Preferred Bank (PFBC) Stock Price, News & Analysis

Company Overview

Preferred Bank (NASDAQ: PFBC) is a California-chartered commercial bank founded in 1991 and headquartered in Pasadena, California. The bank provides a full suite of banking services to small and middle-market businesses, professionals and high-net-worth individuals. With an emphasis on relationship banking, Preferred Bank delivers personalized financial solutions through its Commercial Banking and Retail Banking divisions.

In its Commercial Banking segment, Preferred Bank offers financing options for commercial real estate, owner-occupied properties, construction projects and multi-family housing developments. The bank also provides specialized lending such as SBA loans and lines of credit tailored to support operating capital needs. Treasury management services, including cash concentration, automated clearing and international trade finance, complement the lending products to streamline clients’ day-to-day operations.

The Retail Banking unit caters to individual customers and small businesses through deposit accounts, residential mortgage loans and home equity lines of credit. Customers have access to online and mobile banking platforms designed for ease of use and efficiency. Preferred Bank’s branch network and credit centers span key markets in Southern California—such as Los Angeles, Orange County and the Inland Empire—as well as strategic outposts in New York and New Jersey.

Over its three-decade history, Preferred Bank has grown through a combination of disciplined underwriting and targeted expansion into high-growth markets. The bank is led by President and Chief Executive Officer Robert M. Sarver, supported by a senior management team with deep experience in real estate finance, risk management and regulatory compliance. Committed to community banking values, Preferred Bank maintains a strong focus on customer service and prudent growth strategies.

Key Stats

• Today's Range: $90.80 to $92.87
• 50-Day Range: $79.89 to $92.48
• 52-Week Range: $71.90 to $99.78
• Volume: 53,002 shs
• Average Volume: 88,644 shs
• Market Capitalization: $1.34 billion
• P/E Ratio: 9.85
• Dividend Yield: 3.23%
• Price Target: $92.33
• Consensus Rating: Hold

Preferred Bank Stock Analysis - MarketRank™

Preferred Bank scored higher than 35% of companies evaluated by MarketBeat, and ranked 698th out of 935 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 1.2 / 5
• Analyst Rating: Hold

Consensus Rating

Preferred Bank has received a consensus rating of Hold. The company's average rating score is 2.33, and is based on 1 buy rating, 2 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Preferred Bank has only been the subject of 3 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.9 / 5
• Proj. Earnings Growth: 3.98%

Earnings Growth

Earnings for Preferred Bank are expected to grow by 3.98% in the coming year, from $9.81 to $10.20 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Preferred Bank is 9.85, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 26.26.

Price to Earnings Ratio vs. Sector

The P/E ratio of Preferred Bank is 9.85, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 19.29.

Price to Book Value per Share Ratio

Preferred Bank has a P/B Ratio of 1.75. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 2.0 / 5
• Short Interest Level: Bearish

Percentage of Shares Shorted

7.74% of the float of Preferred Bank has been sold short.

Short Interest Ratio / Days to Cover

Preferred Bank has a short interest ratio ("days to cover") of 8.7.

Change versus previous month

Short interest in Preferred Bank has recently decreased by 1.29%, indicating that investor sentiment is improving.

Dividend

• Score: 3.3 / 5
• Dividend Strength: Strong

Dividend Yield

Preferred Bank pays a meaningful dividend of 3.28%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Preferred Bank has been increasing its dividend for 5 years.

Dividend Coverage

The dividend payout ratio of Preferred Bank is 31.85%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Preferred Bank will have a dividend payout ratio of 29.41% next year. This indicates that Preferred Bank will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

7.74% of the float of Preferred Bank has been sold short.

Short Interest Ratio / Days to Cover

Preferred Bank has a short interest ratio ("days to cover") of 8.7.

Change versus previous month

Short interest in Preferred Bank has recently decreased by 1.29%, indicating that investor sentiment is improving.

