LOS ANGELES, March 18 /PRNewswire-FirstCall/ -- Preferred Bank (Nasdaq: PFBC), an independent commercial bank focusing on the Chinese-American and diversified Southern California mainstream market, today reported revised results for the quarter and year ended December 31, 2008. Preferred Bank had previously reported a net loss of $468,000 or $0.05 per diluted share for the fourth quarter of 2008 and a net loss of $473,000 or $0.05 per diluted share for the year ended December 31, 2008. Based primarily on new information that was received subsequent to its January 27, 2009 Earnings Release, Management has increased its loan loss reserves on specific impaired credits of $3.44 million and has also recorded an additional allowance on its loans graded as 'pass' of $1.16 million as of December 31, 2008. For the quarter ended December 31, 2008, Preferred Bank posted a net loss of $3.2 million or $0.32 per diluted share and for the year ended December 31, 2008, the Bank reported a net loss of $3.2 million or $0.32 per diluted share. Although the revised appraisal information was received in February and March, Management has concluded that the value deterioration of these specific credits actually took place during 2008 and is therefore recording these additional charges as of December 31, 2008.

The additional provision for loan losses were specifically related to:

• $624,000 in additional reserves provided on a participation loan due to an updated appraisal received from the lead bank in late February.
• An additional $1.35 million in reserves on a loan due to a new appraisal received from the lead bank in early March.
• An additional $391,000 in additional reserves on a construction loan based on an update to Management's estimate of value which required further discounting of an older appraisal value.
• $584,000 in additional reserves provided based on an update to Management's estimate of value which required further discounting of a dated appraisal pending the receipt of a new appraisal which should be completed in April.
• $490,000 in additional reserves on a commercial loan due to updated information received from the bankruptcy court in February.