Latest news with #PreferredBank
Business Insider
13 hours ago
- Business
- Business Insider
Piper Sandler Keeps Their Buy Rating on Preferred Bank (PFBC)
Piper Sandler analyst Matthew Clark maintained a Buy rating on Preferred Bank today and set a price target of $112.00. The company's shares closed today at $97.01. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Clark is a 4-star analyst with an average return of 9.4% and a 58.59% success rate. Clark covers the Financial sector, focusing on stocks such as Columbia Banking System, Preferred Bank, and Cathay General Bancorp. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Preferred Bank with a $99.00 average price target.
Yahoo
a day ago
- Business
- Yahoo
Preferred Bank (PFBC) Stock Trades Up, Here Is Why
What Happened? Shares of commercial banking company Preferred Bank (NASDAQ:PFBC) jumped 6.8% in the afternoon session after the company reported second-quarter financial results that surpassed Wall Street expectations. The Los Angeles-based commercial bank announced earnings of $2.52 per share for the quarter, beating the Consensus Estimate. The bank's revenue also topped forecasts. The strong results were driven by an increase in net income compared to the previous quarter, an improved net interest margin, and growth in the bank's loan portfolio. Net interest margin, a key measure of a bank's profitability, rose to 3.85% from 3.75% in the first quarter. Additionally, the bank saw an improvement in its credit quality, with a notable decrease in non-accrual loans. Is now the time to buy Preferred Bank? Access our full analysis report here, it's free. What Is The Market Telling Us Preferred Bank's shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. Preferred Bank is up 15.6% since the beginning of the year, and at $98.85 per share, has set a new 52-week high. Investors who bought $1,000 worth of Preferred Bank's shares 5 years ago would now be looking at an investment worth $2,351. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
San Francisco Chronicle
a day ago
- Business
- San Francisco Chronicle
Preferred Bank: Q2 Earnings Snapshot
LOS ANGELES (AP) — LOS ANGELES (AP) — Preferred Bank (PFBC) on Monday reported second-quarter profit of $32.8 million. The Los Angeles-based bank said it had earnings of $2.52 per share. The results surpassed Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of $2.43 per share. The independent commercial bank posted revenue of $124.2 million in the period. Its revenue net of interest expense was $70.6 million, also topping Street forecasts. _____
Yahoo
a day ago
- Business
- Yahoo
Preferred Bank Reports Second Quarter Results
LOS ANGELES, July 21, 2025 (GLOBE NEWSWIRE) -- Preferred Bank (NASDAQ: PFBC), one of the larger independent California banks, today reported results for the quarter ended June 30, 2025. Preferred Bank ('the Bank') reported net income of $32.8 million or $2.52 per diluted share for the second quarter of 2025. This represents an increase in net income of $2.8 million from the prior quarter and a small decrease of $745,000 from the same quarter last year. The increase compared to the prior quarter was mainly due to an increase in net interest income as there was a $2.8 million reversal of interest income which occurred in the first quarter of 2025. The decrease from the same quarter last year was due mainly to an increase in noninterest expense, which was up by $2.8 million, which was due to a $1.3 million write down of the Bank's Santa Barbara OREO property. Highlights for the Quarter: Return on average assets was 1.85% Return on average equity was 17.55% Total loans increased by $105.2 million or 1.9%, linked quarter The efficiency ratio was 31.79% Li Yu, Chairman and CEO, commented, 'We are pleased to report our results for the second quarter of 2025. We recorded net income of $32.8 million or $2.52 per fully diluted share. This quarter we had an increase in our loan portfolio of 1.8% (linked quarter), however, deposits only increased slightly. The Bank's net interest margin improved to 3.85%. Last quarter we reported a net interest margin of 3.75% which was negatively impacted by an outsized interest reversal. Our credit quality is trending positively, non-accrual loans decreased from $78.9 million as of March 31, 2025 to $51.2 million at June 30, 