Preferred Bank Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 net income rose to $33.5M ($2.78/share), with strong loan origination and significant asset quality improvement. NIM was 3.73% (adjusted 3.60%), but margin compression is expected due to deposit competition and repricing. Loan growth and deposit trends face headwinds from market uncertainty.
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Q1 net income was $31.3M ($2.53/share), with NIM down to 3.57% due to a non-recurring interest reversal. Loan and deposit growth were modest amid intense competition and economic uncertainty, while significant progress was made resolving non-performing loans.
Fiscal Year 2025
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Q4 2025 net income reached $34.8M, with strong loan and deposit growth despite margin pressure from rate cuts. Criticized assets rose due to a large classified relationship, but reserves were increased and the outlook for 2026 is positive.
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Record Q3 2025 results with EPS of $2.84 and net income of $35.9M, driven by improved credit quality, loan and deposit growth, and a lower efficiency ratio. Management expects continued growth and margin benefits from repricing CDs, with risks monitored amid macro uncertainties.
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Second quarter net income improved to $32.8 million with a 3.85% net interest margin and 7% annualized loan growth. Asset quality strengthened, and a $56 million stock buyback was completed, while economic uncertainty and competitive pressures persist.
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Q1 net income was $30M, impacted by non-performing loan reversals and a $1.3M OREO charge-off. Loan growth was flat, deposits rose 2.6%, and net interest margin adjusted for reversals was 3.94%. Tariff-related uncertainty is weighing on loan demand and credit outlook.
Fiscal Year 2024
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Net income for 2024 was $131 million, with strong returns on assets and equity. Loan and deposit growth were moderate, credit quality improved, and capital ratios strengthened. Management expects stable margins and continued cautious growth in 2025.
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Net income for Q3 was $33.6 million, with improved net interest margin and over 10% annualized loan growth. Deposit costs declined, criticized loans rose temporarily due to one relationship, and $1.2B in CDs are set to reprice lower in Q4.
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Q2 2024 net income reached $33.6M with 8% loan and 5% deposit growth. Charge-offs totaled $9M, mainly from previously reserved loans, while non-performing loans rose by $22M but are well-collateralized. Loan growth may slow in Q3 but could rebound if rate cuts occur.