LOS ANGELES, Jan. 22, 2020 (GLOBE NEWSWIRE) -- Preferred Bank (NASDAQ: PFBC), an independent commercial bank, today reported results for the quarter and year ended December 31, 2019. Preferred Bank (“the Bank”) reported net income of $19.6 million or $1.31 per diluted share for the fourth quarter of 2019. This is down slightly from last quarter’s net income of $20.0 million or $1.32 per diluted share but compares quite favorably to net income of $18.7 million or $1.22 per diluted share posted in the fourth quarter of 2018. The decrease from the prior quarter is due to net interest income which decreased mainly due to the Federal Open Market Committee (“FOMC”) rate cuts in September and late October of 2019, which impacted the Bank’s loan yields.

For the year ended December 31, 2019, Preferred Bank posted net income of $78.4 million or $5.16 per diluted share. This compares strongly to the $71.0 million or the $4.64 per diluted share recorded for 2018 and represents an increase in earnings per share of 11.3%. As of December 31, 2019, the Bank’s total assets stood at $4.6 billion.

Highlights from the fourth quarter of 2019:
 
  • Linked-quarter Deposit Growth
2.96%
  • Linked-quarter Loan Growth
1.46%
  • Return on Assets
1.74%
  • Return on Beginning Equity
16.95%
  • Efficiency Ratio
32.56%
  
Highlights from Year:
 
  • Annual Deposit Growth
9.44%
  • Annual Loan Growth
11.75%
  • Return on Assets
1.82%
  • Return on Beginning Equity
18.81%
  • Efficiency Ratio
33.26%

Li Yu, Chairman and CEO, commented, “Net income for the fourth quarter of 2019 was $19.6 million or $1.31 per diluted share. Net income for all of 2019 was $78.4 million or $5.16 per diluted share. Our quarterly and annual earnings exceeded our internal goals when considering the three rate cuts imposed by the FOMC during the third and fourth quarters.

Fourth quarter loan growth of $53 million, or 1.45% on a linked quarter basis likely reflects sluggish loan activities during the holiday season.  For the year 2019, our total loan growth was $392 million or 11.75% increase from the end of 2018.

Fourth quarter deposit growth was $114 million or 3.0%. For the year, total deposit growth was $344 million or 9.4% over year end 2018 totals.

Negatively affected by the FOMC rate cuts in late September and October, our net interest margin for the quarter declined to 3.67%. For the year, the margin came in at 3.92%, a 16 basis point reduction from the 4.08% posted in 2018. Assuming no more rate cuts, we expect the margin to stabilize and gradually expand in early 2020.

Our cost control remains effective, the Bank’s efficiency ratio came in at 32.6% for the fourth quarter and 33.3% for the year, which is among the top in the industry.”

Income Statement Summary

Net Interest Income and Net Interest Margin. Net interest income before provision for loan and lease losses was $40.4 million for the fourth quarter of 2019. This is down from the $41.5 million recorded in the third quarter of 2019 and down from the $41.4 million posted in the fourth quarter of 2018. This is due to the three rate cuts imposed by the FOMC in early August, September and late October of 2019. As Preferred Bank’s balance sheet is asset-sensitive, this had the impact of lowering loan yields faster than deposit costs could be lowered. The Bank’s taxable equivalent net interest margin was 3.67%, down from the 3.84% recorded in the third quarter of 2019 and down from the 4.13% posted in the fourth quarter of 2018. The decline in the margin was due to the decline in loan yields mentioned above as well as higher deposit costs than in 2018, although total deposit costs declined in the third quarter and fourth quarter of 2019 and that trend continues.

Noninterest Income. For the fourth quarter of 2019, noninterest income was $1,883,000 compared with $4,405,000 for the same quarter last year and compared to $1,737,000 for the third quarter of 2019. The decline from last year is primarily due to last year’s gain on sale of OREO of $2.04 million and a legal recovery of $610,000 recorded in that period.  The increase from the prior quarter is mainly due to other income which was up by $224,000 over the prior quarter due to various credit-related fees.

