Investor Releations

Home

Corporate Profile

Officers & Directors

Governance Documents

Stock Information

Stock Splits & Dividends

Press Releases

Financial Highlights

Company Filings

Offering Documents

Presentations / Webcasts Archives

Event Calendar

Information Request

FAQ

Proxy Materials

Menu

Can't find what you're looking for? Search here.

Submit

IR Search

Investor Search

Entire IR Site

Documents

Press Releases

Press Release

Press Release

Preferred Bank Reports Quarterly Results

Company Release - 4/23/2024

Download the PDF version
PDF Format (opens in new window)

LOS ANGELES, April 23, 2024 (GLOBE NEWSWIRE) -- Preferred Bank (NASDAQ: PFBC), one of the larger independent California banks, today reported results for the quarter ended March 31, 2024. Preferred Bank (“the Bank”) reported net income of $33.5 million or $2.44 per diluted share for the first quarter of 2024. This represents a decrease in net income of $2.4 million or 6.6% from the prior quarter and down by $4.6 million from the same quarter last year. Despite the decrease in net income, Preferred Bank continues to deliver top-of-class profitability metrics and long term shareholder returns.

Highlights for the Quarter:

Return on average assets was 2.00%

Return on beginning equity of 19.36%

Net interest margin was 4.19%

Total deposits increased by $92 million or 1.62% for the quarter

Total loans increased $52 million or 1.0% for the quarter

Efficiency ratio was 28.0%

Li Yu, Chairman and CEO, commented, “We are pleased to report first quarter 2024 net income of $33.5 million or $2.44 per diluted share. For the quarter, loans grew $52 million and total deposits increased $92 million from December 31, 2023, which equates to annual growth rates of 4.0% and 6.5%, respectively. The Bank’s net interest margin for the quarter was 4.19% which was better than expected. This compares to a margin of 4.24% for the previous quarter and the slight decrease was primarily the result of higher deposit costs.

“At March 31, 2024 criticized loans were $86.6 million, an increase of $3.7 million from the $83.0 million as of December 31, 2023. Non-accrual loans decreased from $28.7 million at December 31, 2023 to $18.3 million at March 31, 2024. Charge-offs for the quarter were $3.4 million which were on two loans that had been previously identified as having loss content and fully reserved for. The Bank recorded a first quarter provision of $4.4 million. Allowance for loan loss reserve now stands at 1.49% of total loans.

“During the first quarter, we repurchased 256,986 shares of our common stock for a total consideration of $18.2 million.

“Our Bank opened a new Orange County, California Branch in January. This branch provides complete banking services, staffed with a deposit group and a lending group. As of today, we have signed a lease and are in the process of opening up a loan production office in Silicon Valley, California. We also plan to increase relationship staff in several current operating locations in the ensuing months.

“In view of the current moderately declining interest rate environment, we have made some adjustment to our loan portfolio by reducing the level of rate sensitivity to better balance with our deposit composition. We believe such adjustments will bring long term benefits to our Bank.”

Results of Operations

Net Interest Income and Net Interest Margin. Net interest income before provision for credit losses was $68.5 million for the first quarter of 2024. This was a decrease from the $73.7 million recorded in the same quarter last year and down slightly from the $69.4 million posted in the fourth quarter of 2023. The Bank’s taxable equivalent net interest margin declined by 5 basis points to 4.19%, from 4.24% last quarter. Although the NIM compressed this quarter, it held up much better than anticipated. Comparing to the same quarter last year, which was the Bank’s peak NIM in this cycle, the margin was down by 58 basis points from the 4.77% NIM posted in the first quarter of 2023.

Noninterest Income. For the first quarter of 2024, noninterest income (loss) was $3.1 million compared with ($1.1) million for the same quarter last year and compared to $2.1 million for the fourth quarter of 2023. The increase over the prior quarter was primarily due to a $929,000 loss on sale of approximately $29 million in investment securities in the fourth quarter of 2023. This was done to reposition a part of the portfolio into higher-yielding instruments. In comparing to the same quarter last year; service charges on deposits and LC fee income were both up over last year and gains in loan sales were down. In addition, the Bank incurred a $4.1 million loss last year on the sale of the Bank’s Signature Bank bond with no such loss this year.