2025. Total criticized loans also decreased by a similar amount. Likewise, 30 – 89 days past due loans are trending positively, too. The uncertainty caused by the tariffs is beginning to clear up, and together with a new budget we now have a better picture of our operating environment. We look forward to be able to plan for the Bank's future.' Results of Operations Net interest income before provision for credit losses was $66.9 million for the second quarter of 2025. This represents a $4.2 million increase over the $62.7 million recorded in the prior quarter and a $767,000 increase over the same quarter last year. The increase compared to the prior quarter was due to a $2.8 million reversal of interest income in the prior quarter due to the recognition of two non-accrual loans. The increase over the same period last year was due primarily to loan growth and growth in the investment portfolio, partially offset by growth in deposits. Interest expense decreased by $7.6 million from the second quarter of 2024 due to lower deposit rates but increased over the prior quarter due to deposit growth and FHLB borrowings expense. During the second quarter of 2025, the Bank borrowed $200 million in term borrowings from the FHLB and invested the funds in U.S. Treasuries to lock in an interest spread. Because the spread on the borrowings and the U.S. Treasuries was less than the Bank's net interest margin, it has the effect of compressing the margin but does increase net interest income. The Bank's net interest margin came in at 3.85% for the quarter, this is up from the 3.75% posted last quarter but down from the 3.96% margin achieved in the second quarter of the prior year. For the second quarter of 2025, noninterest income was $3.8 million compared with $3.4 million for the same quarter last year and compared to $4.0 million for the first quarter of 2025. The increase over the same quarter last year was due to letter of credit (LC) fee income which was up by $584,000. In comparison to the prior quarter, other income was down by $142,000 and gains on SBA loan sales were down by $103,000. . Total noninterest expense was $22.5 million for the second quarter of 2025 compared to $23.4 million for the first quarter of 2025 and compared to the $19.7 million recorded in the same period last year. The primary reason for the decrease from the prior quarter was mainly due to personnel expense which decreased by $592,000. The decrease was due to payroll taxes which spike in the first quarter due to the payout of incentive compensation. In comparing to the same quarter last year, personnel expense was up by $1.3 million, occupancy expense was up by $555,000 and OREO expense was up by $1.5 million due to a valuation charge of $1.3 million related to the OREO property in Santa Barbara. Salary expenses increased over the same quarter last year due mainly to an increase in personnel and merit increases as well as a decrease in loan origination cost deferrals. The Bank recorded a provision for income taxes of $13.7 million for the second quarter of 2025. This represents an effective tax rate ('ETR') of 29.5% which is up from the 29.0% ETR for the same quarter last year and the same as the 29.5% ETR recorded in the prior quarter. The Bank's ETR will fluctuate slightly from quarter to quarter within a fairly small range due to the timing of taxable events throughout the year. Balance Sheet Summary Total gross loans at June 30, 2025 were $5.74 billion, an increase of $99.0 million from the total of $5.64 billion as of December 31, 2024. Total deposits were $6.08 billion, an increase of $161.5 million from the $5.92 billion as of December 31, 2024. Total assets were $7.28 billion, an increase of $355.3 million over the total of $6.92 billion as of December 31, 2024. Asset Quality Non-accrual loans and loans 90 days or more past due and still accruing totaled $52.3 million as of June 30, 2025. This represents a decrease from the prior quarter of $26.6 million as the Bank sold one of the two larger non-accrual loans during the quarter, at par. The other significant non-accrual loan of $37.1 million is in bankruptcy and as previously mentioned, the Bank does not expect any loss content on the resolution of this loan. Total net charge-offs (recoveries) for the quarter were $44,000 compared to net recoveries of ($97,000) in the prior quarter. In addition to that, the Bank wrote down the value of its OREO property in Santa Barbara by $1.3 million, reflecting the proposed net proceeds of the most recent sales contract that the Bank was involved in, which sale did not materialize. Total criticized loans decreased to $104.5 million from $129.2 million reported in the prior quarter. Allowance for Credit Losses The provision for credit losses for the second quarter of 2025 was $1.6 million compared to $700,000 last quarter and compared to $2.5 million in the same quarter last year. The Bank's allowance coverage ratio increased to 1.29% of loans as compared to 1.28% in the prior quarter. Capitalization As of June 30, 2025, the Bank's tangible capital ratio was 10.26%, the leverage ratio was 10.73%, the common equity tier 1 capital ratio was 11.18% and the total capital ratio stood at 14.43%. As of December 31, 2024, the Bank's tangible capital ratio was 11.02%, the Bank's leverage ratio was 11.33%, the common equity tier 1 ratio was 11.80% and the total capital ratio was 15.11%. Conference Call and Webcast A conference call with simultaneous webcast to discuss Preferred Bank's second quarter 2025 financial results will be held this afternoon July 21, 2025 at 2:00 p.m. Eastern / 11:00 a.m. Pacific. Interested participants and investors may access the conference call by dialing 888-243-4451 (domestic) or 412-542-4135 (international) and referencing 'Preferred Bank.' There will also be a live webcast of the call available at the Investor Relations section of Preferred Bank's website at Preferred Bank's Chairman and CEO Li Yu, President and Chief Operating Officer Wellington Chen, Chief Financial Officer Edward J. Czajka, Chief Credit Officer Nick Pi and Deputy Chief Operating Officer Johnny Hsu will discuss Preferred Bank's financial results, business highlights and outlook. After the live webcast, a replay will be available at the Investor Relations section of Preferred Bank's website. A replay of the call will also be available at 877-344-7529 (domestic) or 412-317-0088 (international) through July 28, 2025; the passcode is 9171084. About Preferred Bank Preferred Bank is one of the larger independent commercial banks headquartered in California. The Bank is chartered by the State of California, and its deposits are insured by the Federal Deposit Insurance Corporation, or FDIC, to the maximum extent permitted by law. The Bank conducts its banking business from its main office in Los Angeles, California, and through twelve full-service branch banking offices in California (Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine (2), Diamond Bar, Pico Rivera, Tarzana and San Francisco (2)), two branches in New York (Manhattan and Flushing, Queens) and a branch office in the Houston, Texas suburb of Sugar Land. In addition, the Bank also operates a loan production office in Sunnyvale, California. Preferred Bank offers a broad range of deposit and loan products and services to both commercial and consumer customers. The Bank provides personalized deposit services as well as real estate finance, commercial loans and trade finance to small and mid-sized businesses, entrepreneurs, real estate developers, professionals and high net worth individuals. Although originally founded as a Chinese-American Bank, Preferred Bank now derives most of its customers from the diversified mainstream market but does continue to benefit from the significant migration to California of ethnic Chinese from China and other areas of East Asia. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the Bank's future financial and operating results, the Bank's plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the Bank's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: changes in economic conditions; changes in the California real estate market; the loss of senior management and other employees; natural disasters or recurring energy shortage; changes in interest rates; competition from other financial services companies; ineffective underwriting practices; inadequate allowance for loan and lease losses to cover actual losses; risks inherent in construction lending; adverse economic conditions in Asia; downturn in international trade; inability to attract deposits; inability to raise additional capital when needed or