Preferred Bank Reports Quarterly Results
Preferred Bank (NASDAQ: PFBC) reported Q2 2024 results with net income of $33.6 million or $2.48 per diluted share, slightly up from the previous quarter but down $4.3 million year-over-year. Key highlights include:
- Return on average assets: 1.97%
- Return on beginning equity: 19.44%
- Net interest margin: 3.96%
- Total loans increased by $103 million (1.9%)
- Total deposits increased by $77 million (1.3%)
- Efficiency ratio: 28.3%
Non-performing loans increased to $40.6 million, up from $18.3 million in Q1 2024. The bank charged off $9.0 million in loans and recorded a provision expense of $2.5 million. The allowance for credit losses stands at 1.34% of total loans.
Preferred Bank (NASDAQ: PFBC) ha riportato i risultati del secondo trimestre 2024 con un reddito netto di 33,6 milioni di dollari o 2,48 dollari per azione diluita, leggermente superiore rispetto al trimestre precedente ma in calo di 4,3 milioni di dollari rispetto all'anno precedente. I punti salienti includono:
- Rendimento sugli attivi medi: 1,97%
- Rendimento sul capitale iniziale: 19,44%
- Margine di interesse netto: 3,96%
- Prestiti totali aumentati di 103 milioni di dollari (1,9%)
- Depositi totali aumentati di 77 milioni di dollari (1,3%)
- Rapporto di efficienza: 28,3%
I prestiti non performanti sono aumentati a 40,6 milioni di dollari, rispetto ai 18,3 milioni di dollari nel primo trimestre 2024. La banca ha cancellato 9,0 milioni di dollari in prestiti e ha registrato un costo di accantonamento di 2,5 milioni di dollari. L’accantonamento per perdite su crediti è pari all'1,34% dell'importo totale dei prestiti.
Preferred Bank (NASDAQ: PFBC) informó los resultados del segundo trimestre de 2024 con ingresos netos de 33.6 millones de dólares o 2.48 dólares por acción diluida, ligeramente superior al trimestre anterior pero 4.3 millones de dólares menos en comparación con el año anterior. Los aspectos más destacados incluyen:
- Retorno sobre activos promedio: 1.97%
- Retorno sobre el capital inicial: 19.44%
- Margen de interés neto: 3.96%
- Los préstamos totales aumentaron en 103 millones de dólares (1.9%)
- Los depósitos totales aumentaron en 77 millones de dólares (1.3%)
- Ratio de eficiencia: 28.3%
Los préstamos no rentables aumentaron a 40.6 millones de dólares, en comparación con los 18.3 millones de dólares del primer trimestre de 2024. El banco canceló 9.0 millones de dólares en préstamos y registró un gasto por provisiones de 2.5 millones de dólares. La reserva para pérdidas de crédito se sitúa en el 1.34% del total de préstamos.
Preferred Bank (NASDAQ: PFBC)는 2024년 2분기 실적을 발표했으며, 순이익이 3,360만 달러 또는 희석 주당 2.48달러로, 지난 분기보다 약간 상승했지만 지난해 같은 기간보다 430만 달러 하락했습니다. 주요 하이라이트는 다음과 같습니다:
- 평균 자산 수익률: 1.97%
- 기초 자본 수익률: 19.44%
- 순이자 마진: 3.96%
- 총 대출 1억 3천만 달러(1.9%) 증가
- 총 예금 7,700만 달러(1.3%) 증가
- 효율성 비율: 28.3%
부실채권은 4,060만 달러로 증가했으며, 이는 2024년 1분기의 1,830만 달러에서 증가한 수치입니다. 은행은 900만 달러의 대출을 충당금으로 상각하고 250만 달러의 충당금 비용을 기록했습니다. 신용 손실을 위한 충당금은 총 대출의 1.34%에 해당합니다.
Preferred Bank (NASDAQ: PFBC) a annoncé les résultats du deuxième trimestre 2024 avec un bénéfice net de 33,6 millions de dollars ou 2,48 dollars par action diluée, légèrement en hausse par rapport au trimestre précédent, mais en baisse de 4,3 millions de dollars par rapport à l'année précédente. Les points saillants incluent :
- Rendement sur les actifs moyens : 1,97%
- Rendement sur le capital initial : 19,44%
- Marges d'intérêt nettes : 3,96%
- Les prêts totaux ont augmenté de 103 millions de dollars (1,9%)
- Les dépôts totaux ont augmenté de 77 millions de dollars (1,3%)
- Ratio d'efficacité : 28,3%
Les prêts non performants ont augmenté à 40,6 millions de dollars, contre 18,3 millions de dollars au premier trimestre 2024. La banque a radié 9,0 millions de dollars de prêts et a enregistré une charge de provision de 2,5 millions de dollars. La provision pour pertes de crédit s'élève à 1,34% du total des prêts.
Preferred Bank (NASDAQ: PFBC) hat die Ergebnisse des 2. Quartals 2024 veröffentlicht mit Nettoeinkommen von 33,6 Millionen US-Dollar oder 2,48 US-Dollar pro verwässerter Aktie, was leicht über dem Vorquartal liegt, aber im Vergleich zum Vorjahr um 4,3 Millionen US-Dollar gesunken ist. Zu den wichtigsten Highlights gehören:
- Rendite auf durchschnittliche Vermögenswerte: 1,97%
- Rendite auf das Anfangskapital: 19,44%
- Nettozinsmarge: 3,96%
- Die Gesamtdarlehen stiegen um 103 Millionen US-Dollar (1,9%)
- Die Gesamteinlagen stiegen um 77 Millionen US-Dollar (1,3%)
- Effizienzquote: 28,3%
Die notleidenden Kredite stiegen auf 40,6 Millionen US-Dollar, gegenüber 18,3 Millionen US-Dollar im 1. Quartal 2024. Die Bank hat 9,0 Millionen US-Dollar an Krediten abgeschrieben und einen Aufwand für Rückstellungen von 2,5 Millionen US-Dollar verbucht. Die Rückstellung für Kreditverluste beträgt 1,34% der Gesamtdarlehen.
