Preferred Bank Reports Record Quarterly Earnings Again
LOS ANGELES, Jan. 18, 2023 (GLOBE NEWSWIRE) — Preferred Bank (NASDAQ: PFBC), one of the larger independent California banks, today reported results for the quarter ended December 31, 2022. Preferred Bank (“the Bank”) reported net income of $39.6 million or $2.71 per diluted share for the fourth quarter of 2022. This represents an increase of $13.1 million or 49.7% over the same quarter last year and also an impressive $4.4 million or 12.4% increase over the third quarter of 2022. The primary driver of the increase over both comparable periods was net interest income which increased by 50.0% over the same period last year and increased by 11.0% over the third quarter of 2022. Net income for the year ended December 31, 2022 was $128.8 million or $8.70 per diluted share compared to $95.2 million or $6.41 per diluted share for the year ended December 31, 2021. This represents an increase in net income of $33.6 million or 35.3% and an increase in diluted earnings per share of 35.7%. The extraordinary interest rate hikes undertaken by the Federal Open Market Committee (“FOMC”) to fend off inflation during the course of 2022 has led to a significant increase in interest income as most of the Bank’s loans are tied to the Prime rate.
Fourth quarter 2022 highlights:
- Return on average assets (“ROA”) of 2.48%
- Return on beginning equity (“ROBE”) of 26.58%
- Pre-provision, pre-tax (“PPPT”) ROBE of 38.26% 1.
- Net interest margin increased to 4.75%
- Efficiency ratio of 25.97%
- Linked quarter deposit growth of 1.9%
- Linked quarter loan growth of 1.3%
______________________________
1 This is a non-GAAP measure and links to the reconciliation on page 4.
Full Year 2022 highlights:
- Return on average assets (“ROA”) of 2.08%
- Return on beginning equity (“ROBE”) of 21.96%
- Efficiency ratio of 27.48%
- Total loan growth of $650 million or 14.7%
- Total deposit growth of $331 million or 6.3%
Li Yu, Chairman and CEO, commented, “I am pleased to report another record quarter of earnings. Net income for the fourth quarter of 2022 was $39.6 million or $2.71 per diluted share with return on beginning equity reaching 26.6%.
“Growth in interest income continues to outpace the rise in deposit interest costs. The Bank’s net interest margin was 4.75% for the fourth quarter, up from 4.37% recorded in the previous quarter. The cost of deposits accelerated during the quarter, as deposit rates catch up to market rates. We expect this trend to continue as financial institutions are increasing their deposit rates frequently. Another reason for the increase in overall deposit costs is the shifting of funds from noninterest bearing accounts to interest bearing products as companies and individuals become more savvy with their cash balances.
“Sequentially, total loans increased by $64 million, or 1.3% for the quarter while total deposits grew by $101 million or 1.9%. Loan demand has moderated since mid-2022 and this trend is expected to continue as investors and operators become more cautious in the higher interest rate environment.
“Deposit growth has also slowed significantly. We expect that deposit growth will be a challenge, especially at reasonable costs, throughout 2023.
“The Bank’s liquidity position continues to be very strong as deposit growth outpaced loan growth for the year. Also, capital levels remain high. The Bank’s tangible book value per share increased by 6.1% for 2022, which was rare for any bank this year because higher interest rates lead to higher negative accumulated other comprehensive income (“AOCI”) marks on investment portfolios within bank’s capital. Preferred Bank’s earning power was more than enough to offset this headwind, even after dividends.
“Benefitted by the increase in net interest income, the efficiency ratio continues to be one of the best in the industry, coming in at 26.0% for the quarter. In 2023, total expenses are expected to increase at a rate above the historical pace due to wage inflation as well as the upcoming increase in FDIC premium assessments. Regardless, we expect our efficiency ratio will remain among the best in the Country.
“Our attention is always focused on credit quality, which appears stable. Nonperforming assets and nonperforming loans were $27.5 million and $5.5 million respectively, as compared to $32.3 million and $6.2 million as of September 30, 2022. More importantly, loans 30-89 days past due, a leading indicator of credit quality trends was practically nil as of December 31, 2022. Over the past few quarters, the Bank’s total allowance for credit loss (“ACL”) coverage has increased and now stands at 1.35% of total loans.
Preferred Bank was 2nd among all California publicly traded banks over $2 billion in assets with a return on tangible common shareholders’ equity (“ROTCE”) of 23.6% for the third quarter of 2022. Our ROTCE actually expanded in the fourth quarter to 25.8%. We are very pleased with our earnings capacity as it is often overlooked as one of the best defenses for a recessionary economy. All of our operating metrics remain stable heading into 2023 as we approach the new year with prudence.”
Results of Operations
Net Interest Income and Net Interest Margin. Net interest income before provision for credit losses was $74.1 million for the fourth quarter of 2022. This was a significant increase from the $49.4 million recorded in the same quarter last year and also up sharply over the $66.8 million posted in the third quarter of 2022. The FOMC rate hikes throughout 2022 drove the Bank’s loan portfolio yield higher, as most of the Bank’s loans are tied to the Prime rate. Interest expense on deposits also rose but the increase in deposit interest costs was well behind that of interest income, leading to continued margin expansion. The taxable equivalent net interest margin rose 38 basis points on a linked quarter basis to 4.75% from 4.37% last quarter. Comparing to the same quarter last year, the margin was up by an astounding 147 basis points over the 3.28% posted this quarter last year.
Noninterest Income. For the fourth quarter of 2022, noninterest income was $2.8 million compared with $2.0 million for the same quarter last year and compared to $2.2 million for the third quarter of 2022. The increase compared to the prior quarter was due to an increase in letter of credit (“LC”) fees of $289,000 and an increase in other income of $105,000 partially offset by gain on the sale of investment securities of $297,000 in the fourth quarter of 2022. In comparison to the same quarter last year, LC fees are up by $526,000 partially offset by the gain on the sales of investment securities of $297,000.