on favorable terms; inability to manage growth; inadequate communications, information, operating and financial control systems, technology from fourth party service providers; the U.S. government's monetary policies; government regulation; environmental liability with respect to properties to which the bank takes title; and the threat of terrorism. Additional factors that could cause the Bank's results to differ materially from those described in the forward-looking statements can be found in the Bank's 2024 Annual Report on Form 10-K filed with the Federal Deposit Insurance Corporation which can be found on Preferred Bank's website. The forward-looking statements in this press release speak only as of the date of the press release, and the Bank assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contained in the forward-looking statements. For additional information about Preferred Bank, please visit the Bank's website at AT THE COMPANY: AT FINANCIAL PROFILES: Edward J. CzajkaExecutive Vice PresidentChief Financial Officer(213) 891-1188 Jeffrey HaasGeneral Information(310) 622-8240PFBC@ PREFERRED BANK Condensed Consolidated Statements of Operations (unaudited) (in thousands, except for net income per share and shares) For the Quarter Ended June 30, March 31, June 30, 2025 2025 2024 Interest income: Loans, including fees $ 105,884 $ 101,491 $ 109,451 Investment securities 14,326 12,810 17,552 Fed funds sold 233 228 291 Total interest income 120,443 114,529 127,294 Interest expense: Interest-bearing demand 16,171 16,590 24,205 Savings 71 69 79 Time certificates 34,932 33,887 35,578 FHLB borrowings 1,070 - - Subordinated debt 1,325 1,325 1,325 Total interest expense 53,569 51,871 61,187 Net interest income 66,874 62,658 66,107 Provision for credit losses 1,600 700 2,500 Net interest income after provision for credit losses 65,274 61,958 63,607 Noninterest income: Fees & service charges on deposit accounts 635 716 819 Letters of credit fee income 2,333 2,244 1,749 BOLI income 104 103 105 Net gain on sale of other real estate owned 12 - - Net gain on sale of loans 172 275 353 Other income 518 660 378 Total noninterest income 3,774 3,998 3,404 Noninterest expense: Salary and employee benefits 14,247 14,839 12,944 Net occupancy expense 2,271 2,294 1,716 Business development and promotion expense 240 462 403 Professional services 1,507 1,651 1,832 Office supplies and equipment expense 419 386 477 OREO valuation allowance and related expense 1,491 1,531 29 Other 2,282 2,206 2,296 Total noninterest expense 22,457 23,369 19,697 Income before provision for income taxes 46,591 42,587 47,314 Income tax expense 13,744 12,563 13,722 Net income $ 32,847 $ 30,024 $ 33,592 Income per share available to common shareholders Basic $ 2.56 $ 2.27 $ 2.51 Diluted $ 2.52 $ 2.23 $ 2.48 Weighted-average common shares outstanding Basic 12,833,453 13,226,582 13,362,522 Diluted 13,038,937 13,453,176 13,548,400 Cash dividends per common share $ 0.75 $ 0.75 $ 0.70 PREFERRED BANK Condensed Consolidated Statements of Operations (unaudited) (in thousands, except for net income per share and shares) For the Six Months Ended June 30, June 30, Change 2025 2024 % Interest income: Loans, including fees $ 207,375 219,431 -5.5 % Investment securities 27,136 33,809 -19.7 % Fed funds sold 461 574 -19.7 % Total interest income 234,972 253,814 -7.4 % Interest expense: Interest-bearing demand 32,761 46,495 -29.5 % Savings 140 154 -8.8 % Time certificates 68,819 69,908 -1.6 % FHLB borrowings 1,070 - 100.0 % Subordinated debt 2,650 2,650 0.0 % Total interest expense 105,440 119,207 -11.5 % Net interest income 129,532 134,607 -3.8 % Provision for credit losses 2,300 6,900 -66.7 % Net interest income after provision for credit losses 127,232 127,707 -0.4 % Noninterest income: Fees & service charges on deposit accounts 1,351 1,664 -18.8 % Letters of credit fee income 4,578 3,252 40.8 % BOLI income 207 210 -1.7 % Net gain on sale of other real estate owned 12 - 100.0 % Net gain on sale of loans 447 456 -1.9 % Other income 1,177 887 32.8 % Total noninterest income 7,772 6,469 20.1 % Noninterest expense: Salary and employee benefits 29,086 26,844 8.4 % Net occupancy expense 4,565 3,427 33.2 % Business development and promotion expense 702 669 4.9 % Professional services 3,158 3,289 -4.0 % Office supplies and equipment expense 