Bulletin
Investor Alert

press release

Oct. 16, 2019, 8:00 a.m. EDT

Preferred Bank Reports Quarterly Earnings

LOS ANGELES, Oct 16, 2019 (GLOBE NEWSWIRE via COMTEX) -- LOS ANGELES, Oct. 16, 2019 (GLOBE NEWSWIRE) -- Preferred Bank /zigman2/quotes/210374414/composite PFBC +0.13% , an independent commercial bank, today reported results for the quarter ended September 30, 2019. Preferred Bank ("the Bank") reported net income of $20.0 million or $1.32 per diluted share for the third quarter of 2019. This is slightly better than last quarter's $1.31 per diluted share but compares quite favorably to net income of $18.3 million or $1.20 per diluted share posted in the third quarter of 2018.

Highlights from the third quarter of 2019:

5.22%
2.48%
1.81%
17.61%
32.16%

Li Yu, Chairman and CEO, commented, "We are pleased to report third quarter net income of $20.0 million or $1.32 per share. A slight increase from second quarter in the face of two Fed interest rate reductions, which took place in the third quarter.

We had vibrant loan origination activity in the quarter, but actual growth was a net loan increase of $89 million or 2.48%, sequentially. This was partially due to client activity in the late second quarter, which we reported on in our second quarter earnings release. Heavy drawdowns of commercial and industrial credit lines by many of our customers at the end of the second quarter were largely repaid in early July.

Deposit activity in the third quarter was very strong, as we grew deposits by $192 million or 5.22% sequentially (20.88% annualized). Core deposit growth accounted for all of the growth during the quarter.

For the nine months ended September 30, 2019, our total loans increased $341 million or 13.6% on an annualized basis and total deposits increased by $229 million or 8.4% annualized.

Net interest margin for the quarter was 3.84%, 23 basis points less than the previous quarter due to the two rate cuts during the quarter. We have been and will continue to focus on managing our interest costs.

Credit quality remained stable. Non-performing loans now stand at $6.8 million. Expenses continues to be under control with our efficiency ratio at 32.16%. As of September 30, 2019, we have bought back nearly 209,000 shares of common stock. Total outstanding shares are now 15,091,657."

Income Statement Summary

Net Interest Income and Net Interest Margin. Net interest income before provision for loan and lease losses was $41.5 million for the third quarter of 2019. This is up 5.7% over the $39.2 million recorded in the third quarter of 2018 but slightly down from the second quarter of 2019 total of $41.8 million. The increase over the same period last year is due primarily to loan and overall asset growth. In comparing to the second quarter of 2019, the decision by the Federal Open Market Committee ("FOMC") electing to cut the fed funds rate twice during the quarter led to a reduction in the Bank's loan yields. The Bank's taxable equivalent net interest margin was 3.84%, down from both the 4.07% recorded for the second quarter of 2019 and the 4.04% posted for the same period last year. 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 yield declined in the third quarter of 2019 from the second quarter.

Noninterest Income. For the third quarter of 2019, noninterest income was $1,737,000 compared with $1,676,000 for the same quarter last year and compared to $1,985,000 for the second quarter of 2019. The small increase over last year is primarily due to service charges on deposits and other income. The decrease from the prior quarter is mainly due to a decrease in letters of credit fees this quarter.

Noninterest Expense. Total noninterest expense was $13.9 million for the third quarter of 2019, an increase of $314,000 over the same period last year and flat compared to the $13.9 million posted for the second quarter of 2019. The increase over last year is mainly due to salary and benefits expense as it increased by $1.1 million or 13.1%. Partially offsetting this increase were declines in professional services expense, OREO expense and other expense. When comparing to last quarter, salary expense was up slightly but other expense was lower primarily due to a decrease in FDIC premium expense. On September 30 of last year, the Deposit Insurance Fund Reserve Ratio reached 1.36% of all insured deposits, exceeding its target of 1.35%. Therefore, the FDIC is granting credits for prior premium assessments to smaller institutions. This had the effect of reducing FDIC premiums this quarter by $400,000 when compared to the second quarter of 2019 and by $360,000 when compared to the same period last year.