News and Social Media

• Score: 1.4 / 5
• News Sentiment: 0.53

News Sentiment

Preferred Bank has a news sentiment score of 0.53. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.94 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 4 news articles for Preferred Bank this week, compared to 4 articles on an average week.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Preferred Bank insiders have not sold or bought any company stock.

Percentage Held by Institutions

72.77% of the stock of Preferred Bank is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

PFBC Stock Analysis - Frequently Asked Questions

How have PFBC shares performed this year?

Preferred Bank's stock was trading at $86.38 at the beginning of the year. Since then, PFBC shares have increased by 7.4% and is now trading at $92.76.

How were Preferred Bank's earnings last quarter?

Preferred Bank (NASDAQ:PFBC) posted its quarterly earnings results on Friday, April, 25th. The bank reported $2.23 EPS for the quarter, missing analysts' consensus estimates of $2.33 by $0.10. The bank had revenue of $65.96 million for the quarter, compared to analyst estimates of $70.78 million. Preferred Bank had a net margin of 24.87% and a trailing twelve-month return on equity of 16.88%.
Read the conference call transcript.

Is Preferred Bank doing a stock buyback?

Preferred Bank's Board of Directors initiated a stock buyback program on Thursday, May 22nd 2025, which authorizes the company to buy back $125,000,000 in shares, according to EventVestor. This means that the company could buy up to 10.4% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's management believes its stock is undervalued.

Who are Preferred Bank's major shareholders?

Preferred Bank's top institutional shareholders include Wealth Enhancement Advisory Services LLC (0.02%).

How do I buy shares of Preferred Bank?

Shares of PFBC stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Preferred Bank own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Preferred Bank investors own include NVIDIA (NVDA), Meta Platforms (META), Advanced Micro Devices (AMD), Netflix (NFLX), Broadcom (AVGO), JPMorgan Chase & Co. (JPM) and Exxon Mobil (XOM).

Company Calendar

• Record date for 4/21 Dividend: 4/07/2025
• Ex-Dividend for 4/21 Dividend: 4/07/2025
• Dividend Payable: 4/21/2025
• Last Earnings: 4/25/2025
• Record date for 7/22 Dividend: 7/08/2025
• Ex-Dividend for 7/22 Dividend: 7/08/2025
• Today: 7/15/2025
• Next Earnings (Estimated): 7/21/2025
• Dividend Payable: 7/22/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Finance
• Industry: BANKS - WEST
• Sub-Industry: Regional Banks
• Current Symbol: NASDAQ:PFBC
• CIK: 1492165
• Web: www.preferredbank.com
• Phone: (213) 891-1188
• Fax: 213-622-5161
• Employees: 280
• Year Founded: 1991

Price Target and Rating

• Average Price Target for Preferred Bank: $92.33
• High Price Target: $96.00
• Low Price Target: $90.00
• Potential Upside/Downside: -0.5%
• Consensus Rating: Hold
• Rating Score (0-4): 2.33
• Research Coverage: 3 Analysts

Profitability

• EPS (Trailing Twelve Months): $9.42
• Trailing P/E Ratio: 9.85
• Forward P/E Ratio: 9.46
• P/E Growth: N/A
• Net Income: $130.66 million
• Net Margins: 24.87%
• Pretax Margin: 35.08%
• Return on Equity: 16.88%
• Return on Assets: 1.83%

Debt

• Debt-to-Equity Ratio: 0.19
• Current Ratio: 1.07
• Quick Ratio: 1.07

Sales & Book Value

• Annual Sales: $522.66 million
• Price / Sales: 2.56
• Cash Flow: $9.55 per share
• Price / Cash Flow: 9.71
• Book Value: $52.89 per share
• Price / Book: 1.75

Miscellaneous

• Outstanding Shares: 14,430,000
• Free Float: N/A
• Market Cap: $1.34 billion
• Optionable: Optionable
• Beta: 0.69