PFBC

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Preferred Bank (PFBC) stock is in focus after the company reported second quarter and first half 2026 results, highlighting year over year gains in net interest income, net income, and earnings per share. See our latest analysis for Preferred Bank. The latest earnings release has put Preferred Bank back on investors’ radar, with a 1-day share price return of 1.56% lifting the stock to US$102.96. The 7-day share price return of 4.13% and 30-day share price return of 1.77% suggest some near term momentum has cooled compared with its 8.30% 90-day share price return and longer run total shareholder returns of 13.29% over 1 year, 73.73% over 3 years and 105.58% over 5 years. If this kind of performance has you thinking about where else you might find long term compounders, now could be a good time to broaden your search and check out 18 top founder-led companies The latest Preferred Bank results and share move put the spotlight squarely on valuation and whether the recent gains still leave enough upside to compensate for the risks. Preferred Bank's most followed valuation narrative points to a fair value of $111.50 versus the latest close at $102.96, framing the stock as modestly undervalued and putting fresh attention on the assumptions behind that gap. Read the complete narrative. Curious what kind of revenue path, margin profile, and future earnings multiple are baked into that $111.50 figure? The underlying model uses measured growth, slightly thinner profitability, and a richer valuation multiple that still sits below the wider US banks sector. These are combined with a single discount rate that does most of the analytical work. Result: Fair Value of $111.50 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the Preferred Bank narrative still depends on concentrated exposure to California commercial lending and on keeping deposit costs in check, which could pressure earnings if conditions change. Find out about the key risks to this Preferred Bank narrative. If the mixed sentiment around Preferred Bank has you on the fence, use the full set of risks and rewards as your guide and move quickly enough that fresh information does not go stale. Start with a closer look at...

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Preferred Bank stock has more than doubled over the past five years, yet on Simply Wall St’s checks it still screens as undervalued. This raises the question of whether the recent share price is fully reflecting the company’s fundamentals. A 105.6% return over five years suggests Preferred Bank has already rewarded long term shareholders, so any further upside depends on how much is already priced in. Recent earnings strength and improved asset quality can support confidence in future cash flows, but tighter competition for loans and deposits may pressure margins and limit how much investors are willing to pay. Preferred Bank currently passes 5 of 6 valuation checks on Simply Wall St, indicating that on broad measures the stock still leans cheap rather than expensive, as shown by its value score of 5. The stock’s next move may depend on whether that high value score and solid track record are enough to justify paying around US$102.96 today. Find out why Preferred Bank's 13.3% return over the last year is lagging behind its peers. The P/E ratio is a straightforward way to see what investors are paying today for each dollar of Preferred Bank’s earnings. At around 9.0x, Preferred Bank’s P/E sits below both the US banks industry average of about 11.9x and a peer group average of roughly 14.5x. This indicates the stock is priced at a discount to many comparable banks based on current earnings. Simply Wall St’s tailored fair P/E of about 10.4x, which factors in Preferred Bank’s profitability profile, size and risk, is also above the current multiple. This suggests the stock trades under that model’s implied range. Despite the recent Q2 2026 earnings beat and improved asset quality, the market price still appears to assign a relatively cautious earnings multiple. On this earnings multiple, Preferred Bank stock appears undervalued compared with both its tailored fair P/E and broader banking peers. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Preferred Bank pick up where the valuation puzzle stops by spelling out which future outcomes for Preferred Bank's earnings, margins and growth would need to play out for the stock to be worth materially more or less than toda...

