Detailed financial statements for Preferred Bank (PFBC): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year with up to 20 years of history.
Preferred Bank offers a wide array of commercial banking products and services throughout the United States. Its primary clients include small and mid-sized businesses and their owners, entrepreneurs, real estate developers and investors, various professionals, and high-net-worth individuals. The institution provides diverse deposit options, such as checking, savings, and money market accounts.
Analysis Summary
Preferred Bank reported revenue of $499.0M in the most recent fiscal year, growing at a 5-year CAGR of 17.8%. Net income reached $133.6M, with a 14.0% 5-year CAGR.
Trailing-twelve-month margins: gross margin 55.8%, operating margin 38.2%, net margin 26.7%. Free cash flow grew at 10.3% CAGR over 5 years.
At the current price of $106.18, PFBC trades at a P/E of 9.37 and an ROE of 17.32%. Market capitalisation stands at $1.3B.
Balance sheet quality for PFBC: current ratio of 149.6, net cash position of $443.3M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $166.8M represents 125% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $127.5M | $162.9M | $204.0M | $233.0M | $220.3M | $218.8M | $301.4M | $481.8M | $520.4M | $499.0M |
| Cost of Revenue | $25.1M | $33.4M | $51.1M | $65.5M | $66.1M | $24.2M | $54.4M | $198.6M | $248.6M | $224.7M |
| Gross Profit | $102.4M | $129.5M | $152.9M | $167.4M | $154.2M | $194.6M | $247.1M | $283.1M | $271.9M | $274.3M |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $28.1M | $32.3M | $37.0M | $41.5M | $40.1M | $43.2M | $49.4M | $52.1M | $54.9M | $66.8M |
| Operating Expenses | $42.7M | $49.0M | $54.2M | $56.0M | $57.4M | $60.8M | $67.9M | $73.3M | $87.8M | $84.8M |
| Operating Income | $59.7M | $80.5M | $98.7M | $111.4M | $96.9M | $133.8M | $179.2M | $210.6M | $184.0M | $189.5M |
| EBITDA | $60.6M | $81.5M | $99.7M | $112.7M | $98.8M | $135.7M | $181.1M | $211.6M | $186.2M | $191.3M |
| Interest Expense | $18.7M | $27.9M | $40.9M | $62.1M | $40.1M | $25.2M | $47.0M | $188.6M | $236.5M | $215.6M |
| Pre-tax Income | $59.7M | $80.5M | $98.7M | $111.4M | $96.9M | $133.8M | $179.2M | $209.9M | $184.0M | $189.5M |
| Income Tax | $23.3M | $37.1M | $27.7M | $33.0M | $27.4M | $38.6M | $50.4M | $59.8M | $53.4M | $55.9M |
| Net Income | $36.4M | $43.4M | $71.0M | $78.4M | $69.5M | $95.2M | $128.8M | $150.0M | $130.7M | $133.6M |
| EPS | $2.58 | $2.97 | $4.64 | $5.16 | $4.65 | $6.41 | $8.84 | $10.64 | $9.80 | $10.61 |
| EPS (Diluted) | $2.56 | $2.96 | $4.64 | $5.16 | $4.65 | $6.41 | $8.70 | $10.52 | $9.65 | $10.41 |
| Shares Outstanding (Diluted) | $14.0M | $14.5M | $15.1M | $15.1M | $14.9M | $14.9M | $14.8M | $14.3M | $13.6M | $12.8M |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $306.3M | $446.8M | $526.8M | $498.6M | $739.5M | $1.03B | $747.5M | $890.9M | $765.5M | $807.1M |
| Short-term Investments | $199.8M | $188.2M | $182.4M | $240.6M | $239.7M | $451.9M | $428.3M | $313.8M | $3000 | $20.0M |
