Preferred Bank ( (PFBC) ) has released its Q3 earnings. Here is a breakdown of the information Preferred Bank presented to its investors.
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Preferred Bank, a prominent independent commercial bank based in California, offers a wide range of financial services including deposit and loan products to both commercial and consumer clients, with a strong focus on personalized service and real estate finance. The bank has a significant presence in California, New York, and Texas, and caters to a diverse clientele, including a substantial number of ethnic Chinese customers.
In its latest earnings report for the third quarter of 2025, Preferred Bank announced record results, with a net income of $35.9 million, translating to $2.84 per diluted share. This marks an increase from both the previous quarter and the same period last year, primarily driven by higher net interest income due to a decrease in interest expenses and an increase in loans and investment securities.
Key financial highlights for the quarter include a return on average assets of 1.93% and a return on average equity of 18.64%. The bank saw a notable increase in total loans by $132.4 million and total deposits by $151.3 million on a linked quarter basis. The efficiency ratio improved to 28.7%, reflecting the bank’s effective cost management. Additionally, nonperforming loans significantly decreased, contributing to a healthier balance sheet.
The bank’s strategic initiatives included a stock repurchase program, with 70,842 shares repurchased for $6.3 million. Despite market challenges, Preferred Bank continues to exhibit strong financial performance, supported by prudent management of interest rates and operational efficiencies.
Looking ahead, Preferred Bank remains cautiously optimistic, acknowledging economic uncertainties while focusing on sustaining growth in loans and deposits. The management is committed to maintaining robust financial health and delivering value to shareholders through strategic initiatives and disciplined financial practices.