Preferred Bank Announces Suspension of Cash Dividend

LOS ANGELES--(Business Wire)--
Preferred Bank (NASDAQ: PFBC), today announced that at a meeting held on April
16, 2009, the Board of Directors has elected to indefinitely suspend the Bank`s
cash dividend. The Board determined that in this turbulent economic environment,
preservation of the Bank`s capital was of the utmost importance.

About Preferred Bank

Preferred Bank is one of the largest independent commercial banks in California
focusing on the Chinese-American market. The bank is chartered by the State of
California, and its deposits are insured by the Federal Deposit Insurance
Corporation, or FDIC, to the maximum extent permitted by law. The Company
conducts its banking business from its main office in Los Angeles, California,
and through eleven full-service branch banking offices in Alhambra, Century
City, Chino Hills, City of Industry, Torrance, Arcadia, Irvine, Diamond Bar,
Santa Monica, Anaheim and Pico Rivera, California. 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
2008 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:
Preferred Bank
Edward J. Czajka
Executive Vice President
Chief Financial Officer
213-891-1188
or
AT FINANCIAL RELATIONS BOARD:
Lasse Glassen
General Information
213-486-6546
lglassen@mww.com

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