Plaza Bank Announces Financial Results for the Quarter and Year Ended December 31, 2011

Marketwired

IRVINE, CA--(Marketwire -03/14/12)- Plaza Bank (OTC.BB: PLZB.OB - News) (the "Bank") today reported its unaudited net earnings for the quarter and year ended December 31, 2011. Net income for 2011 was $1.7 million or $0.10 per share on a diluted basis, a decrease from $3.9 million or $0.28 per share on a diluted basis for 2010. Net income for the quarter ending December 31, 2011 was $433,000 or $0.03 per share on a diluted basis, up from the prior year fourth quarter of $100,000 or $0.01.

  • For the year ending December 31, 2011, net loans grew 16.6% to $268.6 million from $230.4 million at December 31, 2010.
  • Money market deposits totaled $95.2 million at December 31, 2011, compared with $66.5 million at December 31, 2010; a 43.2% increase.
  • Non-interest transaction accounts increased by $4.3 million, or 13.4%, from $31.7 million on December 31, 2010 to $36.0 million by December 31, 2011.
  • Total deposits increased in 2011 by 9.5% to $263.4 million at December 31, 2011, compared to with $240.4 million on December 31, 2010.
  • The Bank increased interest income by 36.6% for the year to a total of $16.0 million at December 31, 2011 versus $11.7 million for the year ending December 31, 2010.
  • In 2011 the Bank earned $2.1 million on loan sales, a 45.4% increase over the prior year's result of $1.5 million.
  • The Bank's net interest margin for the year ending December 31, 2011 increased by 97 basis points to 4.03% from 3.06% for the prior year period.
  • Capital ratios for the Bank were 12.24% Tier 1 leverage rate, 15.55% Tier 1 risk based, and 16.81% risk based as of December 31, 2011.

"We have steadily driven profitability by increasing the Bank's deposits and growing the loan portfolio," states Plaza Bank President and CEO Gene Galloway. "Our asset quality is strong and the Bank's capital ratios exceed well-capitalized standards. The cost of deposits has decreased each quarter for the last 3 years."

Plaza Bank funded over $20 million in new loans in the month of December 2011. "Being ranked twentieth in the nation as a business lender has opened doors for our relationship managers and business development team," states Erich Bollinger, Executive Vice President of Plaza Bank. MultiFunding LLC ranked Plaza Bank number one in Orange County for 2011 and twentieth in the nation during 2010 as being the most committed to small business lending. "These rankings resonate with the business communities we work to serve and help rebuild during these difficult economic times," Bollinger adds, who joined the Bank in October of 2011.

New Hires
Over 20 new employees throughout California and Nevada have been hired since June 1, 2011. "We added significant new business development staff and promoted a number of key individuals," stated Galloway. The majority of the new hires are dedicated to the SBA lending operations.

About Plaza Bank
Plaza Bank is full service community bank serving the business and professional communities in Southern California and Las Vegas, Nevada. The Bank is committed to meeting the financial needs of small to middle market businesses and professional firms with loans for working capital, equipment and owner-occupied commercial real estate financing and a full array of cash management services. Our bankers are experienced, professional and knowledgeable. For more information, visit www.plazabank.net or call President and CEO Gene Galloway at (949) 502-4309.

Forward-Looking Statements

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to the safe harbors created by that Act. .Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements are based on currently available information, expectations, assumptions, projections, and management's judgment about the Bank, the banking industry and general economic conditions. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management's views as of any subsequent date. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely.

Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that might cause such differences include, but are not limited to: the Bank's ability to successfully execute its business plans and achieve its objectives; changes in general economic, real estate and financial market conditions, either nationally or locally in areas in which the Bank conducts its operations; changes in interest rates; new litigation or changes in existing litigation; future credit loss experience; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Bank's operations or business; loss of key personnel; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; and the ability to satisfy requirements related to the Sarbanes-Oxley Act and other regulation on internal control.

