Preferred Bank, which largely targets the Chinese-American community, on Tuesday reported a fourth-quarter net loss, due to charges to cover loan losses.

After the market closed, Los Angeles-based Preferred reported a net loss of $468,000 (-5 cents per share), compared with net income of $5.8 million (57 cents) a year ago. Net interest income before provision for loan and lease losses fell 35 percent to $11.2 million, primarily due to the lower interest rates as well as an increase in nonaccrual loans.

Results for the quarter were affected by what it termed an “other than temporary” impairment charge of $4.5 million on its investment portfolio. Other charges included a $6.9 million provision for loan losses and $1.2 million write-down on the value of bank-owned properties.

For the full 2008 year, the bank reported a net loss of $473,000 (5 cents), compared with net income of $26.5 million ($2.50) in 2007. Total assets fell 3.6 percent to $1.49 billion.

“It was truly a humbling experience but fortunately … we ended up with only a loss of $473,000 for the year,” President Li Yu said in a statement. “The fact that we could absorb this $37 million in charges during 2008 and only have a small loss speaks to the underlying earnings power and franchise value of Preferred Bank.”

Before the report was released, the bank’s shares closed down $1.33, or 8 percent, to $15.57 on the Nasdaq.