- Net income increased slightly from the previous quarter to $33.6 million
- Total loans grew by $103 million (1.9%) quarter-over-quarter
- Total deposits increased by $77 million (1.3%) quarter-over-quarter
- Efficiency ratio remained strong at 28.3%
- Tangible common equity ratio improved from 10.02% to 10.55% year-over-year
- Net income decreased by $4.3 million year-over-year
- Net interest margin declined to 3.96% from 4.58% year-over-year
- Non-performing loans increased to $40.6 million from $18.3 million in Q1 2024
- Net charge-offs increased to $9.0 million compared to $0 in Q2 2023
- Allowance for credit losses decreased to 1.34% of total loans from 1.49% in Q1 2024
Insights
Preferred Bank's Q2 2024 results reveal a mixed financial picture. While the bank reported a slight increase in net income quarter-over-quarter, it experienced a year-over-year decline of $4.3 million. This decrease can be attributed to lower net interest income due to rising deposit costs, a common challenge in the current interest rate environment.
Despite this, Preferred Bank maintains strong profitability metrics:
- Return on average assets:
1.97% - Return on beginning equity:
19.44% - Net interest margin (NIM):
3.96% - Efficiency ratio:
28.3%
These figures indicate that the bank continues to operate efficiently and generate solid returns for shareholders. However, the decline in NIM from
The bank's loan portfolio grew by
The bank's capital ratios remain strong, with a leverage ratio of
The significant increase in non-performing loans (NPLs) from
Key points to consider:
- An
$18 million hotel loan and two C&I loans totaling$13.5 million were added to the NPL list. - Criticized loans decreased from
$86.6 million to$73.7 million , which is a positive sign. - Net charge-offs increased to
$9.0 million , up from$3.4 million in the previous quarter. - The allowance for credit losses now stands at
1.34% of total loans, down from1.49% last quarter.
While management expresses confidence in the collateral and cash flow protection of these NPLs, the sharp increase warrants careful scrutiny. The decrease in the allowance coverage ratio, despite rising NPLs, could potentially leave the bank exposed if economic conditions worsen.
The
Preferred Bank's Q2 2024 results reflect the challenges faced by the banking industry in the current economic environment. The bank's performance should be viewed in the context of industry-wide trends:
- Net interest margin (NIM) compression: Preferred Bank's NIM declined to
3.96% , mirroring the industry-wide pressure on margins due to rising deposit costs and competitive lending environments. - Asset quality concerns: The increase in non-performing loans is not unique to Preferred Bank, as many banks are experiencing credit quality deterioration in certain sectors, particularly commercial real estate.
- Capital management: The bank's
$150 million stock buyback plan and improved tangible common equity (TCE) ratio demonstrate a focus on shareholder returns while maintaining strong capital levels.
Preferred Bank's efficiency ratio of
The bank's focus on reducing asset sensitivity is prudent, as it aims to mitigate the impact of potential interest rate cuts on earnings. This strategy, combined with the expectation of improved organic growth in a lower rate environment, positions the bank well for various economic scenarios.
Overall, while Preferred Bank faces challenges common to the industry, its strong profitability metrics, efficient operations and proactive balance sheet management suggest it is well-positioned to navigate the current banking landscape.
LOS ANGELES, July 25, 2024 (GLOBE NEWSWIRE) -- Preferred Bank (NASDAQ: PFBC), one of the larger independent California banks, today reported results for the quarter ended June 30, 2024. Preferred Bank (“the Bank”) reported net income of
Highlights for the Quarter:
- Return on average assets was
1.97% - Return on beginning equity of
19.44% - Net interest margin (NIM) was
3.96% - Total loans increased by
$103 million or1.9% for the quarter - Total deposits increased
$77 million or1.3% for the quarter - Efficiency ratio was
28.3%
Li Yu, Chairman and CEO, commented, “I am pleased to report Preferred Bank’s second quarter net income of
“This quarter, total non-performing loans (NPL’s) increased
“During the quarter, we have charged-off
“We continue to work on our balance sheet in order to reduce the asset sensitivity in the balance sheet. We are confident that with this work, when interest rates ease the impact on our earnings will be quite modest. Meanwhile, lower interest rates will typically give way to better organic growth which will positively impact earnings.
“The regulatory approval for our
Results of Operations
Net Interest Income and Net Interest Margin. Net interest income before provision for credit losses was
Noninterest Income. For the second quarter of 2024, noninterest income was
Noninterest Expense. Total noninterest expense was
Income Taxes. The Bank recorded a provision for income taxes of
Balance Sheet Summary
Total gross loans at June 30, 2024 were
Asset Quality
As of June 30, 2024, nonaccrual loans increased to
Loan Quality
| June 30, 2024 | March 31, 2024 | |||
| Criticized loans still accruing | $ | 33,101 | $ | 68,304 |
| Loans on nonaccrual status | 40,551 | 18,314 | ||
| Total Criticized Loans | $ | 73,652 | $ | 86,618 |
Non-performing loans (non-accrual status) includes the following:
- A hotel loan of
$18.0 million , in a very populated area of Los Angeles, with cash flow sufficient to service the debt and loan-to-value ratio (LTV) of51% . - Two commercial and industrial (C&I) loans totaling
$13.5 million . The estimated net exposure is fully reserved. - A
$6.1 million loan in San Francisco collateralized by a motel with LTV of71% . This note was sold in July at par, so that credit is already resolved. - Two real estate loans totaling
$1.8 million , which are now paying as agreed. These loans will be reinstated to performing status in the third quarter of 2024.
Allowance for Credit Losses
The provision for credit losses for the second quarter of 2024 was
Capitalization
As of June 30, 2024, the Bank’s leverage ratio was
Conference Call and Webcast
A conference call with simultaneous webcast to discuss Preferred Bank’s second quarter 2024 financial results will be held tomorrow, July 26, 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 August 9, 2024; the passcode is 7823115.
