Preferred Bank Completes Initial Public Offering

Company Release - 2/17/2005

LOS ANGELES, Feb. 17 /PRNewswire-FirstCall/ -- Preferred Bank (Nasdaq: PFBC) today announced the successful completion of its initial public offering of 2,438,000 shares of its common stock at $38.00 per share in a firm commitment underwritten offering. The number of shares sold includes 318,000 shares sold pursuant to the underwriters' exercise of their over-allotment option. Of the 2,438,000 shares sold, Preferred Bank sold 985,622 shares and 1,452,378 shares were sold by certain selling shareholders. Sandler O'Neill & Partners, L.P. was the sole book-runner and lead manager and Keefe, Bruyette & Woods, Inc. and RBC Capital Markets Corporation were the co-managers.

The offer and sale of Preferred Bank's common stock has been authorized by a permit issued by the California Commissioner of Financial Institutions. This permit is permissive only and does not constitute a recommendation or endorsement of Preferred Bank's common stock. This announcement shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state in which such offer, solicitation or sale would be unlawful, prior to registration or qualification under the securities laws of such state.

Copies of the final prospectus relating to this offering, may be obtained from Sandler O'Neill & Partners, L.P., 919 Third Avenue, 6th Floor, New York, NY 10022, Attention: Syndicate Department.

About Preferred Bank

Preferred Bank conducts its banking business from its main office in Los Angeles, California and through its full-service branch banking offices in Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine, Diamond Bar and Valencia.

SOURCE  Preferred Bank
                                 02/17/2005
/CONTACT:  Chris Chan, Chief Financial Officer of Preferred Bank,
+1-213-891-1188; or Lasse Glassen, General Information, Financial Relations
Board, +1-310-854-8313, lglassen@financialrelationsboard.com, for Preferred
Bank/
    /Web site:  http://www.preferredbank.com /
    (PFBC)

CO:  Preferred Bank
ST:  California
IN:  FIN
SU:  OFR

02/17/2005 18:11 EST http://www.prnewswire.com