805 950 -15.3 % OREO valuation allowance and related expense 3,022 164 1742.7 % Other 4,488 4,382 2.4 % Total noninterest expense 45,826 39,725 15.4 % Income before provision for income taxes 89,178 94,451 -5.6 % Income tax expense 26,307 27,393 -4.0 % Net income $ 62,871 $ 67,058 -6.2 % Income per share available to common shareholders Basic $ 4.84 $ 4.99 -3.0 % Diluted $ 4.77 $ 4.93 -3.3 % Weighted-average common shares outstanding Basic 12,989,636 13,435,700 -3.3 % Diluted 13,193,850 13,608,783 -3.0 % Dividends per share $ 1.50 $ 1.40 7.1 % PREFERRED BANK Condensed Consolidated Statements of Financial Condition (unaudited) (in thousands) June 30, December 31, 2025 2024 (Unaudited) (Audited) Assets Cash and due from banks $ 776,257 $ 765,515 Fed funds sold 20,000 20,000 Cash and cash equivalents 796,257 785,515 Securities held-to-maturity, at amortized cost 19,456 20,021 Securities available-for-sale, at fair value 577,040 348,706 Loans held for sale, at lower of cost or fair value - 2,214 Loans 5,739,610 5,640,615 Less allowance for credit losses (73,830 ) (71,477 ) Less amortized deferred loan fees, net (11,940 ) (9,234 ) Loans, net 5,653,840 5,559,904 Other real estate owned and repossessed assets 13,755 14,991 Customers' liability on acceptances - - Bank furniture and fixtures, net 8,021 8,462 Bank-owned life insurance 10,571 10,433 Accrued interest receivable 31,757 33,561 Investment in affordable housing partnerships 74,783 58,346 Federal Home Loan Bank stock, at cost 15,000 15,000 Deferred tax assets 46,012 47,402 Income tax receivable 9,744 2,195 Operating lease right-of-use assets 19,346 13,182 Other assets 3,178 3,497 Total assets $ 7,278,760 $ 6,923,429 Liabilities and Shareholders' Equity Deposits: Noninterest bearing demand deposits $ 675,102 $ 704,859 Interest bearing deposits: 2,004,135 2,026,965 Savings 34,333 30,150 Time certificates of $250,000 or more 1,681,026 1,477,931 Other time certificates 1,683,737 1,676,943 Total deposits 6,078,333 5,916,848 Advances from Federal Home Loan Bank 200,000 - Subordinated debt issuance, net 148,588 148,469 Commitments to fund investment in affordable housing partnerships 30,645 21,623 Operating lease liabilities 23,096 16,990 Accrued interest payable 15,549 16,517 Other liabilities 34,889 39,830 Total liabilities 6,531,100 6,160,277 Shareholders' equity 747,660 763,152 Total liabilities and shareholders' equity $ 7,278,760 $ 6,923,429 Book value per common share $ 60.19 $ 57.86 Number of common shares outstanding 12,420,731 13,188,776 PREFERRED BANK Selected Consolidated Financial Information (unaudited) (in thousands, except for ratios) For the Quarter Ended June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 Unaudited historical quarterly operations data: Interest income $ 120,443 $ 114,529 $ 125,858 $ 129,424 $ 127,294 Interest expense 53,569 51,871 56,685 60,576 61,187 Interest income before provision for credit losses 66,874 62,658 69,173 68,848 66,107 Provision for credit losses 1,600 700 2,000 3,200 2,500 Noninterest income 3,774 3,998 3,637 3,459 3,404 Noninterest expense 22,457 23,369 28,246 22,089 19,697 Income tax expense 13,744 12,563 12,343 13,635 13,722 Net income $ 32,847 $ 30,024 $ 30,221 $ 33,383 $ 33,592 Earnings per share Basic $ 2.56 $ 2.27 $ 2.29 $ 2.50 $ 2.51 Diluted $ 2.52 $ 2.23 $ 2.25 $ 2.46 $ 2.48 Ratios for the period: Return on average assets 1.85 % 1.76 % 1.74 % 1.95 % 1.97 % Return on average equity 17.55 % 15.62 % 15.81 % 17.77 % 18.89 % Net interest margin (Fully-taxable equivalent) 3.85 % 3.75 % 4.06 % 4.10 % 3.96 % Noninterest expense to average assets 1.26 % 1.37 % 1.62 % 1.29 % 1.15 % Efficiency ratio 31.79 % 35.06 % 38.79 % 30.55 % 28.34 % Net (recoveries) charge-offs to average loans (annualized) 0.00 % -0.01 % 0.47 % -0.00 % 0.68 % Ratios as of period end: Tangible common equity ratio 10.26 % 10.96 % 11.02 % 10.92 % 10.55 % Tier 1 leverage capital ratio 10.73 % 11.52 % 11.33 % 11.28 % 10.89 % Common equity tier 1 risk-based capital ratio 11.18 % 11.86 % 11.80 % 11.66 % 11.52 % Tier 1 risk-based capital ratio 11.18 % 11.86 % 11.80 % 11.66 % 11.52 % Total risk-based capital ratio 14.43 % 15.15 % 15.11 % 15.06 % 14.93 % Allowances for credit losses to loans at end of period 1.29 % 1.28 % 1.27 % 1.36 % 1.34 % Allowance for credit losses to non-performing loans 1.41x 0.91x 