Financial Data and Key Metrics Changes - For Q2 2020, Preferred Bank reported a net income of $15.3 million or $1.03 per share, which was impacted by a $7.5 million loan loss provision [8] - Return on assets was 1.26% and return on equity was 12.65% [9] - Total deposits grew by $264 million and loans increased by $70 million, including $74 million in PPP loans [10] - Net interest margin (NIM) for the quarter was 3.53%, a decrease of 17 basis points from the previous quarter [11] Business Line Data and Key Metrics Changes - The bank experienced a net organic origination of loans of $50 million, with $211 million in new loans and $161 million in payoffs [10] - Loan yield decreased by 47 basis points while deposit cost decreased by 43 basis points [12] - Total modified loans amounted to $467 million, with a slowdown in new modification requests towards the end of the quarter [13] Market Data and Key Metrics Changes - The bank's total assets exceeded $5 billion, providing significant liquidity but negatively impacting ROA and capital ratio [16] - The cost of deposits as of June 30 was down to 74 basis points [34] Company Strategy and Development Direction - The management indicated a focus on maintaining a low efficiency ratio and expects deposit costs to continue declining [16] - The bank is cautious about deposit growth, balancing between paying less interest and managing liquidity [60] - Management is considering staff realignment and operational adjustments in response to changes in customer behavior due to the pandemic [66] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for PPP loan forgiveness, which could positively impact future earnings [45][75] - The bank is closely monitoring economic conditions and expects to build reserves based on ongoing evaluations of the loan portfolio [15][58] - Management noted that the current environment has created challenges but remains hopeful for recovery as the pandemic situation improves [81] Other Important Information - The bank's efficiency ratio is less than 33%, indicating strong operational performance [16] - The bank has a significant portion of its loan portfolio secured by real estate, which is expected to mitigate risks associated with non-accrual loans [21][50] Q&A Session Summary Question: Can you provide details on non-accrual loans? - Management indicated that non-accrual loans are primarily secured by real estate, with ongoing efforts to resolve issues related to delayed sales due to COVID-19 [21] Question: What is the book value of the non-accrual loans? - The book values were reported as $16.8 million, $6.32 million, and $1.13 million for the respective loans [26] Question: What are the expectations for loan payoffs in the coming quarters? - Management expects a reduction in both origination levels and payoffs due to the ongoing pandemic [40] Question: How is the bank managing its bond portfolio? - The bank is cautious with bond purchases, focusing on small opportunities rather than significant investments due to the current market environment [49] Question: What is the mix of hotel exposure in the loan portfolio? - The hotel portfolio is approximately 80% metropolitan hotels and 20% boutique hotels by total value [54] Question: What are the assumptions for CECL regarding GDP and unemployment? - The bank forecasts an unemployment rate of 11% to 12% and a GDP contraction of 5% to 6% [58] Question: How much of the PPP loans are under $150,000? - Approximately 60% to 70% of the PPP loans are under $150,000 [72]

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 ...

Financial Data and Key Metrics Changes - The bank earned $20 million or $1.31 per share for the quarter, showing strong performance compared to previous quarters [8] - Loan production increased over 21% for the quarter, attributed to heavy draw-downs by commercial customers and other fluctuations [8] - Deposits decreased by $43 million, primarily due to significant draw-downs in the last 10 days of June [9] - Net interest margin was reported at 4.07%, with an efficiency ratio of 31.7%, ROA at 1.89%, and ROE at 18.5% [11] Business Line Data and Key Metrics Changes - The growth in commercial and industrial (C&I) loans was driven by new loans to long-time customers and new customers in distribution and financial services [15] - Loan origination yield for the second quarter was approximately 5.9% [25] Market Data and Key Metrics Changes - The bank's deposit balance increased by about $100 million since the quarter end, indicating efforts to rebuild deposits [21] - The bank's current deposit rates are competitive compared to competitors [21] Company Strategy and Development Direction - The bank announced a $30 million capital stock buyback to manage capital more efficiently [12] - The management is focused on continuously developing deposits and maintaining a comfortable loan-to-deposit ratio [23] Management Comments on Operating Environment and Future Outlook - Management expressed uncertainty about predicting C&I loan growth in the third and fourth quarters due to the unpredictable nature of the market [18] - The bank is closely monitoring the impact of trade tariffs on its loan portfolio, with minimal exposure noted [36][38] Other Important Information - The bank implemented ASC 842 lease accounting standard, which may affect occupancy costs in the near term [42] - Legal fees were unusually low this quarter, which is not expected to continue in future quarters [43] Q&A Session Summary Question: What caused the impressive C&I growth this quarter? - The growth came from new loans made to long-time customers and new customers, with some draw-downs being temporary due to emergency needs [15][16] Question: What is the loan origination yield for the second quarter? - The average loan origination yield was about 5.9% [25] Question: How do you see the NIM trending throughout the year? - Rate cuts will reduce revenues, but the bank expects to benefit from lower costs as TCVs mature and are re-priced [30] Question: Are there any sectors the bank is becoming more cautious about? - The bank is reviewing its loan portfolio, especially in relation to trade tariffs, but has minimal exposure to affected loans [36][38]

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 ...

Preferred Bank (NASDAQ:PFBC) Q4 2018 Earnings Conference Call January 18, 2019 2:00 PM ET Company Participants Tony Rossi - Financial Profiles Li Yu - Chairman, CEO & Corporate Secretary Edward Czajka - EVP & CFO Nick Pipeline - EVP & Chief Credit Officer Wellington Chen - President & COO Conference Call Participants Aaron Deer - Sandler O'Neill + Partners Stephen Moss - B. Riley FBR, Inc. Timothy Coffey - FIG Partners Donald Worthington - Raymond James & Associates Operator Good day, and welcome to the Pre ...