Preferred Bank Reports First Quarter Results

LOS ANGELES, April 25, 2025 (GLOBE NEWSWIRE) -- Preferred Bank (NASDAQ: PFBC), one of the larger independent California banks, today reported results for the quarter ended March 31, 2025. Preferred Bank (“the Bank”) reported net income of $30.0 million or $2.23 per diluted share for the first quarter of 2025. This represents a small decrease in net income of $197,000 from the prior quarter and a decrease of $3.4 million from the same quarter last year. The decrease compared to both periods was mainly due to a decrease in net interest income. In the first quarter of 2025, the incremental impact to interest income from loans placed on nonaccrual status was approximately $2.8 million. In addition, a property securing one of our loans was damaged in the Palisades fire in January and as a result, the Bank has reversed out the $208,000 interest receivable on this loan although we expect to recoup this amount after the property is sold. In addition to a lowering of overall interest rates, these were the main factors in the decrease in net interest income. Net interest income was $62.7 million, a decrease of $6.5 million from the previous quarter and a decrease of $5.8 million compared to the same quarter last year. Noninterest income was $4.0 million, an increase of $361,000 over the prior quarter and an increase of $933,000 over the same quarter last year. Noninterest expense was $23.4 million, a decrease of $4.9 million from the previous quarter and an increase of $3.3 million over the same quarter last year. Highlights for the Quarter: Return on average assets was 1.76%Return on beginning equity of 15.96%Total deposits increased by $155.9 million or 2.6%, linked quarterEfficiency ratio was 35.1% Li Yu, Chairman and CEO, commented, “Preferred Bank’s net income for the first quarter, 2025 was $30.0 million or $2.23 per fully diluted share. This quarter, there was an outsized impact to interest income of approximately $2.8 million on nonaccrual loans. We have also written down the value of our one OREO property by $1.3 million. Non-accrual loans totaled $78.9 million as of March 31, 2025 and are mostly comprised of two loans totaling $65.6 million. These two loans are well-secured, and we do not anticipate any losses associated with these two credits. Overall criticized loans have decreased to $129.2 million from $158.2 million at year-end. There were very few new migrations into the criticized loan category. The large interest reversal of $2.8 million significantly affected the reported net interest margin, which was 3.75% for the quarter. Without that, the margin would have been much closer to the 4.06% reported in the fourth quarter of 2024. Deposit growth for the quarter was $155.9 million or 2.6% on a linked quarter basis. However, total loans reduced slightly from December 31, 2024. We do not feel there will be material changes in the loan demand in the near future under the shadow of the import tariff uncertainty. The import tariff impositions and threats are truly unprecedented. At this time, we are still completely uncertain as to the size of the tariffs and which countries will ultimately be tariffed. In short, every American’s economic well-being will likely be impacted. Even if an agreement can be reached within the “90 days”, there seems to be no certainty that the issue will be completely resolved and this uncertainty may persist for a year or possibly more. We at Preferred Bank will stay alert and constantly monitoring our activities. As a starting point, we have began a “deep-dive” within our relatively small “trade finance” portfolio and will continue to widen the scope of our credit monitoring activities related to trade.” Results of Operations Net Interest Income and Net Interest Margin. Net interest income before provision for credit losses was $62.7 million for the first quarter of 2025. This represents a $6.5 million decrease from the $69.2 million recorded in the prior quarter and a $5.8 million decrease from the same quarter last year. The decrease compared to both comparable quarters was primarily due to the reversal of interest income of $2.8 million associated with the nonaccrual loans. In addition, there was a property in the Palisades fire that secured a construction loan financed by the Bank. As part of that restructuring, the Bank elected to reverse $208,000 out of interest income that had accrued on that