1.89x 3.92x 1.79x Average balances: Total securities $ 503,861 $ 402,754 $ 350,732 $ 356,590 $ 353,357 Total loans 5,623,010 5,555,010 5,542,558 5,458,613 5,320,360 Total earning assets 6,984,272 6,780,438 6,788,487 6,684,766 6,728,498 Total assets 7,121,047 6,905,249 6,920,325 6,817,979 6,863,829 Total time certificate of deposits 3,321,327 3,164,766 3,144,523 2,874,985 2,884,259 Total interest bearing deposits 5,345,308 5,244,243 5,220,655 5,124,245 5,203,034 Total deposits 6,005,486 5,886,163 5,905,127 5,828,227 5,901,976 Total interest bearing liabilities 5,614,737 5,392,735 5,369,092 5,272,617 5,351,347 Total equity 750,535 779,339 760,345 747,222 715,190 PREFERRED BANK Selected Consolidated Financial Information (unaudited) (in thousands, except for ratios) For the Six Months Ended June 30, June 30, 2025 2024 Interest income $ 234,972 $ 253,814 Interest expense 105,440 119,207 Interest income before provision for credit losses 129,532 134,607 Provision for credit losses 2,300 6,900 Noninterest income 7,772 6,469 Noninterest expense 45,826 39,725 Income tax expense 26,307 27,393 Net income $ 62,871 $ 67,058 Earnings per share Basic $ 4.84 $ 4.99 Diluted $ 4.77 $ 4.93 Ratios for the period: Return on average assets 1.81 % 1.99 % Return on average equity 16.58 % 18.99 % Net interest margin (Fully-taxable equivalent) 3.80 % 4.07 % Noninterest expense to average assets 1.32 % 1.18 % Efficiency ratio 33.38 % 28.16 % Net charge-off to average loans -0.00 % 0.47 % Average balances: Total securities $ 453,588 $ 351,159 Total loans 5,589,198 5,291,961 Total earning assets 6,882,920 6,657,176 Total assets 7,013,744 6,790,924 Total time certificate of deposits 3,243,479 2,868,560 Total interest bearing deposits 5,295,055 5,103,935 Total deposits 5,946,154 5,831,732 Total interest bearing liabilities 5,504,349 5,252,219 Total equity 764,857 710,093 PREFERRED BANK Selected Consolidated Financial Information (unaudited) (in thousands, except for ratios) As of June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024 Unaudited quarterly statement of financial position data: Assets: Cash and cash equivalents $ 796,257 $ 925,183 $ 785,515 $ 804,994 $ 917,677 Securities held-to-maturity, at amortized cost 19,456 19,745 20,021 20,311 20,605 Securities available-for-sale, at fair value 577,040 390,096 348,706 337,363 331,909 Loans: Real estate – Mortgage: Real estate—Residential $ 767,621 $ 779,462 $ 790,069 $ 753,453 $ 732,251 Real estate—Commercial 2,868,307 2,897,956 2,840,771 2,882,506 2,833,430 Total Real Estate – Mortgage 3,635,928 3,677,418 3,630,840 3,635,959 3,565,681 Real estate – Construction: R/E Construction — Residential 291,343 306,283 296,580 274,214 238,062 R/E Construction — Commercial 303,354 269,065 287,185 290,308 247,582 Total real estate construction loans 594,697 575,348 583,765 564,522 485,644 Commercial and industrial 1,501,188 1,374,379 1,418,930 1,365,550 1,371,694 SBA 7,741 7,104 6,833 5,424 5,463 Consumer and others 56 164 247 124 118 Gross loans 5,739,610 5,634,413 5,640,615 5,571,579 5,428,600 Allowance for credit losses on loans (73,830 ) (72,274 ) (71,477 ) (76,051 ) (72,848 ) Net deferred loan fees (11,940 ) (9,652 ) (9,234 ) (10,414 ) (10,502 ) Net loans, excluding loans held for sale $ 5,653,840 $ 5,552,487 $ 5,559,904 $ 5,485,114 $ 5,345,250 Loans held for sale $ - $ - $ 2,214 $ 225 $ 955 Net loans $ 5,653,840 $ 5,552,487 $ 5,562,118 $ 5,485,339 $ 5,346,205 Other real estate owned and repossessed assets $ 13,755 $ 13,650 $ 14,991 $ 15,082 $ 16,716 Investment in affordable housing partnerships 74,783 63,612 58,346 58,009 60,432 Federal Home Loan Bank stock, at cost 15,000 15,000 15,000 15,000 15,000 Other assets 128,629 120,319 118,732 136,246 138,036 Total assets $ 7,278,760 $ 7,100,092 $ 6,923,429 $ 6,872,344 $ 6,846,580 Liabilities: Deposits: Demand $ 675,102 $ 730,270 $ 704,859 $ 682,859 $ 675,767 Interest bearing demand 2,004,135 2,099,987 2,026,965 1,994,288 2,326,214 Savings 34,333 32,631 30,150 29,793 28,251 Time certificates of $250,000 or more 1,681,026 1,531,715 1,477,931 1,478,500 1,406,149 Other time certificates 1,683,737 1,678,132 1,676,943 1,682,324 1,442,381 Total deposits $ 6,078,333 $ 6,072,735 $ 5,916,848 $ 5,867,764 $ 5,878,762 Subordinated debt issuance, net 148,588 148,529 148,469 148,410 148,351 Commitments to fund investment