Balance Sheet Summary

Total gross loans and leases (including loans held for sale) at September 30, 2019 were $3.67 billion, an increase of $341.1 million or 10.2% over the total of $3.33 billion as of December 31, 2018. On a linked-quarter basis, total loans grew by $88.8 million or 2.5%. Total deposits increased by $229.3 million or 6.3% over the $3.64 billion as of December 31, 2018. Total deposits for the third quarter increased by $192.0 million or 5.2% on a linked quarter basis. Total assets reached $4.50 billion as of September 30, 2019, an increase of $279.0 million or 6.6% over the total of $4.22 billion as of December 31, 2018.

Income Taxes

The Bank recorded a provision for income taxes of $8.4 million for the third quarter of 2019. This represents an effective tax rate ("ETR") of 29.5% and consistent with the ETR of 29.5% for the second quarter of 2019. This is up slightly from the 28.0% ETR recorded in the third quarter of 2018. 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 September 30, 2019, nonaccrual loans totaled $3.8 million, a slight increase from the $3.4 million as of June 30, 2019 and down significantly from the total of $44.8 million as of December 31, 2018 due to the sale of two large NPA's in New York in the second quarter of 2019. In addition, the Bank had two loans totaling $3.0 million which were 90 days past due and still accruing interest. Both loans are well secured and were in the process of being renewed as of September 30, 2019. Both loans have since been renewed and are no longer 90 days past due. As of September 30, 2019, total classified loans stood at $8.2 million compared to $46.2 million as of December 31, 2018.

Total net charge-offs were $430,000 for the third quarter of 2019 compared to net recoveries of $315,000 for the second quarter of 2019 and compared to net recoveries of $314,000 for the third quarter of 2018. The Bank recorded a provision for loan loss of $900,000 for the third quarter of 2019, compared to $1.88 million in the third quarter of 2018 and compared to $1.6 million recorded in the second quarter of 2019. The allowance for loan loss at September 30, 2019 was $34.3 million or 0.93% of total loans compared to $31.1million or 0.93% of total loans at December 31, 2018.

Capitalization
As of September 30, 2019, the Bank's tier 1 leverage ratio was 10.27%, the common equity tier 1 capital ratio was 10.40% and the total capital ratio was 13.53%. 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%.

Conference Call and Webcast
A conference call with simultaneous webcast to discuss Preferred Bank's third quarter 2019 financial results will be held later today 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 October 30, 2019; the passcode is 10135958.

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 fourth 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 .

PREFERRED BANK
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except for net income per share and shares)
For the Quarter Ended
September 30, June 30, September 30,
2019 2019 2018
Interest income:
Loans, including fees $ 52,862 $ 52,844 $ 46,130
Investment securities 4,875 4,707 3,734
Fed funds sold 222 271 528
Total interest income 57,959 57,822 50,392
Interest expense:
Interest-bearing demand 4,904 4,819 3,911
Savings 13 13 15
Time certificates 10,034 9,612 5,684
FHLB borrowings - 7 14
Subordinated debit 1,531 1,530 1,531
Total interest expense 16,482 15,981 11,155
Net interest income 41,477 41,841 39,237
Provision for loan losses 900 1,600 1,880
Net interest income after provision for
loan losses 40,577 40,241 37,357
Noninterest income:
Fees & service charges on deposit accounts 401 418 240
Letters of credit fee income 874 1,071 1,091
BOLI income 94 92 91
Other income 368 404 254
Total noninterest income 1,737 1,985 1,676
Noninterest expense:
Salary and employee benefits 9,801 9,479 8,666
Net occupancy expense 1,329 1,270 1,340
Business development and promotion expense 109 187 203
Professional services 1,149 1,090 1,337
Office supplies and equipment expense 483 497 349
Net (gain) loss on sale of other real estate owned and expense (129 ) (45 ) 221
Other 1,156 1,407 1,468
Total noninterest expense 13,898 13,885 13,584
Income before provision for income taxes 28,416 28,341 25,449
Income tax expense 8,383 8,362 7,126
Net income $ 20,033 $ 19,979 $ 18,323
Dividend and earnings allocated to participating securities (168 ) (158 ) (312 )
Net income available to common shareholders $ 19,865 $ 19,821 $ 18,011
Income per share available to common shareholders
Basic $ 1.32 $ 1.31 $ 1.20
Diluted $ 1.32 $ 1.31 $ 1.20
Weighted-average common shares outstanding
Basic 15,091,270 15,171,399 15,063,685
Diluted 15,091,270 15,171,399 15,063,685
Dividends per share $ 0.30 $ 0.30 $ 0.25



