Preferred Bank Announces Stock Buyback
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 (PFBC) ha annunciato un nuovo piano di riacquisto di azioni da 125 milioni di dollari dopo l'approvazione degli azionisti. La banca ha recentemente completato il precedente programma di riacquisto da 150 milioni di dollari del 2023, durante il quale ha riacquistato 2.146.252 azioni a un prezzo medio di 70,13 dollari per azione. L'ultima fase del programma precedente ha comportato il riacquisto di 818.059 azioni per 65,7 milioni di dollari nel primo e secondo trimestre del 2025.
Il nuovo programma di riacquisto necessita di approvazione regolamentare a causa della struttura della banca senza una holding. L'amministratore delegato Li Yu ha citato il rallentamento della crescita organica e l'alta redditività che porta a un aumento dei coefficienti patrimoniali come motivazioni per il riacquisto, considerandolo un uso efficace del capitale in eccesso e un modo per restituire valore agli azionisti.
Preferred Bank (PFBC) ha anunciado un nuevo plan de recompra de acciones por 125 millones de dólares tras la aprobación de los accionistas. El banco completó recientemente su anterior programa de recompra de 150 millones de dólares de 2023, en el que recompró 2.146.252 acciones a un precio promedio de 70,13 dólares por acción. La última parte del programa anterior consistió en recomprar 818.059 acciones por 65,7 millones de dólares durante el primer y segundo trimestre de 2025.
El nuevo programa de recompra requiere la aprobación regulatoria debido a la estructura del banco sin una empresa holding. El CEO Li Yu mencionó la desaceleración del crecimiento orgánico y la alta rentabilidad que conduce a un aumento de los ratios de capital como razones para la recompra, viéndola como un uso efectivo del capital excedente y una forma de devolver valor a los accionistas.
Preferred Bank (PFBC)는 주주 승인 후 새로운 1억 2,500만 달러 규모의 자사주 매입 계획을 발표했습니다. 은행은 최근 2023년의 이전 1억 5,000만 달러 규모 자사주 매입 프로그램을 완료했으며, 평균 주당 가격 70.13달러에 2,146,252주를 매입했습니다. 이전 프로그램의 마지막 부분에서는 2025년 1분기와 2분기에 65.7백만 달러를 들여 818,059주를 매입했습니다.
새로운 자사주 매입 프로그램은 지주회사 없는 은행 구조로 인해 규제 승인이 필요합니다. CEO 리 유는 유기적 성장 둔화와 높은 수익성이 자본 비율 상승으로 이어져 자사주 매입의 이유가 되었으며, 이를 초과 자본의 효율적 활용과 주주 가치 환원 방법으로 보고 있다고 밝혔습니다.
Preferred Bank (PFBC) a annoncé un nouveau plan de rachat d'actions de 125 millions de dollars suite à l'approbation des actionnaires. La banque a récemment terminé son précédent programme de rachat de 150 millions de dollars de 2023, au cours duquel elle a racheté 2 146 252 actions à un prix moyen de 70,13 dollars par action. La dernière partie du programme précédent comprenait le rachat de 818 059 actions pour 65,7 millions de dollars au cours des premier et deuxième trimestres 2025.
Le nouveau programme de rachat nécessite une approbation réglementaire en raison de la structure de la banque sans société holding. Le PDG Li Yu a cité le ralentissement de la croissance organique et la forte rentabilité conduisant à une augmentation des ratios de capital comme raisons du rachat, le considérant comme une utilisation efficace des capitaux excédentaires et un moyen de restituer de la valeur aux actionnaires.
Preferred Bank (PFBC) hat nach Zustimmung der Aktionäre einen neuen Aktienrückkaufplan in Höhe von 125 Millionen US-Dollar angekündigt. Die Bank hat kürzlich ihr vorheriges 150-Millionen-Dollar-Rückkaufprogramm aus dem Jahr 2023 abgeschlossen, bei dem 2.146.252 Aktien zu einem Durchschnittspreis von 70,13 US-Dollar pro Aktie zurückgekauft wurden. Der letzte Teil des vorherigen Programms umfasste den Rückkauf von 818.059 Aktien für 65,7 Millionen US-Dollar im ersten und zweiten Quartal 2025.
Das neue Rückkaufprogramm erfordert aufgrund der Struktur der Bank ohne Holdinggesellschaft eine behördliche Genehmigung. CEO Li Yu nannte das verlangsamte organische Wachstum und die hohe Rentabilität, die zu steigenden Kapitalquoten führen, als Gründe für den Rückkauf und sieht diesen als eine effektive Nutzung überschüssigen Kapitals und eine Möglichkeit, den Aktionären Wert zurückzugeben.
- New $125 million stock buyback program approved by shareholders
- Successfully completed previous $150 million buyback program
- High level of profitability leading to increasing capital ratios
- Effective use of excess capital to return value to shareholders
- Organic growth has slowed
- New buyback requires regulatory approval before implementation
- No holding company structure adds regulatory complexity
LOS ANGELES, May 22, 2025 (GLOBE NEWSWIRE) -- Preferred Bank (NASDAQ: PFBC), one of the largest independent commercial banks in California, today reported that the shareholders have approved a new
For the new
Chairman and CEO Li Yu stated, “As organic growth has slowed, the Bank’s capital ratios will continue to climb due to our high level of profitability. In this setting, buying back our common stock is a great use of the Bank’s excess capital and an indirect way of returning capital to our shareholders.”
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
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