Noninterest Expense. Total noninterest expense was $13.8 million for the fourth quarter of 2019, flat when compared to the same period last year and down slightly from the $13.9 million posted in the third quarter of 2019. In comparing this quarter to last year, salary expense was up by $1.1 million but that was offset by a decline in professional services of $651,000, a decline in OREO expenses of $178,000 and a decline in other expense of $289,000. Salary expense increased due to a higher bonus accrual as well as a higher head count over last year. The decrease in professional services was due to lower legal fees and I.T. costs and the decrease in other expense was due to no FDIC premium expense recorded for the quarter when normally that cost would have been approximately $450,000. (As mentioned in the press release in the prior quarter, the FDIC’s Deposit Insurance Fund ratio exceeded its target of 1.35% of insured deposits and so refunds were issued). The decrease in total noninterest expense from the prior quarter was primarily due to professional services which were down by $315.000.  

Balance Sheet Summary

Total gross loans and leases (including loans held for sale) at December 31, 2019 were $3.72 billion, an increase of $391.2 million or 11.7% over the total of $3.33 billion as of December 31, 2018. On a linked-quarter basis, total loans grew by $53.5 million or 1.5%. Total deposits increased by $343.6 million or 9.4% over the $3.64 billion as of December 31, 2018. Total deposits for the third quarter increased by $114.3 million or 3.0% on a linked quarter basis. Total assets reached $4.63 billion as of December 31, 2019, an increase of $411.7 million or 9.8% over the total of $4.22 billion as of December 31, 2018.

Income Taxes

The Bank recorded a provision for income taxes of $8.5 million for the fourth quarter of 2019. This represents an effective tax rate (“ETR”) of 30.1% and slightly higher than the 29.5% ETR recorded in the third quarter of 2019. The Bank’s ETR may fluctuate slightly from quarter to quarter within a limited range due to the timing of taxable events throughout the year.

Asset Quality

As of December 31, 2019, nonaccrual loans totaled $2.1 million, a decrease from the $3.8 million as of September 30, 2019 and down significantly from the total of $44.8 million as of December 31, 2018 due to the sale of two large non-performing assets in New York in the second quarter of 2019.

Total net recoveries were $99,000 for the fourth quarter of 2019 compared to net charge-offs of $430,000 for the third quarter of 2019 and compared to net charge-offs of $6.5 million for the fourth quarter of 2018.  The Bank recorded a provision for loan loss of $450,000 for the fourth quarter of 2019, which is somewhat reflective of the overall loan growth for the quarter. This compares to $900,000 recorded in the third quarter of 2019 and compared to $5.55 million recorded in the fourth quarter of 2018. The allowance for loan loss at December 31, 2019 was $34.8 million or 0.94% of total loans compared to $31.1million or 0.93% of total loans at December 31, 2018.

Capitalization

As of December 31, 2019, the Bank’s tier 1 leverage ratio was 10.25%, the common equity tier 1 capital ratio was 10.51% and the total capital ratio was 13.63%. As of December 31, 2018, the Bank’s leverage ratio was 10.16%, the common equity tier 1 ratio was 10.43% and the total risk based capital ratio was 13.72%. Tangible book value per share was $31.28 per share as of December 31, 2019 compared to $27.22 as of December 31, 2018, a 15.0% increase.

Conference Call and Webcast

A conference call with simultaneous webcast to discuss Preferred Bank’s fourth quarter 2019 financial results will be held tomorrow, January 23, at 2:00 p.m. Eastern / 11:00 a.m. Pacific. Interested participants and investors may access the conference call by dialing 844-826-3037 (domestic) or 412-317-5182 (international) and referencing “Preferred Bank.” There will also be a live webcast of the call available at the Investor Relations section of Preferred Bank's website at www.preferredbank.com. Web participants are encouraged to go to the website at least 15 minutes prior to the start of the call to register, download and install any necessary audio software.

