Preferred Bank (NASDAQ: PFBC), one of the larger
independent California banks, today reported results for the
quarter and year ended December 31, 2021. Preferred Bank (“the
Bank”) reported net income of $26.4 million or $1.80 per diluted
share for the fourth quarter of 2021. This is an increase of $5.5
million or 26.5% over the same quarter last year and up from the
$26.1 million or $1.76 per share posted in the third quarter of
2021. The primary reasons for the increase compared to the prior
year was a $4.2 million provision for credit losses recorded in the
fourth quarter of last year as compared to a reversal of $900,000
in allowance for credit losses (“ACL”) this quarter, a difference
of $5.1 million. In comparison to the third quarter of 2021, net
interest income increased $1.7 million, noninterest income was down
$818,000 and noninterest expense decreased $564,000.
Fourth Quarter 2021 highlights:
- Net income of $26.4
million, or $1.80 per diluted share (company all-time high)
- Linked quarter loan
growth (Ex-PPP) of 2.9%
- Return on average
assets (“ROA”) of 1.72%
- Return on beginning
equity (“ROBE”) of 18.65%
- Pre-provision,
pre-tax (“PPPT”) ROBE of 25.82% 1
- Efficiency ratio of
28.82%
1 This is a non-GAAP measure and linking to the reconciliation
on page 5.
Full Year 2021 highlights:
- Net income of $95.2
million, or $6.41 per diluted share (company all-time high)
- Loan growth (Ex-PPP)
of 10.5%
- Deposit growth of
17.6%
- Return on average
assets (“ROA”) of 1.74%
- Return on beginning
equity (“ROBE”) of 18.13%
- Efficiency ratio of
31.40%
Li Yu, Chairman and CEO, commented, “I am very pleased to report
fourth quarter 2021 earnings of $26.4 million or $1.80 per diluted
share and record full year earnings of $95.2 million or $6.41 per
diluted share. Pre-provision, pre-tax revenue (“PPPT”) also was a
record this year for Preferred Bank.
“In the midst of this COVID-19 pandemic, the Bank recorded
strong growth in loans, deposits and total assets. Loan growth for
the quarter, excluding PPP, was 2.9% and for the year was 10.5%.
Deposit growth was only 0.6% for the quarter but was a robust 17.6%
for the year. Of the $783 million in deposit growth in 2021, almost
90% was in DDA and money market accounts.
“The net interest margin for the fourth quarter was 3.28%, down
from last quarter’s 3.36% but this was due to loan growth in the
fourth quarter mostly taking place in the latter part of the
quarter. The larger asset base and our highly asset sensitive
balance sheet bode well for NIM expansion for 2022 and 2023.
“During the quarter, we successfully resolved a $9.2 million
nonperforming loan which did not require the use of the set aside
allowance for credit loss that was anticipated. Also, in early
January of 2022, a $23 million loan which was deemed a troubled
debt restructuring (“TDR”) paid off in full. With these two loans
resolved, the Bank’s credit quality is close to pristine
levels.
“Looking to 2022, we see potential concerns. Inflation is
running at levels not seen in decades and thus will result in
higher operating costs. The Omicron variant is another major
concern although ultimately the data regarding the severity of this
variant appears to be encouraging. We must remain confident that
our Country will deal with these issues effectively. Meanwhile, we
will apply our best efforts to meet these new challenges.”
Results of Operations - Quarter
Net Interest Income and Net Interest Margin.
Net interest income before provision for credit losses was $49.4
million for the fourth quarter of 2021. This was an increase from
the $47.8 million recorded in the third quarter of 2021 and was
well ahead of the $46.1 million recorded in the fourth quarter of
2020. Loan growth was the primary driver of the increase in net
interest income as was an increase in investment securities along
with a decline in interest expense. The taxable equivalent margin
was 3.28% for the fourth quarter of 2021, as compared to 3.36% in
the third quarter of 2021 and versus 3.66% for the same period last
year.
Noninterest Income. For the fourth quarter of
2021, noninterest income was $1,966,000 compared with $1,356,000
for the same quarter last year and compared to $2,784,000 for the
third quarter of 2021. The increase compared to last year was due
to a $663,000 loss on sale of securities recorded in the fourth
quarter of last year. The decrease from the third quarter of 2021
was mainly due to letter of credit (“LC”) fees which were down by
$858,000 from the third quarter of 2021.
Noninterest Expense. Total
noninterest expense was $14.8 million for the fourth quarter of
2021. This is up compared to the $14.2 million recorded in the same
quarter last year but a decline on a linked-quarter basis of
$564,000 from the third quarter of 2021. Salaries and benefits
expense totaled $10.3 million for the fourth quarter of 2021, an
increase of $838,000 from the fourth quarter of 2020 and a decrease
of $642,000 from the $10.9 million recorded in the third quarter of
2021. The increase over the prior year was due mainly to staff
expansion and a corresponding increase in the Bank’s payroll tax
expense and the decrease from the third quarter of 2021 was
primarily due lower incentive compensation expense. Occupancy
expense totaled $1.4 million for the quarter which was relatively
flat compared to both the prior quarter and when compared to the
same quarter last year. Professional services expense was $1.1
million for the fourth quarter of 2021, essentially flat when
comparted to both prior periods. Other expenses were $1.3 million
for the fourth quarter of 2021, down from the $1.4 million recorded
last quarter and also a decline from the $1.6 million posted in the
fourth quarter of 2020. Lower FDIC premiums were the primary reason
for the decrease compared to both periods. For the quarter ended
December 31, 2021, the Bank’s efficiency ratio was a record 28.8%,
down from last quarter’s 30.4% mark and slightly below the 29.9%
ratio achieved in the same period last year.
Income Taxes. The Bank recorded a provision for
income taxes of $11.1 million for the fourth quarter of 2021. This
represents an effective tax rate (“ETR”) of 29.5% and slightly
above the ETR of 28.7% in the prior quarter and also up from the
ETR of 28.1% in the same period last year. The Bank’s ETR will
fluctuate slightly from quarter to quarter within a fairly small
range due to the timing of taxable events throughout the year.
Results of Operations - Year
Net income for 2021 was $95.2 million, or $6.41 per diluted
share. This compares to $69.5 million or $4.65 per diluted share
for the year 2020. This represents an increase in net income of
$25.8 million or 37.1% and an increase in diluted EPS of $1.75 per
share or 37.7%. The primary drivers for the large increase year
over year is a reversal of provision for credit losses of $1.0
million in 2021 versus a provision for credit losses in 2020 of
$26.0 million. In addition, net interest income increased by $11.7
million or 6.7% over 2020 levels. Also, noninterest income
increased by $1.7 million or 27.7% over 2020 and offsetting these
was an increase in noninterest expense of $3.4 million or 6.0%. The
Bank’s net interest margin was 3.46% for 2021 compared to 3.62% in
2020.
