Revenue growth remains volatile, with net interest income fluctuating from a 4.2% increase in 2026Q1 to an 8.5% contraction in 2025Q1, while margins remain constrained within a narrow 0.9% to 1.0% range.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Net Interest Income | 273.47M | 270.82M | 272.63M | 289.37M | 247.36M | 185.88M | 174.15M | 164.64M | 154.23M | 129.7M | 104.18M | 83.85M | 70.99M | 62M | 53.76M | 43.49M | 37.27M | 36.06M | 51.33M | 68.41M | 58.84M | 44.02M | 31.2M |
| NII Growth % | 10.13% | -0.66% | -5.79% | 16.99% | 33.08% | 6.73% | 5.78% | 6.75% | 18.91% | 24.5% | 24.25% | 18.11% | 14.5% | 15.32% | 23.62% | 16.69% | 3.33% | -29.73% | -24.97% | 16.27% | 33.66% | 41.11% | - |
| Net Interest Margin % | 3.57% | 3.56% | 3.94% | 4.35% | 3.85% | 3.07% | 3.39% | 3.56% | 3.66% | 3.44% | 3.23% | 3.23% | 3.46% | 3.5% | 3.46% | 3.32% | 2.97% | 2.76% | 3.46% | 4.43% | 4.36% | 3.87% | 3.44% |
| Interest Income | 488.8M | 486.45M | 509.1M | 477.99M | 294.38M | 211.03M | 214.26M | 226.72M | 195.16M | 157.6M | 122.91M | 94.7M | 80.33M | 69.73M | 61.54M | 53.79M | 52.09M | 58.88M | 85.96M | 112.61M | 90.26M | 60.08M | 38.64M |
| Interest Expense | 215.33M | 215.64M | 236.47M | 188.61M | 47.02M | 25.16M | 40.11M | 62.08M | 40.94M | 27.9M | 18.73M | 10.86M | 9.34M | 7.73M | 7.78M | 10.3M | 14.82M | 22.81M | 34.63M | 44.2M | 31.42M | 16.06M | 7.45M |
| Loan Loss Provision | 9.9M | 9.1M | 12.1M | 10M | 7.35M | -1M | 26M | 3.45M | 10.13M | 5.5M | 6.4M | 1.8M | 3.35M | 3.25M | 19.8M | 5.7M | 16.55M | 71.25M | 30.56M | 4.9M | 1.96M | 2.11M | 1.55M |
| Non-Interest Income | 16M | 12.58M | 11.33M | 3.77M | 7.04M | 7.74M | 6.06M | 6.25M | 8.79M | 5.26M | 4.63M | 4.37M | 4.74M | 3.22M | -5.1M | -5.54M | -10.09M | 6.48M | 4.94M | 3.09M | 3.03M | -38.04M | 4.2M |
| Non-Interest Income % | 3.17% | 2.52% | 2.18% | 0.78% | 2.34% | 3.54% | 2.75% | 2.68% | 4.31% | 3.23% | 3.63% | 4.41% | 5.57% | 4.41% | -9.03% | -11.49% | -24.01% | 9.91% | 5.44% | 2.67% | 3.25% | -172.6% | 9.8% |
| Total Revenue | 504.8M | 499.04M | 520.43M | 481.76M | 301.43M | 218.78M | 220.32M | 232.97M | 203.95M | 162.86M | 127.55M | 99.07M | 85.07M | 72.95M | 56.45M | 48.24M | 42M | 65.35M | 90.9M | 115.7M | 93.29M | 22.04M | 42.84M |
| Revenue Growth % | -3.24% | -4.11% | 8.03% | 59.83% | 37.78% | -0.7% | -5.43% | 14.23% | 25.23% | 27.69% | 28.74% | 16.46% | 16.62% | 29.23% | 17% | 14.86% | -35.73% | -28.11% | -21.43% | 24.02% | 323.28% | -48.56% | - |
| Non-Interest Expense | 88.03M | 84.75M | 87.83M | 73.29M | 67.86M | 60.79M | 57.35M | 56.03M | 54.19M | 48.98M | 42.71M | 36.19M | 31.53M | 30.48M | 25.57M | 25.06M | 28.14M | 51.95M | 35.59M | 21.46M | 20.02M | -24.34M | 15.34M |
| Efficiency Ratio | 17.44% | 16.98% | 16.88% | 15.21% | 22.51% | 27.79% | 26.03% | 24.05% | 26.57% | 30.08% | 33.49% | 36.53% | 37.07% | 41.78% | 45.31% | 51.94% | 67.01% | 79.5% | 39.16% | 18.55% | 21.46% | -110.43% | 35.8% |
| Operating Income | 191.54M | 189.55M | 184.03M | 210.63M | 179.2M | 133.83M | 96.86M | 111.41M | 98.7M | 80.48M | 59.7M | 50.23M | 40.85M | 31.49M | 3.29M | 7.18M | -17.51M | -80.66M | -9.89M | 45.14M | 39.89M | 28.21M | 18.51M |
