Company Overview

Preferred Bank is a U.S.-based commercial bank holding company that provides relationship-focused banking services to small- and medium-sized businesses, professionals, and high-net-worth individuals. The company operates primarily within the commercial banking and financial services industries, offering a range of deposit, lending, and treasury management products. Its core revenue drivers are interest income from commercial and real estate lending and fee income from deposit and cash management services. Preferred Bank is publicly traded on the Nasdaq under the ticker PFBC and is regulated as a bank holding company.

Founded in 1991, Preferred Bank was established to serve the banking needs of the Southern California business community, with an emphasis on personalized service and local decision-making. Over time, the bank expanded its footprint within California and selectively into other U.S. markets while maintaining a conservative credit culture. Its strategic positioning centers on serving niche business segments, including entrepreneurs and trade-related businesses, particularly those engaged in U.S.–Asia commerce.

Business Operations

Preferred Bank operates through a single reportable segment, Commercial Banking Operations, which encompasses all lending, deposit, and related financial services. Revenue is generated primarily through interest earned on commercial real estate loans, commercial and industrial loans, and trade finance products, as well as through noninterest income from service charges and treasury management services. The bank emphasizes relationship banking, with lending decisions typically made at the local level.

The company conducts business through Preferred Bank, its wholly owned banking subsidiary, which holds all operating assets and customer relationships. While the bank does not operate extensive international branches, it supports international trade finance and foreign exchange services for clients engaged in cross-border commerce. There are no material joint ventures disclosed in public filings, and operations are conducted under a traditional branch-based and relationship manager model.

Strategic Position & Investments

Preferred Bank’s strategic direction focuses on disciplined balance sheet growth, targeted expansion in relationship-driven commercial lending, and maintaining strong asset quality. Growth initiatives emphasize organic loan and deposit growth rather than large-scale acquisitions, with management prioritizing credit discipline and long-term shareholder value. Capital deployment has historically centered on supporting loan growth and maintaining regulatory capital ratios rather than aggressive expansion.

The bank has not reported significant acquisitions in recent years and does not operate a diversified investment portfolio of non-banking businesses. Its strategic investments are primarily internal, including enhancements to digital banking platforms, risk management systems, and compliance infrastructure. Engagement in emerging technologies is limited to operational improvements in banking systems rather than direct participation in fintech or nontraditional financial sectors.

Geographic Footprint

Preferred Bank’s operations are concentrated in the United States, with a primary presence in California, particularly in Southern California. The bank maintains branch offices and lending teams in major metropolitan areas, including Los Angeles and Orange County, which form the core of its customer base and loan portfolio.

Beyond California, Preferred Bank has selectively expanded into other U.S. regions to support client relationships, including offices in New York and Texas. While the bank does not maintain international branches, it has a notable operational influence in facilitating international trade finance, particularly for clients with business ties to Asia, leveraging correspondent banking relationships rather than direct overseas operations.

Leadership & Governance

Preferred Bank is led by an executive team with longstanding experience in commercial banking and relationship-driven financial services. The leadership philosophy emphasizes conservative risk management, local accountability, and consistent execution aligned with shareholder and regulatory expectations. Governance practices follow U.S. banking regulatory standards, with oversight provided by a board of directors experienced in finance, business, and regional market development.

Key executives include:

• Li Yu – Chairman and Chief Executive Officer
• Edward P. Czajka – President and Chief Operating Officer
• Serena L. Shi – Executive Vice President and Chief Financial Officer
• Edward J. Czajka Jr. – Executive Vice President and Chief Credit Officer
• James C. Hui – Executive Vice President and Chief Lending Officer