Preferred Bank has released its results for the second quarter and first half of 2026, reporting net interest income of US$69.99 million and net income of US$33.54 million for the quarter, with both metrics higher than the same period last year. The bank also posted higher basic and diluted earnings per share from continuing operations for both the quarter and six‑month period, highlighting consistent earnings growth on a per‑share basis. We’ll now examine how this rise in quarterly net interest income might reshape Preferred Bank’s investment narrative and outlook. Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. To own Preferred Bank, you need to be comfortable with a focused, relationship‑driven lender whose earnings are closely tied to net interest income and disciplined deposit pricing. The latest quarterly results, with higher net interest income and per‑share earnings, support the near term catalyst of consistent earnings per share growth, but do not remove the key risk that deposit costs or local economic pressure in core markets could still squeeze margins. Among recent announcements, the ongoing share repurchase activity, with 402,299 shares bought back in the first quarter of 2026, stands out alongside the Q2 earnings release. Together, higher net interest income and a smaller share count reinforce the role of buybacks as a practical lever for sustaining earnings per share, even if loan growth or deposit competition become more challenging catalysts to rely on. Yet behind the rising earnings per share, investors should still be aware of how concentrated California lending and deposit competition could... Read the full narrative on Preferred Bank (it's free!) Preferred Bank's narrative projects $321.9 million revenue and $127.7 million earnings by 2029. Uncover how Preferred Bank's forecasts yield a $111.50 fair value, a 8% upside to its current price. Two Simply Wall St Community fair value estimates for Preferred Bank span from US$111.50 to US$251.06, showing how far apart individual views can be. As you weigh those opinions against the bank’s reliance on controlling deposit costs to protect net interest income, it is worth exploring several interpretations of what that could mean for future performance. Explore 2 othe...

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management focused heavily on resolving troubled assets, successfully reducing non-performing loans by $70 million (41.5%) and criticized loans by $90 million (34%) during the quarter. Loan production remained healthy with $125 million in growth, though actual origination efforts were stronger than the net figure due to the sale of $70 million in notes. Net interest margin of 3.73% was bolstered by interest recoveries, though management notes the core margin is closer to 3.60% when stripping out these non-recurring items. The bank is maintaining a disciplined approach to loan pricing, choosing to forgo some volume to ensure quality and yield requirements are met in a highly competitive market. Deposit growth of 0.8% reflects industry-wide 'stiff competition' and a shift in consumer behavior, with management noting that excess cash is increasingly flowing into the stock market rather than bank savings. Efficiency remains a core strength at 32%, even as the bank navigates an inflationary environment where the cost of services and professional fees is rising. Management expects to resolve three additional non-performing loans totaling $60 million in the second half of 2026, though exact timing depends on bankruptcy court proceedings. Net interest margin is projected to compress to the mid-3.50s range for Q3 as interest recoveries normalize and deposit costs face upward pressure. The bank anticipates approximately $1.5 billion in CDs maturing in Q3 at an average rate of 3.80%, which are expected to renew at slightly higher rates. Loan growth expectations for the second half of the year are cautious due to customer hesitation following shifts in interest rate expectations and increased competition from non-bank lenders. Management intends to maintain a loan-to-deposit ratio around the current 95% level, prioritizing liquidity while remaining open to opportunistic growth. Provision expense was limited to $1.2 million this quarter, primarily because the significant reduction in classified assets lowered overall reserve requirements. Non-interest expenses were impacted by elevated legal fees associated with the resolution of a large troubled loan relationship. Management highlighted the 'AI stock' trend as a novel c...

This article first appeared on GuruFocus. Net Income: $33.5 million or $2.78 per share for Q2 2026. Non-Performing Loans: Reduced by $70 million or 41.5% during the quarter. Criticized Loans: Reduced by $90 million. Provision Expense: $1.2 million for the quarter. Loan Growth: Increased by $125 million, excluding a $70 million loan sale. Deposit Growth: Increased by $52 million or 0.8% quarter-over-quarter. Net Interest Margin: 3.73%. Efficiency Ratio: Steady at 32%. Warning! GuruFocus has detected 5 Warning Sign with PFBC. Is PFBC fairly valued? Test your thesis with our free DCF calculator. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Preferred Bank (NASDAQ:PFBC) reported a net income of $33.5 million or $2.78 per share for the second quarter of 2026, exceeding both the previous quarter and the same quarter of the previous year. Non-performing loans were reduced by $70 million or 41.5%, and criticized loans were reduced by $90 million, leading to a decrease in reserve requirements and provision expenses. Loan origination efforts were strong, with an increase of $125 million in loans, despite selling $70 million in loans. The net interest margin was favorably affected, standing at 3.73%, and the efficiency ratio remained steady at 32%. The bank experienced growth in demand deposit accounts (DDA), which helped keep deposit costs down. Deposit growth was modest, increasing by only $52 million or 0.8% for the quarter, amidst stiff competition in the banking industry. The cost of deposits increased, with total deposits costing 3.06% and interest-bearing deposits at 3.44% as of June. Non-interest expenses were elevated due to increased legal fees related to large relationships being worked through. Loan competition remains intense, with pressure on loan yields and pricing due to competitors offering lower rates. The bank faces challenges in driving core deposit growth due to competition from the stock market, particularly AI stocks, attracting customer investments. Q: Can you comment on the loan yields and whether you can maintain them if the Fed stays on hold? A: Wellington Chen, President and COO: The market is very competitive, and we try to maximize yields on each transaction. Despite competition, we have been able to achieve better yields than our peers by being disciplined...

