Preferred Bank
| File:Preferred Bank logo.svg | |
| Company type | Public |
|---|---|
| |
| Industry | Financial services |
| Founded | 1991 |
| Headquarters | , |
Key people | |
| Products | Banking |
| Total assets | US$6.422 billion (2022) |
Number of employees | 120 (2022) |
| Website | preferredbank |
Preferred Bank () operates as a California state-chartered financial institution established in 1991 with the primary mission of serving Southern California’s Chinese American community. After encountering regulatory challenges related to leverage and governance in 2010, the bank expanded its operations through acquisition in 2015.
In 2023, Preferred Bank secured the #10 position on Bank Director's list of the Top 25 Banks in the United States.
History
Established in 1991, Preferred Bank concentrated initially on catering to the Chinese American population within Southern California.
The bank planned an initial public offering in 1998 but delayed it due to unfavorable market conditions. Eventually, its IPO took place in 2005, successfully raising over US$80 million by issuing more than two million shares. Preferred Bank is publicly traded on the NASDAQ stock exchange under the symbol ().
In 2010, regulatory scrutiny emerged because of insufficient leverage ratios and concerns regarding management practices. This led to a consent decree that was subsequently replaced by a memorandum of understanding mandating enhancements in management strategies and liquidity reserves. The acquisition of United International Bank based in Flushing, New York, occurred in 2015. This purchase notably increased the bank’s volume of problem assets; following losses from the resolution of these assets, Preferred Bank shifted its strategy to concentrate on local business development rather than pursuing additional acquisitions.