SOURCE: Plaza Bank

Plaza Bank

January 28, 2015 19:09 ET

Plaza Bank Announces Financial Results for the Year and Quarter Ended December 31, 2014

IRVINE, CA--(Marketwired - Jan 28, 2015) - January 28, 2015: Plaza Bank (OTCBB: PLZB) (the "Bank") reported unaudited net income for the year ended December 31, 2014 of $5.2 million or $0.29 per share on a diluted basis, the same as the prior year period. For the year ended December 31, 2014, the Bank's return on average assets was 1.01% and return on average equity was 9.07%, down from a return on average assets of 1.16% and a return on average equity of 10.05% for 2013.

Net income for the quarter ended December 31, 2014 was $1.6 million or $0.09 per share on a diluted basis, a $683,000, or 72%, increase compared to the fourth quarter of 2013's results of $944,000 or $0.05 per share on a diluted basis. For the quarter ended December 31, 2014, the Bank's return on average assets was 1.22% and return on average equity was 10.96%, up from a return on average assets of 0.79% and a return on average equity of 6.97% for the 2013 comparable period.

Gene Galloway, President and Chief Executive Officer of Plaza Bank, commenting on the 2014 net income, stated, "Our 2014 income numbers were affected by legal expenses and a settlement accrual that total $1.0 million after taxes for an investigation involving a third party payment processor that was a depositor with the Bank from 2007 through 2010. We do not expect future legal expenses related to the investigation to be material."

Mr. Galloway further commented on the Bank's overall results, "We have benefitted by the improving economies in the two communities that we serve, Southern California and Clark County, Nevada. In 2014, our non-performing assets decreased by 52%, net interest income increased by 14%, or $3.0 million, and noninterest expenses were higher by 5.9%, or $1.0 million which includes the aforementioned legal fees and settlement accrual. Excluding the expenses and accrual related to the investigation from both years' noninterest expenses, the increase is only 2%."

In conclusion, Mr. Galloway stated, "I am looking forward to our upcoming merger with Bank of Manhattan, that was announced on January 14, 2015, and working with their staff."

Results for the full year of 2014 included:

  • The Bank's net interest margin for the year was 4.70%, a slight decrease of 9 basis points compared to the prior year.
  • Loan interest income increased 13.1% to $26.1 million in 2014 compared to the prior year's loan interest income of $23.1 million.
  • Loans held for investment increased by $80.0 million, or 20.0%, in 2014 to $479.1 million from $399.1 million at the start of the year.
  • New loan commitments for 2014 totaled $209.0 million.
  • SBA 7A loan sales for 2014 totaled $50.0 million and generated gains on sale of $3.6 million.
  • Total assets grew by 12.7%, or $62.5 million, in 2014, a decrease from asset growth in 2013 of 16.7%, or $70.4 million.
  • Deposits grew by $62.6 million, or 12.7%, to $463.2 million during 2014 primarily driven by 52.1% and 9.8% increases in retail certificates of deposit and noninterest checking accounts, respectively.
  • Net charge-off was $195,000, or 0.05% of the beginning of year's loans held for investment outstanding balance. Provision expense for the year was $1.3 million.
  • Non-performing loans totaled $3.0 million, representing 0.62% of the Bank's loans held for investment, down from $5.5 million, or 1.37% of loans held for investments, at December 31, 2013.
  • The Bank had no foreclosed real estate at December 31, 2014, compared to prior year-end foreclosed real estate balance of $666,000.
  • The Bank's efficiency ratio improved from 64.4% for 2013 to 63.6% for 2014.
  • The tangible book value per share at December 31, 2014 was $3.26, an increase of $0.35 over the prior year-end's value.

At December 31, 2014, the Bank exceeded all regulatory capital requirements with a ratio for tier 1 leverage capital of 10.28%, tier 1 risked-based capital of 11.28% and total risk-based capital of 12.55%. 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.

