LOS ANGELES - Preferred Bank (NASDAQ: NASDAQ:PFBC), a prominent independent commercial bank in California, announced today that its Board of Directors has approved a quarterly cash dividend. Shareholders of record as of July 5, 2024, will receive a dividend of $0.70 per share on July 19, 2024.
The bank, chartered by the State of California, operates primarily within the state, with a network of full-service branches across several cities including Alhambra, Century City, City of Industry, and San Francisco, among others. Preferred Bank also has a presence on the East Coast with a branch in Flushing, New York, and extends to the South with a branch in Sugar Land, Texas.
This financial institution caters to a diverse clientele, offering a broad range of deposit and loan products and services. While it initially served the Chinese-American community, Preferred Bank has expanded its customer base to a wider mainstream market. It continues to support the needs of small and mid-sized businesses, entrepreneurs, real estate developers, professionals, and high net worth individuals with personalized services.
The bank's decision to distribute dividends reflects its ongoing commitment to providing value to its shareholders. The announcement is based on a press release statement and is intended to inform investors and the public of the upcoming dividend payment.
In other recent news, Preferred Bank reported a net income of $33.5 million for the first quarter of 2024, marking steady growth with loan growth annualized at 4% and deposit growth at 6.5%. Despite a slight decline in the net interest margin to 4.19%, the bank remains optimistic about future growth and the banking industry's outlook. In line with this, the bank is set to increase its personnel with the opening of new branches and loan offices.
In another development, DA Davidson adjusted its price target for Preferred Bank, increasing it from $81.00 to $86.00, while retaining a Neutral rating on the stock. The revision, based on anticipated stronger top-line revenue and a higher forward net interest margin, is a result of updated estimates reflecting a positive outlook on the bank's financial performance.
The firm's analysis suggests that Preferred Bank could achieve better financial results than initially projected, though it continues to advise a cautious stance with a Neutral rating.
These recent developments highlight the bank's robust financial performance and the positive outlook from analysts, providing valuable insights for investors.
InvestingPro Insights
Preferred Bank (NASDAQ: PFBC) continues to demonstrate its commitment to shareholder returns, as evidenced by the latest dividend announcement. This marks another year where the bank has upheld its practice of rewarding investors, aligning with the InvestingPro Tips that highlight the bank's history of raising its dividend for 3 consecutive years and maintaining dividend payments for 11 consecutive years.
Investors might find comfort in the bank's financial stability, as Preferred Bank trades at an attractive valuation with a P/E ratio of 7.1, which is even more compelling when considering the adjusted P/E ratio for the last twelve months as of Q1 2024 at 6.9. The bank's prudent financial management is further underscored by its PEG Ratio of 0.85, indicating potential for growth at a reasonable price.
The solid financial footing of Preferred Bank is also reflected in its market capitalization of approximately $998.83 million USD. Moreover, the company's commitment to shareholder returns is not just limited to dividends; management has been actively involved in share buybacks, which is often a sign of confidence in the company's future prospects.
For those interested in a deeper dive into the financial health and future outlook of Preferred Bank, additional InvestingPro Tips are available, including insights on earnings revisions by analysts and profitability metrics. There are 10 more tips listed on InvestingPro, which can be accessed at https://www.investing.com/pro/PFBC. Don't forget to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further valuable insights for informed investment decisions.
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