Preferred Bank's Q3 profit rises driven by increased net interest income

Preferred Bank

20/10/2025 21:25

Overview

Preferred Bank Q3 net income rises to $35.9 mln, driven by increased net interest income

Company's Q3 EPS reaches $2.84, marking a quarterly record

Preferred Bank repurchased 70,842 shares for $6.3 mln in Q3

Outlook

Company expects large pre-tax gain from OREO asset sale in Q4 results

Result Drivers

NET INTEREST INCOME - Increase driven by $5 mln decrease in interest expense and growth in loans and investment securities

ASSET QUALITY IMPROVEMENT - Significant reduction in nonperforming loans due to foreclosure and sale of OREO asset

LOANS AND DEPOSITS GROWTH - Total loans increased by $132.4 mln and deposits by $151.3 mln, linked quarter

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
$2.84
Q3 Net Income
$35.93 mln
Q3 Net Interest Income
$71.31 mln
Q3 Net Interest Margin
3.92%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy"

Wall Street's median 12-month price target for Preferred Bank is $106.50, about 19.9% above its October 17 closing price of $85.31

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNX7QpFX5

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)