On January 14, 2015, Plaza announced the execution of a definitive agreement providing for the merger of Bank of Manhattan 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:  
                   
                   
    December 31,    September 30,    December 31,  
ASSETS   2014     2014     2013  
    (Unaudited)     (Unaudited)     (Audited)  
                   
Cash and cash equivalents   $ 41,003,000     $ 47,877,000     $ 39,315,000  
Investment securities - available for sale     16,492,000       16,503,000       25,416,000  
                         
Loans held for sale     3,159,000       7,346,000       4,521,000  
                         
Loans held for investment     479,086,000       438,142,000       399,096,000  
Allowance for possible credit losses     (6,119,000 )     (5,758,000 )     (4,995,000 )
Net loans held for investment     472,967,000       432,384,000       394,101,000  
                         
Goodwill and Other intangibles     6,159,000       6,066,000       5,692,000  
Idemnification Asset     1,920,000       2,116,000       2,517,000  
Accrued interest and Other Assets     12,405,000       12,238,000       19,702,000  
                         
TOTAL ASSETS   $ 554,105,000     $ 524,530,000     $ 491,264,000  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                        
                         
Deposits                        
Noninterest-bearing Demand   $ 94,164,000     $ 85,491,000     $ 85,685,000  
Savings, Now and Money Market Accounts     169,893,000       176,664,000       169,120,000  
Time Deposits     199,169,000       178,902,000       145,779,000  
  Total Deposits   $ 463,226,000     $ 441,057,000     $ 400,584,000  
                         
Borrowings     23,000,000       18,000,000       31,000,000  
Accrued Interest and Other Liabilities     7,931,000       7,287,000       5,644,000  
  Total Liabilities     494,157,000       466,344,000       437,228,000  
                         
Total Stockholders' Equity     59,948,000       58,186,000       54,036,000  
                         
    $ 554,105,000     $ 524,530,000     $ 491,264,000  
                         
BASIC BOOK VALUE PER SHARE   $ 3.49     $ 3.39     $ 3.15  
                         
DILUTED BOOK VALUE PER SHARE   $ 3.31     $ 3.22     $ 2.98  
                         
TANGIBLE BOOK VALUE PER SHARE   $ 3.26     $ 3.16     $ 2.91  
                         
BASIC SHARES OUTSTANDING AT PERIOD END     17,179,300       17,139,300       17,130,739  
                         
DILUTED SHARES OUTSTANDING AT PERIOD END     18,092,213       18,083,879       18,117,148  
                         
Capital Ratios End of Period:                        
  Tier 1 leverage ratio     10.27 %     10.12 %     10.25 %
  Tier 1 risk-based capital ratio     11.34 %     11.66 %     11.22 %
  Risk-based capital ratio     12.59 %     12.91 %     12.43 %
                         
                         
                 
                 
Plaza Bank
Statement of Operations
     
    Quarter-to-Date   Quarter-to-Date   Year-to-Date   Year-to-Date
    (Unaudited)   (Unaudited)   (Unaudited)   (Audited)
    December 31,   December 31,   December 31,   December 31,
    2014   2013   2014   2013
                         
Interest Income     7,155,000     6,124,000     26,695,000     23,615,000
Interest Expense     836,000     794,000     3,191,000     3,069,000
  Net Interest Income   $ 6,319,000   $ 5,330,000   $ 23,504,000   $ 20,546,000
                         
Provisions for Loan Losses     574,000     544,000     1,319,000     1,370,000
Net Interest Income after                        
  Provisions for Loan Losses     5,745,000     4,786,000     22,185,000     19,176,000
                         
Noninterest Income     1,483,000     1,441,000     5,883,000     6,867,000
Noninterest Expense     4,530,000     4,875,000     18,914,000     17,866,000
Income before Income Taxes     2,698,000     1,352,000     9,154,000     8,177,000
Provisions for Income Taxes     1,071,000     408,000     3,953,000     2,948,000
Net Income   $ 1,627,000   $ 944,000   $ 5,201,000   $ 5,229,000
                         
EARNINGS PER SHARE - BASIC     0.09     0.06     0.30     0.31
                         
EARNINGS PER SHARE - DILUTED     0.09     0.05     0.29     0.29
                         
BASIC WEIGHTED AVERAGE SHARES     17,168,974     17,130,739     17,145,319     17,108,532
                         
DILUTED WEIGHTED AVERAGE SHARES     18,119,327     18,538,802     18,229,563     18,118,518
                         
                         
   
   
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
(unaudited)
September 30,
2014
 
 
 
 
Quarter-to-Date
(unaudited)
June 30,
2014
 
 
 
 
Quarter-to-Date
(unaudited)
September 30,
2013
 
 
 
 
Year-to-Date
(unaudited)
September 30,
2014
 
 
 
 
Year-to-Date
(unaudited)
September 30,
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 %
                                 
                                 
   
   
Plaza Bank  
Statement of Financial Condition  
For the Quarter and Year Ended:  
                   
                   
    December 31,    September 30,    December 31,  
ASSETS   2013     2013     2012  
    (Audited)     (Unaudited)     (Audited)  
                         
