Dj Preferred Bank, Inst Holders, 3Q 2025 (Pfbc)

What Happened?

A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official boosted hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Regional Banks company United Community Banks jumped 3.5%. Is now the time to buy United Community Banks? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Preferred Bank jumped 3.4%. Is now the time to buy Preferred Bank? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Popular jumped 3.4%. Is now the time to buy Popular? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Hilltop Holdings jumped 3.3%. Is now the time to buy Hilltop Holdings? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company First Bancorp jumped 3.4%. Is now the time to buy First Bancorp? Access our full analysis report here, it’s free for active Edge members.

Zooming In On United Community Banks (UCB)

United Community Banks’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was about 1 month ago when the stock dropped 5.7% on the news that disclosures from two lenders raised concerns about deteriorating loan quality across the industry. The drop was triggered by specific incidents that have spooked investors. Zions Bancorp announced a $50 million charge-off—a debt the bank doesn't expect to collect—on a single loan. Separately, Western Alliance Bancorp revealed it was dealing with a borrower who had failed to provide proper collateral. These events are compounding existing anxieties about the regional banking sector, which is already under pressure from elevated interest rates and declining commercial real estate values. The news heightened investor concerns that more cracks could appear in borrowers' creditworthiness, potentially leading to increased loan losses and reduced profitability for other banks in the sector.

United Community Banks is down 3.2% since the beginning of the year, and at $30.54 per share, it is trading 12% below its 52-week high of $34.68 from November 2024. Investors who bought $1,000 worth of United Community Banks’s shares 5 years ago would now be looking at an investment worth $1,214.

Looking back on regional banks stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Preferred Bank and its peers.

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 94 regional banks stocks we track reported a satisfactory Q3. As a group, revenues missed analysts’ consensus estimates by 1.1%.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Preferred Bank

Founded in 1991 with a focus on serving the Pacific Rim community in Southern California, Preferred Bank is a commercial bank that provides banking products and services to small and mid-sized businesses, entrepreneurs, real estate developers, and high net worth individuals.

Preferred Bank reported revenues of $74.98 million, up 3.7% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ net interest income estimates.

Li Yu, Chairman and CEO, commented, “We are pleased to report a quarterly record for diluted earnings per share of $2.84 for the third quarter of 2025. Net income for the quarter was $35.9 million.

Interestingly, the stock is up 6% since reporting and currently trades at $91.29.

Is now the time to buy Preferred Bank? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Customers Bancorp

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $232.1 million, up 38.5% year on year, outperforming analysts’ expectations by 7%. The business had a stunning quarter with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

The market seems content with the results as the stock is up 3.1% since reporting. It currently trades at $67.60.

Is now the time to buy Customers Bancorp? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: The Bancorp

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.6 million, up 38.8% year on year, falling short of analysts’ expectations by 10%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.

As expected, the stock is down 18.6% since the results and currently trades at $62.69.

Read our full analysis of The Bancorp’s results here.

German American Bancorp

Founded in 1910 during a wave of community banking expansion in the Midwest, German American Bancorp is a financial holding company that provides banking, wealth management, and insurance services across southern Indiana and Kentucky.

German American Bancorp reported revenues of $94.15 million, up 50.9% year on year. This result topped analysts’ expectations by 3.6%. It was a strong quarter as it also put up an impressive beat of analysts’ tangible book value per share estimates and a solid beat of analysts’ revenue estimates.

The stock is up 1.5% since reporting and currently trades at $39.82.

Read our full, actionable report on German American Bancorp here, it’s free for active Edge members.

City Holding

With roots dating back to 1957 and a strategic presence along the I-64 and I-81 corridors, City Holding (NASDAQGS:CHCO) operates as a financial holding company providing banking, trust, and investment services through its subsidiary City National Bank across West Virginia, Kentucky, Virginia, and Ohio.

City Holding reported revenues of $81.26 million, up 7% year on year. This print surpassed analysts’ expectations by 2%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ tangible book value per share estimates and a beat of analysts’ EPS estimates.

The stock is flat since reporting and currently trades at $120.10.

Read our full, actionable report on City Holding here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Check out the companies making headlines yesterday:

RTX : Aerospace and defense company Raytheon rose by 9.5% on Tuesday after the company reported strong third-quarter 2025 results that beat expectations and raised its full-year financial forecast. See our full article here.

Is now the time to buy RTX? Access our full analysis report here.

Construction Partners : Civil infrastructure company Construction Partners rose by 3.9% on Tuesday after the company announced it acquired P&S Paving, Inc., a move that expanded its operations into Daytona Beach and Florida's East Coast. See our full article here.

Is now the time to buy Construction Partners? Access our full analysis report here.

Hologic : Medical technology company Hologic rose by 3.1% on Tuesday after the company announced it agreed to be acquired by private equity firms Blackstone and TPG in a deal that takes the company private. See our full article here.

Is now the time to buy Hologic? Access our full analysis report here.

Preferred Bank : Commercial banking company Preferred Bank rose by 3.9% on Tuesday after the company reported third-quarter results that surpassed Wall Street expectations. See our full article here.

Is now the time to buy Preferred Bank? Access our full analysis report here.

Carvana : Online used car dealer Carvana rose by 2.7% on Tuesday after JPMorgan raised its price target on the stock to $490 from $425, and the company launched same-day vehicle delivery in San Diego. See our full article here.

Is now the time to buy Carvana? Access our full analysis report here.