Preferred Bank (PFBC) Q3 2026 Earnings Report

The call was cautiously positive, supported by $32.9 million of net income, deposit growth, a stronger loan pipeline, cost control, slower credit migration, and a favorable 2027 outlook. These positives were balanced by competitive deposit conditions, a modest loan decline, heavy fourth-quarter CD maturities, delayed nonaccrual resolutions, and elevated classified loans subject to court proceedings.

Management expects just under $1.7 billion of CDs maturing in the fourth quarter, with a weighted average yield of 3.81% and rollovers likely to come on anywhere between 3.75%-4%; fourth-quarter expenses are expected to be somewhere between $23 million and $24 million. Management said the pipeline seems to be very solid and is very hopeful that in the fourth quarter to have good, solid growth, with a stronger pipeline and hopefully by Q4 a couple of large loans disposed, although this totally depends on the court decision. Deposit-market competition will likely go into the year 2027, while management expects a strong 2027 economy and relatively stable interest rate environment and is looking forward to a good 2027 year; if the Fed fund is going to adjust higher, it will further benefit net interest margin.