Noninterest Expense. Total noninterest expense was $20.0 million for the fourth quarter of 2022 compared to $17.4 million for the third quarter of 2022 and compared to the $14.8 million recorded in the same period last year. Comparing this quarter to the fourth quarter of last year; personnel expense increased by $2.7 million or 26.0%, other real estate owned (“OREO”) expense was $2.1 million this quarter compared to $0 last year and other expense increased by $1.8 million this quarter. The personnel expense increase was mainly due to new hires, merit increases and an increase in incentive compensation. In comparing to the prior quarter; personnel expense was up by $627,000 or 5.1% from the third quarter of 2022, other expense was up by $191,000 and OREO expense increased by $1.4 million and incurred a loss on sale of OREO of $426,000. During the fourth quarter of 2022, the Bank wrote down the value of its OREO by $1.4 million. For the quarter ended December 31, 2022, the Bank’s efficiency ratio was 26.0%, slightly higher than the 25.2% posted last quarter but easily surpassing the 28.8% posted this quarter last year.
Income Taxes. The Bank recorded a provision for income taxes of $15.4 million for the fourth quarter of 2022. This represents an effective tax rate (“ETR”) of 28.0% and equal to the ETR for the third quarter of 2022 but down slightly from the 29.5% ETR posted in the fourth quarter of 2021. The Bank’s ETR will fluctuate slightly from quarter to quarter within a fairly small range due to the timing of taxable events throughout the year.
Balance Sheet Summary
Total gross loans at December 31, 2022 were $5.07 billion, an increase of $650 million or 14.7% over the total of $4.42 billion as of December 31, 2021. Total deposits increased to $5.56 billion, an increase of $331 million or 6.3% over the $5.23 billion as of December 31, 2021. Total assets ended the year at $6.42 billion, an increase of $376 million or 6.2% over the total of $6.05 billion as of December 31, 2021.
Asset Quality
As of December 31, 2022, nonaccrual loans totaled $5.5 million, down from the $6.2 million reported as of September 30, 2022 and down from the $14.8 million as of the end of 2021. In addition, OREO and repossessed assets totaled $22.0 million as of December 31, 2022, compared to $26.1 million as of September 30, 2022 and zero as of the end of 2021. Total net charge-offs were $0 for the fourth quarter of 2022 as compared to net recoveries of $2.4 million last quarter and compared to net charge-offs of $267,000 in the same quarter of 2021.
Allowance for Credit Losses
The provision for credit losses for the fourth quarter of 2022 was $2.0 million as compared to $2.7 million recorded last quarter and compared to a reversal of $900,000 recorded in the fourth quarter of last year. The Bank’s allowance coverage ratio now stands at 1.35% of total loans (excluding PPP loans).
Capitalization
As of December 31, 2022, the Bank’s leverage ratio was 10.27%, the common equity tier 1 capital ratio was 10.78% and the total capital ratio stood at 14.36%. As of December 31, 2021, the Bank’s leverage ratio was 9.54%, the common equity tier 1 ratio was 11.26% and the total risk-based capital ratio was 15.37%.
| GAAP – Non-GAAP Reconciliation -Fourth Quarter 2022 PPPT ROBE | |||
| Net Income | $ | 39,560 | |
| Add: Provision for credit losses | 2,000 | ||
| Add: Income tax expense | 15,384 | ||
| Pre-provision and pre-tax income | $ | 56,944 | |
| Total equity – 9/30/22 | $ | 590,553 | |
| Pre-provision and pre-tax ROBE | 38.26 | % | |
Conference Call and Webcast
A conference call with simultaneous webcast to discuss Preferred Bank’s fourth quarter 2022 financial results will be held tomorrow, January 19, 2023 at 2:00 p.m. Eastern / 11:00 a.m. Pacific. Interested participants and investors may access the conference call by dialing 844-826-3037 (domestic) or 412-317-5182 (international) and referencing “Preferred Bank.” There will also be a live webcast of the call available at the Investor Relations section of Preferred Bank’s website at www.preferredbank.com. Web participants are encouraged to go to the website at least 15 minutes prior to the start of the call to register, download and install any necessary audio software.
Preferred Bank’s Chairman and Chief Executive Officer Li Yu, President and Chief Operating Officer Wellington Chen, Chief Financial Officer Edward J. Czajka, Chief Credit Officer Nick Pi and Deputy Chief Operating Officer Johnny Hsu will be present to discuss Preferred Bank’s financial results, business highlights and outlook. After the live webcast, a replay will remain available in the Investor Relations section of Preferred Bank’s website. A replay of the call will also be available at 877-344-7529 (domestic) or 412-317-0088 (international) through February 2, 2023; the passcode is 5526852.
About Preferred Bank
Preferred Bank is one of the larger independent commercial banks headquartered 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 Bank conducts its banking business from its main office in Los Angeles, California, and through eleven full-service branch banking offices in California (Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine, Diamond Bar, Pico Rivera, Tarzana and San Francisco (2)) and one branch in Flushing, New York. In addition, the Bank operates a Loan Production Office in the Houston, Texas suburb of Sugar Land. 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 2021 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.
