Preferred Bank: Yields and Funding Costs
Data as of · Call Report Schedules RI and RC-K How we update
What the bank earns on its assets, what it pays for its funding, and the spread between them. Net interest margin is the output of the two: it is the engine of earnings for almost every commercial bank.
Net interest margin rose 0.20 percentage points from Q1 2026 to Q2 2026, ending at 3.71% against 3.51%. It was the largest change among the key lines on this page. Preferred Bank ranks 59th of 114 California banks on net interest margin, in the lower half at 3.71% (Q2 2026). The median for banks in the $1B-10B asset tier is 3.71% on net interest margin; Preferred Bank reported 3.71% for Q2 2026, nearly level with it.
Asset yields
| Line item | Q2 2026 |
|---|---|
| Yield on earning assets | 6.49% |
| Yield on loans | 7.18% |
| Yield on securities | 3.84% |
Funding costs
| Line item | Q2 2026 |
|---|---|
| Cost of funds | 3.07% |
| Cost of interest-bearing deposits | 3.46% |
| Cost of interest-bearing liabilities | 3.47% |
| Cost of borrowings | 3.74% |
Spread and margin
| Line item | Q2 2026 |
|---|---|
| Net interest margin | 3.71% |
| Yield to cost spread | 3.02% |
Interest income and expense
| Line item | Q2 2026 |
|---|---|
| Interest income on loans | $108.6M |
| Total interest expense | $52.5M |
| Interest expense on deposits | $49.2M |
Yields and Funding Costs trend
Last 12 quarters as filed. Every value plotted here also appears in the tables above.
Yields and Funding Costs by quarter
| Quarter | Yield on earning assets | Cost of funds | Net interest margin | Loans | Securities |
|---|---|---|---|---|---|
| Q3 2023 | 7.58% | 3.55% | 4.41% | 8.40% | 3.31% |
| Q4 2023 | 7.65% | 3.77% | 4.25% | 8.41% | 3.32% |
| Q1 2024 | 7.65% | 3.92% | 4.15% | 8.36% | 3.50% |
| Q2 2024 | 7.53% | 4.03% | 3.91% | 8.23% | 3.65% |
| Q3 2024 | 7.76% | 4.06% | 4.13% | 8.37% | 4.07% |
| Q4 2024 | 7.43% | 3.73% | 4.09% | 8.06% | 4.08% |
| Q1 2025 | 6.74% | 3.38% | 3.69% | 7.31% | 3.74% |
| Q2 2025 | 6.88% | 3.38% | 3.82% | 7.52% | 3.84% |
| Q3 2025 | 7.00% | 3.40% | 3.94% | 7.69% | 4.07% |
| Q4 2025 | 6.70% | 3.24% | 3.76% | 7.38% | 3.88% |
| Q1 2026 | 6.28% | 3.07% | 3.51% | 6.83% | 3.83% |
| Q2 2026 | 6.49% | 3.07% | 3.71% | 7.18% | 3.84% |
Preferred Bank yields and funding costs, all the way back
Yields and Funding Costs back to 2001 · peer percentiles on every line item · Excel export
Unlock Preferred Bank, freeSource: Call Report Schedules RI and RC-K, as filed with the FFIEC and standardized by BankRegReports. Dollar amounts are as reported, point-in-time; income statement items are year-to-date through the report date. See the full Preferred Bank profile, peer group comparison, or how this data updates.
Regulator records: FDIC BankFind (cert 33539) · FFIEC NIC profile (RSSD 1918344)