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. In addition, the Bank also operates a loan production office in Sunnyvale, 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. 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.
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 | ||||||||||||
| June 30, | March 31, | June 30, | ||||||||||
| 2024 | 2024 | 2023 | ||||||||||
| Interest income: | ||||||||||||
| Loans, including fees | $ | 109,451 | $ | 109,980 | $ | 102,220 | ||||||
| Investment securities | 17,552 | 16,257 | 15,919 | |||||||||
| Fed funds sold | 291 | 283 | 272 | |||||||||
| Total interest income | 127,294 | 126,520 | 118,411 | |||||||||
| Interest expense: | ||||||||||||
| Interest-bearing demand | 24,205 | 22,290 | 16,406 | |||||||||
| Savings | 79 | 75 | 47 | |||||||||
| Time certificates | 35,578 | 34,330 | 25,436 | |||||||||
| FHLB borrowings | - | - | 1,888 | |||||||||
| Subordinated debt | 1,325 | 1,325 | 1,325 | |||||||||
| Total interest expense | 61,187 | 58,020 | 45,102 | |||||||||
| Net interest income | 66,107 | 68,500 | 73,309 | |||||||||
| Provision for credit losses | 2,500 | 4,400 | 2,500 | |||||||||
| Net interest income after provision for | ||||||||||||
| credit losses | 63,607 | 64,100 | 70,809 | |||||||||
| Noninterest income: | ||||||||||||
| Fees & service charges on deposit accounts | 819 | 845 | 844 | |||||||||
| Letters of credit fee income | 1,749 | 1,503 | 1,576 | |||||||||
| BOLI income | 105 | 105 | 103 | |||||||||
| Net loss on called and sale of investment securities | - | - | - | |||||||||
| Net gain on sale of loans | 353 | 103 | 186 | |||||||||
| Other income | 378 | 509 | 392 | |||||||||
| Total noninterest income | 3,404 | 3,065 | 3,101 | |||||||||
| Noninterest expense: | ||||||||||||
| Salary and employee benefits | 12,944 | 13,900 | 12,520 | |||||||||
| Net occupancy expense | 1,716 | 1,711 | 1,476 | |||||||||
| Business development and promotion expense | 403 | 266 | 200 | |||||||||
| Professional services | 1,832 | 1,457 | 1,343 | |||||||||
| Office supplies and equipment expense | 477 | 473 | 398 | |||||||||
| Loss on sale of OREO, valuation allowance and related expense | 29 | 135 | 2,838 | |||||||||
| Other | 2,296 | 2,086 | 2,077 | |||||||||
| Total noninterest expense | 19,697 | 20,028 | 20,852 | |||||||||
| Income before provision for income taxes | 47,314 | 47,137 | 53,058 | |||||||||
| Income tax expense | 13,722 | 13,671 | 15,122 | |||||||||
| Net income | $ | 33,592 | $ | 33,466 | $ | 37,936 | ||||||
| Income per share available to common shareholders | ||||||||||||
| Basic | $ | 2.51 | $ | 2.48 | $ | 2.63 | ||||||
| Diluted | $ | 2.48 | $ | 2.44 | $ | 2.61 | ||||||
| Weighted-average common shares outstanding | ||||||||||||
| Basic | 13,362,522 | 13,508,878 | 14,419,959 | |||||||||
| Diluted | 13,548,400 | 13,736,986 | 14,560,693 | |||||||||
| Cash dividends per common share | $ | 0.70 | $ | 0.70 | $ | 0.55 | ||||||
| PREFERRED BANK | |||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||
| (unaudited) | |||||||||||
| (in thousands, except for net income per share and shares) | |||||||||||
| For the Six Months Ended | |||||||||||
| June 30, | June 30, | Change | |||||||||
| 2024 | 2023 | % | |||||||||
| Interest income: | |||||||||||
| Loans, including fees | $ | 219,431 | $ | 198,101 | 10.8 | % | |||||
| Investment securities | 33,809 | 28,898 | 17.0 | % | |||||||
| Fed funds sold | 574 | 496 | 15.8 | % | |||||||
| Total interest income | 253,814 | 227,495 | 11.6 | % | |||||||
| Interest expense: | |||||||||||
| Interest-bearing demand | 46,495 | 33,444 | 39.0 | % | |||||||
| Savings | 154 | 86 | 78.8 | % | |||||||
| Time certificates | 69,908 | 42,029 | 66.3 | % | |||||||
| FHLB borrowings | - | 2,262 | -100.0 | % | |||||||
| Subordinated debt | 2,650 | 2,650 | 0.0 | % | |||||||
| Total interest expense | 119,207 | 80,471 | 48.1 | % | |||||||
| Net interest income | 134,607 | 147,024 | -8.4 | % | |||||||
| Provision for credit losses | 6,900 | 3,000 | 130.0 | % | |||||||
| Net interest income after provision for credit losses | 127,707 | 144,024 | -11.3 | % | |||||||
| Noninterest income: | |||||||||||
| Fees & service charges on deposit accounts | 1,664 | 1,538 | 8.2 | % | |||||||
| Letters of credit fee income | 3,252 | 2,900 | 12.1 | % | |||||||
| BOLI income | 210 | 204 | 3.0 | % | |||||||
| Net loss on called and sale of investment securities | - | (4,117 | ) | -100.0 | % | ||||||
| Net gain on sale of loans | 456 | 526 | -13.3 | % | |||||||
| Other income | 887 | 984 | -9.9 | % | |||||||
| Total noninterest income | 6,469 | 2,035 | 217.8 | % | |||||||
| Noninterest expense: | |||||||||||
