LOS ANGELES, June 20, 2024 (GLOBE NEWSWIRE) -- Preferred Bank (NASDAQ: PFBC), one of the largest independent commercial banks in California, today reported that the Board of Directors has declared a quarterly cash dividend of $0.70 per share, payable on July 19, 2024 to holders of record on July 5, 2024. About Preferred Bank | --- | --- | |--------------------------|------------------------| | | | | AT THE COMPANY: | AT FINANCIAL PROFILES: | | Edward J. Czajka | Jeffrey Haas | | Executive Vice President | G ...

Preferred Bank (NASDAQ:PFBC) is a small bank, with equity of about $700 million and total assets of $6.75 billion. It is based in Los Angeles, and its strong performance in recent years is making it interesting in the eyes of investors. In particular, its fast-growing dividend is its strength, as is its better-than-average profitability. However, there are also weaknesses that could make this bank's future less rosy. Future prospects and profitability Last quarter loan growth was 4% annualized, which is a p ...

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Preferred Bank (NASDAQ:PFBC) Q1 2024 Earnings Conference Call April 23, 2024 2:00 PM ET Matthew Clark - Piper Sandler Andrew Terrell - Stephens David Feaster - Raymond James Thank you Nick. Hello everyone. Thank you for joining us to discuss Preferred Bank's financial results for the first quarter ended March 31, 2024. With me today for management are Chairman and CEO Li Yu, President and Chief Operating Officer Wellington Chen, Chief Financial Officer Edward Czajka, and Chief Credit Officer, Nick Pi. Manag ...

Operator I would now like to turn the conference over to Jeff Haas with Financial Profiles. Please go ahead. Thank you, Rocco. Hello, everyone and thank you for joining us to discuss Preferred Bank's financial results for the fourth quarter ended December 31, 2023. With me today from management are Chairman and CEO, Li Yu; President and Chief Operating Officer, Wellington Chen; Chief Financial Officer, Edward Czajka; and Chief Credit Officer, Nick Pi. Management will provide a brief summary of the results a ...

I mean if that issue doesn't get resolved, everybody will have to worry about the large DDA they are getting from our customers in changing the nature of liquidity and coverage. So I don't know that issues still out there. We don't have an answer to you. But as the pure dollar amount of DDA, we're just like everybody else seeing that small migration into the higher cost area but we hope the pace has slowed down. In fact, I hope pace will end in this quarter, but time is to tell that. Yes. We -- obviously, I ...

Financial Data and Key Metrics Changes - The net income for the second quarter was $37.9 million, translating to $2.61 per share, with a deposit increase of $181 million despite a challenging environment [92] - The total cost of deposits for June was 3.24%, and the margin was just below 4.5% [18][29] - The bank's total non-performing loans were less than $1 million, with non-performing assets at 0.33 basis points [2] Business Line Data and Key Metrics Changes - Loan growth for the quarter was $61 million, although demand was depressed due to the high interest rate environment [5] - The bank's cash flow was over $1 billion as of June 30, indicating sufficient liquidity to handle any loan growth [19] Market Data and Key Metrics Changes - The bank's uninsured deposits were 39.9% as of June 30, with a liquidity coverage ratio of 41.2% [91] - The bank has a total loan exposure of $114 million in San Francisco, with $34 million in troubled areas [93] Company Strategy and Development Direction - The company is focusing on maintaining a moderate risk posture while navigating a challenging economic environment [50] - The bank plans to ramp up its SBA department in the second half of the year and is still looking to sell originated loans in that department [60] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty about future loan growth due to the unclear economic environment and competition [47] - The company is optimistic about seeing improvements in the economic landscape, hoping for a soft landing and better conditions in the second half of the year [77] Other Important Information - The bank has made additional provisions to increase its reserve ratio to 1.4% and has written down OREO assets for $1.9 million during the quarter [2] - The company has repurchased a total of 281,000 shares in the second quarter, with over 500,000 shares repurchased as of the latest update [94] Q&A Session Summary Question: What was the average purchase price for the shares repurchased in the second quarter? - The average purchase price was around $55, with 501,000 shares repurchased for about $28 million [38] Question: How confident is the company in maintaining the level of non-interest-bearing deposits? - Management indicated that the level of non-interest-bearing deposits has been reasonably stable [39] Question: What types of properties are included in the $34 million of loans in Downtown San Francisco? - The loans consist of seven loans, mostly residential properties, with one office property valued at less than $900,000 [34] Question: How does the company view the current loan demand and appetite for credit? - Management noted that the slowdown in growth is attributed to both demand and appetite, with fewer applicants qualifying for loans [54][56] Question: What is the outlook for the bank's net interest margin going forward? - The margin is expected to remain relatively flat unless there is a quarter-point hike from the Fed, with potential further compression anticipated [63]

