Plaza Bank Reports Improved Earnings

Marketwired

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
                         
Contact:
Media
Gene Galloway
President & CEO
(702) 277-2221 or (949) 502-4309
Email Contact

Erich Bollinger
EVP and Chief Banking Officer
(949) 225-3704
Email Contact
View Comments (0)