Real Estate Central

LOS ANGELES, May 20 /PRNewswire-FirstCall/ — Preferred Bank (Nasdaq:
PFBC). In response to inaccurately published information last week
regarding Preferred Bank’s real estate loan exposure in the Inland Empire
area of Southern California, the following is a summary of real estate
loans by type in the Inland Empire area as of April 30, 2008:



Construction Loans
Residential $17,707,000
Commercial 5,631,000
Total

3,338,000

Commercial Real Estate $45,729,000

Of the $17,707,000 in residential construction loans in the Inland
Empire, $15,857,000 represents one loan that was classified as non-accrual
as of March 31, 2008. This loan is reserved for down to the recent
appraised value less selling costs.

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 ten other full-service branch banking
offices in Alhambra, Century City, Chino Hills, City of Industry, Torrance,
Arcadia, Irvine, Diamond Bar, Santa Monica and Valencia, 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 2007
Annual Report on Form 10-K filed with the Federal Deposit Insurance
Corporation. 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 http://www.preferredbank.com.



For Further Information:

AT THE COMPANY: AT FINANCIAL RELATIONS BOARD:
Edward J. Czajka Lasse Glassen
Chief Financial Officer General Information
(213) 891-6829 (213) 486-6546
lglassen@frbir.com


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Source: Real Estate Newswire