Preferred Bank Reports Third Quarter Results
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LOS ANGELES, Oct. 29 /PRNewswire-FirstCall/ -- 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 ended September 30, 2009. Preferred Bank reported a net loss of $14.3 million or $1.31 per diluted share for the quarter compared to a net loss of $3.4 million or $0.35 per diluted share for the third quarter of 2008 and compared to a net loss of $5.8 million or $0.59 per diluted share for the second quarter of 2009.
-- The quarterly loss was due to:
-- Provision for credit losses of $18.5 million
-- OREO valuation charge of $5.9 million
-- Loss on sale of OREO of $4.5 million
-- Other-than-temporary-impairment charge (credit-related) of $587,000
-- Tangible common equity ratio improved to 9.66% at September 30, 2009
compared to 9.60% at June 30, 2009
-- Continued decrease of exposure in housing, construction and land
development loans as most construction loans are now near completion.
-- Loans 30-89 days past due decreased significantly from $87.2 as of June
30, 2009 to $28.5 million at September 30, 2009.
Li Yu, Chairman, President and CEO commented, "During the third quarter, we decided to further increase our allowance for credit losses from previous quarters. We made a significant revision to our allowance adequacy methodology as it relates to our portfolio designated 'pass' As a result, our allowance coverage of 'pass' loans now stands at 1.63%, an increase of 37 basis points from the previous quarter. We have also stepped up our valuation efforts on the entire loan portfolio and increased our allowance to 3.24% of total loans. This is even after we charged off $13.8 million of loans.
"One of the bright spots of the quarter was a 67% reduction in loans 30-89 days past due to $28.5 million. Delinquent loans is the main indicator for migration of loans into non-performing status the following quarter. For the first time this year, we have a significant reduction in this category.
"This quarter, we have also experienced increased activity in the disposition of troubled assets. Combined with the prospect of smaller migrations into non-performing loans, the fourth quarter presents a good opportunity for asset quality improvement.
"During the quarter, total constructions loans outstanding were reduced $44.2 million to $210.9 million. The higher-risk for-sale housing constructions loans now stand at $139.2 million. Most loans in this portfolio are completed projects in the selling stage or near completion. Total undisbursed funds in this portfolio were $14.0 million.
"During the quarter, we also increased deposits, decreased loans outstanding, decreased our borrowings from the FHLB and thus improving our liquidity position. After the quarterly loss, our tangible capital ratio stands at 9.66% with a higher level of loan loss reserves and much less exposure in construction and land loans."
Operating Results for the Quarter
Net Interest Income and Net Interest Margin. Net interest income before provision for loan and lease losses decreased to $9.5 million, compared to $12.0 million for the third quarter of 2008. The 21.0% decrease was due primarily to lower loan totals as well as a significant increase in nonaccrual loans in 2009. The Company's taxable equivalent net interest margin was 3.09% for the third quarter of 2009, down from the 3.40% achieved in the third quarter of 2008 and down from the 3.33% for the second quarter of 2009.
Noninterest Income. For the third quarter of 2009 noninterest income was $3,402,000 compared with $762,000 for the same quarter last year and $925,000 for the second quarter of 2009. The increase in noninterest income this quarter compared to the third quarter of 2008 and compared to the second quarter of 2009 was due to a gain on sales of securities of $2,597,000.
Noninterest Expense. Total noninterest expense was $19.1 million for the third quarter of 2009, compared to $12.0 million for the same period in 2008 and $8.2 million for the second quarter of 2009. Salaries and benefits decreased by $46,000 from the third quarter of 2008 due primarily to staff reductions. Occupancy expense was flat compared to the third quarter of 2008, increasing only $6,000. Professional services expense increased by $215,000 due primarily to an increase in legal costs associated with non-performing loans and OREO. Credit-related other-than-temporary-impairment charges were $587,000 for the third quarter of 2009 and were related to two trust preferred collateralized debt obligations ("CDO's"). This compares to $6.0 million in the same period of 2008 and $351,000 in the second quarter of 2009. OREO related expenses totaled $11.1 million for the third quarter of 2009 compared to $778,000 in the same period last year and $1,841,000 in the second quarter of 2009. OREO expense in the third quarter of 2009 consisted of $5.9 million in OREO valuation charges, loss on sale of OREO of $4.5 million and other OREO related charges of $667,000. Other expenses were $3,284,000 in the third quarter of 2009, an increase of $1,943,000 over the same period in 2008 and an increase of $1,275,000 over the second quarter of 2009. These increases were due to an increase in FDIC premiums and other expenses.
