LOS ANGELES, Nov. 12 /PRNewswire-FirstCall/ -- Preferred Bank (Nasdaq: PFBC)
(the "Bank") today announced that on November 10, 2009, the Bank received
$7,050,000 from another bank in the full settlement of a long outstanding
lawsuit relating to a loan participation between the two banks. After
deducting the remaining carrying value of the loan and related legal expenses,
the Bank will record approximately $5 million in recovery of loan balances
that were previously charged-off.
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.
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 Lasse Glassen, General Information of
Financial Relations Board, +1-213-486-6546, lglassen@mww.com, for Preferred
Bank
