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Dec 31, 2025
Preferred Bank Q4 2025 Earnings Report
Preferred Bank reported its Q4 2025 earnings, showing a decrease in net income and EPS compared to the previous year, alongside growth in total loans and deposits.
Key Takeaways
Preferred Bank experienced a challenging fourth quarter in 2025, with net income declining to $28.5 million from $35.1 million in the prior year's quarter. Diluted EPS also decreased to $1.90 from $2.34. Despite these declines, the bank saw positive trends in its balance sheet, with total loans increasing by $1.1 billion and total deposits growing by $1.0 billion year-over-year. The net interest margin compressed to 3.45% from 3.90% in Q4 2024, reflecting the current interest rate environment.
Net income for Q4 2025 was $28.5 million, a decrease from $35.1 million in Q4 2024.
Diluted earnings per share for Q4 2025 were $1.90, down from $2.34 in the same period last year.
Total loans grew by $1.1 billion year-over-year, reaching $6.5 billion.
Total deposits increased by $1.0 billion year-over-year, totaling $7.1 billion.
Net interest margin compressed to 3.45% in Q4 2025 from 3.90% in Q4 2024.
Forward Guidance
Preferred Bank anticipates continued loan and deposit growth in the upcoming year, with a focus on maintaining asset quality and managing interest rate risks. The bank expects net interest margin to stabilize, though it acknowledges potential headwinds from economic uncertainties.
Positive Outlook
- Projected continued growth in total loans, driven by strong customer relationships.
- Anticipated stability in net interest margin as interest rate environment normalizes.
- Commitment to maintaining strong asset quality and managing credit risks effectively.
- Focus on operational efficiency to improve the efficiency ratio.
- Potential for increased noninterest income through diversified service offerings.
Challenges Ahead
- Ongoing pressure on net interest margin due to competitive landscape and funding costs.
- Potential for increased provision for credit losses if economic conditions deteriorate.
- Uncertainty in the broader economic environment could impact loan demand and asset quality.
Historical Earnings Impact
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