Preferred Bank's Chairman and Chief Executive Officer Li Yu, President and Chief Operating Officer Wellington Chen, Chief Financial Officer Edward J. Czajka, and Chief Credit Officer Nick Pi will be present to discuss Preferred Bank's financial results, business highlights and outlook. After the live webcast, a replay will remain available in the Investor Relations section of Preferred Bank's website. A replay of the call will also be available at 877-344-7529 (domestic) or 412-317-0088 (international) through February 6, 2020; the passcode is 10138207.

About Preferred Bank

Preferred Bank is one of the larger independent commercial banks headquartered in California. The Bank is chartered by the State of California, and its deposits are insured by the Federal Deposit Insurance Corporation, or FDIC, to the maximum extent permitted by law. The Bank conducts its banking business from its main office in Los Angeles, California, and through eleven full-service branch banking offices in California (Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine, Diamond Bar, Pico Rivera, Tarzana and San Francisco (2)) and one branch in Flushing, New York. Preferred Bank offers a broad range of deposit and loan products and services to both commercial and consumer customers. The Bank provides personalized deposit services as well as real estate finance, commercial loans and trade finance to small and mid-sized businesses, entrepreneurs, real estate developers, professionals and high net worth individuals. Although originally founded as a Chinese-American Bank, Preferred Bank now derives most of its customers from the diversified mainstream market but does continue to benefit from the significant migration to California of ethnic Chinese from China and other areas of East Asia.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the Bank’s future financial and operating results, the Bank's plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the Bank’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: changes in economic conditions; changes in the California real estate market; the loss of senior management and other employees; natural disasters or recurring energy shortage; changes in interest rates; competition from other financial services companies; ineffective underwriting practices; inadequate allowance for loan and lease losses to cover actual losses; risks inherent in construction lending; adverse economic conditions in Asia; downturn in international trade; inability to attract deposits; inability to raise additional capital when needed or on favorable terms; inability to manage growth; inadequate communications, information, operating and financial control systems, technology from third party service providers; the U.S. government’s monetary policies; government regulation; environmental liability with respect to properties to which the bank takes title; and the threat of terrorism. Additional factors that could cause the Bank's results to differ materially from those described in the forward-looking statements can be found in the Bank’s 2018 Annual Report on Form 10-K filed with the Federal Deposit Insurance Corporation which can also be found on Preferred Bank’s website. The forward-looking statements in this press release speak only as of the date of the press release, and the Bank assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contained in the forward-looking statements. For additional information about Preferred Bank, please visit the Bank’s website at www.preferredbank.com.

Financial Tables to Follow


PREFERRED BANK
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except for net income per share and shares)
           
           
     For the Quarter Ended 
     December 31, September 30, December 31, 
      2019   2019   2018  
Interest income:       
 Loans, including fees $51,052  $52,862  $49,027  
 Investment securities  4,269   4,875   4,892  
 Fed funds sold  162   222   454  
  Total interest income  55,483   57,959   54,373  
           
Interest expense:       
 Interest-bearing demand  3,490   4,904   4,258  
 Savings  16   13   13  
 Time certificates  10,038   10,034   7,117  
 FHLB borrowings  -   -   12  
 Subordinated debit  1,530   1,531   1,531  
  Total interest expense  15,074   16,482   12,931  
  Net interest income  40,409   41,477   41,442  
Provision for loan losses  450   900   5,550  
  Net interest income after provision for       
   loan losses  39,959   40,577   35,892  
           
Noninterest income:       
 Fees & service charges on deposit accounts  392   401   290  
 Letters of credit fee income  806   874   956  
 BOLI income  93   94   91  
 Net gain on sale of other real estate owned  -   -   2,038  
 Other income  592   368   1,030  
  Total noninterest income  1,883   1,737   4,405  
           
