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.