SOURCE: Plaza Bank

Plaza Bank

May 04, 2016 20:21 ET

Plaza Bancorp, the Holding Company of Plaza Bank, Announces Financial Results for the Quarter Ended March 31, 2016 (unaudited)

IRVINE, CA--(Marketwired - May 4, 2016) - Plaza Bancorp (OTCBB: PLZZ) (the "Company"), the holding company of Plaza Bank (the "Bank"), reported unaudited net income for the quarter ended March 31, 2016 of $2.3 million or $0.08 per share on a diluted basis. For the quarter ended March 31, 2015, the unaudited net loss using the pooling of interest method as a result of the Company's merger with Manhattan Bancorp on June 26, 2015, was ($207,000) or ($0.01) per share on a diluted basis. For the quarter ended March 31, 2016, the Company's return on average assets was 0.89% and return on average equity was 8.53%, up from a return on average assets of (0.08%) and a return on average equity of (2.29%) for the comparable period in 2015.

Gene Galloway, President and Chief Executive Officer of the Company and the Bank, commenting on the Bank's progress, stated, "With the demands of the merger integration behind us, the Bank's personnel for the last two quarters have been focused on building and retaining customer relationships. Through these individuals efforts our loans held for investment have grown 21.5% on an annualized basis, or $89 million, over the last six months. Our loan interest income increased 14.8% on an annualized basis, or $463,000, in the first quarter of 2016 over the fourth quarter of 2015. Furthermore, our loan quality remains excellent with non-accrual loans and loans over 30 days past due as of March 31, 2016 being 0.1% and 0.2% of the Bank's loans held for investment, respectively."

Mr. Galloway concluded by stating, "With our loan origination platform performing strongly, we are now focusing on building our branch brand and our deposit base to support our strong loan pipeline."

Highlights for quarter ended March 31, 2016 included:

  • Loan originations by the Bank in the first quarter totaled $86.6 million
  • Loans held for investment grew $36.2 million, or 16.4% annualized, to $918.4 million during the first quarter 
  • The Company's loans held for investment to deposit ratio as of March 31, 2016 was 103.5%
  • During the quarter, the Company realized a gain of $732,000 on the sale of $10.5 million of SBA 7(a) loans
  • For the quarter, the Company's net interest margin ("NIM") improved 21 points to 4.71% compared to the quarter ended December 31, 2015 
  • Non-accrual loans totaled $1.0 million or 0.11% of the loans held for investment at March 31, 2016
  • The ratio of allowance for loan losses to total loans held for investment was 1.32% at March 31, 2016. Including the $2.5 million credit discount on acquired loans in the ratio, the ratio increases to 1.59%
  • The Company's efficiency ratio for the quarter was 68%
  • Tangible book value per diluted share increased 9 cents to $3.31 during the first quarter.

Net interest income for the quarter ended March 31, 2016 totaled $11.7 million. Loan interest income totaled $13.0 million, the average of total outstanding loans for the quarter was $896.8 million and the annualized yield was 5.81%. Interest expense related to deposits was $961,000 for the quarter, or 44 basis points annualized. The interest expense related to the subordinated debentures for the quarter was $453,000, or 7.245% annualized.

The Company recorded a $587,000 provision for loan losses during the first quarter of 2016 principally as a result of the $36.2 million loan growth. Net recoveries for the period totaled $8,000. Non-accrual loans totaled $1.0 million at March 31, 2016. 

Non-interest income for the first quarter of 2016 was $2.3 million. Non-interest income for the first quarter is primarily comprised of net gain from the sale of loans of $732,000, loan servicing income of $372,000, deposit fee income of $305,000, loan referral fee income of $169,000 and other fee income totaling $419,000.

Non-interest expense totaled $9.7 million for the first quarter of 2016. Compensation and benefits comprises 64.6%, or $6.3 million, of the total non-interest expense. The Company had 156 full-time equivalent employees as of March 31, 2016.

For the first quarter of 2016, the Company's effective tax rate was 36.8% for a total tax expense of $1.4 million for the quarter. In the first quarter, the Company recognized a $151,000 tax benefit from an adjustment of the prior year's taxes.

