Preferred Bank (NASDAQ:PFBC) reported GAAP net income of $32.8 million, or $2.52 per share, in Q2 2025, a sequential increase driven by approximately 7% annualized loan growth and net interest margin (NIM) expanded to 3.85%. Key developments included a $56 million share repurchase at approximately $80.81 per share, stable deposit levels, improved asset quality, and early signs of rising loan demand heading into Q3.
During the second quarter, the company executed a $56 million share buyback at an average repurchase price of $80.81 per share, substantially below the current market price of $97.03. Following the May shareholder meeting, management secured authorization for an additional $125 million buyback program, though this has not yet commenced due to valuation sensitivity.
This disciplined approach to capital return signals management’s willingness to deploy significant excess capital opportunistically, while preserving flexibility and adhering to valuation thresholds that enhance per-share value creation.