LOS ANGELES, Jan. 26, 2012 (GLOBE NEWSWIRE) -- Preferred Bank(Nasdaq:PFBC), an independent commercial bank focusing on the Chinese-American and diversified Southern California mainstream market, today reported results for the quarter and year ended December 31, 2011. Preferred Bank ("the Bank") reported net income of $3.8 million or $0.29 per diluted share for the fourth quarter of 2011 compared to a net loss of $11.3 million or $0.87 per diluted share for the fourth quarter of 2010 and compared to net income of $6.0 million or $0.46 per diluted share for the third quarter of 2011. For the year ended December 31, 2011, the Bank posted net income of $12.2 million or $0.93 per diluted share compared to a net loss of $42.4 million or $6.21 per diluted share. (The net loss per share for 2010 includes the accretion of the beneficial conversion feature attributable to the conversion of preferred shares to common shares. This reduced net income to common shareholders for that period by $25.6 million or $3.20 per share) All share and per share information has been adjusted to reflect the one-for-five reverse stock split which was effected on June 17, 2011. Included in net income for the fourth quarter is a $ 1.4 million partial reversal of the Bank's valuation allowance on its deferred tax asset ("DTA").
-
Highlights from the fourth quarter of 2011 include:
-
Continued reduction in nonperforming assets (NPA's) as they now total $81.0 million or 6.2% of total assets
-
The Bank has no loans that are 30-89 days past due
-
Reversal of $1.4 million of valuation allowance on DTA
-
Results for the quarter include a $2.4 million provision for loan loss and $660,000 in valuation allowance charges on OREO
-
Total loans increased by $48.7 million or 5.4% in the fourth quarter
-
Total deposits increased by $43.8 million or 4.1% in the fourth quarter
Li Yu, Chairman, President and CEO commented, "I am pleased to report that after a difficult three years, the Bank has turned around. Preferred Bank earned $12.2 Million or $0.93 per diluted share for the year 2011. More importantly, we have recorded four continuous quarters of profitability.
"We have made much progress in growing our business during the later part of the year. For the fourth quarter, gross loans increased $48.7 million with most of that in commercial and industrial and in trade finance loans. Deposits also increased $43.8 million with most of that growth coming in core deposits. Although C&I loans generally yield less than CRE, our net interest margin is in line with our expectations. In addition, C & I relationships typically come with much higher deposit balances which serve to offset the reduced yields.
"Our effort in resolving nonperforming assets was slowed down by the holiday season and the lingering Euro debt crisis also affected the mood of would-be real estate investors. We do expect however that resolution activity will pick up this spring.
"Looking ahead, we believe our NPA's will continue to decrease to a relatively insignificant level in the latter part of 2012. Meanwhile, we will make further advancements in loans and deposits, continue to improve our efficiency and most importantly, improve our profitability in 2012. Looking back at our accomplishments in 2011, we approach 2012 with a great deal more confidence."
Operating Results
Net Interest Income and Net Interest Margin. Net interest income before provision for loan and lease losses increased to $11.3 million from the $8.6 million recorded in the fourth quarter of 2010 and an increase from $11.2 million for the third quarter of 2011. The Bank's taxable equivalent net interest margin was 3.69% for the fourth quarter of 2011, a 96 basis point increase over the 2.73% achieved in the fourth quarter of 2010 and a 5 basis point decrease from the 3.74% recorded in the third quarter of 2011. Interest income in the third quarter of 2011 included $457,000 of interest recoveries, excluding these recoveries, the net interest margin would have been 3.59% in the third quarter resulting in a sequential quarter increase in the net interest margin of 10 basis points.
Noninterest Income. For the fourth quarter of 2011, noninterest income was $822,000 compared with $(97,000) for the same quarter last year and compared to $588,000 for the third quarter of 2011. The fourth quarter of 2010 included a loss on sale of investment securities of $726,000. Service charges on deposits remained relatively flat from fourth quarter 2010 levels while trade finance income decreased by $26,000 for the fourth quarter of 2011 compared to the same period in 2010. Other income was $241,000 for the fourth quarter of 2011 compared to $16,000 for the same period last year and $18,000 in the third quarter of 2011. This increase over both comparable periods was primarily due to a $145,000 OREO forfeited non-refundable deposit and a $71,000 gain on the call of one of the Bank's securities.
