Preferred Bank Reports Strong Q3 Financial Results

Core Insights - Preferred Bank reported strong financial results for Q3 2025, with EPS of $2.84, exceeding estimates of $2.57 and up from $2.46 year-over-year [1][6] - The bank's revenue reached approximately $74.98 million, surpassing the estimated $72.74 million, reflecting a 3.70% increase over the Zacks Consensus Estimate and an improvement from $72.31 million a year ago [2][6] - Net income for the quarter was $35.9 million, a $3.1 million increase from the previous quarter and a $2.6 million rise compared to the same period last year, driven by a reduction in interest expenses and an increase in gross interest income [3][6] Financial Metrics - Key performance indicators include a return on average assets of 1.93% and a return on average equity of 18.64% [4] - The bank's price-to-earnings (P/E) ratio is approximately 8.79, with a price-to-sales ratio of about 2.25 and an enterprise value to sales ratio around 1.45 [4] - The earnings yield stands at about 11.38%, and the debt-to-equity ratio is approximately 0.50, indicating a balanced financing approach [5] Areas for Improvement - The current ratio is around 0.13, suggesting a need for improvement in covering short-term liabilities with short-term assets [5]