LOS ANGELES, Oct. 22, 2013 (GLOBE NEWSWIRE) -- Preferred Bank (Nasdaq:PFBC), an independent commercial bank focusing on the Chinese-American and diversified California mainstream market, today reported results for the quarter ended September 30, 2013. Preferred Bank ("the Bank") reported net income of $5.0 million or $0.37 per diluted share for the third quarter of 2013. This compares to net income of $2.8 million or $0.21 per diluted share for the third quarter of 2012 and compares to net income of $4.3 million or $0.32 per diluted share for the second quarter of 2013. Net income on a year-to-date basis was $13.3 million or $0.99 per diluted share for 2013 compared to net income of $19.0 million or $1.41 per diluted share for the same period last year. Year-to-date results for 2012 were aided by a $20.2 million reversal of the Bank's valuation allowance on its deferred tax asset. Highlights from the quarter:
- Quarterly net income reached $5.0 million
- Linked quarter loan growth was $61.2 million
- Net interest margin rebounded to 4.10%.
- ROA of 1.20%
- ROE of 10.11%
- Continued reduction of non-performing assets (NPA's) excluding loans held for sale, which now comprise only 1.4% of total assets
- Efficiency ratio declined to 46.6%
Li Yu, Chairman and CEO commented, "For the third quarter, our Bank earned $5.0 million or $0.37 per diluted share compared to $4.3 million or $0.32 perdiluted share for the second quarter of 2013 and compared to $2.8 million or $0.21 per diluted share for the third quarter of 2012. This is by far the best quarter of the last five years and we are pleased to report this.
"Our growth continues. Total loans increased by $61.2 million or 5.0% over the prior quarter and deposits increased $37.9 million or 2.6%. Meanwhile total NPA's, excluding loans held for sale, decreased by $6.6 million or 22% from June 30, 2013 and equally as important, costs related to NPA resolution were negligible.
"Although we have been increasing staff this quarter, particularly in the area of compliance, our efficiency ratio came in at 46.6% which we are very pleased with.
"Our loan pipeline remains stable, although fourth quarter production will definitely be affected by the holiday season. We, however remain optimistic of our full year results."
Operating Results
Net Interest Income and Net Interest Margin. Net interest income before provision for loan and lease losses increased to $16.5 million from the $13.3 million recorded in the third quarter of 2012 and an increase over the $14.4 million recorded in the second quarter of 2013. The increase over 2012 is due primarily to loan growth and the increase over the prior quarter was partially due to the $745,000 in interest reversals in the second quarter related to the regulatory examination. The Bank's taxable equivalent net interest margin was 4.10% for the third quarter of 2013, a 22 basis point increase from the 3.88% achieved in the third quarter of 2012 and a 25 basis point increase over the 3.85% recorded in the second quarter of 2013.
Noninterest Income. For the third quarter of 2013, noninterest income was $213,000 compared with $667,000 for the same quarter last year and compared to $718,000 for the second quarter of 2013. Noninterest income was negatively impacted this quarter by a loss on sale of securities of $497,000 as the Bank looks to reduce duration exposure. Service charges on deposits and trade finance income were both up in the third quarter compared to last year but were both down from the levels recorded in the second quarter of 2013.
Noninterest Expense. Total noninterest expense was $7.8 million for the third quarter of 2013, compared to $9.1 million for the same period last year and $7.2 million for the second quarter of 2013. Salaries and benefits expense totaled $4.0 million for the third quarter of 2013 compared to $3.2 million for the same period last year and compared to $4.0 million for the second quarter of 2013. The increase over the third quarter of 2012 was due to higher bonus expense as well as higher staffing levels. Occupancy expense was $833,000 compared to the $743,000 recorded in the same period in 2012 and $805,000 recorded in the second quarter of 2013. The increase over 2012 was due primarily to the new San Francisco branch occupancy costs. Professional services expense was $1.0 million for the third quarter of 2013 compared to $1.0 million for the same quarter of 2012 and $794,000 recorded in the second quarter of 2013. Other real estate owned ("OREO") related and loans held for sale ("LHFS") expenses totaled $73,000 for the third quarter of 2013 (consisting of $159,000 in operating expenses partially offset by net gains on sale of OREO of $86,000). This represented a significant decrease from the $2.6 million recorded in the same quarter last year and an increase from the $(569,000) posted in the second quarter of 2013. Other expenses were $1.5 million in the third quarter of 2013, an increase of $281,000 over the same period in 2012 and a decrease of $365,000 compared to the second quarter of 2013. The variance compared to the same period last year was primarily due to $188,000 of charges related to the depreciation of the Bank's investment in a Low Income Housing Tax Credit fund.