Noninterest Expense.Total noninterest expense was $7.4 million for the fourth quarter of 2011, compared to $13.3 million for the same period last year and $8.2 million for the third quarter of 2011. Salaries and benefits expense increased by $286,000 over the fourth quarter of 2010 and increased by $128,000 compared to the third quarter of 2011. The increases are primarily due to an increase in staffing levels as the Bank bolsters its business development teams. Occupancy expense decreased to $739,000 from the $809,000 recorded in the same period in 2010 and from the $784,000 recorded in the third quarter of 2011. The decrease is partially due to the expiration of a lease on a previously-closed branch facility. Professional services expense was $661,000 for the fourth quarter of 2011 compared to $786,000 for the fourth quarter of 2010 and the $645,000 posted in the third quarter of 2011. The variance compared to last year was due primarily to a decrease in legal costs associated with OREO and nonperforming loans as those assets continue to decrease. OREO-related expenses totaled $1.2 million for the fourth quarter of 2011 (consisting of $659,000 in valuation charges and $567,000 in OREO operating expenses) and this represented a decrease of $3.4 million compared to the same quarter last year and a decrease from the $1.6 million recorded in the third quarter of 2011. Other expenses were $1.4 million in the fourth quarter of 2011, a decrease of $2.5 million from the same period in 2010 and a decrease of $651,000 from the third quarter of 2011. The decrease was due to the fact that we had incurred losses on nonperforming note sales during the two comparable periods.
Income Taxes
During the quarter, the Bank reversed $1.4 million of its valuation allowance on its DTA compared to a valuation allowance release of $4.5 million in the third quarter of 2011. This reversal was the result of an analysis performed on the Bank's current year earnings, future earnings prospects and to evaluate whether the Bank will be able to realize its deferred tax asset in the future. This process requires a 'more likely than not' scenario analysis to determine whether the Bank can utilize its deferred tax asset. The Bank will perform this analysis on a quarterly basis in future quarters and eventually expects to reverse a significant portion of the remaining valuation allowance on the DTA.
Balance Sheet Summary
Total gross loans and leases (including loans held for sale) at December 31, 2011 were $953.6 million, up from $915.4 million as of December 31, 2010 and up sharply from the $904.9 million as of September 30, 2011. Comparing balances as of December 31, 2011 to December 31, 2010: Residential real estate loans decreased from $139.5 million to $120.0 million; total land loans decreased from $44.7 million to $39.2million; commercial real estate loans increased from $347.5 million to $416.0 million; for-sale housing construction loans decreased from $87.6 million to $41.0 million; other construction loans decreased from $33.2 million to $31.0 million and total commercial loans increased from $260.4 million to $302.5 million.
Total deposits as of December 31, 2011 were $1.12 billion, an increase of $36.7 million from the $1.08 billion at December 31, 2010. As of December 31, 2011 compared to December 31, 2010; noninterest-bearing demand deposits increased by $18.0 million or 8.1%, interest-bearing demand and savings deposits increased by $99.1 million or 63.2% and time deposits decreased by $80.4 million or 11.4%. Total borrowings were unchanged. Total assets were $1.309 billion, a $52.9 million or 4.2% increase from the total of $1.256 billion as of December 31, 2010. The Bank's loan-to-deposit ratio as of December 31, 2011 was 85.3% compared to 84.7% as of December 31, 2010.