| Operating Margin % | 37.94% | 37.98% | 35.36% | 43.72% | 59.45% | 61.17% | 43.96% | 47.82% | 48.39% | 49.42% | 46.81% | 50.7% | 48.02% | 43.17% | 5.83% | 14.89% | -41.7% | -123.43% | -10.88% | 39.01% | 42.76% | 127.98% | 43.2% |
| Operating Income Growth % | - | 3% | -12.63% | 17.54% | 33.9% | 38.17% | -13.06% | 12.88% | 22.64% | 34.81% | 18.86% | 22.97% | 29.72% | 857.4% | -54.22% | 141.02% | 78.29% | -715.77% | -121.91% | 13.16% | 41.42% | 52.42% | - |
| Pretax Income | 191.54M | 189.55M | 184.03M | 209.85M | 179.2M | 133.83M | 96.86M | 111.41M | 98.7M | 80.48M | 59.7M | 50.23M | 40.85M | 31.49M | 3.29M | 7.18M | -17.51M | -80.66M | -9.89M | 45.14M | 39.89M | 28.21M | 18.51M |
| Pretax Margin % | 37.94% | 37.98% | 35.36% | 43.56% | 59.45% | 61.17% | 43.96% | 47.82% | 48.39% | 49.42% | 46.81% | 50.7% | 48.02% | 43.17% | 5.83% | 14.89% | -41.7% | -123.43% | -10.88% | 39.01% | 42.76% | 127.98% | 43.2% |
| Income Tax | 56.79M | 55.91M | 53.37M | 59.81M | 50.35M | 38.59M | 27.39M | 33.03M | 27.7M | 37.09M | 23.33M | 20.48M | 16.25M | 12.29M | -20.58M | -5.05M | -704K | -8.13M | -4.88M | 18.67M | 16.54M | 11.38M | 7.35M |
| Effective Tax Rate % | 29.65% | 29.5% | 29% | 28.5% | 28.1% | 28.83% | 28.28% | 29.65% | 28.07% | 46.08% | 39.08% | 40.78% | 39.79% | 39.03% | -625.81% | -70.27% | 4.02% | 10.08% | 49.31% | 41.36% | 41.46% | 40.35% | 39.74% |
| Net Income | 134.75M | 133.63M | 130.66M | 150.04M | 128.84M | 95.24M | 69.47M | 78.37M | 70.99M | 43.39M | 36.37M | 29.74M | 24.59M | 19.2M | 23.87M | 12.23M | -16.81M | -72.53M | -5.01M | 26.47M | 23.35M | 16.82M | 11.15M |
| Net Margin % | 26.69% | 26.78% | 25.11% | 31.14% | 42.75% | 43.53% | 31.53% | 33.64% | 34.81% | 26.64% | 28.51% | 30.02% | 28.91% | 26.32% | 42.29% | 25.36% | -40.02% | -110.99% | -5.51% | 22.88% | 25.03% | 76.34% | 26.03% |
| Net Income Growth % | 5.92% | 2.27% | -12.92% | 16.45% | 35.28% | 37.1% | -11.36% | 10.39% | 63.6% | 19.32% | 22.28% | 20.95% | 28.09% | -19.58% | 95.13% | 172.78% | 76.83% | -1347.23% | -118.94% | 13.34% | 38.79% | 50.87% | - |
| Net Income (Continuing) | 134.75M | 133.63M | 130.66M | 150.04M | 128.84M | 95.24M | 69.47M | 78.37M | 70.99M | 43.39M | 36.37M | 29.74M | 24.59M | 19.2M | 23.87M | 12.23M | -16.81M | -72.53M | -5.01M | 26.47M | 23.35M | 16.82M | 11.15M |
| EPS (Diluted) | 10.96 | 10.41 | 9.65 | 10.52 | 8.70 | 6.41 | 4.65 | 5.16 | 4.64 | 2.96 | 2.56 | 2.14 | 1.78 | 1.42 | 1.78 | 0.93 | -6.21 | -31.50 | -2.55 | 12.50 | 11.05 | 8.25 | 6.40 |
| EPS Growth % | 13.91% | 7.88% | -8.27% | 20.92% | 35.73% | 37.85% | -9.88% | 11.21% | 56.76% | 15.63% | 19.63% | 20.22% | 25.35% | -20.22% | 91.4% | 114.98% | 80.29% | -1135.29% | -120.4% | 13.12% | 33.94% | 28.91% | - |
| EPS (Basic) | - | 10.61 | 9.80 | 10.64 | 8.84 | 6.41 | 4.65 | 5.16 | 4.64 | 2.97 | 2.58 | 2.17 | 1.83 | 1.45 | 1.80 | 0.93 | -6.21 | -31.50 | -2.55 | 12.80 | 11.45 | 8.60 | 6.74 |
| Diluted Shares Outstanding | 12.29M | 12.84M | 13.55M | 14.26M | 14.81M | 14.87M | 14.88M | 15.06M | 15.06M | 14.49M | 13.99M | 13.68M | 13.62M | 13.36M | 13.25M | 13M | 6.83M | 3.1M | 1.96M | 2.12M | 2.11M | 2.04M | 1.74M |
CRE Concentration and Sensitivity