Balance Sheet Summary
Total gross loans and leases (including loans held for sale) at September 30, 2013 were $1.29 billion, an increase of $158.6 million over the total of $1.13 billion as of December 31, 2012. This represents an annualized growth rate of 18.7% for 2013. Comparing balances as of September 30, 2013 to December 31, 2012, Residential real estate loans increased from $152.4 million to $197.1 million; land loans decreased from $27.2 million to $17.1 million; commercial real estate loans increased from $493.1 million to $615.7 million; for-sale housing construction loans decreased from $36.3 million to $22.6 million; other construction loans increased from $38.1 million to $43.4 million and commercial loans increased from $372.5 million to $394.3 million.
Total deposits as of September 30, 2013 were $1.47 billion, an increase of $112.6 million from the $1.36 billion at December 31, 2012. In the early part of January, the Bank elected to reduce DDA deposits which would have required collateral of government securities to maintain. The process of reducing these deposits finalized in the third quarter as evidenced by the stabilization of those balances. As of September 30, 2013 compared to December 31, 2012; noninterest-bearing demand deposits decreased by $108.2 million or 24.2%, interest-bearing demand and savings deposits increased by $85.7 million or 24.7% and time deposits increased by $135.1 million or 24.0%. Total assets were $1.70 billion, a $146.3 million or 9.4% increase from the total of $1.55 billion as of December 31, 2012.
Asset Quality
As of September 30, 2013 total nonaccrual loans (excluding loans held for sale) decreased to $11.3 million compared to $19.0 million as of December 31, 2012. Total net charge-offs for the third quarter of 2013 were $867,000 compared to net charge-offs of $2.5 million for the second quarter of 2013. The preponderance of the charge-offs this quarter were taken against previously established specific reserves associated with classified loans that were resolved this quarter. Based on a detailed analysis of all impaired and classified loans, as well as an analysis of other qualitative factors, the Bank recorded a provision for loan losses of $1.2 million for the third quarter of 2013. This compares to a provision of $1.2 million in the third quarter of 2012 and $250,000 in the second quarter of 2013. The allowance for loan loss at September 30, 2013 was $18.3 million or 1.43% of total loans compared to $20.6 million or 1.84% of total loans at December 31, 2012.
| NPA Migration | ||
|
Non-Performing Assets Migration – Q3 2013 |
||
|
Non Accrual Loans |
OREO |
|
| Balance, June 30, 2013 | $ 15,367 | $ 14,513 |
| Additions | 64 | -- |
| Transfer to OREO | -- | -- |
| Loans Cured | -- | -- |
| Sales/Payoffs | (2,548) | (2,577) |
| Charge-off | (1,543) | -- |
| Balance, September 30, 2013 | $ 11,340 | $ 11,936 |
The table above excludes loans held for sale and TDR's that are on accrual status. Performing TDR's totaled $404,000 as of September 30, 2013. The $11.3 million in loans held for sale consist of one performing CRE loan for $5.0 million and one nonaccrual loan for $6.3 million.
OREO
Total OREO decreased to $11.9 million compared to $28.3 million as of December 31, 2012. During the third quarter of 2013, the Bank sold five OREO properties with an aggregate book value of $2.6 million.
