Plaza Bank Announces 2014 First Quarter's Financial Results
IRVINE, CA--(Marketwired - Apr 15, 2014) - Plaza Bank (OTCBB: PLZB) (the "Bank") today reported unaudited net income for the first quarter of 2014 of $1,710,000 or $0.09 per share on a diluted basis, an increase of 35.8% compared to the prior year's first quarter net income of $1,259,000 or $0.07 per share on a diluted basis. For the quarter ended March 31, 2014, the Bank's annualized return on average assets was 1.40% and annualized return on average equity was 12.35%, up from an annualized return on average assets of 1.22% and an annualized return on average equity of 10.13% for the 2013 comparable period.
Gene Galloway, President and Chief Executive Officer of the Bank, commenting on the continuing improvement in net income, stated, "Plaza Bank continues to focus on its well defined product sets in the markets we serve. This focus, coupled with consistent loan and deposit growth, has allowed us to increase our overall profitability on a monthly and quarterly basis. We have seen progressively higher core earnings over the past 15 consecutive quarters. This consistent improvement is a tribute to the hard work and performance of our employees coupled with the recovering markets in Southern California and Southern Nevada."
Highlights for the first quarter of 2014 included:
Total assets at quarter end were $503.1 million, up 14.9%, or $65.1 million, from the first quarter of 2013.
Total loans outstanding grew by 16.5%, or $58.1 million, compared to prior year's first quarter-end, ending the quarter at $410.0 million.
Matching our loan growth over the same period was our deposit growth which increased by 16.9%, or $57.6 million, to $398.3 million.
Loan interest for the quarter ended March 31, 2014 was $6.0 million, an increase of $583,000 compared to the prior year's first quarter.
Net interest margin ("NIM") for the quarter was 4.60%.
Loan sales for the quarter totaled $13.2 million and generated gains on sale of $922,000. A year ago loan sales totaled $16.5 million for a gain of $1.2 million.
The Bank's efficiency ratio improved on both a linked quarter and year-over-year basis to 60.9% from 71.2% and 64.4%, respectively.
Tangible book value per share at quarter-end was up 12%, or $0.33, to $3.02 compared to a year earlier.
At March 31, 2014, the Bank exceeded all regulatory capital requirements with a ratio for tier 1 leverage capital of 10.44%, tier 1 risked-based capital of 11.47% and total risk-based capital of 12.69%. These capital ratios exceeded the "well capitalized" standards defined by the federal banking regulators of 5.00% for tier 1 leverage capital, 6.00% for tier 1 risked-based capital and 10.00%, for total risk-based capital.
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 or (702) 277-2221.
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 claims or changes in existing litigation or claims; 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 | |||||||||||||
Statement of Financial Condition | |||||||||||||
For the Quarter and Year Ended: | |||||||||||||
March 31, | December 31, | March 31, | |||||||||||
ASSETS | 2014 | 2013 | 2013 | ||||||||||
(unaudited) | (Audited) | (unaudited) | |||||||||||
Cash and cash equivalents | $ | 51,770,000 | $ | 39,315,000 | $ | 42,394,000 | |||||||
Investment securities - available for sale | 23,476,000 | 25,416,000 | 23,716,000 | ||||||||||
