Preferred Bank Q2 net income rises on loan recoveries

Preferred Bank

22/07/2026 13:11

    

    Overview
  
US commercial bank's Q2 net income and EPS rose from prior quarter and yr-ago period
Net interest income increased, aided by loan growth and interest recoveries on nonaccrual loans
Non-performing and criticized loans declined sharply, with stable credit loss reserves

    

    Outlook
  
Preferred Bank says it is optimistic about its current operating environment

    

    Result Drivers
  
INTEREST RECOVERIES - Net interest income rose due to $2.9 mln in interest recoveries from loan sales and payoffs
LOAN QUALITY IMPROVEMENT - Non-performing and criticized loans decreased sharply, reducing reserve requirements
STRONG LOAN ORIGINATIONS - Loan origination activity was strong, supporting a $124.8 mln increase in total loans

    
Company press release: ID:nGNX9wyGWk

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 EPS
 
$2.78
 
Q2 Net Income
 
$33.54 mln
 
Q2 Net Interest Income
 
$69.99 mln
 
Q2 Net Interest Margin
 
3.73%
 

    

    Analyst Coverage
  
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "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 $102.00, about 3.8% below its July 21 closing price of $106.04
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

    

    Reuters Recommended Reads
  
July 21 - Western Alliance Bancorp Q2 net income rises on loan growth
July 22 - City Holding Q2 net interest income rises as loan yields improve
July 21 - First Financial Bancorp Q2 adjusted EPS hits record on loan growth

    
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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.)