| Asset Quality Table – September 30, 2013 | ||||||
| ($ in thousands) | 30-89 Days | Nonaccrual | OREO | |||
| # | $ | # | $ | # | $ | |
| Land-Residential | -- | $ -- | -- | $ -- | 3 | $ 9,685 |
| Land Commercial | -- | -- | -- | -- | 1 | 2,251 |
| Construction: | ||||||
| Residential | -- | -- | 1 | 3,570 | -- | -- |
| Commercial | -- | -- | -- | -- | -- | -- |
| RE-Housing for sale | -- | -- | -- | -- | -- | -- |
| CRE-Commercial | -- | -- | 4 | 4,004 | -- | -- |
| C&I/Trade Finance | 2 | 83 | 3 | 3,766 | -- | -- |
| Totals | 2 | $ 83 | 8 | $ 11,340 | 4 | $ 11,936 |
| Asset Quality Table – June 30, 2013 | ||||||
| ($ in thousands) | 30-89 Days | Nonaccrual | OREO | |||
| # | $ | # | $ | # | $ | |
| Land-Residential | -- | $ -- | -- | $ -- | 8 | $ 12,262 |
| Land Commercial | -- | -- | -- | -- | 1 | 2,251 |
| Construction: | ||||||
| Residential | -- | -- | 1 | 4,873 | -- | -- |
| Commercial | -- | -- | -- | -- | -- | -- |
| RE-Housing for sale | -- | -- | -- | -- | -- | -- |
| CRE-Commercial | -- | -- | 5 | 6,202 | -- | -- |
| C&I/Trade Finance | 1 | 50 | 5 | 4,292 | -- | -- |
| Totals | 1 | $ 50 | 11 | $ 15,367 | 9 | $ 14,513 |
Capitalization
As of September 30, 2013, the Bank's tier 1 leverage ratio was 11.84% and total risk-based capital ratio was 14.59%. This compares to 11.96% and 14.98% as of December 31, 2012, respectively. Pursuant to the Memorandum of Understanding (MOU) entered into on October 1, 2013, the Bank is required to maintain the following capital ratio:
| Ratio | Preferred Bank at 9/30/13 | MOU Requirement |
| Tier 1 Leverage Ratio | 11.84% | 10.0% |
Conference Call and Webcast
A conference call with simultaneous webcast to discuss Preferred Bank's third quarter 2013 financial results will be held tomorrow, October 23, at 2:00 p.m. Eastern / 11:00 a.m. Pacific. Interested participants and investors may access the conference call by dialing 800-762-8779 (domestic) or 480-629-9645 (international). The passcode for the call is 4643632. 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 CEO Li Yu, President and COO Wellington Chen, Chief Financial Officer Edward J. Czajka and Chief Credit Officer Louie Couto 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 800-406-7325 (domestic) or 303-590-3030 (international) through October 30, 2013; the passcode is 4643632.
About Preferred Bank
Preferred Bank is one of the largest independent commercial banks in California focusing on the Chinese-American market. 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 ten full-service branch banking offices in Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine, Diamond Bar, Anaheim, Pico Rivera and San Francisco, California. 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. Preferred Bank continues to benefit from the significant migration to California of ethnic Chinese from China and other areas of East Asia. While its business is not solely dependent on the Chinese-American market, it represents an important element of the Bank's operating strategy, especially for its branch network and deposit products and services. Preferred Bank believes it is well positioned to compete effectively with the smaller Chinese-American community banks, the larger commercial banks and other major banks operating in California by offering a high degree of personal service and responsiveness, experienced multi-lingual staff and substantial lending limits.
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 2012 Annual Report on Form 10-K filed with the Federal Deposit Insurance Corporation which can 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 Three Months Ended | |||
| September 30, | September 30, | June 30, | |
| 2013 | 2012 | 2013 | |
| Interest income: | |||
| Loans, including fees | $ 16,982 | $ 13,828 | $ 14,686 |
| Investment securities | 1,471 | 1,351 | 1,552 |
| Fed funds sold | 27 | 14 | 5 |
