SOURCE: Plaza Bank

Plaza Bank

October 21, 2014 17:50 ET

Plaza Bank Announces 2014 Third Quarter Financial Results

IRVINE, CA--(Marketwired - Oct 21, 2014) -  Plaza Bank (OTCBB: PLZB) (the "Bank") today reported unaudited net income for the quarter ended September 30, 2014 of $1,363,000, representing an increase of $862,000, or 172%, from $501,000 for the quarter ended June 30, 2014, and representing a decrease of $26,000, or 2%, from net income of $1,389,000 for the same period one year ago. 

For the quarter ended September 30, 2014, the Bank reported earnings per diluted share of $0.08, compared with $0.03 for the quarter ended June 30, 2014 and $0.08 for the quarter ended September 30, 2013.

For the nine months ended September 30, 2014, the Bank reported net income of $3,574,000, representing a $711,000, or 16.6%, decrease compared to net income of $4,285,000 for the same period one year ago. For the nine months ended September 30, 2014, the Bank reported earnings per diluted share of $0.20, compared to $0.23 for the nine months ended September 30, 2013.

For the quarter ended September 30, 2014, the Bank's annualized return on average assets and return on average equity were 1.04% and 9.42%, respectively, and compared to 0.40% and 3.53%, respectively, for the quarter ended June 30, 2014 and 1.18% and 10.50%, respectively, for the same period in 2013. For the nine months ended September 30, 2014, the Bank's annualized return on average assets and return on average equity were 0.94% and 8.41%, respectively, compared to 1.30% and 11.14%, respectively, for the same period in 2013.

Gene Galloway, Plaza Bank's President and Chief Executive Officer, stated, "Over the last 33 months, Plaza has had loan volume totaling approximately $550 million, or $16.5 million per month. This has led to continuous growth in the Bank's loan interest revenue which is up $2.0 million, or 11.5%, year-to-date compared to the same period in 2013. Additionally, Plaza's loans outstanding have grown $61 million, or 16%, since September 30, 2013."

In conclusion Mr. Galloway said, "Plaza's success in these challenging economic times is attributable to our loan generation teams and the support they get from the communities we serve. The key to our continuing success is staying true to who and what we are: a small business oriented community bank that provides excellent service and strives to exceed the expectations of our clients, shareholders and employees."

Highlights for the nine months and quarter ended September 30, 2014 included:

  • Loan interest for the quarter ended September 30, 2014 was $6.6 million, an increase on both a linked quarter and year-over-year basis of $105,000 and $627,000, respectively.
  • For the quarter, the Bank's loan portfolio yielded 6.05% and net interest margin ("NIM") was 4.61%. For the nine months ended September 30, 2014 the Bank's loan yield and NIM were 6.00% and 4.65%, respectively.
  • Total loans outstanding grew by $14.5 million, or 3.4%, to $445.5 million during the quarter compared to the prior quarter. For the last twelve months, total loans increased by $61.3 million, or 16.0%.
  • Loan originations increased in the third quarter on both a linked quarter and prior year same quarter basis to $67.9 million from $49.0 million and $43.8 million, respectively.
  • For the quarter, net charge-offs totaled $66,000 and for the nine months the Bank has a net recovery of $17,000. Total provision expense for the nine months was $745,000.
  • During the quarter, the Bank sold $15.4 million of SBA 7a loans that generated $1.1 million in gains, an increase in gain on sale income on both a linked quarter and year-over-year basis of $406,000 and $428,000, respectively.
  • Total assets as of September 30, 2014 were $524.5 million, down $8.8 million, or1.6%, from the second quarter of 2014 and up $33.3 million, or 6.8%, year-to-date.
  • Tangible book value per share at quarter-end was up $0.29, or 10%, to $3.16 compared to $2.87 a year earlier.

At September 30, 2014, the Bank exceeded all regulatory capital requirements with a ratio for tier 1 leverage capital of 10.11%, tier 1 risked-based capital of 11.68% and total risk-based capital of 12.93%. 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.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 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:  
                   
                   
    September 30,     December 31,     September 30,  
ASSETS   2014     2013     2013  
    (unaudited)     (Audited)     (unaudited)  
                         
Cash and cash equivalents   $ 47,877,000     $ 39,315,000     $ 46,488,000  
Investment securities - available for sale     16,503,000       25,416,000       24,222,000  
                         
Loans held for sale     7,346,000       4,521,000       801,000  
                         
Loans held for investment     438,142,000       399,096,000       383,390,000  
Allowance for possible credit losses     (5,758,000 )     (4,995,000 )     (4,599,000 )
Net loans held for investment     432,384,000       394,101,000       378,791,000  
                         
Goodwill and Other intangibles     6,066,000       5,692,000       5,816,000  
Idemnification Asset     2,116,000       2,517,000       2,987,000  
Accrued interest and Other Assets     12,238,000       19,702,000       14,527,000  
                         
TOTAL ASSETS   $ 524,530,000     $ 491,264,000     $ 473,632,000  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                        
                         
Deposits                        
Noninterest-bearing Demand   $ 85,491,000     $ 85,685,000     $ 80,063,000  
Savings, Now and Money Market Accounts     176,664,000       169,120,000       167,825,000  
Time Deposits     178,902,000       145,779,000       149,751,000  
  Total Deposits   $ 441,057,000     $ 400,584,000     $ 397,639,000  
                         
Borrowings     18,000,000       31,000,000       18,000,000  
Accrued Interest and Other Liabilities     7,287,000       5,644,000       4,719,000  
  Total Liabilities     466,344,000       437,228,000       420,358,000  
                         
