PFBC - Preferred Bank Still Remains A Solid Prospect

2024-03-12 05:27:56 ET

Summary

• Preferred Bank's shares have underperformed the broader market, but revenue and profits have remained positive.
• The bank's 2023 fiscal year showed positive growth in net interest income and net income, despite some weakness in non-interest income.
• Deposits and loan values have increased, while securities have decreased. The bank is trading at a low price-to-earnings multiple, but is expensive relative to book value.

Back in July of last year, I was on the hunt for some attractive players in the banking sector. This was because of a crash that was caused in March of that same year that was driven by the failure of multiple institutions. My bargain hunting led me to one firm appropriately named Preferred Bank ( PFBC ). What made the enterprise interesting to me, besides the fact that shares were attractively priced, was the fact that it had a very specific emphasis on serving the Chinese American market. This emphasis had proven beneficial for the company in prior years, allowing it to grow. Eventually, I ended up rating the company a ‘buy’ to reflect my view at the time that shares would likely outperform the broader market for the foreseeable future....

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