What is Preferred Bank's Shariah compliance score?

Preferred Bank's (PFBC) compliance score is being calculated. Check HalalScreener.app for the latest AAOIFI screening results.

Does Preferred Bank pass AAOIFI screening?

Preferred Bank (PFBC) does not pass AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (PFBC: 30.2%), (3) interest-bearing deposits below 30% (PFBC: 65.0%), and (4) prohibited income below 5% (PFBC: 97.5%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for Preferred Bank stock?

Preferred Bank (PFBC) has a non-permissible income ratio of 97.48%. Muslim investors should purify this percentage of any dividends received and capital gains realized from PFBC shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen Preferred Bank for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Preferred Bank (PFBC) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about PFBC's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

PFBC: Is Preferred Bank Halal?

Preferred Bank

NASDAQFinancial ServicesUS

$107.39

-1.86%

Market Cap: 1.3B

Compliance Status

Not Halal

Screened on Jul 19, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

Is Preferred Bank (PFBC) halal? Not Halal. Based on AAOIFI screening, Preferred Bank has involvement in prohibited business activities with a compliance score of 0/100 (Grade: F).

AvoidBorderlineClean

Business activity

Involved in prohibited business activities.

Failed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

30.2% of 30.0% limit

What this means for you

Most scholars advise not holding PFBC

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About Preferred Bank

Preferred Bank offers a wide array of commercial banking products and services throughout the United States. Its primary clients include small and mid-sized businesses and their owners, entrepreneurs, real estate developers and investors, various professionals, and high-net-worth individuals. The institution provides diverse deposit options, such as checking, savings, and money market accounts. They also feature fixed-rate and fixed-maturity certificates of deposit for both retail and non-retail clients, along with individual retirement accounts. On the lending side, Preferred Bank extends real estate mortgage loans secured by a variety of properties, including retail, industrial, office, special purpose, and residential (single and multi-family) assets. They also finance real estate construction projects and offer commercial loans like working capital lines of credit, term loans for capital expenditures, and both commercial and standby letters of credit, in addition to SBA loans. Furthermore, the bank provides extensive trade finance solutions. These encompass commercial and export letters of credit, import lines of credit, international wire transfers, documentary collections, acceptance/trust receipt financing products, export financing, and bills purchase programs. Specialized high-wealth banking services are available for affluent individuals residing in the Pacific Rim region. The bank also supports modern financial management through remote deposit capture, as well as online and mobile banking platforms. Dedicated banking services are provided to professionals such as physicians, accountants, attorneys, and business managers. Manufacturing, service, and distribution companies can benefit from safe deposit boxes, account reconciliation, courier services, and comprehensive cash management solutions. As of December 31, 2021, Preferred Bank operated eleven full-service branch locations across California, including Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine, Diamond Bar, Pico Rivera, Tarzana, and San Francisco. An additional branch is situated in Flushing, New York. The bank was established in 1991 and maintains its headquarters in Los Angeles, California.

Sector: Financial Services · Industry: Banks - Regional

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 19, 2026

Business Activity Screen

Failed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Prohibited industry: Banks - Regional

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: FY 2025Data source: FMP

Halal Alternatives in Financial Services

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

GLDA+

SPDR Gold Shares

$368.41

+0.17%

SLVA+

iShares Silver Trust

$50.78

+0.47%

PSLVA+

Sprott Physical Silver Trust

$21.30

+6.23%

PHYSA+

Sprott Physical Gold Trust

$31.75

+0.19%

ABA+

AllianceBernstein Holding L.P.

$36.03

-1.13%

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JPMorgan Chase & Co.

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Mastercard Incorporated

A+

PYPL

PayPal Holdings, Inc.

C+

BAC

Bank of America Corporation

WFC

Wells Fargo & Company

Free · No credit card required

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Frequently Asked Questions

Is Preferred Bank (PFBC) halal to invest in?

Preferred Bank (PFBC) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did Preferred Bank get a F compliance rating?

Preferred Bank (PFBC) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 30.2% (limit 30%); interest-bearing deposits of 65.0% (limit 30%); prohibited income of 97.48% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Preferred Bank's Shariah verdict?

Preferred Bank's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Preferred Bank re-screened for Shariah compliance?

Preferred Bank (PFBC) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 19, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.