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LOS ANGELES - Preferred Bank (NASDAQ: PFBC), a prominent independent commercial bank in California, announced a quarterly cash dividend increase to $0.75 per share, scheduled for payment on April 21, 2025, to shareholders on record as of April 7, 2025. This decision by the Board of Directors reflects the bank’s continued financial growth and commitment to providing value to its shareholders. According to InvestingPro data, the bank has maintained dividend payments for 12 consecutive years, with a current dividend yield of 3.62% and a 7.14% dividend growth over the past year.
The bank, chartered by the State of California, operates its main office in Los Angeles and has an extensive network of full-service branches across California, including Alhambra, Century City, City of Industry, and others, with additional branches in Flushing, New York, and Sugar Land, Texas. With a market capitalization of $1.11 billion and an "Overall Good" financial health rating from InvestingPro, Preferred Bank serves a diverse clientele, offering various deposit and loan products and services to commercial and consumer customers alike.
As a financial institution initially established to serve the Chinese-American community, Preferred Bank has broadened its customer base to include a wide range of ethnicities and backgrounds, benefiting from the influx of East Asian immigrants to California.
The bank’s services cater to small and mid-sized businesses, entrepreneurs, real estate developers, professionals, and high net worth individuals, providing personalized banking experiences. Its portfolio includes real estate finance, commercial loans, and trade finance, among other services.
This announcement is based on a press release statement from Preferred Bank. The dividend increase is a testament to the bank’s robust financial health and its strategy of enhancing shareholder returns.
In other recent news, Preferred Bank reported its fourth-quarter 2024 earnings, which revealed a slight miss on the expected earnings per share (EPS) of $2.25 compared to the forecast of $2.35. However, the bank exceeded revenue expectations with $72.81 million, surpassing the anticipated $69.54 million. The bank’s full-year net income reached $131 million, translating to $9.64 per share, with loan growth recorded at 7% and deposit growth at 3.6%. In terms of stock buybacks, Preferred Bank received regulatory approval to resume its $150 million stock repurchase plan, having already repurchased $84.3 million worth of shares. DA Davidson recently increased its price target for Preferred Bank to $101, maintaining a Neutral rating, citing strong net interest income and net interest margin as factors supporting an improved earnings outlook. Despite robust financial performance, the bank faces challenges such as sluggish loan growth due to increased payoff levels. Additionally, Preferred Bank plans to open a new branch in Manhattan in March 2024, signaling continued expansion efforts.
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