PFBC Stock Overview
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.
Preferred Bank Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$67.27|
|52 Week High||US$72.58|
|52 Week Low||US$37.07|
|1 Month Change||-5.09%|
|3 Month Change||6.22%|
|1 Year Change||76.10%|
|3 Year Change||45.58%|
|5 Year Change||41.50%|
|Change since IPO||41.62%|
Recent News & Updates
|PFBC||US Banks||US Market|
Return vs Industry: PFBC exceeded the US Banks industry which returned 36.7% over the past year.
Return vs Market: PFBC exceeded the US Market which returned 17.8% over the past year.
|PFBC Average Weekly Movement||3.6%|
|Banks Industry Average Movement||3.7%|
|Market Average Movement||6.0%|
|10% most volatile stocks in US Market||15.1%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: PFBC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: PFBC's weekly volatility (4%) has been stable over the past year.
About the Company
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. 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 and term loans for capital expenditures, as well as equipment financing and SBA loans.
Preferred Bank Fundamentals Summary
|PFBC fundamental statistics|
Is PFBC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|PFBC income statement (TTM)|
|Cost of Revenue||US$0|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
|Earnings per share (EPS)||6.11|
|Net Profit Margin||49.82%|
How did PFBC perform over the long term?See historical performance and comparison
2.3%Current Dividend Yield
Is Preferred Bank undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PFBC ($67.27) is trading below our estimate of fair value ($166.01)
Significantly Below Fair Value: PFBC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: PFBC is poor value based on its PE Ratio (11x) compared to the US Banks industry average (10.5x).
PE vs Market: PFBC is good value based on its PE Ratio (11x) compared to the US market (16.6x).
Price to Earnings Growth Ratio
PEG Ratio: PFBC is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: PFBC is overvalued based on its PB Ratio (1.8x) compared to the US Banks industry average (1.1x).
How is Preferred Bank forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PFBC's forecast earnings growth (6% per year) is above the savings rate (2%).
Earnings vs Market: PFBC's earnings (6% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: PFBC's earnings are forecast to grow, but not significantly.
Revenue vs Market: PFBC's revenue (9.5% per year) is forecast to grow slower than the US market (10.1% per year).
High Growth Revenue: PFBC's revenue (9.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PFBC's Return on Equity is forecast to be low in 3 years time (15.7%).
How has Preferred Bank performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PFBC has high quality earnings.
Growing Profit Margin: PFBC's current net profit margins (49.8%) are higher than last year (46.1%).
Past Earnings Growth Analysis
Earnings Trend: PFBC's earnings have grown by 16.3% per year over the past 5 years.
Accelerating Growth: PFBC's earnings growth over the past year (32.1%) exceeds its 5-year average (16.3% per year).
Earnings vs Industry: PFBC earnings growth over the past year (32.1%) underperformed the Banks industry 43%.
Return on Equity
High ROE: PFBC's Return on Equity (16%) is considered low.
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
Financial Institutions Analysis
Asset Level: PFBC's Assets to Equity ratio (10.6x) is moderate.
Allowance for Bad Loans: PFBC has a sufficient allowance for bad loans (293%).
Low Risk Liabilities: 96% of PFBC's liabilities are made up of primarily low risk sources of funding.
Loan Level: PFBC has an appropriate level of Loans to Assets ratio (71%).
Low Risk Deposits: PFBC's Loans to Deposits ratio (82%) is appropriate.
Level of Bad Loans: PFBC has an appropriate level of bad loans (0.5%).
What is Preferred Bank current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PFBC's dividend (2.26%) is higher than the bottom 25% of dividend payers in the US market (1.37%).
High Dividend: PFBC's dividend (2.26%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, PFBC has been paying a dividend for less than 10 years.
Growing Dividend: PFBC's dividend payments have increased, but the company has only paid a dividend for 7 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (24%), PFBC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PFBC's dividends in 3 years are forecast to be well covered by earnings (23% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Li Yu (80 yo)
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
Compensation vs Market: Li's total compensation ($USD3.74M) is above average for companies of similar size in the US market ($USD2.31M).
Compensation vs Earnings: Li's compensation has been consistent with company performance over the past year.
Experienced Management: PFBC's management team is seasoned and experienced (11.5 years average tenure).
Experienced Board: PFBC's board of directors are seasoned and experienced ( 10.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: PFBC insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Preferred Bank's employee growth, exchange listings and data sources
- Name: Preferred Bank
- Ticker: PFBC
- Exchange: NasdaqGS
- Founded: 1991
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$1.000b
- Shares outstanding: 14.68m
- Website: https://www.preferredbank.com
Number of Employees
- Preferred Bank
- 601 South Figueroa Street
- 47th and 48th Floor
- Los Angeles
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/12/02 00:02|
|End of Day Share Price||2021/12/01 00:00|
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.