Preferred Bank (PFBC) 10-Year Financial Performance & Capital Metrics

PFBC • • Banking & Credit

Financial ServicesRegional BanksCommercial & Business BankingCommercial & Corporate Banking

AboutPreferred Bank provides various commercial banking products and services to small and mid-sized businesses and their owners, entrepreneurs, real estate developers and investors, professionals, and high net worth individuals in the United States. The company accepts checking, savings, and money market deposit accounts; fixed-rate and fixed maturity retail, and non-retail certificates of deposit; and individual retirement accounts. It also provides real estate mortgage loans that are secured by retail, industrial, office, special purpose, and residential single and multi-family properties; real estate construction loans; and commercial loans comprising lines of credit for working capital, term loans for capital expenditures, and commercial and stand-by letters of credit; and SBA loans. In addition, the company offers trade finance services, including commercial and export letters of credit, import lines of credit, documentary collections, international wire transfers, acceptances/trust receipt financing products, export financing, documentary collections, and bills purchase programs. Further, it provides various high-wealth banking services to wealthy individuals residing in the Pacific Rim area; and remote deposit capture, and online and mobile banking services. Additionally, the company offers various banking services to physicians, accountants, attorneys, business managers, and other professionals; and safe deposit boxes, account reconciliation, courier service, and cash management services to the manufacturing, service, and distribution companies. As of December 31, 2021, it had eleven full-service branch offices in Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine, Diamond Bar, Pico Rivera, Tarzana, and San Francisco; and one branch in Flushing, New York. The company was incorporated in 1991 and is headquartered in Los Angeles, California.Show more

Net Interest Income $273M -5.8%
Total Revenue $520M +8.0%
Net Income $131M -12.9%
Return on Equity 17.92% -20.8%
Net Interest Margin 3.94% -9.4%
Efficiency Ratio 16.88% +10.9%
ROA 1.92% -16.1%
Equity / Assets 11.02% +5.6%
Book Value per Share 56.30 +15.5%
Tangible BV/Share 56.30 +15.5%
Debt/Equity 0.22 -10.3%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 20.6%
✓Strong NIM of 3.9%
✓Efficient operations: 16.9% efficiency ratio
✓Well capitalized: 11.0% equity/assets
✓Healthy dividend yield of 2.8%
✓Share count reduced 5.0% through buybacks

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y19.86%

5Y17.44%

3Y33.49%

TTM-

Profit (Net Income) CAGR

10Y18.18%

5Y10.76%

3Y11.12%

TTM-10.36%

EPS CAGR

10Y18.42%

5Y13.34%

3Y14.61%

TTM-7.04%

ROCE

10Y Avg18.24%

5Y Avg19.17%

3Y Avg21.27%

Latest19.13%

Peer Comparison

Commercial & Corporate Banking

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
TCBITexas Capital Bancshares, Inc.	4.49B	98.37	76.85	-1.72%	4.4%	7.92%	9.27%	0.46
BANCBanc of California, Inc.	3.15B	20.87	40.13	24.65%	6.78%	6.01%	2.04%	0.67
DBDeutsche Bank AG	74.26B	38.87	28.37	11.78%	5.07%	7.18%		1.91
HTHHilltop Holdings Inc.	2.2B	35.83	20.59	2.5%	7.35%	7.2%	12.14%	0.61
SFBSServisFirst Bancshares, Inc.	4.28B	78.31	18.82	17.89%	23.26%	14.33%	5.8%	1.27
CMAComerica Incorporated	11.69B	91.51	18.23	-4.95%	13.98%	10.57%	3.83%	1.02
BOKFBOK Financial Corporation	8.08B	127.69	15.69	10.4%	15.57%	8.91%	15.59%	0.80
CNOBConnectOne Bancorp, Inc.	1.37B	27.26	15.49	6.06%	13.8%	3.98%	4.15%	0.63

