Plaza Bank Reports Improved Earnings
IRVINE, CA--(Marketwired - Oct 31, 2013) - Plaza Bank (OTCQB: PLZB) (the "Bank") reported unaudited net income for the three months ended September 30, 2013 of $1,389,000 or $0.08 per share on a diluted basis, a $529,000, or 62%, increase from the third quarter of 2012 of $860,000 or $0.05 per share on a diluted basis. For the three months ended September 30, 2013, Plaza Bank's return on average assets was 1.18% and return on average equity was 10.50%, up from a return on average assets of 0.85% and a return on average equity of 7.13% for the comparable period of 2012.
For the nine months ended September 30, 2013, net income improved to $4,285,000, and $0.24 per diluted share, from $1,810,000, and $0.11 per diluted share, in the first nine months of 2012. For the nine months ended September 30, 2013, the Bank's return on average assets was 1.30% and return on average equity was 11.14%, up from a return on average assets of 0.65% and a return on average equity of 5.09% for the first nine months of 2012.
Gene Galloway, President and Chief Executive Officer of Plaza Bank, in commenting on the year-to-date results, stated, "Our surge in net income of 136.7% is being driven by the 17.2% or $56 million increase in loans held for investment since the beginning of the year. The increase in loans has pushed our loan interest income up $4.0 million or 30.1% compared to the first three quarters of 2012. Additionally, our cost of deposits is down $272,000 year to date compared to the same period in 2012 even though our deposits have increased $51 million or 14.7% since September 30, 2012."
Highlights for the three and nine months ending September 30, 2013 included:
The acquisition of $12.1 million of assets and $19.1 million of deposits from 1st Commerce Bank, North Las Vegas, Nevada under a purchase and assumption agreement with the Federal Deposit Insurance Corporation on June 6, 2013 generated $624,000 in gain on acquisition. $524,000 of the gain was recognized in the third quarter.
During the quarter the Bank sold $12.8 million of SBA 7A loans that generated $682,000 in gains. For the nine months ending September 30, 2013, the Bank sold $38.7 million of SBA 7A loans that generated $2.6 million in gains.
Loan volume for the three and nine months ended September 30, 2013 was $43.8 million and $150.0 million, respectively.
Loans held for investment totaled $383.4 million at the end of the quarter, an increase on both a linked quarter and year-over-year basis of $12.4 million or 3.3% and $79.3 million or 26.1%, respectively.
At September 30, 2013, the Bank's total assets were $473.6 million, up $9.7 million or 2.09% from June 30, 2013, and up $53.1 million or 12.6% from December 31, 2012.
Net interest margin for the third quarter was 4.65% up 38 basis points compared to the same period a year ago of 4.27%. For the first nine months of 2013 the net interest margin was 4.81%, an increase of 64 basis points from the same period in 2012.
Non-interest deposits grew in the last three and 12 months by $6.1 million or 8.2% and $24.4 million or 43.9%, respectively, to $80.1 million as of September 30, 2013.
Net charge-offs year-to-date totaled $125,000 compared to $1.1 million for the same period in 2012. No loans were charged off in the third quarters of both 2012 and 2013.
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 (702) 277-2221 or (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.
For the Quarter-ended: | ||||||||||||||||||
Plaza Bank | ||||||||||||||||||
Statement of Financial Condition | ||||||||||||||||||
September 30, | June 30, | December 31, | September 30, | |||||||||||||||
ASSETS | 2013 | 2013 | 2012 | 2012 | ||||||||||||||
(Unaudited) | (Unaudited) | (Audited) | (Unaudited) | |||||||||||||||
Cash and cash equivalents | $ | 46,488,000 | $ | 47,236,000 | $ | 41,668,000 | $ | 54,471,000 | ||||||||||