At March 31, 2016, the Company's ratio of tangible common equity to total assets was 9.12%, with a tangible book value of $3.31 per diluted share and a diluted book value per share of $3.65 per share.

At March 31, 2016, the Bank exceeded all regulatory capital requirements with a ratio for tier 1 leverage capital of 10.85%, common equity tier 1 risk-based capital of 11.50%, tier 1 risked-based capital of 11.50% and total risk-based capital of 12.75%. These capital ratios exceeded the "well capitalized" standards defined by the federal banking regulators of 5.00% for tier 1 leverage capital, 6.5% for common equity tier 1 risk-based capital, 8.00% for tier 1 risk-based capital and 10.00% for total risk-based capital. At March 31, 2016, the Company had a ratio for tier 1 leverage capital of 8.96%, common equity tier 1 risk-based capital of 9.49%, tier 1 risk-based capital of 9.49% and total risk-based capital of 13.29%.

       
Plaza Bancorp 3/31/2016   12/31/2015
  Tier 1 leverage ratio 8.96%   8.56%
  Tier 1 risk-based capital ratio 9.49%   9.35%
  Common equity tier 1 capital ratio 9.49%   9.35%
  Risk-based capital ratio 13.29%   13.24%
       
       
Plaza Bank      
  Tier 1 leverage ratio 10.85%   10.48%
  Tier 1 risk-based capital ratio 11.50%   11.44%
  Common equity tier 1 capital ratio 11.50%   11.44%
  Risk-based capital ratio 12.75%   12.70%
         

About Plaza Bancorp

Plaza Bancorp is the holding company of Plaza Bank. Plaza Bank is a full service community bank serving the business and professional communities in Southern California and Southern 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. Plaza Bank meets its customers' needs through its eight regional offices located in the cities of El Segundo, Glendale, Irvine, Las Vegas, Manhattan Beach, Montebello, Pasadena and San Diego. For more information, visit www.plazabank.com 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 Company, 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 Bancorp  
Consolidated Condensed Statements of Financial Condition  
(Unaudited)  
                   
(dollars in thousands)   March 31,     December 31,     March 31,  
ASSETS   2016     2015     2015 *  
                         
Cash and cash equivalents   $ 78,801     $ 97,576     $ 105,518  
Investment securities - available for sale     29,505       28,215       39,836  
                         
Loans held for sale     5,033       4,535       44,756  
                         
Loans held for investment     918,442       882,199       823,949  
Allowance for possible credit losses     (12,101 )     (11,506 )     (9,691 )
Net loans held for investment     906,341       870,693       814,258  
                         
Goodwill and other intangibles     12,267       12,411       19,365  
Idemnification asset     631       762       1,685  
Accrued interest and other assets     35,920       36,540       40,104  
                         
TOTAL ASSETS   $ 1,068,498     $ 1,050,732     $ 1,065,522  
                         
LIABILITIES AND EQUITY                        
                         
Deposits                        
  Noninterest-bearing demand   $ 270,810     $ 316,516     $ 298,401  
  Savings, now and money market accounts     402,068       355,515       360,390  
  Time deposits     214,930       211,998       228,594  
    Total Deposits     887,808       884,029       887,385  
                         
Borrowings     61,704       48,696       34,613  
Accrued interest and other liabilities     9,288       10,738       11,667  
    Total Liabilities     958,800       943,463       933,665  
                         
                         
Total stockholders' equity for Plaza Bancorp     109,698       107,269       125,405  
Non controlling interest in Plaza Bank     -       -       6,452  
Total Equity     109,698       107,269       131,857  
                         