Balance Sheet Summary
Total gross loans and leases at September 30, 2009 were $1.10 billion including loans held for sale, down from $1.23 billion as of December 31, 2008. Comparing balances as of December 31, 2008 to September 30, 2009: Residential real estate loans decreased from $177.9 million to $175.5 million; total land loans decreased from $127.0 million to $98.2 million; commercial real estate loans increased from $287.8 million to $340.4 million; for-sale housing construction loans decreased from $191.1 million to $137.3 million; other construction loans decreased from $99.7 million to $69.6 million and total commercial loans decreased from $347.7 million to $281.6 million.
Total deposits as of September 30, 2009 were $1.20 billion, a decrease of $61 million from the $1.26 billion at December 31, 2008. As of September 30, 2009 compared to December 31, 2008; noninterest-bearing demand deposits increased by $11.5 million or 5.9%, interest-bearing demand and savings deposits decreased by $17.4 million or 9.2% and time deposits decreased by $55.6 million or 6.4%. Total assets were $1.41 billion, a $71.4 million or 4.8% decrease from the total of $1.48 billion as of December 31, 2008. Total borrowings increased from $58 million as of December 31, 2008 to $64 million as of September 30, 2009 as the Bank issued $26.0 million in senior unsecured debt utilizing the U.S. Treasury's Temporary Liquidity Guarantee Program during the first quarter of 2009 which was partially offset by $20 million in FHLB advance maturities. The net loan-to-deposit ratio as of September 30, 2009 was 89.3% compared to 95.8% as of December 31, 2008.
Loans Held for Sale
During the third quarter of 2009, the Bank placed four loans totaling $11.5 million into the 'held-for-sale' category at the lower of cost or market. These four loans are all on nonaccrual status and the reductions in value was charged against the allowance for loan losses. As of today, the sale of three of these notes has closed and one is still pending and due to close within the next two weeks.
Asset Quality
As of September 30, 2009 total nonaccrual loans were $108.2 million compared to $66.6 million as of December 31, 2008 and $80.9 million as of June 30, 2009. Total loans 90 days past due and still accruing were $6.9 million compared to $0 as of December 31, 2008 and $0 as of June 30, 2009. Total net charge-offs for the third quarter of 2009 were $13.8 million compared to $15.7 million for the second quarter of 2009. 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 $18.5 million as compared to $3.7 million in the third quarter of 2008 and $15.5 million for the second quarter of 2009. The allowance for loan loss at September 30, 2009 was $35.3 million or 3.24% of total loans compared to $26.9 million or 2.19% of total loans at December 31, 2008 and compared to $15.2 million and 1.27%, respectively at September 30, 2008.
Loans Past Due 30-89 Days
Loans 30-89 days past due at September 30,2009 were $28.5 million, down 67% from the total of $87.2 million as of June 30, 2009. We expect $20 million of these loans to be brought current or have been renewed by December 31, 2009.
Real Estate Owned
Total OREO decreased to $38.6 million compared to $50.6 million as of June 30, 2009 and $35.1 million as of December 31, 2008. During the third quarter of 2009, the Bank sold 5 OREO properties with a book value of $28.9 million and recorded a loss on sale of $4.5 million.
