Preferred Bank (PFBC) shares increase following a 13.2% dividend increase – December 27, 2021
Preferred bank (CBFP – Free Report) announced a dividend hike for the second time this year. So since the announcement at the end of last week, the company’s shares have risen 2%.
Preferred Bank declared a quarterly cash dividend of 43 cents per share, marking a 13.2% increase from the previous payment. The dividend will be paid on January 21, 2022 to shareholders of record on January 7.
Based on the last day’s closing price of $ 69.66, Preferred Bank’s dividend yield currently stands at 2.47%. This return is not only attractive to income investors, but represents a steady stream of income. This is also impressive compared to the 1.94% of the industry.
Li Yu, Chairman and CEO of Preferred Bank, said, “We are very pleased to increase the dividend as it directly reflects the strong performance of the Bank throughout the pandemic year. “
Preferred Bank continues to increase shareholder value through sustained capital deployment activities. Before the increase, in March, the company announced a dividend hike of 26.7% after a difference of more than two years to 38 cents per share.
In addition to regular dividends, Preferred Bank has implemented a share buyback plan. In August 2021, following approval from the California Department of Financial Protection and Innovation, the company announced a repurchase authorization worth $ 50 million. As of September 30, 2021, nearly $ 32.5 million in shares remained under the program.
Preferred Bank has a strong balance sheet. As of September 30, 2021, its total debt was $ 165.6 million, while its cash and cash equivalents were $ 1.08 billion. So, given a strong balance sheet and strong earnings, the bank’s capital deployment activities appear sustainable.
Preferred Bank shares have gained 3.7% in the past three months, outpacing the industry’s 0.5% gain.
Image source: Zacks Investment Research
Currently, Preferred Bank holds a Zacks Rank # 3 (Hold). You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.
Other banks taking similar action
In recent months, several banks have rewarded their shareholders with increased dividends. Some of them are Farmers National Banc Corp. (FMNB – Free report), United Bankshares, Inc. (UBSI – Free report) and The Community Financial Corporation (TCFC – Free report).
Farmers National announced a sequential increase in the quarterly dividend of 27.3% to 14 cents per share. The dividend will be paid on December 31 to shareholders of record on December 10, 2021.
This is the sixth consecutive quarter of increases for Farmers National. Previously, FMNB had increased the dividend from 10% to 11 cents per share.
Farmers National management noted that “since 2015, our annual cash dividend has grown at an impressive 26% compound annual growth rate, reflecting our strong financial results and our commitment to return capital to shareholders.
United Bankshares announced a dividend of 36 cents per share, which is up 2.9% from the previous payment. The dividend will be paid on January 3, 2022 to shareholders of record on December 2, 2021.
In total, United Bankshares will pay nearly $ 46.5 million on 129.2 million shares. Ahead of the recent hike, UBSI announced an increase in its quarterly dividend from 2.9% to 35 cents per share in November 2019.
Community Financial announced a 17% sequential increase in the quarterly cash dividend. The company will now pay a dividend of 17.5 cents per share. The dividend will be paid on January 24 to shareholders of record on January 10, 2022.
TCFC management noted, “Our performance over the past year has been exceptional, despite many challenges related to the pandemic being felt in the industry and in the country. This increase in the quarterly dividend reflects the Company’s solid financial position and our continued commitment to return value to shareholders. . “
Earlier in February, Community Financial increased its dividend by 20% to 15 cents per share.