| Salary and employee benefits | 26,844 | 26,248 | 2.3 | % | |||||||
| Net occupancy expense | 3,427 | 2,950 | 16.2 | % | |||||||
| Business development and promotion expense | 669 | 305 | 119.3 | % | |||||||
| Professional services | 3,289 | 2,492 | 32.0 | % | |||||||
| Office supplies and equipment expense | 950 | 802 | 18.5 | % | |||||||
| Loss on sale of OREO, valuation allowance and related expense | 164 | 2,910 | -94.4 | % | |||||||
| Other | 4,382 | 4,045 | 8.3 | % | |||||||
| Total noninterest expense | 39,725 | 39,752 | -0.1 | % | |||||||
| Income before provision for income taxes | 94,451 | 106,307 | -11.2 | % | |||||||
| Income tax expense | 27,393 | 30,298 | -9.6 | % | |||||||
| Net income | $ | 67,058 | $ | 76,009 | -11.8 | % | |||||
| Income per share available to common shareholders | |||||||||||
| Basic | $ | 4.99 | $ | 5.27 | -5.3 | % | |||||
| Diluted | $ | 4.93 | $ | 5.21 | -5.5 | % | |||||
| Weighted-average common shares outstanding | |||||||||||
| Basic | 13,435,700 | 14,425,253 | -6.9 | % | |||||||
| Diluted | 13,608,783 | 14,581,458 | -6.7 | % | |||||||
| Dividends per share | $ | 1.40 | $ | 1.10 | 27.3 | % | |||||
| PREFERRED BANK | ||||||||
| Condensed Consolidated Statements of Financial Condition | ||||||||
| (unaudited) | ||||||||
| (in thousands) | ||||||||
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (Unaudited) | (Audited) | |||||||
| Assets | ||||||||
| Cash and due from banks | $ | 895,677 | $ | 890,852 | ||||
| Fed funds sold | 22,000 | 20,000 | ||||||
| Cash and cash equivalents | 917,677 | 910,852 | ||||||
| Securities held-to-maturity, at amortized cost | 20,605 | 21,171 | ||||||
| Securities available-for-sale, at fair value | 331,909 | 313,842 | ||||||
| Loans held for sale, at lower of cost or fair value | 955 | 360 | ||||||
| Loans | 5,428,600 | 5,273,498 | ||||||
| Less allowance for credit losses | (72,848 | ) | (78,355 | ) | ||||
| Less amortized deferred loan fees, net | (10,502 | ) | (11,079 | ) | ||||
| Loans, net | 5,345,250 | 5,184,064 | ||||||
| Other real estate owned and repossessed assets | 16,716 | 16,716 | ||||||
| Customers' liability on acceptances | - | 315 | ||||||
| Bank furniture and fixtures, net | 9,506 | 9,694 | ||||||
| Bank-owned life insurance | 10,772 | 10,632 | ||||||
| Accrued interest receivable | 36,618 | 33,892 | ||||||
| Investment in affordable housing partnerships | 60,432 | 65,276 | ||||||
| Federal Home Loan Bank stock, at cost | 15,000 | 15,000 | ||||||
| Deferred tax assets | 48,719 | 48,991 | ||||||
| Income tax receivable | 6,421 | 2,391 | ||||||
| Operating lease right-of-use assets | 22,564 | 22,050 | ||||||
| Other assets | 3,436 | 4,030 | ||||||
| Total assets | $ | 6,846,580 | $ | 6,659,276 | ||||
| Liabilities and Shareholders' Equity | ||||||||
| Deposits: | ||||||||
| Noninterest bearing demand deposits | $ | 675,767 | $ | 786,995 | ||||
| Interest bearing deposits: | 2,326,214 | 2,075,156 | ||||||
| Savings | 28,251 | 29,167 | ||||||
| Time certificates of | 1,406,149 | 1,317,862 | ||||||
| Other time certificates | 1,442,381 | 1,500,162 | ||||||
| Total deposits | 5,878,762 | 5,709,342 | ||||||
| Acceptances outstanding | - | 315 | ||||||
| Subordinated debt issuance, net | 148,351 | 148,232 | ||||||
| Commitments to fund investment in affordable housing partnerships | 27,946 | 30,824 | ||||||
| Operating lease liabilities | 19,149 | 19,766 | ||||||
| Accrued interest payable | 15,086 | 16,124 | ||||||
| Other liabilities | 34,158 | 39,568 | ||||||
| Total liabilities | 6,123,452 | 5,964,171 | ||||||
| Shareholders' equity | 723,128 | 695,105 | ||||||
| Total liabilities and shareholders' equity | $ | 6,846,580 | $ | 6,659,276 | ||||
| Book value per common share | $ | 54.23 | $ | 50.54 | ||||
| Number of common shares outstanding | 13,334,752 | 13,753,246 | ||||||
| PREFERRED BANK | ||||||||||||||||
| Selected Consolidated Financial Information | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| (in thousands, except for ratios) | ||||||||||||||||
| For the Quarter Ended | ||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||
| Unaudited historical quarterly operations data: | ||||||||||||||||
| Interest income | $ | 127,294 | $ | 126,520 | $ | 124,964 | $ | 125,529 | $ | 118,411 | ||||||
| Interest expense | 61,187 | 58,020 | 55,568 | 52,575 | 45,102 | |||||||||||
| Interest income before provision for credit losses | 66,107 | 68,500 | 69,396 | 72,954 | 73,309 | |||||||||||
| Provision for credit losses | 2,500 | 4,400 | 3,500 | 3,500 | 2,500 | |||||||||||
| Noninterest income | 3,404 | 3,065 | 2,106 | 2,972 | 3,101 | |||||||||||
