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Preferred BankPFBC -2.71%71 Debt-to-Equity is 0.50 as of Mar. 2026, which is 79% above its 10-year median of 0.28. GuruFocus rates PFBC with a GF Score™ of 71/100 and a GF Value™ of $90.04 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,419 Banks companies, Preferred Bank ranks better than 55.25% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Preferred Bank's Debt-to-Equity or its related term are showing as below:
PFBC'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.22 Med: 0.28 Max: 0.5
Current: 0.5
During the past 13 years, the highest Debt-to-Equity Ratio of Preferred Bank was 0.50. The lowest was 0.22. And the median was 0.28.
PFBC's Debt-to-Equity is ranked better than 55.25% of 1419
companies
in the Banks industry
Industry Median: 0.58
vs PFBC: 0.50
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Preferred Bank Debt-to-Equity Related Terms
Preferred Bank Debt-to-Equity Historical Data
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The historical data trend for Preferred Bank's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PFBC vs HBT, UVSP, OSBC: Debt-to-Equity Comparison
For the Banks - Regional subindustry, Preferred Bank's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Preferred Bank Debt-to-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Preferred Bank's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Preferred Bank's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Preferred Bank (PFBC) has a Debt-to-Equity of 0.50 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Preferred Bank and its competitors. This is 79% above median its historical median of 0.28. Over the past decade, Preferred Bank's Debt-to-Equity has ranged from 0.22 to 0.50. According to the industry distribution chart, Preferred Bank ranks #635 out of 1419 companies in the Banks industry, placing it in the top 44.7%.
Is Preferred Bank's Debt-to-Equity too high?
Preferred Bank's current Debt-to-Equity of 0.50 is 79% above median its 10-year median of 0.28. Over the past 10 years, this metric has ranged from a low of 0.22 to a high of 0.50. The Banks industry median Debt-to-Equity is 0.58. Preferred Bank's value of 0.50 is 13.8% below this industry median. Based on the distribution chart, Preferred Bank ranks #635 out of 1419 companies in the Banks industry, which is above the industry midpoint. Overall, Preferred Bank has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Preferred Bank's Debt-to-Equity compare to HBT and UVSP?
According to the Banks industry distribution chart, Preferred Bank ranks #635 out of 1419 companies for Debt-to-Equity. This puts Preferred Bank in the upper half of its industry. The industry median Debt-to-Equity is 0.58. Preferred Bank's value of 0.50 is 13.8% below this benchmark. Historically, Preferred Bank's own Debt-to-Equity has ranged from 0.22 to 0.50 over the past decade. While the company's 10-year median is 0.28 vs. the industry median of 0.58, Preferred Bank has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Banks company?
The median Debt-to-Equity among Banks companies is 0.58, based on 1,419 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Preferred Bank's current Debt-to-Equity of 0.50 is 13.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Preferred Bank and its competitors. For the Banks industry, the median Debt-to-Equity is 0.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Preferred Bank's current Debt-to-Equity is 0.50, which is 79% above median its own 10-year median of 0.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Preferred Bank stock overvalued right now?
Based on GuruFocus' analysis, Preferred Bank (PFBC) is currently considered Modestly Overvalued. The stock's GF Value™ is $90.04, compared to a current price of $103.79 — trading 15.3% above its estimated fair value. The current Debt-to-Equity is 0.50, which is 79% above median its 10-year median of 0.28 and 13.8% below the Banks industry median of 0.58. Preferred Bank's overall GF Score™ is 71/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Preferred Bank (PFBC), the current Debt-to-Equity is 0.50 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Preferred Bank (PFBC) Overvalued in 2026?
Based on GuruFocus' analysis, Preferred Bank stock appears to be overvalued.
The current stock price of $103.79 is trading 15.3% above its estimated GF Value™ of $90.04.
GuruFocus considers Preferred Bank to be Modestly Overvalued.
Key valuation signals for PFBC:
Debt-to-Equity: 0.50 (79% above median its 10-year median of 0.28)
GF Value™: $90.04 vs. price of $103.79 (15.3% above fair value)
Industry Position: 13.8% below the Banks median (#635 of 1419)
No single metric tells the full story. See the PFBC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Preferred Bank is a commercial bank located in California. Its products and services are divided into Personal Banking, Business Banking, and Commercial Banking, which include Checking accounts, Savings accounts, CDs, Loans and Credit, Electronic banking, and Treasury Management. It provides personalized deposit services, real estate finance, commercial loans, and trade finance credit facilities to small and mid-sized businesses and their owners, entrepreneurs, real estate developers and investors, professionals, and high-net-worth individuals.
71GF Score
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