Preferred Bank Announces Approval to Continue Share Repurchase Plan

Rhea-AI Summary

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.

Positive

• Significant buyback program of $150 million demonstrates strong capital position
• Already executed $84.3 million in repurchases, showing commitment to shareholder returns
• Average purchase price of $63.94 per share indicates disciplined capital deployment

Negative

• Regulatory approval requirement adds complexity to capital management
• timeframe to execute remaining $65.7 million buyback (expires May 2025)

LOS ANGELES, March 18, 2025 (GLOBE NEWSWIRE) -- Preferred Bank (NASDAQ: PFBC), (“the Bank”), an independent commercial bank, today announced that the Bank has received regulatory approval to continue its shareholder-approved $150 million stock Repurchase Plan, (“the Plan”). Thus far in the Plan, the Bank has repurchased $84.3 million of its common stock during 2023 and 2024, however regulatory approval expired in January of 2025. As a state, non-member Bank that issues its common stock at the bank level (no holding company), Preferred Bank is required to seek regulatory approval to engage in transactions that either increase or decrease capital. The shareholder and regulatory approvals to repurchase the remaining $65.7 million of common stock will expire in May of 2025.

During this repurchase program, the Bank has repurchased 1.3 million shares at an average price of $63.94 per share. Stock repurchases under this Plan will be made in the open market.

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 California (Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine (2), Diamond Bar, Pico Rivera, Tarzana and San Francisco (2)). The Bank also operates a branch in Flushing, New York and in the Houston suburb of Sugar Land, Texas as well as 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

How much remains in Preferred Bank's (PFBC) stock repurchase plan as of March 2025?

$65.7 million remains available for repurchases through May 2025

What is the average price per share PFBC paid in its current buyback program?

Preferred Bank paid an average of $63.94 per share, repurchasing 1.3 million shares

When does Preferred Bank's (PFBC) current stock repurchase authorization expire?

The shareholder and regulatory approvals expire in May 2025

How much has PFBC spent on share repurchases in 2023-2024?

The bank has repurchased $84.3 million worth of common stock during 2023 and 2024