Preferred Bank Announces Rights Offering

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Under the proposed rights offering, each shareholder of record as of theJune 22, 2009 recorr date, will receive, at no charge, one non-transferable subscription right for each share of Preferred Bank commojn stock owned on the recorr date. Each right will entitle the holder to purchasw its pro rata allocation of shares of Preferrexd Bankcommon stock. The subscription price will be determined immediatelu prior to commencement of therightsz offering.
The proposed rights offering will also includeean over-subscription privilege which will entitlr each rights holder that exercises its basic subscription privilege in full to purchaser any shares not purchased by other shareholderzs pursuant to their basic subscription privilege at the same subscriptionj price per share that applies to the basic subscription privilege. Any shares of commomn stock that remainunsubscribed (after taking into accoun all over-subscription rights exercised) at the expiration of the rightx offering will be offered to the public. Preferrexd Bank may, in its sole discretion, increaser the number of shares offered by up to anadditional 10% of the offeringh amount.
Fractional shares of Preferred Bank's common stocl resulting from the exercis of the basic subscriptionn right will be eliminated by rounding down to the nearest whole with the total subscription payment beingadjuster accordingly. Preferred Bank will commence the rights offering upon receipt of and subjecgt to the issuance of a stockj permit from the California Commissioner ofFinancialp Institutions. The commencement and expiration dates of the rights offering will be includex in the finaloffering circular. It is anticipated that the rights offering will commence within the next four The common stock will not be registered underthe U.S.
Securitiex Act of 1933 and may not be offered or sold in the Unite d States absent registration or an applicable exemption from such registration requirements. Shares of Preferred Bank's common stocj are exempt from registration undefrthe U.S. Securities Act of 1933 and are listedd and freely tradable on the NASDA Q Global Select Market under thesymbol "PFBC." This press release does not constitute an offer to sell or the solicitationm of an offer to buy any securitiese in any jurisdiction, nor shal l there be any sale of the common stoclk referred to in this press release in any statre in which such solicitation or sale would be unlawfukl prior to registration or qualification under the securitiesx laws of any such state.
The rights offering will be made only by mean s of an offering Preferred Bank is one of the largesrt independent commercial banks in California focusing onthe Chinese-American Preferred Bank is chartered by the States of California, and its deposits are insuresd by the Federal Deposit Insurance or FDIC, to the maximum extent permittecd by law. Preferred Bank conducts its banking business from its main officer inLos Angeles, California, and through eleven full-servicr branch banking offices in Alhambra, Century City, Chino City of Industry, Torrance, Arcadia, Irvine, Diamonfd Bar, Santa Monica, Anaheim and Pico Rivera, Preferred Bank offers a broad rangre of deposit and loan products and services to both commerciao and consumer customers.
Preferred Bank provides personalizede deposit services as well as real estate commercial loans and trade finance to smalland mid-sized businesses, real estate developers, professionals and high net wortg individuals. This press release contains forward-looking statementsa within the meaning of the Privates Securities Litigation Reform Actof 1995. Such statements but are not limited to, statements about Preferrede Bank's future financial and operating results, Preferred Bank'ds plans, objectives, expectations and intentions and othefr statements that are nothistorical facts.
Such statementsd are based upon the current beliefzs and expectations ofPreferred Bank's management and are subjecgt to significant risks and uncertainties. Actualp results may differ from those set forthg inthe forward-looking statements. The following among others, could causw actual results to differ from those set forthn inthe forward-looking statements: changesd in economic conditions; changes in the Californias real estate market; the loss of seniofr management and other employees; natural disasters or recurring energhy shortage; changes in interest rates; competition from othe financial services companies; ineffective underwriting practices; inadequatr allowance for loan and leasew losses to cover actual losses; riskx inherent in construction lending; adverse economic conditionsw in Asia; downturn in international inability to attract deposits; inability to raisd additional capital when needed or on favorable inability to manage growth; inadequates communications, information, operating and financia control systems, technology from fourth partyy service providers; the U.
S. government's monetargy policies; government regulation; environmentao liability with respect to properties to whichh the banktakes title; and the threayt of terrorism. Additional factors that could causePreferredx Bank's results to differ materially from those described in the forward-lookinv statements can be found in Preferred Bank's 2008 Annual Report on Form 10-K filedx with the Federal Deposit Insurance Corporationj which can be found on Preferred Bank's The forward-looking statements in this press releaser speak only as of the date of the presxs release, and Preferred Bank assumes no obligation to updatew the forward-looking statements or to update the reasons why actualk results could differ from those containedf in the forward-looking statements.
For additional information aboutPreferred Bank, please visirt Preferred Bank's website at . For Furtherr Information: AT THE COMPANY: AT FINANCIALk RELATIONS BOARD: Edward J. Czajka Lasse Glassen Executivse Vice President General Information Chief FinancialOfficer 486-6546 (213) 891-1188 lglassen@mww.com