Preferred Bank (NASDAQ:PFBC) Stock Price Down 6.2% – Here’s What Happened

Shares of Preferred Bank (NASDAQ:PFBC) fell 6.2% during mid-day trading on Friday . The company traded as low as $87.08 and last traded at $86.5340. 42,509 shares were traded during trading, a decline of 51% from the average session volume of 87,516 shares. The stock had previously closed at $92.21.

Preferred Bank News Summary

Here are the key news stories impacting Preferred Bank this week:

• Positive Sentiment: Q4 beat on the headline numbers: PFBC reported $2.79 EPS (vs. $2.78 consensus) and $78.1M revenue, helped by gains on property sales and solid operating metrics; the print supports near-term earnings visibility. Preferred Bank Reports Fourth Quarter Results
• Positive Sentiment: Loan growth is a bright spot highlighted on the call — core lending expanded, which supports future interest income if margins stabilize. Preferred Bank Q4 2025 Earnings Call Highlights
• Positive Sentiment: Income investors note PFBC’s dividend profile as attractive given its payout and return-on-equity track record, which can support demand from yield-focused holders. Why Preferred Bank (PFBC) is a Great Dividend Stock Right Now
• Neutral Sentiment: After recent moves, some analysts are re-checking valuation and forward earnings assumptions; PFBC still trades at a low-teens P/E on consensus forward estimates, so valuation remains a mixed factor. A Look At Preferred Bank (PFBC) Valuation
• Negative Sentiment: Investors are worried about margin pressure — net interest income declined sequentially as market rates fell, and deposit costs are trending higher, compressing NIM. PFBC Q4 deep dive: Deposit costs, credit quality, and loan growth shape outlook
• Negative Sentiment: Credit and reserve dynamics: the bank took a larger provision for credit losses sequentially, raising concern about asset-quality trends and future earnings volatility. Why Preferred Bank (PFBC) shares are falling today
• Negative Sentiment: Analyst/market commentary flagged rising risks discussed on the call (costs, credit, margin sensitivity), which likely triggered the sell-off despite the modest beat. Preferred Bank Earnings Call: Profits Strong, Risks Rising

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on PFBC. Zacks Research cut shares of Preferred Bank from a “strong-buy” rating to a “hold” rating in a research note on Friday, December 26th. Piper Sandler raised their target price on shares of Preferred Bank from $112.00 to $119.00 and gave the company an “overweight” rating in a research note on Wednesday, October 22nd. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Preferred Bank in a research note on Monday, December 29th. Finally, DA Davidson decreased their price objective on shares of Preferred Bank from $108.00 to $104.00 and set a “neutral” rating for the company in a report on Wednesday, October 22nd. Two equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $104.67.

Preferred Bank Trading Down 9.2%

The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.44. The stock has a market capitalization of $1.21 billion, a P/E ratio of 8.07 and a beta of 0.66. The firm’s 50-day simple moving average is $95.99 and its 200 day simple moving average is $93.40.

Preferred Bank (NASDAQ:PFBC) last posted its quarterly earnings data on Thursday, January 22nd. The bank reported $2.79 earnings per share for the quarter, beating the consensus estimate of $2.78 by $0.01. Preferred Bank had a net margin of 26.41% and a return on equity of 17.31%. The company had revenue of $78.07 million during the quarter, compared to analyst estimates of $74.54 million. Equities research analysts anticipate that Preferred Bank will post 9.81 EPS for the current fiscal year.

Preferred Bank Dividend Announcement

The firm also recently declared an annual dividend, which was paid on Tuesday, January 20th. Shareholders of record on Tuesday, January 6th were given a $3.20 dividend. The ex-dividend date was Tuesday, January 6th. This represents a yield of 336.0%. Preferred Bank’s payout ratio is 30.83%.

Institutional Investors Weigh In On Preferred Bank

A number of institutional investors and hedge funds have recently modified their holdings of PFBC. Geode Capital Management LLC lifted its position in shares of Preferred Bank by 1.3% in the 2nd quarter. Geode Capital Management LLC now owns 372,081 shares of the bank’s stock valued at $32,205,000 after acquiring an additional 4,896 shares in the last quarter. American Century Companies Inc. lifted its holdings in shares of Preferred Bank by 13.5% in the second quarter. American Century Companies Inc. now owns 291,858 shares of the bank’s stock valued at $25,259,000 after purchasing an additional 34,796 shares in the last quarter. Boston Partners boosted its position in shares of Preferred Bank by 1.3% in the second quarter. Boston Partners now owns 532,085 shares of the bank’s stock worth $46,428,000 after buying an additional 6,963 shares during the period. CWM LLC grew its holdings in shares of Preferred Bank by 301.6% during the third quarter. CWM LLC now owns 9,581 shares of the bank’s stock valued at $866,000 after buying an additional 7,195 shares in the last quarter. Finally, WINTON GROUP Ltd grew its holdings in shares of Preferred Bank by 217.1% during the second quarter. WINTON GROUP Ltd now owns 42,116 shares of the bank’s stock valued at $3,645,000 after buying an additional 28,835 shares in the last quarter. Institutional investors and hedge funds own 72.77% of the company’s stock.

About Preferred Bank

Preferred Bank (NASDAQ: PFBC) is a California-chartered commercial bank headquartered in Los Angeles. The institution offers a full range of banking products and services to businesses and individuals, with a particular emphasis on commercial real estate lending, business banking, treasury management and deposit accounts. Preferred Bank operates through branch offices across Southern California and national loan production offices in major U.S. markets.

The bank’s core lending portfolio focuses on commercial real estate acquisition, development and investment properties.