loan. Interest expense decreased compared to both comparable periods despite growth in deposits during the quarter. The Bank’s net interest margin came in at 3.75% for the quarter, this is down from the 4.06% recorded last quarter and from the 4.19% margin achieved in the first quarter of the prior year. The loan interest reversals played a major role in the decrease of the net interest margin in the first quarter. Management believes that efforts to reduce the Bank’s deposit costs have been largely effective as evidenced by the decreases in interest expense. Noninterest Income. For the first quarter of 2025, noninterest income was $4.0 million compared with $3.1 million for the same quarter last year and compared to $3.6 million for the fourth quarter of 2024. The increase over the prior quarter was primarily due to letter of credit (LC) fee income which was up by $268,000 and gains on sales of SBA loans which increased by $163,000. In comparing to the same quarter last year, fee income was down but LC fee income increased by $741,000 and gains on sales of SBA loans increased by $172,000. Noninterest Expense. Total noninterest expense was $23.4 million for the first quarter of 2025 compared to $28.2 million for the fourth quarter of 2024 and compared to the $20.0 million recorded in the same period last year. The primary reason for the decrease over the prior quarter was the $8.1 million occupancy expense adjustment recorded in the fourth quarter of 2024. This was related to accounting pronouncement ASC 842, accounting for leases. Partially offsetting that was an increase in personnel expense of $1.6 million and an increase in OREO expense of $1.4 million. In the first quarter of 2025, the Bank recorded a valuation charge of $1.3 million related to the OREO property in Santa Barbara. In comparing to the same quarter last year; personnel expense was up by $939,000, occupancy expense was up by $583,000 and OREO expense was up by $1.4 million due to the aforementioned OREO valuation charge recorded in the first quarter of 2025. Salary expense increased over the same quarter last year due mainly to an increase in personnel and merit increases. The increase in personnel expense over the prior quarter was primarily due to employer paid taxes as during the first quarter, incentive compensation is paid out to employees. Income Taxes. The Bank recorded a provision for income taxes of $12.6 million for the first quarter of 2025. This represents an effective tax rate (“ETR”) of 29.5% which is up from the 29.0% ETR for last quarter and up from the 29.0% ETR recorded in the same period last year. The Bank’s ETR will fluctuate slightly from quarter to quarter within a fairly small range due to the timing of taxable events throughout the year. Balance Sheet Summary Total gross loans at March 31, 2025 were $5.63 billion, a decrease of $6.2 million from the total of $5.64 billion as of December 31, 2024. Total deposits were $6.07 billion, an increase of $155.9 million from the $5.92 billion as of December 31, 2024. Total assets were $7.1 billion, an increase of $176.7 million over the total of $6.92 billion as of December 31, 2024. Asset Quality Non-accrual loans and loans 90 days past due and still accruing totaled $78.9 million as of March 31, 2025. The bulk of the nonaccrual loans comprised of two loans totaling $65.6 million. One of the loans is a multi-family loan which is well-secured and the other loan is now vacant, entitled land in a prime area of Orange County. Again, this loan is also well-secured. The loans were part of the same relationship and one is now working its way through the bankruptcy court while the other loan is in the process of being sold, at par. Management is confident that there will be no loss associated with these two loans. Total net charge-offs (recoveries) for the quarter were ($97,000) compared to net charge-offs of $6.6 million in the prior quarter. In addition to that, the Bank wrote down the value of its OREO property in Santa Barbara by $1.34 million, reflecting the proposed net proceeds of the most recent sales contract that the Bank was involved in, which sale did not materialize. Total criticized loans decreased to $129.2 million from $158.1 million reported in the prior quarter. Allowance for Credit Losses The provision for credit losses for the first quarter of 2025 was $700,000 compared to $2.0 million last quarter and compared to $4.4 million in the same