(Source: PRNewswire-FirstCall)
LOS ANGELES, May 20 /PRNewswire-FirstCall/ -- Preferred Bank , an independent commercial bank focusing on the Chinese-American and diversified Southern California mainstream market, today reported final results for the quarter ended March 31, 2009. Preferred Bank reported a net loss of $1.3 million or $0.13 per diluted share for the quarter compared to net income of $3.4 million or $0.34 per diluted share for the first quarter of 2008 and compared to a net loss of $5.0 million or $0.51 per diluted share for the fourth quarter of 2008. On April 17, 2009 Preferred Bank released preliminary results which indicated that net income for the first quarter of 2009 was $337,000, or $0.03 per diluted share. The change between the earnings release on April 17, 2009 was due primarily to an increase in the provision for credit losses for the quarter from $1.35 million to $6.55 million partially offset by a decrease in other real estate owned ("OREO") expense of $2.3 million and a decrease in other-than temporary impairment charges ("OTTI") of $225,000.
Of the increase in provision for credit losses, $2.7 million was related to one credit due to the receipt of information that indicated a decline in fair value that Preferred Bank received from the lead bank on May 11, 2009. In addition, Preferred Bank also reclassified OREO expense to provision for credit losses of $2.3 million reflecting the fair value of a property upon foreclosure in March 2009. In addition, Preferred Bank also increased its qualatative component of its allowance for loan loss by $140,000. Finally, the final analysis of Preferred Bank's investment portfolio and the effect of the adoption of the three new FSPs related to FAS 157 indicated that the OTTI charge was actually $425,000 from the previously disclosed amount of $650,000.
Preferred Bank filed its Quarterly Report on Form 10-Q today with the FDIC in accordance with the five day extension allowed by its filing of a Form 12b-25 which was filed with the FDIC on May 15, 2009. This report can be accessed 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 eleven full-service branch banking offices in Alhambra, Century City, Chino Hills, City of Industry, Torrance, Arcadia, Irvine, Diamond Bar, Santa Monica, Anaheim and Pico Rivera, California.
