The stock of Preferred Bank drooped 13 percent Friday morning after the bank reported a quarterly loss.

Preferred, which targets the Chinese American market, late Thursday reported a second quarter net loss of $3.1 million or 20 cents per share, compared to a loss of $6.8 million or 69 cents a share for the second quarter last year.

The bank is operating under consent orders imposed in March by the Federal Deposit Insurance Corp. The orders directed the bank to raise capital levels, which it accomplished during the second quarter by issuing $77 million in preferred stock.

“With this new capital, we have significantly exceeded the capital requirements our regulators set forth for us,” Chief Executive Li Yu said in a statement.

Yu also said the bank has $16.5 million in past-due loans, but it expects that $15.5 million of that will be paid off or brought current during the third quarter.

Shares of the Los Angeles-based bank Friday morning fell 29 cents or 13 percent to $1.90.