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Net Interest Income+	83.85M	104.18M	129.7M	154.23M	164.64M	174.15M	185.88M	247.36M	289.37M	272.63M
NII Growth %	0.18%	0.24%	0.25%	0.19%	0.07%	0.06%	0.07%	0.33%	0.17%	-0.06%
Net Interest Margin %	-	-	-	-	-	-	-	-	-	-
Interest Income	94.7M	122.91M	157.6M	195.16M	226.72M	214.26M	211.03M	294.38M	477.99M	509.1M
Interest Expense	10.86M	18.73M	27.9M	40.94M	62.08M	40.11M	25.16M	47.02M	188.61M	236.47M
Loan Loss Provision	1.8M	6.4M	5.5M	10.13M	3.45M	26M	-1M	7.35M	10M	12.1M
Non-Interest Income+	4.37M	4.63M	5.26M	8.79M	6.25M	6.06M	7.74M	7.04M	3.77M	11.33M
Non-Interest Income %	-	-	-	-	-	-	-	-	-	-
Total Revenue+	99.07M	127.55M	162.86M	203.95M	232.97M	220.32M	218.78M	301.43M	481.76M	520.43M
Revenue Growth %	0.16%	0.29%	0.28%	0.25%	0.14%	-0.05%	-0.01%	0.38%	0.6%	0.08%
Non-Interest Expense	36.19M	42.71M	48.98M	54.19M	56.03M	57.35M	60.79M	67.86M	73.29M	87.83M
Efficiency Ratio	-	-	-	-	-	-	-	-	-	-
Operating Income+	50.23M	59.7M	80.48M	98.7M	111.41M	96.86M	133.83M	179.2M	210.63M	184.03M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	0.23%	0.19%	0.35%	0.23%	0.13%	-0.13%	0.38%	0.34%	0.18%	-0.13%
Pretax Income+	50.23M	59.7M	80.48M	98.7M	111.41M	96.86M	133.83M	179.2M	209.85M	184.03M
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	20.48M	23.33M	37.09M	27.7M	33.03M	27.39M	38.59M	50.35M	59.81M	53.37M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	29.74M	36.37M	43.39M	70.99M	78.37M	69.47M	95.24M	128.84M	150.04M	130.66M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	0.21%	0.22%	0.19%	0.64%	0.1%	-0.11%	0.37%	0.35%	0.16%	-0.13%
Net Income (Continuing)	29.74M	36.37M	43.39M	70.99M	78.37M	69.47M	95.24M	128.84M	150.04M	130.66M
EPS (Diluted)+	2.14	2.56	2.96	4.64	5.16	4.65	6.41	8.70	10.52	9.65
EPS Growth %	0.2%	0.2%	0.16%	0.57%	0.11%	-0.1%	0.38%	0.36%	0.21%	-0.08%
EPS (Basic)	2.17	2.58	2.97	4.64	5.16	4.65	6.41	8.84	10.64	9.80
Diluted Shares Outstanding	13.68M	13.99M	14.49M	15.06M	15.06M	14.88M	14.87M	14.81M	14.26M	13.55M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash & Short Term Investments+	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Cash & Due from Banks	296.18M	306.33M	446.82M	526.76M	498.64M	739.47M	1.03B	747.53M	890.85M	765.51M
Short Term Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	3K
Total Investments+	2.23B	2.75B	3.14B	3.53B	3.99B	4.28B	4.88B	5.51B	5.58B	5.99B
Investments Growth %	0.27%	0.24%	0.14%	0.13%	0.13%	0.07%	0.14%	0.13%	0.01%	0.07%
Long-Term Investments	2.06B	2.55B	2.95B	3.35B	3.75B	4.04B	4.43B	5.08B	5.27B	5.99B
Accounts Receivables	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Goodwill & Intangibles+	-	-	-	-	-	-	-	-	-	-
Goodwill	0	0	0	0	0	0	0	0	0	0
Intangible Assets	0	0	0	0	0	0	0	0	0	0
PP&E (Net)	5.6M	5.31M	5.68M	7.5M	29.34M	27.93M	32.5M	30.72M	31.74M	21.64M
Other Assets	39.73M	124.57M	145.67M	114.02M	74.45M	51.92M	58.27M	72M	66.69M	63.92M
Total Current Assets	474.1M	515.71M	649.03M	723.44M	757.61M	1B	1.5B	1.2B	1.24B	801.27M
Total Non-Current Assets	2.12B	2.71B	3.12B	3.49B	3.87B	4.14B	4.55B	5.23B	5.42B	6.12B
Total Assets+	2.6B	3.22B	3.77B	4.22B	4.63B	5.14B	6.05B	6.43B	6.66B	6.92B
Asset Growth %	0.27%	0.24%	0.17%	0.12%	0.1%	0.11%	0.18%	0.06%	0.04%	0.04%
Return on Assets (ROA)	0.01%	0.01%	0.01%	0.02%	0.02%	0.01%	0.02%	0.02%	0.02%	0.02%
Accounts Payable	1.92M	3.2M	3.83M	6.84M	3.32M	1.25M	715K	2.61M	16.12M	16.52M
Total Debt+	26.64M	129.76M	105.37M	100.39M	119.71M	118.02M	170.62M	168.94M	168M	165.46M
Net Debt	-269.54M	-176.57M	-341.45M	-426.37M	-378.94M	-621.45M	-859.99M	-578.58M	-722.85M	-600.06M
Long-Term Debt	26.64M	125.36M	105.36M	100.39M	99.21M	99.33M	147.76M	148M	148.23M	148.47M