[Operator Instructions]. And our first question here will come from Matthew Clark with Piper Sandler. Matthew Clark First one for me, just on the available liquidity, the cash and the borrowings that are available of $1.5 billion relative to the uninsured amount of deposits, I think roughly half of your deposits are about just under $2.7 billion. I guess what's the plan? Or what's kind of the targeted coverage you're looking to get to? Do you -- are you looking at -- it sounds like you're looking to pledge ...

Company Participants Conference Call Participants Matthew Clark - Piper Sandler Andrew Terrell - Stephens Gary Tenner - D.A. Davidson David Feaster - Raymond James Tim Coffey - Janney Operator Good day, and welcome to the Preferred Bank Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Jeff Haas of Financial Profiles. Please go ahead. Jeffrey Haas Management will provide a brief summary of the resul ...

Financial Data and Key Metrics Changes - The company reported a record net income of $35.2 million or $2.40 per fully diluted share for Q3 2022, with a return on equity exceeding 23% [9] - Loan growth moderated to 8.5% for the quarter, with year-to-date growth at 14.1% excluding PPP loans [10] - Deposit growth was recorded at 3.5%, with an increase in deposit costs anticipated to accelerate starting from September [10][11] - The net interest margin expanded by 60 basis points due to a greater increase in loan yields compared to deposit costs [11] Business Line Data and Key Metrics Changes - Credit quality remained stable, with classified assets moderately reduced and no charge-offs reported for the quarter [12] - The loan loss reserve increased to 1.33% of total loans, reflecting a $2.4 million recovery and $2.7 million in new provisions [12] Market Data and Key Metrics Changes - The company acknowledged the macroeconomic environment heading into a recession, prioritizing credit quality and management of deposits and deposit costs [13] Company Strategy and Development Direction - The management emphasized a cautious approach to loan growth, particularly in the real estate sector, due to reduced transaction volumes and higher standards for new loans [26] - The company plans to maintain a conservative capital strategy, focusing on preserving capital during potential recessionary periods [74] Management Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding future net interest margin (NIM) expansion, indicating that the pace of deposit cost increases is influenced by market competition [19] - The company is closely monitoring loan portfolios, particularly commercial real estate loans, but has not identified severe issues at this time [44] Other Important Information - Non-interest expenses increased due to inflationary pressures, with expectations for continued expense growth in the future [51] - The weighted average rate on new loans in September was reported at 5.99% [54] Q&A Session Summary Question: Outlook on NIM given recent rate hikes - Management indicated uncertainty but noted that NIM is expected to continue expanding, albeit not at the same level as Q3 [19] Question: Deposit growth trends and mix shifts - Management aims to maintain current deposit levels and is facing increased competition for deposits [33] Question: Concerns regarding loan growth in a slowing economy - Management expressed cautious optimism for loan growth, particularly in commercial and industrial loans, but acknowledged the uncertainty in the market [26] Question: Non-interest expenses and future run rates - Management confirmed that non-interest expenses are expected to remain elevated due to ongoing inflationary pressures [51] Question: Capital management and share repurchase plans - Management emphasized the importance of maintaining capital during uncertain economic times and indicated a cautious approach to future share repurchases [74][81]