Financial Data and Key Metrics Changes - Preferred Bank reported a record income of $21.2 million or $1.42 per share for Q1 2021, compared to the previous quarter, which had 92 days instead of 90 days in the current quarter [8] - The bank experienced strong deposit growth of over 25% on an annualized basis [9] - Loan growth for the first quarter was $104 million, representing a 10.4% annualized increase [11] Business Line Data and Key Metrics Changes - The bank added a team of four relationship officers in Houston and five in California to meet increased loan demand [12] - The total deferred COVID-19 related loans decreased to $25.8 million, indicating stability in the credit matrix [13] Market Data and Key Metrics Changes - The bank's operating expenses were slightly higher due to quarterly specific payroll taxes, but overall expenses remained consistent with previous quarters [13] - The bank's loan portfolio is 82% floating rate, with over 99% of floating rate loans having floors [33] Company Strategy and Development Direction - The management is focused on becoming more asset sensitive and is actively preparing the balance sheet for potential interest rate increases [13][33] - The bank aims to maintain reasonable organic growth and is dedicated to expanding its client base through new hires and market penetration [34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic recovery and noted that clients are increasingly optimistic about business expansion [11] - The bank anticipates continued loan growth in the coming quarters, although quantifying this growth remains challenging due to economic variables [34] Other Important Information - The bank's loan loss provision for 2020 was $26 million, with a charge-off of $5.4 million, indicating a stable loan portfolio [68] - The bank is managing liquidity carefully, balancing the need for deposits with the potential for reduced costs [70][71] Q&A Session Summary Question: Margin contribution from PPP - The contribution from PPP was negligible against a $4 billion portfolio, with a rate including fees around 2% [22] Question: Outlook for margin and loan growth - The margin prediction is closely monitored, with a payoff rate 90 basis points higher than new loan rates, indicating potential margin compression [23][24] Question: Update on Houston LPO and loan growth expectations - The Houston LPO has not yet contributed to loan origination, but there are several deals ready to close [44] Question: Loan loss reserve outlook - The bank expects a more stable loan loss reserve this year compared to last year, with potential releases in the future [69] Question: Deposit growth and client activity - Most deposit growth came from existing clients, indicating improved financial conditions among the customer base [54] Question: Time deposits maturing and pricing differential - Approximately $500 million in time deposits will mature at an average rate of 95 basis points, expected to be replaced at around 50 basis points [60]

Preferred Bank (NASDAQ:PFBC) Q4 2020 Earnings Conference Call January 26, 2021 2:00 PM ET Company Participants Jeff Haas - IR, Financial Profiles Li Yu - Chairman & Chief Executive Officer Edward Czajka - Chief Financial Officer Wellington Chen - President & Chief Operating Officer Johnny Hsu - Deputy Chief Operating Officer Conference Call Participants Nick Cucharale - Piper Sandler Timothy Coffey - Janney David Feaster - Raymond James Steve Moss - B. Riley Operator Good day and welcome to the Preferred Ba ...

Financial Data and Key Metrics Changes - Preferred Bank reported a net income of $17.1 million or $1.15 per share for Q3 2020, showing improvement compared to the previous two quarters [7] - The net interest margin for the quarter was 3.54%, a slight decrease of 3 basis points from the previous quarter, but improved to 3.61% when excluding PPP loans [9] - Return on equity was reported at 13.7%, reflecting the bank's efforts to restructure and reposition its loan portfolio [12] Business Line Data and Key Metrics Changes - Total deposits grew by 1.5% or $64 million, while loans declined by $14 million due to reduced deal flow in key markets [10] - The bank's loan-loss provision for the quarter was $9 million, with total reserves to loans standing at 1.58% [10] Market Data and Key Metrics Changes - The bank experienced a 53% reduction in loans receiving modifications under the CARES Act, indicating a positive trend in borrower repayment plans [11] - Nonperforming loans were reported at less than 50 basis points as of June 30, with proactive measures taken to charge-off and reserve for potential losses [10] Company Strategy and Development Direction - The management emphasized a shift from being an asset-sensitive bank to a liability-sensitive bank, focusing on reducing deposit costs and controlling overhead [8] - The bank is cautious about new loan opportunities, particularly in sectors like hotels and retail, due to current market uncertainties and pricing challenges [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the bank's ability to maintain profitability despite uncertainties, with a focus on credit management [12][48] - The bank's strategy includes preparing for potential economic challenges while aiming for growth through careful loan management [19][49] Other Important Information - The bank's total capital ratio increased by nearly 80 basis points from the end of the previous year, indicating strong internal capital generation [19] - The bank has submitted applications for PPP loan forgiveness, with expectations of recognizing fees throughout Q4 [73] Q&A Session Summary Question: Impact of capitalized origination costs on operating expenses - Management noted that loan originations were flat quarter-over-quarter, with PPP loan fees contributing to capitalized credit costs [17] Question: Outlook on commercial paydowns and loan balances - Management indicated that commercial paydowns have reduced balances, but net production showed some activity [18] Question: Capital priorities and potential buyback plans - Management stated that current focus is on uncertainties ahead, with no immediate plans for stock buybacks [19] Question: Tax rate expectations for future quarters - The tax rate decreased in Q3 due to a true-up of 2019 tax returns, with expectations for a similar rate in Q4 [20] Question: Details on charge-offs during the quarter - Management provided insights on charge-offs related to larger loans and the ongoing collection process [22][23] Question: Loan demand and borrower hesitance - Management acknowledged that while there is capital on the sidelines, borrowers are cautious about new investments [46] Question: Trends in loan deferrals and future projections - Management confirmed that deferrals have decreased significantly, with expectations of minimal amounts by year-end [40] Question: Update on classified and criticized loans - Classified loans were reported at $59 million, with criticized loans totaling approximately $139 million [70] Question: Applications for PPP forgiveness and fee recognition - Management confirmed that applications for PPP forgiveness have been submitted, with fees being amortized over the life of the loans [74][75]

