July 11, 2012 (Shareholders Foundation) -- An investigation on behalf of investors in Preferred Bank (NASDAQ:PFBC) shares over potential securities laws violations by certain officers and directors at Preferred Bank in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Preferred Bank (NASDAQ:PFBC) concerning whether the company, certain of its officers and directors, or others have possibly violated federal securities laws. Specifically, the investigation concerns whether certain statements about Preferred Banks business, its prospects and its operations were potentially materially false and misleading at the time they were made.

Preferred Bank (NASDAQ:PFBC) reported that its Net Loss of $72.53million in 2009 turned into a Net Income of $12.23million in 2011.

Shares of Preferred Bank (NASDAQ:PFBC) rose since its1 :5 split on June 20, 2011 from $7.20 in July 2011 to as high as $13.36 per share on June 29, 2012.

Then on July 5, 2012, Preferred Bank (NASDAQ:PFBC) announced certain loan charges. Preferred Bank (NASDAQ: PFBC) said that certain developments regarding two different loans will negatively impact the Banks second quarter financial results.

Shares of Preferred Bank (NASDAQ:PFBC) fell from $14.10 on July 5, 2012 to $11.44 per share on July 6, 2012.

On July 10, 2012, NASDAQ:PFBC shares closed at $11.64 per share.