Balance Sheet Summary
Total gross loans at December 31, 2021 were $4.42 billion, an
increase of $390 million or 9.7% over the total of $4.04 billion as
of December 31, 2020. Total deposits increased to $5.23 billion, an
increase of $783 million or 17.6% over the $4.44 billion as of
December 31, 2020. Total assets ended the quarter at $6.04 billion,
an increase of $901 million or 17.5% over the total of $5.14
billion as of December 31, 2020.
Asset Quality
As of December 31, 2021, nonaccrual loans totaled $14.8 million,
well off of the $20.9 million reported as of September 30, 2021 and
down from the $20.5 million as of December 31, 2020. Total net
charge-offs for the fourth quarter of 2021 were $267,000 as
compared to $1.0 million in the prior quarter and compared to net
charge-offs of $2.0 million in the fourth quarter of 2020.
Allowance for Credit Losses
The (reversal of) provision for credit losses for the fourth
quarter of 2021 was ($900,000) as compared to a reversal of ($1.5
million) in the prior quarter and compared to the $4.2 million
provision for credit losses posted in the fourth quarter of 2020. A
consistently improving economic outlook, among other factors such
as credit quality led to a lower allowance requirement. The Bank’s
allowance coverage ratio now stands at 1.37% of total loans
(excluding PPP loans).
Capitalization
As of December 31, 2021, the Bank’s leverage ratio was 9.49%,
the common equity tier 1 capital ratio was 11.21% and the total
capital ratio stood at 15.32%. As of December 31, 2020, the Bank’s
leverage ratio was 10.08%, the common equity tier 1 ratio was
11.21% and the total risk-based capital ratio was 14.64%.
GAAP –
Non-GAAP Reconciliation -Fourth Quarter 2021
PPPT ROBE |
|
|
Net Income |
$ |
26,421 |
|
Add: Reversal of provision for
credit losses |
|
(900 |
) |
Add: Income tax expense |
|
11,056 |
|
Pre-provision and pre-tax
income |
$ |
36,577 |
|
|
|
Total equity - 9/30/21 |
$ |
562,021 |
|
Pre-provision and pre-tax
ROBE |
|
25.82 |
% |
Conference Call and Webcast
A conference call with simultaneous webcast to discuss Preferred
Bank’s fourth quarter 2021 financial results will be held tomorrow,
January 20, 2022 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. Web
participants are encouraged to go to the website at least 15
minutes prior to the start of the call to register, download and
install any necessary audio software.
Preferred Bank's Chairman and Chief Executive Officer 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 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 website. A
replay of the call will also be available at 877-344-7529
(domestic) or 412-317-0088 (international) through February 3,
2022; the passcode is 4300401.
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 eleven full-service branch
banking offices in California (Alhambra, Century City, City of
Industry, Torrance, Arcadia, Irvine, Diamond Bar, Pico Rivera,
Tarzana and San Francisco (2)) and one branch in Flushing, New
York. In addition, the Bank operates a Loan Production Office in
the Houston, Texas suburb of Sugar Land. 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 2020 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 |
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
Interest
income: |
|
|
|
|
|
|
Loans, including fees |
|
$ |
51,906 |
|
|
$ |
50,866 |
|
|
$ |
51,299 |
|
Investment securities |
|
|
2,867 |
|
|
|
2,725 |
|
|
|
2,320 |
|
Fed funds sold |
|
|
18 |
|
|
|
20 |
|
|
|
30 |
|
Total interest income |
|
|
54,791 |
|
|
|
53,611 |
|
|
|
53,649 |
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
Interest-bearing demand |
|
|
1,511 |
|
|
|
1,486 |
|
|
|
1,499 |
|
Savings |
|
|
17 |
|
|
|
3 |
|
|
|
21 |
|
Time certificates |
|
|
2,521 |
|
|
|
3,045 |
|
|
|
4,534 |
|
Subordinated debt |
|
|
1,325 |
|
|
|
1,324 |
|
|
|
1,532 |
|
Total interest expense |
|
|
5,374 |
|
|
|
5,858 |
|
|
|
7,586 |
|
Net interest income |
|
|
49,417 |
|
|
|
47,753 |
|
|
|
46,063 |
|
(Reversal
of) provision for credit losses |
|
|
(900 |
) |
|
|
(1,500 |
) |
|
|
4,200 |
|
Net interest income after (reversal of) provision for credit
losses |
|
|
|
|
|
|
|
|
|
50,317 |
|
|
|
49,253 |
|
|
|
41,863 |
|
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
Fees & service charges on deposit accounts |
|
|
581 |
|
|
|
581 |
|
|
|
456 |
|
Letters of credit fee income |
|
|
719 |
|
|
|
1,576 |
|
|
|
1,004 |
