Preferred Bank (NASDAQ: PFBC) Q2 2025 Earnings | 07/21/2025

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Preferred Bank (NASDAQ: PFBC) announced its Q2 2025 financial results on July 21, 2025, underscoring resilient earnings and robust credit quality amidst a competitive banking landscape. The bank reported net income of $32.8 million, or $2.52 per share, comfortably surpassing Wall Street’s expectations and marking a sequential improvement largely driven by strong loan growth and margin expansion. Notably, Preferred Bank’s earnings per share outpaced the consensus estimate of $2.43, resulting in a 3.7% positive surprise. Total revenue for the quarter was $70.65 million, just shy of analyst forecasts but reflecting consistent strength in the bank’s core operations. The bank’s annualized loan growth reached approximately 7%, powered by heightened activity in commercial and industrial lending and construction finance, while asset quality metrics improved—nonaccrual, criticized, and past-due loans all declined from the previous quarter. Net interest margin climbed to 3.85%, up from 3.75% in Q1, highlighting continued profitability gains amid stable deposit balances and cost management. The bank’s expense ratio for Q2 was 22.5%, with expectations for minor fluctuations heading into the second half of the year. Key initiatives included the repurchase of $56 million in stock at an average price of $80.81 per share, executed opportunistically ahead of a newly authorized $125 million buyback program. Management cited valuation discipline as a factor in the cautious pace of further buybacks given current share price levels. Certificates of deposit maturing in Q3, totaling $1.4 billion at a weighted average rate of 4.21%, are slated for renewal at a slightly lower average rate, supporting ongoing net interest margin stability. CEO Li Yu emphasized ongoing economic uncertainties related to tariffs, interest rates, and inflation, while affirming confidence in the bank’s credit reserves and its relationship-driven approach. Early July indicators point to a pickup in loan demand, though management remains prudent amid industry headwinds and competitive pressures on loan pricing. Operational expansion continues, with new branch openings in Manhattan and a Silicon Valley location planned. For the remainder of 2025, Preferred Bank projects steady earnings momentum, with EPS guidance for the next two quarters at $2.54 and $2.55, respectively. Analysts maintain a “moderate buy” outlook, citing the bank’s strong return on equity (17%) and ongoing capital return policy as positives, though they note continued market challenges and the importance of monitoring asset quality and cost of deposits. About Inside Ticker: For up-to-date earnings analysis, market insights, and in-depth updates on Preferred Bank (NASDAQ: PFBC) and other leading regional banks, follow Inside Ticker and visit InsideTicker.com for expert coverage and real-time financial news. Hashtags: #PreferredBank #PFBC #Q22025 #Earnings #FinancialResults #NetIncome #LoanGrowth #NetInterestMargin #Dividend #Banking #CreditQuality #Buybacks #CapitalReturn #USBanks #DepositRates #BalanceSheet #MarketUpdate #OperatingMargin #BusinessUpdate #InsideTicker #InvestorUpdate #GrowthStrategy #Q2Results #Guidance #CommercialLending #SiliconValley #Manhattan #CEOUpdate #CreditReserves #Expansion #EPSGrowth