Noninterest Expense. Total noninterest expense was $20.0 million for the first quarter of 2024 compared to $17.9 million for the fourth quarter of 2023 and compared to the $18.9 million recorded in the same period last year. Comparing this quarter to the first quarter of last year, the major variances were: professional services was up by $308,000 due to increased legal fees, occupancy expense was up by $237,000 due to our new location and personnel expense increased by $172,000. In comparing the first quarter of 2024 to the prior quarter; personnel expense increased by $1.8 million, occupancy expense was up by $175,000 and OREO expense declined by $159,000. For the quarter ended March 31, 2024, the Bank’s efficiency ratio was 28.0%, off from the 25.0% posted last quarter and off from the 26.0% posted this quarter last year.

Income Taxes. The Bank recorded a provision for income taxes of $13.7 million for the first quarter of 2024. This represents an effective tax rate (“ETR”) of 29.0%, up from the ETR of 28.5% recorded in both comparable periods. The Bank’s ETR will fluctuate slightly from quarter to quarter within a fairly small range due to the timing of taxable events throughout the year.

Balance Sheet Summary

Total gross loans at March 31, 2024 were $5.33 billion, an increase of $52.4 million from the total of $5.27 billion as of December 31, 2023. Total deposits increased to $5.80 billion from the $5.71 billion as of December 31, 2023, an increase of $92.4 million. Total assets were $6.76 billion, an increase of $96.9 million over the total of $6.66 billion as of December 31, 2023.

Asset Quality

As of March 31, 2024, nonaccrual loans declined to $18.3 million, down from the $28.7 million as of December 31, 2023. The decrease was primarily due to the sale of notes of a certain borrower relationship for which the Bank received principal at par. OREO and repossessed assets totaled $16.7 million as of March 31, 2024, no change from December 31, 2023. Criticized loans increased slightly from $83.0 million as of December 31, 2023 to $86.6 million as of March 31, 2024. Total net charge-offs (recoveries) were $3.4 million for the first quarter of 2024 as compared to net recoveries of ($6,000) last quarter and compared to $43,000 for the first quarter last year. Management is acutely aware that commercial real estate is under some pressure given the rise in interest rates over the past year and the work from home dynamic that has impacted office property values. However in reviewing the portfolio, this weakness has yet to appear. We will be vigilant going forward.

Allowance for Credit Losses

The provision for credit losses for the first quarter of 2024 was $4.4 million compared to $3.5 million last quarter and compared to $500,000 in the same quarter last year. The aforementioned charge-offs recorded during the quarter as well as loan growth were the primary drivers of the provision for the quarter. The Bank’s allowance coverage ratio remains unchanged at 1.49% of total loans.

Capitalization

As of March 31, 2024, the Bank’s leverage ratio was 10.80%, the common equity tier 1 capital ratio was 11.50% and the total capital ratio stood at 15.08%. As of December 31, 2023, the Bank’s leverage ratio was 10.85%, the common equity tier 1 ratio was 11.57% and the total capital ratio was 15.18%.

Conference Call and Webcast

A conference call with simultaneous webcast to discuss Preferred Bank’s first quarter 2024 financial results will be held tomorrow, April 23, 2024 at 2:00 p.m. Eastern / 11:00 a.m. Pacific. Interested participants and investors may access the conference call by dialing 844-826-3037 (domestic) or 412-317-5182 (international) and referencing “Preferred Bank.” There will also be a live webcast of the call available at the Investor Relations section of Preferred Bank's website at www.preferredbank.com.

Preferred Bank's Chairman and CEO Li Yu, President and Chief Operating Officer Wellington Chen, Chief Financial Officer Edward J. Czajka, Chief Credit Officer Nick Pi and Deputy Chief Operating Officer Johnny Hsu will discuss Preferred Bank's financial results, business highlights and outlook. After the live webcast, a replay will be available at the Investor Relations section of Preferred Bank's website. A replay of the call will also be available at 877-344-7529 (domestic) or 412-317-0088 (international) through May 7, 2024; the passcode is 9065569.

About Preferred Bank

Preferred Bank is one of the larger independent commercial banks headquartered in California. 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 Bank conducts its banking business from its main office in Los Angeles, California, and through twelve full-service branch banking offices in California (Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine (2), Diamond Bar, Pico Rivera, Tarzana and San Francisco (2)), one branch in Flushing, New York and a branch office in the Houston, Texas suburb of Sugar Land. 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. Although originally founded as a Chinese-American Bank, Preferred Bank now derives most of its customers from the diversified mainstream market but does continue to benefit from the significant migration to California of ethnic Chinese from China and other areas of East Asia.

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 2023 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 www.preferredbank.com.