Financial Tables to Follow
| PREFERRED BANK | ||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||
| (unaudited) | ||||||||||||
| (in thousands, except for net income per share and shares) | ||||||||||||
| For the Quarter Ended | ||||||||||||
| December 31, | September 30, | December 31, | ||||||||||
| 2022 | 2022 | 2021 | ||||||||||
| Interest income: | ||||||||||||
| Loans, including fees | $ | 87,159 | $ | 71,192 | $ | 51,906 | ||||||
| Investment securities | 11,028 | 7,111 | 2,867 | |||||||||
| Fed funds sold | 192 | 117 | 18 | |||||||||
| Total interest income | 98,379 | 78,420 | 54,791 | |||||||||
| Interest expense: | ||||||||||||
| Interest-bearing demand | 13,906 | 6,436 | 1,511 | |||||||||
| Savings | 32 | 19 | 17 | |||||||||
| Time certificates | 9,004 | 3,850 | 2,521 | |||||||||
| Subordinated debt | 1,325 | 1,325 | 1,325 | |||||||||
| Total interest expense | 24,267 | 11,630 | 5,374 | |||||||||
| Net interest income | 74,112 | 66,790 | 49,417 | |||||||||
| Provision for (reversal of) credit losses | 2,000 | 2,700 | (900 | ) | ||||||||
| Net interest income after provision for (reversal of) | ||||||||||||
| credit losses | 72,112 | 64,090 | 50,317 | |||||||||
| Noninterest income: | ||||||||||||
| Fees & service charges on deposit accounts | 631 | 703 | 581 | |||||||||
| Letters of credit fee income | 1,245 | 956 | 719 | |||||||||
| BOLI income | 102 | 100 | 99 | |||||||||
| Net gain on called and sale of investment securities | 297 | – | – | |||||||||
| Other income | 533 | 428 | 567 | |||||||||
| Total noninterest income | 2,808 | 2,187 | 1,966 | |||||||||
| Noninterest expense: | ||||||||||||
| Salary and employee benefits | 12,953 | 12,326 | 10,278 | |||||||||
| Net occupancy expense | 1,444 | 1,452 | 1,396 | |||||||||
| Business development and promotion expense | 320 | 214 | 280 | |||||||||
| Professional services | 1,028 | 1,161 | 1,075 | |||||||||
| Office supplies and equipment expense | 460 | 456 | 498 | |||||||||
| Loss on sale of OREO, valuation allowance and related expense | 2,103 | 314 | – | |||||||||
| Other | 1,668 | 1,477 | 1,279 | |||||||||
| Total noninterest expense | 19,976 | 17,400 | 14,806 | |||||||||
| Income before provision for income taxes | 54,944 | 48,877 | 37,477 | |||||||||
| Income tax expense | 15,384 | 13,688 | 11,056 | |||||||||
| Net income | $ | 39,560 | $ | 35,189 | $ | 26,421 | ||||||
| Dividend and earnings allocated to participating securities | – | – | (3 | ) | ||||||||
| Net income available to common shareholders | $ | 39,560 | $ | 35,189 | $ | 26,418 | ||||||
| Income per share available to common shareholders | ||||||||||||
| Basic | $ | 2.76 | $ | 2.44 | $ | 1.80 | ||||||
| Diluted | $ | 2.71 | $ | 2.40 | $ | 1.80 | ||||||
| Weighted-average common shares outstanding | ||||||||||||
| Basic | 14,357,326 | 14,408,235 | 14,677,515 | |||||||||
| Diluted | 14,617,377 | 14,644,452 | 14,677,515 | |||||||||
| Cash dividends per common share | $ | 0.55 | $ | 0.43 | $ | 0.43 | ||||||
| PREFERRED BANK | ||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||
| (unaudited) | ||||||||||||
| (in thousands, except for net income per share and shares) | ||||||||||||
| For the Year Ended | ||||||||||||
| December 31, | December 31, | Change | ||||||||||
| 2022 | 2021 | % | ||||||||||
| Interest income: | ||||||||||||
| Loans, including fees | $ | 269,011 | $ | 200,537 | 34.1 | % | ||||||
| Investment securities | 24,997 | 10,417 | 140.0 | % | ||||||||
| Fed funds sold | 374 | 81 | 361.5 | % | ||||||||
| Total interest income | 294,382 | 211,035 | 39.5 | % | ||||||||
| Interest expense: | ||||||||||||
| Interest-bearing demand | 24,221 | 5,964 | 306.1 | % | ||||||||
| Savings | 91 | 57 | 58.9 | % | ||||||||
| Time certificates | 17,412 | 12,811 | 35.9 | % | ||||||||
| Subordinated debt | 5,300 | 6,325 | -16.2 | % | ||||||||
| Total interest expense | 47,024 | 25,158 | 86.9 | % | ||||||||
| Net interest income | 247,358 | 185,877 | 33.1 | % | ||||||||
| Provision for (reversal of) credit losses | 7,350 | (1,000 | ) | -835.0 | % | |||||||
| Net interest income after provision for (reversal of) credit losses | 240,008 | 186,877 | 28.4 | % | ||||||||
| Noninterest income: | ||||||||||||
| Fees & service charges on deposit accounts | 2,728 | 2,113 | 29.1 | % | ||||||||
| Letters of credit fee income | 4,463 | 3,914 | 14.0 | % | ||||||||
| BOLI income | 401 | 392 | 2.3 | % | ||||||||
| Net gain on called and sale of investment securities | 297 | 41 | 623.6 | % | ||||||||
| Net loss on sale of loans | – | (640 | ) | -100.0 | % | |||||||
| Other income | 1,973 | 1,924 | 2.6 | % | ||||||||
| Total noninterest income | 9,862 | 7,743 | 27.4 | % | ||||||||
| Noninterest expense: | ||||||||||||
