Want to see PFBC full AI Analyst Report?
Top Page
Preferred Bank
(NASDAQ:PFBC)
Select Model
Select Model
Rating:80Outperform
Price Target:
$125.00
â–²(20.87% Upside)
Action:Reiterated
Date:10/23/26
PFBC scores well primarily due to strong financial performance (profitability and cash generation) and attractive valuation (low P/E with a solid dividend). Technicals are supportive with price above major moving averages, while the latest earnings call adds a measured note of caution due to funding competition, large near-term CD maturities, and credit-resolution timing risk.
Positive Factors
Strong profitability and revenue growth
High profitability combined with strong TTM revenue growth indicates meaningful operating earnings power and renewed business momentum. If sustained, this performance can support capital generation, fund expansion, and strengthen the bank’s competitive position over the next several quarters.
Negative Factors
Higher leverage than historical levels
The substantial increase in debt relative to equity reduces balance-sheet flexibility compared with prior years. Higher leverage can increase sensitivity to funding costs and credit losses, potentially constraining capital allocation and limiting the bank’s resilience during weaker operating conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and revenue growth
High profitability combined with strong TTM revenue growth indicates meaningful operating earnings power and renewed business momentum. If sustained, this performance can support capital generation, fund expansion, and strengthen the bank’s competitive position over the next several quarters.
Read all positive factors
Preferred Bank (PFBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.26B
Dividend Yield3%
Average Volume (3M)154.45K
Price to Earnings (P/E)9.6
Beta (1Y)0.70
Revenue Growth-0.13%
EPS Growth9.53%
CountryUS
Employees324
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)11.15
Shares Outstanding11,853,116
10 Day Avg. Volume93,869
30 Day Avg. Volume154,451
Financial Highlights & Ratios
PEG Ratio1.08
Price to Book (P/B)1.51
Price to Sales (P/S)2.38
P/FCF Ratio7.13
Enterprise Value/Market Cap0.76
Enterprise Value/Revenue1.91
Enterprise Value/Gross Profit3.41
Enterprise Value/Ebitda4.96
Forecast
1Y Price Target
$120.00Price Target Upside16.03% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)10.75
Revenue Forecast (FY)$291.36M
Preferred Bank Business Overview & Revenue Model
Company Description
Preferred Bank offers a wide array of commercial banking products and services throughout the United States. Its primary clients include small and mid-sized businesses and their owners, entrepreneurs, real estate developers and investors, various ...
How the Company Makes Money
Preferred Bank generates earnings primarily through traditional banking activities. (1) Net interest income: The largest driver is the spread between interest earned on loans and investment securities and interest paid on customer deposits and oth...
Preferred Bank Earnings Call Summary
Earnings Call Date:Oct 23, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 27, 2027
Earnings Call Sentiment Neutral
The call was cautiously positive, supported by $32.9 million of net income, deposit growth, a stronger loan pipeline, cost control, slower credit migration, and a favorable 2027 outlook. These positives were balanced by competitive deposit conditions, a modest loan decline, heavy fourth-quarter CD maturities, delayed nonaccrual resolutions, and elevated classified loans subject to court proceedings.Positive Updates
Third-Quarter Net Income
Preferred Bank reported third-quarter net income of $32.9 million, or $2.73 per share. Results included a $2.1 million recovery of interest income that negatively affected the quarter.
Negative Updates
Competitive Deposit Environment
Management said the deposit market is very competitive and that this condition will likely continue into 2027. The bank is facing increased competition from non-bank institutions, while some customers are moving excess funds into Treasuries.
Read all updates
Q3-2026 Updates
Positive
Negative
Third-Quarter Net Income
Preferred Bank reported third-quarter net income of $32.9 million, or $2.73 per share. Results included a $2.1 million recovery of interest income that negatively affected the quarter.
Read all positive updates
Company Guidance
Management expects just under $1.7 billion of CDs maturing in the fourth quarter, with a weighted average yield of 3.81% and rollovers likely to come on anywhere between 3.75%-4%; fourth-quarter expenses are expected to be somewhere between $23 million and $24 million. Management said the pipeline seems to be very solid and is very hopeful that in the fourth quarter to have good, solid growth, with a stronger pipeline and hopefully by Q4 a couple of large loans disposed, although this totally depends on the court decision. Deposit-market competition will likely go into the year 2027, while management expects a strong 2027 economy and relatively stable interest rate environment and is looking forward to a good 2027 year; if the Fed fund is going to adjust higher, it will further benefit net interest margin.Preferred Bank Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 506.34M | 499.04M | 520.43M | 481.76M | 301.43M | 218.78M |
| Gross Profit | 282.63M | 274.30M | 271.86M | 283.14M | 247.05M | 194.62M |
| EBITDA | 194.71M | 191.29M | 186.18M | 211.57M | 181.09M | 135.72M |
| Net Income | 135.44M | 133.63M | 130.66M | 150.04M | 128.84M | 95.24M |
Balance Sheet | ||||||
| Total Assets | 7.73B | 7.60B | 6.92B | 6.66B | 6.43B | 6.05B |
| Cash, Cash Equivalents and Short-Term Investments | 749.82M | 827.10M | 765.51M | 1.20B | 1.18B | 1.48B |
| Total Debt | 385.19M | 383.81M | 165.46M | 168.00M | 168.94M | 170.62M |
| Total Liabilities | 6.94B | 6.81B | 6.16B | 5.96B | 5.79B | 5.46B |
| Stockholders Equity | 793.53M | 789.48M | 763.15M | 695.11M | 630.43M | 586.72M |
Cash Flow | ||||||
| Free Cash Flow | 167.90M | 166.79M | 163.60M | 172.98M | 143.40M | 119.03M |
| Operating Cash Flow | 171.91M | 168.14M | 164.52M | 175.39M | 143.76M | 119.63M |
| Investing Cash Flow | -470.28M | -623.80M | -421.62M | -98.03M | -699.89M | -620.01M |
| Financing Cash Flow | 291.93M | 497.24M | 131.76M | 65.97M | 273.05M | 791.52M |
Preferred Bank Technical Analysis
Positive
103.42
Price Trends
104.23
Positive
103.47
Positive
96.75
Positive
Market Momentum
0.43
Negative
56.98
Neutral
87.19
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PFBC, the sentiment is Positive. The current price of 103.42 is below the 20-day moving average (MA) of 104.59, below the 50-day MA of 104.23, and above the 200-day MA of 96.75, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 56.98 is Neutral, neither overbought nor oversold. The STOCH value of 87.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PFBC.
Preferred Bank Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.26B | 9.57 | 16.84% | 3.00% | -0.13% | 9.53% | |
75 Outperform | $953.22M | 10.75 | 11.20% | 3.45% | 4.08% | 38.09% | |
73 Outperform | $708.60M | 11.85 | 10.44% | 1.91% | -2.10% | 110.95% | |
73 Outperform | $402.24M | 9.77 | 10.64% | 3.00% | 6.34% | 35.15% | |
68 Neutral | $1.80B | 14.07 | 5.61% | 3.98% | 7.35% | 178.63% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $447.26M | 10.13 | 8.34% | 2.42% | 4.40% | 74.44% |
* Financial Sector Average
PFBC
Preferred Bank
106.72
16.25
17.96%
HOPE
Hope Bancorp
14.07
3.87
37.91%
HAFC
Hanmi Financial
32.15
5.98
22.86%
RBB
Rbb Bancorp
26.44
7.47
39.39%
BCAL
California BanCorp
22.04
5.20
30.86%
PCB
PCB Bancorp
28.64
7.93
38.30%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.