| Total interest income | 18,480 | 15,193 | 16,243 |
| Interest expense: | |||
| Interest-bearing demand | 542 | 441 | 508 |
| Savings | 22 | 18 | 22 |
| Time certificates | 1,371 | 1,398 | 1,288 |
| FHLB borrowings | 32 | -- | 3 |
| Total interest expense | 1,967 | 1,857 | 1,820 |
| Net interest income | 16,513 | 13,336 | 14,423 |
| Provision for loan losses | 1,200 | 1,200 | 250 |
| Net interest income after provision for loan losses | 15,313 | 12,136 | 14,173 |
| Noninterest income: | |||
| Fees & service charges on deposit accounts | 477 | 445 | 570 |
| Trade finance income | 133 | 56 | 144 |
| BOLI income | 83 | 82 | 83 |
| Net loss on sale of investment securities | (497) | -- | (358) |
| Other income | 17 | 84 | 279 |
| Total noninterest income | 213 | 667 | 718 |
| Noninterest expense: | |||
| Salary and employee benefits | 4,017 | 3,228 | 3,975 |
| Net occupancy expense | 833 | 743 | 805 |
| Business development and promotion expense | 89 | 73 | 83 |
| Professional services | 1,015 | 1,004 | 794 |
| Office supplies and equipment expense | 301 | 283 | 301 |
| Total other-than-temporary impairment losses | -- | 8 | 95 |
| Portion of loss recognized in other comprehensive income | -- | -- | (92) |
| Other real estate owned related expense (income) and valuation allowance on LHFS | 73 | 2,623 | 206 |
| Other | 1,462 | 1,181 | 1,051 |
| Total noninterest expense | 7,790 | 9,143 | 7,218 |
| Income before provision for income taxes | 7,736 | 3,660 | 7,673 |
| Income tax expense | 2,705 | 833 | 3,404 |
| Net income | $ 5,032 | $ 2,827 | $ 4,269 |
| Income allocated to participating securities | (55) | (37) | (54) |
| Net income available to common shareholders | $ 4,977 | $ 2,790 | $ 4,215 |
| Income per share available to common shareholders | |||
| Basic | $ 0.38 | $ 0.21 | $ 0.32 |
| Diluted | $ 0.37 | $ 0.21 | $ 0.32 |
| Weighted-average common shares outstanding | |||
| Basic | 13,112,835 | 13,062,146 | 13,085,394 |
| Diluted | 13,370,223 | 13,255,778 | 13,355,058 |
| 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 | |
| 2013 | 2012 | % | |
| Interest income: | |||
| Loans, including fees | $ 46,607 | $ 40,896 | 14.0% |
| Investment securities | 4,573 | 4,619 | -1.0% |
| Fed funds sold | 32 | 16 | 103.7% |
| Total interest income | 51,212 | 45,531 | 12.5% |
| Interest expense: | |||
| Interest-bearing demand | 1,581 | 1,257 | 25.8% |
| Savings | 65 | 55 | 18.2% |
| Time certificates | 3,935 | 4,570 | -13.9% |
| FHLB borrowings | 35 | -- | 100.0% |
| Senior debt | -- | 94 | -100.0% |
| Total interest expense | 5,616 | 5,976 | -6.0% |
| Net interest income | 45,596 | 39,555 | 15.3% |
| Provision for credit losses | 1,450 | 17,500 | -91.7% |
| Net interest income after provision for loan losses | 44,146 | 22,055 | 100.2% |
| Noninterest income: | |||
| Fees & service charges on deposit accounts | 1,594 | 1,312 | 21.5% |
| Trade finance income | 484 | 222 | 118.1% |
| BOLI income | 247 | 246 | 0.3% |
| Net (loss) gain on sale of investment securities | (854) | 554 | -254.2% |
| Other income | 318 | 426 | -25.3% |
| Total noninterest income | 1,789 | 2,760 | -35.2% |
| Noninterest expense: | |||
| Salary and employee benefits | 12,265 | 9,207 | 33.2% |
| Net occupancy expense | 2,406 | 2,237 | 7.5% |
| Business development and promotion expense | 267 | 190 | 40.5% |
| Professional services | 2,698 | 2,224 | 21.3% |
| Office supplies and equipment expense | 909 | 873 | 4.1% |
| Total other-than-temporary impairment losses | 99 | 24 | 312.5% |
| Portion of loss recognized in other comprehensive income | (92) | -- | -100.0% |
| Other real estate owned related expense and valuation allowance on LHFS | 1,643 | 7,272 | -77.4% |
| Other | 3,655 | 3,998 | -8.6% |
| Total noninterest expense | 23,850 | 26,025 | -8.4% |
| Income (loss) before provision for income taxes | 22,086 | (1,210) | -1925.3% |
| Income tax expense (benefit) | 8,755 | (20,167) | -143.4% |
