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

Preferred Bank (NASDAQ:PFBC) issued its earnings results on Wednesday. The bank reported $2.78 earnings per share for the quarter, topping the consensus estimate of $2.65 by $0.13, Zacks reports. The business had revenue of $73.47 million for the quarter, compared to analysts’ expectations of $73.60 million. Preferred Bank had a return on equity of 17.52% and a net margin of 26.49%.

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 1.1%

PFBC opened at $104.89 on Thursday. Preferred Bank has a 52 week low of $81.50 and a 52 week high of $112.26. The business has a 50 day moving average price of $100.55 and a two-hundred day moving average price of $94.82. The company has a quick ratio of 1.06, a current ratio of 1.07 and a debt-to-equity ratio of 0.45. The company has a market cap of $1.51 billion, a PE ratio of 9.82 and a beta of 0.55.

Preferred Bank Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, July 21st. Shareholders of record on Tuesday, July 7th were paid a $0.80 dividend. The ex-dividend date was Tuesday, July 7th. This represents a $3.20 dividend on an annualized basis and a yield of 3.1%. Preferred Bank’s payout ratio is currently 29.96%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. NewEdge Advisors LLC lifted its stake in Preferred Bank by 163.2% during the third quarter. NewEdge Advisors LLC now owns 3,464 shares of the bank’s stock worth $313,000 after purchasing an additional 2,148 shares during the last quarter. PharVision Advisers LLC bought a new position in shares of Preferred Bank in the 3rd quarter worth about $275,000. Brevan Howard Capital Management LP acquired a new position in shares of Preferred Bank in the 3rd quarter valued at about $375,000. Aquatic Capital Management LLC grew its position in shares of Preferred Bank by 6.4% during the 3rd quarter. Aquatic Capital Management LLC now owns 3,954 shares of the bank’s stock valued at $357,000 after buying an additional 238 shares during the last quarter. Finally, Tower Research Capital LLC TRC raised its stake in Preferred Bank by 1,002.3% during the second quarter. Tower Research Capital LLC TRC now owns 3,417 shares of the bank’s stock worth $296,000 after acquiring an additional 3,107 shares during the period. 72.77% of the stock is currently owned by institutional investors and hedge funds.

Preferred Bank News Roundup

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

• Positive Sentiment: Preferred Bank reported Q2 EPS of $2.78, topping the Zacks consensus estimate of $2.65 and coming in above the prior-year quarter’s $2.52. Article title: Preferred Bank (PFBC) Q2 Earnings Surpass Estimates
• Positive Sentiment: The bank said net income rose to $33.5 million from both the prior quarter and the year-ago period, helped by a $4.7 million increase in net interest income versus Q1 and a $3.1 million gain year over year. Article title: Preferred Bank Reports Second Quarter Results
• Neutral Sentiment: Revenue came in at $73.47 million, roughly in line with expectations, but slightly below the cited estimate, which may temper enthusiasm somewhat. Article title: Preferred Bank GAAP EPS of $2.78 beats by $0.13, revenue of $73.47M misses by $0.13M
• Neutral Sentiment: Investors are also digesting the earnings call transcript and key-metrics coverage, which may provide more detail on loan growth, margins, and credit quality but did not add a new major surprise in the headlines. Article title: Preferred Bank (PFBC) Q2 2026 Earnings Call Transcript

Wall Street Analyst Weigh In

Several research firms have recently commented on PFBC. Weiss Ratings upgraded Preferred Bank from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, June 8th. Piper Sandler boosted their price objective on Preferred Bank from $105.00 to $111.00 and gave the company an “overweight” rating in a report on Monday, April 27th. Three research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, Preferred Bank presently has an average rating of “Hold” and a consensus price target of $102.00.

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.