Preferred Bank (NASDAQ:PFBC) Posts Earnings Results, Beats Expectations By $0.13 EPS

Preferred Bank (NASDAQ:PFBC) issued its quarterly earnings results on Wednesday. The bank reported $2.78 EPS for the quarter, topping the consensus estimate of $2.65 by $0.13, Zacks reports. The company had revenue of $73.47 million during the quarter, compared to analysts’ expectations of $73.60 million. Preferred Bank had a net margin of 26.54% and a return on equity of 17.27%.

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

• Preferred Bank reported second-quarter net income of $33.5 million, or $2.78 per share, which management said was up from both the prior quarter and a year ago and above internal budget.
• The bank made meaningful progress on credit cleanup, cutting non-performing loans by $70 million and criticized loans by $90 million, which helped lower provision expense to $1.2 million.
• Loan production was solid, with loans up $125 million, or 2% quarter over quarter, though management noted that competitive pricing and market uncertainty could make third-quarter growth tougher.
• Deposit competition remains intense across the industry, and Preferred Bank said it is seeing some support from DDA growth but expects funding costs to rise as $1.5 billion of CDs mature in the third quarter at an average rate of 3.80%.
• Management expects net interest margin to ease into the mid-3.5% range in Q3 from an adjusted 3.60% in Q2, and said expenses may stay roughly flat as legal and professional fees remain elevated.

Preferred Bank Stock Down 3.3%

Shares of PFBC stock opened at $101.38 on Friday. Preferred Bank has a 12-month low of $81.50 and a 12-month high of $112.26. The company has a quick ratio of 1.06, a current ratio of 1.08 and a debt-to-equity ratio of 0.44. The firm has a fifty day moving average of $100.75 and a 200-day moving average of $94.86. The company has a market capitalization of $1.46 billion, a price-to-earnings ratio of 9.27 and a beta of 0.55.

Preferred Bank Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 21st. Stockholders of record on Tuesday, July 7th were given a dividend of $0.80 per share. The ex-dividend date of this dividend was Tuesday, July 7th. This represents a $3.20 annualized dividend and a dividend yield of 3.2%. Preferred Bank’s dividend payout ratio is currently 29.25%.

Key Preferred Bank News

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

• Positive Sentiment: Preferred Bank reported Q2 2026 EPS of $2.78, beating the consensus estimate of $2.65 and rising from $2.52 a year ago, suggesting stronger profitability. Article Title
• Positive Sentiment: The bank said net income increased to $33.5 million, helped by a $4.7 million sequential increase in net interest income, indicating improved core banking performance. Article Title
• Positive Sentiment: Commentary from the earnings call highlighted strong loan growth and improved asset quality, which can support investor confidence in future earnings stability. Article Title
• Neutral Sentiment: Revenue of $73.47 million was slightly below the consensus estimate of $73.60 million, so top-line results were essentially mixed. Article Title
• Neutral Sentiment: One market recap described the quarter as broadly in line with expectations, suggesting the stock may also be influenced by the balance between the EPS beat and modest revenue shortfall. Article Title

Institutional Investors Weigh In On Preferred Bank

Institutional investors have recently added to or reduced their stakes in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Preferred Bank by 2.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,266 shares of the bank’s stock valued at $608,000 after purchasing an additional 202 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Preferred Bank by 19.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 25,931 shares of the bank’s stock valued at $2,169,000 after purchasing an additional 4,158 shares in the last quarter. Jane Street Group LLC boosted its position in shares of Preferred Bank by 81.0% during the first quarter. Jane Street Group LLC now owns 66,428 shares of the bank’s stock worth $5,557,000 after buying an additional 29,729 shares during the period. EverSource Wealth Advisors LLC grew its holdings in shares of Preferred Bank by 1,224.0% during the second quarter. EverSource Wealth Advisors LLC now owns 331 shares of the bank’s stock worth $29,000 after buying an additional 306 shares in the last quarter. Finally, Jump Financial LLC grew its holdings in shares of Preferred Bank by 148.7% during the second quarter. Jump Financial LLC now owns 14,225 shares of the bank’s stock worth $1,231,000 after buying an additional 8,505 shares in the last quarter. 72.77% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

PFBC has been the topic of several recent research reports. Stephens raised their price target on Preferred Bank from $100.00 to $110.00 and gave the stock an “equal weight” rating in a research report on Thursday. Weiss Ratings upgraded Preferred Bank from a “hold (c+)” rating to a “buy (b-)” rating in a report on Monday, June 8th. Finally, Piper Sandler boosted their target price on Preferred Bank from $105.00 to $111.00 and gave the stock an “overweight” rating in a research report on Monday, April 27th. Two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Preferred Bank presently has an average rating of “Hold” and a consensus price target of $106.25.

Preferred Bank Company Profile

Preferred Bank (NASDAQ: PFBC) is a California-chartered commercial bank headquartered in Los Angeles. The institution offers a full range of banking products and services to businesses and individuals, with a particular emphasis on commercial real estate lending, business banking, treasury management and deposit accounts. Preferred Bank operates through branch offices across Southern California and national loan production offices in major U.S. markets.

The bank’s core lending portfolio focuses on commercial real estate acquisition, development and investment properties.