Total Stockholders' Equity     58,186,000       54,036,000       53,274,000  
                         
    $ 524,530,000     $ 491,264,000     $ 473,632,000  
                         
BASIC BOOK VALUE PER SHARE   $ 3.39     $ 3.15     $ 3.11  
                         
DILUTED BOOK VALUE PER SHARE   $ 3.22     $ 2.98     $ 2.87  
                         
TANGIBLE BOOK VALUE PER SHARE   $ 3.16     $ 2.91     $ 2.87  
                         
BASIC SHARES OUTSTANDING AT PERIOD END     17,139,300       17,130,739       17,130,739  
                         
DILUTED SHARES OUTSTANDING AT PERIOD END     18,083,879       18,117,148       18,577,184  
                         
Capital Ratios End of Period:                        
  Tier 1 leverage ratio     10.11 %     10.25 %     10.45 %
  Tier 1 risk-based capital ratio     11.68 %     11.22 %     12.15 %
  Risk-based capital ratio     12.93 %     12.43 %     13.34 %
                         

 

                       
                       
Plaza Bank  
Statement of Operations  
           
    Quarter-to-Date   Quarter-to-Date   Quarter-to-Date   Year-to-Date   Year-to-Date  
    (unaudited)   (unaudited)   (unaudited)   (unaudited)   (unaudited)  
    September 30,   June 30,   September 30,   September 30,   September 30,  
    2014   2014   2013   2014   2013  
                                 
  Loans $ 6,564,000   $ 6,459,000   $ 5,937,000   $ 19,072,000   $ 17,101,000  
  Other interest-earning assets   147,000     156,000     136,000     468,000     390,000  
    Net Interest Income   6,711,000     6,615,000     6,073,000     19,540,000     17,491,000  
                               
INTEREST EXPENSE:                              
  Transaction account deposits   261,000     242,000     242,000     748,000     653,000  
  Retail certificates of deposit Provisions for Loan Losses   355,000     309,000     293,000     940,000     875,000  
  Wholesale/Brokered certificates of deposit   140,000     146,000     176,000     438,000     491,000  
      756,000     697,000     711,000     2,126,000     2,019,000  
  FHLB and other borrowings   51,000     70,000     93,000     229,000     256,000  
                               
    Total interest expense   807,000     767,000     804,000     2,355,000     2,275,000  
    NET INTEREST INCOME   5,904,000     5,848,000     5,269,000     17,185,000     15,216,000  
                               
PROVISION FOR LOAN LOSSES   228,000     498,000     181,000     745,000     826,000  
                               
NET INTEREST INCOME AFTER   5,676,000     5,350,000     5,088,000     16,440,000     14,390,000  
                               
NONINTEREST INCOME:                              
  Loan servicing and other fees   243,000     272,000     253,000     747,000     685,000  
  Bank and other fee income   79,000     101,000     90,000     275,000     264,000  
  Net gain (loss) from loan sales   1,110,000     704,000     682,000     2,736,000     2,572,000  
  Net gain (loss) from other real estate owned sales   5,000     (121,000 )   (1,000 )   (116,000 )   109,000  
  Net gain (loss) on sale of securities   -     -     -     (21,000 )   -  
  Acquisition-related gain   -     -     624,000     -     624,000  
  Other income   245,000     255,000     256,000     283,000     353,000  
    Total noninterest (loss) income   1,682,000     1,082,000     1,888,000     4,400,000     5,426,000  
                               
NONINTEREST EXPENSE                              
  Compensation and benefits   3,082,000     2,816,000     2,876,000     8,843,000     8,268,000  
  Premises and occupancy   326,000     320,000     378,000     974,000     1,039,000  
  Data processing   254,000     256,000     282,000     761,000     745,000  
  Other real estate owned expenses   1,000     2,000     2,000     4,000     151,000  
  FDIC insurance premiums   74,000     72,000     66,000     212,000     211,000  
  Professional Fees   566,000     1,161,000     462,000     2,019,000     1,036,000  
  Marketing expense   127,000     105,000     92,000     356,000     286,000  
  Office and postage expense   34,000     33,000     43,000     100,000     121,000  
  Other expense   481,000     316,000     388,000     1,115,000     1,134,000  
    Total noninterest expense   4,945,000     5,081,000     4,589,000     14,384,000     12,991,000  
                               
INCOME BEFORE INCOME TAXES   2,413,000     1,351,000     2,387,000     6,456,000     6,825,000  
PROVISION FOR INCOME TAXES   1,050,000     850,000     998,000     2,882,000     2,540,000  
NET INCOME $ 1,363,000   $ 501,000   $ 1,389,000   $ 3,574,000   $ 4,285,000  
                               
EARNINGS PER SHARE - BASIC $ 0.08   $ 0.03     0.08   $ 0.21   $ 0.25  
                               
EARNINGS PER SHARE - DILUTED $ 0.08   $ 0.03     0.08   $ 0.20   $ 0.23  
                               
BASIC WEIGHTED AVERAGE SHARES   17,139,300     17,137,514     17,121,826     17,137,348     17,101,048  
                               
DILUTED WEIGHTED AVERAGE SHARES   18,083,879     18,384,724     18,035,835     18,259,004     18,500,368  
                               
RETURN ON AVERAGE ASSETS   1.04 %   0.40 %   1.18 %   0.94 %   1.30 %
                               
RETURN ON AVERAGE EQUITY   9.42 %   3.53 %   10.50 %   8.41 %   11.14 %
                               
EFFICIENCY RATIO   64.48 %   72.54 %   63.36 %   65.89 %   62.17 %

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