Noninterest expense:       
 Salary and employee benefits  9,746   9,801   8,640  
 Net occupancy expense  1,374   1,329   1,326  
 Business development and promotion expense  258   109   282  
 Professional services  834   1,149   1,485  
 Office supplies and equipment expense  448   483   373  
 Net (gain) loss on sale of other real estate owned and expense  3   (129)  181  
 Other   1,107   1,156   1,396  
  Total noninterest expense  13,770   13,898   13,683  
  Income before provision for income taxes  28,072   28,416   26,614  
Income tax expense  8,456   8,383   7,960  
  Net income $19,616  $20,033  $18,654  
           
Dividend and earnings allocated to participating securities  (164)  (168)  (304) 
Net income available to common shareholders $19,452  $19,865  $18,350  
           
Income per share available to common shareholders       
  Basic $1.31  $1.32  $1.22  
  Diluted $1.31  $1.32  $1.22  
           
Weighted-average common shares outstanding       
  Basic  14,836,374   15,091,270   15,064,875  
  Diluted  14,836,374   15,091,270   15,064,875  
           
Dividends per share $0.30  $0.30  $0.30  
           



PREFERRED BANK
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except for net income per share and shares)
          
          
     For the Year Ended  
     December 31, December 31, Change
      2019   2018  %
Interest income:      
 Loans, including fees $207,218  $178,420  16.1%
 Investment securities  18,542   14,877  24.6%
 Fed funds sold  961   1,868  -48.5%
  Total interest income  226,721   195,165  16.2%
          
Interest expense:      
 Interest-bearing demand  17,956   13,934  28.9%
 Savings  54   60  -10.7%
 Time certificates  37,932   20,753  82.8%
 FHLB borrowings  19   65  -70.3%
 Subordinated debit  6,123   6,124  -0.0%
  Total interest expense  62,084   40,936  51.7%
  Net interest income  164,637   154,229  6.7%
Provision for loan losses  3,450   10,130  -65.9%
  Net interest income after provision for      
   loan losses  161,187   144,099  11.9%
          
Noninterest income:      
 Fees & service charges on deposit accounts  1,579   1,201  31.5%
 Letters of credit fee income  3,821   3,927  -2.7%
 BOLI income  370   361  2.7%
 Net gain on sale of other real estate owned  -   2,038  -100.0%
 Net gain on called and sale of investment securities  -   112  -100.0%
 Other income  1,696   1,762  -3.8%
  Total noninterest income  7,466   9,401  -20.6%
          
Noninterest expense:      
 Salary and employee benefits  38,807   34,741  11.7%
 Net occupancy expense  5,121   5,299  -3.4%
 Business development and promotion expense  840   816  3.0%
 Professional services  4,417   5,989  -26.2%
 Office supplies and equipment expense  1,853   1,464  26.5%
 Net loss on sale of other real estate owned and expense  1,220   615  98.4%
 Other   4,989   5,879  -15.1%
  Total noninterest expense  57,247   54,802  4.5%
  Income before provision for income taxes  111,406   98,698  12.9%
Income tax expense  33,035   27,705  19.2%
  Net income $78,371  $70,993  10.4%
          
Dividend and earnings allocated to participating securities  (666)  (1,166) -42.9%
Net income available to common shareholders $77,705  $69,827  11.3%
          
Income per share available to common shareholders      
  Basic $5.16  $4.64  11.3%
  Diluted $5.16  $4.64  11.3%
          
Weighted-average common shares outstanding      
  Basic  15,060,476   15,056,919  0.0%
  Diluted  15,060,476   15,059,845  0.0%
          
Dividends per share $1.20  $1.02  17.6%
          



PREFERRED BANK
Condensed Consolidated Statements of Financial Condition
(unaudited)
(in thousands)
       
       
    December 31, December 31,
     2019   2018 
    (Unaudited) (Audited)
Assets    
       
Cash and due from banks$498,645  $526,759 
Fed funds sold 37,000   76,000 
 Cash and cash equivalents 535,645   602,759 
       
Securities held to maturity, at amortized cost 7,310   8,007 
Securities available-for-sale, at fair value 240,640   182,413 
Loans and leases 3,724,922   3,333,377 
Less allowance for loan and lease losses (34,830)  (31,065)
Less net deferred loan fees (3,028)  (2,323)
 Net loans and leases 3,687,064   3,299,989 
       
