The stock will likely react negatively due to the EPS miss and deteriorating asset quality. Monitor upcoming disclosures on the resolution of the $117.6M nonaccrual relationship and whether NIM stabilizes. The April 1 sale of $48.5M in nonaccrual loans may provide near-term relief, but underlying credit stress remains a concern.
Price Chart
Executive Summary
Preferred Bank (PFBC) reported Q1 2026 earnings with EPS of $2.53, missing the $2.46 consensus estimate by 2.8% and down sharply from $2.79 in the prior quarter. The miss was driven by a $4.7 million decline in net interest income due to interest reversals on loans placed on nonaccrual status, along with a $3.8 million drop in noninterest income. Despite solid loan and deposit growth, rising nonperforming assets and a widening net interest margin contraction signal credit quality concerns.
Key Financial Metrics
Key Facts
- Q1 2026 EPS: $2.53 (missed $2.46 consensus by 2.8%)
- Prior quarter EPS: $2.79
- Net income: $31.1M vs $34.8M in Q4 2025
- Net interest income: $65.3M, down $4.7M QoQ due to $3.4M in interest reversals
- Noninterest income: $4.3M vs $8.1M in Q4 2025, due to non-recurrence of $3.6M OREO gain
- Total nonperforming assets rose to $172.1M from $54.8M, driven by a single $117.6M relationship placed on nonaccrual
- NIM contracted to 3.57% from 3.74% QoQ, entirely due to interest reversals
- Loans grew $68.6M (1.1%), deposits grew $74.7M (1.2%)
- Provision for credit losses: $1.5M, down from $4.3M in Q4 2025
Financial Impact
EPS miss of $0.07 and $3.7M decline in net income driven by credit-related reversals and non-recurring income
Risk Factors
- Continued deterioration in asset quality and potential for further charge-offs
- Persistent NIM pressure if rate cuts continue or credit issues spread
- Concentration risk in large lending relationships
Market Snapshot
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3278902 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | Press Release | $107.10 | awaiting T+60 | — | $106.72 (+0.35%) |
Sep 16, 2026 5w ago | Press Release | $105.05 | awaiting T+60 | — | $106.72 (+1.59%) |
Jul 22, 2026 13w ago | Press Release | $104.89 $103.59 | ▼ −1.24% | ▼ −4.50% | $106.72 (+1.74%) |
Jul 9, 2026 15w ago | Press Release | $104.96 $106.48 | ▲ +1.45% | ▼ −0.19% | $106.72 (+1.68%) |
May 20, 2026 22w ago | Press Release | $94.29 $107.90 | ▲ +14.43% | ▲ +9.43% | $106.72 (+13.18%) |
Apr 22, 2026 26w ago | Press Release | $93.61 $107.39 | ▼ −14.72% | ▼ −9.94% | $106.72 (−14.00%) |
Apr 8, 2026 28w ago | Press Release | $94.70 $107.53 | ▲ +13.55% | ▲ +2.77% | $106.72 (+12.69%) |
US Market Status
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