Preferred Bank Announces Share Repurchase Plan

Rhea-AI Summary

Preferred Bank (NASDAQ: PFBC) has received approval to continue its stock repurchase plan initiated in May 2021. Initially, $50 million was allocated for the buyback, with approximately $18 million repurchased in 2021. In May 2022, the Board of Directors announced the recommencement of this plan, allowing for an additional buyback of up to $32 million in common stock. This move is intended to enhance shareholder value and reflects the Bank's ongoing commitment to optimizing its capital structure.

Positive

• Continuation of $50 million stock buyback plan demonstrates commitment to shareholder value.
• Approximately $32 million available for repurchase can positively impact EPS.

Negative

• None.

LOS ANGELES, June 07, 2022 (GLOBE NEWSWIRE) -- Preferred Bank (NASDAQ: PFBC), (“the Bank”), an independent commercial bank, today announced that it had received all the required approvals to continue its stock repurchase plan. In May of 2021, the Bank’s shareholders approved a $50 million share repurchase plan. Under that Plan, the Bank repurchased approximately $18 million worth of common stock in the open market during 2021. In May of 2022, the Board of Directors elected to re-commence the repurchase plan which began in 2021. Therefore, this repurchase plan calls for the repurchase of up to approximately $32 million of common stock in the open market.   

About Preferred Bank

Preferred Bank is one of the larger independent commercial banks headquartered in California. The Bank is chartered by the State of California, and its deposits are insured by the Federal Deposit Insurance Corporation, or FDIC, to the maximum extent permitted by law. The Bank conducts its banking business from its main office in Los Angeles, California, and through eleven full-service branch banking offices in California (Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine, Diamond Bar, Pico Rivera, Tarzana and San Francisco (2)) and one branch in Flushing, New York. In addition, the Bank operates a Loan Production Office in the Houston, Texas suburb of Sugar Land. Preferred Bank offers a broad range of deposit and loan products and services to both commercial and consumer customers. The Bank provides personalized deposit services as well as real estate finance, commercial loans and trade finance to small and mid-sized businesses, entrepreneurs, real estate developers, professionals and high net worth individuals. Although originally founded as a Chinese-American Bank, Preferred Bank now derives most of its customers from the diversified mainstream market but does continue to benefit from the significant migration to California of ethnic Chinese from China and other areas of East Asia.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the Bank’s future financial and operating results, the Bank's plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the Bank’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: changes in economic conditions; changes in the California real estate market; the loss of senior management and other employees; natural disasters or recurring energy shortage; changes in interest rates; competition from other financial services companies; ineffective underwriting practices; inadequate allowance for loan and lease losses to cover actual losses; risks inherent in construction lending; adverse economic conditions in Asia; downturn in international trade; inability to attract deposits; inability to raise additional capital when needed or on favorable terms; inability to manage growth; inadequate communications, information, operating and financial control systems, technology from fourth party service providers; the U.S. government’s monetary policies; government regulation; environmental liability with respect to properties to which the bank takes title; and the threat of terrorism. Additional factors that could cause the Bank's results to differ materially from those described in the forward-looking statements can be found in the Bank’s 2021 Annual Report on Form 10-K filed with the Federal Deposit Insurance Corporation which can be found on Preferred Bank’s website. The forward-looking statements in this press release speak only as of the date of the press release, and the Bank assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contained in the forward-looking statements. For additional information about Preferred Bank, please visit the Bank’s website at www.preferredbank.com.

AT THE COMPANY:	AT FINANCIAL PROFILES:
Edward J. Czajka	Jeffrey Haas
Executive Vice President	General Information
Chief Financial Officer	(310) 622-8240
(213) 891-1188	PFBC@finprofiles.com

FAQ

What is the purpose of Preferred Bank's $32 million stock repurchase plan?

The $32 million stock repurchase plan aims to enhance shareholder value and optimize the Bank's capital structure.

How much common stock has Preferred Bank repurchased under the current plan?

Under the stock repurchase plan initiated in May 2021, Preferred Bank has repurchased approximately $18 million worth of common stock in 2021.

When did Preferred Bank receive approval for its stock repurchase plan?

Preferred Bank received the required approvals to continue its stock repurchase plan on June 7, 2022.

What is the total amount allocated for Preferred Bank's stock buyback program?

The total amount allocated for Preferred Bank's stock buyback program is $50 million.