Preferred Bank reported net income of $34.8 million for the fourth quarter ended December 31, 2025, or $2.79 per diluted share, up from $2.25 a year ago. This result exceeded the consensus estimate by $0.01 per share and reflected a $3.6 million gain on sale of OREO properties, partially offset by a $1.8 million increase in provision for credit losses and a $1.3 million decline in net interest income due to lower market rates.

Return on average assets was 1.82% and return on average equity was 17.59% for the quarter, placing the Bank in the top echelon of its peers. The net interest margin contracted to 3.74% from 3.92% in Q3, driven by Federal Reserve rate cuts, while the efficiency ratio widened to 31.2% from 28.7% as higher OREO-related expenses weighed on noninterest expense.

Total loans increased by $182.3 million (3.1%) and total deposits rose by $115.8 million (1.9%) on a linked-quarter basis, translating into annualized growth rates of 12.4% and 7.4%, respectively. For the full year, loans grew by $413.6 million and deposits by $428.6 million, supporting a 9.8% increase in total assets to $7.60 billion.

Nonperforming assets decreased following OREO sales, but criticized assets climbed by $97.5 million due to the classification of a large relationship. The allowance for credit losses coverage ratio rose to 1.30% of loans. Tangible capital and common equity tier 1 ratios stood at 10.38% and 11.26% respectively, reflecting a strong capital base to support continued growth and shareholder distributions.