Preferred Bank (NASDAQ:PFBC) Sees Large Volume Increase on Strong Earnings

Preferred Bank (NASDAQ:PFBC) shares saw strong trading volume on Wednesday following a stronger than expected earnings report. 58,365 shares traded hands during mid-day trading, a decline of 47% from the previous session’s volume of 109,819 shares.The stock last traded at $107.6050 and had previously closed at $106.04.

The bank reported $2.78 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.65 by $0.13. Preferred Bank had a return on equity of 17.27% and a net margin of 26.54%.The firm had revenue of $73.47 million during the quarter, compared to analysts’ expectations of $73.60 million.

Preferred Bank Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, July 21st. Stockholders of record on Tuesday, July 7th were issued a dividend of $0.80 per share. This represents a $3.20 annualized dividend and a dividend yield of 3.2%. The ex-dividend date was Tuesday, July 7th. Preferred Bank’s payout ratio is currently 29.96%.

More Preferred Bank News

Here are the key news stories impacting Preferred Bank this week:

• Positive Sentiment: Preferred Bank reported Q2 2026 EPS of $2.78, beating the consensus estimate of $2.65 and rising from $2.52 a year ago, suggesting stronger profitability. Article Title
• Positive Sentiment: The bank said net income increased to $33.5 million, helped by a $4.7 million sequential increase in net interest income, indicating improved core banking performance. Article Title
• Positive Sentiment: Commentary from the earnings call highlighted strong loan growth and improved asset quality, which can support investor confidence in future earnings stability. Article Title
• Neutral Sentiment: Revenue of $73.47 million was slightly below the consensus estimate of $73.60 million, so top-line results were essentially mixed. Article Title
• Neutral Sentiment: One market recap described the quarter as broadly in line with expectations, suggesting the stock may also be influenced by the balance between the EPS beat and modest revenue shortfall. Article Title

Analysts Set New Price Targets

Several equities analysts recently weighed in on the stock. Weiss Ratings raised shares of Preferred Bank from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Monday, June 8th. Piper Sandler boosted their target price on shares of Preferred Bank from $105.00 to $111.00 and gave the stock an “overweight” rating in a research report on Monday, April 27th. Finally, Stephens increased their price target on shares of Preferred Bank from $100.00 to $110.00 and gave the stock an “equal weight” rating in a research note on Thursday. Two investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $106.25.

Hedge Funds Weigh In On Preferred Bank

A number of institutional investors have recently made changes to their positions in PFBC. EverSource Wealth Advisors LLC boosted its stake in Preferred Bank by 1,224.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 331 shares of the bank’s stock valued at $29,000 after purchasing an additional 306 shares during the period. Quarry LP increased its position in Preferred Bank by 1,992.0% in the 3rd quarter. Quarry LP now owns 523 shares of the bank’s stock worth $47,000 after buying an additional 498 shares during the period. Johnson Financial Group Inc. bought a new position in Preferred Bank in the 3rd quarter worth approximately $70,000. Kemnay Advisory Services Inc. acquired a new position in shares of Preferred Bank during the fourth quarter worth approximately $91,000. Finally, Clearstead Advisors LLC lifted its holdings in shares of Preferred Bank by 192.1% during the fourth quarter. Clearstead Advisors LLC now owns 1,072 shares of the bank’s stock worth $101,000 after buying an additional 705 shares during the last quarter. 72.77% of the stock is currently owned by institutional investors.

Preferred Bank Stock Down 3.3%

The company has a quick ratio of 1.06, a current ratio of 1.08 and a debt-to-equity ratio of 0.44. The company has a market capitalization of $1.46 billion, a P/E ratio of 9.27 and a beta of 0.55. The firm has a 50-day moving average price of $100.75 and a two-hundred day moving average price of $94.86.

Preferred Bank Company Profile

Preferred Bank (NASDAQ: PFBC) is a California-chartered commercial bank headquartered in Los Angeles. The institution offers a full range of banking products and services to businesses and individuals, with a particular emphasis on commercial real estate lending, business banking, treasury management and deposit accounts. Preferred Bank operates through branch offices across Southern California and national loan production offices in major U.S. markets.

The bank’s core lending portfolio focuses on commercial real estate acquisition, development and investment properties.