Preferred Bank in Los Angeles has recovered a large chunk of a loan it had given up on.
The $1.9 billion-asset company said a $5.6 million loan that had been put in nonaccrual status was paid off Friday. Preferred was able to record a $4.6 million recovery to its allowance for loan and lease losses as a result, according to a company press release on Monday.
"This recovery also increases our June 30 pro forma total risk-based capital ratio from 14.25% to 14.48%," Li Yu, chief executive officer of Preferred Bank, said in the release.
Preferred reported net income of $5.9 million for the second quarter, up 37% from a year earlier.