Preferred Bank Q2 Net Income Jumps on Loan Recoveries, Credit Quality Improves
PFBC sits 30% above its 52-week low of $81.5.
Summary
Preferred Bank reported Q2 net income of $33.54M, or $2.78 per share, driven by $2.9M in interest recoveries from loan sales and payoffs. Net interest income rose to $69.99M, and the net interest margin held at 3.73%. Non-performing and criticized loans declined sharply, signaling improved credit quality, while loan originations added $124.8M to the portfolio. This follows a May settlement that secured $5.7M in recoveries over eleven months, reinforcing the bank's ability to resolve problem assets. With shares trading above the median analyst target of $102, the results may support the current valuation, though the consensus rating remains a hold.
At the time of this announcement, PFBC was trading at $106.04 on NASDAQ in the Finance sector, with a market capitalization of approximately $1.4B. The 52-week trading range was $81.50 to $112.26. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.