Preferred Bank (NASDAQ:PFBC) Q2 2020 Results Conference Call July 22, 2020 2:00 PM ET Company Participants Jeff Haas - IR, Financial Profiles Li Yu - Chairman and CEO Wellington Chen - President and COO Edward Czajka - CFO Nick Pi - Chief Credit Officer Johnny Hsu - Deputy COO Conference Call Participants Timothy Coffey - Janney Nick Cucharale - Piper Sandler Steve Moss - B. Riley FBR David Feaster - Raymond James Gary Tenner - D.A. Davidson Operator Good day, everyone and welcome to the Preferred BankÂ's S ...

PREFERED BANK D.A. Davidson & Co. 22nd Annual Financial Institutions Virtual Conference Forward Looking Statements During the course of this presentation, management may make statements regarding events or future financial performance of the Bank. These statements may include comments with respect to our objectives and strategies, and the results of our operations and our business. However, by their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities, both ...

Preferred Bank (NASDAQ:PFBC) Q1 2020 Earnings Conference Call April 23, 2020 2:00 PM ET Company Participants Tony Rossi - IR Li Yu - Chairman & CEO Nick Pi - Chief Credit Officer Edward Czajka - CFO Wellington Chen - President & COO Conference Call Participants David Feaster - Raymond James Steve Moss - B. Riley FBR Gary Tenner - D.A. Davidson Tim Coffey - Janney Operator Good day and welcome to the Preferred Bank First Quarter 2020 Conference Call and Webcast. All participants will be in listen-only mode. ...

Preferred Bank (NASDAQ:PFBC) Q4 2019 Earnings Conference Call January 23, 2020 2:00 PM ET Company Participants Tony Rossi - IR Li Yu - Chairman & CEO Edward Czajka - CFO Wellington Chen - President & COO Nick Pi - Chief Credit Officer Conference Call Participants Steve Moss - B. Riley FBR Aaron Deer - Piper Sandler Gary Tenner - D.A. Davidson Tim Coffey - Janney Operator Good afternoon and welcome to the Preferred Bank Fourth Quarter 2019 Earnings Conference Call and Webcast. All participants will be in lis ...

Preferred Bank (NASDAQ:PFBC) Q3 2019 Earnings Conference Call October 16, 2019 2:00 PM ET Corporate Participants Tony Rossi - Investor Relations Li Yu - Chairman and CEO Edward Czajka - Chief Financial Officer Wellington Chen - President and Chief Operating Officer Nick Pi - Chief Credit Officer Conference Call Participants Aaron Deer - Sandler O'Neill & Partners Steve Moss - B. Riley FBR Gary Tenner - D.A. Davidson Tim Coffey - Janney Tyler Stafford - Stephens Don Worthington - Raymond James Operator Good ...

Preferred Bank (NASDAQ:PFBC) Q2 2019 Results Conference Call July 18, 2019 2:00 PM ET Company Participants Tony Rossi - Investor Relations Li Yu - Chairman and CEO Wellington Chen - President and Chief Operating Officer Edward Czajka - Chief Financial Officer Nick Pi - Chief Credit Officer Conference Call Participants Aaron Deer - Sandler O'Neill Gary Tenner - D.A. Davidson Andrew Terrell - Stephens Don Worthington - Raymond James Operator Good day. And welcome to the Preferred Bank Second Quarter 2019 Conf ...

Preferred Bank (NASDAQ:PFBC) Q1 2019 Results Conference Call April 18, 2019 2:00 PM ET Company Participants Tony Rossi - Financial Profiles Li Yu - Chairman and CEO Wellington Chen - President and Chief Operating Officer Edward Czajka - Chief Financial Officer Nick Pi - Chief Credit Officer Conference Call Participants Tyler Stafford - Stephens Steve Moss - B. Riley FBR Aaron Deer - Sandler O'Neill Gary Tenner - D.A. Davidson Tim Coffey - FIG Partners Don Worthington - Raymond James Operator Hello, and welc ...