| Net income | $ 13,331 | $ 18,957 | -29.7% |
| $ -- | $ -- | ||
| Income allocated to participating securities | (161) | (262) | -38.6% |
| Net income available to common shareholders | $ 13,170 | $ 18,695 | -29.6% |
| Income per share available to common shareholders | |||
| Basic | $ 1.01 | $ 1.43 | -29.8% |
| Diluted | $ 0.99 | $ 1.41 | -30.2% |
| Weighted-average common shares outstanding | |||
| Basic | 13,089,970 | 13,045,635 | 0.3% |
| Diluted | 13,355,157 | 13,240,612 | 0.9% |
| PREFERRED BANK | ||
| Condensed Consolidated Statements of Financial Condition | ||
| (unaudited) | ||
| (in thousands) | ||
| September 30, | December 31, | |
| 2013 | 2012 | |
| Assets | ||
| Cash and due from banks | $ 160,405 | $ 151,995 |
| Fed funds sold | 30,000 | -- |
| Cash and cash equivalents | 190,405 | 151,995 |
| Securities held to maturity, at amortized cost | -- | 979 |
| Securities available-for-sale, at fair value | 166,821 | 210,742 |
| Loans and leases | 1,278,964 | 1,119,553 |
| Less allowance for loan and lease losses | (18,344) | (20,607) |
| Less net deferred loan fees | (2,429) | (2,019) |
| Net loans and leases | 1,258,191 | 1,096,927 |
| Loans held for sale, at lower of cost or fair value | 11,329 | 12,150 |
| Other real estate owned | 11,936 | 28,280 |
| Customers' liability on acceptances | 698 | 1,961 |
| Bank furniture and fixtures, net | 4,290 | 4,383 |
| Bank-owned life insurance | 8,229 | 8,049 |
| Accrued interest receivable | 5,014 | 5,646 |
| Investment in affordable housing | 4,752 | -- |
| Federal Home Loan Bank stock | 5,296 | 4,282 |
| Deferred tax assets | 28,752 | 26,975 |
| Income tax receivable | 587 | 542 |
| Other asset | 4,869 | 1,945 |
| Total assets | $ 1,701,169 | $ 1,554,856 |
| Liabilities and Shareholders' Equity | ||
| Liabilities: | ||
| Deposits: | ||
| Demand | $ 338,579 | $ 446,734 |
| Interest-bearing demand | 409,319 | 325,018 |
| Savings | 23,223 | 21,844 |
| Time certificates of $250,000 or more | 203,579 | 185,001 |
| Other time certificates | 495,437 | 378,930 |
| Total deposits | $ 1,470,137 | $ 1,357,527 |
| Acceptances outstanding | 698 | 1,961 |
| Advances from Federal Home Loan Bank | 20,000 | -- |
| Accrued interest payable | 825 | 968 |
| Other liabilities | 9,220 | 6,562 |
| Total liabilities | 1,500,880 | 1,367,018 |
| Commitments and contingencies | ||
| Shareholders' equity: | ||
| Preferred stock. Authorized 25,000,000 shares; no issued and outstanding | ||
| shares at September 30, 2013 and December 31, 2012 | — | — |
| Common stock, no par value. Authorized 20,000,000 shares; issued | ||
| and outstanding 13,262,704 and 13,234,608 shares at September 30, 2013 and December 31, 2012, respectively | 163,183 | 162,927 |
| Treasury stock | (19,115) | (19,115) |
| Additional paid-in-capital | 25,857 | 24,544 |
| Accumulated income | 30,812 | 17,481 |
| Accumulated other comprehensive income (loss): | -- | -- |
| Non-credit portion of loss recognized, net of tax of $94 and $133 at September 30, 2013 and December 31, 2012, respectively | (131) | (184) |
| Unrealized gain(loss) on securities, available-for-sale, net of tax of $231 and $1,585 at September 30, 2013 and December 31, 2012 | (317) | 2,185 |
| Total shareholders' equity | 200,289 | 187,838 |
| Total liabilities and shareholders' equity | $ 1,701,169 | $ 1,554,856 |
| PREFERRED BANK | ||||
| Selected Consolidated Financial Information | ||||
| (unaudited) | ||||
| (in thousands, except for ratios) | ||||
| For the Three Months Ended | ||||
| September 30, | June 30, | March 31, | September 30, | |
| 2013 | 2013 | 2013 | 2012 | |
| For the period: | ||||
| Return on average assets | 1.20% | 1.09% | 1.05% | 0.79% |
| Return on average equity | 10.11% | 8.77% | 8.53% | 6.31% |
| Net interest margin (Fully-taxable equivalent) | 4.10% | 3.85% | 4.01% | 3.88% |
| Noninterest expense to average assets | 1.86% | 1.84% | 2.31% | 2.55% |