AT THE COMPANY:

AT FINANCIAL PROFILES:

Edward J. Czajka

Jeffrey Haas

Executive Vice President

General Information

Chief Financial Officer

(310) 622-8240

(213) 891-1188

[email-masked]

Financial Tables to Follow

PREFERRED BANK

Condensed Consolidated Statements of Operations

(unaudited)

(in thousands, except for net income per share and shares)

For the Quarter Ended

March 31,

December 31,

March 31,

2024

2023

2023

Interest income:

Loans, including fees

$

109,980

$

107,709

$

95,881

Investment securities

16,257

16,973

12,979

Fed funds sold

283

282

224

Total interest income

126,520

124,964

109,084

Interest expense:

Interest-bearing demand

22,290

21,716

17,038

Savings

75

72

39

Time certificates

34,330

32,455

16,593

FHLB borrowings

-

-

374

Subordinated debt

1,325

1,325

1,325

Total interest expense

58,020

55,568

35,369

Net interest income

68,500

69,396

73,715

Provision for credit losses

4,400

3,500

500

Net interest income after provision for

credit losses

64,100

65,896

73,215

Noninterest income:

Fees & service charges on deposit accounts

845

857

694

Letters of credit fee income

1,503

1,486

1,324

BOLI income

105

105

101

Net loss on called and sale of investment securities

-

(929

)

(4,117

)

Net gain on sale of loans

103

205

340

Other income

509

382

592

Total noninterest income

3,065

2,106

(1,066

)

Noninterest expense:

Salary and employee benefits

13,900

12,058

13,728

Net occupancy expense

1,711

1,536

1,474

Business development and promotion expense

266

239

105

Professional services

1,457

1,355

1,149

Office supplies and equipment expense

473

391

404

Loss on sale of OREO, valuation allowance and related expense

135

294

72

Other

2,086

2,000

1,968

Total noninterest expense

20,028

17,873

18,900

Income before provision for income taxes

47,137

50,129

53,249

Income tax expense

13,671

14,290

15,176

Net income

$

33,466

$

35,839

$

38,073

Income per share available to common shareholders

Basic

$

2.48

$

2.63

$

2.64

Diluted

$

2.44

$

2.60

$

2.61

Weighted-average common shares outstanding

Basic

13,508,878

13,617,225

14,430,606

Diluted

13,736,986

13,804,315

14,602,149

Cash dividends per common share

$

0.70

$

0.70

$

0.55

PREFERRED BANK

Condensed Consolidated Statements of Financial Condition

(unaudited)

(in thousands)

March 31,

December 31,

2024

2023

(Unaudited)

(Audited)

Assets

Cash and due from banks

$

916,600

$

890,852

Fed funds sold

20,000

20,000

Cash and cash equivalents

936,600

910,852

Securities held-to-maturity, at amortized cost

20,904

21,171

Securities available-for-sale, at fair value

333,411

313,842

Loans

5,325,854

5,273,498

Less allowance for credit losses

(79,311

)

(78,355

)

Less amortized deferred loan fees, net

(10,460

)

(11,079

)

Loans, net

5,236,083

5,184,064

Loans held for sale, at lower of cost or fair value

605

360

Other real estate owned and repossessed assets

16,716

16,716

Customers' liability on acceptances

-

315

Bank furniture and fixtures, net

9,962

9,694

Bank-owned life insurance

10,702

10,632

Accrued interest receivable

35,592

33,892

Investment in affordable housing partnerships

62,854

65,276

Federal Home Loan Bank stock, at cost

15,000

15,000

Deferred tax assets

49,389

48,991

Income tax receivable

-

2,391

Operating lease right-of-use assets

23,068

22,050

Other assets

5,327

4,030

Total assets

$

6,756,213

$

6,659,276

Liabilities and Shareholders' Equity

Deposits:

Noninterest bearing demand deposits

$

709,767

$

786,995

Interest bearing deposits:

2,159,948

2,075,156

Savings

29,261

29,167

Time certificates of $250,000 or more

1,349,927

1,317,862

Other time certificates

1,552,805

1,500,162

Total deposits

5,801,708

5,709,342

Acceptances outstanding

-

315

Subordinated debt issuance, net

148,292

148,232

Commitments to fund investment in affordable housing partnerships

29,647

30,824

Operating lease liabilities

20,215

19,766

Accrued interest payable

15,718

16,124

Other liabilities

41,075

39,568

Total liabilities

6,056,655

5,964,171

Shareholders' equity

699,558

695,105

Total liabilities and shareholders' equity

$

6,756,213

$

6,659,276

Book value per common share

$

52.23

$

50.54

Number of common shares outstanding

13,392,737

13,753,246

PREFERRED BANK

Selected Consolidated Financial Information

(unaudited)