Capitalization
Preferred Bank continues to be "well capitalized" under all regulatory requirements, with a tier 1 leverage ratio of 8.94%, a tier 1 risk-based capital ratio of 10.07 %, a total risk-based capital ratio of 11.34% and a tangible common equity ("TCE") ratio of 9.66% at September 30, 2009. The Bank's regulatory capital ratios were reduced this quarter by disallowed deferred tax assets of $15.2 million.
Conference Call and Webcast
A conference call with simultaneous webcast to discuss Preferred Bank's third quarter 2009 financial results will be held today, October 29, at 5:00 p.m. Eastern / 2:00 p.m. Pacific. Interested participants and investors may access the conference call by dialing (877) 941-2928 (domestic) or (480) 629-9725 (international). There will also be a live webcast of the call available at the Investor Relations section of Preferred Bank's web site at www.preferredbank.com. Web participants are encouraged to go to the web site at least 15 minutes prior to the start of the call to register, download and install any necessary audio software.
Preferred Bank's Chairman, President and CEO Li Yu and Chief Financial Officer Edward Czajka 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 web site. A replay of the call will be available at (800) 406-7325 (domestic) or (303) 590-3000 (international) through November 5, 2009; the pass code is 4174801.
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.
Financial Tables to Follow
PREFERRED BANK
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except for net (loss) income per share and shares)
For the Three Months Ended
--------------------------
September 30, September 30, June 30,
2009 2008 2009
---- ---- ----
Interest income:
Loans, including
fees $13,033 $17,184 $15,003
Investment
securities 1,399 2,660 1,418
Fed funds sold 0 41 2
--- --- ---
Total interest
income 14,432 19,885 16,423
------ ------ ------
Interest expense:
Interest-bearing
demand $211 288 208
Savings 149 278 206
Time certificates
of $100,000 or
more 2,408 4,269 2,903
Other time
certificates 1,481 2,318 1,778
Fed funds
purchased - 46 -
FHLB borrowings 517 693 584
Senior debt 190 - 188
--- --- ---
Total interest
expense $4,956 7,892 5,867
------ ----- -----
Net interest
income 9,476 11,993 10,556
Provision for loan
losses 18,500 3,680 15,450
------ ----- ------
Net interest (loss) income
after provision for
loan losses (9,024) 8,313 (4,894)
Noninterest income:
Fees & service
charges on deposit
accounts 531 370 564
Trade finance
income 72 180 109
BOLI income 80 91 80
Net gain on sale of
investment
securities 2,597 (11) -
Other income 122 132 172
--- --- ---
Total noninterest
income 3,402 762 925
Noninterest expense:
Salary and employee
benefits 1,816 1,862 1,817
Net occupancy
expense 903 897 772
Business
development and
promotion expense 98 55 47
Professional
services 1,030 815 1,107
Office supplies and
equipment expense 304 300 282
Total other-than-
temporary
impairment losses 587 5,971 351
Portion of loss
recognized in other
comprehensive
income - - -
Other real estate
owned related
expense 11,084 778 1,841
Other 3,284 1,341 2,009
----- ----- -----
Total noninterest
expense 19,106 12,019 8,226
Loss (income)
before provision
for income
taxes (24,728) (2,944) (12,195)
Income tax (benefit)
expense (10,391) 457 (6,397)
Net (loss)
income $(14,337) (3,401) (5,798)
--------- ------- -------
Net (loss) income per
share - basic $(1.31) $(0.35) $(0.59)
Net (loss) income per
share - diluted $(1.31) $(0.35) $(0.59)
Weighted-average common shares outstanding
Basic 10,935,554 9,755,207 9,854,207
Diluted 10,935,554 9,755,207 9,854,207
PREFERRED BANK
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except for net (loss) income per share and shares)
