Preferred Bank(US:PFBC) Globenewswireยท2025-10-20 20:11Core Insights - Preferred Bank reported a net income of $35.9 million or $2.84 per diluted share for Q3 2025, marking an increase of $3.1 million from the previous quarter and $2.6 million from the same quarter last year, primarily driven by an increase in net interest income [1][2][5] - Nonperforming loans decreased significantly from $52.3 million at the end of Q2 2025 to $17.6 million by the end of Q3 2025, attributed to the foreclosure of a large loan [3][12] - Total loans increased by $132.4 million or 2.3% quarter-over-quarter, while total deposits rose by $151.3 million or 2.5% [4][8] Financial Performance - Net interest income before provision for credit losses was $71.3 million for Q3 2025, up $4.4 million from the prior quarter and $2.5 million from the same quarter last year [5][23] - Noninterest income for Q3 2025 was $3.7 million, a slight increase from $3.5 million in the same quarter last year [6][30] - Total noninterest expense decreased to $21.5 million in Q3 2025 from $22.4 million in Q2 2025, primarily due to a reduction in OREO property write-downs [7][30] Asset Quality - The allowance for credit losses was $74.7 million, with a provision for credit losses of $2.5 million in Q3 2025, compared to $1.6 million in the previous quarter [13][30] - The efficiency ratio improved to 28.7% in Q3 2025 from 31.8% in the previous quarter, indicating better cost management [7][8] Balance Sheet Highlights - Total gross loans reached $5.87 billion, an increase of $231.4 million from December 31, 2024 [11][30] - Total deposits were $6.23 billion, up $312.8 million from December 31, 2024 [11][30] - Total assets increased to $7.47 billion, reflecting a growth of $544.4 million since December 31, 2024 [11][30] Capitalization Ratios - As of September 30, 2025, the tangible capital ratio was 10.38%, the leverage ratio was 10.66%, and the common equity tier 1 capital ratio was 11.34% [14][30]