Plaza Bank Reports Third Quarter 2012 Earnings

Marketwired

IRVINE, CA--(Marketwire - Dec 6, 2012) - Plaza Bank (OTCBB: PLZB) (the "Bank") reported unaudited net income for the quarter ended September 30, 2012 of $860,000 or $0.05 per share on a diluted basis, an increase from the third quarter of 2011 of $385,000 or $0.02 per share on a diluted basis. For the nine months ended September 30, 2012, net income improved to $1.8 million, and $0.11 per diluted share, from $1.3 million, and $0.07 per diluted share, in the same nine months of 2011.

Gene Galloway, President and Chief Executive Officer of Plaza Bank, commenting on the year to date financial results stated, "Our annualized asset and net loan growth of 32% and 19%, respectively, is due to the Bank's personnel continuing to execute on our strategy of focusing on small to medium size businesses in the Southern California and Las Vegas markets. With the growth we have seen a 42% increase in our net income over the same period in the prior year."

Mr. Galloway, speaking on other changes at the Bank, said "Over the past few months Plaza has experienced great change. We have completed a conversion to a new state of the art core system that enhances our customer service. Additionally, we have relocated our Irvine branch and offices to a new Irvine facility to better meet the needs of our Orange County clientele."

Highlights for 2012's third quarter included:

  • Non-interest bearing demand deposits grew $16.2 million, or 165% annualized, in the Third quarter to $55.6 million as of September 30, 2012.
  • Loan origination for the third quarter totaled $44.0 million. Loan origination for the first nine months of 2012 totaled $125.5 million.
  • Loans outstanding, net of allowance for loan losses, totaled $306.0 million at the end of the quarter, an increase of $23.1 million, or 33% annualized, over the prior quarter balance. During the last 12 months, net loans have increased by $57.0 million, or 23%.
  • Noninterest income totaled $1.4 million in the third quarter of 2012, up from the third quarter of 2011 by $527,000 yet a decrease from the second quarter of 2012 by $629,000.
  • During the quarter the Bank sold $7.7 million of SBA 504 and 7A loans compared to $18.6 million for the second quarter of 2012. The loan sales generated gains of $543,000 and $1.4 million for the third and second quarters, respectively.

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  
                   
                   
    September 30,     December 31,     September 30,  
ASSETS   2012     2011     2011  
    (Unaudited)     (Audited)     (Unaudited)  
                         
Cash and cash equivalents   $ 54,471,000     $ 16,817,000     $ 49,746,000  
Investment securities - available for sale     25,586,000       21,142,000       24,449,000  
                         
Net loans     306,031,000       268,640,000       249,073,000  
                         
Goodwill and Other intangibles     5,239,000       5,399,000       5,374,000  
Idemnification Asset     2,948,000       6,004,000       8,189,000  
Accrued interest and Other Assets     18,884,000       14,638,000       14,382,000  
                         
TOTAL ASSETS   $ 413,159,000     $ 332,640,000     $ 351,213,000  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                        
                         
Deposits                        
Noninterest-bearing Demand   $ 55,621,000     $ 35,969,000     $ 40,491,000  
Savings, Now and Money Market Accounts     150,188,000       95,203,000       104,263,000  
Time Deposits     140,869,000       132,213,000       141,569,000  
  Total Deposits   $ 346,678,000     $ 263,385,000     $ 286,323,000  
                         
Borrowings     12,000,000       20,000,000       15,500,000  
Accrued Interest and Other Liabilities     5,839,000       2,616,000       3,300,000  
Total liabilities     364,517,000       286,001,000       305,123,000  
                         
Total Stockholders' Equity     48,642,000       46,639,000       46,090,000  
                         
    $ 413,159,000     $ 332,640,000     $ 351,213,000  
                         
BASIC BOOK VALUE PER SHARE   $ 2.85     $ 2.74     $ 2.71  
                         
DILUTED BOOK VALUE PER SHARE   $ 2.82     $ 2.70     $ 2.67  
                         
BASIC SHARES OUTSTANDING AT PERIOD END     17,077,950       17,017,554       17,010,888  
                         
DILUTED SHARES OUTSTANDING AT PERIOD END     17,220,134       17,285,032       17,285,032  
                         
                         
Capital Ratios End of Period:                        
  Tier 1 leverage ratio     10.91 %     12.24 %     12.33 %
  Tier 1 risk-based capital ratio     13.78 %     15.57 %     16.21 %
  Risk-based capital ratio     15.01 %     16.83 %     17.16 %
                           
 
Plaza Bank
Statement of Operations
(unaudited)
 
    Quarter-to-Date   Year-to-Date   Quarter-to-Date   Year-to-Date
    (unaudited)   (unaudited)   (unaudited)   (unaudited)
    September 30,   September 30,   September 30,   September 30,
    2012   2012   2011   2011
                         
Interest Income     4,957,000     13,570,000     3,948,000     11,785,000
Interest Expense     866,000     2,515,000     855,000     2,711,000
  Net Interest Income   $ 4,091,000   $ 11,055,000   $ 3,093,000   $ 9,074,000
                         
Provisions for Loan Losses     817,000     1,452,000     87,000     979,000
Net Interest Income after                        
  Provisions for Loan Losses     3,274,000     9,603,000     3,006,000     8,095,000
                         
Noninterest Income     1,379,000     4,182,000     852,000     3,050,000
Noninterest Expense     3,567,000     11,085,000     3,226,000     9,616,000
Loss before Income Taxes     1,086,000     2,700,000     632,000     1,529,000
Provisions (benefits) for Income Taxes     226,000     890,000     247,000     253,000
Net Income (Loss)   $ 860,000   $ 1,810,000   $ 385,000   $ 1,276,000
                         
EARNINGS PER SHARE - BASIC     0.05     0.11     0.02     0.08
                         
EARNINGS PER SHARE - DILUTED     0.05     0.11     0.02     0.07
                         
BASIC WEIGHTED AVERAGE SHARES     17,071,284     17,067,679     17,010,888     17,006,489
                         
DILUTED WEIGHTED AVERAGE SHARES     17,226,800     17,230,340     17,276,044     17,274,119
                         
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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