| Noninterest expense | 19,697 | 20,028 | 17,873 | 19,009 | 20,852 | |||||||||||
| Income tax expense | 13,722 | 13,671 | 14,290 | 15,225 | 15,122 | |||||||||||
| Net income | $ | 33,592 | $ | 33,466 | $ | 35,839 | $ | 38,192 | $ | 37,936 | ||||||
| Earnings per share | ||||||||||||||||
| Basic | $ | 2.51 | $ | 2.48 | $ | 2.63 | $ | 2.74 | $ | 2.63 | ||||||
| Diluted | $ | 2.48 | $ | 2.44 | $ | 2.60 | $ | 2.71 | $ | 2.61 | ||||||
| Ratios for the period: | ||||||||||||||||
| Return on average assets | 1.97 | % | 2.00 | % | 2.15 | % | 2.25 | % | 2.32 | % | ||||||
| Return on beginning equity | 19.44 | % | 19.36 | % | 21.21 | % | 22.66 | % | 23.18 | % | ||||||
| Net interest margin (Fully-taxable equivalent) | 3.96 | % | 4.19 | % | 4.24 | % | 4.39 | % | 4.58 | % | ||||||
| Noninterest expense to average assets | 1.15 | % | 1.20 | % | 1.07 | % | 1.12 | % | 1.28 | % | ||||||
| Efficiency ratio | 28.34 | % | 27.99 | % | 25.00 | % | 25.04 | % | 27.29 | % | ||||||
| Net charge-offs (recoveries) to average loans (annualized) | 0.68 | % | 0.26 | % | -0.00 | % | 0.01 | % | -0.00 | % | ||||||
| Ratios as of period end: | ||||||||||||||||
| Tangible common equity ratio | 10.55 | % | 10.35 | % | 10.43 | % | 10.10 | % | 10.02 | % | ||||||
| Tier 1 leverage capital ratio | 10.89 | % | 10.80 | % | 10.85 | % | 10.46 | % | 10.61 | % | ||||||
| Common equity tier 1 risk-based capital ratio | 11.52 | % | 11.50 | % | 11.57 | % | 11.63 | % | 11.51 | % | ||||||
| Tier 1 risk-based capital ratio | 11.52 | % | 11.50 | % | 11.57 | % | 11.63 | % | 11.51 | % | ||||||
| Total risk-based capital ratio | 14.93 | % | 15.08 | % | 15.18 | % | 15.32 | % | 15.14 | % | ||||||
| Allowances for credit losses to loans at end of period | 1.34 | % | 1.49 | % | 1.49 | % | 1.46 | % | 1.40 | % | ||||||
| Allowance for credit losses to non-performing loans | 1.79x | 4.33x | 2.73x | 3.86x | 13.86x | |||||||||||
| Average balances: | ||||||||||||||||
| Total securities | $ | 353,357 | $ | 348,961 | $ | 349,863 | $ | 368,968 | $ | 397,905 | ||||||
| Total loans | 5,320,360 | 5,263,562 | 5,126,918 | 5,086,241 | 5,044,004 | |||||||||||
| Total earning assets | 6,728,498 | 6,585,853 | 6,499,469 | 6,597,557 | 6,432,950 | |||||||||||
| Total assets | 6,863,829 | 6,718,018 | 6,627,349 | 6,719,859 | 6,558,651 | |||||||||||
| Total time certificate of deposits | 2,884,259 | 2,852,860 | 2,767,385 | 2,680,854 | 2,617,872 | |||||||||||
| Total interest bearing deposits | 5,203,034 | 5,004,834 | 4,906,947 | 4,800,227 | 4,549,519 | |||||||||||
| Total deposits | 5,901,976 | 5,761,488 | 5,689,713 | 5,654,350 | 5,481,457 | |||||||||||
| Total interest bearing liabilities | 5,351,347 | 5,153,089 | 5,055,143 | 5,069,014 | 4,847,596 | |||||||||||
| Total equity | 715,190 | 704,996 | 683,141 | 678,020 | 677,306 | |||||||||||
| PREFERRED BANK | |||||||
| Selected Consolidated Financial Information | |||||||
| (unaudited) | |||||||
| (in thousands, except for ratios) | |||||||
| For the Six Months Ended | |||||||
| June 30, | June 30, | ||||||
| 2024 | 2023 | ||||||
| Interest income | $ | 253,814 | $ | 227,495 | |||
| Interest expense | 119,207 | 80,471 | |||||
| Interest income before provision for credit losses | 134,607 | 147,024 | |||||
| Provision for credit losses | 6,900 | 3,000 | |||||
| Noninterest income | 6,469 | 2,035 | |||||
| Noninterest expense | 39,725 | 39,752 | |||||
| Income tax expense | 27,393 | 30,298 | |||||
| Net income | $ | 67,058 | $ | 76,009 | |||
| Earnings per share | |||||||
| Basic | $ | 4.99 | $ | 5.27 | |||
| Diluted | $ | 4.93 | $ | 5.21 | |||
| Ratios for the period: | |||||||
| Return on average assets | 1.99 | % | 2.37 | % | |||
| Return on beginning equity | 19.40 | % | 24.31 | % | |||
| Net interest margin (Fully-taxable equivalent) | 4.07 | % | 4.67 | % | |||
| Noninterest expense to average assets | 1.18 | % | 1.24 | % | |||
| Efficiency ratio | 28.16 | % | 26.67 | % | |||
| Net charge-off (recoveries) to average loans | 0.47 | % | 0.00 | % | |||
| Average balances: | |||||||
| Total securities | $ | 351,159 | $ | 420,254 | |||
| Total loans | 5,291,961 | 5,028,520 | |||||
| Total earning assets | 6,657,176 | 6,355,222 | |||||
| Total assets | 6,790,924 | 6,480,186 | |||||
| Total time certificate of deposits | 2,868,560 | 2,414,750 | |||||
| Total interest bearing deposits | 5,103,935 | 4,501,301 | |||||
| Total deposits | 5,831,732 | 5,480,705 | |||||
| Total interest bearing liabilities | 5,252,219 | 4,740,508 | |||||
| Total equity | 710,093 | 664,207 | |||||
| PREFERRED BANK | ||||||||||||||||||||||
| Selected Consolidated Financial Information | ||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||