Customers' liability on acceptances 7,379   10,074 
Bank furniture and fixtures, net 12,236   7,497 
Bank-owned life insurance 9,571   9,317 
Accrued interest receivable 14,961   14,266 
Investment in affordable housing 53,142   43,848 
Federal Home Loan Bank stock 13,101   11,933 
Deferred tax assets 17,368   19,640 
Income tax receivable 5,561   - 
Operating lease right-of-use assets 17,103   - 
Other assets 7,400   6,692 
 Total assets$4,628,481  $4,216,435 
       
       
Liabilities and Shareholders' Equity   
       
Liabilities:    
Deposits:    
 Demand$835,790  $730,096 
 Interest-bearing demand 1,328,863   1,397,006 
 Savings 23,784   20,369 
 Time certificates of $250,000 or more 976,727   738,626 
 Other time certificates 818,130   753,588 
   Total deposits 3,983,294   3,639,685 
 Acceptances outstanding 7,379   10,074 
 Advances from Federal Home Loan Bank -   1,307 
 Subordinated debt issuance 99,211   99,087 
 Commitments to fund investment in affordable housing partnership 24,149   19,530 
 Operating lease liabilities 20,497   - 
 Accrued interest payable 3,324   6,839 
 Other liabilities 23,432   23,262 
  Total liabilities 4,161,286   3,799,784 
       
       
Shareholders' equity:   
 Common stock, no par value. Authorized 100,000,000 shares; issued and outstanding 14,933,768 at December 31, 2019 and 15,308,688 at December 31, 2018, respectively. 210,882   210,882 
 Treasury stock (55,054)  (34,529)
 Additional paid-in-capital 52,350   47,425 
 Retained earnings 255,050   194,855 
 Accumulated other comprehensive income (loss):   
  Unrealized gain (loss) on securities, available-for-sale, net of tax of $1,546 and $(725) at December 31, 2019 and December 31, 2018, respectively 3,967   (1,982)
  Total shareholders' equity 467,195   416,651 
 Total liabilities and shareholders' equity$4,628,481  $4,216,435 
       



PREFERRED BANK 
Selected Consolidated Financial Information 
(unaudited) 
(in thousands, except for ratios) 
          
          
          
    For the Quarter Ended 
          
    December 31,September 30,June 30,March 31,December 31, 
     2019  2019  2019  2019  2018  
Unaudited historical quarterly operations data:      
 Interest income$55,483 $57,959 $57,822 $55,457 $54,373  
 Interest expense 15,074  16,482  15,981  14,547  12,931  
  Interest income before provision for credit losses 40,409  41,477  41,841  40,910  41,442  
 Provision for credit losses 450  900  1,600  500  5,550  
 Noninterest income 1,883  1,737  1,985  1,861  4,405  
 Noninterest expense 13,770  13,898  13,885  15,694  13,683  
 Income tax expense 8,456  8,383  8,362  7,834  7,960  
  Net income$19,616 $20,033 $19,979 $18,743 $18,654  
          
 Earnings per share      
  Basic$1.31 $1.32 $1.31 $1.23 $1.22  
  Diluted$1.31 $1.32 $1.31 $1.23 $1.22  
          
Ratios for the period:      
 Return on average assets 1.74% 1.81% 1.89% 1.83% 1.82% 
 Return on beginning equity 16.95% 17.61% 18.54% 18.24% 18.50% 
 Net interest margin (Fully-taxable equivalent) 3.67% 3.84% 4.07% 4.12% 4.13% 
 Noninterest expense to average assets 1.22% 1.25% 1.31% 1.54% 1.33% 
 Efficiency ratio 32.56% 32.16% 31.68% 36.69% 29.84% 
 Net charge-offs (recoveries) to average loans (annualized) -0.01% 0.05% -0.04% -0.04% 0.80% 
          