Asset Quality
As of December 31, 2011 total nonaccrual loans decreased to $43.5 million (excluding loans held for sale) compared to $99.3 million as of December 31, 2010 and total loans 90 days past due and still accruing were $0 compared to $7,000 as of December 31, 2010. Total net charge-offs for the fourth quarter of 2011 were $2.7 million compared to net charge-offs of $3.9 million for the third quarter of 2011. Based on a detailed analysis of all impaired and classified loans, as well as an analysis of other qualitative factors, the Bank recorded a provision for loan losses of $2.4 million for the fourth quarter of 2011 compared to $1.5 million in the third quarter of 2011 and $7.3 million in the same period last year. The allowance for loan loss at December 31, 2011 was $23.7 million or 2.50% of total loans compared to $32.9 million or 3.60% of total loans at December 31, 2010.
|
NPA Migration |
|
Non-Performing Assets Migration – Q4 2011 |
| |
|
|
Non Accrual Loans |
OREO |
| Balance, September 30, 2011 |
$ 47,256 |
$ 38,853 |
| Additions |
3,720 |
-- |
| Transfer to OREO |
-- |
-- |
| Loans Cured |
-- |
-- |
| Sales/Payoffs/Trf to HFS |
(6,377) |
(616) |
| Charge-off |
(1,143) |
(660) |
| Balance, December 31, 2011 |
$ 43,456 |
$ 37,577 |
The table above excludes loans held for sale and includes TDR's that are on nonaccrual status. Performing TDR's totaled $16.0 million as of December 31, 2011. The $4.0 million in loans held for sale consist of two non accrual loans.
Loans Past Due 30-89 Days
Loans 30-89 days past due at December 31, 2011 were $0 compared to $5.5 million at December 31, 2010.
Real Estate Owned
Total OREO decreased to $37.6 million compared to $52.7 million as of December 31, 2010. During the fourth quarter of 2011, the Bank sold one OREO property with a book value of $616,000 at book value.
|
|
|
Asset Quality Table – December 31, 2011 |
| |
| ($ in thousands) | 30-89 Days | Nonaccrual | OREO |
| | # | $ | # | $ | # | $ |
|
Land-Residential |
-- |
$ -- |
1 |
$ 580 |
10 |
$ 23,565 |
|
Land Commercial |
-- |
-- |
1 |
182 |
3 |
8,316 |
|
Construction: |
|
|
|
|
|
|
|
Residential |
-- |
-- |
1 |
5,140 |
-- |
-- |
|
Commercial |
-- |
-- |
2 |
15,870 |
-- |
-- |
|
RE-Housing for sale |
-- |
-- |
2 |
1,314 |
1 |
5,461 |
|
CRE-Commercial |
-- |
-- |
4 |
11,742 |
1 |
235 |
|
C&I/Trade Finance |
-- |
-- |
9 |
8,628 |
-- |
-- |
|
Totals |
-- |
$ -- |
20 |
$ 43,456 |
15 |
$ 37,577 |
|
|
|
Asset Quality Table – September 30, 2011 |
| |
| ($ in thousands) | 30-89 Days | Nonaccrual | OREO |
| | # | $ | # | $ | # | $ |
|
Land-Residential |
-- |
$ -- |
1 |
$ 580 |
10 |
$ 23,898 |
|
Land Commercial |
-- |
-- |
1 |
182 |
3 |
8,613 |
|
Construction: |
|
|
|
|
|
|
|
Residential |
-- |
-- |
1 |
4,571 |
-- |
-- |
|
Commercial |
-- |
-- |
2 |
15,521 |
-- |
-- |
|
RE-Housing for sale |
-- |
-- |
2 |
1,314 |
1 |
5,461 |
|
CRE-Commercial |
-- |
-- |
4 |
17,446 |
2 |
881 |
|
C&I/Trade Finance |
1 |
337 |
9 |
7,642 |
-- |
-- |
|
Totals |
1 |
$ 337 |
20 |
$ 47,256 |
16 |
$ 38,853 |
Capitalization
As of December 31, 2011, the Bank's tier 1 leverage ratio was 12.51% and total risk-based capital ratio was 15.78%. This compares to 11.16% and 15.02% as of December 31, 2010, respectively. Pursuant to the Consent Order entered into on March 22, 2010, the Bank is required to maintain the following capital ratios:
Ratio |
Preferred Bank at 12/31/11 |
Consent Order
Requirement |
|
Tier 1 Leverage Ratio |
12.51% |
10.0% |
|
Tangible Common Equity Ratio |
12.07% |
10.0% |
|
Total Risk-Based Capital Ratio |
15.78% |
12.0% |
Conference Call and Webcast
A conference call with simultaneous webcast to discuss Preferred Bank's fourth quarter 2011 financial results will be held today, January 26, at 5:00 p.m. Eastern / 2:00 p.m. Pacific. Interested participants and investors may access the conference call by dialing 877-941-1465 (domestic) or 480-629-9723 (international). The passcode for the call is 4505999. 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. Web participants are encouraged to go to the website at least 15 minutes prior to the start of the call to register, download and install any necessary audio software.
