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Upturn AI SWOT - About
PFBC 
Preferred Bank (PFBC)
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Upturn Advisory Summary
06/30/2025: PFBC (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
5 Analysts rated it
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Year Target Price $93
Year Target Price $93
| 1 | Strong Buy |
| 1 | Buy |
| 3 | Hold |
| 0 | Under performing |
| 0 | Sell |
Analysis of Past Performance
Type Stock | Historic Profit -4.87% | Avg. Invested days 35 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 06/30/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.07B USD | Price to earnings Ratio 9.16 | 1Y Target Price 93 |
Price to earnings Ratio 9.16 | 1Y Target Price 93 | ||
Volume (30-day avg) 5 | Beta 0.7 | 52 Weeks Range 70.46 - 97.89 | Updated Date 06/30/2025 |
52 Weeks Range 70.46 - 97.89 | Updated Date 06/30/2025 | ||
Dividends yield (FY) 3.48% | Basic EPS (TTM) 9.43 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 47.83% | Operating Margin (TTM) 66.89% |
Management Effectiveness
Return on Assets (TTM) 1.84% | Return on Equity (TTM) 17.21% |
Valuation
Trailing PE 9.16 | Forward PE 8.32 | Enterprise Value 320620480 | Price to Sales(TTM) 4.04 |
Enterprise Value 320620480 | Price to Sales(TTM) 4.04 | ||
Enterprise Value to Revenue 4.46 | Enterprise Value to EBITDA - | Shares Outstanding 12426200 | Shares Floating 11538252 |
Shares Outstanding 12426200 | Shares Floating 11538252 | ||
Percent Insiders 8.51 | Percent Institutions 96.08 |
Analyst Ratings
Rating 3 | Target Price 93 | Buy 1 | Strong Buy 1 |
Buy 1 | Strong Buy 1 | ||
Hold 3 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Preferred Bank
Company Overview
History and Background
Preferred Bank was founded in 1991 in Los Angeles, California. It was established to serve the needs of the Chinese-American community and has since expanded to serve a diverse range of businesses and individuals, growing through organic expansion and strategic acquisitions.
Core Business Areas
- Commercial Banking: Offers a range of commercial banking products and services, including commercial loans, lines of credit, and deposit accounts to small and medium-sized businesses.
- Real Estate Lending: Provides financing for commercial real estate projects, including construction loans and mortgages.
- Trade Finance: Offers trade finance solutions to businesses engaged in international trade, including letters of credit and export financing.
- Retail Banking: Provides retail banking services, including checking and savings accounts, as well as personal loans.
Leadership and Structure
Li Yu is the Chairman, President, and CEO of Preferred Bank. The bank is structured with a board of directors and senior management team overseeing various departments, including lending, operations, and finance.
Top Products and Market Share
Key Offerings
- Commercial Loans: Commercial loans are a significant revenue driver. It offers loans to small and medium sized businesses in the areas they operate in and have established a good market share. Competitors include East West Bank, Cathay Bank, and other regional and national banks. No specific market share data is readily available.
- Real Estate Loans: Provides commercial real estate financing. Competitors include regional and national banks, private lenders, and life insurance companies. No specific market share data is readily available.
- Trade Finance Solutions: Offers trade finance solutions with competitors being similar to commercial lending with some specialty firms like large brokerage houses. Revenue and market share data are unavailable.
Market Dynamics
Industry Overview
The banking industry is highly competitive and regulated. It is influenced by economic conditions, interest rates, and regulatory changes. The current landscape sees increased competition from fintech companies and evolving customer preferences towards digital banking.
Positioning
Preferred Bank positions itself as a relationship-focused bank providing personalized service to its clients, particularly within the Asian-American community. Its competitive advantage lies in its local market knowledge and cultural understanding.
Total Addressable Market (TAM)
The TAM for commercial banking and real estate lending is substantial, estimated to be hundreds of billions of dollars. Preferred Bank is positioned to capture a portion of this TAM by focusing on specific geographic markets and niche industries.
Upturn SWOT Analysis
Strengths
- Strong relationship-based banking model
- Deep understanding of the Asian-American market
- Healthy asset quality
- Experienced management team
Weaknesses
- Limited geographic diversification
- Smaller scale compared to larger national banks
- Reliance on specific industries and demographics
Opportunities
- Expansion into new geographic markets
- Increased adoption of digital banking solutions
- Growing demand for commercial real estate financing
- Further development of trade finance offerings
Threats
- Increased competition from larger banks and fintech companies
- Economic downturn impacting loan performance
- Rising interest rates
- Regulatory changes
Competitors and Market Share
Key Competitors
- EWBC
- CATY
- BOH
Competitive Landscape
Preferred Bank faces strong competition from larger regional and national banks, as well as smaller community banks. Its ability to differentiate itself through personalized service and local market expertise is crucial for its success.
Growth Trajectory and Initiatives
Historical Growth: Preferred Bank has experienced consistent growth in assets, loans, and deposits over the past decade.
Future Projections: Future growth is expected to be driven by expansion into new markets, increased lending activity, and improved efficiency.
Recent Initiatives: Recent initiatives include investments in digital banking platforms and expansion of its branch network.
Summary
Preferred Bank is a solid regional bank with a strong focus on the Asian-American community. Its relationship-based approach and healthy asset quality are key strengths. However, its limited geographic diversification and smaller scale compared to larger banks present challenges. Continued investments in digital banking and expansion into new markets are crucial for future growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Website
- SEC Filings
- Analyst Reports
- Yahoo Finance
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Market share percentages are estimates and can vary.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Preferred Bank
Exchange NASDAQ | Headquaters Los Angeles, CA, United States | ||
IPO Launch date 1998-04-07 | Chairman, CEO & Corporate Secretary Mr. Li Yu | ||
Sector Financial Services | Industry Banks - Regional | Full time employees 323 | Website https://www.preferredbank.com |
Full time employees 323 | Website https://www.preferredbank.com | ||
Preferred Bank provides various banking products and services to small and mid-sized businesses, entrepreneurs, real estate developers, professionals, and high net worth individuals. 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; commercial loans, including lines of credit for working capital, term loans for capital expenditures, and commercial and stand-by letters of credit; and small business administration loans for business purposes, such as owner-occupied commercial real estate, business acquisitions, start-ups, franchise financing, working capital, improvements and renovations, inventory and equipment, and debt-refinancing. 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, and bills purchase programs. Further, it provides cash management services; and internet, mobile, and tablet banking services. The company was incorporated in 1991 and is headquartered in Los Angeles, California.
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