Overview

* Preferred Bank ( PFBC ) Q3 net income rises to $35.9 mln, driven by increased net interest income

* Company's Q3 EPS reaches $2.84, marking a quarterly record

* Preferred Bank ( PFBC ) repurchased 70,842 shares for $6.3 mln in Q3

Outlook

* Company expects large pre-tax gain from OREO asset sale in Q4 results

Result Drivers

* NET INTEREST INCOME - Increase driven by $5 mln decrease in interest expense and growth in loans and investment securities

* ASSET QUALITY IMPROVEMENT - Significant reduction in nonperforming loans due to foreclosure and sale of OREO asset

* LOANS AND DEPOSITS GROWTH - Total loans increased by $132.4 mln and deposits by $151.3 mln, linked quarter

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 EPS $2.84

Q3 Net $35.93

Income mln

Q3 Net $71.31

Interest mln

Income

Q3 Net 3.92%

Interest

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the banks peer group is "buy"

* Wall Street's median 12-month price target for Preferred Bank ( PFBC ) is $106.50, about 19.9% above its October 17 closing price of $85.31

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)