Preferred Bank's Chairman and CEO Li Yu, Chief Financial Officer Edward J. Czajka, Chief Credit Officer Louie Couto and Chief Operating Officer Wellington Chen will be present to discuss Preferred Bank's financial results, business highlights and outlook. After the live webcast, a replay will remain available in the Investor Relations section of Preferred Bank's website. A replay of the call will also be available at 800-406-7325 (domestic) or 303-590-3030 (international) through February 2, 2012; the passcode is 4505999.
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 nine full-service branch banking offices in Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine, Diamond Bar, Anaheim and Pico Rivera, California. 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. Preferred Bank continues to benefit from the significant migration to Southern California of ethnic Chinese from China and other areas of East Asia. While its business is not solely dependent on the Chinese-American market, it represents an important element of the bank's operating strategy, especially for its branch network and deposit products and services. Preferred Bank believes it is well positioned to compete effectively with the smaller Chinese-American community banks, the larger commercial banks and other major banks operating in Southern California by offering a high degree of personal service and responsiveness, experienced multi-lingual staff and substantial lending limits.
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 2010 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.
|
|
|
|
|
| PREFERRED BANK |
| Condensed Consolidated Statements of Operations |
| (unaudited) |
| (in thousands, except for net income (loss) income per share and shares) |
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
| December 31, | December 31, | September 30, |
|
|
2011 |
2010 |
2011 |
|
Interest income: |
|
|
|
|
Loans, including fees |
$ 11,997 |
$ 9,957 |
$ 12,009 |
|
Investment securities |
1,760 |
1,795 |
1,718 |
|
Total interest income |
13,757 |
11,752 |
13,727 |
|
|
|
|
|
|
Interest expense: |
|
|
|
|
Interest-bearing demand |
422 |
152 |
329 |
|
Savings |
20 |
42 |
27 |
|
Time certificates of $100,000 or more |
1,303 |
1,081 |
1,249 |
|
Other time certificates |
505 |
1,667 |
714 |
|
FHLB borrowings |
-- |
61 |
-- |
|
Senior debt |
188 |
189 |
188 |
|
Total interest expense |
2,438 |
3,191 |
2,507 |
|
|
|
|
|
|
Net interest income |
11,319 |
8,561 |
11,220 |
|
|
|
|
|
|
Provision for loan losses |
2,400 |
7,250 |
1,500 |
|
|
|
|
|
|
Net interest income after provision for loan losses |
8,919 |
1,311 |
9,720 |
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
Fees & service charges on deposit accounts |
440 |
447 |
439 |
|
Trade finance income |
57 |
83 |
51 |
|
BOLI income |
84 |
83 |
83 |
|
Net gain (loss) on sale of investment securities |
-- |
(726) |
(3) |
|
Other income |
241 |
16 |
18 |
|
Total noninterest income (loss) |
822 |
(97) |
588 |
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
