Preferred Bank (NASDAQ:PFBC) Releases Earnings Results, Beats Estimates By $0.01 EPS

Preferred Bank (NASDAQ:PFBC) issued its earnings results on Thursday. The bank reported $2.79 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.78 by $0.01, Zacks reports. The business had revenue of $78.07 million for the quarter, compared to analyst estimates of $74.54 million. Preferred Bank had a net margin of 26.41% and a return on equity of 17.31%.

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

• Strong profitability: Q4 net income was $34.8 million ($2.79/share) and full-year net income was $434 million ($10.41/share), which management says is among the banking industry’s top tier.
• Margin pressure from rate cuts and expensive deposits: December margin fell to 3.66% after Fed cuts while deposit cost remained high at 3.17% (deposit beta ~40% on interest-bearing), pressuring net interest income near-term.
• Loan demand is strengthening—Q4 loan growth was $182 million (over 12% for the quarter) and management is budgeting for higher loan growth in 2026, with deposit growth targeted to keep pace.
• Credit stress increased as criticized assets rose by ~$97 million after the Bank classified a large nine-loan relationship (~$121–$123 million); payments have slowed and one $19.5M loan moved to non-accrual, though management says collateral values remain supportive and added provisions totaled $4.3 million this quarter.
• Capital allocation and expense outlook: management expects mid‑to‑high single‑digit expense growth, limited share repurchases this year as funds may be reserved for loan growth and deposit needs, and Q1 run‑rate guidance implies expenses will ramp through the year.

Preferred Bank Trading Down 9.2%

NASDAQ PFBC opened at $83.72 on Friday. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.44. The business has a fifty day simple moving average of $95.99 and a 200 day simple moving average of $93.39. Preferred Bank has a 12 month low of $71.90 and a 12 month high of $103.05. The firm has a market capitalization of $1.21 billion, a P/E ratio of 8.07 and a beta of 0.66.

Preferred Bank Announces Dividend

The business also recently declared an annual dividend, which was paid on Tuesday, January 20th. Investors of record on Tuesday, January 6th were issued a dividend of $3.20 per share. The ex-dividend date was Tuesday, January 6th. This represents a yield of 336.0%. Preferred Bank’s dividend payout ratio is 30.83%.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on PFBC. DA Davidson dropped their price objective on shares of Preferred Bank from $108.00 to $104.00 and set a “neutral” rating on the stock in a report on Wednesday, October 22nd. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Preferred Bank in a research note on Monday, December 29th. Zacks Research lowered Preferred Bank from a “strong-buy” rating to a “hold” rating in a report on Friday, December 26th. Finally, Piper Sandler raised their price objective on Preferred Bank from $112.00 to $119.00 and gave the company an “overweight” rating in a research note on Wednesday, October 22nd. Two investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, Preferred Bank presently has a consensus rating of “Hold” and a consensus target price of $104.67.

Preferred Bank News Summary

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

• Positive Sentiment: Q4 beat on the headline numbers: PFBC reported $2.79 EPS (vs. $2.78 consensus) and $78.1M revenue, helped by gains on property sales and solid operating metrics; the print supports near-term earnings visibility. Preferred Bank Reports Fourth Quarter Results
• Positive Sentiment: Loan growth is a bright spot highlighted on the call — core lending expanded, which supports future interest income if margins stabilize. Preferred Bank Q4 2025 Earnings Call Highlights
• Positive Sentiment: Income investors note PFBC’s dividend profile as attractive given its payout and return-on-equity track record, which can support demand from yield-focused holders. Why Preferred Bank (PFBC) is a Great Dividend Stock Right Now
• Neutral Sentiment: After recent moves, some analysts are re-checking valuation and forward earnings assumptions; PFBC still trades at a low-teens P/E on consensus forward estimates, so valuation remains a mixed factor. A Look At Preferred Bank (PFBC) Valuation
• Negative Sentiment: Investors are worried about margin pressure — net interest income declined sequentially as market rates fell, and deposit costs are trending higher, compressing NIM. PFBC Q4 deep dive: Deposit costs, credit quality, and loan growth shape outlook
• Negative Sentiment: Credit and reserve dynamics: the bank took a larger provision for credit losses sequentially, raising concern about asset-quality trends and future earnings volatility. Why Preferred Bank (PFBC) shares are falling today
• Negative Sentiment: Analyst/market commentary flagged rising risks discussed on the call (costs, credit, margin sensitivity), which likely triggered the sell-off despite the modest beat. Preferred Bank Earnings Call: Profits Strong, Risks Rising

Institutional Trading of Preferred Bank

Institutional investors and hedge funds have recently made changes to their positions in the company. EverSource Wealth Advisors LLC boosted its holdings in 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 purchasing an additional 306 shares during the last quarter. Quarry LP lifted its position in shares of Preferred Bank by 1,992.0% during the 3rd quarter. Quarry LP now owns 523 shares of the bank’s stock worth $47,000 after buying an additional 498 shares in the last quarter. Johnson Financial Group Inc. purchased a new position in shares of Preferred Bank in the 3rd quarter worth approximately $70,000. NewEdge Advisors LLC boosted its stake in shares of Preferred Bank by 350.7% in the 2nd quarter. NewEdge Advisors LLC now owns 1,316 shares of the bank’s stock worth $114,000 after buying an additional 1,024 shares during the last quarter. Finally, PharVision Advisers LLC bought a new position in shares of Preferred Bank in the third quarter valued at approximately $275,000. Hedge funds and other institutional investors own 72.77% of the company’s stock.

About Preferred Bank

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.