Investment securities - available for sale | 24,222,000 | 23,066,000 | 23,116,000 | 25,586,000 | ||||||||||||||
Loans held for sale | 801,000 | 4,430,000 | 7,726,000 | 6,723,000 | ||||||||||||||
Loans held for investment | 383,390,000 | 370,996,000 | 327,208,000 | 304,115,000 | ||||||||||||||
Allowance for possible credit losses | (4,599,000 | ) | (4,412,000 | ) | (3,909,000 | ) | (4,807,000 | ) | ||||||||||
Net loans held for investment | 378,791,000 | 366,584,000 | 323,299,000 | 299,308,000 | ||||||||||||||
Goodwill and Other intangibles | 5,816,000 | 5,640,000 | 5,346,000 | 5,239,000 | ||||||||||||||
Idemnification Asset | 2,987,000 | 2,848,000 | 3,574,000 | 2,948,000 | ||||||||||||||
Accrued interest and Other Assets | 14,527,000 | 14,122,000 | 15,812,000 | 18,884,000 | ||||||||||||||
TOTAL ASSETS | $ | 473,632,000 | $ | 463,926,000 | $ | 420,541,000 | $ | 413,159,000 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||
Deposits | ||||||||||||||||||
Noninterest-bearing Demand | $ | 80,063,000 | $ | 74,004,000 | $ | 70,062,000 | $ | 55,621,000 | ||||||||||
Savings, Now and Money Market Accounts | 167,825,000 | 148,209,000 | 142,084,000 | 150,188,000 | ||||||||||||||
Time Deposits | 149,751,000 | 153,473,000 | 140,522,000 | 140,869,000 | ||||||||||||||
Total Deposits | $ | 397,639,000 | $ | 375,686,000 | $ | 352,668,000 | $ | 346,678,000 | ||||||||||
Borrowings | 18,000,000 | 32,000,000 | 12,000,000 | 12,000,000 | ||||||||||||||
Accrued Interest and Other Liabilities | 4,719,000 | 4,219,000 | 7,091,000 | 5,839,000 | ||||||||||||||
Total Liabilities | 420,358,000 | 411,905,000 | 371,759,000 | 364,517,000 | ||||||||||||||
Total Stockholders' Equity | 53,274,000 | 52,021,000 | 48,782,000 | 48,642,000 | ||||||||||||||
$ | 473,632,000 | $ | 463,926,000 | $ | 420,541,000 | $ | 413,159,000 | |||||||||||
BASIC BOOK VALUE PER SHARE | $ | 3.11 | $ | 3.04 | $ | 2.86 | $ | 2.85 | ||||||||||
DILUTED BOOK VALUE PER SHARE | $ | 3.00 | $ | 2.94 | $ | 2.83 | $ | 2.82 | ||||||||||
BASIC SHARES OUTSTANDING AT PERIOD END | 17,130,739 | 17,100,071 | 17,084,010 | 17,077,950 | ||||||||||||||
DILUTED SHARES OUTSTANDING AT PERIOD END | 17,751,910 | 17,664,730 | 17,226,800 | 17,220,134 | ||||||||||||||
Capital Ratios End of Period: | ||||||||||||||||||
Tier 1 leverage ratio | 10.45 | % | 10.98 | % | 10.89 | % | 10.91 | % | ||||||||||
Tier 1 risk-based capital ratio | 12.12 | % | 12.09 | % | 13.05 | % | 13.78 | % | ||||||||||
Risk-based capital ratio | 13.32 | % | 13.29 | % | 14.23 | % | 15.01 | % | ||||||||||
Plaza Bank | |||||||||||||
Statement of Operations | |||||||||||||
(unaudited) | |||||||||||||
Quarter-to-Date (unaudited) September 30, 2013 | Year-to-Date (unaudited) September 30, 2013 | Quarter-to-Date (unaudited) September 30, 2012 | Year-to-Date (unaudited) September 30, 2012 | ||||||||||
Interest Income | 6,073,000 | 17,491,000 | 4,957,000 | 13,570,000 | |||||||||
Interest Expense | 804,000 | 2,275,000 | 866,000 | 2,515,000 | |||||||||
Net Interest Income | $ | 5,269,000 | $ | 15,216,000 | $ | 4,091,000 | $ | 11,055,000 | |||||
Provisions for Loan Losses | 181,000 | 826,000 | 817,000 | 1,452,000 | |||||||||
Net Interest Income after | |||||||||||||
Provisions for Loan Losses | 5,088,000 | 14,390,000 | 3,274,000 | 9,603,000 | |||||||||
Noninterest Income | 1,888,000 | 5,426,000 | 1,379,000 | 4,182,000 | |||||||||
Noninterest Expense | 4,589,000 | 12,991,000 | 3,567,000 | 11,085,000 | |||||||||
Loss before Income Taxes | 2,387,000 | 6,825,000 | 1,086,000 | 2,700,000 | |||||||||
Provisions for Income Taxes | 998,000 | 2,540,000 | 226,000 | 890,000 | |||||||||
Net Income | $ | 1,389,000 | $ | 4,285,000 | $ | 860,000 | $ | 1,810,000 | |||||
EARNINGS PER SHARE - BASIC | 0.08 | 0.25 | 0.05 | 0.11 | |||||||||
EARNINGS PER SHARE - DILUTED | 0.08 | 0.24 | 0.05 | 0.11 | |||||||||
BASIC WEIGHTED AVERAGE SHARES | 17,121,826 | 17,101,048 | 17,071,646 | 17,067,801 | |||||||||
DILUTED WEIGHTED AVERAGE SHARES | 17,750,425 | 17,677,570 | 17,227,162 | 17,230,340 | |||||||||
