NASDAQ$PFBC

Preferred Bank · Q3 2025 earnings

Q3 2025 earnings · · After market close · Investor relations

Briefing

Preferred Bank reported its financial results for the third quarter of 2025, highlighting record diluted earnings per share and growth in loans and deposits.

Preferred Bank achieved a record diluted EPS of $2.84 and net income of $35.9 million for Q3 2025, driven by increased net interest income and growth in both loans and deposits. The bank also significantly reduced nonperforming loans and improved its efficiency ratio.

  • Record diluted earnings per share of $2.84 was reported for the third quarter of 2025.
  • Net income for the quarter increased to $35.9 million, up $2.6 million from the same quarter last year.
  • Total loans grew by $132.4 million (2.3%) and total deposits increased by $151.3 million (2.5%) on a linked quarter basis.
  • Nonperforming loans decreased significantly from $52.3 million to $17.6 million, primarily due to a loan foreclosure and subsequent sale of the OREO asset.

Headline financials

Total Revenue

$75M

Previous: $68.8M+8.9%
EPS (adj)

$2.84

Previous: $2.46+15.4%
Net Interest Income

$71.3M

Previous: $68.8M+3.6%
Noninterest Income

$3.7M

Previous: $3.5M+5.7%
Total Loans

$5.87B

No prior period
Total Deposits

$6.23B

No prior period
Net Interest Margin

3.9%

Previous: 4.1%-4.4%
Nonperforming Loans

$17.6M

No prior period
Net Charge-Offs

$1.6M

Previous: -$3K+53433.3%
Efficiency Ratio

28.7%

Previous: 30.6%-6.2%
Provision for Credit Losses

$2.5M

Previous: $3.2M-21.9%
Allowance Coverage Ratio

1.3%

No prior period
Tangible Capital Ratio

10.4%

No prior period
Leverage Ratio

10.7%

No prior period
Common Equity Tier 1 Capital Ratio

11.3%

No prior period
Total Capital Ratio

14.6%

No prior period
Net Income

$35.9M

No prior period
Operating Income

$53.5M

No prior period
Total Assets

$7.47B

No prior period

Revenue & EPS history

Preferred Bank · Revenue · Quarterly

$75M

Q3 2025+8.9%vs Q3 2024
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Preferred Bank anticipates continued cautious optimism from customers despite economic uncertainties. The bank expects to report a large pre-tax gain from the sale of an OREO asset in the fourth quarter of 2025.

Tailwinds

  • A large pre-tax gain from the sale of an OREO asset will be reported in Q4 2025.
  • Customers are showing slightly more optimism, potentially leading to continued growth.
  • The bank's efforts to decrease rates on deposits are yielding positive results.
  • The efficiency ratio has improved, indicating better operational management.
  • Strong capital ratios provide a solid foundation for future growth and stability.

Headwinds

  • Economic uncertainties continue to make customers cautious.
  • Market price for stock repurchases was often above the bank's willingness to pay, limiting buybacks.
  • Net interest margin was lower compared to the same quarter last year.
  • Interest expense increased compared to the prior quarter due to deposit growth and increased borrowings.
  • Fluctuations in the effective tax rate are expected due to the timing of taxable events.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2025

Historical avgQ3 2025

+1.3%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+2.3%

Avg return

30 days after

67%

31 / 46 earnings

Positive

+10.4%

Q3 2017

Best reaction

-9.0%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.7%-1.2%-0.5%
Q4 2025-9.0%-10.3%+0.0%
Q3 2025+5.1%+7.5%+4.7%
Q2 2025+4.8%+1.4%-1.6%
Q1 2025-6.8%-7.1%-3.4%
Q4 2024+1.9%+6.2%+1.5%
Q3 2024+1.3%-1.5%+11.7%
Q2 2024+8.4%+3.4%-2.2%
Q1 2024+2.7%+2.2%+1.0%
Q4 2023-2.9%+1.2%-2.3%
Q3 2023-2.4%-3.7%+3.0%
Q2 2023+4.4%+10.3%+6.3%
Q1 2023+2.2%-0.0%-6.6%
Q4 2022-5.0%-3.3%+0.4%
Q3 2022+3.7%+5.9%+6.2%
Q2 2022+2.0%+0.2%+4.4%
Q1 2022+4.6%+0.7%-7.2%
Q4 2021-3.9%-3.3%-1.0%
Q3 2021+1.3%+4.6%+2.8%
Q2 2021+2.9%+2.2%+2.6%
Q1 2021-4.0%-1.2%-2.4%
Q4 2020+0.9%-5.4%+15.6%
Q3 2020+1.6%+4.4%+13.1%
Q2 2020-0.9%+0.9%-5.7%
Q1 2020+6.3%+11.6%+9.3%
Q4 2019+6.8%+2.2%+0.5%
Q3 2019-1.5%+0.0%+3.6%
Q2 2019+3.2%+5.1%+3.0%
Q1 2019-2.6%-3.2%-0.7%
Q4 2018+0.1%+5.3%+12.6%
Q3 2018+0.6%-9.3%-13.1%
Q2 2018+3.0%+4.0%-2.2%
Q1 2018+1.5%+2.5%-3.6%
Q4 2017-2.6%-4.2%-3.4%
Q3 2017+10.4%+10.5%+3.9%
Q2 2017+3.3%+0.9%-5.1%
Q1 2017+3.9%+10.7%+2.7%
Q4 2016+7.2%+10.4%+13.2%
Q3 2016+3.2%+6.0%+24.5%
Q2 2016-0.3%+1.2%+7.1%
Q1 2016+1.5%
Q4 2015+0.8%
Q3 2015+2.1%
Q2 2015-0.1%
Q1 2015-3.3%
Q4 2014+3.1%

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