D.A. Davidson & Co. Updates Model For Preferred Bank Following 2Q Results

In a report published Monday, D.A. Davidson & Co. analyst Gary P. Tenner reiterated a Buy rating and $27.00 price target on Preferred Bank PFBC. In the report, D.A. Davidson & Co. noted, “In the company's 10-Q filed this morning PFBC reduced its net OREO expense from a gain of $715,000 to a gain of $1.15 million. The net positive change of $435,000 resulted from a post-quarter offer on the company's last remaining OREO that exceeded the value at which PFBC was carrying the property. Management decided to make the adjustment to 2Q results rather than record the incremental gain in the third quarter. The increased OREO gain added $0.02 to EPS for the quarter.” Preferred Bank closed on Friday at $23.09.