PREFERRED BANK
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except for net income per share and shares)
For the Nine Months Ended
September 30, September 30, Change
2019 2018 %
Interest income:
Loans, including fees $ 156,166 $ 129,392 20.7 %
Investment securities 14,273 9,985 42.9 %
Fed funds sold 799 1,415 -43.5 %
Total interest income 171,238 140,792 21.6 %
Interest expense:
Interest-bearing demand 14,466 9,676 49.5 %
Savings 38 47 -17.7 %
Time certificates 27,894 13,636 104.6 %
FHLB borrowings 19 53 -63.6 %
Subordinated debit 4,593 4,593 100.0 %
Total interest expense 47,010 28,005 67.9 %
Net interest income 124,228 112,787 10.1 %
Provision for loan losses 3,000 4,580 -34.5 %
Net interest income after provision for
loan losses 121,228 108,207 12.0 %
Noninterest income:
Fees & service charges on deposit accounts 1,187 911 30.3 %
Letters of credit fee income 3,015 2,971 1.5 %
BOLI income 277 270 2.6 %
Net gain on called and sale of investment securities - 112 100.0 %
Other income 1,104 732 50.9 %
Total noninterest income 5,583 4,996 11.7 %
Noninterest expense:
Salary and employee benefits 29,061 26,100 11.3 %
Net occupancy expense 3,747 3,974 -5.7 %
Business development and promotion expense 582 534 9.0 %
Professional services 3,583 4,504 -20.4 %
Office supplies and equipment expense 1,405 1,091 28.8 %
Net loss on sale of other real estate owned and expense 1,217 434 180.3 %
Other 3,882 4,482 -13.4 %
Total noninterest expense 43,477 41,119 5.7 %
Income before provision for income taxes 83,334 72,084 15.6 %
Income tax expense 24,579 19,745 24.5 %
Net income $ 58,755 $ 52,339 12.3 %
Dividend and earnings allocated to participating securities (501 ) (862 ) -41.8 %
Net income available to common shareholders $ 58,254 $ 51,477 13.2 %
Income per share available to common shareholders
Basic $ 3.85 $ 3.42 12.6 %
Diluted $ 3.85 $ 3.42 12.6 %
Weighted-average common shares outstanding
Basic 15,135,997 15,054,237 0.5 %
Diluted 15,135,997 15,057,164 0.5 %
Dividends per share $ 0.90 $ 0.72 25.0 %



