Chairman’s Message from the 2013 Annual Report


March 29, 2014


Dear Shareholders:


The results for the year 2013 show significant improvement over 2012 in many areas. Operating income before income taxes was $31.5 million compared to $3.3 million in 2012. Pre-tax return on assets (ROA) was 1.93% compared to 0.23% in 2012 and our efficiency ratio improved to 45.7% in 2013 compared to 59.7% for 2012.

Non-performing assets also improved from $71.8 million at December 31, 2012 to just $19.6 million at December 31, 2013. Our credit quality metrics now compare favorably to our peer groups.

During the year, the Bank’s total assets grew to $1.77 billion at December 31, 2013 from a total of $1.55 billion as of December 31, 2012. This growth is the result of 17.5% growth in total loans and 12.7% growth in total deposits during 2013. While achieving this growth, we also made significant investments in administrative personnel and processes to support the Bank’s future growth.

Finally, we have taken steps to maintain a balance sheet that is ‘asset-sensitive’, meaning that we are very well positioned to take advantage of rising interest rates. Although it is not clear when short term rates will rise, we know that they will rise and we are well prepared.

Reflecting all of the above accomplishments, the Bank’s share price (NASDAQ: PFBC) also increased from $14.20 as of December 31, 2012 to $20.05 as of December 31, 2013. In addition, the share price continues to rise as of the date of this letter. The Board of Directors and Management are gratified with our shareholders’ recognition of the effort we have made and we look forward to a prosperous 2014 and beyond.


Very truly yours,


Li Yu

Chairman of the Board

Chief Executive Officer