| Efficiency ratio | 46.58% | 47.67% | 56.98% | 65.29% |
| Net charge-offs (recoveries) to average loans (annualized) | 0.28% | 0.83% | 0.13% | 0.57% |
| Period end: | ||||
| Tier 1 leverage capital ratio | 11.84% | 12.18% | 12.01% | 12.19% |
| Tier 1 risk-based capital ratio | 13.34% | 13.51% | 13.61% | 14.08% |
| Total risk-based capital ratio | 14.58% | 14.76% | 14.86% | 15.33% |
| Allowances for credit losses to loans and leases at end of period ** | 1.43% | 1.48% | 1.75% | 2.03% |
| Allowance for credit losses to non-performing loans and leases | 103.47% | 71.79% | 74.13% | 66.60% |
| Average balances: | ||||
| Total loans and leases* | $ 1,245,753 | $ 1,198,818 | $ 1,139,317 | $ 1,014,022 |
| Earning assets | $ 1,608,366 | $ 1,520,024 | $ 1,487,826 | $ 1,379,218 |
| Total assets | $ 1,665,591 | $ 1,572,529 | $ 1,545,400 | $ 1,443,942 |
| Total deposits | $ 1,436,385 | $ 1,362,295 | $ 1,344,983 | $ 1,255,464 |
| Period end: | ||||
| Loans and Leases: | ||||
| Real estate - Single and multi-family residential | $ 197,119 | $ 190,037 | $ 156,613 | $ 147,586 |
| Real estate - Land for housing | 9,149 | 23,079 | 23,091 | 22,827 |
| Real estate - Land for income properties | 1,560 | 1,571 | 1,581 | 1,608 |
| Real estate - Commercial | 610,764 | 549,907 | 502,589 | 476,961 |
| Real estate - For sale housing construction | 22,631 | 25,177 | 31,341 | 40,245 |
| Real estate - Other construction | 43,413 | 46,061 | 39,366 | 25,547 |
| Commercial and industrial | 346,261 | 328,676 | 349,615 | 301,812 |
| Trade finance and other | 48,067 | 49,917 | 52,924 | 48,622 |
| Gross loans | 1,278,964 | 1,214,425 | 1,157,120 | 1,065,208 |
| Allowance for loan and lease losses | (18,344) | (18,011) | (20,234) | (21,601) |
| Net deferred loan fees | (2,429) | (2,197) | (2,175) | (1,695) |
| Loans excluding loans held for sale | 1,258,191 | 1,194,217 | 1,134,711 | 1,041,912 |
| Loans held for sale | 11,329 | 14,685 | 15,670 | 9,573 |
| Total loans, net | $ 1,269,520 | $ 1,208,902 | $ 1,150,381 | $ 1,051,485 |
| Deposits: | ||||
| Noninterest-bearing demand | $ 338,579 | $ 350,641 | $ 409,253 | $ 406,771 |
| Interest-bearing demand and savings | 432,542 | 400,073 | 359,476 | 310,550 |
| Total core deposits | 771,121 | 750,714 | 768,729 | 717,321 |
| Time deposits | 699,016 | 681,529 | 615,270 | 574,589 |
| Total deposits | $ 1,470,137 | $ 1,432,243 | $ 1,383,999 | $ 1,291,910 |
| * Loans held for sale are included | ||||
| ** Loans held for sale are excluded | ||||
| Preferred Bank | ||
| Loan and Credit Quality Information | ||
| Allowance For Credit Losses & Loss History | ||
| Nine Months Ended | Year Ended | |
| September 30, 2013 | December 31, 2012 | |
| (Dollars in 000's) | ||
| Allowance For Credit Losses | ||
| Balance at Beginning of Period | $ 20,607 | $ 23,718 |
| Charge-Offs | ||
| Commercial & Industrial | 3,800 | 10,525 |
| Mini-perm Real Estate | 1,668 | 3,903 |
| Construction - Residential | 2,121 | -- |
| Construction - Commercial | -- | 2,185 |
| Land - Residential | -- | 592 |
| Land - Commercial | -- | 6,276 |
| Others | -- | -- |
| Total Charge-Offs | 7,589 | 23,481 |
| Recoveries | ||
| Commercial & Industrial | 366 | 63 |
| Mini-perm Real Estate | 1,364 | 296 |
| Construction - Residential | 1,951 | 2 |
| Construction - Commercial | 163 | 145 |
| Land - Residential | 28 | 57 |
| Land - Commercial | 4 | 7 |
| Total Recoveries | 3,876 | 570 |
| Net Loan Charge-Offs | 3,713 | 22,911 |
| Provision for Credit Losses | 1,450 | 19,800 |
| Balance at End of Period | $ 18,344 | $ 20,607 |
| Average Loans and Leases* | $ 1,195,034 | $ 1,018,366 |
| Loans and Leases at end of Period* | $ 1,278,964 | $ 1,119,553 |
| Net Charge-Offs to Average Loans and Leases | 0.42% | 2.25% |
| Allowances for credit losses to loans and leases at end of period * | 1.43% | 1.75% |
| * Loans held for sale are excluded | ||