Preferred Bank Reports Third Quarter Results
Preferred Bank reported Q3 2026 net income of $32.9 million, or $2.73 per diluted share, down $3.0 million from a year ago and $592,000 from the prior quarter. The decline was driven by $2.1 million in interest income reversals after the bank placed a $56.7 million mixed-use property loan and four others totaling $13.5 million on nonaccrual; the large loan is under contract to be sold at par with closing expected late October. NIM compressed to 3.49% from 3.73%, also pressured by the subordinated debt coupon resetting from 3.375% to SOFR plus 278 bps (6.44%). Deposits grew $77.7 million and ROE remained strong at 16.18%.
Key figures
- Eps
- 2.73
- Revenue
- 0
- Nim
- 3.49%
- Roa
- 1.69%
- Roe
- 16.18%
- Net income
- 32948000
- Total assets
- 7816021000
- Total deposits
- 6549874000
- Net charge offs
- -8000
- Efficiency ratio
- 30.9%
- Nim prior quarter
- 3.73%
- Total gross loans
- 6250000000
- Allowance coverage
- 1.26%
- Deposit growth qoq
- 77700000
- Net interest income
- 66711000
- Net income yoy change
- -3000000
- Nonaccrual plus 90day
- 109400000
- Provision credit losses
- 2100000
- Tangible common equity ratio
- 10.13%
AI analysis
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