Salary and employee benefits |
2,919 |
2,633 |
2,791 |
|
Net occupancy expense |
739 |
809 |
784 |
|
Business development and promotion expense |
123 |
41 |
61 |
|
Professional services |
661 |
786 |
645 |
|
Office supplies and equipment expense |
297 |
279 |
245 |
|
Total other-than-temporary impairment losses |
-- |
188 |
-- |
|
Portion of loss recognized in other comprehensive income |
-- |
-- |
-- |
|
Other real estate owned related expense |
1,227 |
4,593 |
1,629 |
|
Other |
1,407 |
3,927 |
2,058 |
|
Total noninterest expense |
7,373 |
13,256 |
8,213 |
|
|
|
|
|
|
Income (loss) before provision for income taxes |
2,368 |
(12,041) |
2,095 |
|
|
|
|
|
|
Income tax (benefit) expense |
(1,399) |
(704) |
(3,932) |
|
Net income (loss) |
$ 3,767 |
$ (11,337) |
$ 6,027 |
|
|
|
|
|
|
Accretion of beneficial conversion feature |
-- |
-- |
-- |
|
Net income (loss) available to common shareholders |
$ 3,767 |
$ (11,337) |
$ 6,027 |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per share available to common shareholders (1): |
|
|
|
|
Basic |
$ 0.29 |
$ (0.87) |
$ 0.46 |
|
Diluted |
$ 0.29 |
$ (0.87) |
$ 0.46 |
|
|
|
|
|
|
Weighted-average common shares outstanding (1): |
|
|
|
|
Basic |
13,000,092 |
12,980,405 |
13,015,551 |
|
Diluted |
13,000,092 |
12,980,405 |
13,015,551 |
|
|
|
|
|
| (1) Adjusted to reflect June 2011, one-for-five reverse stock split. |
|
|
|
|
|
| PREFERRED BANK |
| Condensed Consolidated Statements of Operations |
| (unaudited) |
| (in thousands, except for net (loss) income per share and shares) |
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve Months Ended |
|
|
| December 31, | December 31, |
Change |
|
|
2011 |
2010 |
% |
|
Interest income: |
|
|
|
|
Loans, including fees |
$ 46,464 |
$ 46,130 |
0.7% |
|
Investment securities |
7,326 |
5,957 |
23.0% |
|
Fed funds sold |
-- |
1 |
-100.0% |
|
Total interest income |
53,790 |
52,088 |
3.3% |
|
|
|
|
|
|
Interest expense: |
|
|
|
|
Interest-bearing demand |
1,295 |
655 |
97.7% |
|
Savings |
92 |
208 |
-55.9% |
|
Time certificates of $100,000 or more |
4,956 |
5,494 |
-9.8% |
|
Other time certificates |
3,207 |
7,037 |
-54.4% |
|
FHLB borrowings |
-- |
677 |
-100.0% |
|
Senior debt |
753 |
750 |
0.4% |
|
Total interest expense |
10,303 |
14,822 |
-30.5% |
|
|
|
|
|
|
Net interest income |
43,487 |
37,266 |
16.7% |
|
|
|
|
|
|
Provision for credit losses |
5,700 |
16,550 |
-65.6% |
|
|
|
|
|
|
Net interest income after provision for loan losses |
37,787 |
20,716 |
82.4% |
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
Fees & service charges on deposit accounts |
1,742 |
1,865 |
-6.6% |
|
Trade finance income |
241 |
382 |
-36.9% |
|
BOLI income |
333 |
329 |
1.4% |
|
Net gain (loss) on sale of investment securities |
81 |
(61) |
-232.3% |
|
Other income |
393 |
292 |
34.7% |
|
Total noninterest income |
2,790 |
2,807 |
-0.6% |
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
Salary and employee benefits |
11,155 |
9,591 |
16.3% |
|
Net occupancy expense |
3,060 |
3,271 |
