Preferred Bank (PFBC) announces $125 million share repurchase plan

Preferred Bank (NASDAQ: PFBC), one of the largest independent commercial banks in California, today reported that the shareholders have approved a new $125 million stock repurchase plan. Also, on May 8, 2025, the Bank completed its prior stock repurchase plan. This was the final portion of the Bank’s $150 million repurchase authorized by shareholders in 2023. The final tranche of repurchase activity saw the Bank repurchase 818,059 shares for total consideration of $65.7 million over the first and second quarters of 2025. For the entire $150 million repurchase, the Bank repurchased 2,146,252 shares at an average price of $70.13 per share.

For the new $125 million repurchase, the Bank will be required to gain regulatory approval due to the Bank’s corporate structure of having no holding company. It is expected that these approvals should be obtained in relatively short order.

Chairman and CEO Li Yu stated, “As organic growth has slowed, the Bank’s capital ratios will continue to climb due to our high level of profitability. In this setting, buying back our common stock is a great use of the Bank’s excess capital and an indirect way of returning capital to our shareholders.”

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