| (in thousands, except for ratios) | ||||||||||||||||||||||
| As of | ||||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||||
| Unaudited quarterly statement of financial position data: | ||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||
| Cash and cash equivalents | $ | 917,677 | $ | 936,600 | $ | 910,852 | $ | 1,021,108 | $ | 1,049,745 | ||||||||||||
| Securities held-to-maturity, at amortized cost | 20,605 | 20,904 | 21,171 | 21,474 | 21,818 | |||||||||||||||||
| Securities available-for-sale, at fair value | 331,909 | 333,411 | 313,842 | 335,608 | 352,548 | |||||||||||||||||
| Loans: | ||||||||||||||||||||||
| Real estate – Mortgage: | ||||||||||||||||||||||
| Real estate—Residential | $ | 732,251 | $ | 724,101 | $ | 688,058 | $ | 663,021 | $ | 631,795 | ||||||||||||
| Real estate—Commercial | 2,833,430 | 2,777,608 | 2,760,761 | 2,688,148 | 2,744,074 | |||||||||||||||||
| Total Real Estate – Mortgage | 3,565,681 | 3,501,709 | 3,448,819 | 3,351,169 | 3,375,869 | |||||||||||||||||
| Real estate – Construction: | ||||||||||||||||||||||
| R/E Construction — Residential | 238,062 | 236,596 | 246,201 | 226,482 | 186,239 | |||||||||||||||||
| R/E Construction — Commercial | 247,582 | 213,727 | 179,775 | 164,666 | 153,418 | |||||||||||||||||
| Total real estate construction loans | 485,644 | 450,323 | 425,976 | 391,148 | 339,657 | |||||||||||||||||
| Commercial and industrial | 1,371,694 | 1,369,529 | 1,394,871 | 1,383,216 | 1,398,213 | |||||||||||||||||
| SBA | 5,463 | 3,914 | 3,469 | 2,424 | 4,427 | |||||||||||||||||
| Consumer and others | 118 | 379 | 363 | 285 | 345 | |||||||||||||||||
| Gross loans | 5,428,600 | 5,325,854 | 5,273,498 | 5,128,242 | 5,118,511 | |||||||||||||||||
| Allowance for credit losses on loans | (72,848 | ) | (79,311 | ) | (78,355 | ) | (74,849 | ) | (71,429 | ) | ||||||||||||
| Net deferred loan fees | (10,502 | ) | (10,460 | ) | (11,079 | ) | (10,240 | ) | (10,464 | ) | ||||||||||||
| Net loans, excluding loans held for sale | $ | 5,345,250 | $ | 5,236,083 | $ | 5,184,064 | $ | 5,043,153 | $ | 5,036,618 | ||||||||||||
| Loans held for sale | $ | 955 | $ | 605 | $ | 360 | $ | - | $ | 176 | ||||||||||||
| Net loans | $ | 5,346,205 | $ | 5,236,688 | $ | 5,184,424 | $ | 5,043,153 | $ | 5,036,794 | ||||||||||||
| Other real estate owned and repossessed assets | $ | 16,716 | $ | 16,716 | $ | 16,716 | $ | 16,716 | $ | 16,728 | ||||||||||||
| Investment in affordable housing partnerships | 60,432 | 62,854 | 65,276 | 54,679 | 56,844 | |||||||||||||||||
| Federal Home Loan Bank stock, at cost | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | |||||||||||||||||
| Other assets | 138,036 | 134,040 | 131,995 | 124,793 | 118,465 | |||||||||||||||||
| Total assets | $ | 6,846,580 | $ | 6,756,213 | $ | 6,659,276 | $ | 6,632,530 | $ | 6,667,942 | ||||||||||||
| Liabilities: | ||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||
| Demand | $ | 675,767 | $ | 709,767 | $ | 786,995 | $ | 838,300 | $ | 870,282 | ||||||||||||
| Interest bearing demand | 2,326,214 | 2,159,948 | 2,075,156 | 2,091,384 | 2,005,298 | |||||||||||||||||
| Savings | 28,251 | 29,261 | 29,167 | 30,427 | 32,089 | |||||||||||||||||
| Time certificates of | 1,406,149 | 1,349,927 | 1,317,862 | 1,283,461 | 1,244,128 | |||||||||||||||||
| Other time certificates | 1,442,381 | 1,552,805 | 1,500,162 | 1,439,699 | 1,437,194 | |||||||||||||||||
| Total deposits | $ | 5,878,762 | $ | 5,801,708 | $ | 5,709,342 | $ | 5,683,271 | $ | 5,588,991 | ||||||||||||
| Acceptances outstanding | $ | - | $ | - | $ | 315 | $ | 103 | $ | 448 | ||||||||||||
| Advance from Federal Home Loan Bank | - | - | - | - | 150,000 | |||||||||||||||||
| Subordinated debt issuance, net | 148,351 | 148,292 | 148,232 | 148,173 | 148,114 | |||||||||||||||||
| Commitments to fund investment in affordable housing partnerships | 27,946 | 29,647 | 30,824 | 20,824 | 20,930 | |||||||||||||||||
| Other liabilities | 68,393 | 77,008 | 75,458 | 109,651 | 90,692 | |||||||||||||||||
| Total liabilities | $ | 6,123,452 | $ | 6,056,655 | $ | 5,964,171 | $ | 5,962,022 | $ | 5,999,175 | ||||||||||||
| Equity: | ||||||||||||||||||||||
| Net common stock, no par value | $ | 113,510 | $ | 115,915 | $ | 134,534 | $ | 143,584 | $ | 167,404 | ||||||||||||
| Retained earnings | 640,675 | 616,417 | 592,325 | 566,027 | 535,373 | |||||||||||||||||
| Accumulated other comprehensive income | (31,057 | ) | (32,774 | ) | (31,754 | ) | (39,103 | ) | (34,010 | ) | ||||||||||||
| Total shareholders' equity | $ | 723,128 | $ | 699,558 | $ | 695,105 | $ | 670,508 | $ | 668,767 | ||||||||||||
