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Jan. 22, 2020, 4:31 p.m. EST

Preferred Bank Reports 2019 Fourth Quarter and Annual Earnings

LOS ANGELES, Jan 22, 2020 (GLOBE NEWSWIRE via COMTEX) -- LOS ANGELES, Jan. 22, 2020 (GLOBE NEWSWIRE) -- Preferred Bank /zigman2/quotes/210374414/composite PFBC -0.53% , 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:
2.96%
1.46%
1.74%
16.95%
32.56%
Highlights from Year:
9.44%
11.75%
1.82%
18.81%
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. Czajka Tony Rossi
Executive Vice President General Information
Chief Financial Officer (310) 622-8221
(213) 891-1188 PFBC@finprofiles.com




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/zigman2/quotes/210374414/composite
US : U.S.: Nasdaq
$ 61.49
-0.33 -0.53%
Volume: 62,501
Feb. 19, 2020 4:00p
P/E Ratio
11.91
Dividend Yield
1.95%
Market Cap
$918.28 million
Rev. per Employee
$777,817
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