The following is a summary of the Preferred Bank (PFBC) Q2 2024 Earnings Call Transcript:
Financial Performance:
Preferred Bank reported Q2 2024 net income of $33.6 million, or $2.48 per share.
The bank witnessed an annualized loan growth of 8% and deposit growth of 5%.
There was a charge-off of $9 million, primarily related to fully reserved loans from the previous quarter.
Business Progress:
Preferred Bank implemented a stock buyback program, repurchasing $72.5 million of common stock and aiming for reapproval to buy back the remaining $77.5 million.
The bank maintains a steady course in non-interest expense and income, with no significant future changes anticipated.
Efforts to decrease asset sensitivity of the balance sheet are nearing optimal levels.
Opportunities:
Potential interest rate relief is anticipated, which is expected not to significantly affect future income statements.
Risks:
There was an increase in non-performing loans by $22 million, though deemed fully reserved or adequately collateralized.
Concerns over managing the transition from floating to fixed-rate loans in a fluctuating interest rate environment.
More details: Preferred Bank IR
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