| Total liabilities and shareholders' equity | $ | 6,846,580 | $ | 6,756,213 | $ | 6,659,276 | $ | 6,632,530 | $ | 6,667,942 | ||||||||||||
| PREFERRED BANK | |||||||||||||||||||||||||
| Quarter-to-Date Average Balances, Yield and Rates | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| Three months ended June 30, | Three months ended March 31, | Three months ended June 30, | |||||||||||||||||||||||
| 2024 | 2024 | 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) | $ | 5,324,410 | $ | 109,451 | 8.27 | % | $ | 5,265,940 | $ | 109,980 | 8.40 | % | $ | 5,044,517 | $ | 102,220 | 8.13 | % | |||||||
| Investment securities (3) | 353,357 | 3,652 | 4.16 | % | 348,961 | 3,430 | 3.95 | % | 397,905 | 3,709 | 3.74 | % | |||||||||||||
| Federal funds sold | 20,866 | 291 | 5.61 | % | 20,390 | 283 | 5.58 | % | 20,000 | 272 | 5.45 | % | |||||||||||||
| Other earning assets | 1,029,865 | 13,999 | 5.47 | % | 950,562 | 12,928 | 5.47 | % | 970,528 | 12,311 | 5.09 | % | |||||||||||||
| Total interest earning assets | 6,728,498 | 127,393 | 7.61 | % | 6,585,853 | 126,621 | 7.73 | % | 6,432,950 | 118,512 | 7.39 | % | |||||||||||||
| Deferred loan fees, net | (10,459 | ) | (10,694 | ) | (10,417 | ) | |||||||||||||||||||
| Allowance for credit losses on loans | (79,119 | ) | (78,349 | ) | (68,956 | ) | |||||||||||||||||||
| Noninterest earning assets: | |||||||||||||||||||||||||
| Cash and due from banks | 10,626 | 11,244 | 12,712 | ||||||||||||||||||||||
| Bank furniture and fixtures | 9,787 | 10,084 | 9,005 | ||||||||||||||||||||||
| Right of use assets | 22,886 | 22,003 | 21,988 | ||||||||||||||||||||||
| Other assets | 181,610 | 177,877 | 161,369 | ||||||||||||||||||||||
| Total assets | $ | 6,863,829 | $ | 6,718,018 | $ | 6,558,651 | |||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||
| Interest bearing liabilities: | |||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||
| Interest bearing demand and savings | $ | 2,318,775 | $ | 24,284 | 4.21 | % | $ | 2,151,974 | $ | 22,365 | 4.18 | % | $ | 1,931,647 | $ | 16,453 | 3.42 | % | |||||||
| TCD | 1,379,116 | 17,295 | 5.04 | % | 1,341,298 | 16,501 | 4.95 | % | 1,259,305 | 12,772 | 4.07 | % | |||||||||||||
| Other time certificates | 1,505,143 | 18,283 | 4.89 | % | 1,511,562 | 17,829 | 4.74 | % | 1,358,567 | 12,664 | 3.74 | % | |||||||||||||
| Total interest bearing deposits | 5,203,034 | 59,862 | 4.63 | % | 5,004,834 | 56,695 | 4.56 | % | 4,549,519 | 41,889 | 3.69 | % | |||||||||||||
| Advance from Federal Home Loan Bank | - | - | 0.00 | % | - | - | 0.00 | % | 150,000 | 1,888 | 5.05 | % | |||||||||||||
| Subordinated debt, net | 148,313 | 1,325 | 3.59 | % | 148,255 | 1,325 | 3.59 | % | 148,077 | 1,325 | 3.59 | % | |||||||||||||
| Total interest bearing liabilities | 5,351,347 | 61,187 | 4.60 | % | 5,153,089 | 58,020 | 4.53 | % | 4,847,596 | 45,102 | 3.73 | % | |||||||||||||
| Noninterest bearing liabilities: | |||||||||||||||||||||||||
| Demand deposits | 698,942 | 756,654 | 931,938 | ||||||||||||||||||||||
| Lease liability | 19,828 | 19,500 | 20,708 | ||||||||||||||||||||||
| Other liabilities | 78,522 | 83,779 | 81,103 | ||||||||||||||||||||||
| Total liabilities | 6,148,639 | 6,013,022 | 5,881,345 | ||||||||||||||||||||||
| Shareholders’ equity | 715,190 | 704,996 | 677,306 | ||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 6,863,829 | $ | 6,718,018 | $ | 6,558,651 | |||||||||||||||||||
| Net interest income | $ | 66,206 | $ | 68,601 | $ | 73,410 | |||||||||||||||||||
| Net interest spread | 3.02 | % | 3.20 | % | 3.66 | % | |||||||||||||||||||
| Net interest margin | 3.96 | % | 4.19 | % | 4.58 | % | |||||||||||||||||||
| Cost of Deposits: | |||||||||||||||||||||||||
| Noninterest bearing demand deposits | $ | 698,942 | $ | 756,654 | $ | 931,938 | |||||||||||||||||||
| Interest bearing deposits | 5,203,034 | 59,862 | 4.63 | % | 5,004,834 | 56,695 | 4.56 | % | 4,549,519 | 41,889 | 3.69 | % | |||||||||||||
| Total Deposits | $ | 5,901,976 | $ | 59,862 | 4.08 | % | $ | 5,761,488 | $ | 56,695 | 3.96 | % | $ | 5,481,457 | $ | 41,889 | 3.07 | % | |||||||
| (1) | Includes non-accrual loans and loans held for sale | ||||||||||||||||||||||||
| (2) | Net loan fee income of | ||||||||||||||||||||||||
| (3) | Yields on securities have been adjusted to a tax-equivalent basis | ||||||||||||||||||||||||
| PREFERRED BANK | |||||||||||||||||
| Year-to-Date Average Balances, Yield and Rates | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Six Months ended June 30, | |||||||||||||||||
| 2024 | 2023 | ||||||||||||||||
| Interest | Average | Interest | Average | ||||||||||||||
| Average | Income or | Yield/ | Average | Income or | Yield/ | ||||||||||||
| Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||
| ASSETS | (Dollars in thousands) | ||||||||||||||||
| Interest earning assets: | |||||||||||||||||
| Loans (1,2) | $ | 5,295,175 | $ | 219,431 | 8.33 | % | $ | 5,029,214 | $ | 198,101 | 7.94 | % | |||||
| Investment securities (3) | 351,159 | 7,082 | 4.06 | % | 420,254 | 7,703 | 3.70 | % | |||||||||
| Federal funds sold | 20,628 | 574 | 5.60 | % | 20,110 | 496 | 4.97 | % | |||||||||
| Other earning assets | 990,214 | 26,927 | 5.47 | % | 885,644 | 21,398 | 4.87 | % | |||||||||
| Total interest earning assets | 6,657,176 | 254,014 | 7.67 | % | 6,355,222 | 227,698 | 7.23 | % | |||||||||
| Deferred loan fees, net | (10,576 | ) | (10,178 | ) | |||||||||||||
| Allowance for credit losses on loans | (78,734 | ) | (68,713 | ) | |||||||||||||
| Noninterest earning assets: | |||||||||||||||||
| Cash and due from banks | 10,729 | 11,920 | |||||||||||||||
| Bank furniture and fixtures | 9,936 | 8,991 | |||||||||||||||
| Right of use assets | 22,444 | 21,928 | |||||||||||||||
| Other assets | 179,949 | 161,016 | |||||||||||||||
| Total assets | $ | 6,790,924 | $ | 6,480,186 | |||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
| Interest bearing liabilities: | |||||||||||||||||
| Deposits: | |||||||||||||||||
| Interest bearing demand/ savings | $ | 2,235,375 | $ | 46,649 | 4.20 | % | $ | 2,086,551 | $ | 33,530 | 3.24 | % | |||||
| TCD | 1,360,207 | 33,796 | 5.00 | % | 1,262,670 | 23,515 | 3.76 | % | |||||||||
| Other time certificates | 1,508,353 | 36,112 | 4.81 | % | 1,152,080 | 18,514 | 3.24 | % | |||||||||
| Total interest \bearing deposits | 5,103,935 | 116,557 | 4.59 | % | 4,501,301 | 75,559 | 3.39 | % | |||||||||
| Short-term borrowings | - | - | 0.00 | % | - | - | 0.00 | % | |||||||||
| Advance from Federal Home Loan Bank | - | - | 0.00 | % | 91,160 | 2,262 | 5.00 | % | |||||||||
| Subordinated debt, net | 148,284 | 2,650 | 3.59 | % | 148,047 | 2,650 | 3.61 | % | |||||||||
| Total interest bearing liabilities | 5,252,219 | 119,207 | 4.56 | % | 4,740,508 | 80,471 | 3.42 | % | |||||||||
| Noninterest bearing liabilities: | |||||||||||||||||
| Demand deposits | 727,797 | 979,404 | |||||||||||||||
| Lease liability | 19,664 | 20,850 | |||||||||||||||
| Other liabilities | 81,151 | 75,217 | |||||||||||||||
| Total liabilities | 6,080,831 | 5,815,979 | |||||||||||||||
| Shareholders’ equity | 710,093 | 664,207 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 6,790,924 | $ | 6,480,186 | |||||||||||||
| Net interest income | $ | 134,807 | $ | 147,227 | |||||||||||||
| Net interest spread | 3.11 | % | 3.80 | % | |||||||||||||
| Net interest margin | 4.07 | % | 4.67 | % | |||||||||||||
| Cost of Deposits: | |||||||||||||||||
| Noninterest bearing demand deposits | $ | 727,797 | $ | 979,404 | |||||||||||||
| Interest bearing deposits | 5,103,935 | 116,557 | 4.59 | % | 4,501,301 | 75,559 | 3.39 | % | |||||||||
| Total Deposits | $ | 5,831,732 | $ | 116,557 | 4.02 | % | $ | 5,480,705 | $ | 75,559 | 2.78 | % | |||||
| (1) | Includes non-accrual loans and loans held for sale | ||||||||||||||||
| (2) | Net loan fee income of | ||||||||||||||||
| (3) | Yields on securities have been adjusted to a tax-equivalent basis | ||||||||||||||||
| PREFERRED BANK | |||||||||||
| Loan and Credit Quality Information | |||||||||||
| Allowance For Credit Losses History | |||||||||||
| Six Months Ended | Year ended | ||||||||||
| June 30, 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 | 12,409 | 124 | |||||||||
| Mini-perm Real Estate | - | - | |||||||||
| Total Charge-Offs | 12,409 | 124 | |||||||||
| Recoveries | |||||||||||
| Commercial & Industrial | 2 | 7 | |||||||||
| Mini-perm Real Estate | - | - | |||||||||
| Total Recoveries | 2 | 7 | |||||||||
| Net Charge-Offs | 12,407 | 117 | |||||||||
| Provision for Credit Losses: | 6,900 | 10,000 | |||||||||
| Balance at End of Period | $ | 72,848 | $ | 78,355 | |||||||
| Average Loans Held for Investment | $ | 5,295,175 | $ | 5,067,870 | |||||||
| Loans Held for Investment at End of Period | $ | 5,428,600 | $ | 5,273,498 | |||||||
| Net Charge-Offs to Average Loans | 0.47 | % | 0.00 | % | |||||||
| Allowances for Credit Losses to Loans at End of Period | 1.34 | % | 1.49 | % | |||||||
| 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 | PFBC@finprofiles.com |
FAQ
What was Preferred Bank's (PFBC) net income for Q2 2024?
How did Preferred Bank's (PFBC) loan portfolio change in Q2 2024?
What was Preferred Bank's (PFBC) net interest margin in Q2 2024?
How did Preferred Bank's (PFBC) non-performing loans change in Q2 2024?
What was Preferred Bank's (PFBC) efficiency ratio for Q2 2024?
