Plaza Bank Announces Financial Results for the Quarter and Year Ended December 31, 2012

Marketwired

IRVINE, CA--(Marketwire - Feb 21, 2013) - Plaza Bank (OTCQB: PLZB) (the "Bank") today reported unaudited net income for the fourth quarter of 2012 of $587,000, compared with net income of $443,000 in the fourth quarter of 2011. Earnings per share were $0.03, flat compared to the fourth quarter of 2011. Net interest income for the quarter was $4.3 million, up 26% compared with the prior year.

Net income for the full-year of 2012 was $2.4 million, compared with $1.7 million for the prior year. Earnings per share were $0.14 for 2012, compared with $0.10 for 2011. Net interest income for 2012 was $15.3 million, an increase of 23%, or $2.9 million, compared with 2011.

Gene Galloway, President and Chief Executive Officer of Plaza Bank, commenting on the growth of the Bank in 2012, stated, "Total assets and net loans increased by 27% and 23%, respectively, in 2012. The growth in net loans along with our loan sales were the primary drivers of our 39% increase in net profit for 2012. Helping to fund our loan growth was the 31% increase in deposits at our Las Vegas branch."

Erich Bollinger, the Bank's Chief Banking Officer, added, "Not only did we see tremendous growth in deposits in Las Vegas; we also saw an increase in the origination of loans from this market. The quality and quantity of the commercial loan applications and the strength of the borrowers that are being presented to us are much stronger than at any time in the last three years. Hopefully, this is a sign that the Las Vegas market has bottomed out and now we are in a recovery period."

Highlights for the full year of 2012 included:

  • Loans originated and funded for 2012 totaled $172.0 million.
  • Loan sales totaled $47.8 million and generated gains on sale of $3.2 million.
  • Net loans increased by $62.4 million in the year to $331.0 million from $268.7 million.
  • The Bank's net interest margin for the year was 4.21%, an increase of 12 basis points over the prior year.
  • Deposits grew by $89.3 million, or 34%, to $352.7 million during 2012.
  • Non-accrual loans decreased from $16.5 million at the end of 2011 to $7.2 million, or 2.16% of total loans, at the end of 2012.

Highlights for the fourth quarter included:

  • Loans originated and funded in the fourth quarter totaled $51.5 million.
  • Loans outstanding, net of allowance for loan losses, totaled $331.0 million at the end of the quarter, an increase of $25.0 million, or 33% annualized, over the prior quarter balance.
  • The Bank's net interest margin increased quarter over quarter from 4.27% for the third quarter of 2012 to 4.34% for the fourth quarter of 2012.

About Plaza Bank
Plaza Bank is a 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.

   
Balance Sheet  
For the Quarter-ended:  
Plaza Bank  
Statement of Financial Condition  
             
             
    December 31,     December 31,  
ASSETS   2012     2011  
    (Unaudited)     (Audited)  
                 
Cash and cash equivalents   $ 41,668,000     $ 16,817,000  
Investment securities - available for sale     23,116,000       21,142,000  
                 
Net loans     331,025,000       268,674,000  
                 
Goodwill and Other intangibles     5,346,000       5,399,000  
Idemnification Asset     3,575,000       6,004,000  
Accrued interest and Other Assets     16,567,000       14,638,000  
                 
TOTAL ASSETS   $ 421,297,000     $ 332,674,000  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
Deposits                
Noninterest-bearing Demand   $ 70,062,000     $ 35,969,000  
Savings, Now and Money Market Accounts     142,084,000       95,203,000  
Time Deposits     140,522,000       132,213,000  
  Total Deposits   $ 352,668,000     $ 263,385,000  
                 
Borrowings     12,000,000       20,000,000  
Accrued Interest and Other Liabilities     7,847,000       2,650,000  
  Total liabilities     372,515,000       286,035,000  
                 
Total Stockholders' Equity     48,782,000       46,639,000  
                 
    $ 421,297,000     $ 332,674,000  
                 
BASIC BOOK VALUE PER SHARE   $ 2.86     $ 2.74  
                 
DILUTED BOOK VALUE PER SHARE   $ 2.83     $ 2.70  
                 
BASIC SHARES OUTSTANDING AT PERIOD END     17,084,010       17,017,554  
                 
DILUTED SHARES OUTSTANDING AT PERIOD END     17,226,800       17,285,032  
                 
                 
Capital Ratios End of Period:                
  Tier 1 leverage ratio     10.89 %     12.24 %
  Tier 1 risk-based capital ratio     13.05 %     15.57 %
  Risk-based capital ratio     14.23 %     16.83 %
                   
                   
                   
Plaza Bank
Statement of Operations
(unaudited)
       
    Quarter-to-Date   Year-to-Date   Quarter-to-Date     Year-to-Date
    (unaudited)   (unaudited)   (unaudited)     (unaudited)
    December 31,   December 31,   December 31,     December 31,
    2012   2012   2011     2011
                           
Interest Income     5,072,000     18,642,000     4,213,000       15,997,000
Interest Expense     807,000     3,322,000     825,000       3,535,000
  Net Interest Income   $ 4,265,000   $ 15,320,000   $ 3,388,000     $ 12,462,000
                           
Provisions for Loan Losses     865,000     2,317,000     1,209,000       2,188,000
Net Interest Income after                          
  Provisions for Loan Losses     3,400,000     13,003,000     2,179,000       10,274,000
                           
Noninterest Income     1,588,000     5,770,000     1,335,000       4,384,000
Noninterest Expense     3,986,000     15,071,000     3,323,000       12,938,000
Income before Income Taxes     1,002,000     3,702,000     191,000       1,720,000
Provisions (benefits) for Income Taxes     415,000     1,305,000     (252,000 )     1,000
Net Income   $ 587,000   $ 2,397,000   $ 443,000     $ 1,719,000
                           
EARNINGS PER SHARE - BASIC     0.03     0.14     0.03       0.10
                           
EARNINGS PER SHARE - DILUTED     0.03     0.14     0.03       0.10
                           
BASIC WEIGHTED AVERAGE SHARES     17,079,399     17,070,643     17,016,885       17,009,184
                           
DILUTED WEIGHTED AVERAGE SHARES     17,226,800     17,229,450     17,284,418       17,276,870
                           
                           
                           
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
18200 Von Karman Ave., Suite 500
Irvine, CA 92612
(949) 225-3704
Email Contact

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