|
BOLI income |
|
|
99 |
|
|
|
98 |
|
|
|
96 |
|
Net gain on called and sale of investment securities |
|
|
- |
|
|
|
41 |
|
|
|
(663 |
) |
Other income |
|
|
567 |
|
|
|
488 |
|
|
|
463 |
|
Total noninterest income |
|
|
1,966 |
|
|
|
2,784 |
|
|
|
1,356 |
|
|
|
|
|
|
|
|
Noninterest
expense: |
|
|
|
|
|
|
Salary and employee benefits |
|
|
10,278 |
|
|
|
10,920 |
|
|
|
9,440 |
|
Net occupancy expense |
|
|
1,396 |
|
|
|
1,430 |
|
|
|
1,378 |
|
Business development and promotion expense |
|
|
280 |
|
|
|
98 |
|
|
|
204 |
|
Professional services |
|
|
1,075 |
|
|
|
1,075 |
|
|
|
1,084 |
|
Office supplies and equipment expense |
|
|
498 |
|
|
|
467 |
|
|
|
454 |
|
Other |
|
|
1,279 |
|
|
|
1,380 |
|
|
|
1,617 |
|
Total noninterest expense |
|
|
14,806 |
|
|
|
15,370 |
|
|
|
14,177 |
|
Income before provision for income taxes |
|
|
37,477 |
|
|
|
36,667 |
|
|
|
29,042 |
|
Income tax
expense |
|
|
11,056 |
|
|
|
10,522 |
|
|
|
8,162 |
|
Net income |
|
$ |
26,421 |
|
|
$ |
26,145 |
|
|
$ |
20,880 |
|
|
|
|
|
|
|
|
Dividend and
earnings allocated to participating securities |
|
|
(3 |
) |
|
|
(3 |
) |
|
|
(42 |
) |
Net income
available to common shareholders |
|
$ |
26,418 |
|
|
$ |
26,142 |
|
|
$ |
20,838 |
|
|
|
|
|
|
|
|
Income per
share available to common shareholders |
|
|
|
|
|
|
Basic |
|
$ |
1.80 |
|
|
$ |
1.76 |
|
|
$ |
1.40 |
|
Diluted |
|
$ |
1.80 |
|
|
$ |
1.76 |
|
|
$ |
1.40 |
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
Basic |
|
|
14,677,515 |
|
|
|
14,884,570 |
|
|
|
14,895,925 |
|
Diluted |
|
|
14,677,515 |
|
|
|
14,884,570 |
|
|
|
14,895,925 |
|
|
|
|
|
|
|
|
Cash
dividends per common share |
|
$ |
0.43 |
|
|
$ |
0.38 |
|
|
$ |
0.30 |
|
|
|
|
|
|
|
|
PREFERRED
BANK |
Condensed
Consolidated Statements of Operations |
(unaudited) |
(in
thousands, except for net income per share and
shares) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year
Ended |
|
|
|
|
December 31, |
|
December 31, |
|
Change |
|
|
|
2021 |
|
|
|
2020 |
|
|
% |
Interest
income: |
|
|
|
|
|
|
Loans, including fees |
|
$ |
200,537 |
|
|
$ |
203,093 |
|
|
-1.3 |
% |
Investment securities |
|
|
10,417 |
|
|
|
10,954 |
|
|
-4.9 |
% |
Fed funds sold |
|
|
81 |
|
|
|
215 |
|
|
-62.4 |
% |
Total interest income |
|
|
211,035 |
|
|
|
214,262 |
|
|
-1.5 |
% |
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
Interest-bearing demand |
|
|
5,964 |
|
|
|
7,761 |
|
|
-23.2 |
% |
Savings |
|
|
57 |
|
|
|
72 |
|
|
-20.1 |
% |
Time certificates |
|
|
12,812 |
|
|
|
26,151 |
|
|
-51.0 |
% |
Subordinated debt |
|
|
6,325 |
|
|
|
6,124 |
|
|
3.3 |
% |
Total interest expense |
|
|
25,158 |
|
|
|
40,108 |
|
|
-37.3 |
% |
Net interest income |
|
|
185,877 |
|
|
|
174,154 |
|
|
6.7 |
% |
(Reversal
of) provision for credit losses |
|
|
(1,000 |
) |
|
|
26,000 |
|
|
-103.8 |
% |
Net interest income after (reversal of) provision for credit
losses |
|
|
|
|
|
|
|
|
|
186,877 |
|
|
|
148,154 |
|
|
26.1 |
% |
|
|
|
|
|
|
|
Noninterest
income: |
|
|
|
|
|
|
Fees & service charges on deposit accounts |
|
|
2,113 |
|
|
|
1,627 |
|
|
29.9 |
% |
Letters of credit fee income |
|
|
3,914 |
|
|
|
3,284 |
|
|
19.2 |
% |
BOLI income |
|
|
391 |
|
|
|
381 |
|
|
2.5 |
% |
Net (loss) gain on called and sale of investment securities |
|
|
41 |
|
|
|
(761 |
) |
|
-105.4 |
% |
Net (loss) gain on sale of loans |
|
|
(640 |
) |
|
|
15 |
|
|
-4363.5 |
% |
Other income |
|
|
1,924 |
|
|
|
1,517 |
|
|
26.8 |
% |
Total noninterest income |
|
|
7,743 |
|
|
|
6,063 |
|
|
27.7 |
% |
|
|
|
|
|
|
|
Noninterest
expense: |
|
|
|
|
|
|
Salary and employee benefits |
|
|
42,606 |
|
|
|
39,563 |
|
|
7.7 |
% |
Net occupancy expense |
|
|
5,656 |
|
|
|
5,525 |
|
|
2.4 |
% |
Business development and promotion expense |
|
|
568 |
|
|
|
564 |
|
|
0.7 |
% |
Professional services |
|
|
4,127 |
|
|
|
4,078 |
|
|
1.2 |
% |
Office supplies and equipment expense |
|
|
1,879 |
|
|
|
1,845 |
|
|
1.8 |
% |
Other |
|
|
5,956 |
|
|
|
5,783 |
|
|
3.0 |
% |
Total noninterest expense |
|
|
60,792 |
|
|
|
57,358 |
|
|
6.0 |
% |
Income before provision for income taxes |
|
|
133,828 |
|
|
|
96,859 |
|
|
38.2 |
% |
Income tax
expense |
|
|
38,588 |
|
|
|
27,391 |
|
|
40.9 |
% |
Net income |
|
$ |
95,240 |
|
|
$ |
69,468 |
|
|
37.1 |
% |
|
|
|
|
|
|
|
Dividend and
earnings allocated to participating securities |
|
$ |
(11 |
) |
|
$ |
(194 |
) |
|
-94.1 |
% |
Net income
available to common shareholders |
|
$ |
