Preferred Bank Mortgage Rates, Fees & Info

Los Angeles, CA

LEI: 5493007K6HGI9G0ECX16

Tax ID: 95-4340199

2021 Data | 2020 Data | 2019 Data | 2018 Data

Overview

Preferred Bank is a smaller bank specializing in Home Purchase and Cash Out Refi loans. Preferred Bank has a high proportion of conventional loans. Their top markets include Los Angeles, Riverside, Seattle, New York, and Austin among others. Preferred Bank has an average approval rate for mortages when compared nationally. They have a below average pick rate when compared to the same sample of other lendors.

Originations

200

Origination Dollar Volume (All Markets)

$319,230,000

Employee count

279

Top Markets

Market	Originations	Total Value	Average Loan	Average Fees	Average Rate
Los Angeles-Long Beach-Anaheim, CA (FHA\|USDA\|VA)	110	$118,200,000	$1,074,545	$0	0.00%
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (FHA\|USDA\|VA)	52	$75,560,000	$1,453,077	$0	0.00%
Seattle-Tacoma-Bellevue, WA (FHA\|USDA\|VA)	1	$58,505,000	$58,505,000	$0	0.00%
New York-Newark-Jersey City, NY-NJ-PA (FHA\|USDA\|VA)	21	$36,385,000	$1,732,619	$0	0.00%
AUSTIN-ROUND ROCK-GEORGETOWN, TX (FHA\|USDA\|VA)	1	$18,905,000	$18,905,000	$0	0.00%
San Francisco-Oakland-Berkeley, CA (FHA\|USDA\|VA)	8	$7,700,000	$962,500	$0	0.00%
SAN DIEGO-CHULA VISTA-CARLSBAD, CA (FHA\|USDA\|VA)	1	$995,000	$995,000	$0	0.00%
SAN JOSE-SUNNYVALE-SANTA CLARA, CA (FHA\|USDA\|VA)	1	$665,000	$665,000	$0	0.00%
NAPA, CA (FHA\|USDA\|VA)	1	$625,000	$625,000	$0	0.00%
OXNARD-THOUSAND OAKS-VENTURA, CA (FHA\|USDA\|VA)	1	$575,000	$575,000	$0	0.00%
LAKE HAVASU CITY-KINGMAN, AZ (FHA\|USDA\|VA)	1	$475,000	$475,000	$0	0.00%
STOCKTON, CA (FHA\|USDA\|VA)	1	$465,000	$465,000	$0	0.00%
BAKERSFIELD, CA (FHA\|USDA\|VA)	1	$175,000	$175,000	$0	0.00%

Preferred Bank's top markets include Los Angeles, Riverside, Seattle, New York, and Austin among others.

Product Mix

Loan Type	Originations	Total Value	Average Loan	Average Fees	Average Rate
Conventional	200	$319,230,000	$1,596,150	$0	0.00%

For the 2021 period, Preferred Bank's most frequently originated loan type of loans were Conventional, with 200 originations.

Loan Reason

Loan Reason	Originations	Total Value	Average Loan	Average Fees	Average Rate
Home Purchase	139	$129,055,000	$928,453	$0	0.00%
Refi	33	$53,325,000	$1,615,909	$0	0.00%
Cash Out Refi	24	$134,880,000	$5,620,000	$0	0.00%
Home Improvement	2	$570,000	$285,000	$0	0.00%
Other	2	$1,400,000	$700,000	$0	0.00%

For the 2021, Preferred Bank's most frequently cited loan purpose of loans were Home Purchase, with 139 originations. The 2nd most popular reason of loans were Refi, with 33 originations.

Loan Duration/Length

Loan Length	Originations	Total Value	Average Loan	Average Fees	Average Rate
Other	200	$319,230,000	$1,596,150	$0	0.00%

For the 2021, Preferred Bank's most frequently cited loan length of loans were Other, with 200 originations.

Loan Sizing

Loan Size	Originations	Total Value	Average Loan	Average Fees	Average Rate
$400k-600k	67	$32,345,000	$482,761	$0	0.00%
$600k-1MM	63	$49,915,000	$792,302	$0	0.00%
$1MM+	45	$228,885,000	$5,086,333	$0	0.00%
$200k-400k	24	$7,910,000	$329,583	$0	0.00%
$100k-200k	1	$175,000	$175,000	$0	0.00%

2021 saw Preferred Bank place emphasis on $400k-600k loans with 67 originations, totaling $32,345,000 in origination value.

Applicant Income

Applicant Income	Originations	Total Value	Average Loan	Average Fees	Average Rate
$250k+	76	$64,130,000	$843,816	$0	0.00%
$150k-250k	43	$27,655,000	$643,140	$0	0.00%
$100k-150k	35	$16,085,000	$459,571	$0	0.00%
$75k-100k	10	$3,550,000	$355,000	$0	0.00%
$50k or less	3	$1,755,000	$585,000	$0	0.00%
$50k-75k	2	$900,000	$450,000	$0	0.00%

Preferred Bank lent most frequently to those with incomes in the $250k+ range, with 76 originations. The second most popular income band? $150k-250k, with 43 originations.