TOTAL LIABILITIES AND EQUITY   $ 1,068,498     $ 1,050,732     $ 1,065,522  
                         
BASIC BOOK VALUE PER DILUTED SHARE   $ 3.62     $ 3.54     $ 4.28  
                         
TANGIBLE BOOK VALUE PER DILUTED SHARE   $ 3.31     $ 3.22     $ 3.94  
                         
BASIC SHARES OUTSTANDING AT PERIOD END     30,034,244       30,034,244       29,434,212  
                         
DILUTED SHARES OUTSTANDING AT PERIOD END     30,262,209       30,296,867       30,843,255  
                         
           
Capital Ratios End of Period:          
  Tier 1 leverage ratio 8.96 % 8.56 %  
  Tier 1 risk-based capital ratio 9.49 % 9.35 %  
  Common equity tier 1 capital ratio 9.49 % 9.35 %  
  Risk-based capital ratio 13.29 % 13.24 %  
           
*Pooling of Interest with Manhattan Bancorp          
                 
                 
Plaza Bancorp  
Consolidated Condensed Statements of Operations  
For the Quarter  
(Unaudited)  
                 
  March 31,     December 31,     March 31,  
  2016     2015     2015 *  
                       
(dollars in thousands)                      
Interest income $ 13,183     $ 12,722     $ 12,788  
Interest expense   1,490       1,429       1,069  
  Net Interest Income   11,693       11,293       11,719  
                       
Provisions for loan losses   587       1,428       261  
Net interest income after                      
  Provisions for Loan Losses   11,106       9,865       11,458  
                       
Noninterest income   2,286       3,043       1,936  
Noninterest expense   9,712       8,791       11,014  
Income before income taxes   3,680       4,117       2,380  
Provisions for income taxes   1,356       723       815  
Income from continuing operations   2,324       3,394       1,565  
                       
Gain (loss) on discontinued operations   -       4       (1,772 )
                       
Net income before noncontrolling interest in Plaza Bank   2,324       3,398       (207 )
Less: Net income attributed to noncontrolling interst in Plaza Bank   -       -       (166 )
Net income (loss) $ 2,324     $ 3,398     $ (373 )
                       
EARNINGS (LOSS) PER SHARE - BASIC $ 0.08     $ 0.11     $ (0.01 )
                       
EARNINGS (LOSS) PER SHARE - DILUTED $ 0.08     $ 0.11     $ (0.01 )
                       
BASIC WEIGHTED AVERAGE SHARES   30,034,244       30,038,188       29,434,212  
                       
DILUTED WEIGHTED AVERAGE SHARES   30,262,209       30,293,267       30,843,255  
                       
RETURN ON AVERAGE ASSETS   0.89 %     1.30 %     -0.14 %
                       
RETURN ON AVERAGE EQUITY   8.53 %     12.83 %     -1.15 %
                       
*Pooling of Interest with Manhattan Bancorp            
                 
                 
                 
Plaza Bancorp  
Loans Held for Investment Portfolio Composition  
                 
  March 31,     December 31,     March 31,  
  2016     2015     2015 *  
(dollars in thousands)                      
Construction and land development $ 11,960     $ 12,906     $ 9,381  
Commercial real estate and other   558,048       522,739       490,636  
Commercial   167,381       162,485       173,699  
Residential real estate   130,106       131,051       100,403  
Consumer   59,566       56,656       53,914  
Deferred loan fees and discounts, net of costs   (3,586 )     (3,638 )     (4,084 )
Total   923,475       882,199       823,949  
Allowance for loan losses   (12,101 )     (11,506 )     (9,691 )
Total net loans $ 911,374     $ 870,693     $ 814,258  
                       
*Pooling of Interest with Manhattan Bancorp                      
                       
  Non-Performing Assets  
     
  March 31,     December 31,     March 31,  
  2016     2015     2015 *  
(dollars in thousands)                      
Non-Accrual Assets                      
                       
Loans $ 1,014     $ 1,236     $ 3,440  
OREO   206       206       206  
                       
Delinquency Loans                      
30 - 89 Days past due $ 1,757     $ 3,487     $ 2,709  
90 days and greater   2       109       109  
                       
*Pooling of Interest with Manhattan Bancorp            
                       

Contact Information

  • Media Contacts:
    Gene Galloway
    President and Chief Executive Officer
    (702) 277-2221 or (949) 502-4309
    Email Contact

    John Shindler
    Executive Vice President and Chief Financial Officer
    (949) 225-3704
    Email Contact