Chairman's Message
April 22, 2026
Dear Shareholders,
I am pleased to report that our 2025 net income was $133.6 million or $10.41 per diluted share, which compares favorably to net income of $130.6 million or $9.64 per diluted share recorded in 2024. Our return on equity (“ROE”) and return on assets (“ROA”) were 17.35% and 1.84%, respectively, both top of industry profitability metrics. Preferred Bank remains one of the most profitable banks in the U.S. for the last several years.
We continue to navigate the Bank through these times of economic uncertainty and geopolitical risks. Unfortunately, any time new macroeconomic risks emerge, banks are usually in the crosshairs of market activity, leading to negative movements in the market price of bank equities. In addition, the uncertainty surrounding the direction of interest rates also presents challenges in managing a banking operation, especially one that is highly dependent on net interest income as its major driver of revenue. However, we are confident that our strategy of organic growth and increasing the Bank’s tangible book value will continue to provide top-tier returns on shareholder equity.
In 2025, we achieved the following:
- Grew the Bank’s loan and deposits above the industry average
- Controlled our overhead under a highly inflationary environment
- Increased the dividend payout to shareholders
- Repurchased 1.08 million shares of our common stock
- Increased the book value of our common stock
- Produced a total shareholder return of 12.8% which is well above our industry average
The year of 2026 will certainly be full of new and existing challenges and much uncertainty, but we will continue to work hard.
Very truly yours,
Li Yu
Chairman of the Board
Chief Executive Officer
