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PFBC 
Preferred Bank (PFBC)
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Upturn Advisory Summary
11/05/2025: 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
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $108
1 Year Target Price $108
| 1 | Strong Buy |
| 1 | Buy |
| 3 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -3.4% | Avg. Invested days 38 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 11/05/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.13B USD | Price to earnings Ratio 9.51 | 1Y Target Price 108 |
Price to earnings Ratio 9.51 | 1Y Target Price 108 | ||
Volume (30-day avg) 5 | Beta 0.74 | 52 Weeks Range 70.73 - 98.63 | Updated Date 11/8/2025 |
52 Weeks Range 70.73 - 98.63 | Updated Date 11/8/2025 | ||
Dividends yield (FY) 3.32% | Basic EPS (TTM) 9.63 |
Earnings Date
Report Date 2025-10-21 | When Before Market | Estimate 2.57 | Actual 2.84 |
Profitability
Profit Margin 47.55% | Operating Margin (TTM) 70.98% |
Management Effectiveness
Return on Assets (TTM) 1.8% | Return on Equity (TTM) 16.91% |
Valuation
Trailing PE 9.51 | Forward PE 8.32 | Enterprise Value 695263808 | Price to Sales(TTM) 4.17 |
Enterprise Value 695263808 | Price to Sales(TTM) 4.17 | ||
Enterprise Value to Revenue 5.29 | Enterprise Value to EBITDA - | Shares Outstanding 12349889 | Shares Floating 10834311 |
Shares Outstanding 12349889 | Shares Floating 10834311 | ||
Percent Insiders 8.26 | Percent Institutions 89.56 |
Upturn AI SWOT
Preferred Bank
Company Overview
History and Background
Preferred Bank was founded in 1991 and is headquartered in Los Angeles, California. It has grown organically and through strategic acquisitions, focusing on serving the Chinese-American community and businesses.
Core Business Areas
- Commercial Banking: Provides a range of commercial banking services, including loans, deposits, and cash management to businesses of various sizes.
- Real Estate Lending: Offers real estate loans for commercial and residential properties.
- Trade Finance: Facilitates international trade transactions for businesses, particularly those involved in import and export activities.
- Retail Banking: Offers personal banking services, including checking and savings accounts, and consumer loans.
Leadership and Structure
Preferred Bank is led by Chairman Li Yu and CEO Wellington Chen. The organizational structure includes various departments overseeing lending, operations, finance, and compliance.
Top Products and Market Share
Key Offerings
- Commercial Loans: Commercial loans are a significant portion of Preferred Bank's portfolio. Market share data is difficult to pinpoint exactly but Preferred Bank serves a niche market. Competitors include East West Bancorp (EWBC) and Cathay General Bancorp (CATY).
- Real Estate Loans: Real estate lending represents a substantial portion of its lending activity. Market share data is not readily available. Competitors include East West Bancorp (EWBC) and Cathay General Bancorp (CATY).
- Trade Finance Services: Facilitates import/export transactions for businesses. Revenue figures are not publicly broken out. Key competitors include larger international banks and specialized trade finance institutions.
Market Dynamics
Industry Overview
The banking industry is subject to interest rate fluctuations, regulatory changes, and economic cycles. Community banks compete with larger national and regional players.
Positioning
Preferred Bank focuses on serving the Chinese-American community and businesses, differentiating itself through cultural understanding and personalized service. It benefits from strong relationships within its target market.
Total Addressable Market (TAM)
The TAM for banking services within the Chinese-American community is significant, estimated to be in the billions of dollars. Preferred Bank is well-positioned to capture a portion of this market due to its cultural affinity and established presence.
Upturn SWOT Analysis
Strengths
- Strong presence in the Chinese-American community
- Experienced management team
- Solid asset quality
- Strong capital base
Weaknesses
- Geographic concentration in California
- Limited product diversification
- Smaller scale compared to larger banks
Opportunities
- Expanding into new markets with significant Chinese-American populations
- Increasing digital banking offerings
- Growing trade finance business with Asia
- Strategic acquisitions of smaller banks
Threats
- Increased competition from larger banks
- Economic downturn affecting loan quality
- Changes in regulatory requirements
- Rising interest rates impacting profitability
Competitors and Market Share
Key Competitors
- East West Bancorp (EWBC)
- Cathay General Bancorp (CATY)
- Bank of America (BAC)
Competitive Landscape
Preferred Bank's advantages include its strong presence in the Chinese-American community and its focus on personalized service. Disadvantages include its smaller scale compared to larger banks and its geographic concentration.
Major Acquisitions
United National Bank
- Year: 2016
- Acquisition Price (USD millions): 74.3
- Strategic Rationale: Expanded Preferred Bank's presence and customer base within the Chinese-American community.
Growth Trajectory and Initiatives
Historical Growth: Preferred Bank has experienced steady growth in assets, loans, and deposits over the past decade, driven by organic expansion and strategic acquisitions.
Future Projections: Analyst estimates for future growth would be needed to provide accurate projections, which require gathering data from financial analysis platforms.
Recent Initiatives: Recent initiatives include expanding digital banking capabilities and increasing focus on trade finance.
Summary
Preferred Bank is a community bank with a strong foothold in the Chinese-American community. Its strength lies in its cultural understanding and customer relationships. The bank faces competition from larger institutions and needs to diversify its offerings and geographic reach to sustain growth. Adapting to digital banking trends is also crucial for Preferred Bank's future success.
Similar Stocks
Sources and Disclaimers
Data Sources:
- Preferred Bank Investor Relations
- SEC Filings (10-K, 10-Q)
- Company Website
- Financial News Articles
- Yahoo Finance
- Bloomberg
Disclaimers:
The information provided is for informational purposes only and does not constitute financial advice. Market share data is estimated based on available information and may not be precise. Investment decisions should be made based on thorough research and consultation with a financial advisor.
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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