| Salary and employee benefits | 48,607 | 42,606 | 14.1 | % | ||||||||
| Net occupancy expense | 5,759 | 5,656 | 1.8 | % | ||||||||
| Business development and promotion expense | 811 | 568 | 42.8 | % | ||||||||
| Professional services | 4,892 | 4,127 | 18.5 | % | ||||||||
| Office supplies and equipment expense | 1,864 | 1,879 | -0.8 | % | ||||||||
| Loss on sale of OREO, valuation allowance and related expense | 2,818 | – | 100.0 | % | ||||||||
| Other | 5,922 | 5,956 | -0.6 | % | ||||||||
| Total noninterest expense | 70,673 | 60,792 | 16.3 | % | ||||||||
| Income before provision for income taxes | 179,197 | 133,828 | 33.9 | % | ||||||||
| Income tax expense | 50,352 | 38,588 | 30.5 | % | ||||||||
| Net income | $ | 128,845 | $ | 95,240 | 35.3 | % | ||||||
| Dividend and earnings allocated to participating securities | $ | (2 | ) | $ | (11 | ) | -77.4 | % | ||||
| Net income available to common shareholders | $ | 128,843 | $ | 95,229 | 35.3 | % | ||||||
| Income per share available to common shareholders | ||||||||||||
| Basic | $ | 8.84 | $ | 6.41 | 37.9 | % | ||||||
| Diluted | $ | 8.70 | $ | 6.41 | 35.7 | % | ||||||
| Weighted-average common shares outstanding | ||||||||||||
| Basic | 14,579,132 | 14,866,000 | -1.9 | % | ||||||||
| Diluted | 14,809,416 | 14,866,000 | -0.4 | % | ||||||||
| Dividends per share | $ | 1.84 | $ | 1.57 | 17.2 | % | ||||||
| PREFERRED BANK | |||||||||
| Condensed Consolidated Statements of Financial Condition | |||||||||
| (unaudited) | |||||||||
| (in thousands) | |||||||||
| December 31, | December 31, | ||||||||
| 2022 | 2021 | ||||||||
| (Unaudited) | (Audited) | ||||||||
| Assets | |||||||||
| Cash and due from banks | $ | 747,526 | $ | 1,030,610 | |||||
| Fed funds sold | 20,000 | 20,000 | |||||||
| Cash and cash equivalents | 767,526 | 1,050,610 | |||||||
| Securities held to maturity, at amortized cost | 22,459 | 13,962 | |||||||
| Securities available-for-sale, at fair value | 428,295 | 451,911 | |||||||
| Loans | 5,074,793 | 4,424,992 | |||||||
| Less allowance for credit losses | (68,472 | ) | (59,969 | ) | |||||
| Less amortized deferred loan fees, net | (9,939 | ) | (6,316 | ) | |||||
| Loans, net | 4,996,382 | 4,358,707 | |||||||
| Other real estate owned and repossessed assets | 21,990 | – | |||||||
| Customers’ liability on acceptances | 1,731 | 10,188 | |||||||
| Bank furniture and fixtures, net | 8,999 | 10,533 | |||||||
| Bank-owned life insurance | 10,357 | 10,088 | |||||||
| Accrued interest receivable | 23,593 | 14,646 | |||||||
| Investment in affordable housing partnerships | 61,173 | 59,018 | |||||||
| Federal Home Loan Bank stock, at cost | 15,000 | 15,000 | |||||||
| Deferred tax assets | 39,746 | 26,674 | |||||||
| Operating lease right-of-use assets | 21,718 | 21,969 | |||||||
| Other assets | 2,917 | 2,997 | |||||||
| Total assets | $ | 6,421,886 | $ | 6,046,303 | |||||
| Liabilities and Shareholders’ Equity | |||||||||
| Deposits: | |||||||||
| Non-interest bearing demand deposits | $ | 1,192,091 | $ | 1,305,692 | |||||
| Interest-bearing deposits: | 2,295,212 | 2,032,819 | |||||||
| Savings | 39,527 | 37,839 | |||||||
| Time certificates of $250,000 or more | 1,138,727 | 934,444 | |||||||
| Other time certificates | 891,440 | 914,717 | |||||||
| Total deposits | 5,556,997 | 5,225,511 | |||||||
| Acceptances outstanding | 1,731 | 10,188 | |||||||
| Subordinated debt issuance, net | 147,995 | 147,758 | |||||||
| Commitments to fund investment in affordable housing partnerships | 27,490 | 22,606 | |||||||
| Operating lease liabilities | 20,949 | 22,861 | |||||||
| Accrued interest payable | 2,608 | 715 | |||||||
| Other liabilities | 36,018 | 29,946 | |||||||
| Total liabilities | 5,793,788 | 5,459,585 | |||||||
| Shareholders’ equity | 628,098 | 586,718 | |||||||
| Total liabilities and shareholders’ equity | $ | 6,421,886 | $ | 6,046,303 | |||||
| Book value per common share | $ | 43.75 | $ | 39.97 | |||||
| Number of common shares outstanding | 14,358,145 | 14,679,769 | |||||||
| PREFERRED BANK | |||||||||||||||||
| Selected Consolidated Financial Information | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| (in thousands, except for ratios) | |||||||||||||||||
| For the Quarter Ended | |||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||
| 2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||
| Unaudited historical quarterly operations data: | |||||||||||||||||
| Interest income | $ | 98,379 | $ | 78,420 | $ | 62,559 | $ | 55,024 | $ | 54,791 | |||||||
| Interest expense | 24,267 | 11,630 | 6,135 | 4,992 | 5,374 | ||||||||||||
| Interest income before provision for credit losses | 74,112 | 66,790 | 56,424 | 50,032 | 49,417 | ||||||||||||
