Preferred Bank Reports Borrower Default
May 02 2018 - 9:33AM
Preferred Bank (NASDAQ:PFBC), (the”Bank”) an
independent commercial bank, today reported that after substantial
efforts to resolve a loan relationship, it had foreclosed on two
(2) luxury 5-unit apartment properties in New York. The properties
were new upon origination and the loans were originated in June of
2017 and July of 2017, respectively and are located on the Upper
Eastside of Manahattan, below are the details:
General Location |
Current Loan Balance |
Appraised Value at Origination |
Loan-to-Value |
E. 67th
Street, NY |
$19,855,536 |
$31,600,000 |
62.8 |
% |
E. 64th
Street, NY |
$21,882,702 |
$32,000,000 |
68.4 |
% |
|
|
|
|
In addition to those, the Bank may file foreclosure actions on
two (2) luxury single family residential properties underlying
loans made to the same individual as the managing member of
separate LLC’s. These loans were originated in March of 2017, below
are the details:
General Location |
Current Loan Balance |
Appraised Value at Origination |
Loan-to-Value |
Southhampton, NY |
$2,999,000 |
$5,000,000 |
60.0 |
% |
Purchase, NY |
$2,600,000 |
$4,000,000 |
65.0 |
% |
The Bank is currently working with a number of parties in order
to bring this defaulted relationship to a satisfactory conclusion.
Because of the current values of the underlying properties and the
loan amounts outstanding, the Bank does not expect a material
impact to its results of operations or financial condition.
About Preferred Bank
Preferred Bank is one of the larger independent commercial banks
in California. 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 eleven full-service branch banking
offices in the California cities of Alhambra, Century City,
City of Industry, Torrance, Arcadia, Irvine, Diamond Bar, Pico
Rivera, Tarzana and San Francisco (2), and one office in Flushing
New York. 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. Although originally
founded as a Chinese-American Bank, Preferred Bank now derives most
of its customers from the diversified mainstream market but does
continue to benefit from the significant migration to California of
ethnic Chinese from China and other areas of East Asia.
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 2016 Annual Report on Form
10-K filed with the Federal Deposit Insurance Corporation 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 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 www.preferredbank.com.
AT THE
COMPANY:
Edward J. Czajka
Executive Vice President
Chief Financial Officer
(213) 891-1188
AT FINANCIAL PROFILES:Kristen PapkeGeneral
Information(425) 615-0051kpapke@finprofiles.com
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