Preferred Bank Announces Effective Date of Reverse Stock Split

LOS ANGELES, June 17, 2011 /PRNewswire/ -- Preferred Bank (NASDAQ: PFBC), an independent commercial bank focusing on the Chinese-American and diversified Southern California mainstream market, today announced that it had filed an amendment to its Amended and Restated Articles of Incorporation with the Secretary of State of the State of California to effect the previously announced one-for-five reverse stock split. The reverse stock split will take effect at the opening of the NASDAQ Global Select Market on June 20, 2011 and will be effective with respect to the shareholders of record at the close of business on June 17, 2011 (the "Effective Time"). At the Effective Time, every five shares of Preferred Bank's pre-split common shares will automatically be consolidated into one post-split share.

It is expected that Preferred Bank's shares of common stock will continue to trade on the NASDAQ Global Select Market under the symbol "PFBC" with the letter "D" added to the end of the ticker symbol for a period of 20 trading days to indicate that the reverse split has occurred. Following the 20-day period, the ticker symbol will revert back to "PFBC." In addition, Preferred Bank's shares of common stock will also trade under a new CUSIP number effective on June 20, 2011.  

Shareholders as of the Effective Time will receive a letter of transmittal from Preferred Bank's transfer agent with instructions regarding the surrender and exchange of common stock certificates. Preferred Bank will not issue any fractional shares as a result of the reverse split.  Instead, Preferred Bank shareholders will receive a cash payment in an amount equal to such fractional share.

Additional information regarding the reverse split can be found in Preferred Bank's definitive proxy statement which was filed with the Federal Deposit Insurance Corporation on April 28, 2011, and which can be found on Preferred Bank's website at www.preferredbank.com under "Company Filings – Investor Relations."  

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 nine full-service branch banking offices in Alhambra, Century City,  City of Industry, Torrance, Arcadia, Irvine, Diamond Bar, 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 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 Preferred 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 2010 Annual Report on Form 10-K filed with the Federal Deposit Insurance Corporation ("FDIC") 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. 300268794.2

SOURCE Preferred Bank

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