Preferred Bank (PFBC) shares came under pressure after its Q4 2025 earnings, as solid revenue and loan growth were weighed against a softer net interest margin, higher costs, and rising criticized loan balances.

The earnings release appears to have reset expectations, with a 9.2% 1 day share price decline and a 15.4% 30 day share price decline. At the same time, the 5 year total shareholder return of 99.8% shows a much stronger longer term picture. This suggests recent momentum has faded, while longer term holders have still seen meaningful value creation.

If this earnings reaction has you reassessing your options, it could be a good moment to broaden your search with fast growing stocks with high insider ownership.

With PFBC now down in the short term despite solid Q4 and full year earnings, along with a share price that sits below the average analyst target and an indicated intrinsic discount, you have to ask: is there a buying opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 21.8% Undervalued

Preferred Bank's most followed narrative points to a fair value above the last close of $83.72, framing recent weakness against a higher long term earnings picture.

Expansion into new high-growth markets, especially with new branches in Manhattan and Silicon Valley, positions Preferred Bank to capture a growing client base and increase loan originations, likely driving above-peer revenue growth. Continued demographic growth and rising wealth in the Asian-American community, which is Preferred Bank's core client segment, supports sustained demand for commercial lending and banking services, leading to a larger and more profitable revenue base.

Want to see what sits behind that growth story? The narrative leans on specific assumptions about revenue, profits, and valuation multiples. The full breakdown shows how those moving parts combine into a single fair value number.

Result: Fair Value of $107 (UNDERVALUED)

However, concentrated exposure to California commercial lending and slower digital adoption could pressure growth assumptions and margins if credit conditions or customer expectations shift.

Build Your Own Preferred Bank Narrative

If you see the story differently or prefer to work from your own research, you can test your assumptions and build a custom view in minutes with Do it your way.

A great starting point for your Preferred Bank research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.