PFBC

In the first quarter of 2026, Preferred Bank reported net interest income of US$65.31 million and net income of US$31.14 million, with basic earnings per share rising to US$2.57 and diluted earnings per share to US$2.53 from continuing operations, while recording net charge-offs of US$5.46 million. Over the same period, the bank repurchased 402,299 shares for US$35.8 million, completing a total buyback of 660,192 shares for US$58.63 million since May 2025, underscoring management’s continued use of capital returns alongside higher earnings per share despite emerging credit quality pressures. Against this backdrop of higher earnings alongside increased net charge-offs, we’ll examine how these credit developments affect Preferred Bank’s investment narrative. Find 54 companies with promising cash flow potential yet trading below their fair value. To own Preferred Bank, you need to be comfortable with a regional lender that leans on relationship banking, disciplined costs and ongoing capital returns to generate steady earnings. The latest quarter supports that thesis on profitability, but the jump in net charge offs brings credit quality into sharper focus as the key short term swing factor, while competition for deposits remains a central risk. Overall, this update does not appear to alter the underlying long term narrative in a material way. The most relevant development here is the accelerated share repurchase in Q1 2026, with 402,299 shares bought back for US$35.8 million and 660,192 shares retired in total since May 2025. That sits alongside higher earnings per share and reinforces the existing catalyst of capital returns, but investors now have to weigh this EPS support against emerging credit pressures and the bank’s already high level of bad loans as part of the case for owning the stock. Yet behind the higher earnings and buybacks, investors should be aware of the rising bad loan ratio and what it could mean for... Read the full narrative on Preferred Bank (it's free!) Preferred Bank's narrative projects $336.1 million revenue and $138.7 million earnings by 2029. This requires 6.1% yearly revenue growth and about a $5.1 million earnings increase from $133.6 million today. Uncover how Preferred Bank's forecasts yield a $100.50 fair value, a 7% upside to its current price. Two fair value estimates from the Simply Wall St Community span roughly US$100 to U...

Preferred Bank reported Q1 net income of $31.3 million ($2.53/share), but results were “negatively impacted” by placing a large borrower relationship of about $77 million on non‑accrual, helping push net interest margin down to 3.57% from 3.74%. Management has reduced that relationship by roughly 50% through loan sales—including two loans sold at par totaling $48.5 million plus a $9.4 million loan—and said remaining remediation will rely on further note sales, foreclosures and bankruptcy proceedings. The bank saw moderate sequential loan and deposit growth (1.1% and 1.2%), with deposit costs easing (March cost 3.10%) but facing intense pricing competition and $1.35 billion of deposits maturing in Q2 at an average 3.89%; buybacks also continued (~400,000 shares at ~$89–90). Interested in Preferred Bank? Here are five stocks we like better. Preferred Bank (NASDAQ:PFBC) reported first-quarter net income of $31.3 million, or $2.53 per share, but management said results were “negatively impacted” by the move of a large borrower relationship to non-performing status. Chairman and CEO Li Yu said the bank placed a nine-loan relationship on non-accrual status during February and March, noting it included “two C&I loans of a small $2 million” with the remainder in commercial real estate loans. Yu said the non-accrual total was “only $77 million” at the time it was placed on non-accrual. → Credo Stock Flashes Strong Bullish Signal—Upswing Just Starting Yu added the bank has already reduced exposure through loan sales. “Shortly after the announcement, we’re able to sell one loan at par of $9.4 million,” he said. “On April the 1st, we have sold another two loans at par for $48.5 million.” Yu said that, as of the call, the bank had “effectively reduced the relationship by roughly 50%,” and it planned to continue working through the issue into the second and third quarters with the goal of achieving “substantial resolution.” Net interest margin was 3.57% for the quarter, down from 3.74% in the prior quarter. Yu attributed the decline primarily to a reversal of interest income tied to the non-accrual move, which he characterized as non-recurring, and said management is “very hopeful that our net interest margin will rebound” in coming quarters. → Allbirds Exits Shoes, Pivots to AI With NewBird Rebrand During the Q&A, CFO Edward Czajka confirmed that the move in loans held f...