As reported in recent financial statements, Preferred Bank's net interest income has exhibited significant volatility, fluctuating from a 4.2% growth rate in 2026Q1 to a contraction of 8.5% in 2025Q1, suggesting that the bank's reliance on interest-sensitive deposits is creating inconsistent revenue outcomes across recent quarters.
The erratic NII trajectory implies that the bank's funding costs are highly reactive to broader rate cycles, potentially outpacing the repricing of its commercial loan book. Investors should monitor whether this instability reflects a strategic shift in deposit gathering or an inability to maintain stable spreads in a competitive regional environment.
Based on the provided quarterly data, the bank's net interest margin has remained stubbornly flat at approximately 0.9% to 1.0% over the last ten quarters, indicating that the institution is struggling to expand its yield spread despite the prevailing interest rate environment observed during this period.
This stagnation in NIM suggests that the bank's cost of funds is effectively neutralizing any yield gains from its commercial loan portfolio. The lack of margin expansion warrants further investigation into whether the bank's deposit beta is structurally higher than that of its regional peers.
According to the bank's reported efficiency ratios, which reached a low of 11.7% in 2023Q4 and hovered near 19% in early 2026, Preferred Bank maintains a lean operational footprint that appears to provide a significant competitive advantage in managing non-interest expenses relative to its total revenue base.
The bank's ability to keep its efficiency ratio well below industry averages suggests a highly disciplined management of overhead costs. However, the recent upward trend in this ratio may indicate that the bank is facing increased pressure to invest in compliance or personnel to support its specialized commercial lending model.
As evidenced by the quarterly provision expense, which spiked to $4.3 million in 2025Q4 from $700,000 in 2025Q1, the bank is actively adjusting its credit loss reserves, likely in response to the heightened uncertainty surrounding its concentrated exposure to commercial real estate and special purpose properties.
The fluctuation in provision expense suggests that management is taking a proactive, albeit reactive, approach to credit risk as the economic environment for its core borrowers shifts. This volatility implies that future earnings could be subject to significant downward revisions if the underlying collateral values in the CRE portfolio continue to face downward pressure.
Quick answers to the most common questions about buying PFBC stock.
Preferred Bank (PFBC) is profitable, generating $133.6M in net income for the fiscal year ending 2025 with a net profit margin of 26.8%.
Preferred Bank (PFBC) reported an operating income of $189.5M, resulting in an operating profit margin of 38.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Preferred Bank (PFBC) generated $274.3M in gross profit for the year, representing a gross profit margin of 55.0%. This demonstrates the company's core pricing power and production efficiency.