Key Highlights

  • Preferred Bank's $0.80 quarterly dividend trades ex-dividend October 5, 2026, with payment on October 19 to shareholders of record.
  • Second-quarter net income was $33.5 million, or $2.78 per diluted share, compared with $32.8 million, or $2.57, a year earlier.
  • Nonperforming loans decreased $70.2 million, or 41.5%, to $98.9 million from $169.1 million, according to the company.
  • Second-quarter net interest income was $70.0 million, up $3.1 million, and the net interest margin was 3.73%.

Preferred Bank (NASDAQ:PFBC) declared a quarterly dividend of $0.80 per share, a yield of 3.02%, payable October 19 to shareholders of record on October 5, 2026. Second-quarter net income was $33.5 million, or $2.78 per diluted share, and nonperforming loans decreased to $98.9 million.

Dividend Program and Shareholder Returns

Preferred Bank's board declared the quarterly dividend of $0.80 per share on September 16, 2026, payable October 19 to shareholders of record on October 5. The shares trade ex-dividend on October 5.

The dividend has been $0.80 per share since the January 2026 payment, compared with $0.75 per share in the second quarter of 2025. Net income for the first six months of 2026 was $64.7 million, or $5.32 per diluted share, up 2.9% from the prior-year period. Each dividend remains subject to board approval.

About the Company

Preferred Bank is a commercial bank that reported total assets of $7.73 billion at the end of the second quarter. Its results depend on net interest income, loan and deposit growth, credit quality and capital ratios. Total loans were $6.25 billion, including $3.91 billion of real estate mortgage loans, $649 million of real estate construction loans and $1.68 billion of commercial and industrial loans.

Net Interest Income, Returns and Capital Ratios

Preferred Bank reported second-quarter net interest income of $70.0 million, an increase of $3.1 million. Net income was $33.5 million, or $2.78 per diluted share, compared with $32.8 million, or $2.57, in the second quarter of 2025. The net interest margin was 3.73%, return on average assets was 1.75%, and return on average equity was 17.05%, compared with 15.89% in the first quarter.

Loans rose $124.8 million, or 2.0%, from the prior quarter, and deposits rose $52.1 million, or 0.8%, to $6.47 billion. Noninterest-bearing demand deposits were $754.7 million. Noninterest income was $3.5 million, compared with $4.3 million in the first quarter, and noninterest expense was $23.7 million, compared with $23.5 million. The efficiency ratio was 32.3%.

The company reported a tangible common equity ratio of 10.26%, a common equity tier 1 ratio of 11.06% and a total capital ratio of 13.74%. Book value per share was $66.95, compared with $64.83 at year-end 2025.

Nonperforming Loans, Provision and Interest Recoveries

Preferred Bank reported that nonperforming loans decreased $70.2 million, or 41.5%, to $98.9 million from $169.1 million in the first quarter, and that classified assets decreased to $103.8 million from $174.7 million. The company reported a provision for credit losses of $1.2 million, compared with $1.5 million in the first quarter and $1.6 million in the second quarter of 2025, and an allowance ratio of 1.22%. Preferred Bank also reported $2.9 million of interest recoveries, a $950 thousand loss on a nonaccrual loan sale that reduced noninterest income, and a $502 thousand increase in professional services related to problem loan legal fees. In its release, Li Yu stated that the company is optimistic about its current operating environment, citing loan origination activity and competition in deposit gathering.

Outlook

Preferred Bank's $0.80 quarterly dividend is payable October 19 to shareholders of record on October 5, 2026. The trend in nonperforming loans relative to the $98.9 million reported, the 3.73% net interest margin, and the 11.06% common equity tier 1 ratio are the relevant considerations.