Preferred Bank

Preferred Bank provides a wide range of banking products and services primarily to small and mid-sized businesses, entrepreneurs, real estate developers, professionals, and high net worth individuals. The company offers checking, savings, and money market deposit accounts, as well as fixed-rate and fixed maturity retail and non-retail certificates of deposit, and individual retirement accounts. On the lending side, its portfolio includes real estate mortgage loans secured by retail, industrial, office, special purpose, and residential properties, along with real estate construction loans, commercial loans (including lines of credit, term loans, and letters of credit), and Small Business Administration loans for purposes such as owner-occupied commercial real estate, business acquisitions, and working capital. Additionally, Preferred Bank provides trade finance services like commercial and export letters of credit, documentary collections, and international wire transfers, as well as cash management and digital banking services.

Preferred Bank is listed on the Nasdaq Global Select Market (NasdaqGS) under the ticker symbol PFBC. The company operates in the United States and uses the US Dollar (USD) as its reporting currency. Being listed on a major US exchange like Nasdaq provides liquidity and visibility for investors. The bank's financial statements and dividends, if any, are denominated in USD, making it straightforward for US-based investors and those dealing in US dollars.

Preferred Bank operates in the Financial Services sector and is specifically classified under the Banks - Regional industry. This means it is a regional bank that focuses on providing traditional banking services within a specific geographic area, primarily in California. Regional banks like Preferred Bank typically cater to local businesses and individuals, offering a mix of deposit accounts, loans, and other financial services tailored to the needs of their communities. The bank's focus on small and mid-sized businesses and real estate developers is characteristic of regional banks that have deep local market knowledge.

Preferred Bank is headquartered in Los Angeles, California, and serves the United States market, with a focus on the California region. The bank was incorporated in 1991 and has since built a strong presence in the local banking sector. Its target customers include small and mid-sized businesses, entrepreneurs, real estate developers, professionals, and high net worth individuals. By concentrating on the diverse and dynamic California economy, Preferred Bank leverages its understanding of local real estate markets and business needs to offer specialized lending and deposit products. The bank's services are delivered through physical branches as well as digital channels, including internet, mobile, and tablet banking.

Preferred Bank generates revenue primarily through net interest income from its lending activities and fee-based services. The bank earns interest on a diversified loan portfolio that includes real estate mortgage loans (secured by retail, industrial, office, special purpose, and residential properties), real estate construction loans, commercial loans (such as lines of credit and term loans), and Small Business Administration loans. It also generates fee income from trade finance services, including commercial and export letters of credit, documentary collections, and international wire transfers, as well as from cash management services. Additionally, the bank earns income from deposit-related fees and service charges on checking, savings, and money market accounts. By serving a mix of business and individual clients, Preferred Bank maintains a balanced revenue stream.