PFBC - Preferred Bank: How The Q2 Conference Call Removed My Worries On This 3% Yielding Bank

Introduction

I have been looking at some of the hundreds of regional banks in the US lately as some of those banks appear to be attractively priced. During my due diligence phase (which is ongoing), I encountered one case where I would have avoided the shares based on the financial statements, but initiated exposure after the conference call as the bank’s management team clearly explained the details of the income statement and the element I had a big issue with. Since the call, I have increased my exposure to Preferred Bank (PFBC) by