-6.5% |
|
Business development and promotion expense |
335 |
246 |
35.9% |
|
Professional services |
2,267 |
3,504 |
-35.3% |
|
Office supplies and equipment expense |
1,061 |
1,122 |
-5.4% |
|
Total other-than-temporary impairment losses |
32 |
843 |
-96.2% |
|
Portion of loss recognized in other comprehensive income |
-- |
(431) |
-100.0% |
|
Other real estate owned related expense |
8,303 |
12,482 |
-33.5% |
|
Other |
7,180 |
10,409 |
-31.0% |
|
Total noninterest expense |
33,393 |
41,037 |
-18.6% |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before provision for income taxes |
7,185 |
(17,514) |
-141.0% |
|
|
|
|
|
|
Income tax (benefit) expense |
(5,049) |
(704) |
617.6% |
|
|
|
|
|
|
Net income (loss) |
$ 12,234 |
$ (16,810) |
-172.8% |
|
|
|
|
|
|
Accretion of beneficial conversion feature |
-- |
(25,600) |
-100.0% |
|
Net income (loss) available to common shareholders |
$ 12,234 |
$ (42,410) |
-128.8% |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per share available to common shareholders (1): |
|
|
|
|
Basic |
$ 0.93 |
$ (6.21) |
-114.9% |
|
Diluted |
$ 0.93 |
$ (6.21) |
-114.9% |
|
|
|
|
|
|
Weighted-average common shares outstanding (1): |
|
|
|
|
Basic |
12,995,525 |
6,829,734 |
90.3% |
|
Diluted |
12,995,525 |
6,829,734 |
90.3% |
|
|
|
|
|
| (1) Adjusted to reflect June 2011, one-for-five reverse stock split. |
|
|
|
|
|
|
|
| PREFERRED BANK |
| Condensed Consolidated Statements of Financial Condition |
| (unaudited) |
| (in thousands) |
|
|
|
|
|
| December 31, | December 31, |
|
|
2011 |
2010 |
| Assets |
|
|
|
|
|
|
|
Cash and due from banks |
$ 142,466 |
$ 108,233 |
|
Fed funds sold |
-- |
-- |
|
Cash and cash equivalents |
142,466 |
108,233 |
|
|
|
|
|
Securities held to maturity, at amortized cost |
3,021 |
-- |
|
Securities available-for-sale, at fair value |
166,083 |
183,269 |
|
Loans and leases |
949,631 |
912,854 |
|
Less allowance for loan and lease losses |
(23,718) |
(32,898) |
|
Less net deferred loan fees |
(1,037) |
58 |
|
Net loans and leases |
924,876 |
880,014 |
|
|
|
|
|
Loans held for sale, at lower of cost or fair value |
3,996 |
2,556 |
|
|
|
|
|
Other real estate owned |
37,577 |
52,663 |
|
Customers' liability on acceptances |
427 |
92 |
|
Bank furniture and fixtures, net |
4,789 |
5,418 |
|
Bank-owned life insurance |
7,808 |
7,556 |
|
Accrued interest receivable |
4,851 |
5,375 |
| Federal Home Loan Bank stock |
4,164 |
4,440 |
|
Deferred tax assets |
6,979 |
-- |
|
Income tax receivable |
-- |
3,630 |
|
Other asset |
2,760 |
2,620 |
|
Total assets |
$ 1,309,797 |
$ 1,255,866 |
|
|
|
|
|
|
|
|
| Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
Liabilities: |
|
|
|
Deposits: |
|
|
|
Demand |
$ 239,987 |
$ 221,967 |
|
Interest-bearing demand |
233,349 |
125,517 |
|
Savings |
22,385 |
31,140 |
|
Time certificates of $250,000 or more |
199,462 |
185,001 |
|
Other time certificates |
422,770 |
517,640 |
|
Total deposits |
$ 1,117,953 |
$ 1,081,265 |
|
Acceptances outstanding |
427 |
92 |
|
Senior debt issuance |
25,996 |