| Receivables | $9.6M | $14.0M | $14.3M | $18.3M | $23.7M | $14.6M | $23.6M | $36.3M | $35.8M | $34.2M |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Assets | $515.7M | $649.0M | $723.4M | $757.6M | $1.00B | $1.50B | $1.20B | $1.24B | $801.3M | $861.3M |
| Property, Plant & Equipment | $5.3M | $5.7M | $7.5M | $29.3M | $27.9M | $32.5M | $30.7M | $31.7M | $21.6M | $38.6M |
| Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Intangible Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Assets | $3.22B | $3.77B | $4.22B | $4.63B | $5.14B | $6.05B | $6.43B | $6.66B | $6.92B | $7.60B |
| Accounts Payable | $3.2M | $3.8M | $6.8M | $3.3M | $1.2M | $715000 | $2.6M | $16.1M | $16.5M | $16.5M |
| Short-term Debt | $4.4M | $8000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $5.8M |
| Total Current Liabilities | $2.77B | $3.27B | $3.65B | $3.99B | $4.44B | $5.23B | $5.56B | $5.73B | $5.93B | $5.8M |
| Long-term Debt | $125.4M | $105.4M | $100.4M | $99.2M | $99.3M | $147.8M | $148.0M | $148.2M | $148.5M | $348.7M |
| Total Liabilities | $2.92B | $3.41B | $3.80B | $4.16B | $4.62B | $5.46B | $5.79B | $5.96B | $6.16B | $6.81B |
| Retained Earnings | $108.3M | $139.7M | $194.9M | $255.1M | $301.0M | $373.0M | $475.1M | $592.3M | $685.1M | $780.6M |
| Total Equity | $298.1M | $355.0M | $416.7M | $470.0M | $525.4M | $586.7M | $630.4M | $695.1M | $763.2M | $789.5M |
| Total Debt | $129.8M | $105.4M | $100.4M | $119.7M | $118.0M | $170.6M | $168.9M | $168.0M | $165.5M | $383.8M |
| Net Debt | -$376.4M | -$529.7M | -$608.8M | -$619.6M | -$861.1M | -$1.31B | -$1.01B | -$1.04B | -$600.1M | -$443.3M |
| Working Capital | -$2.26B | -$2.62B | -$2.92B | -$3.23B | -$3.44B | -$3.73B | -$4.36B | -$4.48B | -$5.13B | $855.5M |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $36.4M | $43.4M | $71.0M | $78.4M | $69.5M | $95.2M | $128.8M | $150.0M | $130.7M | $133.6M |
| Depreciation & Amortization | $929000 | $990000 | $953000 | $1.3M | $1.9M | $1.9M | $1.9M | $1.7M | $2.2M | $1.7M |
| Stock-based Compensation | $2.4M | $3.6M | $8.0M | $7.8M | $8.9M | $9.1M | $8.4M | $5.8M | $9.2M | $10.2M |
| Change in Working Capital | $7.9M | -$8.9M | $7.8M | -$7.4M | -$2.8M | $13.3M | -$3.0M | -$1.0M | $7.4M | -$693000 |
| Operating Cash Flow | $52.6M | $53.2M | $99.0M | $86.8M | $103.8M | $119.6M | $143.8M | $175.4M | $164.5M | $168.1M |
| Capital Expenditure | -$641000 | -$1.4M | -$2.8M | -$6.1M | -$1.5M | -$603000 | -$356000 | -$2.4M | -$919000 | -$1.4M |
| Acquisitions | 0 | 0 | -$14.0M | -$10.4M | -$8.4M | 0 | 0 | 0 | 0 | 0 |
| Stock Repurchased | 0 | -$14.1M | -$1.3M | -$20.5M | -$2.4M | -$17.7M | -$33.3M | -$55.2M | -$38.2M | -$93.1M |
| Dividends Paid | -$8.4M | -$11.0M | -$15.6M | -$18.3M | -$17.9M | -$21.4M | -$25.1M | -$31.1M | -$37.5M | -$38.3M |
| Free Cash Flow | $52.0M | $51.8M | $96.2M | $80.7M | $102.3M | $119.0M | $143.4M | $173.0M | $163.6M | $166.8M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +27.7% | +25.2% | +14.2% | -5.4% | -0.7% | +37.8% | +59.8% | +8.0% | -4.1% | |