in affordable housing partnerships 30,645 20,956 21,623 23,617 27,946 Other liabilities 73,534 79,268 73,337 82,436 68,394 Total liabilities $ 6,531,100 $ 6,321,488 $ 6,160,277 $ 6,122,227 $ 6,123,453 Equity: Net common stock, no par value $ 40,965 $ 96,079 $ 105,501 $ 109,928 $ 113,509 Retained earnings 728,891 705,360 685,108 664,808 640,675 Accumulated other comprehensive income (22,196 ) (22,835 ) (27,457 ) (24,619 ) (31,057 ) Total shareholders' equity $ 747,660 $ 778,604 $ 763,152 $ 750,117 $ 723,127 Total liabilities and shareholders' equity $ 7,278,760 $ 7,100,092 $ 6,923,429 $ 6,872,344 $ 6,846,580 PREFERRED BANK Quarter-to-Date Average Balances, Yield and Rates (Unaudited) Three months ended June 30, Three months ended March 31, Three months ended June 30, 2025 2025 2024 Interest Average Interest Average Interest Average Average Income or Yield/ Average Income or Yield/ Average Income or Yield/ Balance Expense Rate Balance Expense Rate Balance Expense Rate ASSETS (Dollars in thousands) Interest earning assets: Loans (1,2) $ 5,632,204 $ 105,884 7.54 % $ 5,556,521 $ 101,491 7.41 % $ 5,324,410 $ 109,451 8.27 % Investment securities (3) 503,861 5,195 4.14 % 402,754 4,093 4.12 % 353,357 3,652 4.16 % Federal funds sold 20,511 233 4.56 % 20,222 228 4.57 % 20,866 291 5.61 % Other earning assets 827,696 9,230 4.47 % 800,941 8,816 4.46 % 1,029,865 13,999 5.47 % Total interest earning assets 6,984,272 120,542 6.92 % 6,780,438 114,628 6.86 % 6,728,498 127,393 7.61 % Deferred loan fees, net (10,005 ) (9,189 ) (10,459 ) Allowance for credit losses on loans (72,328 ) (71,550 ) (79,119 ) Noninterest earning assets: Cash and due from banks 12,590 11,513 10,626 Bank furniture and fixtures 8,215 8,439 9,787 Right of use assets 19,917 15,201 22,886 Other assets 178,386 170,397 181,610 Total assets $ 7,121,047 $ 6,905,249 $ 6,863,829 LIABILITIES AND SHAREHOLDERS' EQUITY Interest bearing liabilities: Deposits: Interest bearing demand and savings $ 2,023,981 $ 16,242 3.22 % $ 2,079,477 $ 16,659 3.25 % $ 2,318,775 $ 24,284 4.21 % TCD $250K or more 1,644,322 17,092 4.17 % 1,482,324 15,640 4.28 % 1,379,116 17,295 5.04 % Other time certificates 1,677,005 17,840 4.27 % 1,682,442 18,247 4.40 % 1,505,143 18,283 4.89 % Total interest bearing deposits 5,345,308 51,174 3.84 % 5,244,243 50,546 3.91 % 5,203,034 59,862 4.63 % Advance from Federal Home Loan Bank 120,879 1,070 3.55 % - - 0.00 % - - 0.00 % Subordinated debt, net 148,550 1,325 3.58 % 148,492 1,325 3.62 % 148,313 1,325 3.59 % Total interest bearing liabilities 5,614,737 53,569 3.83 % 5,392,735 51,871 3.90 % 5,351,347 61,187 4.60 % Noninterest bearing liabilities: Demand deposits 660,178 641,920 698,942 Lease liability 23,657 18,963 19,828 Other liabilities 71,940 72,292 78,522 Total liabilities 6,370,512 6,125,910 6,148,639 Shareholders' equity 750,535 779,339 715,190 Total liabilities and shareholders' equity $ 7,121,047 $ 6,905,249 $ 6,863,829 Net interest income $ 66,973 $ 62,757 $ 66,206 Net interest spread 3.10 % 2.96 % 3.02 % Net interest margin 3.85 % 3.75 % 3.96 % Cost of Deposits: Noninterest bearing demand deposits $ 660,178 $ 641,920 $ 698,942 Interest bearing deposits 5,345,308 51,174 3.84 % 5,244,243 50,546 3.91 % 5,203,034 59,862 4.63 % Total Deposits $ 6,005,486 $ 51,174 3.42 % $ 5,886,163 $ 50,546 3.48 % $ 5,901,976 $ 59,862 4.08 % (1) Includes non-accrual loans and loans held for sale (2) Net loan fee income of $1.1 million, $0.9 million and $1.3 million for the quarter ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively, are included in the yield computations (3) Yields on securities have been adjusted to a tax-equivalent basis PREFERRED BANK Year-to-Date Average Balances, Yield and Rates (Unaudited) Six Months ended June 30, 2025 2024 Interest Average Interest Average Average Income or Yield/ Average Income or Yield/ Balance Expense Rate Balance Expense Rate ASSETS (Dollars in thousands) Interest earning assets: Loans (1,2) $ 5,594,572 $ 207,375 7.47 % $ 5,295,175 $ 219,431 8.33 % Investment securities (3) 453,588 9,289 4.13 % 351,159 7,082 4.06 % Federal funds sold 20,367 461 4.56 % 20,628 574 5.60 % Other earning assets 814,393 18,045 4.47 % 990,214 26,927 5.47 % Total interest earning assets 6,882,920 235,170 6.89 % 6,657,176 254,014 7.67 % Deferred loan fees, net (9,599 ) (10,576 ) Allowance for credit losses