(in thousands, except for ratios)

For the Quarter Ended

March 31,

December 31,

September 30,

June 30,

March 31,

2024

2023

2023

2023

2023

Unaudited historical quarterly operations data:

Interest income

$

126,520

$

124,964

$

125,529

$

118,411

$

109,084

Interest expense

58,020

55,568

52,575

45,102

35,369

Interest income before provision for credit losses

68,500

69,396

72,954

73,309

73,715

Provision for credit losses

4,400

3,500

3,500

2,500

500

Noninterest income

3,065

2,106

2,972

3,101

(1,066

)

Noninterest expense

20,028

17,873

19,009

20,852

18,900

Income tax expense

13,671

14,290

15,225

15,122

15,176

Net income

$

33,466

$

35,839

$

38,192

$

37,936

$

38,073

Earnings per share

Basic

$

2.48

$

2.63

$

2.74

$

2.63

$

2.64

Diluted

$

2.44

$

2.60

$

2.71

$

2.61

$

2.61

Ratios for the period:

Return on average assets

2.00

%

2.15

%

2.25

%

2.32

%

2.41

%

Return on beginning equity

19.36

%

21.21

%

22.66

%

23.18

%

24.49

%

Net interest margin (Fully-taxable equivalent)

4.19

%

4.24

%

4.39

%

4.58

%

4.77

%

Noninterest expense to average assets

1.20

%

1.07

%

1.12

%

1.28

%

1.20

%

Efficiency ratio

27.99

%

25.00

%

25.04

%

27.29

%

26.02

%

Net charge-offs (recoveries) to average loans (annualized)

0.26

%

0.00

%

0.01

%

0.00

%

0.00

%

Ratios as of period end:

Tier 1 leverage capital ratio

10.80

%

10.85

%

10.46

%

10.61

%

10.63

%

Common equity tier 1 risk-based capital ratio

11.50

%

11.57

%

11.63

%

11.51

%

11.30

%

Tier 1 risk-based capital ratio

11.50

%

11.57

%

11.63

%

11.51

%

11.30

%

Total risk-based capital ratio

15.08

%

15.18

%

15.32

%

15.14

%

14.91

%

Allowances for credit losses to loans at end of period

1.49

%

1.49

%

1.46

%

1.40

%

1.36

%

Allowance for credit losses to non-performing loans

4.33x

2.73x

3.86x

13.86x

254.56x

Average balances:

Total securities

$

348,961

$

349,863

$

368,968

$

397,905

$

442,852

Total loans

5,263,562

5,126,918

5,086,241

5,044,004

5,012,862

Total earning assets

6,585,853

6,499,469

6,597,557

6,432,950

6,276,630

Total assets

6,718,018

6,627,349

6,719,859

6,558,651

6,400,849

Total time certificate of deposits

2,852,860

2,767,385

2,680,854

2,617,872

2,209,370

Total interest bearing deposits

5,004,834

4,906,947

4,800,227

4,549,519

4,451,299

Total deposits

5,761,488

5,689,713

5,654,350

5,481,457

5,479,945

Total interest bearing liabilities

5,153,089

5,055,143

5,069,014

4,847,596

4,630,982

Total equity

704,996

683,141

678,020

677,306

650,963

PREFERRED BANK

Selected Consolidated Financial Information

(unaudited)

(in thousands, except for ratios)

As of

March 31,

December 31,

September 30,

June 30,

March 31,

2024

2023

2023

2023

2023

Unaudited quarterly statement of financial position data:

Assets:

Cash and cash equivalents

$

936,600

$

910,852

$

1,021,108

$

1,049,745

$

885,691

Securities held-to-maturity, at amortized cost

20,904

21,171

21,474

21,818

22,155

Securities available-for-sale, at fair value

333,411

313,842

335,608

352,548

367,492

Loans:

Real estate – Mortgage:

Real estate—Residential

$

724,101

$

688,058

$

663,021

$

631,795

$

612,907

Real estate—Commercial

2,777,608

2,760,761

2,688,148

2,744,074

2,813,681

Total Real Estate – Mortgage

3,501,709

3,448,819

3,351,169

3,375,879

3,426,588

Real estate – Construction:

