Preferred Bank reports news as an independent commercial bank serving commercial and consumer customers through deposit products, real estate finance, commercial loans and trade finance. The California-chartered bank operates from its Los Angeles main office with branch banking offices in California, New York and Texas, and a loan production office in Sunnyvale, California.
Recurring updates for PFBC include quarterly earnings, net interest income and margin trends, loan and deposit balances, provision and credit-quality developments, capital ratios, cash dividends and third-party credit ratings. Company announcements also address classified or nonaccrual loan relationships, OREO activity and the performance drivers of its commercial banking portfolio.
Preferred Bank (PFBC) has announced a new $125 million stock repurchase plan following shareholder approval. The bank recently completed its previous $150 million buyback program from 2023, where it repurchased 2,146,252 shares at an average price of $70.13 per share. The final portion of the previous program involved buying back 818,059 shares for $65.7 million during Q1 and Q2 2025.
The new buyback program requires regulatory approval due to the bank's structure without a holding company. CEO Li Yu cited slowing organic growth and high profitability leading to increasing capital ratios as reasons for the buyback, viewing it as an effective use of excess capital and a way to return value to shareholders.
Preferred Bank (NASDAQ: PFBC), a major independent commercial bank in California, has appointed Nick Pi as Executive Vice President and Chief Risk Officer. Pi, who has served as the Bank's Chief Credit Officer since 2015, will maintain his oversight of the credit function while expanding his responsibilities to include supervision of the BSA and Compliance Departments. Chairman and CEO Li Yu emphasized Pi's strong leadership in Credit Administration and views this appointment as a significant step in enhancing the bank's enterprise risk oversight.
Preferred Bank (PFBC) reported Q1 2025 net income of $30.0 million or $2.23 per diluted share, showing a slight decrease of $197,000 from the previous quarter and $3.4 million year-over-year. The decline was primarily attributed to reduced net interest income, which fell to $62.7 million, down $6.5 million quarter-over-quarter.
Key impacts included $2.8 million in reversed interest income from nonaccrual loans and $208,000 from a fire-damaged property loan. Total deposits increased by $155.9 million (2.6%) to $6.07 billion, while gross loans slightly decreased to $5.63 billion. The bank's net interest margin declined to 3.75% from 4.06% in the previous quarter.
Notable metrics include:
- Return on average assets: 1.76%
- Return on beginning equity: 15.96%
- Efficiency ratio: 35.1%
- Total capital ratio: 15.15%
Preferred Bank (PFBC), a major independent commercial bank in California, has scheduled its 2025 first quarter earnings release for Friday, April 25, 2025, before market open. The bank will host a conference call the same day at 2:00 p.m. Eastern time to discuss financial results for the quarter ended March 31, 2025.
Key executives participating in the call include Chairman and CEO Li Yu, President and COO Wellington Chen, CFO Edward J. Czajka, Chief Credit Officer Nick Pi, and Deputy COO Johnny Hsu. Investors can join via phone (844-826-3037 domestic, 412-317-5182 international) or webcast through Preferred Bank's website. A replay will be available until May 2, 2025.
Preferred Bank (NASDAQ: PFBC), a leading independent commercial bank in California, has announced a quarterly cash dividend of $0.75 per share. The dividend will be paid on April 21, 2025 to shareholders of record as of April 7, 2025.
Preferred Bank (NASDAQ: PFBC) has received regulatory approval to continue its $150 million stock repurchase plan through May 2025. The bank has already repurchased $84.3 million of common stock during 2023-2024, acquiring 1.3 million shares at an average price of $63.94 per share. The remaining $65.7 million in repurchases will be executed through open market transactions.
As a state, non-member bank issuing stock at the bank level, PFBC requires regulatory approval for capital-affecting transactions. The bank operates primarily in California through twelve full-service branches, with additional locations in New York, Texas, and a loan production office in Sunnyvale, California.
Preferred Bank (NASDAQ: PFBC) has announced a significant donation for fire relief efforts in Los Angeles. The Board of Directors has approved a $250,000 donation to be distributed among four organizations: Tzu-Chi – USA, Pasadena Community Foundation, Alliance for a Better Community, and Los Angeles Fire Department Foundation.
The Bank will also match any employee contributions made to wildfire relief efforts on top of the initial donation. Chairman and CEO Li Yu emphasized that the recent wildfires in Southern California have significantly impacted their associates, clients, and communities.
Preferred Bank operates primarily in California with twelve full-service branch banking offices, along with branches in Flushing, New York, and Sugar Land, Texas. The bank provides commercial and consumer banking services, including deposit services, real estate finance, and commercial loans.
Preferred Bank (PFBC) reported Q4 2024 net income of $30.2 million ($2.25 per diluted share), showing decreases of $3.2 million from Q3 and $5.6 million year-over-year. The decline was primarily due to a one-time $8.1 million increase in occupancy expense from an ASC 842 lease calculation error.
Q4 highlights include a 1.74% return on average assets, 16.03% return on beginning equity, and a 4.06% net interest margin. Total loans increased by $71 million (1.3%) in Q4. For full-year 2024, the bank achieved net income of $130.7 million ($9.64 per diluted share), with return on assets of 1.91% and return on beginning equity of 18.8%.
The bank's credit metrics improved with non-performing loans decreasing by $10.0 million (52%) and criticized loans decreasing by $76.7 million (32.6%). The quarterly dividend increased from $0.70 to $0.75, and the bank repurchased 464,314 shares for $34.3 million during 2024.
Preferred Bank (PFBC), a major independent commercial bank in California, has announced it will release its Q4 2024 financial results after market close on January 27, 2025. The bank will host a conference call on January 28, 2025, at 2:00 p.m. Eastern time to discuss the results.
The conference call will be accessible via phone (844-826-3037 domestic, 412-317-5182 international) and through a live webcast on the bank's website. Key executives, including CEO Li Yu, President Wellington Chen, CFO Edward J. Czajka, CCO Nick Pi, and Deputy COO Johnny Hsu, will present financial results and business highlights. A replay will be available until February 11, 2025, through both the website and phone (passcode: 6335378).