Q4 2025 Preferred Bank Earnings Call Transcript
Key Points
- Preferred Bank (PFBC) reported a net income of $34.8 million or $2.79 per share for Q4 2025.
- For the full year, the bank earned $134 million or $10.41 per share, indicating strong profitability.
- Loan demand is getting stronger, with total loan growth of $182 million or over 12% for the quarter.
- Deposit growth was $115 million or 7.4% for the quarter, showing healthy deposit inflows.
- Nonperforming assets declined slightly during the quarter, indicating improved asset quality.
- Net interest margin for the fourth quarter declined due to federal rate cuts, impacting loan interest income.
- Cost of deposits remains high, with a total cost of deposits at $3.17 for December.
- A large loan relationship was placed into classified status, increasing classified assets by $97 million.
- Loan loss provision for the quarter was $4.3 million, reflecting increased credit risk.
- The competitive environment for deposits remains strong, challenging efforts to reduce deposit costs.
Good afternoon, everyone, and welcome to the Preferred Bank Q4 2025 earnings conference call. (Operator Instructions) Please also note today's event is being recorded. I would now like to turn the conference call over to Jeffrey Hass with Financial Profiles. Sir, please go ahead.
Thank you, Jamie. Hello, everyone, and thank you for joining us to discuss Preferred Bank's financial results for the fourth quarter ended December 31, 2025. With me today from management are Chairman and CEO, Li Yu; President and Chief Operating Officer, Wellington Chen; Chief Financial Officer, Edward Chica, Chief Risk Officer, Nick Pi; and Deputy Chief Operating Officer, Johnny Hsu.
Management will provide a brief summary of the results, and then we will open up the call to your questions. During the course of this conference call, statements made by management may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon
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