Cash and cash equivalents   $ 39,315,000     $ 46,488,000     $ 41,668,000  
Investment securities - available for sale     25,416,000       24,222,000       23,116,000  
                         
Loans held for sale     4,521,000       801,000       7,726,000  
                         
Loans held for investment     399,096,000       383,390,000       327,208,000  
Allowance for possible credit losses     (4,995,000 )     (4,599,000 )     (3,909,000 )
Net loans held for investment     394,101,000       378,791,000       323,299,000  
                         
Goodwill and Other intangibles     5,692,000       5,816,000       5,347,000  
Idemnification Asset     2,517,000       2,987,000       3,575,000  
Accrued interest and Other Assets     19,702,000       14,527,000       15,812,000  
                         
TOTAL ASSETS   $ 491,264,000     $ 473,632,000     $ 420,541,000  
                         
LIABILITIES AND STOCKHOLDERS' EQUITY                        
                         
Deposits                        
Noninterest-bearing Demand   $ 85,685,000     $ 80,063,000     $ 70,062,000  
Savings, Now and Money Market Accounts     169,120,000       167,825,000       142,084,000  
Time Deposits     145,779,000       149,751,000       140,522,000  
  Total Deposits   $ 400,584,000     $ 397,639,000     $ 352,668,000  
                         
Borrowings     31,000,000       18,000,000       12,000,000  
Accrued Interest and Other Liabilities     5,644,000       4,719,000       7,091,000  
  Total Liabilities     437,228,000       420,358,000       371,759,000  
                         
Total Stockholders' Equity     54,036,000       53,274,000       48,782,000  
                         
    $ 491,264,000     $ 473,632,000     $ 420,541,000  
                         
BASIC BOOK VALUE PER SHARE   $ 3.16     $ 3.11     $ 2.86  
                         
DILUTED BOOK VALUE PER SHARE   $ 3.06     $ 3.00     $ 2.83  
                         
BASIC SHARES OUTSTANDING AT PERIOD END     17,130,739       17,130,739       17,084,010  
                         
DILUTED SHARES OUTSTANDING AT PERIOD END     18,117,148       17,751,910       17,226,800  
                         
                         
Capital Ratios End of Period:                        
  Tier 1 leverage ratio     10.25 %     10.45 %     10.89 %
  Tier 1 risk-based capital ratio     11.22 %     12.12 %     13.05 %
  Risk-based capital ratio     12.43 %     13.32 %     14.23 %
                         
                         

 

                 
                 
Plaza Bank
Statement of Operations
     
    Quarter-to-Date   Quarter-to-Date   Year-to-Date   Year-to-Date
    (Unaudited)   (Unaudited)   (Audited)   (Audited)
    December 31,   December 31,   December 31,   December 31,
    2013   2012   2013   2012
                         
Interest Income     6,124,000     5,072,000     23,615,000     18,487,000
Interest Expense     794,000     807,000     3,069,000     3,322,000
  Net Interest Income   $ 5,330,000   $ 4,265,000   $ 20,546,000   $ 15,165,000
                         
Provisions for Loan Losses     544,000     865,000     1,370,000     2,317,000
Net Interest Income after                        
  Provisions for Loan Losses     4,786,000     3,400,000     19,176,000     12,848,000
                         
Noninterest Income     1,441,000     1,588,000     6,867,000     5,925,000
Noninterest Expense     4,875,000     3,986,000     17,866,000     15,071,000
Income before Income Taxes     1,352,000     1,002,000     8,177,000     3,702,000
Provisions for Income Taxes     408,000     415,000     2,948,000     1,305,000
Net Income   $ 944,000   $ 587,000   $ 5,229,000   $ 2,397,000
                         
EARNINGS PER SHARE - BASIC     0.06     0.03     0.31     0.14
                         
EARNINGS PER SHARE - DILUTED     0.05     0.03     0.29     0.14
                         
BASIC WEIGHTED AVERAGE SHARES     17,130,739     17,079,399     17,108,532     17,070,643
                         
DILUTED WEIGHTED AVERAGE SHARES     18,538,802     17,226,800     18,118,518     17,229,450

Contact Information

  • Media Contacts:
    Gene Galloway
    President & CEO - Plaza Bank
    (702) 277-2221 or (949) 502-4309
    Email Contact

    Erich Bollinger
    EVP and Chief Banking Officer - Plaza Bank
    18200 Von Karman Ave., Suite 500
    Irvine, CA 92612
    (949) 225-3704
    Email Contact