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Preferred Bank

Casey, IL · Cert 34900 · Preferred Bcorp Inc.

State charter, non-member · FDIC · 2 branches

Q2 2026

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2
Part 2Peer Comparison, banks under $1B in assets in IL3

Basis

Quarter: Q2 2026, the quarter ended June 30, 2026, on both parts.

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

Balance sheet: as filed at quarter end.

Peer group

Banks under $1B in assets in IL (n=149 to 151). Each measure ranks only the institutions that reported it, so n varies by measure.

Peer groups below the disclosure floor are suppressed.

Peer standing

Capital

20

Q2 2024Q2 2026peer median (50)

Asset Quality

54

Q2 2024Q2 2026peer median (50)

Profitability

13

Q2 2024Q2 2026peer median (50)

Liquidity

95

Q2 2024Q2 2026peer median

Efficiency

5

Q2 2024Q2 2026peer median (50)

Growth

No peer data yet

Capital, Asset Quality, Profitability, Efficiency: higher is always a stronger peer standing (▲ better, ▼ worse). Liquidity, Growth: the score reflects closeness to the peer median -- 100 is sitting exactly at the median, falling the same way whether the bank runs above or below it.

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

Casey, IL · Cert 34900 · Preferred Bcorp Inc.

State charter, non-member · FDIC · 2 branches

Q2 2026

$73.5MAssets
$47.2MLoans
$67.7MDeposits
$5.6MEquity
Loan mix
55%RE $25.4M38%C&I $17.6M7%Consumer $3.3MQ2 2025Q2 2026
Deposit mix
85%Interest-bearing $57.5M15%Noninterest $10.2MQ2 2025Q2 2026

NIM

4.93%Q2 ’244.86%Q2 ’255.03%Q2 ’26-5%+6%

Non-interest income vs. expense

2.99%Q2 ’243.16%Q2 ’253.06%Q2 ’26+7%-5%

Executive Summary

  • Earnings: ROA of 0.27%, up 26 bps year over year; NIM at 3.02%.
  • Asset quality: problem loans at 4.22% of loans (+189 bps YoY), with net charge-offs at 0.00%.
  • Capital: tier 1 leverage ratio of 8.30%, down 32 bps from a year ago.
  • Funding: loans stand at 69.75% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

0.27%+26 bps YoY

Net Interest Margin (YTD, annualized)

3.02%+16 bps YoY

Efficiency Ratio (YTD, annualized)

92.28%-902 bps YoY

Tier 1 Leverage Ratio

8.30%-32 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.01%-0.01%0.04%0.31%0.27%+26 bps
Return on Equity0.15%-0.08%0.50%4.13%3.53%+338 bps
Net Interest Margin2.86%2.86%2.84%3.00%3.02%+16 bps
Efficiency Ratio101.29%98.75%98.24%91.38%92.28%-902 bps
Non-Interest Burden2.90%2.82%2.78%2.71%2.76%-13 bps
Growth
Asset Growth (YoY)1.29%4.06%7.96%8.95%5.48%+420 bps
Loan Growth (YoY)-0.47%4.82%9.53%6.47%3.65%+412 bps
Deposit Growth (YoY)3.95%7.14%9.56%9.20%5.53%+158 bps
Asset Quality
Nonperforming Loans / Loans2.33%5.61%2.96%4.19%4.22%+189 bps
Net Charge-Offs / Loans0.02%0.04%0.03%0.01%0.00%-3 bps
Allowance / Loans0.58%0.59%0.59%0.60%0.60%+2 bps
Allowance Coverage of NPLs0.3x0.1x0.2x0.1x0.1x-0.1x
Capital
Tier 1 Leverage Ratio8.62%8.27%8.18%8.16%8.30%-32 bps
Total Risk-Based Capital12.57%12.11%12.17%11.36%12.36%-21 bps
Equity / Assets7.61%7.63%7.65%7.58%7.60%-1 bps
Liquidity & Funding
Loans / Deposits71.02%70.85%70.05%68.07%69.75%-127 bps
Liquid Assets / Assets8.97%10.34%9.62%9.09%10.06%+109 bps
CRE / Total Capitaln/a164.48%162.50%161.70%n/an/a

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. Income-statement figures are year-to-date as filed, annualized (the UBPR convention). Each quarter includes the ones before it.

CallReports · callreports.ai· Performance TrendsGenerated 2026-10-11

Preferred Bank

Casey, IL · Cert 34900 · Peer group: banks under $1B in assets in IL (n=149-151) · Preferred Bcorp Inc.

State charter, non-member · FDIC · 2 branches

Q2 2026

$73.5MAssets
$47.2MLoans
$67.7MDeposits
$5.6MEquity

Executive Summary

  • Strongest standing: net charge-offs / loans outperforms 100% of banks under $1B in assets in IL (rank 27 of 149).
  • Widest gap: efficiency ratio trails 95% of banks under $1B in assets in IL (rank 144 of 151).
  • Overall: at or above the peer median on 1 of 9 directional measures.

Return on Assets

0.27%

Rank 141 of 151

Net Interest Margin

3.02%

Rank 115 of 151

Efficiency Ratio

92.28%

Rank 144 of 151

Equity / Assets

7.60%

Rank 138 of 151

Non-interest income vs. expense

$0.2M$2.2MINCOMEEXPENSE
Unfavorable gap of $2.0M · efficiency ratio beats 5% of banks under $1B in assets in IL
Bank 92.28%Peer median 64.9%Q3 2024Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRankPeer Position
Earnings
Return on Assets0.27%0.70%1.03%1.34%Beats 7%141 / 151
Return on Equity3.55%6.74%9.34%12.94%Beats 9%138 / 151
Net Interest Margin3.02%3.02%3.43%3.83%Beats 24%115 / 151
Efficiency Ratio92.28%54.64%64.89%72.50%Beats 5%144 / 151
Asset Quality
Nonperforming Loans / Loans4.22%0.20%0.66%1.77%Beats 8%138 / 149
Net Charge-Offs / Loans0.00%0.00%0.02%0.07%Beats 100%27 / 149
Capital
Tier 1 Capital Ratio11.78%11.83%14.17%18.66%Beats 23%116 / 151
Total Risk-Based Capital Ratio12.36%12.22%14.54%19.92%Beats 27%110 / 151
Equity / Assets7.60%9.10%10.65%12.40%Beats 9%138 / 151
Liquidity & Funding
Loans / Deposits69.75%54.39%71.02%80.75%45th pctl82 / 149
Loans / Assets64.26%45.91%61.31%68.01%58th pctl64 / 151
Brokered Deposits / Depositsn/aNot reported for this institution