Preferred Bank (NASDAQ:PFBC) Posts Earnings Results, Beats Expectations By $0.04 EPS

Preferred Bank (NASDAQ:PFBC) announced its quarterly earnings data on Friday. The bank reported $2.73 EPS for the quarter, beating analysts’ consensus estimates of $2.69 by $0.04, Zacks reports. The business had revenue of $71.70 million during the quarter, compared to the consensus estimate of $73.10 million. Preferred Bank had a return on equity of 17.27% and a net margin of 26.54%.

Here are the key takeaways from Preferred Bank’s conference call:

• Third-quarter net income was $32.9 million, or $2.73 per share. Results included a $2.1 million reversal of interest income; excluding that item, net interest margin would have been 3.60% versus the reported 3.49%.
• Deposits increased $77 million, or 1.2%, from the prior quarter, but management expects intense competition to continue through 2027 as customers shift funds toward Treasuries. Nearly $1.7 billion of CDs mature in the fourth quarter and are expected to reprice at approximately 3.75% to 4.00%.
• Although loans declined $14 million during the quarter following the placement of a large credit into held-for-sale status, management said the loan pipeline is now solid and expects stronger growth in the fourth quarter.
• Nonaccrual loans remain elevated, with several anticipated resolutions delayed by bankruptcy court proceedings into next year. Classified loans, including $11.5 million of OREO, totaled $177.6 million at quarter-end.
• Operating expenses benefited from lower professional services and incentive compensation costs, and management expects fourth-quarter expenses of approximately $23 million to $24 million. Executives also cited continued cost discipline and a favorable outlook for 2027.

Preferred Bank Stock Down 1.7%

NASDAQ PFBC traded down $1.90 during trading hours on Friday, reaching $106.72. 279,620 shares of the company traded hands, compared to its average volume of 126,270. The stock has a market capitalization of $1.54 billion, a PE ratio of 9.76 and a beta of 0.57. The company has a 50 day moving average of $104.70 and a two-hundred day moving average of $101.42. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 0.44. Preferred Bank has a 12 month low of $81.50 and a 12 month high of $112.26.

Preferred Bank Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, October 19th. Shareholders of record on Monday, October 5th were issued a dividend of $0.80 per share. The ex-dividend date was Monday, October 5th. This represents a $3.20 annualized dividend and a yield of 3.0%. Preferred Bank’s payout ratio is currently 29.25%.

Analysts Set New Price Targets

A number of analysts have issued reports on PFBC shares. Benchmark raised Preferred Bank to a “strong-buy” rating in a research note on Wednesday, September 23rd. Weiss Ratings upgraded shares of Preferred Bank from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, October 8th. Piper Sandler increased their price objective on shares of Preferred Bank from $115.00 to $120.00 and gave the stock an “overweight” rating in a report on Thursday, October 1st. Finally, Stephens boosted their target price on shares of Preferred Bank from $100.00 to $110.00 and gave the company an “equal weight” rating in a report on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $110.00.

Trending Headlines about Preferred Bank

Here are the key news stories impacting Preferred Bank this week:

• Positive Sentiment: EPS exceeded expectations. Preferred Bank reported third-quarter 2026 diluted earnings of $2.73 per share, topping the consensus estimate of $2.69 by $0.04. Preferred Bank Tops Q3 EPS by 4c
• Positive Sentiment: Profitability remained strong. The bank generated $32.9 million in net income, a 26.54% net margin and a 17.27% return on equity, supporting the company’s profitability profile. Preferred Bank Reports Third Quarter Results
• Neutral Sentiment: Management held its quarterly earnings call. Investors received additional commentary from Chairman and CEO Li Yu and other senior executives regarding the third-quarter results and outlook. Preferred Bank Q3 2026 Earnings Call Transcript
• Negative Sentiment: Revenue missed forecasts. Third-quarter revenue was $71.7 million, below the FactSet estimate of $73.1 million. The miss suggests operating performance was weaker than analysts expected despite the EPS beat. Preferred Bank Q3 Revenue Miss
• Negative Sentiment: Earnings declined from the prior year. Quarterly EPS fell from $2.84 in the year-ago period to $2.73, indicating some year-over-year deterioration in profitability. Preferred Bank Tops Q3 Earnings Estimates

About Preferred Bank

Preferred Bank (NASDAQ: PFBC) is a commercial bank headquartered in Los Angeles, California. Founded in 1991, the bank provides banking and financial services to businesses, professionals and individuals, with a particular focus on commercial banking and relationship-based service.

The bank’s principal offerings include commercial and industrial loans, commercial real estate financing, construction and residential real estate loans, and consumer lending. Preferred Bank also provides deposit accounts, cash-management services, online banking and other treasury-management solutions for business and personal customers.

Preferred Bank operates a network of full-service branches in California and New York, serving customers in major metropolitan markets including the greater Los Angeles area, the San Francisco Bay Area and New York City.