FRC - Preferred Bank Showing Some Strains But Still Well-Positioned And Undervalued
As an exceptionally asset-sensitive bank with a fast-growing Southern California lending business, the past couple of years have been particularly strong for Preferred Bank (PFBC). Prepayments and intense lending competition remain notable headwinds, and the rate cycle isn’t going to be nearly as helpful from this point on, but Preferred looks like a higher-risk, faster-growing small bank that is worth consideration from investors who want more dynamic options in the banking sector.
A Mixed Fourth Quarter
I would say that Preferred had a good fourth quarter on balance, though there was a notable