LOS ANGELES, Jan. 22, 2013 (GLOBE NEWSWIRE) -- Preferred Bank (Nasdaq:PFBC), an independent commercial bank focusing on the Chinese-American and diversified Southern California mainstream market, today reported preliminary results for the quarter and year ended December 31, 2012. Preferred Bank ("the Bank") reported net income of $3.4 million or $0.25 per diluted share for the fourth quarter of 2012. This compares to net income of $3.8 million or $0.29 per diluted share for the fourth quarter of 2011 and compares to net income of $2.8 million or $0.21 per diluted share for the third quarter of 2012. Net income for the fourth quarter of 2011 was aided by the $1.4 million partial reversal of the Bank's valuation allowance on its deferred tax asset ("DTA"). Pre-tax income on a year over year basis increased from $2.4 million in the fourth quarter of 2011 to $4.5 million in the fourth quarter of 2012, an increase of 90%. Results for the fourth quarter and year ended December 31, 2012 are preliminary due to the ongoing effort to finalize the Bank's income tax position. At this point, the Bank anticipates that the actual income tax expense for the fourth quarter may be less than that currently recorded.
-- Highlights from the fourth quarter of 2012 include:
- Linked quarter loan growth of $56.9 million or 5.3%
- Linked quarter deposit growth of $65.6 million or 5.1%
- OREO declined by $6.7 million or 19% from September 30, 2012
- Nonperforming loans declined by $3.9 million or 16.9% from September 30, 2012
- Net interest margin saw slight expansion from 3.88% to 3.91% linked quarter
Li Yu, Chairman and CEO commented, "For the fourth quarter, the Bank earned $3.4 million or $0.25 per diluted share. This amount exceeded our own expectations and we are pleased to report it. Non-performing assets continue to decline. During the quarter, we reduced OREO by $6.7 million, nonperforming loans by $3.9 million and reduced TDR's by $8.1 million. Our resolution efforts continue and we hope to achieve meaningful results in the ensuing quarters.