SOURCE: Plaza Bank

Plaza Bank

April 14, 2015 22:00 ET

Plaza Bank Announces 2015 First Quarter's Financial Results

IRVINE, CA--(Marketwired - Apr 14, 2015) - Plaza Bank (OTCBB: PLZB) (the "Bank") today reported unaudited net income for the first quarter of 2015 of $1,622,000 or $0.09 per share on a diluted basis, a decrease of 5.1% compared to the prior year's first quarter net income of $1,710,000 or $0.09 per share on a diluted basis. For the quarter ended March 31, 2015, the Bank's annualized return on average assets was 1.18% and annualized return on average equity was 10.62%, down from an annualized return on average assets of 1.40% and an annualized return on average equity of 12.35% for the 2014 comparable period.

Gene Galloway, President and Chief Executive Officer of the Bank, commenting on the first quarter, "In the first quarter we announced the merger with Bank of Manhattan, N.A. ("Manhattan"), started a system conversion project of Manhattan's accounts and settled the Department of Justice investigation. These actions did negatively affect our results by increasing our professional expenses by $266,000. However, these challenges did not affect our sales force as they were able to generate $56 million in loan origination, in which is normally our slowest quarter. Additionally, their pipeline is our largest ever at $60 million for the next two months."

Mr. Galloway further stated, "I would be remiss if I did not mention our Special Asset Group. These employees have reduced our non-performing loans over the past 12 months by more than half to 0.66% of total loans. They are in the process of finalizing certain FDIC acquired loans that will generate additional income for us in the second quarter and lower our non-performing loans further."

Highlights for the first quarter of 2015 included:

  • Net interest margin ("NIM") for the quarter increased 28 basis points to 4.99% compared to last year NIM of 4.71% primarily due to an increase in prepayment penalty fees and a 7 basis point decrease in our funding cost.
  • Loan interest for the quarter ended March 31, 2015 was $7.2 million, an increase of $1.2 million, or 19.8%, compared to the prior year's first quarter.
  • Loan sales for the quarter totaled $9.7 million and generated a gain on sale of $686,000. For the quarter a year ago, loan sales totaled $13.2 million for a gain of $922,000.
  • Total loans outstanding grew by 19.5%, or $80.0 million, compared to the prior year's first quarter-end, ending the quarter at $490.0 million.
  • Total assets at quarter end were $569.8 million, up 13.2%, or $66.6 million, from the first quarter of 2014.
  • Loan originations for the quarter totaled $56.4 million, down slightly, $786,000, compared to the fourth quarter of 2014, but up 61.4%, or $21.4 million, from the prior year's first quarter.
  • Non-performing assets fell 54.1%, or $3.8 million, to $3.2 million over the past year. The ratio of non-performing loans to total loans was 0.66% as of March 31, 2015.
  • The Bank's efficiency ratios for the quarters ended March 31, 2015 and 2014 were 63.1% and 60.9%, respectively. Subtracting out the one time expenses associated with the DOJ investigation and the Manhattan merger and conversion the efficiency ratios would have been 59.7% and 59.9% for the first quarters of 2015 and 2014, respectively.
  • Tangible book value per share at quarter-end was up 10.9%, or $0.33, to $3.35 compared to a year earlier.

At March 31, 2015, the Bank exceeded all regulatory capital requirements with a ratio for tier 1 leverage capital of 10.31%, tier 1 risked-based capital of 11.52% and total risk-based capital of 12.77%. 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.

On January 14, 2015, Plaza announced the execution of a definitive agreement providing for the merger of Bank of Manhattan, N.A. with and into Plaza Bank. The combined bank will continue to serve its Southern California and Southern Nevada customer base and all existing branches of both banks will remain open after the merger. On a pro forma basis, based on financial information as of December 31, 2014, the banks together have assets of approximately $1.0 billion, with deposits of approximately $850 million.