Applicant Debt to Income Ratio

DTI Ratio	Originations	Total Value	Average Loan	Average Fees	Average Rate
Exempt%	200	$319,230,000	$1,596,150	$0	0.00%

Preferred Bank lent most frequently to those with DTI ratios of Exempt%, with 200 originations.

Ethnicity Mix

Applicant Ethnicity	Originations	Total Value	Average Loan	Average Fees	Average Rate
Not applicable	30	$204,040,000	$6,801,333	$0	0.00%
Asian	160	$104,850,000	$655,313	$0	0.00%
White	5	$5,185,000	$1,037,000	$0	0.00%
Not provided	5	$5,155,000	$1,031,000	$0	0.00%

Approval Rates

Total approvals of all applications
88.85%

Preferred Bank has an average approval rate.

Pick Rate

Approvals leading to origination
79.37%

Preferred Bank has a below average pick rate.

Points and Fees

Points	Originations	Total Value	Average Loan
Exempt	200	$319,230,000	$1,596,150

Occupancy Type Mix

Dwelling Type	Originations	Total Value	Average Loan
	200	$319,230,000	$1,596,150

Complaints

Bank Name	Product	Issue	2021 CPFB Complaints	% of Total Issues
PREFERRED MORTGAGE CORPORATION	Conventional home mortgage	Applying for a mortgage or refinancing an existing mortgage	1	100.0%

Bank Details

Branches

Bank Name	Branch	Branch Type	Deposits (000's)
Preferred Bank	1373 South Diamond Bar Boulevard Diamond Bar, CA 91765	Full Service B&M	$179,507
Preferred Bank	1469 South Baldwin Avenue Arcadia, CA 91007	Full Service B&M	$202,975
Preferred Bank	17515-A Colima Road City Of Industry, CA 91748	Full Service B&M	$286,515
Preferred Bank	1801 Century Park East Century City, CA 90067	Full Service B&M	$255,285
Preferred Bank	18321 Ventura Blvd, Suite 100 Tarzana, CA 91356	Full Service B&M	$596,990
Preferred Bank	2150 Town Square Pl Sugar Land, TX 77479	Full Service B&M	$548
Preferred Bank	21615 Hawthorne Boulevard, Suite 100 Torrance, CA 90503	Full Service B&M	$328,363
Preferred Bank	325 East Valley Boulevard Alhambra, CA 91801	Full Service B&M	$758,797
Preferred Bank	41-60 Main Street, Suite 103 Flushing, NY 11355	Full Service B&M	$399,176
Preferred Bank	5160 Geary Boulevard San Francisco, CA 94118	Full Service B&M	$100,237
Preferred Bank	600 California St. Suite 550 San Francisco, CA 94108	Full Service B&M	$200,580
Preferred Bank	601 South Figueroa Street, 48th Floor Los Angeles, CA 90017	Full Service B&M	$1,338,902
Preferred Bank	7004 Rosemead Blvd Pico Rivera, CA 90660	Full Service B&M	$35,753
Preferred Bank	890 Roosevelt Avenue Irvine, CA 92620	Full Service B&M	$115,024

For 2021, Preferred Bank had 14 branches.

Yearly Performance Overview

Bank Income

Item	Value (in 000's)
Total interest income	$211,035
Net interest income	$185,878
Total noninterest income	$7,702
Gross Fiduciary activities income	$0
Service charges on deposit accounts	$1,455
Trading account gains and fees	$0
Additional Noninterest Income	$6,247
Pre-tax net operating income	$133,787
Securities gains (or losses, -)	$41
Income before extraordinary items	$95,240
Discontinued Operations (Extraordinary gains, net)	$0
Net income of bank and minority interests	$95,240
Minority interest net income	$0
Net income	$95,240
Sale, conversion, retirement of capital stock, net	$-8,602
Net operating income	$95,207

Preferred Bank's gross interest income from loans was $211,035,000.
Preferred Bank's net interest income from loans was $185,878,000.
Preferred Bank's fee based income from loans was $1,455,000.
Preferred Bank's net income from loans was $95,240,000.

Bank Expenses

Item	Value (in 000's)
Total interest expense	$25,157
Provision for credit losses	$-1,000
Total noninterest expense	$60,793
Salaries and employee benefits	$42,963
Premises and equipment expense	$6,796
Additional noninterest expense	$11,034
Applicable income taxes	$38,588
Net charge-offs	$2,457
Cash dividends	$23,258

Preferred Bank's interest expense for loans was $25,157,000.
Preferred Bank's payroll and benefits expense were $42,963,000.
Preferred Bank's property, plant and equipment expenses $6,796,000.