PREFERRED BANK
Condensed Consolidated Statements of Financial Condition
(unaudited)
(in thousands)
September 30, December 31,
2019 2018
(Unaudited) (Audited)
Assets
Cash and due from banks $ 409,189 $ 526,759
Fed funds sold 56,000 76,000
Cash and cash equivalents 465,189 602,759
Securities held to maturity, at amortized cost 7,545 8,007
Securities available-for-sale, at fair value 242,655 182,413
Loans and leases 3,671,450 3,333,377
Less allowance for loan and lease losses (34,281 ) (31,065 )
Less net deferred loan fees (2,518 ) (2,323 )
Net loans and leases 3,634,651 3,299,989
Loans held for sale, at lower of cost or fair value 2,999 -
Other real estate owned - -
Customers' liability on acceptances 7,333 10,074
Bank furniture and fixtures, net 12,438 7,497
Bank-owned life insurance 9,507 9,317
Accrued interest receivable 14,505 14,266
Investment in affordable housing 39,780 43,848
Federal Home Loan Bank stock 13,101 11,933
Deferred tax assets 17,338 19,640
Income tax receivable 3,849 -
Operating lease right-of-use assets 17,362 -
Other assets 7,232 6,692
Total assets $ 4,495,484 $ 4,216,435
Liabilities and Shareholders' Equity
Liabilities:
Deposits:
Demand $ 774,869 $ 730,096
Interest-bearing demand 1,435,144 1,397,006
Savings 21,985 20,369
Time certificates of $250,000 or more 849,574 738,626
Other time certificates 787,392 753,588
Total deposits 3,868,964 3,639,685
Acceptances outstanding 7,333 10,074
Advances from Federal Home Loan Bank - 1,307
Subordinated debt issuance 99,180 99,087
Commitments to fund investment in affordable housing partnership 12,904 19,530
Operating lease liabilities 20,958 -
Accrued interest payable 6,117 6,839
Other liabilities 20,948 23,262
Total liabilities 4,036,404 3,799,784
Commitments and contingencies
Shareholders' equity:
Common stock, no par value. Authorized 100,000,000 shares; issued and outstanding 15,091,657 at September 30, 2019 and 15,308,688 at December 31, 2018, respectively. 210,882 210,882
Treasury stock (46,835 ) (34,529 )
Additional paid-in-capital 51,076 47,425
Retained earnings 239,914 194,855
Accumulated other comprehensive income (loss):
Unrealized gain (loss) on securities, available-for-sale, net of tax of $1,576 and $(725) at September 30, 2019 and December 31, 2018, respectively 4,043 (1,982 )
Total shareholders' equity 459,080 416,651
Total liabilities and shareholders' equity $ 4,495,484 $ 4,216,435



