Preferred Bank Reports Final Fourth Quarter Results

The Preferred Bank logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11817

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 2011 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
	December 31, 2012	December 31, 2011	September 30, 2012
Interest income:
Loans, including fees	$ 14,504	$ 11,997	$ 13,834
Investment securities	1,496	1,760	1,340
Fed funds sold	10	--	14
Total interest income	16,010	13,757	15,189
Interest expense:
Interest-bearing demand	489	422	441
Savings	20	20	18
Time certificates	1,297	1,808	1,398
Senior debt	--	188	--
Total interest expense	1,806	2,438	1,857
Net interest income	14,204	11,319	13,332
Provision for loan losses	2,300	2,400	1,200
Net interest income after provision for loan losses	11,904	8,919	12,132
Noninterest income:
Fees & service charges on deposit accounts	480	440	445
Trade finance income	87	57	56
BOLI income	83	84	82
Net gain (loss) on sale of investment securities	21	--	--
Other income	78	241	84
Total noninterest income	749	822	667
Noninterest expense:
Salary and employee benefits	3,316	2,919	3,228
Net occupancy expense	753	739	743
Business development and promotion expense	104	123	73
Professional services	1,003	661	1,004
Office supplies and equipment expense	281	297	283
Total other-than-temporary impairment losses	--	--	8
Portion of loss recognized in other comprehensive income	--	--	--
Other real estate owned related expense	1,696	1,227	2,525
Other	1,001	1,407	1,278
Total noninterest expense	8,154	7,373	9,143
Income before provision for income taxes	4,498	2,368	3,655
Income tax expense (benefit)	(928)	(1,399)	833
Net income	$ 5,426	$ 3,767	$ 2,822
Income allocated to participating securities	(69)	(64)	(37)
Net income available to common shareholders	$ 5,357	$ 3,703	$ 2,785
Income per share available to common shareholders
Basic	$ 0.41	$ 0.29	$ 0.21
Diluted	$ 0.40	$ 0.29	$ 0.21
Weighted-average common shares outstanding
Basic	13,065,227	13,000,092	13,062,146
Diluted	13,291,592	13,000,092	13,255,778

PREFERRED BANK
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except for net income per share and shares)
	For the Twelve Months Ended
	December 31, 2012	December 31, 2011	Change %
Interest income:
Loans, including fees	$ 55,400	$ 46,464	19.2%
Investment securities	6,116	7,326	-16.5%
Fed funds sold	26	--	100.0%
Total interest income	61,542	53,790	14.4%
Interest expense:
Interest-bearing demand	1,746	1,295	34.8%
Savings	75	92	-18.3%
Time certificates	5,868	8,163	-28.1%
Senior debt	94	753	-87.5%
Total interest expense	7,783	10,303	-24.5%
Net interest income	53,759	43,487	23.6%
Provision for credit losses	19,800	5,700	247.4%
Net interest income after provision for loan losses	33,959	37,787	-10.1%
Noninterest income:
Fees & service charges on deposit accounts	1,792	1,742	2.9%
Trade finance income	309	241	28.1%
BOLI income	329	333	-1.1%
Net gain on sale of investment securities	575	81	611.7%
Other income	503	393	27.8%
Total noninterest income	3,508	2,790	25.7%
Noninterest expense:
Salary and employee benefits	12,523	11,155	12.3%
Net occupancy expense	2,990	3,060	-2.3%
Business development and promotion expense	294	335	-12.1%
Professional services	3,227	2,267	42.4%
Office supplies and equipment expense	1,154	1,061	8.7%
Total other-than-temporary impairment losses	24	32	-25.0%
Portion of loss recognized in other comprehensive income	--	--	0.0%
Other real estate owned related expense	8,580	8,303	3.3%
Other	5,387	7,180	-25.0%
Total noninterest expense	34,179	33,393	2.4%
Income before provision for income taxes	3,288	7,185	-54.2%
Income tax benefit	(21,095)	(5,049)	317.8%
Net income	$ 24,383	$ 12,234	99.3%
Income allocated to participating securities	(330)	(195)	100.0%
Net income available to common shareholders	$ 24,053	$ 12,039	99.8%
Income per share available to common shareholders
Basic	$ 1.84	$ 0.93	98.9%
Diluted	$ 1.82	$ 0.93	96.0%
Weighted-average common shares outstanding
Basic	13,050,559	12,995,525	0.4%
Diluted	13,247,389	12,995,525	1.9%

PREFERRED BANK
Condensed Consolidated Statements of Financial Condition
(unaudited)
(in thousands)
	December 31, 2012	December 31, 2011
Assets
Cash and due from banks	$ 151,995	$ 142,466
Cash and cash equivalents	151,995	142,466
Securities held to maturity, at amortized cost	979	3,021
Securities available-for-sale, at fair value	210,742	166,083
Loans and leases	1,119,553	949,631
Less allowance for loan and lease losses	(20,607)	(23,718)
Less net deferred loan fees	(2,019)	(1,037)
Net loans and leases	1,096,927	924,876
Loans held for sale, at lower of cost or fair value	12,150	3,996
Other real estate owned	28,280	37,577
Customers' liability on acceptances	1,961	427
Bank furniture and fixtures, net	4,383	4,789
Bank-owned life insurance	8,049	7,808
Accrued interest receivable	5,646	4,851
Federal Home Loan Bank stock	4,282	4,164
Deferred tax assets	26,971	6,979
Other asset	3,002	2,760
Total assets	$ 1,555,367	$ 1,309,797
Liabilities and Shareholders' Equity
Liabilities:
Deposits:
Demand	$ 446,734	$ 239,987
Interest-bearing demand	325,018	233,349
Savings	21,844	22,385
Time certificates of $250,000 or more	208,005	185,001
Other time certificates	355,926	437,231
Total deposits	$ 1,357,527	$ 1,117,953
Acceptances outstanding	1,961	427
Senior debt issuance	--	25,996
Accrued interest payable	968	1,292
Other liabilities	6,562	6,081
Total liabilities	1,367,018	1,151,749
Commitments and contingencies
Shareholders' equity:
Preferred stock. Authorized 25,000,000 shares; no issued and outstanding shares at December 31, 2012 and December 31, 2011	—	—
Common stock, no par value. Authorized 20,000,000 shares; issued and outstanding 13,234,608 and 13,220,955 shares at December 31, 2012 and December 31, 2011, respectively	162,927	162,884
Treasury stock	(19,115)	(19,115)
Additional paid-in-capital	24,544	23,456
Accumulated income	17,992	(6,391)
Accumulated other comprehensive income (loss):
Non-credit portion of loss recognized, net of tax of $133 and $367 at December 31, 2012 and December 31, 2011, respectively	(184)	(481)
Unrealized loss on securities, available-for-sale, net of tax of $1,131 and $1,554 at December 31, 2012 and December 31, 2011	2,185	(2,305)
Total shareholders' equity	188,349	158,048
Total liabilities and shareholders' equity	$ 1,555,367	$ 1,309,797

CONTACT: AT THE COMPANY:
         Edward J. Czajka
         Executive Vice President
         Chief Financial Officer
         [phone]
         
         AT FINANCIAL PROFILES:
         Kristen McNally
         General Information
         [phone]
         [e-mail]

« First ‹ Previous 1 2