| Provision (reversal of) for credit losses | 2,000 | 2,700 | 2,900 | (250 | ) | (900 | ) | ||||||||||
| Noninterest income | 2,808 | 2,187 | 2,601 | 2,266 | 1,966 | ||||||||||||
| Noninterest expense | 19,976 | 17,400 | 17,140 | 16,157 | 14,806 | ||||||||||||
| Income tax expense | 15,384 | 13,688 | 10,916 | 10,364 | 11,056 | ||||||||||||
| Net income | $ | 39,560 | $ | 35,189 | $ | 28,069 | $ | 26,027 | $ | 26,421 | |||||||
| Earnings per share | |||||||||||||||||
| Basic | $ | 2.76 | $ | 2.44 | $ | 1.90 | $ | 1.76 | $ | 1.80 | |||||||
| Diluted | $ | 2.71 | $ | 2.40 | $ | 1.87 | $ | 1.74 | $ | 1.80 | |||||||
| Ratios for the period: | |||||||||||||||||
| Return on average assets | 2.48 | % | 2.25 | % | 1.84 | % | 1.75 | % | 1.72 | % | |||||||
| Return on beginning equity | 26.58 | % | 23.60 | % | 18.91 | % | 17.99 | % | 18.65 | % | |||||||
| Net interest margin (Fully-taxable equivalent) | 4.75 | % | 4.37 | % | 3.77 | % | 3.42 | % | 3.28 | % | |||||||
| Noninterest expense to average assets | 1.25 | % | 1.11 | % | 1.12 | % | 1.08 | % | 0.97 | % | |||||||
| Efficiency ratio | 25.97 | % | 25.23 | % | 29.04 | % | 30.89 | % | 28.82 | % | |||||||
| Net charge-offs (recoveries) to average loans (annualized) | 0.00 | % | -0.19 | % | 0.00 | % | 0.11 | % | 0.03 | % | |||||||
| Ratios as of period end: | |||||||||||||||||
| Tier 1 leverage capital ratio | 10.27 | % | 9.95 | % | 9.92 | % | 9.92 | % | 9.54 | % | |||||||
| Common equity tier 1 risk-based capital ratio | 10.78 | % | 10.46 | % | 10.61 | % | 11.20 | % | 11.26 | % | |||||||
| Tier 1 risk-based capital ratio | 10.78 | % | 10.46 | % | 10.61 | % | 11.20 | % | 11.26 | % | |||||||
| Total risk-based capital ratio | 14.36 | % | 14.09 | % | 14.31 | % | 15.12 | % | 15.37 | % | |||||||
| Allowances for credit losses to loans at end of period | 1.35 | % | 1.33 | % | 1.25 | % | 1.27 | % | 1.36 | % | |||||||
| Allowance for credit losses to non-performing loans | 12.49x | 10.75x | 5.27x | 27.15x | 4.05x | ||||||||||||
| Average balances: | |||||||||||||||||
| Total securities | $ | 434,830 | $ | 410,649 | $ | 430,203 | $ | 455,899 | $ | 470,811 | |||||||
| Total loans | 4,981,561 | 4,908,870 | 4,777,353 | 4,367,095 | 4,218,699 | ||||||||||||
| Total earning assets | 6,193,330 | 6,076,616 | 6,008,024 | 5,938,519 | 5,984,055 | ||||||||||||
| Total assets | 6,327,942 | 6,215,184 | 6,133,703 | 6,044,155 | 6,079,934 | ||||||||||||
| Total time certificate of deposits | 1,872,239 | 1,749,257 | 1,810,886 | 1,869,654 | 1,915,116 | ||||||||||||
| Total interest bearing deposits | 4,287,287 | 3,973,105 | 3,982,888 | 3,947,616 | 3,945,275 | ||||||||||||
| Total deposits | 5,468,562 | 5,373,252 | 5,301,370 | 5,215,810 | 5,277,507 | ||||||||||||
| Total interest bearing liabilities | 4,435,245 | 4,121,005 | 4,130,729 | 4,095,399 | 4,093,002 | ||||||||||||
| Total equity | 613,679 | 598,188 | 606,260 | 597,214 | 576,495 | ||||||||||||
| PREFERRED BANK | |||||||||
| Selected Consolidated Financial Information | |||||||||
| (unaudited) | |||||||||
| (in thousands, except for ratios) | |||||||||
| For the Year Ended | |||||||||
| December 31, | December 31, | ||||||||
| 2022 | 2021 | ||||||||
| Interest income | $ | 294,382 | $ | 211,035 | |||||
| Interest expense | 47,024 | 25,158 | |||||||
| Interest income before provision for credit losses | 247,358 | 185,877 | |||||||
| Provision (reversal of) for credit losses | 7,350 | (1,000 | ) | ||||||
| Non-interest income | 9,862 | 7,743 | |||||||
| Non-interest expense | 70,673 | 60,792 | |||||||
| Income tax expense | 50,352 | 38,588 | |||||||
| Net income | $ | 128,845 | $ | 95,240 | |||||
| Earnings per share | |||||||||
| Basic | $ | 8.84 | $ | 6.41 | |||||
| Diluted | $ | 8.70 | $ | 6.41 | |||||
| Ratios for the period: | |||||||||
| Return on average assets | 2.08 | % | 1.68 | % | |||||
| Return on beginning equity | 21.96 | % | 17.51 | % | |||||
| Net interest margin (Fully-taxable equivalent) | 4.09 | % | 2.54 | % | |||||
| Non-interest expense to average assets | 1.14 | % | 1.12 | % | |||||
| Efficiency ratio | 27.48 | % | 32.33 | % | |||||
| Net (recoveries) charge-off to average loans | -0.02 | % | 0.07 | % | |||||
| Average balances: | |||||||||
| Total securities | $ | 432,777 | $ | 304,865 | |||||
| Total loans | 4,760,815 | 4,110,835 | |||||||
| Total earning assets | 6,054,932 | 5,377,565 | |||||||
| Total assets | 6,181,119 | 5,477,989 | |||||||
| Total time certificate of deposits | 1,825,307 | 1,891,583 | |||||||
| Total interest-bearing deposits | 4,048,450 | 3,674,201 | |||||||
| Total deposits | 5,340,533 | 4,729,147 | |||||||
| Total interest-bearing liabilities | 4,196,321 | 3,793,782 | |||||||
| Total equity | 603,865 | 553,937 | |||||||
