Preferred Bank (PFBC) Earnings Call Transcripts
Preferred Bank's Latest Earnings Call - Q1 FY2026
Preferred Bank reported Q1 2026 net income of $31.3 million, or $2.53 per share, impacted by a nonperforming loan relationship. Revenue was not explicitly mentioned. The bank's net interest margin decreased to 3.457% from 3.74% in the previous quarter due to a nonrecurring reversal of interest income. Management is optimistic about a margin rebound in future quarters. Loan and deposit growth were moderate, both increasing by approximately 1.1% and 1.2% sequentially. No changes to guidance were explicitly stated.
Reported metrics
| Metric | Value |
|---|---|
| Net Income | $31.3 million (inline) |
| EPS | $2.53 (inline) |
| Net Interest Margin | 3.457% (miss) |
| Loan Growth | 1.1% (inline) |
| Deposit Growth | 1.2% (inline) |
| Shares Repurchased | 400,000 shares (positive) |
Guidance from management
Management did not provide explicit forward guidance changes but expressed optimism about resolving nonperforming loans and stabilizing net interest margins.
What management said
Yes. You're correct. Part of that $76 million, $48.5 million is the 2 notes sold at par on April 1. There's 2 other notes in there that we are actively marketing at this point as well to sell the notes. That's why they're placed in held for sale.
Well, that's a lot of questions in one, Matthew, but I'll take a stab at it. The deposit costs are coming down but not to the same -- not in the same velocity they were in Q4. So that that is starting to slow in terms of the lowering of deposit costs as we go forward. For your record, March deposit cost was [ 3.10 ] overall. In terms of maturities, we have $1.35 billion maturing in the quarter at a [ 3.89 ] rate th...
What analysts pressed on
Analysts expressed concerns about the competitive loan pricing environment and the impact of geopolitical events on economic conditions. There were also questions about the sustainability of loan growth and the bank's approach to managing deposit costs.
Main topics on the call
- Nonperforming Loan Resolution — Management addressed a significant nonperforming loan relationship, initially totaling $77 million. They have sold loans totaling $57.9 million at par, effectively reducing the exposure by 50%. Li Yu stated, 'We'll conti...
- Net Interest Margin Decline — The net interest margin fell to 3.457% from 3.74% due to a nonrecurring reversal of interest income. Management is hopeful for a rebound, with Edward Czajka noting, 'We're looking for something in that area as we go forw...
- Loan and Deposit Growth — Loan growth was moderate at 1.1% sequentially, and deposit growth was 1.2%. Li Yu mentioned, 'Market competition, especially in the pricing end of it has been very severe.'
- Share Repurchase — The bank repurchased approximately 400,000 shares at $90 each. This indicates a strategic use of excess capital amid market conditions.
Read the full Preferred Bank transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.
About Preferred Bank
Preferred Bank (PFBC) is a publicly listed company in the Banks industry, within the Financials sector. It trades on NasdaqGS and is based in US. EarningsCalls.dev maintains a free, full-text archive of its earnings call transcripts — 28 calls on record spanning January 23, 2020 to October 23, 2026. Every transcript is split into speaker-by-speaker segments with headline metrics, free to read or available through our REST API.
Earnings Call History
EarningsCalls.dev has 28 Preferred Bank earnings call transcripts on record, spanning January 23, 2020 to October 23, 2026. Based on this history, Preferred Bank reports quarterly. The most recent call on file is dated October 23, 2026. The full list is below — each row opens the complete, free-to-read transcript.
- Ticker
- PFBC
- Exchange
- NasdaqGS
- Country
- US
- Sector
- Financials
- Industry
- Banks
- Calls on record
- 28
- First call
- January 23, 2020
- Most recent
- October 23, 2026
- Reporting cadence
- quarterly