Bank Safety Analysis
Preferred Bank: final safety record
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CET1 ratio rose 0.96 percentage points from Q1 2026 to Q2 2026, ending at 11.78% against 10.83%. It was the largest change among the key lines on this page. The median for banks in the < $100M asset tier is 19.96% on CET1 ratio. Preferred Bank sits 8.18 points lower, at 11.78% (Q2 2026). From Q3 2023 to Q2 2026, Preferred Bank's CET1 ratio ranged between 10.83% (Q1 2026) and 12.71% (Q4 2024) and its Texas ratio ranged between 2.98% (Q3 2023) and 47.46% (Q3 2025). Between Q2 2025 and Q2 2026, Preferred Bank's CET1 ratio fell from 12.01% to 11.78%, nonperforming loan ratio (nonaccrual plus 90+ days past due) rose from 2.33% to 4.22%, Texas ratio rose from 20.09% to 40.89% and return on assets rose from 0.07% to 0.22%.
Data as of · sourced from FFIEC call reports. How we update
Scorecard by dimension
Peer cohort: Under $100M (578 banks) · Industry averages as of Q2 2026.
CET1 of 11.78% sits comfortably above the 6.5% well-capitalized threshold under Prompt Corrective Action and the 7.0% level required once the capital conservation buffer is included.
Tier 1 leverage of 8.30% is above the 5% well-capitalized threshold.
Nonperforming loans at 4.22% are at a stress-band level above 3%.
Texas Ratio of 40.9% is well below the 100% historical failure threshold.
Efficiency ratio of 92.9% suggests significant cost-to-revenue challenges.
Risk screens
Latest filing (Q2 2026), passing screens included.
| Screen | Value | Trigger | Result |
|---|---|---|---|
| CET1 capital ratio supervisory threshold | 11.78% | Flags below 7% | Within range |
| Texas ratio BankRegReports band | 40.89% | Watch at 50%, concern at 100% | Within range |
| Non-performing loan ratio BankRegReports band | 4.22% | Flags at 3% or above | Flagged |
| Uninsured deposit share BankRegReports band | — | Watch at 50%, concern at 70% | Not reported |
| Loan-to-deposit ratio BankRegReports band | 69.75% | Flags at 100% or above | Within range |
| Commercial real estate to capital supervisory threshold | 150.74% | Watch at 200%, concern at 300% | Within range |
| Held-to-maturity unrealized loss to equity BankRegReports band | 0.00% | Watch at 10%, concern at 25% | Within range |
Capital ratio: last 12 quarters
| Quarter | CET1 (%) |
|---|---|
| Q2 2026 | 11.78% |
| Q1 2026 | 10.83% |
| Q4 2025 | 11.59% |
| Q3 2025 | 11.51% |
| Q2 2025 | 12.01% |
| Q1 2025 | 12.35% |
| Q4 2024 | 12.71% |
| Q3 2024 | 12.38% |
| Q2 2024 | 12.09% |
| Q1 2024 | 11.87% |
| Q4 2023 | 11.94% |
| Q3 2023 | 12.52% |
Texas Ratio: last 12 quarters
| Quarter | Texas Ratio (%) |
|---|---|
| Q2 2026 | 40.89% |
| Q1 2026 | 39.87% |
| Q4 2025 | 25.61% |
| Q3 2025 | 47.46% |
| Q2 2025 | 20.09% |
| Q1 2025 | 22.79% |
| Q4 2024 | 15.33% |
| Q3 2024 | 11.31% |
| Q2 2024 | 19.03% |
| Q1 2024 | 3.88% |
| Q4 2023 | 3.04% |
| Q3 2023 | 2.98% |
Preferred Bank by quarter
| Quarter end | CET1 | NPL ratio | Texas ratio | ROA |
|---|---|---|---|---|
| Jun 30, 2026 | 11.78% | 4.22% | 40.89% | 0.22% |
| Mar 31, 2026 | 10.83% | 4.19% | 39.87% | 0.31% |
| Dec 31, 2025 | 11.59% | 2.96% | 25.61% | 0.16% |
| Sep 30, 2025 | 11.51% | 5.61% | 47.46% | -0.04% |
| Jun 30, 2025 | 12.01% | 2.33% | 20.09% | 0.07% |
| Mar 31, 2025 | 12.35% | 2.90% | 22.79% | -0.05% |
| Dec 31, 2024 | 12.71% | 1.92% | 15.33% | 0.54% |
| Sep 30, 2024 | 12.38% | 1.43% | 11.31% | 0.24% |
| Jun 30, 2024 | 12.09% | 2.28% | 19.03% | 0.31% |
| Mar 31, 2024 | 11.87% | 0.44% | 3.88% | 0.30% |
| Dec 31, 2023 | 11.94% | 0.36% | 3.04% | 0.05% |
| Sep 30, 2023 | 12.52% | 0.33% | 2.98% | 0.37% |
Methodology & disclaimer
Based on the latest FFIEC call report. Model output is an estimate, not a credit rating, and this page is not investment advice. FDIC insurance covers deposits up to $250,000 per depositor per ownership category at any FDIC-insured bank, whatever its safety profile. See the methodology and full profile.
Regulator records: FDIC BankFind (cert 34900) · FFIEC NIC profile (RSSD 2811086)
Explore: Full Preferred Bank profile · Other banks in IL · Metric glossary · How the call report works