LOS ANGELES, Oct. 16, 2019 (GLOBE NEWSWIRE) -- Preferred Bank (NASDAQ: PFBC), 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:

  • Linked-quarter Deposit Growth
5.22%
  • Linked-quarter Loan Growth
2.48%
  • Return on Assets
1.81%
  • Return on Beginning Equity
17.61%
  • Efficiency Ratio
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,
   20192019201920182018
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. CzajkaTony Rossi
Executive Vice PresidentGeneral Information
Chief Financial Officer(310) 622-8221
(213) 891-1188PFBC@finprofiles.com