Preferred Bank (PFBC) has reported a 31.09 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $10.28 million, or $0.71 a share in the quarter, compared with $7.84 million, or $0.56 a share for the same period last year.      

Revenue during the quarter grew 19.76 percent to $29.03 million from $24.24 million in the previous year period. Net interest income for the quarter rose 19.11 percent over the prior year period to $28.44 million. Non-interest income for the quarter rose 79.71 percent over the last year period to $2.09 million.

Preferred Bank has made provision of $1.50 million for loan losses during the quarter, up 87.50 percent from $0.80 million in the same period last year.

Net interest margin contracted 12 basis points to 3.67 percent in the quarter from 3.79 percent in the last year period. Efficiency ratio for the quarter improved to 43.16 percent from 44.08 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.

Li Yu, chairman and chief executive officer commented, "We are delighted to report a very vibrant first quarter of 2017. For the quarter, deposit growth was $188 million, a record in our corporate history. Although large deposit growth such as this will negatively affect return on assets, capital ratios and the net interest margin, it is still the most important factor in building a banking franchise. We are excited with these quarterly results."

Investments stood at $230.27 million as on Mar. 31, 2017. Shareholders equity was at $294.38 million as on Mar. 31, 2017.

Return on average assets moved up 8 basis points to 1.29 percent in the quarter from 1.21 percent in the last year period. At the same time, return on average equity increased 205 basis points to 13.99 percent in the quarter from 11.94 percent in the last year period.

Tier-1 leverage ratio stood at 9.01 percent for the quarter, down from 10.29 percent for the previous year quarter.