SOURCE: Plaza Bank

Plaza Bank

April 15, 2014 06:00 ET

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  
                         
 

Contact Information

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

    Erich Bollinger
    Executive Vice President and Chief Banking Officer
    (949) 225-3704
    Email Contact