It's A Bit Premature To Downgrade Preferred Bank

Preferred Bank receives a reaffirmed soft "Buy" rating, though recent net interest margin declines temper enthusiasm. PFBC's net interest margin fell to 3.74%, with loan yields dropping as adjustable-rate loans reprice lower amid declining rates. Asset quality remains robust, with return on assets at 1.82% and return on equity at 17.59%, both above peer averages.