95,229 |
|
|
$ |
69,274 |
|
|
37.5 |
% |
|
|
|
|
|
|
|
Income per
share available to common shareholders |
|
|
|
|
|
|
Basic |
|
$ |
6.41 |
|
|
$ |
4.65 |
|
|
37.6 |
% |
Diluted |
|
$ |
6.41 |
|
|
$ |
4.65 |
|
|
37.6 |
% |
|
|
|
|
|
|
|
Weighted-average common shares outstanding |
|
|
|
|
|
|
Basic |
|
|
14,866,000 |
|
|
|
14,885,230 |
|
|
-0.1 |
% |
Diluted |
|
|
14,866,000 |
|
|
|
14,885,230 |
|
|
-0.1 |
% |
|
|
|
|
|
|
|
Dividends
per share |
|
$ |
1.57 |
|
|
$ |
1.20 |
|
|
30.8 |
% |
|
|
|
|
|
|
|
PREFERRED
BANK |
Condensed
Consolidated Statements of Financial Condition |
(unaudited) |
(in
thousands) |
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
(Unaudited) |
|
(Audited) |
Assets |
|
|
|
Cash and due
from banks |
$ |
1,030,610 |
|
|
$ |
739,465 |
|
Fed funds
sold |
|
20,000 |
|
|
|
20,000 |
|
Cash and cash equivalents |
|
1,050,610 |
|
|
|
759,465 |
|
|
|
|
|
Securities
held to maturity, at amortized cost |
|
13,962 |
|
|
|
6,568 |
|
Securities
available-for-sale, at fair value |
|
451,911 |
|
|
|
239,682 |
|
Loans |
|
4,424,992 |
|
|
|
4,035,394 |
|
Less allowance for credit losses |
|
(59,969 |
) |
|
|
(63,426 |
) |
Less amortized deferred loan fees, net |
|
(6,316 |
) |
|
|
(4,574 |
) |
Loans, net |
|
4,358,707 |
|
|
|
3,967,394 |
|
|
|
|
|
Customers'
liability on acceptances |
|
10,188 |
|
|
|
3,596 |
|
Bank
furniture and fixtures, net |
|
10,533 |
|
|
|
11,825 |
|
Bank-owned
life insurance |
|
10,088 |
|
|
|
9,828 |
|
Accrued
interest receivable |
|
14,646 |
|
|
|
23,692 |
|
Investment
in affordable housing partnerships |
|
59,018 |
|
|
|
62,521 |
|
Federal Home
Loan Bank stock, at cost |
|
15,000 |
|
|
|
15,000 |
|
Deferred tax
assets |
|
25,288 |
|
|
|
24,466 |
|
Operating
lease right-of-use assets |
|
21,969 |
|
|
|
16,106 |
|
Other
assets |
|
2,997 |
|
|
|
3,498 |
|
Total assets |
$ |
6,044,917 |
|
|
$ |
5,143,641 |
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
Deposits: |
|
|
|
Non-interest bearing demand deposits |
$ |
1,305,691 |
|
|
$ |
938,911 |
|
Interest-bearing deposits: |
|
2,032,820 |
|
|
|
1,700,818 |
|
Savings |
|
37,839 |
|
|
|
34,702 |
|
Time certificates of $250,000 or more |
|
934,444 |
|
|
|
912,546 |
|
Other time certificates |
|
914,717 |
|
|
|
855,503 |
|
Total deposits |
|
5,225,511 |
|
|
|
4,442,480 |
|
|
|
|
|
Acceptances
outstanding |
|
10,188 |
|
|
|
3,596 |
|
Subordinated
debt issuance, net |
|
147,758 |
|
|
|
99,334 |
|
Commitments
to fund investment in affordable housing partnerships |
|
22,606 |
|
|
|
30,715 |
|
Operating
lease liabilities |
|
22,861 |
|
|
|
18,682 |
|
Accrued
interest payable |
|
715 |
|
|
|
1,245 |
|
Other
liabilities |
|
31,545 |
|
|
|
22,142 |
|
Total liabilities |
|
5,461,184 |
|
|
|
4,618,194 |
|
|
|
|
|
Shareholders' equity |
|
583,733 |
|
|
|
525,447 |
|
Total liabilities and shareholders' equity |
$ |
6,044,917 |
|
|
$ |
5,143,641 |
|
|
|
|
|
Book value
per common share |
$ |
39.76 |
|
|
$ |
35.19 |
|
Number of
common shares outstanding |
|
14,679,769 |
|
|
|
14,931,861 |
|
PREFERRED
BANK |
Selected
Consolidated Financial Information |
(unaudited) |
(in
thousands, except for ratios) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter
Ended |
|
|
|
|
|
|
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
Unaudited historical quarterly operations
data: |
|
|
|
|
|
Interest income |
$ |
54,791 |
|
$ |
53,611 |
|
$ |
50,473 |
|
$ |
52,160 |
|
$ |
53,649 |
|
Interest expense |
|
5,374 |
|
|
5,858 |
|
|
7,112 |
|
|
6,814 |
|
|
7,586 |
|
Interest income before provision for credit losses |
|
49,417 |
|
|
47,753 |
|
|
43,361 |
|
|
45,346 |
|
|
46,063 |
|
(Reversal of) provision for credit losses |
|
(900 |
) |
|
(1,500 |
) |
|
- |
|
|
1,400 |
|
|
4,200 |
|
Noninterest income |
|
1,966 |
|
|
2,784 |
|
|
1,646 |
|
|
1,347 |
|
|
1,356 |
|
Noninterest expense |
|
14,806 |
|
|
15,370 |
|
|
14,964 |
|
|
15,652 |
|
|
14,177 |
|
Income tax expense |
|
11,056 |
|
|
10,522 |
|
|
8,563 |
|
|
8,447 |
|
|
8,162 |
|
Net income |
$ |
26,421 |
|
$ |
26,145 |
|
$ |
21,480 |
|
$ |
21,194 |
|
$ |
20,880 |
|
|
|
|
|
|
|
Earnings per
share |
|
|
|
|
|
Basic |
$ |
1.80 |
|
$ |
1.76 |
|
$ |
1.44 |
|
$ |
1.42 |
|
$ |
1.40 |
|
Diluted |
$ |
1.80 |
|
$ |
1.76 |
|
$ |
1.44 |
|
$ |
1.42 |
|
$ |
1.40 |
|
|
|
|
|
|
|
Ratios for the period: |
|
|
|
|
|
Return on average assets |
|
1.72 |
% |
|
1.80 |
% |
|
1.58 |
% |
|
1.65 |
% |
|
1.63 |
% |
Return on beginning equity |
|