For the Nine Months Ended
-------------------------
September 30, September 30, Change
2009 2008 %
---- ---- ---
Interest income:
Loans, including
fees $43,197 $58,080 -25.6%
Investment
securities 4,549 9,133 -50.2%
Fed funds sold 34 57 -40.4%
--- --- ------
Total interest
income 47,780 67,270 -29.0%
------ ------ ------
Interest expense:
Interest-bearing
demand 647 1,109 -41.6%
Savings 572 1,181 -51.6%
Time certificates
of $100,000 or
more 8,825 16,542 -46.7%
Other time
certificates 5,844 5,472 6.8%
Fed funds
purchased - 525 -100.0%
FHLB borrowings 1,678 2,276 -26.3%
Senior debt 479 - 100.0%
--- --- ------
Total interest
expense 18,045 27,105 -33.4%
------ ------ ------
Net interest
income 29,735 40,165 -26.0%
Provision for credit
losses 40,500 15,960 153.8%
------ ------ ------
Net interest (loss) income
after provision for
loan
losses (10,765) 24,205 -144.5%
Noninterest income:
Fees & service
charges on deposit
accounts 1,644 1,297 26.8%
Trade finance
income 306 540 -43.4%
BOLI income 237 270 -12.1%
Net gain on sale
of investment
securities 3,057 (11) NM
Other income 361 443 -18.5%
--- --- -----
Total
noninterest
income 5,605 2,539 120.7%
----- ----- ------
Noninterest
expense:
Salary and
employee
benefits 5,761 6,497 -11.3%
Net occupancy
expense 2,514 2,167 16.0%
Business
development and
promotion
expense 191 228 -16.4%
Professional
services 3,014 2,102 43.4%
Office supplies
and equipment
expense 903 907 -0.4%
Total other-than-
temporary
impairment
losses 5,570 7,899 -29.5%
Portion of loss
recognized in
other
comprehensive
income (4,207) - -100.0%
Other real estate
owned related
expense 13,538 976 NM
Other 6,631 2,893 129.2%
----- ----- ------
Total
noninterest
expense 33,915 23,669 43.3%
------ ------ -----
(Loss) income
before provision
for income
taxes (39,075) 3,075 -1370.7%
Income tax (benefit)
expense (17,618) 3,080 -672.0%
------- ----- -------
Net (loss)
income $(21,457) $(5) NM
-------- --- ----
Net (loss) income
per share - basic $(2.10) $0.00 -100.0%
Net (loss) income
per share -
diluted $(2.10) $0.00 -100.0%
Weighted-average common shares outstanding
Basic 10,197,946 9,802,699 4.0%
Diluted 10,197,946 9,802,699 4.0%
PREFERRED BANK
Condensed Consolidated Statements of Financial Condition
(unaudited)
(in thousands)
September 30, December 31,
2009 2008
---- ----
Assets
Cash and due from
banks $37,002 $19,386
Fed funds sold 80,000 50,200
------ ------
Cash and cash
equivalents 117,002 69,586
- -
Securities
available-for-
sale, at fair
value 93,920 104,406
Loans and leases 1,091,115 1,231,232
Less allowance for
loan and lease
losses (35,331) (26,935)
Less net deferred
loan fees 700 (167)
--- -----
Net loans and
leases 1,056,484 1,204,130
--------- ---------
Loans held for
sale, at lower of
cost or market 11,510 -
Other real estate
owned 38,561 35,127
Customers'
liability on
acceptances - 786
Bank furniture and
fixtures, net 6,597 7,157
Bank-owned life
insurance 7,242 8,454
Accrued interest
receivable 5,587 7,807
Federal Home Loan
Bank stock 4,996 4,996
Deferred tax
assets 29,232 25,903
Other asset 40,686 14,879
------ ------
Total assets $1,411,817 $1,483,231
---------- ----------
Liabilities and Shareholders' Equity
Liabilities:
Deposits:
Demand $207,957 $196,408
Interest-
bearing demand 117,446 126,251
Savings 54,316 62,883
Time
certificates of
$100,000 or
more 357,345 464,085
Other time
certificates 458,808 407,696
------- -------
Total
deposits $1,195,872 $1,257,323
Acceptances
outstanding - 786
Advances from
Federal Home
Loan Bank 38,000 58,000
Senior debt
issuance 25,996 -
Accrued interest
payable 2,588 5,446
Other
liabilities 12,980 24,185
------ ------
Total
liabilities 1,275,436 1,345,740
--------- ---------
Commitments and contingencies
Shareholders' equity:
Preferred stock.
