LOS ANGELES, Oct. 17, 2012 (GLOBE NEWSWIRE) -- Preferred Bank (Nasdaq:PFBC), an independent commercial bank focusing on the Chinese-American and diversified Southern California mainstream market, today reported results for the quarter ended September 30, 2012. Preferred Bank ("the Bank") reported net income of $2.8 million or $0.21 per diluted share for the third quarter of 2012. This compares to net income of $6.0 million or $0.46 per diluted share for the third quarter of 2011 and compares to a net loss of $5.6 million or $0.43 per diluted share for the second quarter of 2012. Net income for the third quarter of 2011 was aided by the $4.5 million partial reversal of the Bank's valuation allowance on its deferred tax asset ("DTA"). The loss for the second quarter of 2012 was mainly due to a provision for loan losses of $14.5 million which was the result of two loan relationships which were significantly written down in that quarter.
- Highlights from the third quarter of 2012 include:
- Loan growth of $66.5 million or 6.6%
- Deposits continue to grow; an increase of $56.0 million most of which was DDA
- Continued decline in NPA's
Li Yu, Chairman and CEO commented, "we are very pleased to report third quarter net income of $2.8 million or $0.21 per diluted share. This quarter, we experienced exceptional loan growth. Total loans increased $66.5 million or 6.6% on a sequential quarter basis. This growth is the result of the staffing hires we have made over the past several quarters and the hard work of all our business development team. As of this release, the loan pipeline remains healthy however we do not expect the same level of growth in the fourth quarter as that achieved in the third quarter. This is primarily due to the holiday season as fewer transactions occur during that time."