R/E Construction — Residential

236,596

246,201

226,482

186,239

175,286

R/E Construction — Commercial

213,727

179,775

164,666

153,418

142,319

Total real estate construction loans

450,323

425,976

391,148

339,657

317,605

Commercial and industrial

1,368,353

1,393,830

1,377,675

1,388,865

1,299,325

SBA

3,914

3,469

2,424

4,427

7,306

Trade finance

1,176

1,041

5,541

9,348

6,885

Consumer and others

379

363

285

345

19

Gross loans

5,325,854

5,273,498

5,128,242

5,118,511

5,057,728

Allowance for credit losses on loans

(79,311

)

(78,355

)

(74,849

)

(71,429

)

(68,929

)

Net deferred loan fees

(10,460

)

(11,079

)

(10,240

)

(10,464

)

(10,286

)

Net loans, excluding loans held for sale

$

5,236,083

$

5,184,064

$

5,043,153

$

5,036,618

$

4,978,513

Loans held for sale

$

605

$

360

$

-

$

176

$

-

Net loans

$

5,236,688

$

5,184,424

$

5,043,153

$

5,036,794

$

4,978,513

Other real estate owned and repossessed assets

$

16,716

$

16,716

$

16,716

$

16,728

$

18,628

Investment in affordable housing partnerships

62,854

65,276

54,679

56,844

59,009

Federal Home Loan Bank stock, at cost

15,000

15,000

15,000

15,000

15,000

Other assets

134,040

131,995

124,793

118,465

115,049

Total assets

$

6,756,213

$

6,659,276

$

6,632,530

$

6,667,942

$

6,461,537

Liabilities:

Deposits:

Demand

$

709,767

$

786,995

$

838,300

$

870,282

$

1,050,992

Interest bearing demand

2,159,948

2,075,156

2,091,384

2,005,298

1,751,439

Savings

29,261

29,167

30,427

32,089

33,861

Time certificates of $250,000 or more

1,349,927

1,317,862

1,283,461

1,244,128

1,329,720

Other time certificates

1,552,805

1,500,162

1,439,699

1,437,194

1,241,754

Total deposits

$

5,801,708

$

5,709,342

$

5,683,271

$

5,588,991

$

5,407,766

Acceptances outstanding

$

-

$

315

$

103

$

448

$

107

Advance from Federal Home Loan Bank

-

-

-

150,000

150,000

Subordinated debt issuance, net

148,292

148,232

148,173

148,114

148,055

Commitments to fund investment in affordable housing partnerships

29,647

30,824

20,824

20,930

26,709

Other liabilities

77,008

75,458

109,651

90,692

72,359

Total liabilities

$

6,056,655

$

5,964,171

$

5,962,022

$

5,999,175

$

5,804,996

Equity:

Net common stock, no par value

$

115,915

$

134,534

$

143,584

$

167,404

$

181,208

Retained earnings

616,417

592,325

566,027

535,373

505,207

Accumulated other comprehensive income

(32,774

)

(31,754

)

(39,103

)

(34,010

)

(29,874

)

Total shareholders' equity

$

699,558

$

695,105

$

670,508

$

668,767

$

656,541

Total liabilities and shareholders' equity

$

6,756,213

$

6,659,276

$

6,632,530

$

6,667,942

$

6,461,537

PREFERRED BANK

Quarter-to-Date Average Balances, Yields and Rates

(Unaudited)

Three months ended March 31,

Three months ended December 31,

Three months ended March 31,

2024

2023

2023

Interest

Average

Interest

Average

Interest

Average

Average

Income or

Yield/

Average

Income or

Yield/

Average

Income or

Yield/

Balance

Expense

Rate

Balance

Expense

Rate

Balance

Expense

Rate

ASSETS

(Dollars in thousands)

Interest earning assets:

Loans(1,2)

$

5,265,940

$

109,980

8.40

%

$

5,127,935

$

107,709

8.33

%

$

5,013,740

$

95,881

7.76

%

Investment securities(3)

348,961

3,430

3.95

%

349,863

3,335

3.78

%

442,852

3,994

3.66

%

Federal funds sold

20,390

283

5.58

%

20,028

282

5.58

%

20,222

224

4.50

%

Other earning assets

950,562

12,928

5.47

%

1,001,643

13,739

5.44

%

799,816

9,087

4.61

%

Total interest earning assets

6,585,853

126,621

7.73

%

6,499,469

125,065

7.63

%

6,276,630

109,186

7.05

%

Deferred loan fees, net

(10,694

)

