LOS ANGELES - Preferred Bank (NASDAQ:PFBC), a prominent independent commercial bank in California with a market capitalization of $1.1 billion and a GREAT financial health score according to InvestingPro, announced the appointment of Nick Pi as Executive Vice President and Chief Risk Officer. Mr. Pi, who has been serving as the bank’s Chief Credit Officer since 2015, will retain oversight of the credit function while also managing the Bank Secrecy Act (BSA) and Compliance Departments.
The decision to promote Mr. Pi was made by Preferred Bank’s Board of Directors as part of an initiative to enhance the bank’s enterprise risk oversight. Li Yu, Chairman and CEO, expressed confidence in Pi’s leadership abilities and his extensive experience in credit administration. The bank’s strong financial position is reflected in its impressive 17% return on equity and maintained dividend payments for 12 consecutive years, as reported by InvestingPro.
This strategic move aligns with Preferred Bank’s commitment to maintaining robust risk management practices as it continues to serve a diverse clientele, including small and mid-sized businesses, entrepreneurs, real estate developers, professionals, and high net worth individuals. With a P/E ratio of 8.7 and three analysts recently revising earnings estimates upward, the bank demonstrates strong financial fundamentals.
Preferred Bank operates from its main office in Los Angeles and has multiple full-service branch banking offices across California, two branches in New York, and one in Sugar Land, Texas. It also maintains a Loan Production Office in Sunnyvale, California. The bank’s services cater to both commercial and consumer customers, offering a wide range of deposit and loan products. The bank maintains a healthy 3.6% dividend yield and has shown consistent dividend growth, raising payments for four consecutive years. For detailed analysis and more insights, access the comprehensive Pro Research Report available on InvestingPro.
While Preferred Bank was originally established as a Chinese-American Bank, it has expanded its customer base beyond the ethnic Chinese community, benefiting from the significant migration to California from China and other East Asian regions.
The appointment reflects the bank’s ongoing efforts to strengthen its leadership team and ensure comprehensive risk management across its operations. The information about this executive change is based on a press release statement from Preferred Bank.
In other recent news, Preferred Bank reported its Q1 2025 earnings, revealing an earnings per share (EPS) of $2.23, which did not meet the forecasted $2.33. The bank’s revenue also fell short of expectations, totaling $66.65 million compared to the anticipated $70.46 million. This marks a deviation from previous quarters where the bank typically met or exceeded expectations. The net interest margin was reported at 3.75%, slightly below the normalized rate of 3.94%, influenced by reversals of interest income related to non-performing loans. Preferred Bank is maintaining a cautious outlook due to ongoing global tariff uncertainties and potential supply chain disruptions. The bank anticipates potential stabilization in its loan portfolio by late Q2 2025. During the earnings call, it was noted that the bank’s deposits increased by 2.6% quarter-over-quarter, despite a 0.1% decrease in its loan portfolio. Analysts from firms like Piper Sandler have been closely monitoring the bank’s financial health and the impact of broader economic challenges.
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