June 22, 2021

Stock News in Focus: Preferred Bank (NASDAQ:PFBC)

Preferred Bank (NASDAQ:PFBC) stock observed trading -48.17% off 52-week high price. On the other end, the stock has been noted 66.82% away from low price over the last 52-weeks. The stock disclosed a move of -5.98% away from 50 day moving average and -19.43% away from 200 day moving average. Moving closer, we can see that shares have been trading 1.02% off 20-day moving average. It has market cap of $506.46M and dividend yield of 3.59%.

On Oct. 19, 2020, Preferred Bank (NASDAQ:PFBC) declared results for the quarter ended September 30, 2020. Preferred Bank (the Bank) reported net income of $17.1 million or $1.15 per diluted share for the third quarter of 2020. This is down from net income of $20.0 million or $1.32 per diluted share for the third quarter of 2019 but easily surpasses net income of $15.3 million or $1.03 per diluted share for the second quarter of 2020. The primary reason for the decrease compared to the prior year is the provision for credit losses, which totaled $9.0 million for the third quarter of 2020, as compared to $900,000 in the third quarter of 2019. Compared to the second quarter of 2020, however, the provision for credit losses increased $1.5 million over the $7.5 million recorded in that period, yet net income increased $1.9 million or $0.12 per diluted share. This was due to an increase in net interest income, an increase in noninterest income coupled with a decrease in noninterest expense.

Li Yu, Chairman and CEO, commented, We are pleased to report third quarter net income of $17.1 million or $1.15 per share. Our earnings compare favorably with the previous two quarters. In fact, on a pre-tax, pre-provision (PTPP) basis, our third quarter and YTD earnings reached a record high. The primary reasons for the performance was significantly reduced interest cost and effective overhead control. The Bank’s third quarter efficiency ratio clocked in at 29.88%. Our net interest margin, however, compressed slightly from the previous quarter due to a larger balance sheet and much higher level of cash. Under the current interest rate environment, excess cash reduces our profitability.

Deposits continued to grow in the third quarter as we saw a $64.2 million or 1.5% increase from June 30, 2020. However, our loan balances came in $14 million below the previous quarter. The prolonged shut down of our trade area has reduced the opportunities for new loans. The uncertainties further make many new opportunities proportionately less attractive.

The USA based company Preferred Bank moved with change of -1.53% to $33.43 with the total traded volume of 45321 shares in recent session versus to an average volume of 55.95K. The stock was observed in the 5 days activity at -4.21%. The one month performance of stock was -0.59%. PFBC’s shares are at -20.50% for the quarter and driving a -36.53% return over the course of the past year and is now at -44.37% since this point in 2018.  Right now the stock beta is 1.49. The average volatility for the week and month was at 3.45% and 3.50% respectively. There are 14.88M shares outstanding and 13.59M shares are floated in market.