LOS ANGELES, Feb. 23, 2026 (GLOBE NEWSWIRE) -- Preferred Bank (NASDAQ:PFBC), ("the Bank"), an independent commercial bank, provided an update on a large loan relationship. In the fourth quarter of 2025, the Bank announced that it had downgraded a large relationship totaling $2.0 million in commercial and industrial (C&I) loans and $115.6 million of real estate loans to substandard classification. Due to the principals of the relationship being involved in several complicated lawsuits with other banks which caused sluggish cash flow and unacceptable payment patterns, the Bank is now further reclassifying these loans to nonaccrual status.

Below is an outline of the loan balances and the current valuation of the real estate loans. Based upon the value of the collateral, the Bank believes the resolution of these loans will not result in any significant impact to the Bank's 2026 earnings.

				Property
	Loan	Current		Appraised		Appraisal
	Type	Balance		Value		Date	LTV
Loan 1	CRE-Neighborhood Center	$	9,398,531	$	24,990,000	2/25/2025	37.6	%
Loan 2	CRE-Shopping Center *		48,458,994		72,660,000	11/13/2024	66.7	%
Loan 3	Multifamily		7,914,950		13,220,000	2/15/2026	59.9	%
Loan 4	Multifamily		19,950,000		41,200,000	11/7/2025	48.4	%
Loan 5	CRE-Neighborhood Center		29,882,035		67,230,000	2/15/2026	44.4	%
		$	115,604,510	$	219,300,000		52.7	%

New appraisal has been ordered

About Preferred Bank

Preferred Bank is one of the larger independent commercial banks headquartered in California. The Bank is chartered by the State of California, and its deposits are insured by the Federal Deposit Insurance Corporation, or FDIC, to the maximum extent permitted by law. The Bank conducts its banking business from its main office in Los Angeles, California, and through twelve full-service branch banking offices in California (Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine (2), Diamond Bar, Pico Rivera, Tarzana and San Francisco (2)). The Bank also operates a branch in Flushing, New York and in the Houston suburb of Sugar Land, Texas as well as a Loan Production Office in Sunnyvale, California. Preferred Bank offers a broad range of deposit and loan products and services to both commercial and consumer customers. The Bank provides personalized deposit services as well as real estate finance, commercial loans and trade finance to small and mid-sized businesses, entrepreneurs, real estate developers, professionals and high net worth individuals. Although originally founded as a Chinese-American Bank, Preferred Bank now derives most of its customers from the diversified mainstream market but does continue to benefit from the significant migration to California of ethnic Chinese from China and other areas of East Asia.

AT THE COMPANY:

Edward J. Czajka

Executive Vice President

Chief Financial Officer

(213) 891-1188

AT FINANCIAL PROFILES:

Jeffrey Haas

General Information

(310) 622-8240

PFBC@finprofiles.com

Preferred Bank Provides Update on Loan Relationship