SOURCE: Plaza Bank

November 16, 2009 17:30 ET

Plaza Bank Announces Third Quarter Results

IRVINE, CA--(Marketwire - November 16, 2009) - Orange County-based Plaza Bank (the "Bank") today announced Third Quarter Financial Results for 2009. Those results, according to the Bank's recently released financial statements, showed strong growth in assets, deposits and loan activity over the prior year.

The Bank's net loss for the quarter ended September 30, 2009 was $793,000, compared to a net loss of $578,000 for the quarter ended September 30, 2008. The net loss for the nine months ended September 30, 2009 was $3,751,000, compared to $1,505,000 for the same period in 2008. Figures are unaudited.

The Bank's assets nearly doubled in just a nine month period from December 2008 to September 2009, going from $87.7 million at the end of last year to $158.8 million as of September of this year. At the same time, deposits also grew nearly 50 percent since December 2008, standing at a healthy $123 million in September 2009. These are encouraging results in even a strong economy, and to achieve them in current economic conditions is a testament to the strong management team, a focus on service, and loyal and growing customers of the Bank.

The Bank also saw its opening of new checking accounts nearly triple over the first five months of 2009, and recorded a 70% increase in deposit activity during that same period. On the expense side, the Bank's cost of funds dropped 26 basis points and resulted in a reduction in interest expenses of $25,000 a month. At the same time, the Bank's loan portfolio grew 32 percent, with $106 million in loans in September 2009 compared to $80 million in loans at the end of 2008. The Bank also benefited in 2009 from a $25 million capital infusion from PB Holdings and existing shareholders.

"Our growth in 2009 has been simply remarkable for this challenging economic climate," said Plaza Bank President Gene Galloway. "Our results point to the bank's continued focus on customer service, establishment of strong customer relationships, and quality controlled growth this year, as we have taken all the right steps to position the bank for the future."

Among those steps in mid-2009, Plaza Bank welcomed a new Executive Management team and expanded the existing Board of Directors, and secured a major capital infusion to pursue growth opportunities. The Bank also launched a new and expanded outreach program to become more visible in the communities it serves, and it has built a new software infrastructure to better monitor transactions. Added to that is a new Asset Based Lending program for small business borrowers that is now fully operational and complements the Bank's existing and well established Small Business Lending program. All programs have attracted positive media attention this year as well.

"We are very excited about the momentum we have built in 2009, particularly in attracting new checking account customers and small business borrowers, and in expanding contracts with and services to our existing customers. Seeing the market conditions, the Bank proactively has succeeded in reducing our construction loan portfolio and improving our risk management controls, avoiding many of the problems other community and even larger banks have faced," Galloway added. "We hope that momentum fuels an even more robust 2010 for us."

To review the financials spreadsheet, visit

About Plaza Bank

Plaza Bank is a full-service professional business bank based in Irvine, California. The Bank is dedicated to meeting the financial needs of the small business customer in Orange County and the adjacent counties.

For additional information, visit the Plaza Bank website at

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 describe future plans, strategies and expectations. 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.

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