Preferred Bank Q2 Profit Beats, Outperforms S&P 500

Preferred Bank reported GAAP net income of $32.8 million ($2.52 per share) for the second quarter of 2025, surpassing analyst expectations with a 3.7% earnings surprise. The bank's net interest margin rose to 3.85%, supported by disciplined deposit management and about 7% annualized loan growth led by commercial and construction lending. Q2 sales increased 1.6% year-over-year to $70.65 million, and Preferred Bank has outperformed the S&P 500 so far in 2025. Asset quality improved as nonaccrual and criticized loans declined, and the bank repurchased $56 million in shares while authorizing an additional $125 million buyback. Analysts responded by raising price targets and maintaining favorable ratings. Management noted ongoing loan demand and plans for further branch expansion, supporting a cautiously optimistic outlook.