SCHEDULE: Vanguard Reports 0% Stake in Preferred Bank

The Vanguard Group’s amended Schedule 13G shows zero beneficial ownership of Preferred Bank common stock following a January 2026 internal realignment that disaggregates reporting to subsidiaries.

Summary

• The Vanguard Group (Pennsylvania) reports beneficial ownership of 0 shares (0% of class) of Preferred Bank (Los Angeles, CA) common stock (CUSIP 740367404) as of March 13, 2026.
• Sole voting power: 0; Shared voting power: 0; Sole dispositive power: 0; Shared dispositive power: 0.
• Schedule 13G, Amendment No. 5; Type of reporting person: IA (Investment Adviser).
• An internal realignment on January 12, 2026 disaggregates beneficial ownership reporting; certain subsidiaries or business divisions will report separately under SEC Release No. 34-39538 (January 12, 1998).
• Vanguard, Inc. no longer has, or is deemed to have, beneficial ownership over securities held by such subsidiaries/business divisions.
• Ownership is in the ordinary course of business and not for the purpose of changing or influencing control.
• No single other person’s interest in the securities reported is more than 5%.
• Issuer address: 601 South Figueroa Street, 29th Floor, Los Angeles, CA 90017; Vanguard address: 100 Vanguard Blvd., Malvern, PA 19355.
• Signed by Ashley Grim, Head of Global Fund Administration, on March 30, 2026.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as neutral: a technical reporting change with no indicated impact on issuer fundamentals or control dynamics.

Positives

• Confirms passive intent: securities, if any, are held in the ordinary course and not to influence control.
• Provides administrative clarity: post-realignment, subsidiaries/business divisions will report beneficial ownership separately under SEC Release No. 34-39538.
• No single other beneficial interest exceeds 5%, indicating no concentrated third-party entitlement to dividends or sale proceeds within the reported securities.

Negatives

• Parent entity now reports 0% beneficial ownership and no voting or dispositive power, requiring investors to track multiple subsidiary-level reports for a full picture of Vanguard-affiliated holdings.
• Disaggregated reporting may reduce transparency at the parent level compared to aggregated historical reporting.

Future Outlook

No forward-looking statements or guidance provided; this is an administrative change to beneficial ownership reporting.

Management Comments

• Securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control.
• Following the January 12, 2026 internal realignment and in accordance with SEC Release No. 34-39538, certain subsidiaries or business divisions will report beneficial ownership separately; Vanguard, Inc. is no longer deemed to have beneficial ownership over securities held by those entities.

Industry Context

StockSavvy.ai notes that large asset managers periodically restructure and disaggregate beneficial ownership reporting under SEC Release 34-39538, which can shift reported holdings from the parent to subsidiaries without implying underlying portfolio changes at the issuer.

Comparison to Industry Standards

• Consistent with SEC Release No. 34-39538, disaggregated reporting by large asset managers is an accepted practice alongside aggregated parent-level 13G reporting; both frameworks are used across the industry.
• Peer complexes (e.g., global index and active managers) commonly file 13G/13F reports at either the parent or designated subsidiaries; disaggregation typically reflects organizational structure rather than investment thesis changes.
• Relative to industry norms, stating 0% at the parent level post-realignment is neutral for issuer fundamentals and indicates a reporting change rather than a definitive reduction in affiliated holdings.

Stakeholder Impact

• Shareholders may need to review multiple subsidiary-level filings to assess Vanguard-affiliated ownership exposure to Preferred Bank.
• No change in control intent reduces the likelihood of governance-driven actions related to this disclosure.
• Operational impact on Preferred Bank is expected to be minimal given the passive nature of any Vanguard-affiliated holdings.

Next Steps

• Subsidiaries or business divisions of The Vanguard Group to report beneficial ownership separately going forward.
• Investors seeking Vanguard-affiliated ownership in Preferred Bank should monitor subsequent 13G/13F filings by relevant Vanguard subsidiaries.

Key Dates

Keywords

Schedule 13G, beneficial ownership, Preferred Bank, PFBC, The Vanguard Group, institutional ownership, CUSIP 740367404, 13G Amendment No. 5, SEC Release No. 34-39538, internal realignment, investment adviser, passive investor