PREFERRED BANK
Selected Consolidated Financial Information
(unaudited)
(in thousands, except for ratios)
For the Quarter Ended
September 30, June 30, March 31, December 31, September 30,
2019 2019 2019 2018 2018
Unaudited historical quarterly operations data:
Interest income $ 57,959 $ 57,822 $ 55,457 $ 54,373 $ 50,392
Interest expense 16,482 15,981 14,547 12,931 11,155
Interest income before provision for credit losses 41,477 41,841 40,910 41,442 39,237
Provision for credit losses 900 1,600 500 5,550 1,880
Noninterest income 1,737 1,985 1,861 4,405 1,676
Noninterest expense 13,898 13,885 15,694 13,683 13,584
Income tax expense 8,383 8,362 7,834 7,960 7,126
Net income $ 20,033 $ 19,979 $ 18,743 $ 18,654 $ 18,323
Earnings per share
Basic $ 1.32 $ 1.31 $ 1.23 $ 1.22 $ 1.20
Diluted $ 1.32 $ 1.31 $ 1.23 $ 1.22 $ 1.20
Ratios for the period:
Return on average assets 1.81 % 1.89 % 1.83 % 1.82 % 1.84 %
Return on beginning equity 17.61 % 18.54 % 18.24 % 18.50 % 18.87 %
Net interest margin (Fully-taxable equivalent) 3.84 % 4.07 % 4.12 % 4.13 % 4.04 %
Noninterest expense to average assets 1.25 % 1.31 % 1.54 % 1.33 % 1.37 %
Efficiency ratio 32.16 % 31.68 % 36.69 % 29.84 % 33.20 %
Net charge-offs (recoveries) to average loans (annualized) 0.05 % -0.04 % -0.04 % 0.80 % -0.04 %
Ratios as of period end:
Tier 1 leverage capital ratio 10.27 % 10.50 % 10.32 % 10.16 % 10.07 %
Common equity tier 1 risk-based capital ratio 10.40 % 10.53 % 10.54 % 10.43 % 10.23 %
Tier 1 risk-based capital ratio 10.40 % 10.53 % 10.54 % 10.43 % 10.23 %
Total risk-based capital ratio 13.53 % 13.74 % 13.82 % 13.77 % 13.65 %
Allowances for credit losses to loans and leases at end of period 0.93 % 0.94 % 0.94 % 0.93 % 0.98 %
Allowance for credit losses to non-performing loans and leases 895.30 % 981.65 % 887.75 % 69.29 % 63.42 %
Average balances:
Total securities $ 249,060 $ 241,664 $ 189,684 $ 184,168 $ 184,283
Total loans and leases * $ 3,534,283 $ 3,450,583 $ 3,327,005 $ 3,217,850 $ 3,184,527
Total earning assets $ 4,298,523 $ 4,134,320 $ 4,034,284 $ 3,988,970 $ 3,861,346
Total assets $ 4,395,357 $ 4,235,612 $ 4,142,906 $ 4,068,592 $ 3,946,924
Total time certificate of deposits $ 1,650,965 $ 1,627,953 $ 1,521,209 $ 1,446,661 $ 1,324,724
Total interest bearing deposits $ 3,051,007 $ 2,924,526 $ 2,874,045 $ 2,787,788 $ 2,697,807
Total deposits $ 3,772,097 $ 3,625,021 $ 3,555,981 $ 3,498,226 $ 3,392,878
Total interest bearing liabilities $ 3,150,167 $ 3,024,452 $ 2,974,442 $ 2,888,171 $ 2,800,486
Total equity $ 460,452 $ 445,101 $ 428,136 $ 411,249 $ 396,942
*Incudes loans held for sale



PREFERRED BANK
Selected Consolidated Financial Information
(unaudited)
(in thousands, except for ratios)
For the Nine Months Ended
September 30, September 30,
2019 2018
Interest income $ 171,238 $ 140,792
Interest expense 47,010 28,005
Interest income before provision for credit losses 124,228 112,787
Provision for credit losses 3,000 4,580
Noninterest income 5,583 4,996
Noninterest expense 43,477 41,119
Income tax expense 24,579 19,745
Net income $ 58,755 $ 52,339
Earnings per share
Basic $ 3.85 $ 3.42
Diluted $ 3.85 $ 3.42
Ratios for the period:
Return on average assets 1.88 % 1.84 %
Return on beginning equity 18.85 % 19.71 %
Net interest margin (Fully-taxable equivalent) 4.08 % 4.06 %
Noninterest expense to average assets 1.39 % 1.45 %
Efficiency ratio 33.49 % 34.91 %
Net charge-offs (recoveries) to average loans -0.01 % 0.11 %
Average balances:
Total loans and leases * $ 3,389,136 $ 3,079,179
Earning assets $ 4,084,580 $ 3,723,961
Total assets $ 4,189,515 $ 3,801,176
Total deposits $ 3,590,692 $ 3,264,343
*Includes loans held for sale



