It’s been a while since I’ve updated my thoughts on Preferred Bank (PFBC), but in the roughly three years since my last update on this small, well-run California-based bank, the shares have comfortably outperformed the peer group (by around 30%), as the bank’s high credit quality/underwriting ability and low expenses have seen it through the challenges and disruptions created by the pandemic.
I still expect the bank to generate long-term core earnings growth in the high single-digits, and I expect dividend growth in the double digits. I do also have some concerns regarding competition and a time-lag for realizing benefits from higher rates, but with upside toward $90, this is still a name to consider.
To read more, follow the link below:
Preferred Bank Offers An Attractive Mix Of Loan Growth, Efficiency, And Rate Leverage
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