Preferred Bank Announces Rights Offering

LOS ANGELES, June 10 /PRNewswire-FirstCall/ -- Preferred Bank (Nasdaq: PFBC)
today announced that the Board of Directors of Preferred Bank has authorized a
rights offering of up to $10 million of Preferred Bank common stock, no par
value, to its existing shareholders.

Under the proposed rights offering, each shareholder of record as of the June
22, 2009 record date, will receive, at no charge, one non-transferable
subscription right for each share of Preferred Bank common stock owned on the
record date. Each right will entitle the holder to purchase its pro rata
allocation of shares of Preferred Bank common stock. The subscription price
will be determined immediately prior to commencement of the rights offering.

The proposed rights offering will also include an over-subscription privilege
which will entitle each rights holder that exercises its basic subscription
privilege in full to purchase any shares not purchased by other shareholders
pursuant to their basic subscription privilege at the same subscription price
per share that applies to the basic subscription privilege.

Any shares of common stock that remain unsubscribed (after taking into account
all over-subscription rights exercised) at the expiration of the rights
offering will be offered to the public.

Preferred Bank may, in its sole discretion, increase the number of shares
offered by up to an additional 10% of the offering amount. Fractional shares
of Preferred Bank's common stock resulting from the exercise of the basic
subscription right will be eliminated by rounding down to the nearest whole
share, with the total subscription payment being adjusted accordingly.

Preferred Bank will commence the rights offering upon receipt of and subject
to the issuance of a stock permit from the California Commissioner of
Financial Institutions. The commencement and expiration dates of the rights
offering will be included in the final offering circular. It is anticipated
that the rights offering will commence within the next four weeks.

The common stock will not be registered under the U.S. Securities Act of 1933
and may not be offered or sold in the United States absent registration or an
applicable exemption from such registration requirements. Shares of
Preferred Bank's common stock are exempt from registration under the U.S.
Securities Act of 1933 and are listed and freely tradable on the NASDAQ Global
Select Market under the symbol "PFBC."

This press release does not constitute an offer to sell or the solicitation of
an offer to buy any securities in any jurisdiction, nor shall there be any
sale of the common stock referred to in this press release in any state in
which such offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state. The rights
offering will be made only by means of an offering circular.

About Preferred Bank
Preferred Bank is one of the largest independent commercial banks in
California focusing on the Chinese-American market. Preferred 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. Preferred Bank 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. Preferred 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.

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 Preferred Bank's future financial and
operating results, Preferred 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 Preferred 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 Preferred Bank's results to differ
materially from those described in the forward-looking statements can be found
in Preferred 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 Preferred 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 Preferred Bank's website at
www.preferredbank.com.

For Further Information:

AT THE COMPANY: AT FINANCIAL RELATIONS BOARD:
Edward J. Czajka Lasse Glassen
Executive Vice President General Information
Chief Financial Officer (213) 486-6546
(213) 891-1188 lglassen@mww.com

SOURCE Preferred Bank

Edward J. Czajka, Executive Vice President, Chief Financial Officer of
Preferred Bank, +1-213-891-1188; or General Information, Lasse Glassen of
Financial Relations Board, +1-213-486-6546, lglassen@mww.com, for Preferred
Bank