Overview

• US commercial bank's Q1 net income rose yr/yr but declined from prior quarter

• Quarterly net interest income increased yr/yr, but fell from prior quarter due to loan reversals

• Company repurchased 402,299 shares for $35.8 mln under ongoing buyback plan

Outlook

• Company says competition for loans and deposits remains intense with tight pricing

• Preferred Bank is continuing to work with note buyers to resolve nonaccrual loans

Result Drivers

• NONACCRUAL LOANS - Net interest income fell due to reversal of interest on loans placed on nonaccrual status, including a large relationship, per CEO Li Yu

• NONRECURRING GAINS - Noninterest income declined from prior quarter due to absence of $3.6 mln gain on sale of OREO recorded in Q4 2025

• LOAN AND DEPOSIT GROWTH - Total loans and deposits increased modestly, but competition remains intense and pricing tight, per management

Company press release: ID:nGNX2lBVZF

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Net Income		$31.14 mln
Q1 Net Interest Income		$65.31 mln
Q1 Net Interest Margin		3.57%

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Preferred Bank is $102.00, about 8.5% above its April 21 closing price of $94.04

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

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