| PREFERRED BANK | |||||||||||||||||||||||
| Selected Consolidated Financial Information | |||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| (in thousands, except for ratios) | |||||||||||||||||||||||
| As of | |||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||
| 2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||||||
| Unaudited quarterly statement of financial position data: | |||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 767,526 | $ | 749,484 | $ | 768,658 | $ | 985,162 | $ | 1,050,610 | |||||||||||||
| Securities held-to-maturity, at amortized cost | 22,459 | 12,442 | 12,784 | 13,496 | 13,962 | ||||||||||||||||||
| Securities available-for-sale, at fair value | 428,295 | 377,534 | 400,597 | 430,280 | 451,911 | ||||||||||||||||||
| Loans: | |||||||||||||||||||||||
| Real estate – Mortgage: | |||||||||||||||||||||||
| Real estate—Residential | $ | 609,292 | $ | 587,812 | $ | 581,412 | $ | 539,614 | $ | 536,286 | |||||||||||||
| Real estate—Commercial | 2,730,726 | 2,693,852 | 2,583,484 | 2,367,862 | 2,267,063 | ||||||||||||||||||
| Total Real Estate – Mortgage | 3,340,018 | 3,281,664 | 3,164,896 | 2,907,476 | 2,803,349 | ||||||||||||||||||
| Real estate – Construction: | |||||||||||||||||||||||
| R/E Construction — Residential | 193,027 | 179,955 | 168,420 | 141,218 | 130,842 | ||||||||||||||||||
| R/E Construction — Commercial | 204,478 | 188,083 | 203,217 | 209,726 | 202,482 | ||||||||||||||||||
| Total real estate construction loans | 397,505 | 368,038 | 371,637 | 350,944 | 333,324 | ||||||||||||||||||
| Commercial and industrial | 1,320,830 | 1,330,028 | 1,336,631 | 1,281,559 | 1,245,734 | ||||||||||||||||||
| SBA | 11,339 | 8,067 | 22,186 | 32,554 | 42,467 | ||||||||||||||||||
| Trade finance | 4,521 | 22,634 | 24,663 | 18,919 | 11,309 | ||||||||||||||||||
| Consumer and others | 580 | 115 | 128 | 115 | 118 | ||||||||||||||||||
| Gross loans | 5,074,793 | 5,010,546 | 4,920,141 | 4,591,567 | 4,424,992 | ||||||||||||||||||
| Allowance for credit losses on loans | (68,472 | ) | (66,472 | ) | (61,396 | ) | (58,496 | ) | (59,969 | ) | |||||||||||||
| Net deferred loan fees | (9,939 | ) | (9,695 | ) | (9,525 | ) | (8,573 | ) | (6,316 | ) | |||||||||||||
| Net loans | $ | 4,996,382 | $ | 4,934,379 | $ | 4,849,220 | $ | 4,524,498 | $ | 4,358,707 | |||||||||||||
| Other real estate owned and repossessed assets | $ | 21,990 | $ | 26,075 | $ | 21,449 | $ | 15,547 | $ | – | |||||||||||||
| Investment in affordable housing partnerships | 61,173 | 62,745 | 54,874 | 56,946 | 59,018 | ||||||||||||||||||
| Federal Home Loan Bank stock, at cost | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | ||||||||||||||||||
| Other assets | 109,061 | 115,184 | 110,459 | 101,427 | 97,095 | ||||||||||||||||||
| Total assets | $ | 6,421,886 | $ | 6,292,843 | $ | 6,233,041 | $ | 6,142,356 | $ | 6,046,303 | |||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||
| Demand | $ | 1,192,091 | $ | 1,341,199 | $ | 1,385,934 | $ | 1,251,613 | $ | 1,305,692 | |||||||||||||
| Interest-bearing demand | 2,295,212 | 2,263,775 | 2,239,501 | 2,159,178 | 2,032,819 | ||||||||||||||||||
| Savings | 39,527 | 38,151 | 39,784 | 39,946 | 37,839 | ||||||||||||||||||
| Time certificates of $250,000 or more | 1,138,727 | 971,378 | 870,376 | 924,317 | 934,444 | ||||||||||||||||||
| Other time certificates | 891,440 | 841,173 | 872,357 | 934,615 | 914,717 | ||||||||||||||||||
| Total deposits | $ | 5,556,997 | $ | 5,455,676 | $ | 5,407,952 | $ | 5,309,669 | $ | 5,225,511 | |||||||||||||
| Acceptances outstanding | $ | 1,731 | $ | 10,058 | $ | 11,053 | $ | 8,222 | $ | 10,188 | |||||||||||||
| Subordinated debt issuance, net | 147,995 | 147,936 | 147,877 | 147,818 | 147,758 | ||||||||||||||||||
| Commitments to fund investment in affordable housing partnerships | 27,490 | 28,611 | 20,036 | 22,606 | 22,606 | ||||||||||||||||||
| Other liabilities | 59,575 | 60,009 | 54,531 | 58,756 | 53,522 | ||||||||||||||||||
| Total liabilities | $ | 5,793,788 | $ | 5,702,290 | $ | 5,641,449 | $ | 5,547,071 | $ | 5,459,585 | |||||||||||||
| Equity: | |||||||||||||||||||||||
| Net common stock, no par value | $ | 180,324 | $ | 180,324 | $ | 197,997 | $ | 209,065 | $ | 208,840 | |||||||||||||
| Retained earnings | 475,072 | 443,409 | 414,393 | 392,610 | 372,952 | ||||||||||||||||||
| Accumulated other comprehensive income | (28,605 | ) | (33,180 | ) | (20,798 | ) | (6,390 | ) | 4,926 | ||||||||||||||
| Total shareholders’ equity | $ | 626,791 | $ | 590,553 | $ | 591,592 | $ | 595,285 | $ | 586,718 | |||||||||||||
| Total liabilities and shareholders’ equity | $ | 6,420,579 | $ | 6,292,843 | $ | 6,233,041 | $ | 6,142,356 | $ | 6,046,303 | |||||||||||||
