Preferred Bank Receives Approval to Issue Additional Shares

LOS ANGELES, Aug. 28 /PRNewswire-FirstCall/ -- Preferred Bank (the "Bank") today announced that it has received approval to issue an additional 2,090,475 shares in connection with its common stock offering. As previously announced, the Bank's $10 million common stock rights offering and concurrent public offering, which commenced on July 24, 2009, has been over-subscribed. Due to the overwhelming interest in this offering, for which the Bank received over $17 million in gross proceeds, the Bank applied to the California Department of Financial Institutions ("DFI") for the issuance of an additional 2,090,475 shares in connection with this offering. In accordance with the receipt of the amended stock permit from the DFI, the Bank has extended the closing date of the offering until September 9, 2009, to allow subscribers to rescind their subscriptions, if they so chose. No new subscriptions are being accepted.

About Preferred Bank

Preferred Bank is one of the largest independent commercial banks in California focusing on the Chinese-American market. Preferred 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. Preferred Bank conducts its banking business from its main office in Los Angeles, California, and through eleven full-service branch banking offices in Alhambra, Century City, Chino Hills, City of Industry, Torrance, Arcadia, Irvine, Diamond Bar, Santa Monica, Anaheim and Pico Rivera, California. Preferred Bank offers a broad range of deposit and loan products and services to both commercial and consumer customers. Preferred 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.

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 Preferred Bank's future financial and operating results, Preferred 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 Preferred 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 Preferred Bank's results to differ materially from those described in the forward-looking statements can be found in Preferred Bank's 2008 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 Preferred 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 Preferred Bank's website at http://www.preferredbank.com/.

For Further Information: AT THE COMPANY: AT FINANCIAL RELATIONS BOARD: Edward J. Czajka Lasse Glassen Executive Vice President General Information Chief Financial Officer [phone] [phone] [e-mail]

Preferred Bank

CONTACT: Edward J. Czajka, Executive Vice President, Chief Financial
Officer of Preferred Bank, [phone]; or Lasse Glassen, General
Information, [phone], [e-mail], for Preferred Bank

Web Site: http://www.preferredbank.com/