Preferred Bank Advances Share Buyback Plan for Growth Strategy
Preferred Bank Secures Regulatory Approval for Buyback Program
Preferred Bank (NASDAQ: PFBC), an independent commercial bank operating primarily in California, has recently received the green light from regulatory bodies to proceed with its shareholder-backed $150 million stock repurchase plan. This momentous approval allows the bank to continue boosting shareholder value through strategic buybacks.
Progress of the Stock Repurchase Plan
As of now, the bank has successfully repurchased approximately $84.3 million of its common stock during the years 2023 and 2024. Originally, the regulatory approval for this repurchase initiative lapsed in January 2025, necessitating the recent request for renewal. With shareholder and regulatory approvals in place, the bank plans to repurchase an additional $65.7 million in stocks before the subsequent expiration date in May 2025.
Impact of Stock Buybacks
Throughout this repurchase program, Preferred Bank has acquired around 1.3 million shares at a weighted average price of $63.94 per share. The share repurchases will occur in the open market, a strategy aimed at enhancing overall shareholder equity and market performance. These buybacks represent not just a financial strategy but also a strong commitment to returning capital to shareholders.
About Preferred Bank
Headquartered in California, Preferred Bank is recognized as one of the leading independent commercial banks in the region. The institution is chartered under the State of California and is insured by the Federal Deposit Insurance Corporation (FDIC), offering security to its depositors. The bank operates its core banking business from its main office in Los Angeles, alongside twelve additional full-service branches across California, and has extended its reach with branches in New York and Texas, as well as a Loan Production Office in Sunnyvale, California.
Comprehensive Banking Solutions
With a wide array of banking and financial services, Preferred Bank caters to both commercial businesses and individual consumers. The bank specializes in personalized deposit services, real estate financing, commercial loans, and trade finance solutions, targeting small to mid-sized enterprises, entrepreneurs, and high-net-worth individuals.
Customer Base and Market Presence
Initially founded to cater to the Chinese-American community, the bank has since adapted its services to capture a broader audience, now appealing to the diverse mainstream market. However, it continues to enjoy significant patronage from ethnic Chinese populations migrating to California from various parts of East Asia.
Leadership and Corporate Contacts
Edward J. Czajka is the Executive Vice President and Chief Financial Officer of Preferred Bank. For inquiries, he can be reached at (213) 891-1188. Additionally, financial information can be requested through Jeffrey Haas at Financial Profiles via (310) 622-8240 or PFBC@finprofiles.com.
Frequently Asked Questions
What is the main purpose of Preferred Bank's stock repurchase plan?
The stock repurchase plan aims to enhance shareholder value by buying back shares, which can potentially increase the stock's market price.
How much of the stock has been repurchased so far?
Preferred Bank has repurchased approximately $84.3 million of its common stock during 2023 and 2024.
What are the key benefits of the recent regulatory approval?
The regulatory approval allows the bank to continue repurchasing shares, which can improve earnings per share and provide a return of capital to shareholders.
Who can be contacted for more information about Preferred Bank?
For detailed inquiries, Edward J. Czajka or Jeffrey Haas can be contacted using the provided phone numbers and email addresses.
Where does Preferred Bank operate?
Preferred Bank operates primarily in California, with branches also located in New York and Texas, as well as a Loan Production Office in California.
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