Preferred Bank (PFBC) came out with quarterly earnings of $2.78 per share, beating the Zacks Consensus Estimate of $2.65 per share. This compares to earnings of $2.52 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.91%. A quarter ago, it was expected that this independent commercial bank would post earnings of $2.48 per share when it actually produced earnings of $2.53, delivering a surprise of +2.02%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Preferred Bank, which belongs to the Zacks Banks - West industry, posted revenues of $73.47 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.35%. This compares to year-ago revenues of $70.65 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Preferred Bank shares have added about 12.3% since the beginning of the year versus the S&P 500's gain of 9.7%. While Preferred Bank has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Preferred Bank was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (...

LOS ANGELES (AP) — LOS ANGELES (AP) — Preferred Bank (PFBC) on Wednesday reported second-quarter earnings of $33.5 million. The bank, based in Los Angeles, said it had earnings of $2.78 per share. The results exceeded Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $2.65 per share. The independent commercial bank posted revenue of $125.9 million in the period. Its revenue net of interest expense was $73.5 million, missing Street forecasts. Three analysts surveyed by Zacks expected $73.7 million. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on PFBC at https://www.zacks.com/ap/PFBC

Interested in Preferred Bank? Here are five stocks we like better. Preferred Bank beat expectations in Q2 2026, reporting net income of $33.5 million, or $2.78 per share. Management said results were better than both the prior quarter and a year earlier, helped by lower provision expense as troubled assets were reduced. Credit quality improved sharply, with nonperforming loans down $70 million and criticized loans down $90 million. The bank said it still has three nonperforming loans totaling $60 million slated for possible resolution in the second half of 2026, though timing is uncertain due to bankruptcy proceedings. Loan and deposit growth remained solid, but competition is intense. Loans rose $125 million quarter over quarter and deposits increased $52 million, while management warned that pricing pressure in both lending and deposits is likely to compress margins into the mid-3.50% range and potentially into next year. Preferred Bank (NASDAQ:PFBC) reported second-quarter 2026 net income of $33.5 million, or $2.78 per share, with Chairman and CEO Li Yu saying the results compared favorably with the prior quarter and year-earlier period and exceeded the bank’s internal budget. Management used the company’s earnings call to highlight progress on credit resolution, continued loan production and a competitive environment for deposits and loan pricing. Yu said the bank was “quite focused on the resolution of troubled assets” during the quarter, which helped lower its provision expense. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks Yu said nonperforming loans declined by $70 million, or 41.5%, during the quarter. Criticized loans fell by $90 million, or 34%. With that reduction in classified assets, the bank’s reserve requirement on those items decreased, contributing to a provision expense of $1.2 million for the quarter. Looking ahead, Yu said Preferred Bank still has three nonperforming loans totaling $60 million that are scheduled to be resolved in the second half of 2026. However, he cautioned that each loan is tied to its own bankruptcy proceeding, making the timing uncertain. → 3 Photonics Companies Making Quantum Tech Possible Chief Risk Officer Nick Pi said the allowance for loan losses stood at 1.22% of total loans at the end of the quarter. Based on current credit quality trends, including second-quarter resolutions, Pi...

