Preferred Bank Announces Dividend Increase
Rhea-AI Summary
Preferred Bank (NASDAQ: PFBC) said its Board increased the annual cash dividend to $3.20 per share from $3.00, a 6.7% raise. The dividend is payable on January 20, 2026 to shareholders of record on January 6, 2026. This change updates the prior annual payout and sets the next payment timetable for PFBC shareholders.
Positive
- Annual dividend increased to $3.20 per share
- Dividend rise equals a 6.7% increase from prior rate
- Payable on January 20, 2026 to record holders on January 6, 2026
Negative
- Raise is a single-digit 6.7%, modest for some income investors
Key Figures
Market Reality Check
Peers on Argus
Regional bank peers like HOPE (+5.77%), BFC (+3.71%), PEBO (+3.47%), OBK (+3.13%), and WABC (+2.97%) also showed gains, but momentum scanners did not flag a coordinated sector move for PFBC.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 20 | Q3 2025 earnings | Positive | +1.5% | Record Q3 results with strong profitability and loan and deposit growth. |
| Oct 06 | Earnings call notice | Neutral | -1.3% | Announcement of Q3 2025 results release date and conference call details. |
| Sep 17 | Cash dividend | Positive | +0.4% | Quarterly cash dividend of <b>$0.75</b> per share with defined record and pay dates. |
| Jul 21 | Q2 2025 earnings | Positive | +4.8% | Q2 2025 net income of <b>$32.8M</b> and higher net interest margin. |
| Jul 03 | Earnings call notice | Neutral | +0.1% | Scheduling of Q2 2025 earnings release and investor conference call. |
Earnings and dividend-related headlines have typically seen modest positive price reactions, while scheduling conference calls has had minimal impact.
Over the last six months, Preferred Bank reported record Q3 2025 results with net income of $35.9M and diluted EPS of $2.84, following solid Q2 2025 earnings with net income of $32.8M. The bank also maintained a regular dividend, including a $0.75 per share cash dividend announced on Sep 17, 2025. Earnings release and conference call notices in July and October had only small price effects. Today’s dividend increase builds on this pattern of consistent capital returns alongside strong profitability.
Market Pulse Summary
This announcement raised Preferred Bank’s annual cash dividend to $3.20 per share from $3.00, a 6.7% increase payable on Jan 20, 2026 to holders of record on Jan 6, 2026. It builds on record Q3 2025 earnings and a pattern of prior dividend increases. Investors may monitor how sustainably earnings support this higher payout and whether future results and credit quality metrics continue to underpin capital return.
AI-generated analysis. Not financial advice.
LOS ANGELES, Dec. 11, 2025 (GLOBE NEWSWIRE) -- Preferred Bank (NASDAQ: PFBC), one of the larger independent commercial banks in California, today reported that the Board of Directors has increased the annual cash dividend to
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)), two branches in New York (Manhattan and Flushing, Queens) and a branch office in the Houston, Texas suburb of Sugar Land. In addition, the Bank also 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 dividend did Preferred Bank (PFBC) announce on December 11, 2025?
When is the PFBC dividend payable and who is eligible?
How much did Preferred Bank (PFBC) increase its dividend by?
Does the PFBC announcement change dividend frequency for 2026?
How should PFBC shareholders prepare for the January 20, 2026 payment?
Will the PFBC dividend increase affect share dilution?
