LOS ANGELES, Aug. 11 /EMWNews/ -- Preferred Bank (Nasdaq:

PFBC), an independent commercial bank focusing on the Chinese-American and

diversified Southern California mainstream market, today reported a

revision to its net income for the quarter ended June 30, 2008. Revised net

income totaled $18,000 for the second quarter of 2008, a 99.7% decrease

from net income of $7.0 million for the same period in 2007 while diluted

earnings per share decreased 100.0% to $0.00 for the quarter compared to

$0.65 for the second quarter of 2007.



    The revision was due to the recording of an income tax expense of

$430,000 for a valuation allowance against the net deferred tax asset

related to the Bank's $1.9 million charge for other-than-temporary

impairment ("OTTI") on its FHLMC preferred stock. This OTTI charge was a

capital item in nature. During the process of preparing our Quarterly

Report on Form 10-Q, the Bank determined that it was necessary to establish

a valuation allowance against a portion of the net deferred tax asset

related to the impairment charge. The valuation allowance was established

to reduce the net deferred tax asset to the amount that management believes

is more likely than not to be realized as of June 30, 2008.



    Preferred bank has filed its Quarterly Report on Form 10-Q with the

Federal Deposit Insurance Corporation today and this report may also be

found on its website at http://www.preferredbank.com.

    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

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 2007

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 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               (213) 486-6546

                                  [email protected]