Preferred Bank

Preferred Bank announced that its Board of Directors has declared a quarterly cash dividend of $0.80 per share. This dividend is scheduled to be paid on July 21, 2026, to shareholders who are on record as of July 7, 2026. The declaration reflects the bank's commitment to returning value to its shareholders.

Preferred Bank announced a settlement agreement on a commercial & industrial loan that was previously charged off in the second quarter of 2024. The agreement stipulates that the bank will receive a total of $5.7 million over an eleven-month period. This recovery positively impacts the bank's financial position.

Preferred Bank reported net income of $31.1 million, or $2.53 per diluted share, for the first quarter of 2026. This represents a $3.7 million decrease from the prior quarter, primarily due to a $4.7 million drop in net interest income from nonaccrual loans and a $3.8 million decrease in noninterest income. The bank's non-performing assets significantly increased to $172.1 million, though management noted progress in resolving these loans, including sales post-quarter end. Loans and deposits showed growth, increasing by 1.1% and 1.2% respectively.

Preferred Bank announced that Kroll Bond Rating Agency (KBRA) affirmed its credit ratings, including A- for deposit and senior unsecured debt, BBB+ for subordinated debt, and K2 for short-term ratings. The outlook for the long-term ratings remains Stable. KBRA cited the Bank's consistently strong profitability, highlighted by a 2025 ROA of 1.84%, a high-yielding loan portfolio, and a lean cost structure as key factors for the affirmation. This positive rating reflects the bank's solid financial health and operational efficiency.