IRVINE, CA--(Marketwired - Apr 18, 2013) - Plaza Bank (OTCBB: PLZB) (the "Bank") today reported unaudited net income for the first quarter of 2013 of $1,259,000, an increase of 328% compared to the prior year's first quarter net income of $294,000. Earnings per diluted share were $0.07, a 5 cent increase compared to the first quarter of 2012. Earnings were driven by a 42%, or $1.4 million, increase in net interest income over the prior year.
Highlights for the first quarter of 2013 included:
- Return on equity for the quarter was 10.1%, a significant increase over the prior year's quarter of 2.5%.
- Our return on average assets for the first quarter of 2013 was 1.22%, a 252% increase over the first quarter of 2012 return on average assets of 0.345%.
- The Bank experienced significant growth in total loans compared to year earlier quarter and 2012 year-end quarter by 27.7% and 5.0%, respectively.
- Loan originations, committed and funded, jumped from the prior year's quarter from $32.2 million to $59.1 million, and $29.2 million to $49.0 million, respectively.
- Net interest margin ("NIM") for the quarter was 4.93%, an increase on both a linked quarter and year-over-year basis by 59 basis points and 64 basis points, respectively.
- Loan sales for the quarter totaled $16.5 million and generated gains on sale of $1.2 million.
- Non-performing assets declined on both a linked quarter and year-over-year basis to 1.58% from 2.31% and 5.03%, respectively.
- Our efficiency ratio improved on both a linked quarter and year-over-year basis to 64.4% from 68.0% and 84.2%, respectively.
Gene Galloway, President and Chief Executive Officer of Plaza Bank, commenting on the improved earnings of the Bank, stated, "Year over year, we continue to stay focused on our strategies of excelling in four specific business niches (asset based lending, small business lending, SBA real estate, and commercial real estate). This focus continues to allow us to consistently improve our financial performance as we grow into one of the finest business banks in the Southern California and Southern Nevada markets."
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.
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 changes in existing litigation; 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.