25,996 |
|
Accrued interest payable |
1,292 |
1,716 |
|
Other liabilities |
6,081 |
5,463 |
|
Total liabilities |
1,151,749 |
1,114,532 |
|
|
|
|
|
Commitments and contingencies |
|
|
|
Shareholders' equity: |
|
|
|
Preferred stock. Authorized 25,000,000 shares; no issued and outstanding shares at December 31, 2011 and December 31, 2010 |
— |
— |
|
Common stock, no par value. Authorized 20,000,000 shares; issued and outstanding 13,220,955 and 13,188,305 shares at December 31, 2011 and December 31, 2010, respectively |
162,884 |
162,884 |
|
Treasury stock |
(19,115) |
(19,115) |
|
Additional paid-in-capital |
23,455 |
22,539 |
|
Accumulated deficit |
(6,391) |
(18,767) |
|
Accumulated other comprehensive loss: |
|
|
|
Non-credit portion of loss recognized $367 at December 31, 2011 and December 31, 2010 |
(481) |
(743) |
|
Unrealized loss on securities available-for-sale, net of tax of $1,553 and $1,579 at December 31, 2011 and December 31, 2010 , respectively. |
(2,304) |
(5,464) |
|
Total shareholders' equity |
158,048 |
141,334 |
|
Total liabilities and shareholders' equity |
$ 1,309,797 |
$ 1,255,866 |
|
|
|
|
|
|
|
| PREFERRED BANK |
| Selected Consolidated Financial Information |
| (unaudited) |
| (in thousands, except for ratios) |
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
| December 31, | September 30, | June 30, | December 31, |
|
|
|
2011 |
2011 |
2011 |
2010 |
|
|
For the period: |
|
|
|
|
|
|
Return on average assets |
1.17% |
1.91% |
0.57% |
-3.41% |
|
|
Return on average equity |
8.97% |
15.19% |
4.58% |
-27.84% |
|
|
Net interest margin (Fully-taxable equivalent) |
3.69% |
3.74% |
3.57% |
2.73% |
|
|
Noninterest expense to average assets |
2.28% |
2.61% |
2.46% |
3.99% |
|
|
Efficiency ratio |
60.73% |
69.56% |
68.11% |
156.62% |
|
|
Net charge-offs (recoveries) to average loans (annualized) |
1.18% |
1.70% |
1.91% |
3.19% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end: |
|
|
|
|
|
|
Tier 1 leverage capital ratio |
12.51% |
12.49% |
12.28% |
11.16% |
|
|
Tier 1 risk-based capital ratio |
14.52% |
14.66% |
14.26% |
13.75% |
|
|
Total risk-based capital ratio |
15.78% |
15.92% |
15.53% |
15.02% |
|
|
Allowances for credit losses to loans and leases at end of period ** |
2.50% |
2.67% |
3.02% |
3.60% |
|
|
Allowance for credit losses to non-performing loans and leases |
49.98% |
46.93% |
31.15% |
32.29% |
|
|
|
|
|
|
|
|
|
Average balances: |
|
|
|
|
|
|
Total loans and leases* |
$ 919,944 |
$ 897,961 |
$ 886,548 |
$ 933,574 |
|
|
Earning assets |
$ 1,234,885 |
$ 1,207,239 |
$ 1,179,759 |
$ 1,266,167 |
|
|
Total assets |
$ 1,280,350 |
$ 1,250,442 |
$ 1,218,616 |
$ 1,317,342 |
|
|
Total deposits |
$ 1,081,254 |
$ 1,060,612 |
$ 1,032,540 |
$ 1,115,313 |
|
|
|
|
|
|
|
|
|
Period end: |
|
|
|
|
|
|
Loans and Leases: |
|
|
|
|
|
|
Real estate - Single and multi-family residential |
$ 120,005 |
$ 124,656 |
$ 113,241 |
$ 139,483 |
|
|
Real estate - Land for housing |
23,339 |
25,022 |
28,313 |
22,517 |
|
|
Real estate - Land for income properties |