18.65 |
% |
|
18.56 |
% |
|
15.98 |
% |
|
16.36 |
% |
|
16.49 |
% |
Net interest margin (Fully-taxable equivalent) |
|
3.28 |
% |
|
3.36 |
% |
|
3.25 |
% |
|
3.61 |
% |
|
3.66 |
% |
Noninterest expense to average assets |
|
0.97 |
% |
|
1.06 |
% |
|
1.10 |
% |
|
1.22 |
% |
|
1.10 |
% |
Efficiency ratio |
|
28.82 |
% |
|
30.41 |
% |
|
33.25 |
% |
|
33.52 |
% |
|
29.90 |
% |
Net charge-offs (recoveries) to average loans (annualized) |
|
0.03 |
% |
|
0.10 |
% |
|
0.12 |
% |
|
-0.01 |
% |
|
0.20 |
% |
|
|
|
|
|
|
Ratios as of period end: |
|
|
|
|
|
Tier 1 leverage capital ratio |
|
9.49 |
% |
|
9.64 |
% |
|
10.07 |
% |
|
10.26 |
% |
|
10.08 |
% |
Common equity tier 1 risk-based capital ratio |
|
11.21 |
% |
|
11.19 |
% |
|
11.28 |
% |
|
11.34 |
% |
|
11.21 |
% |
Tier 1 risk-based capital ratio |
|
11.21 |
% |
|
11.19 |
% |
|
11.28 |
% |
|
11.34 |
% |
|
11.21 |
% |
Total risk-based capital ratio |
|
15.32 |
% |
|
15.47 |
% |
|
15.61 |
% |
|
14.73 |
% |
|
14.64 |
% |
Allowances for credit losses to loans at end of period |
|
1.36 |
% |
|
1.41 |
% |
|
1.49 |
% |
|
1.56 |
% |
|
1.57 |
% |
Allowance for credit losses to non-performing loans |
|
404.55 |
% |
|
292.84 |
% |
|
290.58 |
% |
|
294.74 |
% |
|
308.96 |
% |
|
|
|
|
|
|
Average balances: |
|
|
|
|
|
Total securities |
$ |
470,811 |
|
$ |
401,641 |
|
$ |
269,000 |
|
$ |
242,200 |
|
$ |
251,284 |
|
Total loans |
|
4,218,699 |
|
|
4,156,289 |
|
|
4,130,190 |
|
|
4,044,800 |
|
|
3,971,537 |
|
Total earning assets |
|
5,984,055 |
|
|
5,659,678 |
|
|
5,364,598 |
|
|
5,102,291 |
|
|
5,018,031 |
|
Total assets |
|
6,079,919 |
|
|
5,760,056 |
|
|
5,467,678 |
|
|
5,200,079 |
|
|
5,110,065 |
|
Total time certificate of deposits |
|
1,915,117 |
|
|
1,959,514 |
|
|
1,893,247 |
|
|
1,820,461 |
|
|
1,764,528 |
|
Total interest bearing deposits |
|
3,945,276 |
|
|
3,783,704 |
|
|
3,704,771 |
|
|
3,531,358 |
|
|
3,508,276 |
|
Total deposits |
|
5,277,508 |
|
|
4,971,607 |
|
|
4,724,104 |
|
|
4,486,399 |
|
|
4,426,326 |
|
Total interest bearing liabilities |
|
4,093,003 |
|
|
3,931,375 |
|
|
3,815,964 |
|
|
3,630,705 |
|
|
3,607,595 |
|
Total equity |
|
576,462 |
|
|
569,624 |
|
|
553,561 |
|
|
538,282 |
|
|
518,567 |
|
|
|
|
|
|
|
PREFERRED
BANK |
Selected
Consolidated Financial Information |
(unaudited) |
(in
thousands, except for ratios) |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended |
|
December 31, |
|
December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
Interest income |
$ |
211,035 |
|
|
$ |
214,262 |
|
Interest expense |
|
25,158 |
|
|
|
40,108 |
|
Interest income before provision for credit losses |
|
185,877 |
|
|
|
174,154 |
|
(Reversal of) provision for credit losses |
|
(1,000 |
) |
|
|
26,000 |
|
Noninterest income |
|
7,743 |
|
|
|
6,063 |
|
Noninterest expense |
|
60,792 |
|
|
|
57,358 |
|
Income tax expense |
|
38,588 |
|
|
|
27,391 |
|
Net income |
$ |
95,240 |
|
|
$ |
69,468 |
|
|
|
|
|
Earnings per share |
|
|
|
Basic |
$ |
6.41 |
|
|
$ |
4.65 |
|
Diluted |
$ |
6.41 |
|
|
$ |
4.65 |
|
|
|
|
|
Ratios for the period: |
|
|
|
Return on average assets |
|
1.74 |
% |
|
|
1.41 |
% |
Return on beginning equity |
|
18.13 |
% |
|
|
14.78 |
% |
Net interest margin (Fully-taxable equivalent) |
|
3.46 |
% |
|
|
3.62 |
% |
Noninterest expense to average assets |
|
1.11 |
% |
|
|
1.16 |
% |
Efficiency ratio |
|
31.40 |
% |
|
|
31.83 |
% |
Net charge-offs to average loans |
|
0.06 |
% |
|
|
0.14 |
% |
|
|
|
|
Average balances: |
|
|
|
Total securities |
$ |
304,865 |
|
|
$ |
246,715 |
|
Total loans |
|
4,110,835 |
|
|
|
3,891,530 |
|
Total earning assets |
|
5,377,565 |
|
|
|
4,828,445 |
|
Total assets |
|
5,477,989 |
|
|
|
4,926,887 |
|
Total time certificate of deposits |
|
1,891,583 |
|
|
|
1,782,558 |
|
Total interest bearing deposits |
|
3,674,201 |
|
|
|
3,414,045 |
|
Total deposits |
|
4,729,147 |
|
|
|
4,267,334 |
|
Total interest bearing liabilities |
|
3,793,782 |
|
|
|
3,513,315 |
|
Total equity |
|
553,937 |
|
|
|
496,164 |
|
|
|
|
|
PREFERRED
BANK |
Selected
Consolidated Financial Information |
(unaudited) |
(in
thousands, except for ratios) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
Unaudited quarterly statement of financial position
data: |
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
1,050,610 |
|
|
$ |
1,082,634 |
|
|
$ |
896,474 |
|
|
$ |
943,126 |
|
|
$ |
759,465 |
|
Securities held-to-maturity, at amortized cost |
|
13,962 |
|
|
