PackageTrendsPeer
Letter portraitLegal landscape

Preferred Bank

Big Lake, MN · Cert 1414

FDIC · 23 branches

Q3 2018

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2
Part 2Peer Comparison, not published for this institution and quartern/a

Basis

Quarter: Q3 2018, the quarter ended September 30, 2018, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

Peer group

No peer standings are published for this institution and quarter.

Peer groups below the disclosure floor are suppressed.

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas.

CallReports · callreports.ai · Board PackageGenerated 2026-10-11

Preferred Bank

Big Lake, MN · Cert 1414

FDIC · 23 branches

Q3 2018

$2.0BAssets
$1.1BLoans
$1.7BDeposits
$197.7MEquity
Loan mix
70%RE $562.8M25%C&I $198.3M5%Consumer $44.2MQ3 2017Q3 2018
Deposit mix
76%Interest-bearing $1.3B24%Noninterest $0.4BQ3 2017Q3 2018

NIM

3.14%Q3 ’163.26%Q3 ’173.59%Q3 ’18+4%+10%

Non-interest income vs. expense

2.93%Q3 ’162.76%Q3 ’172.72%Q3 ’18-9%-8%

Market Position · Minneapolis-St. Paul-Bloomington, MN-WI · 2018 SOD (annual) · 0.9% share · #9 of 149 inst. · $1.6B of $184.8B

41.3% Carver
21.2% Scott
8.7% Wright
0.1% Hennepin

Executive Summary

  • Earnings: ROA of 1.87%, up 49 bps year over year; NIM at 3.45%.
  • Asset quality: problem loans at 0.49% of loans (-45 bps YoY), with net charge-offs at 0.01%.
  • Capital: tier 1 leverage ratio of 10.03%, up 88 bps from a year ago.
  • Funding: loans stand at 63.53% of deposits as of Q3 2018.

Financial Results

Return on Assets (YTD, annualized)

1.87%+49 bps YoY

Net Interest Margin (YTD, annualized)

3.45%+30 bps YoY

Efficiency Ratio (YTD, annualized)

59.78%-637 bps YoY

Tier 1 Leverage Ratio

10.03%+88 bps YoY

Year to date, annualized, through each quarter.

MetricQ3 2017Q4 2017Q1 2018Q2 2018Q3 2018YoY ΔTrend
Earnings
Return on Assets1.38%1.36%1.50%1.62%1.87%+49 bps
Return on Equity13.34%13.19%14.96%16.20%18.63%+529 bps
Net Interest Margin3.15%3.07%3.33%3.32%3.45%+30 bps
Efficiency Ratio66.15%66.00%66.48%63.04%59.78%-637 bps
Non-Interest Burden1.73%1.69%1.92%1.75%1.60%-14 bps
Growth
Asset Growth (YoY)2.88%4.72%3.11%0.88%-0.66%-354 bps
Loan Growth (YoY)8.41%8.78%6.53%3.31%0.90%-750 bps
Deposit Growth (YoY)5.36%6.29%6.77%5.46%2.25%-311 bps
Asset Quality
Nonperforming Loans / Loans0.93%0.78%0.90%0.69%0.49%-45 bps
Net Charge-Offs / Loans0.01%0.04%0.05%0.05%0.01%+1 bps
Allowance / Loans1.27%1.21%1.21%1.20%1.21%-5 bps
Allowance Coverage of NPLs1.4x1.5x1.3x1.7x2.5x+1.1x
Capital
Tier 1 Leverage Ratio9.14%8.96%9.45%9.42%10.03%+88 bps
Total Risk-Based Capital13.15%13.19%13.69%13.92%14.44%+129 bps
Equity / Assets10.30%10.08%9.94%10.00%10.09%-22 bps
Liquidity & Funding
Loans / Deposits64.38%64.45%62.85%63.27%63.53%-85 bps
Liquid Assets / Assets0.28%0.02%1.75%0.66%1.02%+74 bps
CRE / Total Capitaln/an/an/an/an/an/an/a