quarter last year. The Bank’s allowance coverage ratio increased to 1.28% of loans as compared to 1.27% in the prior quarter. Capitalization As of March 31, 2025, the Bank’s tangible capital ratio was 10.96%, the leverage ratio was 11.52%, the common equity tier 1 capital ratio was 11.86% and the total capital ratio stood at 15.15%. As of December 31, 2024, the Bank’s tangible capital ratio was 11.02%, the Bank’s leverage ratio was 11.33%, the common equity tier 1 ratio was 11.80% and the total capital ratio was 15.11%. Conference Call and Webcast A conference call with simultaneous webcast to discuss Preferred Bank’s first quarter 2025 financial results will be held this afternoon April 25, 2025 at 2:00 p.m. Eastern / 11:00 a.m. Pacific. Interested participants and investors may access the conference call by dialing 844-826-3037 (domestic) or 412-317-5182 (international) and referencing “Preferred Bank.” There will also be a live webcast of the call available at the Investor Relations section of Preferred Bank's website at www.preferredbank.com. Preferred Bank's Chairman and CEO Li Yu, President and Chief Operating Officer Wellington Chen, Chief Financial Officer Edward J. Czajka, Chief Credit Officer Nick Pi and Deputy Chief Operating Officer Johnny Hsu will discuss Preferred Bank's financial results, business highlights and outlook. After the live webcast, a replay will be available at the Investor Relations section of Preferred Bank's website. A replay of the call will also be available at 877-344-7529 (domestic) or 412-317-0088 (international) through May 2, 2025; the passcode is 8939265. About Preferred Bank Preferred Bank is one of the larger independent commercial banks headquartered in California. The Bank is chartered by the State of California, and its deposits are insured by the Federal Deposit Insurance Corporation, or FDIC, to the maximum extent permitted by law. The Bank conducts its banking business from its main office in Los Angeles, California, and through twelve full-service branch banking offices in California (Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine (2), Diamond Bar, Pico Rivera, Tarzana and San Francisco (2)), two branches in New York (Manhattan and Flushing, Queens) and a branch office in the Houston, Texas suburb of Sugar Land. In addition, the Bank also operates a loan production office in Sunnyvale, California. Preferred Bank offers a broad range of deposit and loan products and services to both commercial and consumer customers. The Bank provides personalized deposit services as well as real estate finance, commercial loans and trade finance to small and mid-sized businesses, entrepreneurs, real estate developers, professionals and high net worth individuals. Although originally founded as a Chinese-American Bank, Preferred Bank now derives most of its customers from the diversified mainstream market but does continue to benefit from the significant migration to California of ethnic Chinese from China and other areas of East Asia. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the Bank’s future financial and operating results, the Bank's plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the Bank’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: changes in economic conditions; changes in the California real estate market; the loss of senior management and other employees; natural disasters or recurring energy shortage; changes in interest rates; competition from other financial services companies; ineffective underwriting practices; inadequate allowance for loan and lease losses to cover actual losses; risks inherent in construction lending; adverse economic conditions in Asia; downturn in international trade; inability to attract deposits; inability to raise additional capital when needed or on favorable terms; inability to manage growth; inadequate communications, information, operating and financial control systems, technology from fourth party service providers; the U.S. government’s monetary policies; government regulation; environmental liability with respect to properties to which the bank takes title; and the threat of terrorism. Additional factors that could cause the Bank's results to differ materially from those described in the forward-looking statements can be found in the Bank’s 2024 Annual Report on Form 10-K filed with the Federal Deposit Insurance Corporation which can be found on Preferred Bank’s