|
15,294 |
|
|
|
15,749 |
|
|
|
6,039 |
|
|
|
6,568 |
|
Securities available-for-sale, at fair value |
|
451,911 |
|
|
|
461,356 |
|
|
|
278,460 |
|
|
|
228,635 |
|
|
|
239,682 |
|
Loans: |
|
|
|
|
|
|
|
|
|
Real estate – Mortgage: |
|
|
|
|
|
|
|
|
|
|
Real estate—Residential |
|
$ |
536,286 |
|
|
$ |
540,725 |
|
|
$ |
558,147 |
|
|
$ |
541,313 |
|
|
$ |
523,789 |
|
Real estate—Commercial |
|
|
2,267,063 |
|
|
|
2,093,692 |
|
|
|
2,019,995 |
|
|
|
1,925,554 |
|
|
|
1,911,485 |
|
Total Real Estate – Mortgage |
|
|
2,803,349 |
|
|
|
2,634,417 |
|
|
|
2,578,142 |
|
|
|
2,466,867 |
|
|
|
2,435,274 |
|
Real estate – Construction: |
|
|
|
|
|
|
|
|
|
|
R/E Construction — Residential |
|
|
130,842 |
|
|
|
122,382 |
|
|
|
120,363 |
|
|
|
123,302 |
|
|
|
148,825 |
|
R/E Construction — Commercial |
|
|
202,482 |
|
|
|
213,833 |
|
|
|
224,323 |
|
|
|
229,933 |
|
|
|
215,032 |
|
Total real estate construction loans |
|
|
333,324 |
|
|
|
336,215 |
|
|
|
344,686 |
|
|
|
353,235 |
|
|
|
363,857 |
|
Commercial and industrial |
|
|
1,245,734 |
|
|
|
1,286,995 |
|
|
|
1,259,668 |
|
|
|
1,248,550 |
|
|
|
1,165,990 |
|
PPP |
|
|
42,467 |
|
|
|
63,897 |
|
|
|
95,765 |
|
|
|
95,434 |
|
|
|
70,234 |
|
Consumer and others |
|
|
118 |
|
|
|
6 |
|
|
|
143 |
|
|
|
155 |
|
|
|
39 |
|
Gross loans |
|
|
4,424,992 |
|
|
|
4,321,529 |
|
|
|
4,278,403 |
|
|
|
4,164,241 |
|
|
|
4,035,394 |
|
Allowance for credit losses on loans |
|
(59,969 |
) |
|
|
(61,135 |
) |
|
|
(63,635 |
) |
|
|
(64,883 |
) |
|
|
(63,426 |
) |
Net deferred loan fees |
|
(6,316 |
) |
|
|
(5,498 |
) |
|
|
(5,329 |
) |
|
|
(4,872 |
) |
|
|
(4,574 |
) |
Net loans |
|
$ |
4,358,707 |
|
|
$ |
4,254,896 |
|
|
$ |
4,209,439 |
|
|
$ |
4,094,486 |
|
|
$ |
3,967,394 |
|
|
|
|
|
|
|
|
|
|
|
|
Investment in affordable housing partnerships |
|
59,018 |
|
|
|
53,399 |
|
|
|
55,452 |
|
|
|
59,824 |
|
|
|
62,521 |
|
Federal Home Loan Bank stock, at cost |
|
15,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
Other assets |
|
95,709 |
|
|
|
97,261 |
|
|
|
105,334 |
|
|
|
100,894 |
|
|
|
93,011 |
|
Total assets |
|
$ |
6,044,917 |
|
|
$ |
5,979,840 |
|
|
$ |
5,575,908 |
|
|
$ |
5,448,004 |
|
|
$ |
5,143,641 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Demand |
|
$ |
1,305,691 |
|
|
$ |
1,349,114 |
|
|
$ |
1,063,472 |
|
|
$ |
1,026,260 |
|
|
$ |
938,911 |
|
Interest-bearing demand |
|
|
2,032,820 |
|
|
|
1,861,334 |
|
|
|
1,774,668 |
|
|
|
1,751,951 |
|
|
|
1,700,818 |
|
Savings |
|
|
37,839 |
|
|
|
33,417 |
|
|
|
32,560 |
|
|
|
37,551 |
|
|
|
34,702 |
|
Time certificates of $250,000 or more |
|
|
934,444 |
|
|
|
959,826 |
|
|
|
930,976 |
|
|
|
927,043 |
|
|
|
912,546 |
|
Other time certificates |
|
|
914,717 |
|
|
|
990,228 |
|
|
|
994,630 |
|
|
|
979,694 |
|
|
|
855,503 |
|
Total deposits |
|
$ |
5,225,511 |
|
|
$ |
5,193,919 |
|
|
$ |
4,796,306 |
|
|
$ |
4,722,499 |
|
|
$ |
4,442,480 |
|
|
|
|
|
|
|
|
|
|
|
|
Acceptances outstanding |
$ |
10,188 |
|
|
$ |
7,697 |
|
|
$ |
7,797 |
|
|
$ |
9,670 |
|
|
$ |
3,596 |
|
Subordinated debt issuance, net |
|
147,758 |
|
|
|
147,699 |
|
|
|
147,787 |
|
|
|
99,365 |
|
|
|
99,334 |
|
Commitments to fund investment in affordable housing
partnerships |
|
|
22,606 |
|
|
|
17,900 |
|
|
|
19,197 |
|
|
|
27,918 |
|
|
|
30,715 |
|
Other liabilities |
|
55,121 |
|
|
|
50,604 |
|
|
|
45,852 |
|
|
|
49,283 |
|
|
|
42,069 |
|
Total liabilities |
|
$ |
5,461,184 |
|
|
$ |
5,417,819 |
|
|
$ |
5,016,939 |
|
|
$ |
4,908,735 |
|
|
$ |
4,618,194 |
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
|
|
Net common stock, no par value |
$ |
205,855 |
|
|
$ |
203,844 |
|
|
$ |
219,958 |
|
|
$ |
218,593 |
|
|
$ |
217,444 |
|
Retained earnings |
|
372,952 |
|
|
|
352,843 |
|
|
|
332,276 |
|
|
|
316,481 |
|
|
|
300,969 |
|
Accumulated other comprehensive income |
|
4,926 |
|
|
|
5,334 |
|
|
|
6,735 |
|
|
|
4,195 |
|
|
|
7,034 |
|
Total shareholders' equity |
|
$ |
583,733 |
|
|
$ |
562,021 |
|
|
$ |
558,969 |
|
|
$ |
539,269 |
|
|
$ |
525,447 |
|
Total liabilities and shareholders' equity |
|
$ |
6,044,917 |
|
|
$ |
5,979,840 |
|
|
$ |
5,575,908 |
|
|
$ |
5,448,004 |
|
|
$ |
5,143,641 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PREFERRED
BANK |
|
|
|
|
Quarter-To-Date Average Balances, Yield And
Rates |
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
Three months ended September 30, |
|
Three months ended December 31, |
|
|
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