Loans held for sale | 473,000 | 4,521,000 | 281,000 | ||||||||||
Loans held for investment | 409,478,000 | 399,096,000 | 351,568,000 | ||||||||||
Allowance for possible credit losses | (5,097,000 | ) | (4,995,000 | ) | (4,055,000 | ) | |||||||
Net loans held for investment | 404,381,000 | 394,101,000 | 347,513,000 | ||||||||||
Goodwill and Other intangibles | 5,924,000 | 5,692,000 | 5,585,000 | ||||||||||
Idemnification Asset | 2,411,000 | 2,517,000 | 3,252,000 | ||||||||||
Accrued interest and Other Assets | 14,706,000 | 19,702,000 | 15,287,000 | ||||||||||
TOTAL ASSETS | $ | 503,141,000 | $ | 491,264,000 | $ | 438,028,000 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
Deposits | |||||||||||||
Noninterest-bearing Demand | $ | 88,609,000 | $ | 85,685,000 | $ | 60,168,000 | |||||||
Savings, Now and Money Market Accounts | 158,960,000 | 169,120,000 | 142,134,000 | ||||||||||
Time Deposits | 150,768,000 | 145,779,000 | 138,427,000 | ||||||||||
Total Deposits | $ | 398,337,000 | $ | 400,584,000 | $ | 340,729,000 | |||||||
Borrowings | 44,263,000 | 31,000,000 | 42,000,000 | ||||||||||
Accrued Interest and Other Liabilities | 4,625,000 | 5,644,000 | 5,013,000 | ||||||||||
Total Liabilities | 447,225,000 | 437,228,000 | 387,742,000 | ||||||||||
Total Stockholders' Equity | 55,916,000 | 54,036,000 | 50,286,000 | ||||||||||
$ | 503,141,000 | $ | 491,264,000 | $ | 438,028,000 | ||||||||
BASIC BOOK VALUE PER SHARE | $ | 3.26 | $ | 3.16 | $ | 2.94 | |||||||
DILUTED BOOK VALUE PER SHARE | $ | 3.08 | $ | 3.06 | $ | 2.85 | |||||||
TANGIBLE BOOK VALUE PER SHARE | $ | 3.02 | $ | 2.91 | $ | 2.69 | |||||||
BASIC SHARES OUTSTANDING AT PERIOD END | 17,136,800 | 17,130,739 | 17,084,010 | ||||||||||
DILUTED SHARES OUTSTANDING AT PERIOD END | 18,161,644 | 18,117,148 | 17,663,812 | ||||||||||
Capital Ratios End of Period: | |||||||||||||
Tier 1 leverage ratio | 10.44 | % | 10.25 | % | 11.07 | % | |||||||
Tier 1 risk-based capital ratio | 11.47 | % | 11.22 | % | 12.31 | % | |||||||
Risk-based capital ratio | 12.69 | % | 12.43 | % | 13.47 | % | |||||||
Plaza Bank | |||||||||||||
Statement of Operations | |||||||||||||
Quarter-to-Date | Quarter-to-Date | Quarter-to-Date | |||||||||||
(unaudited) | (unaudited) | (unaudited) | |||||||||||
March 31, | December 31, | March 31, | |||||||||||
2014 | 2013 | 2013 | |||||||||||
Interest Income | 6,214,000 | 6,124,000 | 5,598,000 | ||||||||||
Interest Expense | 781,000 | 794,000 | 732,000 | ||||||||||
Net Interest Income | $ | 5,433,000 | $ | 5,330,000 | $ | 4,866,000 | |||||||
Provisions for Loan Losses | 19,000 | 544,000 | 268,000 | ||||||||||
Net Interest Income after | |||||||||||||
Provisions for Loan Losses | 5,414,000 | 4,786,000 | 4,598,000 | ||||||||||
Noninterest Income | 1,636,000 | 1,441,000 | 1,857,000 | ||||||||||
Noninterest Expense | 4,358,000 | 4,875,000 | 4,380,000 | ||||||||||
Income before Income Taxes | 2,692,000 | 1,352,000 | 2,075,000 | ||||||||||
Provisions for Income Taxes | 982,000 | 408,000 | 816,000 | ||||||||||
Net Income | $ | 1,710,000 | $ | 944,000 | $ | 1,259,000 | |||||||
EARNINGS PER SHARE - BASIC | 0.10 | 0.06 | 0.07 | ||||||||||
EARNINGS PER SHARE - DILUTED | 0.09 | 0.05 | 0.07 | ||||||||||
BASIC WEIGHTED AVERAGE SHARES | 17,135,184 | 17,130,739 | 17,084,010 | ||||||||||
DILUTED WEIGHTED AVERAGE SHARES | 18,304,072 | 18,538,802 | 17,212,356 | ||||||||||
