Preferred Bank (NASDAQ:PFBC) Surpasses Earnings Estimates

• Preferred Bank (NASDAQ:PFBC) reported an EPS of $2.52, beating the estimated EPS of $2.43 and marking a 3.7% surprise over the consensus estimate.
• The bank's revenue for Q2 2025 was approximately $69 million, slightly below the estimated $71 million.
• PFBC experienced approximately 7% annualized loan growth and an improved net interest margin of 3.85%.

Preferred Bank (NASDAQ:PFBC) is a financial institution that operates primarily in the western United States. It offers a range of banking services, including commercial and industrial loans, construction financing, and deposit products. PFBC competes with other regional banks in the Zacks Banks - West industry, striving to maintain a strong financial position and deliver value to its shareholders.

On July 21, 2025, PFBC reported its earnings, revealing an earnings per share (EPS) of $2.52, surpassing the estimated EPS of $2.43. This marks a 3.7% surprise over the consensus estimate, as highlighted by Zacks. The bank's net income for the second quarter of 2025 was $32.8 million, reflecting its strong financial performance. Over the past four quarters, PFBC has exceeded consensus EPS estimates twice, showcasing its ability to outperform expectations.

PFBC generated a revenue of approximately $69 million, slightly below the estimated $71 million. The bank has outperformed consensus revenue estimates three times in the last four quarters, demonstrating its consistent performance. The bank experienced approximately 7% annualized loan growth, driven by increased usage of commercial and industrial (C&I) lines and the funding of construction commitments. This growth is a positive indicator of the bank's expanding business operations. Additionally, PFBC's net interest margin improved to 3.85% in the second quarter, up from 3.75% in the first quarter, reflecting better profitability from its lending activities.

PFBC's financial metrics further highlight its strong position. The bank has a price-to-earnings (P/E) ratio of approximately 10.06, indicating the price investors are willing to pay for each dollar of earnings. The debt-to-equity ratio is approximately 0.22, suggesting a relatively low level of debt compared to equity. These figures, along with an earnings yield of about 9.94%, underscore PFBC's financial health and potential for future growth.