · 3,734 loans JC JPMorgan Chase Bank, National Ass… 2.8% $1.86B · 9,370 loans OB Open Bank 2.5% $1.65B · 1,421 loans HS Harvest Small Business Finance, L… 2.4% $1.59B · 1,278 loans CB Celtic Bank Corporation 2.4% $1.57B · 2,551 loans PB Preferred Bank 0.0% $29M · 35 loans

Commercial real estate against capital

Commercial real estate concentrationthe 2006 interagency screens against total risk-based capital; Tier 1 stands in for the 1 CBLR filer; owner-occupied excluded; bold marks a screen met
Preferred BankRankCohort median
Total CRE against capital, the 300% screen357%9th of 11217%
Construction against capital, the 100% screen67%11th of 1116%
Construction and land development, share of loans10.7%10th of 112.2%
Non-owner-occupied nonfarm nonresidential, share of loans37.4%7th of 1032.2%
Total CRE, the guidance definition, share of loans57.4%10th of 1147.4%
CRE growth over 36 months, the third prong+27.0%9th of 11+5.3%

Among its peers

Where it sits among its peersnavy: the stronger half of each column; amber: the weaker; darker at the ends
InstitutionAssetsROAEfficiencyNPA / loansNet charge-offsAllowance / loansLoans / depositsEquity / assets
Tri Counties Bank$9.93B1.4%54.8%0.94%0.03%1.8%87.3%13.9%
First American Trust FSB$9.23B1.4%32.8%no recordno recordno record0.0%5.6%
Poppy Bank$8.32B1.3%43.2%1.89%0.38%1.4%92.8%8.9%
Hanmi Bank$7.95B1.3%51.1%0.15%0.12%1.1%94.1%11.2%
Preferred Bank$7.73B1.7%33.0%1.57%0.17%1.2%97.0%10.3%
Mizrahi Tefahot Bank LTD$7.39Bno recordno record0.12%no recordno record79.0%no record
SMBC Manubank$6.60B-3.4%16.5%0.30%4.97%0.0%48.2%11.5%
River City Bank$6.04B1.2%30.6%0.00%0.00%2.3%85.7%9.4%
Fremont Bank$5.97B1.2%73.4%0.39%0.01%1.6%90.6%7.8%
CTBC Bank Corp. USA$5.87B0.9%59.2%1.55%0.06%1.1%88.0%13.4%
Farmers & Merchants Bank Central California$5.83B1.7%44.3%0.13%0.01%2.1%72.7%11.8%
Westamerica Bank$5.77B1.8%42.5%0.12%0.14%1.6%14.0%10.5%
Five years, 2021 to 2026same quarter, five years apart; dollars as growth, ratios in points
Preferred BankCohort median
20212026Change20212026Change
Loans$4.29B$6.28B+46%$2.89B$4.51B+56%
Deposits$4.80B$6.48B+35%$4.61B$5.47B+19%
NPA / loans0.51%1.57%+1.06 pts0.37%0.30%-0.07 pts
Efficiency33.4%33.0%-0.4 pts49.6%43.2%-6.4 pts
ROA1.56%1.68%+0.12 pts1.38%1.32%-0.06 pts

This read was prepared for Preferred Bank's board and management from the public record, and is one slice of what Lynx builds for any bank from its own filing: the peer cohort, the capital, liquidity and rate models with the assumptions the institution sets, and a summary report of twenty sections for the board.

The full pack on Preferred Bank is prepared on request, and thirty days on the institution's own numbers are open to anyone at the bank.

Ask for the pack

Prepared 7 September 2026
Filing 30 June 2026
Cohort CA banks $3B to $10B
Institution www.preferredbank.com

Public record only: FFIEC Call Report, 30 June 2026; FDIC data; cohort by state and asset band; SBA 7(a) FOIA release as of the 2026 file, loans credited to the institution holding them today. Computed from the institution's own Call Report and its peers' as published; no estimate, no adjustment; not a rating, not an audited statement and not a supervisory judgement.
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