LOS ANGELES, April 17, 2013 (GLOBE NEWSWIRE) -- Preferred Bank (Nasdaq:PFBC), an independent commercial bank focusing on the Chinese-American and diversified California mainstream market, today reported preliminary results for the quarter ended March 31, 2013. Preferred Bank ("the Bank") reported net income of $4.0 million or $0.30 per diluted share for the first quarter of 2013. This compares to net income of $21.7 million or $1.62 per diluted share for the first quarter of 2012 and compares to net income of $4.9 million or $0.37 per diluted share for the fourth quarter of 2012. Net income for the first quarter of 2012 was aided by the $19.8 million reversal of the Bank's valuation allowance on its deferred tax asset ("DTA") and earnings for the fourth quarter of 2012 were aided by a small reversal of certain tax items which increased net income by $416,000 for that quarter. Pre-tax income on a year over year basis increased from $3.0 million in the first quarter of 2012 to $6.7 million in the first quarter of 2013, an increase of 126%. Pre-tax income on a sequential quarter basis increased by $2.2 million or 48.5%.
- Highlights from the first quarter of 2013 include:
- Linked quarter loan growth of $41.1 million or 3.6%
- OREO declined by $8.4 million or 29.7% from December 31, 2012
- Nonperforming loans excluding loans held for sale declined by $2.4 million or 12.6% from December 31, 2012
- Net interest margin expanded from 3.91% to 4.03% linked quarter
- Linked quarter deposit growth of $26.5 million or 2.0%
Li Yu, Chairman and CEO commented, "We are very pleased to report that for the first quarter of 2013, the Bank earned $4.0 million or $0.30 per diluted share, a marked improvement from the same quarter last year after stripping out the DTA allowance reversal in that period. Operating results were better than we previously expected."