Preferred Bank
TypePublic
IndustryFinance and insurance
Founded1991
HeadquartersLos Angeles County, California
Key people
  • Li Yu, Chairman, Chairman and CEO
  • Wellington Chen, President and COO
  • Edward J. Czajka, EVP and CFO
  • Nick Pi, EVP and CCO
  • Johnny Hsu, EVP and Deputy COO
ProductsBanking
Total assetsUS$6.422 billion (2022)
Number of employees
120
Websitepreferredbank.com

Preferred Bank (Chinese: 保富銀行) is a California state-chartered bank founded in 1991. In its early years the bank focused its services on the Chinese American community in Southern California.[1] Preferred Bank first announced an initial public offering in 1998, but postponed the offering due to poor market conditions.[2] Its eventual IPO in 2005 raised over US$80 million in a sale of over 2 million shares.[3] Preferred Bank is listed on NASDAQ (Nasdaq: PFBC).

An inadequate leverage ratio and concerns about management led to a consent decree in March 2010, later lifted and replaced with a memorandum of understanding, in which California banking regulators required the bank to review its management policies and increase its liquidity.[4] In 2015, Preferred Bank acquired United International Bank of Flushing, New York.[5] The loan obligations taken on as part of the acquisition increased its percentage of problem assets significantly, and after losing money on the disposal of problem assets, the company returned to a focus on local business rather than acquisitions.[6]

References

  1. ↑ Vrana, Deborah (December 14, 1998). "East-West Bank Taking an Unusual Route to Go Public". Los Angeles Times. Retrieved August 23, 2023.
  2. ↑ Vrana, Deborah (June 8, 1998). "Preferred Bank to Launch $20-Million IPO". Los Angeles Times. Retrieved August 23, 2023.
  3. ↑ Kuehner-Hebert, Katie (February 18, 2005). "Bank for Chinese Has Good IPO". American Banker. Vol. 170, no. 34. p. 4.
  4. ↑ Stewart, Jackie (June 1, 2012). "Regulators Terminate Consent Order Against Los Angeles Bank". American Banker. Vol. 177, no. 6. p. 9.
  5. ↑ Bank, Preferred (November 23, 2015). "Preferred Bank Closes Acquisition of United International Bank". GlobeNewswire News Room. Retrieved April 24, 2021.
  6. ↑ Maio, Pat (April 11, 2019). "Preferred Finds Local Profits". Los Angeles Business Journal. Retrieved August 23, 2023.
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