website. The forward-looking statements in this press release speak only as of the date of the press release, and the Bank assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contained in the forward-looking statements. For additional information about Preferred Bank, please visit the Bank’s website at www.preferredbank.com. AT THE COMPANY:AT FINANCIAL PROFILES:Edward J. Czajka Jeffrey HaasExecutive Vice PresidentGeneral InformationChief Financial Officer(310) 622-8240(213) 891-1188PFBC@finprofiles.com Financial Tables to Follow PREFERRED BANKCondensed Consolidated Statements of Operations(unaudited)(in thousands, except for net income per share and shares) For the Quarter Ended March 31, December 31, March 31, 2025 2024 2024 Interest income: Loans, including fees$101,491 $111,596 $109,980 Investment securities 12,810 14,013 16,257 Fed funds sold 228 249 283 Total interest income 114,529 125,858 126,520 Interest expense: Interest-bearing demand 16,590 18,245 22,290 Savings 69 85 75 Time certificates 33,887 37,030 34,330 Subordinated debt 1,325 1,325 1,325 Total interest expense 51,871 56,685 58,020 Net interest income 62,658 69,173 68,500 Provision for credit losses 700 2,000 4,400 Net interest income after provision for credit losses 61,958 67,173 64,100 Noninterest income: Fees & service charges on deposit accounts 716 761 845 Letters of credit fee income 2,244 1,977 1,503 BOLI income 103 102 105 Net gain on sale of loans 275 112 103 Other income 660 685 509 Total noninterest income 3,998 3,637 3,065 Noninterest expense: Salary and employee benefits 14,839 13,279 13,900 Net occupancy expense 2,294 10,110 1,711 Business development and promotion expense 462 340 266 Professional services 1,651 1,606 1,457 Office supplies and equipment expense 386 396 473 OREO valuation allowance and related expense 1,531 155 135 Other 2,206 2,360 2,086 Total noninterest expense 23,369 28,246 20,028 Income before provision for income taxes 42,587 42,564 47,137 Income tax expense 12,563 12,343 13,671 Net income$30,024 $30,221 $33,466 Income per share available to common shareholders Basic$2.27 $2.29 $2.48 Diluted$2.23 $2.25 $2.44 Weighted-average common shares outstanding Basic 13,226,582 13,190,696 13,508,878 Diluted 13,453,176 13,442,294 13,736,986 Cash dividends per common share$0.75 $0.75 $0.70 PREFERRED BANKCondensed Consolidated Statements of Financial Condition(unaudited)(in thousands) March 31, December 31, 2025 2024 (Unaudited) (Audited)Assets Cash and due from banks$905,183 $765,515 Fed funds sold 20,000 20,000 Cash and cash equivalents 925,183 785,515 Securities held-to-maturity, at amortized cost 19,745 20,021 Securities available-for-sale, at fair value 390,096 348,706 Loans held for sale, at lower of cost or fair value - 2,214 Loans 5,634,413 5,640,615 Less allowance for credit losses (72,274) (71,477)Less amortized deferred loan fees, net (9,652) (9,234)Loans, net 5,552,487 5,559,904 Other real estate owned and repossessed assets 13,650 14,991 Bank furniture and fixtures, net 8,276 8,462 Bank-owned life insurance 10,502 10,433 Accrued interest receivable 31,775 33,561 Investment in affordable housing partnerships 63,612 58,346 Federal Home Loan Bank stock, at cost 15,000 15,000 Deferred tax assets 46,280 47,402 Income tax receivable - 2,195 Operating lease right-of-use assets 20,281 13,182 Other assets 3,205 3,497 Total assets$7,100,092 $6,923,429 Liabilities and Shareholders' Equity Deposits: Noninterest bearing demand deposits$730,270 $704,859 Interest bearing deposits: 2,099,987 2,026,965 Savings 32,631 30,150 Time certificates of $250,000 or more 1,531,715 1,477,931 Other time certificates 1,678,132 1,676,943 Total deposits 6,072,735 5,916,848 Subordinated debt issuance, net 148,529 148,469 Commitments to fund investment in affordable housing partnerships 20,956 21,623 Operating lease liabilities 24,021 16,990 Accrued interest payable 14,634 16,517 Other liabilities 40,613 39,830 Total liabilities 6,321,488 6,160,277 Shareholders' equity 778,604 763,152 Total liabilities and shareholders' equity$7,100,092 $6,923,429 Book value per common share$59.30 $57.86 Number of common shares outstanding 13,130,296 13,188,776 PREFERRED BANKSelected Consolidated Financial Information(unaudited)(in thousands, except for ratios) For the Quarter Ended March 31,December 31,September 30,June 30,March 31, 2025 2024 2024 2024 2024 Unaudited historical quarterly operations data: Interest income$114,529 $125,858 $129,424 $127,294 $126,520 Interest expense 51,871 56,685 60,576 61,187 58,020 Interest income before provision for credit losses 62,658 69,173 68,848 66,107 68,500 Provision for credit losses 700 2,000 3,200 2,500 4,400 Noninterest income 3,998 3,637 3,459 3,404 3,065 Noninterest expense 23,369 28,246 22,089 19,697 20,028 Income tax expense 12,563 12,343 13,635 13,722 13,671 Net income$30,024 $30,221 $33,383 $33,592 $33,466 Earnings per share Basic$2.27 $2.29 $2.50 $2.51 $2.48 Diluted$2.23 $2.25 $2.46 $2.48 $2.44 Ratios for the period: Return on average assets 1.76% 1.74% 1.95% 1.97% 2.00%Return on beginning equity 15.96% 16.03% 18.37% 19.31% 19.36%Net interest margin (Fully-taxable equivalent) 3.75% 4.06% 4.10% 3.96% 4.19%Noninterest expense to average assets 1.37% 1.62% 1.29% 1.15% 1.20%Efficiency ratio 35.06% 38.79% 30.55% 28.34% 27.99%Net (recoveries) charge-offs to average loans (annualized) -0.01% 0.47% -0.00% 0.68% 0.26% Ratios as of period end: Tangible common equity ratio 10.96% 11.02% 10.92% 10.55% 10.35%Tier 1 leverage capital ratio 11.52% 11.33% 11.28% 10.89% 10.80%Common equity tier 1 risk-based capital ratio 11.86% 11.80% 11.66% 11.52% 11.50%Tier 1 risk-based capital ratio 11.86% 11.80% 11.66% 11.52% 11.50%Total risk-based capital ratio 15.15% 15.11% 15.06% 14.93% 15.08%Allowances for credit losses to loans at end of period 1.28% 1.27% 1.36% 1.34% 1.49%Allowance for credit losses to non-performing loans0.91x1.89x 3.92x 1.79x 4.33x Average balances: Total securities$402,754 $350,732 $356,590 $353,357 $348,961 Total loans 5,555,010 5,542,558 5,458,613 5,320,360 5,263,562 Total earning assets 6,780,438 6,788,487 6,684,766 6,728,498 6,585,853 Total assets 6,905,249 6,920,325 6,817,979 6,863,829 6,718,018 Total time certificate of deposits 3,164,766 3,144,523 2,874,985 2,884,259 2,852,860 Total interest bearing deposits 5,244,243 5,220,655 5,124,245 5,203,034 5,004,834 Total deposits 5,886,163 5,905,127 5,828,227 5,901,976 5,761,488 Total interest bearing liabilities 5,392,735 5,369,092 5,272,617 5,351,347 5,153,089 Total equity 779,339 760,345 747,222 715,190 704,996 PREFERRED BANKSelected Consolidated Financial Information(unaudited)(in thousands, except for ratios) As of March 31, December 31, September 30,June 30, March 31, 2025 2024 2024 2024 2024Unaudited quarterly statement of financial position data: Assets: Cash and cash equivalents$925,183 $785,515 $804,994 $917,677 $936,600 Securities held-to-maturity, at amortized cost 19,745 20,021 20,311 20,605 20,904 Securities available-for-sale, at fair value 390,096 348,706 337,363 331,909 333,411 Loans: Real estate – Mortgage: Real estate—Residential$779,462 $790,069 $753,453 $732,251 $724,101 Real estate—Commercial 2,897,956 2,840,771 2,882,506 2,833,430 2,777,608 Total Real Estate – Mortgage 3,677,418 3,630,840 3,635,959 3,565,681 3,501,709 Real estate – Construction: R/E Construction — Residential 306,283 296,580 274,214 238,062 236,596 R/E Construction — Commercial 269,065 287,185 290,308 247,582 213,727 Total real estate construction loans 575,348 583,765 564,522 485,644 450,323 Commercial and industrial 1,374,379 1,418,930 1,365,550 1,371,694 1,369,529 SBA 7,104 6,833 5,424 5,463 3,914 Consumer and others 164 247 124 118 379 Gross loans 5,634,413 5,640,615 5,571,579 5,428,600 5,325,854 Allowance for credit losses on loans (72,274) (71,477) (76,051) (72,848) (79,311) Net deferred loan fees (9,652) (9,234) (10,414) (10,502) (10,460) Net loans, excluding loans held for sale$5,552,487 $5,559,904 $5,485,114 $5,345,250 $5,236,083 Loans held for sale$- $2,214 $225 $955 $605 Net loans$5,552,487 $5,562,118 $5,485,339 $5,346,205 $5,236,688 Other real estate owned and repossessed assets$13,650 $14,991 $15,082 $16,716 $16,716 Investment in affordable housing partnerships 63,612 58,346 58,009 60,432 62,854 Federal Home Loan Bank stock, at cost 15,000 15,000 15,000 15,000 15,000 Other assets 120,319 118,732 136,246 138,036 134,040 Total assets$7,100,092 $6,923,429 $6,872,344 $6,846,580 $6,756,213 Liabilities: Deposits: Demand$730,270 $704,859 $682,859 $675,767 $709,767 Interest bearing demand 2,099,987 2,026,965 1,994,288 2,326,214 2,159,948 Savings 32,631 30,150 29,793 28,251 29,261 Time certificates of $250,000 or more 1,531,715 1,477,931 1,478,500 1,406,149 1,349,927 Other time certificates 1,678,132 1,676,943 1,682,324 1,442,381 1,552,805 Total deposits$6,072,735 $5,916,848 $5,867,764 $5,878,762 $5,801,708 