Authorized 5,000,000
shares; no share
issued and outstanding
at September
30, 2009 and
December 31,
2008 - -
Common stock, no
par value.
Authorized
100,000,000
shares; issued 89,062 72,009
and
outstanding
15,767,126 and
9,755,207
shares at
September 30,
2009,
December 31, 2008,
respectively
Treasury stock (19,115) (19,115)
Additional paid-
in-capital 5,874 4,582
Retained
earnings 64,345 84,996
Accumulated
other
comprehensive
loss:
Non-credit
portion of
loss
recognized,
net of tax (2,028) -
Unrealized
loss on
securities
available-for-
sale, net of
tax (1,757) (4,981)
------- -------
Total
shareholders'
equity 136,381 137,491
------- -------
Total
liabilities and
shareholders'
equity $1,411,817 $1,483,231
---------- ----------
PREFERRED BANK
Selected Consolidated Financial Information
(unaudited)
(in thousands, except for ratios)
For the Three Months Ended
September 30, June 30, December 31, September 30,
2009 2009 2008 2008
---- ---- ---- ----
For the period:
Return on average
assets -4.05% -1.62% -1.38% -0.90%
Return on average
equity -38.89% -17.09% -13.70% -9.22%
Net interest
margin (Fully-
taxable equivalent) 3.09% 3.33% 3.31% 3.40%
Noninterest
expense to average
assets 5.40% 2.30% 3.28% 3.20%
Efficiency ratio 148.36% 71.65% 87.93% 94.23%
Net charge-offs to
average loans
(annualized) 4.79% 5.27% 0.95% 2.78%
Period end:
Tier 1 leverage
capital ratio 8.94% 9.46% 9.76% 10.01%
Tier 1 risk-based
capital ratio 10.07% 10.86% 10.39% 11.17%
Total risk-based
capital ratio 11.34% 12.13% 11.65% 12.30%
Allowance for loan
and lease losses
to total loans** 3.24% 2.67% 2.19% 1.27%
Allowance for loan
and lease losses
to nonaccrual
loans 30.57% 37.85% 40.33% 24.65%
Average balances:
Total loans and
leases* $1,140,940 $1,197,274 $1,225,986 $1,201,270
Earning assets $1,247,025 $1,300,528 $1,367,862 $1,431,265
Total assets $1,403,518 $1,433,340 $1,447,892 $1,495,939
Total deposits $1,177,636 $1,201,475 $1,205,901 $1,255,020
Period end:
Loans and Leases:*
Real estate -
Single and multi-
family
residential $175,506 $191,021 $177,890 $166,050
Real estate - Land
for housing 60,186 65,658 74,816 82,602
Real estate - Land
for income
properties 38,050 41,999 52,232 41,609
Real estate -
Commercial 340,369 299,165 287,759 253,700
Real estate - For
sale housing
construction 137,305 141,196 191,073 215,199
Real estate -
Other
construction 69,606 113,122 99,730 113,135
Commercial and
industrial 239,560 239,420 273,890 245,223
Trade finance and
other 42,043 54,514 73,842 79,059
------ ------ ------ ------
Total gross
loans and
leases 1,102,625 1,146,095 1,231,232 1,196,577
Allowance for loan
and lease losses (35,331) (30,611) (26,935) (15,240)
Net deferred loan
fees 700 330 (167) (55)
--- --- ----- ----
Net loans and
leases $1,067,994 $1,115,814 $1,204,130 $1,181,282
---------- ---------- ---------- ----------
Deposits:
Noninterest-
bearing demand $207,957 $195,146 $196,408 $197,831
Interest-bearing
demand and
savings 171,762 161,676 189,134 191,114
------- ------- ------- -------
Total core
deposits 379,719 356,822 385,542 388,945
Time deposits 816,153 783,037 871,781 836,660
