Preferred Bank ( (PFBC) ) has released its Q4 earnings. Here is a breakdown of the information Preferred Bank presented to its investors.
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Preferred Bank, an independent commercial bank based in California, provides a range of financial products and services, including real estate finance and trade finance, to commercial and consumer clients. The bank has a diverse customer base, including a significant number of clients from the ethnic Chinese community in California.
The latest earnings report for Preferred Bank reveals a net income of $30.2 million for the fourth quarter of 2024, or $2.25 per diluted share, reflecting a decrease from previous periods primarily due to a one-time correction in lease expenses. Despite this, the bank maintains strong profitability metrics, with a net interest margin of 4.06% and notable loan growth.
Key financial highlights include a year-end net interest income of $69.2 million for the quarter and a $369 million increase in total loans for the year, marking a 7.0% growth. The bank’s efficiency ratio rose to 38.8% due to the adjustment in noninterest expenses, yet it sustained a return on average assets of 1.74% for the quarter. Additionally, the bank improved its credit metrics, with a significant reduction in non-performing and criticized loans.
Looking ahead, Preferred Bank’s management remains optimistic about continuing its robust financial performance into 2025, despite challenges such as high interest rates and inflation. The bank has demonstrated resilience and a commitment to supporting the community, particularly in the aftermath of recent wildfires in the Los Angeles area.
