Los Angeles-Based Lender Defies Industry Headwinds with Strong Dividend and Earnings

While numerous regional financial institutions struggle under the weight of elevated interest rates, Preferred Bank of Los Angeles is demonstrating remarkable resilience. The bank has reported surprisingly robust quarterly earnings and maintained a solid dividend, effectively navigating a complex economic landscape. The central question for investors is whether this performance is sustainable.

The foundation for the bank’s current optimism was laid by its second-quarter 2025 results. Preferred Bank reported a net income of $32.8 million, which translates to $2.52 per diluted share. This performance not only surpassed analyst expectations of $2.43 per share but also showed sequential improvement over the previous quarter.

A particularly significant metric was the expansion of the net interest margin, which increased to 3.85% from 3.75%. This improvement indicates effective... Read more...