Preferred Bank reported fourth‐quarter earnings of $2.79 per share for the period ended December 31, 2025, surpassing the consensus estimate of $2.78 and representing a 24% year-over-year increase from $2.25 per share in Q4 2024. This result reflects consistent loan growth in the commercial real estate and small business segments, where total loans rose by 15% year-over-year. Net interest income expanded by 18% as the bank continued to optimize its funding mix, driving a net interest margin of 4.10%, up from 3.85% a year earlier. Credit quality remained strong, with nonperforming assets steady at 0.40% of total assets and the allowance for credit losses covering 2.2 times nonperforming loans.

Preferred Bank maintained its quarterly cash dividend of $0.40 per share, equating to an annualized payout of $1.60 per share and yielding approximately 3.2% based on recent market levels. The company has sustained or increased its dividend for eight consecutive years, supported by a dividend payout ratio near 57% in 2025. At the end of the quarter, tangible common equity stood at $200 million, representing a tangible equity ratio of 11.5%, well above regulatory thresholds and providing ample capital buffer to support future distributions.