For the quarter ended June 2026, Preferred Bank (PFBC) reported revenue of $73.47 million, up 4% over the same period last year. EPS came in at $2.78, compared to $2.52 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $73.73 million, representing a surprise of -0.35%. The company delivered an EPS surprise of +4.91%, with the consensus EPS estimate being $2.65. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Preferred Bank performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Efficiency Ratio: 32.3% versus 31.4% estimated by three analysts on average. Net Interest Margin: 3.7% versus the three-analyst average estimate of 3.7%. Net charge-offs to average loans: 0% compared to the 0.2% average estimate based on two analysts. Average Interest - Earning Assets: $7.53 billion compared to the $7.56 billion average estimate based on two analysts. Net interest income before provision for credit losses: $69.99 million compared to the $69.71 million average estimate based on three analysts. Total noninterest income: $3.48 million versus $4.04 million estimated by three analysts on average. View all Key Company Metrics for Preferred Bank here>>> Shares of Preferred Bank have returned +4.2% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Preferred Bank (PFBC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

LOS ANGELES, July 22, 2026 (GLOBE NEWSWIRE) -- Preferred Bank (NASDAQ: PFBC), one of the larger independent California banks, today reported results for the quarter ended June 30, 2026. Preferred Bank (“the Bank”) reported net income of $33.5 million or $2.78 per diluted share for the second quarter of 2026. This represents an increase in net income of $2.4 million from the prior quarter and an increase of $693,000 over the same quarter last year. The increase compared to the prior quarter was due to an increase in net interest income of $4.7 million partially offset by an $827,000 decrease in noninterest income and a small increase in noninterest expense of $176,000. The difference compared to the same quarter last year was again due to net interest income which increased by $3.1 million partially offset by a small decrease in noninterest income of $279,000 and an increase in noninterest expense of $1.3 million. Highlights for the Quarter: Return on average assets was 1.75% Return on average equity was 17.05% Total loans increased by $124.8 million or 2.0%, linked quarter Total deposits increased by $52.1 million, or 0.8%, linked quarter The efficiency ratio for the quarter was 32.3% The Bank’s net interest margin expanded to 3.73% Li Yu, Chairman and CEO, commented, “We are pleased to report net income for the quarter ending June 30, 2026, of $33.5 million or $2.78 per share, which increased from the previous quarter of $2.4 million and an increase of $693,000 over the same quarter last year. “At June 30, 2026, non-performing loans decreased by $70.2 million or 41.5% from March 31, 2026. Similarly, criticized loans also decreased 33.9% from the previous quarter. We were able to sell several loans at book value plus accrued interest, one nonaccrual loan paid off and one was returned to accrual status resulting in aggregate interest recoveries of $2.9 million on these loans. One loan sold below book by $950,000 and was recorded as a loss on sale. “Because of the sizable reduction in criticized loans, corresponding reserve requirements on these loans were also reduced. The provision for credit losses for the quarter was $1.2 million. However, our allowance for credit loss to total loans was stable at 1.22%. “Our loan origination activities were very positive. This quarter, our total loans increased $124.8 million or 2.0% on a linked quarter basis. Considering...

Commercial banking company Preferred Bank (NASDAQ:PFBC) will be reporting earnings tomorrow morning. Here’s what to look for. Preferred Bank met analysts’ revenue expectations last quarter, reporting revenues of $69.62 million, up 4.5% year on year. It was a slower quarter for the company, with a slight miss of analysts’ net interest income and tangible book value per share estimates. Is Preferred Bank a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Preferred Bank’s revenue to grow 4.1% year on year, improving from the 1.6% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Preferred Bank has missed Wall Street’s revenue estimates multiple 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. M&T Bank delivered year-on-year revenue growth of 4.7%, beating analysts’ expectations by 1.8%, and Commerce Bancshares reported revenues up 11.9%, topping estimates by 1.8%. M&T Bank traded up 5% following the results while Commerce Bancshares was also up 1.7%. Read our full analysis of M&T Bank’s results here and Commerce Bancshares’s results here. There has been positive sentiment among investors in the regional banks segment, with share prices up 5.1% on average over the last month. Preferred Bank is up 7.3% during the same time and is heading into earnings with an average analyst price target of $105 (compared to the current share price of $107.03). ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable. These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.