| PREFERRED BANK | |||||||||||||||||||||||||
| Quarter-To-Date Average Balances, Yield and Rates | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| Three months ended December 31, | Three months ended September 30, | Three months ended December 31, | |||||||||||||||||||||||
| 2022 | 2022 | 2021 | |||||||||||||||||||||||
| Interest | Average | Interest | Average | Interest | Average | ||||||||||||||||||||
| Average | Income or | Yield/ | Average | Income or | Yield/ | Average | Income or | Yield/ | |||||||||||||||||
| Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||||||
| ASSETS | (Dollars in thousands) | ||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||
| Loans (1,2) | $ | 4,981,561 | 87,159 | 6.94 | % | $ | 4,908,870 | $ | 71,192 | 5.75 | % | 4,218,699 | $ | 51,906 | 4.88 | % | |||||||||
| Investment securities (3) | 434,830 | 3,993 | 3.64 | % | 410,649 | 2,995 | 2.89 | % | 470,811 | 2,228 | 1.88 | % | |||||||||||||
| Federal funds sold | 20,000 | 192 | 3.81 | % | 20,071 | 117 | 2.30 | % | 20,380 | 18 | 0.36 | % | |||||||||||||
| Other earning assets | 756,939 | 7,139 | 3.74 | % | 737,026 | 4,221 | 2.27 | % | 1,274,165 | 752 | 0.23 | % | |||||||||||||
| Total interest-earning assets | 6,193,330 | 98,483 | 6.31 | % | 6,076,616 | 78,525 | 5.13 | % | 5,984,055 | 54,904 | 3.64 | % | |||||||||||||
| Deferred loan fees, net | (10,003 | ) | (9,333 | ) | (5,530 | ) | |||||||||||||||||||
| Allowance for credit losses on loans | (66,515 | ) | (61,477 | ) | (61,123 | ) | |||||||||||||||||||
| Non-interest earning assets: | |||||||||||||||||||||||||
| Cash and due from banks | 11,569 | 10,562 | 11,933 | ||||||||||||||||||||||
| Bank furniture and fixtures | 9,237 | 9,615 | 10,810 | ||||||||||||||||||||||
| Right of use assets | 22,002 | 21,404 | 21,150 | ||||||||||||||||||||||
| Other assets | 168,322 | 167,797 | 118,639 | ||||||||||||||||||||||
| Total assets | $ | 6,327,942 | $ | 6,215,184 | $ | 6,079,934 | |||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||
| Interest-bearing demand and savings | 2,415,048 | $ | 13,938 | 2.29 | % | 2,223,848 | $ | 6,455 | 1.15 | % | $ | 2,030,159 | $ | 1,528 | 0.30 | % | |||||||||
| TCD $250K or more | 1,017,302 | 6,014 | 2.35 | % | 914,373 | 2,517 | 1.09 | % | 942,201 | 1,151 | 0.48 | % | |||||||||||||
| Other time certificates | 854,937 | 2,990 | 1.39 | % | 834,884 | 1,333 | 0.63 | % | 972,915 | 1,370 | 0.56 | % | |||||||||||||
| Total interest-bearing deposits | 4,287,287 | 22,942 | 2.12 | % | 3,973,105 | 10,305 | 1.03 | % | 3,945,275 | 4,049 | 0.41 | % | |||||||||||||
| Subordinated debt, net | 147,958 | 1,325 | 3.55 | % | 147,900 | 1,325 | 3.56 | % | 147,724 | 1,325 | 3.56 | % | |||||||||||||
| Total interest-bearing liabilities | 4,435,245 | 24,267 | 2.17 | % | 4,121,005 | 11,630 | 1.12 | % | 4,093,002 | 5,374 | 0.52 | % | |||||||||||||
| Non-interest bearing liabilities: | |||||||||||||||||||||||||
| Demand deposits | 1,181,275 | 1,400,147 | 1,332,232 | ||||||||||||||||||||||
| Lease Liability | 21,542 | 21,332 | 22,298 | ||||||||||||||||||||||
| Other liabilities | 76,201 | 74,512 | 55,907 | ||||||||||||||||||||||
| Total liabilities | 5,714,263 | 5,616,996 | 5,503,439 | ||||||||||||||||||||||
| Shareholders’ equity | 613,679 | 598,188 | 576,495 | ||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 6,327,942 | $ | 6,215,184 | $ | 6,079,934 | |||||||||||||||||||
| Net interest income | $ | 74,216 | $ | 66,895 | $ | 49,530 | |||||||||||||||||||
| Net interest spread | 4.14 | % | 4.01 | % | 3.12 | % | |||||||||||||||||||
| Net interest margin | 4.75 | % | 4.37 | % | 3.28 | % | |||||||||||||||||||
| Cost of Deposits: | |||||||||||||||||||||||||
| Non-interest bearing demand deposits | $ | 1,181,275 | $ | 1,400,147 | $ | 1,332,232 | |||||||||||||||||||
| Interest-bearing deposits | 4,287,287 | 22,942 | 2.12 | % | 3,973,105 | 10,305 | 1.03 | % | 3,945,275 | 4,049 | 0.41 | % | |||||||||||||
| Total Deposits | $ | 5,468,562 | $ | 22,942 | 1.66 | % | $ | 5,373,252 | $ | 10,305 | 0.76 | % | $ | 5,277,507 | $ | 4,049 | 0.30 | % | |||||||
| (1) | Includes non-accrual loans and loans held for sale | ||||||||||||||||||||||||
| (2) | Net loan fee income of $972,000, $1.2 million and $1.1 million for the quarter ended December 31, 2022, September 30, 2022, and December 31, 2021, respectively, are included in the yield computations | ||||||||||||||||||||||||
| (3) | Yields on securities have been adjusted to a tax-equivalent basis | ||||||||||||||||||||||||
| PREFERRED BANK | |||||||||||||||||
| Year-To-Date Average Balances, Yield and Rates | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Year ended December 31, | |||||||||||||||||
| 2022 | 2021 | ||||||||||||||||