 
                          PLAZA Bank
                        Balance Sheet
                    For the Quarter-ended:




                        Dec. 31       Dec. 31
                         2011          2010
ASSETS                 Unaudited      Audited
                     ------------  ------------

Cash and due from
 banks               $ 16,817,000  $ 20,511,000
Investment
 securities -
 available for sale    21,142,000    17,598,000

Net loans             268,640,000   230,410,000

Accrued interest
 receivable             1,244,000     1,249,000
Other real estate
 owned                  2,384,000       353,000
Premises and
 equipment                694,000       681,000
Income taxes
 receivable                     -             -
Deferred income
 taxes                  1,592,000     2,213,000
Mortgage Servicing
 Rights                   890,000       652,000
Interest Strip          1,780,000     1,740,000
Intangible Asset          (58,000)      (93,000)
Core Deposits
 Intangibles            1,135,000     1,342,000
Goodwill                3,374,000     3,424,000
Goodwill and Other
 intangibles            5,341,000     5,325,000
Indemnification
 Asset                  6,004,000    29,258,000
Other assets            7,002,000     4,866,000
Accrued interest and
 Other Assets          14,696,000    11,102,000
                     ------------  ------------

TOTAL ASSETS         $332,640,000  $314,204,000
                     ============  ============

LIABILITIES AND
 STOCKHOLDERS'
 EQUITY

Deposits
  Noninterest-
   bearing Demand    $ 35,969,000  $ 31,711,000
  Savings, Now and
   Money Market
   Accounts            95,203,000    66,466,000
  Time Deposits       132,213,000   142,259,000
                     ------------  ------------
  Total Deposits      263,385,000   240,436,000

Borrowings             20,000,000    26,982,000
Accrued Interest and
 Other Liabilities      2,616,000     2,663,000
                     ------------  ------------
Total Liabilities     286,001,000   270,081,000

Total Stockholders'
 Equity                46,639,000    44,123,000
                     ------------  ------------

TOTAL LIABILITIES
 AND STOCKHOLDERS'
 EQUITY              $332,640,000  $314,204,000
                     ============  ============


BOOK VALUE PER
 SHARE, Excluding
 Unvested Restricted
 Shares              $       2.74  $       2.60
BOOK VALUE PER
 SHARE, Including
 Unvested Restricted
 Shares              $       2.70  $       2.55
SHARES OUTSTANDING
 AT PERIOD END,
 Excluding Unvested
 Restricted Shares     17,017,554    16,947,686
SHARES OUTSTANDING
 AT PERIOD END,
 Including Unvested
 Restricted Shares     17,285,032    17,275,186

Capital Ratios End
 of Period:
    Tier 1 leverage
     ratio                   12.2%         11.8%
    Tier 1 risk-
     based capital
     ratio                   15.6%         19.1%
    Risk-based
     capital ratio           16.8%         20.0%

INCOME STATEMENT
QUARTER AND YEAR-TO-
 DATE INCOME
 STATEMENT

                      Quarter-to-                 Quarter-to-
                         Date      Year-to-Date      Date      Year-to-Date
                      (unaudited)   (unaudited)   (unaudited)    (audited)
                        Dec. 31       Dec. 31       Dec. 31       Dec. 31
                         2011          2011          2010          2010
                     ------------  ------------  ------------  ------------

Interest Income         4,201,000    15,950,000     4,060,000    11,675,000
Interest Expense          824,000     3,535,000     1,000,000     3,230,000
                     ------------  ------------  ------------  ------------
NET INTEREST INCOME  $  3,377,000  $ 12,415,000  $  3,060,000  $  8,445,000
                     ============  ============  ============  ============

Provisions for Loan
 Losses                 1,209,000     2,188,000       323,000       922,000
                     ------------  ------------  ------------  ------------
NET INTEREST INCOME
 AFTER PROVISION FOR
 LOAN LOSSES            2,168,000    10,227,000     2,737,000     7,523,000

Noninterest Income      1,346,000     4,431,000    (1,918,000)    5,199,000
Noninterest Expense     3,323,000    12,938,000     3,889,000    10,984,000
                     ------------  ------------  ------------  ------------
INCOME (LOSS) BEFORE
 INCOME TAXES             191,000     1,720,000    (3,070,000)    1,738,000
PROVISION FOR INCOME
 TAXES                   (252,000)        1,000    (3,170,000)   (2,166,000)
                     ------------  ------------  ------------  ------------
NET INCOME (LOSS)    $    443,000  $  1,719,000  $    100,000  $  3,904,000
                     ============  ============  ============  ============

EARNINGS PER SHARE -
 BASIC                       0.03          0.10          0.01          0.28

EARNINGS PER SHARE -
 DILUTED                     0.03          0.10          0.01          0.28

BASIC WEIGHTED
 AVERAGE SHARES        17,016,885    17,009,184    16,947,686    13,865,970

DILUTED WEIGHTED
 AVERAGE SHARES        17,284,418    17,276,870    17,275,186    13,865,970



Contact:
Media
Gene Galloway
President & CEO
Plaza Bank
(702) 277-2221 or (949) 502-4309
Email Contact
Erich Bollinger
EVP and Chief Banking Officer
Plaza Bank
(949) 225-3704
Email Contact

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