Preferred Bank (PFBC) Tops Q1 EPS by 3c

Preferred Bank (NASDAQ: PFBC) reported Q1 EPS of $1.09, $0.03 better than the analyst estimate of $1.06.

Li Yu, Chairman and CEO commented, “Our first quarter 2018 net income of $16.6 million or $1.09 per diluted share is a record for the Bank. The quarter compares very well with prior quarters in every aspect of the Bank’s operations. A reduced tax rate, an increased net interest margin and an increase in total loans are the primary reasons for this quarter’s strong performance.

“Loan growth was $154.6 million or 5.3% in the first quarter. Included in this growth was a $36 million home mortgage portfolio that we purchased as we continue to diversify our loan portfolio.

“Deposits did not grow during the quarter. During the first two months of the quarter, we were not increasing our deposit rates as market rates were rising. This was primarily due to the large amount of liquidity on our balance sheet as of year end ($555 million). The change of loan / deposit mix, therefore, produced margin expansion that was greater than expected. For the quarter, our net interest margin (“NIM”) was 4.14%, a 28 basis point improvement from the previous quarter.

“As there is now more competition among banks and as fintech begins to compete with banks, we plan to accelerate the buildup of our loan / deposit professionals as well as improvements in our technology. We are currently in the middle of converting our core processing system to one with much greater capabilities.

“We have recently decided to terminate the process of raising new capital by using the ‘At The Market or ATM’ method. With the new tax rate and improving margin, our operating results should generate sufficient profitability to sustain our capital levels that will be required by our planned growth.”

For earnings history and earnings-related data on Preferred Bank (PFBC) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Hydrofarm Holdings Group, Inc. (HYFM) Misses Q2 EPS by 134c
• Rein Therapeutics Inc. (RNTX) Tops Q2 EPS by 39c