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) |
$ |
4,218,699 |
|
|
51,906 |
4.88 |
% |
|
$ |
4,156,289 |
|
$ |
50,866 |
4.86 |
% |
|
|
3,974,599 |
|
$ |
51,299 |
5.13 |
% |
|
|
Investment securities (3) |
|
470,811 |
|
|
2,228 |
1.88 |
% |
|
|
401,641 |
|
|
2,163 |
2.14 |
% |
|
|
251,284 |
|
|
1,936 |
3.07 |
% |
|
|
Federal funds sold |
|
20,380 |
|
|
18 |
0.36 |
% |
|
|
21,837 |
|
|
20 |
0.36 |
% |
|
|
22,939 |
|
|
30 |
0.51 |
% |
|
|
Other earning assets |
|
1,274,165 |
|
|
752 |
0.23 |
% |
|
|
1,079,911 |
|
|
679 |
0.25 |
% |
|
|
769,209 |
|
|
487 |
0.25 |
% |
|
|
|
Total interest-earning assets |
|
5,984,055 |
|
|
54,904 |
3.64 |
% |
|
|
5,659,678 |
|
|
53,728 |
3.77 |
% |
|
|
5,018,031 |
|
|
53,752 |
4.26 |
% |
|
|
Deferred loan fees, net |
|
(5,530 |
) |
|
|
|
|
(5,176 |
) |
|
|
|
|
(4,162 |
) |
|
|
|
|
Allowance for credit losses on loans |
|
(61,123 |
) |
|
|
|
|
(63,608 |
) |
|
|
|
|
(60,875 |
) |
|
|
|
Noninterest earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
11,933 |
|
|
|
|
|
14,457 |
|
|
|
|
|
8,214 |
|
|
|
|
|
Bank furniture and fixtures |
|
10,810 |
|
|
|
|
|
11,123 |
|
|
|
|
|
11,892 |
|
|
|
|
|
Right of use assets |
|
21,150 |
|
|
|
|
|
21,136 |
|
|
|
|
|
16,272 |
|
|
|
|
|
Other assets |
|
118,624 |
|
|
|
|
|
122,446 |
|
|
|
|
|
120,693 |
|
|
|
|
|
|
Total
assets |
$ |
6,079,919 |
|
|
|
|
$ |
5,760,056 |
|
|
|
|
$ |
5,110,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand and savings |
|
2,030,159 |
|
$ |
1,528 |
0.30 |
% |
|
|
1,824,190 |
|
$ |
1,489 |
0.32 |
% |
|
$ |
1,743,748 |
|
$ |
1,520 |
0.35 |
% |
|
|
|
TCD $250K or
more |
|
942,201 |
|
|
1,151 |
0.48 |
% |
|
|
964,656 |
|
|
1,542 |
0.63 |
% |
|
|
923,079 |
|
|
2,298 |
0.99 |
% |
|
|
|
Other time
certificates |
|
972,916 |
|
|
1,370 |
0.56 |
% |
|
|
994,858 |
|
|
1,503 |
0.60 |
% |
|
|
841,449 |
|
|
2,236 |
1.06 |
% |
|
|
|
Total
interest-bearing deposits |
|
3,945,276 |
|
|
4,049 |
0.41 |
% |
|
|
3,783,704 |
|
|
4,534 |
0.48 |
% |
|
|
3,508,276 |
|
|
6,054 |
0.69 |
% |
|
Short-term borrowings |
|
3 |
|
|
0 |
0.22 |
% |
|
|
- |
|
|
- |
0.00 |
% |
|
|
3 |
|
|
0 |
0.20 |
% |
|
Subordinated debt, net |
|
147,724 |
|
|
1,325 |
3.56 |
% |
|
|
147,671 |
|
|
1,324 |
3.56 |
% |
|
|
99,316 |
|
|
1,532 |
6.14 |
% |
|
|
|
Total
interest-bearing liabilities |
|
4,093,003 |
|
|
5,374 |
0.52 |
% |
|
|
3,931,375 |
|
|
5,858 |
0.59 |
% |
|
|
3,607,595 |
|
|
7,586 |
0.84 |
% |
|
Non-interest bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
1,332,232 |
|
|
|
|
|
1,187,903 |
|
|
|
|
|
918,050 |
|
|
|
|
|
Lease Liability |
|
22,298 |
|
|
|
|
|
22,747 |
|
|
|
|
|
18,936 |
|
|
|
|
|
Other liabilities |
|
55,924 |
|
|
|
|
|
48,407 |
|
|
|
|
|
46,917 |
|
|
|
|
|
|
Total
liabilities |
|
5,503,457 |
|
|
|
|
|
5,190,432 |
|
|
|
|
|
4,591,498 |
|
|
|
|
Shareholders’ equity |
|
576,462 |
|
|
|
|
|
569,624 |
|
|
|
|
|
518,567 |
|
|
|
|
|
|
Total
liabilities and shareholders’ equity |
$ |
6,079,919 |
|
|
|
|
$ |
5,760,056 |
|
|
|
|
$ |
5,110,065 |
|
|
|
|
Net interest income |
|
$ |
49,530 |
|
|
|
$ |
47,870 |
|
|
|
$ |
46,166 |
|
|
Net interest spread |
|
|
3.12 |
% |
|
|
|
3.18 |
% |
|
|
|
3.42 |
% |
|
Net interest margin |
|
|
3.28 |
% |
|
|
|
3.36 |
% |
|
|
|
3.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing demand deposits |
$ |
1,332,232 |
|
|
|
|
$ |
1,187,903 |
|
|
|
|
$ |
918,050 |
|
|
|
|
|
Interest bearing deposits |
|
3,945,276 |
|
|
4,049 |
0.41 |
% |
|
|
3,783,704 |
|
|
4,534 |
0.48 |
% |
|
|
3,508,276 |
|
|
6,054 |
0.69 |
% |
|
|
|
Total
Deposits |
$ |
5,277,508 |
|
$ |
4,049 |
0.30 |
% |
|
$ |
4,971,607 |
|
$ |
4,534 |
0.36 |
% |
|
$ |
4,426,326 |
|
$ |
6,054 |
0.54 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes non-accrual loans and loans held for sale |
|
|
|
|
|
|
|
|
|
|
|
(2) |
Net loan fee income of
$1.1 million, $823,000 and $1.1 million for the quarter ended
December 31, 2021, September 30, 2021 and December 31, 2020,
respectively, are included in the yield computations |
|
(3) |
Yields on securities have been adjusted to a tax-equivalent
basis |
|
|
|
|
|
|
|
|
|
|
PREFERRED
BANK |
Year-To-Date
Average Balances, Yield And Rates |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, |
|
|
|
|
2021 |
|
2020 |
|
|
|
|
|
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) |
$ |
4,111,596 |
|
$ |
200,537 |
4.88 |
% |
|
$ |
3,892,811 |
|
$ |
203,093 |
5.22 |
% |
|
Investment securities (3) |