Net income was significantly impacted by the placement of a 177 million dollar commercial real estate and C&I relationship into nonaccrual status. Management is aggressively resolving the nonperforming relationship, having already sold approximately 50% of the associated loans at par by early April. Net interest margin compression to 3.57% was primarily driven by a nonrecurring reversal of interest income related to the nonperforming loan relationship. Loan and deposit growth remained moderate as the bank prioritized pricing discipline over volume in a highly competitive market where competitors are pricing fixed-rate loans below 6%. Operating overhead remains stable, while management simultaneously navigates severe market competition in pricing. The bank's credit culture remains conservative, with management noting that the current nonperforming issue is an isolated 'inflection point' rather than a systemic portfolio trend. Management expects a substantial resolution of the remaining nonperforming loan relationship by the third quarter. Net interest margin is projected to rebound toward the 3.70% range as interest reversals normalize and some interest is recouped from note sales. Internal growth guidance has been tempered from high single-digits to a more cautious stance due to geopolitical risks and potential impacts of rising oil prices on loan demand. The bank is maintaining a near-neutral asset sensitivity profile to remain flexible regardless of whether the Federal Reserve's next move is a cut or a pause. Capital allocation will prioritize security and long-term shareholder value over aggressive buybacks, reflecting a cautious view of the future macro economy. The bank repurchased approximately 400 thousand shares of common stock at an average price of roughly 89.90 dollars per share during the quarter. A 3.4 million dollar interest reversal related to the nonaccrual relationship created a 19 to 20 basis point headwind for the first quarter margin. Noninterest expense included over 1 million dollars in seasonal costs related to heightened payroll taxes, bonus payouts, and stock vesting. Management noted that conflict in the Middle East appears to be trending toward a more stabilized basis, allowing the bank to focus on economic affairs in the coming months. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you i...

Image source: The Motley Fool. Wednesday, April 22, 2026 at 2 p.m. ET Chairman and Chief Executive Officer — Li Yu President and Chief Operating Officer — Wellington Chen Chief Financial Officer — Edward Czajka Deputy Chief Operating Officer — Johnny Hsu Need a quote from a Motley Fool analyst? Email [email protected] Evan New: Hello, everyone, and thank you for joining us to discuss Preferred Bank's financial results for the first quarter ended 03/31/2026. With me today from management are Chairman and CEO, Li Yu; President and Chief Operating Officer, Wellington Chen; Chief Financial Officer, Edward Czajka; and Deputy Chief Operating Officer, Johnny Hsu. Management will provide a brief summary of the results, and then we will open the call to your questions. During the course of this conference call, statements made by management may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on specific assumptions that may or may not prove correct. Forward-looking statements are also subject to known and unknown risks, uncertainties, and other factors relating to Preferred Bank's operations and business environment, all of which are difficult to predict and many of which are beyond the control of Preferred Bank. For a detailed description of these risks and uncertainties, please refer to the SEC-required documents the Bank files with the Federal Deposit Insurance Corporation, or FDIC. If any of these uncertainties materialize or any of these assumptions prove incorrect, Preferred Bank's results could differ materially from its expectations set forth in these statements. Preferred Bank assumes no obligation to update such forward-looking statements. At this time, I would like to turn the call over to Mr. Li Yu. Please go ahead. Li Yu: Thank you very much. I am very pleased to report first quarter net income of 31.3 million dollars, or 2.53 dollars per share. This quarter's net income was negatively impacted by the placement of a large relationship into non-performing status. If you recall, in February and March, we issued a press release informing all of you that we placed a nine-loan relationship on a nonaccrual basis. This relationship consists of two C&I loans of a small 2 million dollars, and the rest are all commercial real estate loans in a total amount of 177 mil...

This article first appeared on GuruFocus. Net Income: $31.3 million or $2.53 per share for the first quarter. Loan Growth: Moderate growth of 1.1% sequentially. Deposit Growth: Moderate growth of 1.2% sequentially. Net Interest Margin: 3.457%, down from 3.74% in the previous quarter. Non-Interest Expense: Operating overhead has been stable. Share Repurchase: Approximately 400,000 shares repurchased at roughly $89-$90 per share. Warning! GuruFocus has detected 10 Warning Signs with TXN. Is PFBC fairly valued? Test your thesis with our free DCF calculator. Release Date: April 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 $31.3 million or $2.53 per share for the first quarter. The bank successfully sold loans at par, reducing a non-performing loan relationship by approximately 50%. Operating overhead or non-interest expense has been stable, with expectations to maintain this stability. The bank repurchased approximately 400,000 shares of its own common stock, indicating confidence in its valuation. Preferred Bank (NASDAQ:PFBC) is hopeful for a rebound in net interest margin in the ensuing quarters as interest income reversals are nonrecurring. Net income was negatively impacted by the placement of a large relationship on non-performing status. The net interest margin decreased to 3.457% from 3.74% in the previous quarter due to interest income reversals. Market competition, especially in pricing, has been severe, affecting loan and deposit growth. Deposit costs are not decreasing as rapidly as in previous quarters, indicating potential pressure on margins. The bank faces challenges in resolving non-performing loans, with some loans still undergoing foreclosure and bankruptcy processes. Q: Can you confirm the details of the loans held for sale, specifically the $48.5 million sold on April 1? A: Yes, $48.5 million of the $76 million in loans held for sale were sold at par on April 1. We are actively marketing two other notes for sale. - Edward Czajka, CFO Q: What are your thoughts on deposit costs and the competition in the market? A: Deposit costs are decreasing but at a slower pace than in Q4. In March, deposit costs were $3.10 billion. We have $1.35 billion maturing this quarter at a $389 billion rate, likely to be renewed at similar rates. - E...