Ratios as of period end:      
 Tier 1 leverage capital ratio 10.25% 10.27% 10.50% 10.32% 10.16% 
 Common equity tier 1 risk-based capital ratio 10.51% 10.40% 10.53% 10.54% 10.43% 
 Tier 1 risk-based capital ratio 10.51% 10.40% 10.53% 10.54% 10.43% 
 Total risk-based capital ratio 13.63% 13.53% 13.74% 13.82% 13.77% 
 Allowances for credit losses to loans and leases at end of period 0.94% 0.93% 0.94% 0.94% 0.93% 
 Allowance for credit losses to non-performing loans and leases 1631.42% 895.30% 981.65% 887.75% 69.29% 
          
Average balances:      
 Total securities$248,904 $249,060 $241,664 $189,684 $184,168  
 Total loans and leases *$3,614,621 $3,534,283 $3,450,583 $3,327,005 $3,217,850  
 Total earning assets$4,381,206 $4,298,523 $4,134,320 $4,034,284 $3,988,970  
 Total assets$4,482,210 $4,395,357 $4,235,612 $4,142,906 $4,068,592  
 Total time certificate of deposits$1,756,480 $1,650,965 $1,627,953 $1,521,209 $1,446,661  
 Total interest bearing deposits$3,050,318 $3,051,007 $2,924,526 $2,874,045 $2,787,788  
 Total deposits$3,849,825 $3,772,097 $3,625,021 $3,555,981 $3,498,226  
 Total interest bearing liabilities$3,149,511 $3,150,167 $3,024,452 $2,974,442 $2,888,171  
 Total equity$463,849 $460,452 $445,101 $428,136 $411,249  
          
*Incudes loans held for sale      



PREFERRED BANK 
Selected Consolidated Financial Information 
(unaudited) 
(in thousands, except for ratios) 
        
        
        
    For the Year Ended 
    December 31, December 31, 
     2019   2018  
            
        
 Interest income$226,721  $195,165  
 Interest expense 62,084   40,936  
  Interest income before provision for credit losses 164,637   154,229  
 Provision for credit losses 3,450   10,130  
 Noninterest income 7,466   9,401  
 Noninterest expense 57,247   54,802  
 Income tax expense 33,035   27,705  
  Net income$78,371  $70,993  
        
 Earnings per share    
  Basic$5.16  $4.64  
  Diluted$5.16  $4.64  
        
Ratios for the period:    
 Return on average assets 1.82%  1.84% 
 Return on beginning equity 18.81%  20.00% 
 Net interest margin (Fully-taxable equivalent) 3.92%  4.08% 
 Noninterest expense to average assets 1.33%  1.42% 
 Efficiency ratio 33.26%  33.49% 
 Net charge-offs (recoveries) to average loans -0.01%  0.29% 
        
Average balances:    
 Total loans and leases *$3,482,555  $3,114,132  
 Earning assets$4,213,271  $3,790,757  
 Total assets$4,315,174  $3,868,579  
 Total deposits$3,701,732  $3,323,295  
        
*Includes loans held for sale    



PREFERRED BANK
Selected Consolidated Financial Information
(unaudited)
(in thousands, except for ratios)
             
             
             
    As of
             
    December 31, September 30, June 30, March 31, December 31,
     2019   2019   2019   2019   2018 
Unaudited quarterly statement of financial position data:         
Assets:          
 Cash and cash equivalents$535,645  $465,189  $351,121  $623,002  $602,759 
 Securities held-to-maturity, at amortized cost 7,310   7,545   7,702   7,861   8,007 
 Securities available-for-sale, at fair value 240,640   242,655   238,589   182,280   182,413 
 Loans and Leases:         
  Real estate - Single and multi-family residential 686,906   642,824   646,830   625,416   587,562 
  Real estate - Land 7,838   7,950   9,330   9,352   10,646 
  Real estate - Commercial 1,504,594   1,533,566   1,419,224   1,395,074   1,358,821 
  Real estate - For sale housing construction 173,951   179,651   171,584   152,418   138,815 
  Real estate - Other construction 218,562   216,812   212,988   228,174   207,849 
  Commercial and industrial, trade finance and other 1,133,071   1,090,647   1,125,730   994,571   1,029,684 
   Gross loans 3,724,922   3,671,450   3,585,686   3,405,005   3,333,377 
 Allowance for loan and lease losses (34,830)  (34,281)  (33,811)  (31,896)  (31,065)
 Net deferred loan fees (3,028)  (2,518)  (1,401)  (1,501)  (2,323)
  Net loans, excluding loans held for sale$3,687,064  $3,634,651  $3,550,474  $3,371,608  $3,299,989 
 Loans held for sale$-  $2,999  $-  $-  $- 
  Net loans and leases$3,687,064  $3,637,650  $3,550,474  $3,371,608  $3,299,989 
             