on loans (71,941 ) (78,734 ) Noninterest earning assets: Cash and due from banks 11,846 10,729 Bank furniture and fixtures 8,326 9,936 Right of use assets 17,572 22,444 Other assets 174,620 179,949 Total assets $ 7,013,744 $ 6,790,924 LIABILITIES AND SHAREHOLDERS' EQUITY Interest bearing liabilities: Deposits: Interest bearing demand/ savings $ 2,051,576 $ 32,901 3.23 % $ 2,235,375 $ 46,649 4.20 % TCD $250K or more 1,563,771 32,732 4.22 % 1,360,207 33,796 5.00 % Other time certificates 1,679,708 36,087 4.33 % 1,508,353 36,112 4.81 % Total interest bearing deposits 5,295,055 101,720 3.87 % 5,103,935 116,557 4.59 % Short-term borrowings - - 0.00 % - - 0.00 % Advance from Federal Home Loan Bank 60,773 1,070 3.55 % - - 0.00 % Subordinated debt, net 148,521 2,650 3.60 % 148,284 2,650 3.59 % Total interest bearing liabilities 5,504,349 105,440 3.86 % 5,252,219 119,207 4.56 % Noninterest bearing liabilities: Demand deposits 651,099 727,797 Lease liability 21,323 19,664 Other liabilities 72,116 81,151 Total liabilities 6,248,887 6,080,831 Shareholders' equity 764,857 710,093 Total liabilities and shareholders' equity $ 7,013,744 $ 6,790,924 Net interest income $ 129,730 $ 134,807 Net interest spread 3.03 % 3.11 % Net interest margin 3.80 % 4.07 % Cost of Deposits: Noninterest bearing demand deposits $ 651,099 $ 727,797 Interest bearing deposits 5,295,055 101,720 3.87 % 5,103,935 116,557 4.59 % Total Deposits $ 5,946,154 $ 101,720 3.45 % $ 5,831,732 $ 116,557 4.02 % (1) Includes non-accrual loans and loans held for sale (2) Net loan fee income of $1.9 million and $2.4 million for the six months ended June 30, 2025 and 2024, respectively, are included in the yield computations (3) Yields on securities have been adjusted to a tax-equivalent basis PREFERRED BANK Loan and Credit Quality Information Allowance For Credit Losses History Six Months Ended Year Ended June 30, 2025 December 31, 2024 (Dollars in 000's) Allowance For Credit Losses Balance at Beginning of Period $ 71,477 $ 78,355 Charge-Offs Commercial & Industrial 8 19,028 Mini-perm Real Estate 132 - Total Charge-Offs 140 19,028 Recoveries Commercial & Industrial 193 50 Total Recoveries 193 50 Net (Recoveries) Charge-Offs (53 ) 18,978 Provision for Credit Losses: 2,300 12,100 Balance at End of Period $ 73,830 $ 71,477 Average Loans Held for Investment $ 5,589,198 $ 5,396,844 Loans Held for Investment at End of Period $ 5,739,610 $ 5,640,615 Net (Recoveries) Charge-Offs to Average Loans 0.00 % 0.35 % Allowances for Credit Losses to Loans at End of Period 1.29 % 1.27 % Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Earnings To Watch: Preferred Bank (PFBC) Reports Q2 Results Tomorrow
Commercial banking company Preferred Bank (NASDAQ:PFBC) will be announcing earnings results this Monday before market open. Here's what investors should know. Preferred Bank missed analysts' revenue expectations by 5.5% last quarter, reporting revenues of $66.66 million, down 6.9% year on year. It was a disappointing quarter for the company, with a significant miss of analysts' net interest income estimates and a miss of analysts' EPS estimates. Is Preferred Bank a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Preferred Bank's revenue to grow 1.9% year on year to $70.82 million, a reversal from the 9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.43 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Preferred Bank has missed Wall Street's revenue estimates three times over the last two years. Looking at Preferred Bank's peers in the regional banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Texas Capital Bank delivered year-on-year revenue growth of 15.2%, beating analysts' expectations by 2.7%, and Nicolet Bankshares reported revenues up 12.7%, topping estimates by 4.4%. Texas Capital Bank traded up 4.8% following the results while Nicolet Bankshares was also up 7.8%. Read our full analysis of Texas Capital Bank's results here and Nicolet Bankshares's results here. There has been positive sentiment among investors in the regional banks segment, with share prices up 10.3% on average over the last month. Preferred Bank is up 13.8% during the same time and is heading into earnings with an average analyst price target of $93.75 (compared to the current share price of $92.61). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