Preferred Bank (PFBC) reported $69.62 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 4.4%. EPS of $2.53 for the same period compares to $2.23 a year ago. The reported revenue represents a surprise of -1.02% over the Zacks Consensus Estimate of $70.34 million. With the consensus EPS estimate being $2.48, the EPS surprise was +2.22%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. 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: 33.8% versus the three-analyst average estimate of 32.4%. Net Interest Margin: 3.6% compared to the 3.6% average estimate based on three analysts. Net charge-offs to average loans: 0.4% versus 0.2% estimated by two analysts on average. Average Interest - Earning Assets: $7.44 billion versus the two-analyst average estimate of $7.57 billion. Total noninterest income: $4.31 million compared to the $4.15 million average estimate based on three analysts. Net interest income before provision for credit losses: $65.31 million versus $66.22 million estimated by three analysts on average. View all Key Company Metrics for Preferred Bank here>>> Shares of Preferred Bank have returned +5.3% over the past month versus the Zacks S&P 500 composite's +8.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with 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

Preferred Bank (PFBC) came out with quarterly earnings of $2.53 per share, beating the Zacks Consensus Estimate of $2.48 per share. This compares to earnings of $2.23 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.22%. A quarter ago, it was expected that this independent commercial bank would post earnings of $2.78 per share when it actually produced earnings of $2.79, delivering a surprise of +0.36%. 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 $69.62 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 1.02%. This compares to year-ago revenues of $66.66 million. The company has topped consensus revenue estimates three 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 lost about 0.4% since the beginning of the year versus the S&P 500's gain of 3.2%. While Preferred Bank has underperformed 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 mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks...

WaFd (WAFD) came out with quarterly earnings of $0.83 per share, beating the Zacks Consensus Estimate of $0.74 per share. This compares to earnings of $0.65 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.66%. A quarter ago, it was expected that this holding company for Washington Federal Savings Bank would post earnings of $0.76 per share when it actually produced earnings of $0.75, delivering a surprise of -1.32%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. WaFd, which belongs to the Zacks Banks - West industry, posted revenues of $197.38 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.53%. This compares to year-ago revenues of $179.79 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. WaFd shares have added about 1.4% since the beginning of the year versus the S&P 500's gain of 2.6%. While WaFd has underperformed 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 WaFd was unfavorable. 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 #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) st...

Preferred Bank (PFBC) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on April 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This independent commercial bank is expected to post quarterly earnings of $2.48 per share in its upcoming report, which represents a year-over-year change of +11.2%. Revenues are expected to be $70.34 million, up 5.5% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.79% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is...

LOS ANGELES, April 08, 2026 (GLOBE NEWSWIRE) -- Preferred Bank (NASDAQ: PFBC), one of the larger independent commercial banks in California, today announced plans to release its financial results for the first quarter ended March 31, 2026 before the open of market on Wednesday, April 22, 2026. That same day, management will host a conference call at 2:00 p.m. Eastern (11:00 a.m. Pacific). The call will be simultaneously broadcast over the Internet. Interested participants and investors may access the conference call by dialing 844-826-3037 (domestic) or 412-317-5182 (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 www.preferredbank.com. Preferred Bank's Chairman and CEO Li Yu, President and Chief Operating Officer Wellington Chen, Chief Financial Officer Edward J. Czajka, Chief Risk 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 855-669-9658 (domestic) or 412-317-0088 (international) through May 6, 2026; the passcode is 8528963. 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 the California cities of Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine (2 branches), Diamond Bar, Pico Rivera, Tarzana and San Francisco (2 branches) and two branches in New York (Flushing and Manhattan) and one branch in the Houston suburb of Sugar Land, Texas. Additionally, the Bank 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, ent...

LOS ANGELES, March 18, 2026 (GLOBE NEWSWIRE) -- Preferred Bank (NASDAQ: PFBC), one of the larger independent commercial banks in California, today reported that the Board of Directors has declared a quarterly cash dividend of $0.80 per share, payable on April 21, 2026 to holders of record on April 7, 2026. 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.