NasdaqGS:PFBC

Stock Analysis Report

Executive Summary

Preferred 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.

Snowflake

Fundamentals

Flawless balance sheet and good value.


Similar Companies

Share Price & News

How has Preferred Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.8%

NasdaqGS:PFBC

0.3%

US Banks

0.9%

US Market


1 Year Return

-17.6%

NasdaqGS:PFBC

-13.6%

US Banks

0.3%

US Market

PFBC underperformed the Banks industry which returned -14.2% over the past year.

PFBC underperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

PFBCIndustryMarket
7 Day1.8%0.3%0.9%
30 Day-0.08%-5.1%-1.9%
90 Day7.5%-3.5%1.6%
1 Year-15.7%-17.6%-11.2%-13.6%2.6%0.3%
3 Year58.0%49.9%43.6%33.7%41.0%31.8%
5 Year134.5%114.8%53.7%37.0%55.2%38.0%

Price Volatility Vs. Market

How volatile is Preferred Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Preferred Bank undervalued based on future cash flows and its price relative to the stock market?

48%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Preferred Bank's share price is below the future cash flow value, and at a moderate discount (> 20%).

Preferred Bank's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Preferred Bank is good value based on earnings compared to the US Banks industry average.

Preferred Bank is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Preferred Bank is poor value based on expected growth next year.


Price Based on Value of Assets

Preferred Bank is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Preferred Bank expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Preferred Bank's revenue is expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).

Preferred Bank's earnings are expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).

Preferred Bank's revenue growth is positive but not above the United States of America market average.

Preferred Bank's earnings growth is positive but not above the United States of America market average.

Preferred Bank's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Preferred Bank will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Preferred Bank performed over the past 5 years?

24.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Preferred Bank has delivered over 20% year on year earnings growth in the past 5 years.

Preferred Bank's 1-year earnings growth exceeds its 5-year average (36.9% vs 24.9%)

Preferred Bank's earnings growth has exceeded the US Banks industry average in the past year (36.9% vs 33.2%).


Return on Equity

Preferred Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Preferred Bank used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Preferred Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Preferred Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Information is not available.

Information is not available.


Financial Institutions Analysis

Preferred Bank has an acceptable proportion of non-loan assets held.

Preferred Bank has a sufficient allowance for bad loans.

Preferred Bank's liabilities are made up of primarily low risk sources of funding.

Preferred Bank's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Preferred Bank are broadly funded by customer deposits.

Preferred Bank has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

What is Preferred Bank's current dividend yield, its reliability and sustainability?

2.43%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Preferred Bank's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Preferred Bank's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Preferred Bank's salary, the management and board of directors tenure and is there insider trading?

10.1yrs

Average management tenure


CEO

Li Yu (78yo)

26.6yrs

Tenure

US$4,549,073

Compensation

Mr. Li Yu founded Preferred Bank and has been its Chairman since December 1991 and Chief Executive Officer since 1993 and served as its President from 1993 to August 22, 2012. He serves as Corporate Secret ...


CEO Compensation Analysis

Li's remuneration is higher than average for companies of similar size in United States of America.

Li's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

10.1yrs

Average Tenure

58.5yo

Average Age

The average tenure for the Preferred Bank management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

8.3yrs

Average Tenure

70yo

Average Age

The tenure for the Preferred Bank board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$500,17710 Apr 19
Li Yu
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares11,651
Max PriceUS$42.93
SellUS$22,23810 Apr 19
Nick Pi
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Credit Officer
Shares518
Max PriceUS$42.93
SellUS$35,18710 Apr 19
Edward Czajka
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares805
Max PriceUS$46.07
SellUS$37,82110 Apr 19
Wellington Chen
EntityIndividual
Role
President
President & COO
Shares881
Max PriceUS$42.93
SellUS$475,30010 Apr 19
Wayne Wu
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$47.53
SellUS$44,55014 Dec 18
Clark Hsu
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares1,000
Max PriceUS$44.55
SellUS$44,11013 Dec 18
Clark Hsu
EntityIndividual
Role
Vice Chairman
Vice Chairman of the Board
Shares1,000
Max PriceUS$44.11
SellUS$93,80412 Dec 18
Pacific Health Investment Inc.
EntityCompany
Shares2,041
Max PriceUS$45.96
SellUS$536,02430 Nov 18
Pacific Health Investment Inc.
EntityCompany
Shares10,459
Max PriceUS$51.25
SellUS$305,00010 Sep 18
Wayne Wu
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$61.00

Ownership Breakdown


Management Team

  • Ed Czajka (55yo)

    Executive VP & CFO

    • Tenure: 13.3yrs
    • Compensation: US$805.46k
  • Li Yu (78yo)

    Chairman

    • Tenure: 26.6yrs
    • Compensation: US$4.55m
  • Wellington Chen (59yo)

    President & COO

    • Tenure: 7.0yrs
    • Compensation: US$1.29m
  • Nick Pi (58yo)

    Executive VP & Chief Credit Officer

    • Tenure: 4.2yrs
    • Compensation: US$693.99k
  • Johnny Hsu

    Executive Vice President

    • Tenure: 0.0yrs
  • Sandy Ho

    Executive VP & Regional Manager

    • Tenure: 0.0yrs
    • Compensation: US$169.42k
  • Stella Chen

    Senior Vice President

    • Tenure: 0.0yrs
    • Compensation: US$172.26k
  • Erika Chi

    Executive Vice President

    • Tenure: 0.0yrs
  • Ted Hsu

    Executive Vice President

    • Tenure: 0.0yrs
  • Gary Hu

    Executive Vice President

    • Tenure: 0.0yrs

Board Members

  • Li Yu (78yo)

    Chairman

    • Tenure: 26.6yrs
    • Compensation: US$4.55m
  • J. Belliston (74yo)

    Director

    • Tenure: 16.6yrs
    • Compensation: US$145.58k
  • Wayne Wu (56yo)

    Director

    • Tenure: 6.2yrs
    • Compensation: US$123.58k
  • Gary Nunnelly (70yo)

    Director

    • Tenure: 28.6yrs
    • Compensation: US$142.08k
  • Chih-Wei Wu (59yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$131.08k
  • William C. Cheng (71yo)

    Director

    • Tenure: 24.6yrs
    • Compensation: US$139.08k
  • Clark Hsu (48yo)

    Vice Chairman of the Board

    • Tenure: 8.3yrs
    • Compensation: US$143.08k
  • Shirley Wang

    Director

    • Tenure: 0.9yrs
    • Compensation: US$60.58k
  • Kathleen Shane

    Director

    • Tenure: 0.4yrs

Company Information

Preferred Bank's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Preferred Bank
  • Ticker: PFBC
  • Exchange: NasdaqGS
  • Founded: 1991
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$770.707m
  • Shares outstanding: 15.14m
  • Website: https://www.preferredbank.com

Number of Employees


Location

  • Preferred Bank
  • 601 South Figueroa Street
  • 29th Floor
  • Los Angeles
  • California
  • 90017
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PFBCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2001
1IUDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2001

Biography

Preferred 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 23:43
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.