Preferred Bank (PFBC) AI Stock Analysis

Established in 1991 and based in Los Angeles, California, Preferred Bank offers commercial banking products and services to small and mid-sized businesses, real estate developers, professionals, and high net worth individuals across the United States. Its deposit products feature checking, savings, money market accounts, and certificates of deposit, including individual retirement accounts. The bank's lending activities include real estate mortgage loans secured by retail, industrial, office, and residential properties, alongside commercial loans, SBA loans, real estate construction loans, and trade finance services. Its branch network includes eleven branches in California and one in Flushing, New York.

Preferred Bank expanded its revenue from $218.8M in FY2021 to a peak of $520.4M in FY2024, before declining 4.1% to $499.0M in FY2025. Net income increased from $95.2M in FY2021 to $133.6M in FY2025, yielding an EPS of $10.38. Over the same span, operating margin compressed from 61.2% in FY2021 to 38.0% in FY2025. Over the trailing twelve months, revenue reached $286.6M with a profit margin of 47.2% and EPS of $10.72. For the latest quarter ending June 30, 2026, quarterly revenue grew 4.7% year-over-year, while quarterly earnings grew 8.2%.

As of June 30, 2026, Preferred Bank held $749.8M in cash and short-term investments against total debt of $385.2M, resulting in net cash of $364.6M. Total assets stood at $7.73B and shareholders' equity was $793.5M, yielding a debt-to-equity ratio of 0.49 and a current ratio of 255.01. In FY2025, operating cash flow was $168.1M and free cash flow reached $166.8M. Cash usage included $1.4M for capital expenditures, $93.1M for share buybacks, and $38.3M paid in dividends.

Trading at $104.41 as of October 16, 2026, Preferred Bank carries a market capitalization of $1.24B. The stock trades at a trailing P/E of 9.7x and a forward P/E of 8.3x, both lower than the median of its US-listed Financial Services peers at 12.1x and 10.8x, respectively. Its price-to-sales multiple is 4.3x compared to the peer median of 3.2x, while its PEG ratio sits at 0.94. Over the past year, the stock returned 27.5%, outperforming the S&P 500 return of 16.8%, while its 5-year return of 81.0% trailed the S&P 500 return of 83.0%.

Preferred Bank pays a forward annual dividend of $3.20 per share, delivering a dividend yield of 3.07% with a payout ratio of 29.2%. The company has paid quarterly dividends for 13 consecutive years and posted a 5-year annualized dividend growth rate of 20.1%. Its last ex-dividend date was October 5, 2026.

Wall Street coverage consists of 1 Strong Buy, 1 Buy, and 4 Hold ratings among 6 analysts. The consensus mean price target is $114.40, indicating a 9.6% upside from the last close of $104.41. For the current fiscal year ending December 31, 2026, analysts estimate EPS of $10.76 on revenue of $291.4M. The bank has beaten EPS estimates in 3 of the last 4 quarters, and its next earnings date is October 23, 2026.

This page is an AI-written research summary of Preferred Bank (PFBC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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