(10,421

)

(9,937

)

Allowance for credit losses on loans

(78,349

)

(74,965

)

(68,466

)

Noninterest earning assets:

Cash and due from banks

11,244

12,376

11,527

Bank furniture and fixtures

10,084

9,243

8,977

Right of use assets

22,003

20,338

21,867

Other assets

177,877

171,309

160,251

Total assets

$

6,718,018

$

6,627,349

$

6,400,849

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest bearing liabilities:

Deposits:

Interest bearing demand and savings

$

2,151,974

$

22,365

4.18

%

$

2,139,562

$

21,788

4.04

%

$

2,241,929

$

17,077

3.09

%

TCD $250K or more

1,341,298

16,501

4.95

%

1,294,531

15,600

4.78

%

1,266,072

10,743

3.44

%

Other time certificates

1,511,562

17,829

4.74

%

1,472,854

16,855

4.54

%

943,298

5,850

2.52

%

Total interest bearing deposits

5,004,834

56,695

4.56

%

4,906,947

54,243

4.39

%

4,451,299

33,670

3.07

%

Short-term borrowings

-

-

0.00

%

2

0

6.08

%

-

-

0.00

%

Advance from Federal home loan bank

-

-

0.00

%

-

-

0.00

%

31,667

374

4.78

%

Subordinated debt, net

148,255

1,325

3.59

%

148,194

1,325

3.55

%

148,016

1,325

3.63

%

Total interest bearing liabilities

5,153,089

58,020

4.53

%

5,055,143

55,568

4.36

%

4,630,982

35,369

3.10

%

Noninterest bearing liabilities:

Demand deposits

756,654

782,766

1,028,646

Lease Liability

19,500

18,179

20,993

Other liabilities

83,779

88,120

69,265

Total liabilities

6,013,022

5,944,208

5,749,886

Shareholders’ equity

704,996

683,141

650,963

Total liabilities and shareholders’ equity

$

6,718,018

$

6,627,349

$

6,400,849

Net interest income

$

68,601

$

69,497

$

73,817

Net interest spread

3.20

%

3.27

%

3.96

%

Net interest margin

4.19

%

4.24

%

4.77

%

Cost of Deposits:

Noninterest bearing demand deposits

$

756,654

$

782,766

$

1,028,646

Interest bearing deposits

5,004,834

56,695

4.56

%

4,906,947

54,243

4.39

%

4,451,299

33,670

3.07

%

Total Deposits

$

5,761,488

$

56,695

3.96

%

$

5,689,713

$

54,243

3.78

%

$

5,479,945

$

33,670

2.49

%

(1)

Includes non-accrual loans and loans held for sale

(2)

Net loan fee income of $1.1 million, $1.0 million and $1.2 million for the quarter ended March 31, 2024, December 31, 2023 and March 31, 2023, respectively, are included in the yield computations

(3)

Yields on securities have been adjusted to a tax-equivalent basis

Preferred Bank

Loan and Credit Quality Information

Allowance For Credit Losses History

Quarter Ended

Year Ended

March 31, 2024

December 31, 2023

(Dollars in 000's)

Allowance For Credit Losses

Balance at Beginning of Period

$

78,355

$

68,472

Charge-Offs

Commercial & Industrial

3,445

124

Mini-perm Real Estate

-

-

Total Charge-Offs

3,445

124

Recoveries

Commercial & Industrial

1

7

Mini-perm Real Estate

-

-

Total Recoveries

1

7

Net Charge-Offs (recoveries)

3,444

117

Provision for Credit Losses:

4,400

10,000

Balance at End of Period

$

79,311

$

78,355

Average Loans Held for Investment

$

5,263,562

$

5,067,870

Loans Held for Investment at End of Period

$

5,325,854

$

5,273,498

Net Charge-Offs (recoveries) to Average Loans

0.26

%

0.00

%

Allowances for Credit Losses to Loans at End of Period

1.49

%

1.49

%

You will be linking to another website not owned or operated by Preferred Bank.
Preferred Bank is not responsible for the availability or content of this website and does not represent
either the linked website or you, should you enter into a transaction. The inclusion of any hyperlink
does not imply any endorsement, investigation, verification or monitoring by Preferred Bank of any
information in any hyperlinked site. We encourage you to review their privacy and security policies
which may differ from Preferred Bank.

If you "Proceed", the link will open in a new window.

Cancel
Proceed (Opens in a new Window)