Short-Term Debt	0	4.4M	8K	0	0	0	0	0	0	0
Other Liabilities	19.59M	23.65M	42.93M	52.87M	52.14M	56.45M	62.74M	66.38M	70.71M	61.45M
Total Current Liabilities	2.29B	2.77B	3.27B	3.65B	3.99B	4.44B	5.23B	5.56B	5.73B	5.93B
Total Non-Current Liabilities	46.22M	149.01M	148.29M	153.26M	171.85M	174.47M	233.36M	235.33M	238.71M	226.91M
Total Liabilities	2.33B	2.92B	3.41B	3.8B	4.16B	4.62B	5.46B	5.79B	5.96B	6.16B
Total Equity+	264.14M	298.06M	355.03M	416.65M	470.01M	525.45M	586.72M	630.43M	695.11M	763.15M
Equity Growth %	0.12%	0.13%	0.19%	0.17%	0.13%	0.12%	0.12%	0.07%	0.1%	0.1%
Equity / Assets (Capital Ratio)	-	-	-	-	-	-	-	-	-	-
Return on Equity (ROE)	0.12%	0.13%	0.13%	0.18%	0.18%	0.14%	0.17%	0.21%	0.23%	0.18%
Book Value per Share	19.31	21.31	24.50	27.67	31.21	35.30	39.47	42.57	48.74	56.30
Tangible BV per Share	-	-	-	-	-	-	-	-	-	-
Common Stock	166.56M	169.86M	207.95M	210.88M	210.88M	210.88M	210.88M	210.88M	210.88M	210.88M
Additional Paid-in Capital	34.67M	39.93M	39.46M	47.42M	55.17M	64.06M	73.17M	81.56M	86.83M	95.79M
Retained Earnings	81.05M	108.26M	139.68M	194.85M	255.05M	300.97M	372.95M	475.07M	592.33M	685.11M
Accumulated OCI	982K	-871K	1.17M	-1.98M	3.97M	7.03M	4.93M	-28.61M	-31.75M	-27.46M
Treasury Stock	-19.11M	-19.11M	-33.23M	-34.53M	-55.05M	-57.5M	-75.21M	-108.48M	-163.18M	-201.17M
Preferred Stock	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	28.24M	52.63M	53.18M	99.01M	86.76M	103.77M	119.63M	143.76M	175.39M	164.52M
Operating CF Growth %	-0.32%	0.86%	0.01%	0.86%	-0.12%	0.2%	0.15%	0.2%	0.22%	-0.06%
Net Income	29.74M	36.37M	43.39M	70.99M	78.37M	69.47M	95.24M	128.84M	150.04M	130.66M
Depreciation & Amortization	623K	929K	990K	953K	1.34M	1.91M	1.9M	1.89M	1.72M	2.15M
Deferred Taxes	-1.75M	-1.46M	7.78M	-934K	-2.19M	-3.74M	-1.39M	-3.47M	-4.54M	-87K
Other Non-Cash Items	2.22M	6.54M	6.25M	12.16M	8.91M	30.06M	1.46M	11.09M	23.41M	15.16M
Working Capital Changes	-5.75M	7.86M	-8.87M	7.81M	-7.43M	-2.83M	13.31M	-3M	-1.04M	7.43M
Cash from Investing+	-473.26M	-530.18M	-389.49M	-409.48M	-457.1M	-318.77M	-620.01M	-699.89M	-98.03M	-421.62M
Purchase of Investments	-30.94M	-67.46M	-15.37M	-28.99M	-126.46M	-185.35M	-281.89M	-119.93M	-72.56M	-60.63M
Sale/Maturity of Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Net Investment Activity	-	-	-	-	-	-	-	-	-	-
Acquisitions	3.12M	0	0	-13.99M	-10.38M	-8.42M	0	0	0	0
Other Investing	-450.93M	-487.72M	-396.67M	-380.06M	-380.58M	-304.85M	-387.83M	-662.65M	-190.09M	-383.27M
Cash from Financing+	514.01M	572.21M	487.81M	357.9M	303.48M	438.82M	791.52M	273.05M	65.97M	131.76M
Dividends Paid	-6.3M	-8.44M	-11.04M	-15.63M	-18.29M	-17.91M	-21.43M	-25.14M	-31.14M	-37.5M
Share Repurchases	0	0	-14.12M	-1.3M	-20.54M	-2.45M	-17.72M	-33.29M	-55.23M	-38.25M
Stock Issued	0	0	32.55M	1.71M	0	0	0	0	0	0
Net Stock Activity	-	-	-	-	-	-	-	-	-	-
Debt Issuance (Net)	1000K	1000K	-1000K	-1000K	-1000K	0	1000K	0	0	0
Other Financing	513.67M	480.12M	500.41M	378.15M	343.61M	459.19M	783.03M	331.49M	152.34M	207.51M
Net Change in Cash+	68.98M	94.66M	151.49M	47.44M	-67.11M	223.82M	291.14M	-283.08M	143.33M	-125.34M
Exchange Rate Effect	0	0	0	0	0	0	0	0	0	0
Cash at Beginning	240.19M	309.18M	403.83M	555.32M	602.76M	535.64M	759.47M	1.05B	767.53M	910.85M
Cash at End	309.18M	403.83M	555.32M	602.76M	535.64M	759.47M	1.05B	767.53M	910.85M	785.51M
Interest Paid	10.36M	17.45M	27.26M	37.93M	65.6M	42.19M	25.69M	45.13M	175.1M	236.07M
Income Taxes Paid	19.65M	19.16M	29.6M	18.4M	34.54M	20.91M	29.29M	43.67M	58.38M	46.33M
Free Cash Flow+	26.14M	51.98M	51.82M	96.25M	80.67M	102.27M	119.03M	143.4M	172.98M	163.6M
FCF Growth %	-0.37%	0.99%	-0%	0.86%	-0.16%	0.27%	0.16%	0.2%	0.21%	-0.05%