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:  
                 
                 
  March 31,     December 31,     March 31,  
ASSETS 2015     2014     2014  
  (unaudited)     (Audited)     (unaudited)  
                       
Cash and cash equivalents $ 53,748,000     $ 41,003,000     $ 51,770,000  
Investment securities - available for sale   13,412,000       16,492,000       23,476,000  
                       
Loans held for sale   6,750,000       3,159,000       473,000  
                       
Loans held for investment   483,213,000       479,086,000       409,478,000  
Allowance for possible credit losses   (6,381,000 )     (6,119,000 )     (5,097,000 )
Net loans held for investment   476,832,000       472,967,000       404,381,000  
                       
Goodwill and Other intangibles   6,128,000       6,159,000       5,924,000  
Idemnification Asset   1,685,000       1,920,000       2,411,000  
Accrued interest and Other Assets   11,228,000       12,405,000       14,706,000  
                       
TOTAL ASSETS $ 569,783,000     $ 554,105,000     $ 503,141,000  
                       
LIABILITIES AND STOCKHOLDERS' EQUITY                      
                       
Deposits                      
Noninterest-bearing Demand $ 90,015,000     $ 94,164,000     $ 88,609,000  
Savings, Now and Money Market Accounts   201,379,000       169,893,000       158,960,000  
Time Deposits   182,384,000       199,169,000       150,768,000  
Total Deposits $ 473,778,000     $ 463,226,000     $ 398,337,000  
                       
Borrowings   28,000,000       23,000,000       44,263,000  
Accrued Interest and Other Liabilities   6,378,000       7,931,000       4,625,000  
Total Liabilities   508,156,000       494,157,000       447,225,000  
                       
Total Stockholders' Equity   61,627,000       59,948,000       55,916,000  
                       
  $ 569,783,000     $ 554,105,000     $ 503,141,000  
                       
BASIC BOOK VALUE PER SHARE $ 3.58     $ 3.49     $ 3.26  
                       
DILUTED BOOK VALUE PER SHARE $ 3.38     $ 3.31     $ 3.08  
                       
TANGIBLE BOOK VALUE PER SHARE $ 3.35     $ 3.26     $ 3.02  
                       
BASIC SHARES OUTSTANDING AT PERIOD END   17,229,300       17,179,300       17,136,800  
                       
DILUTED SHARES OUTSTANDING AT PERIOD END   18,247,805       18,092,213       18,161,644  
                       
                       
Capital Ratios End of Period:                      
    Tier 1 leverage ratio   10.31 %     10.27 %     10.44 %
    Tier 1 risk-based capital ratio   11.52 %     11.34 %     11.47 %
    Risk-based capital ratio   12.77 %     12.59 %     12.69 %
                       
                       
                       
Plaza Bank  
Statement of Operations  
   
  Quarter-to-Date     Quarter-to-Date     Quarter-to-Date  
  (unaudited)     (unaudited)     (unaudited)  
  March 31,     December 31,     March 31,  
  2015     2014     2014  
                       
Interest Income   7,371,000       7,155,000       6,214,000  
Interest Expense   792,000       836,000       781,000  
    Net Interest Income $ 6,579,000     $ 6,319,000     $ 5,433,000  
                       
Provisions for Loan Losses   261,000       574,000       19,000  
Net Interest Income after                      
    Provisions for Loan Losses   6,318,000       5,745,000       5,414,000  
                       
Noninterest Income   1,053,000       1,483,000       1,636,000  
Noninterest Expense   4,872,000       4,530,000       4,358,000  
Income before Income Taxes   2,499,000       2,698,000       2,692,000  
Provisions for Income Taxes   877,000       1,071,000       982,000  
Net Income $ 1,622,000     $ 1,627,000     $ 1,710,000  
                       
EARNINGS PER SHARE - BASIC   0.09       0.09       0.10  
                       
EARNINGS PER SHARE - DILUTED   0.09       0.09       0.09  
                       
BASIC WEIGHTED AVERAGE SHARES   17,179,300       17,168,974       17,135,184  
                       
DILUTED WEIGHTED AVERAGE SHARES   18,171,734       18,119,327       18,304,072  
                       

Contact Information

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

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