Preferred Bank Q1 net interest income falls on nonaccrual loan reversals

Preferred Bank

22/04/2026 13:14

Overview

US commercial bank's Q1 net income rose yr/yr but declined from prior quarter

Quarterly net interest income increased yr/yr, but fell from prior quarter due to loan reversals

Company repurchased 402,299 shares for $35.8 mln under ongoing buyback plan

Outlook

Company says competition for loans and deposits remains intense with tight pricing

Preferred Bank is continuing to work with note buyers to resolve nonaccrual loans

Result Drivers

NONACCRUAL LOANS - Net interest income fell due to reversal of interest on loans placed on nonaccrual status, including a large relationship, per CEO Li Yu

NONRECURRING GAINS - Noninterest income declined from prior quarter due to absence of $3.6 mln gain on sale of OREO recorded in Q4 2025

LOAN AND DEPOSIT GROWTH - Total loans and deposits increased modestly, but competition remains intense and pricing tight, per management

Company press release: ID:nGNX2lBVZF

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Income
$31.14 mln
Q1 Net Interest Income
$65.31 mln
Q1 Net Interest Margin
3.57%


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 8.5% above its April 21 closing price of $94.04

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)