Subordinated debt issuance, net 148,529 148,469 148,410 148,351 148,292 Commitments to fund investment in affordable housing partnerships 20,956 21,623 23,617 27,946 29,647 Other liabilities 79,268 73,337 82,436 68,394 77,008 Total liabilities$6,321,488 $6,160,277 $6,122,227 $6,123,453 $6,056,655 Equity: Net common stock, no par value$96,079 $105,501 $109,928 $113,509 $115,915 Retained earnings 705,360 685,108 664,808 640,675 616,417 Accumulated other comprehensive income (22,835) (27,457) (24,619) (31,057) (32,774) Total shareholders' equity$778,604 $763,152 $750,117 $723,127 $699,558 Total liabilities and shareholders' equity$7,100,092 $6,923,429 $6,872,344 $6,846,580 $6,756,213 PREFERRED BANKQuarter-to-Date Average Balances, Yield and Rates(Unaudited) Three months ended March 31, Three months ended December 31, Three months ended March 31, 2025 2024 2024 InterestAverage InterestAverage InterestAverage AverageIncome orYield/ AverageIncome orYield/ AverageIncome orYield/ BalanceExpenseRate BalanceExpenseRate BalanceExpenseRateASSETS(Dollars in thousands)Interest earning assets: Loans (1,2)$5,556,521 $101,491 7.41% $5,543,215 $111,596 8.01% $5,265,940 $109,980 8.40% Investment securities (3) 402,754 4,093 4.12% 350,732 3,566 4.04% 348,961 3,430 3.95% Federal funds sold 20,222 228 4.57% 20,172 249 4.91% 20,390 283 5.58% Other earning assets 800,941 8,816 4.46% 874,368 10,546 4.80% 950,562 12,928 5.47% Total interest earning assets 6,780,438 114,628 6.86% 6,788,487 125,957 7.38% 6,585,853 126,621 7.73% Deferred loan fees, net (9,189) (9,808) (10,694) Allowance for credit losses on loans (71,550) (75,474) (78,349) Noninterest earning assets: Cash and due from banks 11,513 10,626 11,244 Bank furniture and fixtures 8,439 8,866 10,084 Right of use assets 15,201 28,570 22,003 Other assets 170,397 169,058 177,877 Total assets$6,905,249 $6,920,325 $6,718,018 LIABILITIES AND SHAREHOLDERS' EQUITYInterest bearing liabilities: Deposits: Interest bearing demand and savings$2,079,477 $16,659 3.25% $2,076,132 $18,330 3.51% $2,151,974 $22,365 4.18% TCD $250K or more 1,482,324 15,640 4.28% 1,481,219 17,514 4.70% 1,341,298 16,501 4.95% Other time certificates 1,682,442 18,247 4.40% 1,663,304 19,516 4.67% 1,511,562 17,829 4.74% Total interest bearing deposits 5,244,243 50,546 3.91% 5,220,655 55,360 4.22% 5,004,834 56,695 4.56%Short-term borrowings - - 0.00% 3 0 3.31% - - 0.00%Subordinated debt, net 148,492 1,325 3.62% 148,434 1,325 3.55% 148,255 1,325 3.59% Total interest bearing liabilities 5,392,735 51,871 3.90% 5,369,092 56,685 4.20% 5,153,089 58,020 4.53%Noninterest bearing liabilities: Demand deposits 641,920 684,472 756,654 Lease liability 18,963 25,486 19,500 Other liabilities 72,292 80,930 83,779 Total liabilities 6,125,910 6,159,980 6,013,022 Shareholders’ equity 779,339 760,345 704,996 Total liabilities and shareholders’ equity$6,905,249 $6,920,325 $6,718,018 Net interest income $62,757 $69,272 $68,601 Net interest spread 2.96% 3.18% 3.20%Net interest margin 3.75% 4.06% 4.19% Cost of Deposits: Noninterest bearing demand deposits$641,920 $684,472 $756,654 Interest bearing deposits 5,244,243 50,546 3.91% 5,220,655 55,360 4.22% 5,004,834 56,695 4.56% Total Deposits$5,886,163 $50,546 3.48% $5,905,127 $55,360 3.73% $5,761,488 $56,695 3.96% (1)Includes non-accrual loans and loans held for sale (2)Net loan fee income of $865,000, $1.2 million, and $1.1 million for the quarter ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively, are included in the yield computations(3)Yields on securities have been adjusted to a tax-equivalent basis Preferred BankLoan and Credit Quality Information Allowance For Credit Losses History Quarter Ended Year Ended March 31, 2025 December 31, 2024 (Dollars in 000's)Allowance For Credit Losses Balance at Beginning of Period$71,477 $78,355 Charge-Offs Commercial & Industrial - 19,028 Total Charge-Offs - 19,028 Recoveries Commercial & Industrial 97 50 Total Recoveries 97 50 Net (Recoveries) Charge-Offs (97) 18,978 Provision for Credit Losses: 700 12,100 Balance at End of Period$72,274 $71,477 Average Loans Held for Investment$5,555,010 $5,396,844 Loans Held for Investment at End of Period$5,634,413 $5,640,615 Net (Recoveries) Charge-Offs to Average Loans -0.01% 0.35%Allowances for Credit Losses to Loans at End of Period 1.28% 1.27%

Preferred Bank Reports First Quarter Results

FAQ

Why Neutral?

How important is it?

Why Short Term?

Related Companies

Related News