Preferred Bank Announces Approval of Stock Repurchase and Cash Dividend

Rhea-AI Summary

Preferred Bank (PFBC) has received regulatory approval for its $125 million stock repurchase plan, with an initial $50 million tranche approved for open market purchases. The bank's Board of Directors also declared a quarterly cash dividend of $0.75 per share, payable on July 22, 2025, to shareholders of record as of July 8, 2025. As a non-SEC registrant, Preferred Bank required specific regulatory approval for the buyback program. Chairman and CEO Li Yu emphasized the bank's strong balance sheet and superior profitability metrics as enabling factors for the stock repurchase initiative, highlighting their commitment to delivering shareholder value.

Positive

• Substantial $125 million stock repurchase program approved with initial $50 million tranche
• Quarterly dividend of $0.75 per share maintained
• Strong balance sheet and superior profitability metrics reported by CEO
• Dual shareholder return through both buybacks and dividends

Negative

• None.

News Market Reaction

+4.84%

1 alert

+4.84% News Effect

On the day this news was published, PFBC gained 4.84%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

LOS ANGELES, June 23, 2025 (GLOBE NEWSWIRE) -- Preferred Bank (NASDAQ: PFBC), one of the largest independent commercial banks in California, today reported that the Board of Directors has received regulatory approval to implement its recently announced $125 million stock repurchase plan which was approved by shareholders in May. Preferred Bank is not a Securities & Exchange Commission (“SEC”) registrant, therefore the Bank requires regulatory approval prior to repurchasing its own common stock. The Board of Directors has approved the first tranche of repurchases which will consist of $50 million in buybacks. The stock purchases will be made from time to time in the open market. In addition, the Board of Directors has declared a quarterly cash dividend to $0.75 per share, payable on July 22, 2025 to holders of record on July 8, 2025.

Li Yu, Chairman and CEO of Preferred Bank said, “We are pleased to be in a position to repurchase our own stock utilizing our strong balance sheet supplemented by our superior profitability metrics. We are focused on providing value to our shareholders and will continue to do so.”

About Preferred Bank

Preferred Bank is one of the larger independent commercial banks headquartered in California. The Bank is chartered by the State of California, and its deposits are insured by the Federal Deposit Insurance Corporation, or FDIC, to the maximum extent permitted by law. The Bank conducts its banking business from its main office in Los Angeles, California, and through twelve full-service branch banking offices in the California cities of Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine (2 branches), Diamond Bar, Pico Rivera, Tarzana and San Francisco (2 branches) and two branches in New York (Flushing and Manhattan) and one branch in the Houston suburb of Sugar Land, Texas. Additionally, the Bank operates a Loan Production Office in Sunnyvale, California. Preferred Bank offers a broad range of deposit and loan products and services to both commercial and consumer customers. The Bank provides personalized deposit services as well as real estate finance, commercial loans and trade finance to small and mid-sized businesses, entrepreneurs, real estate developers, professionals and high net worth individuals. Although originally founded as a Chinese-American Bank, Preferred Bank now derives most of its customers from the diversified mainstream market but does continue to benefit from the significant migration to California of ethnic Chinese from China and other areas of East Asia.

AT THE COMPANY: Edward J. Czajka Executive Vice President  Chief Financial Officer (213) 891-1188

AT FINANCIAL PROFILES: Jeffrey Haas General Information (310) 622-8240 PFBC@finprofiles.com

FAQ

What is the size of Preferred Bank's (PFBC) stock repurchase program?

Preferred Bank's stock repurchase program is $125 million in total, with an initial tranche of $50 million approved for implementation.

When will Preferred Bank (PFBC) pay its next dividend?

Preferred Bank will pay a quarterly cash dividend of $0.75 per share on July 22, 2025, to shareholders of record as of July 8, 2025.

Why did Preferred Bank (PFBC) need regulatory approval for its buyback program?

Preferred Bank needed regulatory approval because it is not a Securities & Exchange Commission (SEC) registrant, which is required for banks to repurchase their own common stock.

How will Preferred Bank (PFBC) execute its stock repurchase program?

Preferred Bank will make stock purchases from time to time in the open market.

What is the significance of PFBC's buyback and dividend announcement for shareholders?

The announcement demonstrates Preferred Bank's commitment to shareholder value through both stock repurchases and dividend payments, supported by their strong balance sheet and profitability.