PFBC Earnings Prediction
The chart below shows how PFBC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PFBC sees a -3.38% change in stock price 10 days leading up to the earnings, and a -0.83% change 10 days following the report. On the earnings day itself, the stock moves by +0.42%. This data can give you a slight idea of what to expect for the next quarter's release.
PFBC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
72.02M
1.42%
0.53%
Gross Margin
--
--
--
Operating Margin
59.31%
-16.46%
-13.16%
Net Margin
41.96%
-16.86%
-9.96%
EPS
2.25
-13.46%
-8.54%
No Data Available
PFBC Earnings Analysis
Preferred Bank Corporation (PFBC.O) Earnings Conference Call
Positive
Strong Profitability Metrics: Net income for the year reached $131 million, translating to a return on assets of 19.1% and a return on equity of 18.8%, outperforming industry averages.
Loan and Deposit Growth: Loan growth for the year was 7%, while deposit growth was 3.6%, aligning with industry trends despite a slow growth environment.
Credit Quality Improvement: Non-performing loans decreased by 50%, from $20 million to $10 million, indicating significant improvement in credit quality.
Dividend Increase Announcement: The Board announced an increase in dividends from $0.70 to $0.75 per share, reflecting confidence in the bank's financial health.
Tangible Book Value Increase: Tangible book value per common share improved from $50.54 to $57.86, showcasing strong capital growth.
Negative
Net Income Analysis: Net income for the year was $3,030,000, or $2.25 per share, negatively impacted by a non-recurring rental expense adjustment of $810,000, which equated to approximately $0.42 on an after-tax basis.
Moderate Loan and Deposit Growth: Loan growth for the year was only 7%, and deposit growth was 3.6%, both considered moderate compared to previous years and indicative of a slow growth environment in the banking industry.
Loan Growth Challenges: The bank experienced elevated payoff activity, which has hindered loan growth, with the origination remaining consistent but overall activity levels being lower than desired.
Projected Non-Interest Expenses: Non-interest expenses are projected to be around $23,000,000 for the upcoming year, with increased costs anticipated due to higher payroll taxes and legal expenses, indicating potential pressure on profitability.
Allowance Ratio Concerns: The allowance ratio has been decreasing throughout 2024, raising concerns about the adequacy of reserves in light of ongoing economic pressures and potential impacts from external factors such as the recent Los Angeles wildfires.
PFBC FAQs
How does PFBC typically perform around its earnings report dates?
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PFBC Earning Call Sentiment
Earnings call transcript: Preferred Bank Q4 2024 misses EPS forecast, stock rises
PFBC.O
0.84%Positive
The earnings call presents a mixed picture: strong financial metrics, such as improved leverage capital ratio and reduced non-performing loans, are offset by moderate loan growth and cautious management responses in the Q&A. The dividend increase and share repurchase are positives, but market conditions and lack of demand for new loans are concerns. Overall, the sentiment appears balanced, suggesting a neutral stock price movement.