15,830 |
20,541 |
20,563 |
22,147 |
|
|
Real estate - Commercial |
415,998 |
389,788 |
392,656 |
347,494 |
|
|
Real estate - For sale housing construction |
40,977 |
48,154 |
55,619 |
87,611 |
|
|
Real estate - Other construction |
30,965 |
35,548 |
36,351 |
33,214 |
|
|
Commercial and industrial |
252,161 |
212,976 |
184,490 |
209,520 |
|
|
Trade finance and other |
50,356 |
44,245 |
43,070 |
50,868 |
|
|
Gross loans |
949,631 |
900,930 |
874,303 |
912,854 |
|
|
Allowance for loan and lease losses |
(23,718) |
(24,054) |
(26,409) |
(32,898) |
|
|
Net deferred loan fees |
(1,037) |
(849) |
(498) |
58 |
|
|
Loans excluding loans held for sale |
924,876 |
876,027 |
847,396 |
880,014 |
|
|
Loans held for sale |
3,996 |
3,996 |
20,503 |
2,556 |
|
|
Total loans, net |
$ 928,872 |
$ 880,023 |
$ 867,899 |
$ 882,570 |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Noninterest-bearing demand |
$ 239,987 |
$ 231,998 |
$ 244,013 |
$ 221,967 |
|
|
Interest-bearing demand and savings |
255,734 |
235,063 |
174,099 |
156,657 |
|
|
Total core deposits |
495,721 |
467,061 |
418,112 |
378,624 |
|
|
Time deposits |
622,232 |
607,140 |
631,619 |
702,641 |
|
|
Total deposits |
$ 1,117,953 |
$ 1,074,201 |
$ 1,049,731 |
$ 1,081,265 |
|
|
|
|
|
|
|
|
| * Loans held for sale are included |
|
|
|
|
|
| ** Loans held for sale are excluded |
|
|
|
|
|
|
|
|
|
| Preferred Bank |
| Loan and Credit Quality Information |
|
|
|
|
| Allowance For Credit Losses & Loss History |
|
|
|
|
Year Ended |
Year Ended |
|
| December 31, 2011 | December 31, 2010 |
|
|
(Dollars in 000's) |
|
Allowance For Credit Losses |
|
|
|
Balance at Beginning of Period |
$ 32,898 |
$ 42,810 |
|
Charge-Offs |
|
|
|
Commercial & Industrial |
5,126 |
6,672 |
| Mini-perm Real Estate |
7,102 |
5,224 |
|
Construction - Residential |
1,665 |
8,221 |
|
Construction - Commercial |
664 |
4,379 |
|
Land - Residential |
82 |
1,530 |
|
Land - Commercial |
1,453 |
1,052 |
|
Others |
5 |
17 |
|
Total Charge-Offs |
16,097 |
27,095 |
|
|
|
|
|
Recoveries |
|
|
|
Commercial & Industrial |
940 |
289 |
| Mini-perm Real Estate |
43 |
28 |
|
Construction - Residential |
7 |
189 |
|
Construction - Commercial |
166 |
127 |
|
Land - Residential |
61 |
-- |
|
Land - Commercial |
-- |
-- |
|
Total Recoveries |
1,217 |
633 |
|
|
|
|
|
Net Loan Charge-Offs |
14,880 |
26,462 |
|
Provision for Credit Losses |
5,700 |
16,550 |
|
Balance at End of Period |
$ 23,718 |
$ 32,898 |
|
Average Loans and Leases* |
$ 919,944 |
$ 977,188 |
|
Loans and Leases at end of Period** |
$ 949,631 |
$ 912,854 |
|
Net Charge-Offs to Average Loans and Leases |
1.18% |
2.71% |
|
Allowances for credit losses to loans and leases at end of period ** |
2.50% |
3.60% |
|
|
|
|
| * Loans held for sale are included |
|
|
| ** Loans held for sale are excluded |
|
|
CONTACT: AT THE COMPANY:
Edward J. Czajka
Executive Vice President
Chief Financial Officer
(213) 891-1188
AT FINANCIAL PROFILES:
Kristen McNally
General Information
(310) 663-8007
kmcnally@finprofiles.com
Source: Preferred Bank