Banking Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	11.92%	12.94%	13.29%	18.4%	17.68%	13.96%	17.13%	21.17%	22.64%	17.92%
Return on Assets (ROA)	1.28%	1.25%	1.24%	1.78%	1.77%	1.42%	1.7%	2.07%	2.29%	1.92%
Net Interest Margin	3.23%	3.23%	3.44%	3.66%	3.56%	3.39%	3.07%	3.85%	4.35%	3.94%
Efficiency Ratio	36.53%	33.49%	30.08%	26.57%	24.05%	26.03%	27.79%	22.51%	15.21%	16.88%
Equity / Assets	10.16%	9.25%	9.42%	9.88%	10.15%	10.22%	9.7%	9.81%	10.44%	11.02%
Book Value / Share	19.31	21.31	24.5	27.67	31.21	35.3	39.47	42.57	48.74	56.3
NII Growth	18.11%	24.25%	24.5%	18.91%	6.75%	5.78%	6.73%	33.08%	16.99%	-5.79%
Dividend Payout	21.19%	23.2%	25.43%	22.01%	23.34%	25.79%	22.5%	19.51%	20.76%	28.7%

Frequently Asked Questions

Valuation & Price

Preferred Bank (PFBC) has a price-to-earnings (P/E) ratio of 10.1x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

Preferred Bank (PFBC) grew revenue by 8.0% over the past year. This is steady growth.

Yes, Preferred Bank (PFBC) is profitable, generating $126.5M in net income for fiscal year 2024 (25.1% net margin).

Dividend & Returns

Yes, Preferred Bank (PFBC) pays a dividend with a yield of 2.84%. This makes it attractive for income-focused investors.

Preferred Bank (PFBC) has a return on equity (ROE) of 17.9%. This is reasonable for most industries.

Industry Metrics

Preferred Bank (PFBC) has a net interest margin (NIM) of 3.9%. This indicates healthy earnings from lending activities.

Preferred Bank (PFBC) has an efficiency ratio of 16.9%. This is excellent, indicating strong cost control.

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