 Investment in affordable housing 53,142   39,780   41,136   42,492   43,849 
 Federal Home Loan Bank stock 13,101   13,101   13,101   11,932   11,933 
 Other assets 91,579   89,564   92,302   89,095   67,485 
  Total assets$4,628,481  $4,495,484  $4,294,425  $4,328,270  $4,216,435 
             
Liabilities:          
 Deposits:         
  Demand$835,790  $774,869  $718,611  $731,795  $730,096 
  Interest-bearing demand 1,328,863   1,435,144   1,279,104   1,372,760   1,397,006 
  Savings 23,784   21,985   20,927   20,550   20,369 
  Time certificates of $250,000 or more 976,727   849,574   839,203   778,020   738,626 
  Other time certificates 818,130   787,392   819,163   816,678   753,588 
    Total deposits$3,983,294  $3,868,964  $3,677,008  $3,719,803  $3,639,685 
             
 Advances Outstanding$7,379  $7,333  $8,074  $8,417  $10,074 
 Subordinated debt issuance 99,211   99,180   99,149   99,118   99,087 
 Commitments to fund investment in affordable housing partnership 24,149   12,904   15,186   17,340   19,530 
 Other liabilities 47,253   48,023   43,566   51,460   31,408 
  Total liabilities$4,161,286  $4,036,404  $3,842,983  $3,896,138  $3,799,784 
             
Equity:           
 Net common stock, no par value$208,178  $215,123  $224,314  $222,782  $223,778 
 Retained earnings 255,050   239,914   224,401   209,012   194,855 
 Accumulated other comprehensive income 3,967   4,043   2,727   338   (1,982)
  Total shareholders' equity$467,195  $459,080  $451,442  $432,132  $416,651 
  Total liabilities and shareholders' equity$4,628,481  $4,495,484  $4,294,425  $4,328,270  $4,216,435 
             



Preferred Bank  
Loan and Credit Quality Information  
          
Allowance For Credit Losses & Loss History  
     Year Ended Year ended  
     December 31, 2019 December 31, 2018 
         
         
      (Dollars in 000's)  
Allowance For Credit Losses      
Balance at Beginning of Period $31,065  $29,921   
 Charge-Offs      
  Commercial & Industrial  525   4,040   
  Mini-perm Real Estate  101   5,742   
    Total Charge-Offs  626   9,782   
          
 Recoveries      
  Commercial & Industrial  427   796   
  Mini-perm Real Estate  415   -   
    Total Recoveries  842   796   
          
 Net Loan Charge-Offs  (216)  8,986   
 Provision for Credit Losses  3,450   10,130   
Balance at End of Period $34,731  $31,065   
Average Loans and Leases Held for Investment $3,482,218  $3,102,428   
Loans and Leases Held for Investment at end of Period $3,724,922  $3,333,337   
Net Charge-Offs to Average Loans and Leases  -0.01%  0.29%  
Allowances for credit losses to loans and leases at end of period  0.94%  0.93%  
          

 

AT THE COMPANY:AT FINANCIAL PROFILES:
Edward J. CzajkaTony Rossi
Executive Vice PresidentGeneral Information
Chief Financial Officer(310) 622-8221
(213) 891-1188PFBC@finprofiles.com



 

 

 

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