PREFERRED BANK
Selected Consolidated Financial Information
(unaudited)
(in thousands, except for ratios)
As of
September 30, June 30, March 31, December 31, September 30,
2019 2019 2019 2018 2018
Unaudited quarterly statement of financial position data:
Assets:
Cash and cash equivalents $ 465,189 $ 351,121 $ 623,002 $ 602,759 $ 531,240
Securities held-to-maturity, at amortized cost 7,545 7,702 7,861 8,007 8,203
Securities available-for-sale, at fair value 242,655 238,589 182,280 182,413 173,953
Loans and Leases:
Real estate - Single and multi-family residential 642,824 646,830 625,416 587,562 559,050
Real estate - Land 7,950 9,330 9,352 10,646 10,725
Real estate - Commercial 1,533,566 1,419,224 1,395,074 1,358,821 1,337,794
Real estate - For sale housing construction 179,651 171,584 152,418 138,815 122,225
Real estate - Other construction 216,812 212,988 228,174 207,849 246,815
Commercial and industrial, trade finance and other 1,090,647 1,125,730 994,571 1,029,684 998,781
Gross loans 3,671,450 3,585,686 3,405,005 3,333,377 3,275,390
Allowance for loan and lease losses (34,281 ) (33,811 ) (31,896 ) (31,065 ) (31,966 )
Net deferred loan fees (2,518 ) (1,401 ) (1,501 ) (2,323 ) (2,571 )
Net loans, excluding loans held for sale $ 3,634,651 $ 3,550,474 $ 3,371,608 $ 3,299,989 $ 3,240,853
Loans held for sale $ 2,999 $ - $ - $ - $ -
Net loans and leases $ 3,637,650 $ 3,550,474 $ 3,371,608 $ 3,299,989 $ 3,240,853
Other real estate owned $ - $ - $ - $ - $ 4,112
Investment in affordable housing 39,780 41,136 42,492 43,849 45,555
Federal Home Loan Bank stock 13,101 13,101 11,932 11,933 11,933
Other assets 89,564 92,302 89,095 67,485 60,339
Total assets $ 4,495,484 $ 4,294,425 $ 4,328,270 $ 4,216,435 $ 4,076,188
Liabilities:
Deposits:
Demand $ 774,869 $ 718,611 $ 731,795 $ 730,096 $ 745,861
Interest-bearing demand 1,435,144 1,279,104 1,372,760 1,397,006 1,360,237
Savings 21,985 20,927 20,550 20,369 21,490
Time certificates of $250,000 or more 849,574 839,203 778,020 738,626 737,465
Other time certificates 787,392 819,163 816,678 753,588 653,697
Total deposits $ 3,868,964 $ 3,677,008 $ 3,719,803 $ 3,639,685 $ 3,518,750
Advances from Federal Home Loan Bank $ 7,333 $ 8,074 $ 8,417 $ 10,074 $ 6,256
Subordinated debt issuance 99,180 99,149 99,118 99,087 99,056
Commitments to fund investment in affordable housing partnership 12,904 15,186 17,340 19,530 21,514
Other liabilities 48,023 43,566 51,460 31,408 30,643
Total liabilities $ 4,036,404 $ 3,842,983 $ 3,896,138 $ 3,799,784 $ 3,676,219
Equity:
Net common stock, no par value $ 215,123 $ 224,314 $ 222,782 $ 223,778 $ 221,518
Retained earnings 239,914 224,401 209,012 194,855 180,793
Accumulated other comprehensive income 4,043 2,727 338 (1,982 ) (2,342 )
Total shareholders' equity $ 459,080 $ 451,442 $ 432,132 $ 416,651 $ 399,969
Total liabilities and shareholders' equity $ 4,495,484 $ 4,294,425 $ 4,328,270 $ 4,216,435 $ 4,076,188



Preferred Bank
Loan and Credit Quality Information
Allowance For Credit Losses & Loss History
Nine Months Ended Year ended
September 30, 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 3,000 10,130
Balance at End of Period $ 34,281 $ 31,065
Average Loans and Leases Held for Investment $ 3,389,122 $ 3,102,428
Loans and Leases Held for Investment at end of Period $ 3,671,450 $ 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 0.93 % 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

(C) Copyright 2019 GlobeNewswire, Inc. All rights reserved.

/zigman2/quotes/210374414/composite
US : U.S.: Nasdaq
$ 54.78
+0.07 +0.13%
Volume: 50,516
Nov. 15, 2019 4:00p
P/E Ratio
10.82
Dividend Yield
2.19%
Market Cap
$839.52 million
Rev. per Employee
$777,817
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