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PFBC

Preferred Bank

PFBC

Preferred Bank • NASDAQ
$94.41 ▼ -0.50% (-0.47)
Market Cap $1.21 B
52w High $99.45
52w Low $71.90
Dividend Yield 3.00%
P/E 9.56
Volume 34.13K
Outstanding Shares 12.84M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $130.515M ▲ $21.498M ▼ $35.939M ▲ 27.536% ▲ $2.9 ▲ $51.389M ▲
Q2-2025 $124.205M ▲ $22.445M ▼ $32.847M ▲ 26.446% ▲ $2.61 ▲ $47.023M ▲
Q1-2025 $118.527M ▼ $23.369M ▼ $30.024M ▼ 25.331% ▲ $2.27 ▼ $43.104M ▲
Q4-2024 $127.261M ▼ $26.012M ▲ $30.221M ▼ 23.747% ▼ $2.29 ▼ $43.069M ▼
Q3-2024 $132.883M $22.089M $33.383M 25.122% $2.5 $47.54M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2025 $776.319M ▼ $7.279B ▲ $6.531B ▲ $747.66M ▼
Q1-2025 $905.248M ▲ $7.1B ▲ $6.321B ▲ $778.604M ▲
Q4-2024 $765.518M ▼ $6.923B ▲ $6.16B ▲ $763.152M ▲
Q3-2024 $1.12B ▼ $6.872B ▲ $6.122B ▼ $750.117M ▲
Q2-2024 $1.228B $6.847B $6.123B $723.127M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2025 $32.847M ▲ $25.657M ▼ $-293.208M ▼ $138.625M ▲ $-128.926M ▼ $25.48M ▼
Q1-2025 $30.024M ▼ $44.581M ▲ $-37.64M ▲ $132.727M ▲ $139.668M ▲ $44.25M ▲
Q4-2024 $30.221M ▼ $39.615M ▼ $-92.388M ▲ $33.294M ▲ $-19.479M ▲ $39.843M ▼
Q3-2024 $33.383M ▼ $56.008M ▲ $-142.932M ▼ $-25.759M ▼ $-112.683M ▼ $55.796M ▲
Q2-2024 $33.592M $25.789M $-108.135M $63.423M $-18.923M $25.695M

Five-Year Company Overview

Income Statement

Income Statement Over the past five years, Preferred Bank has grown its revenue and profits steadily, showing it can expand its business while keeping costs under control. Earnings climbed strongly from 2020 through 2023, then eased a bit in 2024, suggesting some margin pressure or higher funding costs in the most recent year. Profitability is still solid, but the slight step down from the prior peak hints that the easy phase of earnings growth may be behind them, at least for now. Overall, the income statement tells a story of a mature, profitable regional bank with good cost discipline, but also one that is not immune to changing interest rate and competitive conditions.

Balance Sheet

Balance Sheet The balance sheet looks conservative and orderly. Assets have grown steadily over time, while shareholder equity has also increased, which points to a bank that is building its capital base as it grows. Cash balances are healthy, though they have moved around year to year as the bank manages liquidity. Debt levels are modest and have been stable, suggesting limited reliance on wholesale borrowing. In plain terms, the bank appears to be run with a cautious approach to leverage, which is important for a regional lender that must maintain confidence through economic cycles.

Cash Flow

Cash Flow Cash generation from core operations has been consistently positive and has generally trended upward, which aligns well with the growth in earnings. Free cash flow closely matches operating cash flow, reflecting the low capital spending needs of a bank—its “investment” is mainly in loans and securities rather than physical assets. This pattern supports the idea that the bank has flexibility to return capital to shareholders or reinvest in the business without straining its finances. The cash flow profile looks stable and supportive of the current business model, though it remains sensitive to credit quality and interest rate swings like any bank.

Competitive Edge

Competitive Edge Preferred Bank occupies a focused niche as a relationship-driven commercial bank, especially strong in serving Chinese-American and East Asian communities and small to mid-sized businesses. Its strengths are deep local knowledge, personalized service, and loyal customers who value long-term relationships over purely digital, low-touch banking. It also benefits from its status as an SBA Preferred Lender and its concentration in real estate and business lending. On the other hand, it faces intense competition from larger national banks, other regional players, and increasingly from digital-first institutions. Its geographic and demographic focus is a double-edged sword: it creates a real moat in its core markets but also leaves the bank more exposed to local economic or sector-specific downturns.

Innovation and R&D

Innovation and R&D The bank is not a technology pioneer, but it does a solid job of using off-the-shelf digital tools to support its relationship banking strategy. Its online and mobile platforms, combined with data-driven customer management, are designed to make it easy for clients to interact with the bank while still preserving personal connections. There is no meaningful “R&D” in the Silicon Valley sense; instead, innovation shows up as better integration of digital channels, more tailored services, and improved use of customer data. The main risk on this front is that larger banks and fintechs may move faster with advanced digital features, so Preferred Bank’s challenge is to keep its tech “good enough” while leaning heavily on service quality and niche expertise to stay differentiated.

Summary

Preferred Bank comes across as a well-run, profitable regional bank with a clear niche and a conservative financial profile. Earnings have grown strongly over several years, though the recent dip from peak levels suggests that rising funding costs or competitive pressures are starting to bite. The balance sheet is sound, with steady asset growth, rising equity, and limited debt—hallmarks of a cautious approach to risk. Cash flows are stable and in line with earnings, giving management room to support dividends, buybacks, or strategic investments. Competitively, the bank’s strongest assets are its relationships, cultural and community ties, and focus on tailored solutions for business and high-net-worth clients. Its main vulnerabilities lie in its regional and segment concentration, and in keeping pace with ongoing digital transformation in banking. Overall, the story is one of a niche-focused, relationship-centric bank that has executed well financially, but that must navigate the usual banking risks of credit cycles, interest rate shifts, and technology-driven competition.

NEWS

October 20, 2025 · 4:11 PM UTC

Preferred Bank Reports Record Third Quarter Results

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October 6, 2025 · 4:05 PM UTC

Preferred Bank Announces 2025 Third Quarter Earnings Release and Conference Call

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September 17, 2025 · 8:00 AM UTC

Preferred Bank Announces Cash Dividend

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