------- ------- ------- -------
Total deposits $1,195,872 $1,139,859 $1,257,323 $1,225,605
---------- ---------- ---------- ----------
* Loans held for sale are included
Preferred Bank
Loan and Credit Quality Information
Allowance For Credit Losses & Loss History
Nine Months Year Nine Months
Ended Ended Ended
September 30, December 31, September 30,
2009 2008 2008
------------- ------------ -------------
(Dollars in 000's)
Allowance For Credit Losses
Balance at Beginning of
Period $26,935 $14,896 $14,896
Charge-Offs
Commercial &
Industrial 2,031 4,686 4,237
Mini-perm Real
Estate 284 688 688
Construction -
Residential 18,919 8,636 6,278
Construction -
Commercial 2,351 - -
Land - Residential 8,146 4,518 4,413
Land - Commercial 410 - -
Total Charge-Offs 32,141 18,528 15,616
Recoveries
Commercial &
Industrial 37 - -
Mini-perm Real
Estate - - -
Construction -
Residential - - -
Construction -
Commercial - - -
Land - Residential - 7 -
Land - Commercial - - -
Total Recoveries 37 7 -
Net Loan Charge-Offs 32,104 18,521 15,616
Provision for Credit
Losses 40,500 30,560 15,960
------ ------ ------
Balance at End of Period $35,331 $26,935 $15,240
Average Loans and
Leases* $1,187,289 $1,220,348 $1,218,466
Loans and Leases at end
of Period* $1,102,625 $1,231,232 $1,196,577
Net Charge-Offs to
Average Loans and
Leases 3.62% 1.52% 1.71%
Allowance for loan and
lease losses to total
loans** 3.24% 2.19% 1.27%
Asset Quality 30-89 Days 90+ Still
Past Due Accruing Non-Accrual OREO
# $ # $ # $ # $
-- -- -- -- -- -- -- --
Commercial &
Industrial 4 $4,961,000 2 $262,000 11 $17,423,000 1 $1,843,000
Mini-perm
Real Estate 1 320,000 1 6,663,000 4 16,541,000 -
Construction -
Commercial 2 5,674,000 - - 1 1,610,000 -
Construction -
Residential 2 15,250,000 - - 4 21,738,000 2 4,806,000
Land -
Residential - - - - 7 26,967,000 6 17,132,000
Land -
Commercial 1 2,300,000 - - 3 12,427,000 4 14,780,000
-- --------- -- --------- -- ---------- -- ----------
Subtotal 10 $28,505,000 3 $6,925,000 30 $96,706,000 13 38,561,000
Loans Held
for Sale - - - - 4 11,510,000 - -
-- -- -- -- -- ---------- -- --
Total 10 $28,505,000 3 $6,925,000 34 $108,216,000 13 $38,561,000
== =========== == ========== == ============ == ===========
* Loans held for sale are included
** Loans held for sale are excluded
Preferred Bank
Loan and Credit Quality Information
Commercial Real Estate Portfolio *
(Dollars in Thousands)
# Loans # Loans Avg
LTV @ DCR @ Over Over Loan
$ Size Origination Origination $10mm $5mm Size
------ ----------- ----------- ----- ---- ----
Office Building $58,329 51.7% 1.86 1 2 $1,667
Retail 112,028 60.7% 1.49 3 3 $2,667
Industrial 62,346 61.9% 1.39 - 2 $1,599
Hospitality 33,039 59.1% 1.54 - 3 $3,671
Medical Office 29,268 62.6% 1.26 1 - $4,878
Hospital 15,580 50.1% 2.43 - 2 $5,193
Other Use 29,779 52.0% 1.55 1 1 $3,309
------ ----- ---- -- -- ------
$340,369 58.1% 1.55 6 13 3,380
* Average Year of Origination was 2006
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@frbir.com
SOURCE Preferred Bank
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