| Interest | Average | Interest | Average | ||||||||||||||
| Average | Income or | Yield/ | Average | Income or | Yield/ | ||||||||||||
| Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||
| ASSETS | (Dollars in thousands) | ||||||||||||||||
| Interest-earning assets: | |||||||||||||||||
| Loans (1,2) | $ | 4,760,815 | $ | 269,011 | 5.65 | % | $ | 4,138,592 | $ | 200,537 | 4.85 | % | |||||
| Investment securities (3) | 432,777 | 11,584 | 2.68 | % | 346,692 | 8,333 | 2.40 | % | |||||||||
| Federal funds sold | 20,070 | 374 | 1.86 | % | 21,032 | 81 | 0.38 | % | |||||||||
| Other earning assets | 841,270 | 13,837 | 1.64 | % | 1,024,118 | 2,520 | 0.25 | % | |||||||||
| Total interest-earning assets | 6,054,932 | 294,806 | 4.87 | % | 5,530,434 | 211,471 | 3.82 | % | |||||||||
| Deferred loan fees, net | (8,697 | ) | (4,997 | ) | |||||||||||||
| Allowance for credit losses on loans | (61,645 | ) | (63,250 | ) | |||||||||||||
| Non-interest earning assets: | |||||||||||||||||
| Cash and due from banks | 11,068 | 11,746 | |||||||||||||||
| Bank furniture and fixtures | 9,826 | 11,290 | |||||||||||||||
| Right of use assets | 21,612 | 19,733 | |||||||||||||||
| Other assets | 154,023 | 124,756 | |||||||||||||||
| Total assets | $ | 6,181,119 | $ | 5,629,712 | |||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||
| Deposits: | |||||||||||||||||
| Interest-bearing demand/ savings | 2,223,143 | $ | 24,312 | 1.09 | % | 1,845,013 | $ | 6,021 | 0.33 | % | |||||||
| TCD $250K or more | 938,491 | 10,768 | 1.15 | % | 938,179 | 6,299 | 0.67 | % | |||||||||
| Other time certificates | 886,816 | 6,644 | 0.75 | % | 959,337 | 6,513 | 0.68 | % | |||||||||
| Total interest-bearing deposits | 4,048,450 | 41,724 | 1.03 | % | 3,742,529 | 18,833 | 0.50 | % | |||||||||
| Subordinated debt, net | 147,871 | 5,300 | 3.58 | % | 126,674 | 6,325 | 4.99 | % | |||||||||
| Total interest-bearing liabilities | 4,196,321 | 47,024 | 1.12 | % | 3,869,204 | 25,158 | 0.65 | % | |||||||||
| Non-interest bearing liabilities: | |||||||||||||||||
| Demand deposits | 1,292,083 | 1,124,836 | |||||||||||||||
| Lease Liability | 21,731 | 21,536 | |||||||||||||||
| Other liabilities | 67,119 | 54,513 | |||||||||||||||
| Total liabilities | 5,577,254 | 5,070,089 | |||||||||||||||
| Shareholders’ equity | 603,865 | 559,623 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 6,181,119 | $ | 5,629,712 | |||||||||||||
| Net interest income | $ | 247,782 | $ | 186,313 | |||||||||||||
| Net interest spread | 3.75 | % | 3.17 | % | |||||||||||||
| Net interest margin | 4.09 | % | 3.37 | % | |||||||||||||
| Cost of Deposits: | |||||||||||||||||
| Non-interest bearing demand deposits | $ | 1,292,083 | $ | 1,124,836 | |||||||||||||
| Interest-bearing deposits | 4,048,450 | 41,724 | 1.03 | % | 3,742,529 | 18,833 | 0.50 | % | |||||||||
| Total Deposits | $ | 5,340,533 | $ | 41,724 | 0.78 | % | $ | 4,867,365 | $ | 18,833 | 0.39 | % | |||||
| (1) | Includes non-accrual loans and loans held for sale | ||||||||||||||||
| (2) | Net loan fee income of $3.8 million and $3.1 million for the twelve months ended December 31, 2022 and 2021, respectively, are included in the yield computations | ||||||||||||||||
| (3) | Yields on securities have been adjusted to a tax-equivalent basis | ||||||||||||||||
| PREFERRED BANK | |||||||||
| Loan and Credit Quality Information | |||||||||
| Allowance For Credit Losses History | |||||||||
| Year Ended | |||||||||
| December 31, 2022 | December 31, 2021 | ||||||||
| (Dollars in 000’s) | |||||||||
| Allowance For Credit Losses | |||||||||
| Balance at Beginning of Period | $ | 59,969 | $ | 63,426 | |||||
| Charge-Offs | |||||||||
| Commercial & Industrial | 1,222 | 1,697 | |||||||
| Mini-perm Real Estate | 1 | 817 | |||||||
| Total Charge-Offs | 1,223 | 2,514 | |||||||
| Recoveries | |||||||||
| Commercial & Industrial | – | 57 | |||||||
| Mini-perm Real Estate | 2,376 | – | |||||||
| Total Recoveries | 2,376 | 57 | |||||||
| Net Charge-Offs (recoveries) | (1,153 | ) | 2,457 | ||||||
| Provision for (reversal of) Credit Losses: | 7,350 | (1,000 | ) | ||||||
| Balance at End of Period | $ | 68,472 | $ | 59,969 | |||||
| Average Loans Held for Investment | $ | 4,760,815 | $ | 4,138,023 | |||||
| Loans Held for Investment at End of Period | $ | 5,074,793 | $ | 4,424,992 | |||||
| Net Charge-Offs (recoveries) to Average Loans | -0.02 | % | 0.06 | % | |||||
| Allowances for Credit Losses to Loans at End of Period | 1.35 | % | 1.36 | % | |||||
| AT THE COMPANY: | AT FINANCIAL PROFILES: |
| Edward J. Czajka | Jeffrey Haas |
| Executive Vice President | General Information |
| Chief Financial Officer | (310) 622-8240 |
| (213) 891-1188 | PFBC@finprofiles.com |
