PFBC Preferred Bank

LOS ANGELES, Jan. 25 /PRNewswire-FirstCall/ -- Preferred Bank (NASDAQ:PFBC), today announced that its Board of Directors has approved a three-for-two stock split to be paid in the form of a stock dividend. Each stockholder of record at the close of business on February 5, 2007 will receive one additional share of common stock for every two shares of common stock that they owned as of such date. The additional shares will be distributed on February 20, 2007. A stockholder who would otherwise be entitled to receive a fractional share of common stock will receive in lieu thereof, cash in a proportional amount based on the closing price of the common stock on the Nasdaq Stock Exchange on the record date. After giving effect to the stock split, there will be approximately 10,274,706 shares of common stock outstanding. Mr. Li Yu, Chairman and President of Preferred Bank commented, "The Board of Directors' decision to declare a three-for-two stock split was based on the Bank's strong financial performance and the increase in the market price for our common stock. The stock split will reduce the price per share and is intended to expand our stockholder base and increase the number of shares available for trading." Preferred Bank also today declared a regular quarterly cash dividend of $0.17 per share of common stock on a post-split basis. The cash dividend is payable February 20, 2007 to stockholders of record at the close of business on February 5, 2007. After giving effect to the three-for-two stock split, the amount of this cash dividend represents a 27.5% increase from the previous dividend. 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 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 third 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 2005 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) 891-1188 (310) 854-8313 DATASOURCE: Preferred Bank CONTACT: Edward J. Czajka, Chief Financial Officer of Preferred Bank, +1-213-891-1188; or General Information, Lasse Glassen of Financial Relations Board, +1-310-854-8313, , for Preferred Bank Web site: http://www.preferredbank.com/

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