Loan Performance

Type of Loan	% of Loans Noncurrent (30+ days, end of period snapshot)
All loans	0.0%
Real Estate loans	0.0%
Construction & Land Development loans	0.0%
Nonfarm, nonresidential loans	0.0%
Multifamily residential loans	0.0%
1-4 family residential loans	1.0%
HELOC loans	0.0%
All other family	1.0%
Commercial & industrial loans	0.0%
Personal loans	0.0%
Credit card loans	0.0%
Other individual loans	0.0%
Auto loans	0.0%
Other consumer loans	0.0%
Unsecured commercial real estate loans	0.0%

Deposits

Type	Value (in 000's)
Total deposits	$5,227,835
Deposits held in domestic offices	$5,227,835
Deposits by Individuals, partnerships, and corporations	$4,857,157
Deposits by U.S. Government	$0
Deposits by States and political subdivisions in the U.S.	$229,604
Deposits by Commercial banks and other depository institutions in U.S.	$141,074
Deposits by Banks in foreign countries	$0
Deposits by Foreign governments and official institutions	$0
Transaction accounts	$2,187,947
Demand deposits	$2,187,947
Nontransaction accounts	$3,039,888
Money market deposit accounts (MMDAs)	$1,151,981
Other savings deposits (excluding MMDAs)	$37,839
Total time deposits	$1,850,068
Total time and savings deposits	$3,039,888
Noninterest-bearing deposits	$1,307,108
Interest-bearing deposits	$3,920,728
Retail deposits	$3,867,142
IRAs and Keogh plan accounts	$7,324
Brokered deposits	$426,249
Deposits held in foreign offices	$0

Assets

Asset	Value (in 000's)
Total Assets	$6,045,825
Cash & Balances due from depository institutions	$1,031,145
Interest-bearing balances	$1,019,362
Total securities	$465,873
Federal funds sold & reverse repurchase	$0
Net loans and leases	$4,378,707
Loan and leases loss allowance	$59,969
Trading account assets	$0
Bank premises and fixed assets	$32,294
Other real estate owned	$0
Goodwill and other intangibles	$651
All other assets	$137,155

Liabilities

Liabilities	Value (in 000's)
Total liabilities and capital	$6,045,825
Total Liabilities	$5,459,107
Total deposits	$5,227,835
Interest-bearing deposits	$3,920,728
Deposits held in domestic offices	$5,227,835
% insured (estimated)	$21
Federal funds purchased and repurchase agreements	$0
Trading liabilities	$0
Other borrowed funds	$0
Subordinated debt	$147,758
All other liabilities	$83,514

Issued Loan Types

Type	Value (in 000's)
Net loans and leases	$4,378,707
Loan and leases loss allowance	$59,969
Total loans and leases (domestic)	$4,438,676
All real estate loans	$3,132,145
Real estate loans in domestic offices	$3,132,145
Construction and development loans	$340,136
Residential 1-4 family construction	$130,329
Other construction, all land development and other land	$209,807
Loans secured by nonfarm nonresidential properties	$1,831,767
Nonfarm nonresidential secured by owner-occupied properties	$224,387
Commercial real estate & other non-farm, non-residential	$1,607,380
Multifamily residential real estate	$423,579
1-4 family residential loans	$536,663
Farmland loans	$0
Loans held in foreign offices	$0
Farm loans	$0
Commercial and industrial loans	$1,286,413
To non-U.S. addressees	$0
Loans to individuals	$0
Credit card loans	$0
Related Plans	$0
Consumer Auto Loans	$0
Other loans to individuals	$0
All other loans & leases	$20,118
Loans to foreign governments and official institutions	$0
Other loans	$118
Loans to depository institutions and acceptances of other banks	$20,000
Loans not secured by real estate	$0
Loans secured by real estate to non-U.S. addressees	$0
Restructured Loans & leases	$25,181
Non 1-4 family restructured loans & leases	$25,181
Total loans and leases (foreign)	$0

Preferred Bank had $4,378,707,000 of loans outstanding in 2021. $3,132,145,000 of loans were in real estate loans. $340,136,000 of loans were in development loans. $423,579,000 of loans were in multifamily mortgage loans. $536,663,000 of loans were in 1-4 family mortgage loans. $0 of loans were in farm loans. $0 of loans were in credit card loans. $0 of loans were in the auto loan category.

Small Business Loans

Categorization	# of Loans in Category	$ amount of loans (in 000's)	Average $/loan
Nonfarm, nonresidential loans - <$1MM	79	$42,958	$543,772
Nonfarm, nonresidential loans - <$100k	4	$177	$44,250
Nonfarm, nonresidential loans - $100-250k	5	$901	$180,200
Nonfarm, nonresidential loans - $250k-1MM	70	$41,880	$598,286
Commercial & Industrial, US addressed loans - <$1MM	1,143	$118,330	$103,526
Commercial & Industrial, US addressed loans - <$100k	828	$35,068	$42,353
Commercial & Industrial, US addressed loans - $100-250k	185	$26,976	$145,816
Commercial & Industrial, US addressed loans - $250k-1MM	130	$56,286	$432,969