|
304,865 |
|
|
8,333 |
2.73 |
% |
|
|
246,715 |
|
|
8,130 |
3.30 |
% |
|
Federal funds sold |
|
21,251 |
|
|
81 |
0.38 |
% |
|
|
25,301 |
|
|
215 |
0.85 |
% |
|
Other earning assets |
|
939,853 |
|
|
2,520 |
0.27 |
% |
|
|
663,618 |
|
|
3,223 |
0.49 |
% |
|
|
Total interest-earning assets |
|
5,377,565 |
|
|
211,471 |
3.93 |
% |
|
|
4,828,445 |
|
|
214,661 |
4.45 |
% |
|
Deferred loan fees, net |
|
(4,818 |
) |
|
|
|
|
(3,788 |
) |
|
|
|
Allowance for credit losses on loans |
|
(63,967 |
) |
|
|
|
|
(51,971 |
) |
|
|
Noninterest earning assets: |
|
|
|
|
|
|
|
|
Cash and due from banks |
|
11,683 |
|
|
|
|
|
7,545 |
|
|
|
|
Bank furniture and fixtures |
|
11,452 |
|
|
|
|
|
12,002 |
|
|
|
|
Right of use assets |
|
19,255 |
|
|
|
|
|
16,648 |
|
|
|
|
Other assets |
|
126,819 |
|
|
|
|
|
118,006 |
|
|
|
|
|
Total
assets |
$ |
5,477,989 |
|
|
|
|
$ |
4,926,887 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
Interest-bearing demand/ savings |
|
1,782,618 |
|
$ |
6,021 |
0.34 |
% |
|
|
1,631,487 |
|
$ |
7,833 |
0.48 |
% |
|
|
TCD $250K or
more |
|
936,825 |
|
|
6,299 |
0.67 |
% |
|
|
956,269 |
|
|
13,767 |
1.44 |
% |
|
|
Other time
certificates |
|
954,758 |
|
|
6,513 |
0.68 |
% |
|
|
826,289 |
|
|
12,384 |
1.50 |
% |
|
|
Total
interest-bearing deposits |
|
3,674,201 |
|
|
18,833 |
0.51 |
% |
|
|
3,414,045 |
|
|
33,984 |
1.00 |
% |
Subordinated debt, net |
|
119,581 |
|
|
6,325 |
5.29 |
% |
|
|
99,269 |
|
|
6,124 |
6.17 |
% |
|
|
Total
interest-bearing liabilities |
|
3,793,782 |
|
|
25,158 |
0.66 |
% |
|
|
3,513,315 |
|
|
40,108 |
1.14 |
% |
Non-interest bearing liabilities: |
|
|
|
|
|
|
|
|
Demand deposits |
|
1,054,946 |
|
|
|
|
|
853,289 |
|
|
|
|
Lease Liability |
|
21,280 |
|
|
|
|
|
19,620 |
|
|
|
|
Other liabilities |
|
54,044 |
|
|
|
|
|
44,499 |
|
|
|
|
|
Total
liabilities |
|
4,924,052 |
|
|
|
|
|
4,430,723 |
|
|
|
Shareholders’ equity |
|
553,937 |
|
|
|
|
|
496,164 |
|
|
|
|
|
Total
liabilities and shareholders’ equity |
$ |
5,477,989 |
|
|
|
|
$ |
4,926,887 |
|
|
|
Net interest income |
|
$ |
186,313 |
|
|
|
$ |
174,553 |
|
Net interest spread |
|
|
3.27 |
% |
|
|
|
3.31 |
% |
Net interest margin |
|
|
3.46 |
% |
|
|
|
3.62 |
% |
|
|
|
|
|
|
|
|
|
|
Cost of Deposits: |
|
|
|
|
|
|
|
|
Noninterest bearing demand deposits |
$ |
1,054,946 |
|
|
|
|
$ |
853,289 |
|
|
|
|
Interest bearing deposits |
|
3,674,201 |
|
|
18,833 |
0.51 |
% |
|
|
3,414,045 |
|
|
33,984 |
1.00 |
% |
|
|
Total
Deposits |
$ |
4,729,147 |
|
$ |
18,833 |
0.40 |
% |
|
$ |
4,267,334 |
|
$ |
33,984 |
0.80 |
% |
|
|
|
|
|
|
|
|
|
|
(1) |
Includes non-accrual loans and loans held for sale |
|
|
|
|
|
|
|
(2) |
Net loan fee income of
$3.1 million and $3.0 million for the year ended December 31, 2021
and 2020, respectively, are included in the yield computations |
(3) |
Yields on securities have been adjusted to a tax-equivalent
basis |
|
|
|
|
|
|
Preferred
Bank |
Loan and
Credit Quality Information |
|
|
|
|
|
Allowance For Credit Losses History |
|
|
Year Ended |
|
Year Ended |
|
|
December 31, 2021 |
|
December 31, 2020 |
|
|
|
|
|
(Dollars in
000's) |
Allowance For Credit Losses |
|
|
|
|
Balance at Beginning of Period |
|
$ |
63,426 |
|
|
$ |
34,830 |
|
Charge-Offs |
|
|
|
|
Commercial & Industrial |
|
|
1,697 |
|
|
|
1,661 |
|
Mini-perm Real Estate |
|
|
817 |
|
|
|
1,900 |
|
Others |
|
|
- |
|
|
|
- |
|
Total Charge-Offs |
|
|
2,514 |
|
|
|
3,561 |
|
|
|
|
|
|
Recoveries |
|
|
|
|
Commercial & Industrial |
|
|
57 |
|
|
|
- |
|
Construction - Commercial |
|
|
- |
|
|
|
193 |
|
Total Recoveries |
|
|
57 |
|
|
|
193 |
|
|
|
|
|
|
Net Charge-Offs |
|
|
2,457 |
|
|
|
3,368 |
|
(Reversal of) Provision for Credit Losses: |
|
|
|
|
CECL Cumulative Effect Adjustment |
|
|
- |
|
|
|
8,000 |
|
Current (Reversal) Provision |
|
|
(1,000 |
) |
|
|
21,800 |
|
Balance at
End of Period |
|
$ |
59,969 |
|
|
$ |
61,262 |
|
Average
Loans Held for Investment |
|
$ |
4,110,835 |
|
|
$ |
3,864,667 |
|
Loans Held
for Investment at End of Period |
|
$ |
4,424,992 |
|
|
$ |
3,949,721 |
|
Net
Charge-Offs (Recoveries) to Average Loans |
|
|
0.06 |
% |
|
|
0.12 |
% |
Allowances
for Credit Losses to Loans at End of Period |
|
|
1.36 |
% |
|
|
1.55 |
% |
|
|
|
|
|
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 |
Preferred Bank (NASDAQ:PFBC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Preferred Bank (NASDAQ:PFBC)
Historical Stock Chart
From Sep 2023 to Sep 2024