| Net Income Growth (YoY) | +19.3% | +63.6% | +10.4% | -11.4% | +37.1% | +35.3% | +16.4% | -12.9% | +2.3% | |
| EPS Growth (YoY) | +15.1% | +56.2% | +11.2% | -9.9% | +37.8% | +37.9% | +20.4% | -7.9% | +8.3% | |
| Shares Change (YoY) | +3.6% | +3.9% | +0.0% | -1.2% | -0.1% | -0.4% | -3.7% | -5.0% | -5.3% | |
| FCF Growth (YoY) | -0.3% | +85.7% | -16.2% | +26.8% | +16.4% | +20.5% | +20.6% | -5.4% | +1.9% | |
| Gross Margin | 80.3% | 79.5% | 75.0% | 71.9% | 70.0% | 89.0% | 82.0% | 58.8% | 52.2% | 55.0% |
| Operating Margin | 46.8% | 49.4% | 48.4% | 47.8% | 44.0% | 61.2% | 59.4% | 43.7% | 35.4% | 38.0% |
| EBITDA Margin | 47.5% | 50.0% | 48.9% | 48.4% | 44.8% | 62.0% | 60.1% | 43.9% | 35.8% | 38.3% |
| Net Margin | 28.5% | 26.6% | 34.8% | 33.6% | 31.5% | 43.5% | 42.7% | 31.1% | 25.1% | 26.8% |
| FCF Margin | 40.8% | 31.8% | 47.2% | 34.6% | 46.4% | 54.4% | 47.6% | 35.9% | 31.4% | 33.4% |
| Effective Tax Rate | 39.1% | 46.1% | 28.1% | 29.7% | 28.3% | 28.8% | 28.1% | 28.5% | 29.0% | 29.5% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $3.72 | $3.58 | $6.39 | $5.36 | $6.87 | $8.01 | $9.68 | $12.13 | $12.07 | $12.99 |
| Dividends Per Share | $0.60 | $0.76 | $1.04 | $1.21 | $1.20 | $1.44 | $1.70 | $2.18 | $2.77 | $2.98 |
| Shares Outstanding (Basic) | $13.9M | $14.4M | $15.1M | $15.1M | $14.9M | $14.9M | $14.6M | $14.1M | $13.3M | $12.6M |
What to look at in Banking companies
- Efficiency Ratio (<=55%) — Operating expenses / revenue. Top banks below 55%.
- ROA (>=1%) — How much they earn per dollar of assets. ROE misleads in banks due to leverage.
- ROTCE (>=12%) — Return on Tangible Common Equity. Strips goodwill and intangibles.
- Equity / Assets (Tier 1 proxy) (>=8%) — Capital ratio proxy. FMP does not expose regulatory Tier 1 directly.
- P/B (1.0-1.5x) — Classic banking metric. <1x can be opportunity or distress.
- Sustainable dividend yield (>=2%, <8%) — EU banks pay 5-7% normally. >8% is distress signal.
Profitability
| Return on Equity | 17.32% |
| Return on Invested Capital | 1.75% |
| Return on Assets | 1.75% |
| Gross Margin | 55.82% |
| Operating Margin | 38.22% |
| Net Margin | 26.75% |
Financial Health
| Debt / Equity | 0.49 |
| Current Ratio | 255.01 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 0.53 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 20.32 | 19.64 | 9.34 | 11.65 | 10.85 | 11.20 | 8.44 | 6.87 | 8.81 | 8.90 |
| P/B | 2.44 | 2.37 | 1.57 | 1.93 | 1.43 | 1.82 | 1.73 | 1.48 | 1.51 | 1.51 |
| P/S | 5.71 | 5.17 | 3.20 | 3.88 | 3.41 | 4.88 | 3.61 | 2.14 | 2.22 | 2.38 |
| Gross Margin | 80.3% | 79.5% | 75.0% | 71.9% | 70.0% | 89.0% | 82.0% | 58.8% | 52.2% | 55.0% |
| Operating Margin | 46.8% | 49.4% | 48.4% | 47.8% | 44.0% | 61.2% | 59.4% | 43.7% | 35.4% | 38.0% |
| Net Margin | 28.5% | 26.6% | 34.8% | 33.6% | 31.5% | 43.5% | 42.7% | 31.1% | 25.1% | 26.8% |
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