Preferred Bank Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013
January 22, 2014 at 05:11 pm
Share
Preferred Bank reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2013. For the quarter, the company reported total interest income of $18,513,000 against $16,010,000 reported last year. Net interest income was $16,401,000 against $14,204,000 reported last year. Net interest income after provision for loan losses was $14,601,000 against $11,904,000 reported last year. Income before provision for income taxes was $9,403,000 against $4,499,000 reported last year. Net income available to common shareholders was $5,834,000 or $0.44 per basic and diluted share compared to $4,852,000 or $0.37 per basic and diluted share a year ago. ROA was 1.33% and ROE was 10.71%. Net interest income before provision for loan and lease losses was increased over 2012 is due primarily to loan growth and the decrease from the prior quarter was mainly due to an increase in interest expense as well as a decrease in investment income.
For the full year, the company reported total interest income of $69,726,000 against $61,542,000 reported last year. Net interest income was $61,997,000 against $53,759,000 reported last year. Net interest income after provision for loan losses was $58,747,000 against $33,959,000 reported last year. Income before provision for income taxes was $31,489,000 against $3,289,000 reported last year. Net income available to common shareholders was $18,998,000 or $1.42 per diluted share compared to $23,549,000 or $1.78 per diluted share a year ago. Results for 2012 were aided by a $20.2 million reversal of the bank's valuation allowance on its deferred tax asset. ROA was 1.18% and ROE was 9.75%. The substantial improvement in pre tax earnings from 2012 to 2013 was due to better performance in nearly all areas of the income statement. Net interest income increased the provision for loan losses decreased and non-interest expense decreased.
Preferred Bank is an independent commercial bank focusing primarily on the California market. The Bank provides a range of financial services. The Bank offers a 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. The Bank conducts its banking business from its main office in Los Angeles, California, and through 11 full-service branch banking offices in California (Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine, Diamond Bar, Pico Rivera, Tarzana, and San Francisco) and one branch in Flushing, New York. In addition, the Bank operates a loan production office in the Houston, Texas suburb of Sugar Land. Its business activities come from the mainstream markets of Southern and Northern California.