LOS ANGELES, Aug. 11 /PRNewswire-FirstCall/ -- Preferred Bank
(Nasdaq: PFBC), an independent commercial bank focusing on the
Chinese-American and diversified Southern California mainstream market, today
reported a revision to its net income for the quarter ended June 30, 2008.
Revised net income totaled $18,000 for the second quarter of 2008, a 99.7%
decrease from net income of $7.0 million for the same period in 2007 while
diluted earnings per share decreased 100.0% to $0.00 for the quarter compared
to $0.65 for the second quarter of 2007.
The revision was due to the recording of an income tax expense of $430,000
for a valuation allowance against the net deferred tax asset related to the
Bank's $1.9 million charge for other-than-temporary impairment ('OTTI') on its
FHLMC preferred stock. This OTTI charge was a capital item in nature. During
the process of preparing our Quarterly Report on Form 10-Q, the Bank
determined that it was necessary to establish a valuation allowance against a
portion of the net deferred tax asset related to the impairment charge. The
valuation allowance was established to reduce the net deferred tax asset to
the amount that management believes is more likely than not to be realized as
of June 30, 2008.
Preferred bank has filed its Quarterly Report on Form 10-Q with the
Federal Deposit Insurance Corporation today and this report may also be found
on its website at http://www.preferredbank.com.
About Preferred Bank
Preferred Bank is one of the largest independent commercial banks in
California focusing on the Chinese-American market. 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
Company conducts its banking business from its main office in Los Angeles,
California, and through ten full-service branch banking offices in Alhambra,
Century City, Chino Hills, City of Industry, Torrance, Arcadia, Irvine,
Diamond Bar, Santa Monica and Valencia, California. 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. Preferred Bank continues to benefit from the
significant migration to Southern California of ethnic Chinese from China and
other areas of East Asia. While its business is not solely dependent on the
Chinese-American market, it represents an important element of the bank's
operating strategy, especially for its branch network and deposit products and
services. Preferred Bank believes it is well positioned to compete effectively
with the smaller Chinese-American community banks, the larger commercial banks
and other major banks operating in Southern California by offering a high
degree of personal service and responsiveness, experienced multi-lingual staff
and substantial lending limits.
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 2007 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 http://www.preferredbank.com.
For Further Information:
AT THE COMPANY: AT FINANCIAL RELATIONS BOARD:
Edward J. Czajka Lasse Glassen
Chief Financial Officer General Information
(213) 891-1188 (213) 486-6546
lglassen@frbir.com
SOURCE Preferred Bank
