Plaza Bank Reports Third Quarter 2012 Earnings

IRVINE, CA--(Marketwire - Dec 6, 2012) - Plaza Bank (OTCBB: PLZB) (the "Bank") reported unaudited net income for the quarter ended September 30, 2012 of $860,000 or $0.05 per share on a diluted basis, an increase from the third quarter of 2011 of $385,000 or $0.02 per share on a diluted basis. For the nine months ended September 30, 2012, net income improved to $1.8 million, and $0.11 per diluted share, from $1.3 million, and $0.07 per diluted share, in the same nine months of 2011.

Gene Galloway, President and Chief Executive Officer of Plaza Bank, commenting on the year to date financial results stated, "Our annualized asset and net loan growth of 32% and 19%, respectively, is due to the Bank's personnel continuing to execute on our strategy of focusing on small to medium size businesses in the Southern California and Las Vegas markets. With the growth we have seen a 42% increase in our net income over the same period in the prior year."

Mr. Galloway, speaking on other changes at the Bank, said "Over the past few months Plaza has experienced great change. We have completed a conversion to a new state of the art core system that enhances our customer service. Additionally, we have relocated our Irvine branch and offices to a new Irvine facility to better meet the needs of our Orange County clientele."

Highlights for 2012's third quarter included:

• Non-interest bearing demand deposits grew $16.2 million, or 165% annualized, in the Third quarter to $55.6 million as of September 30, 2012.
• Loan origination for the third quarter totaled $44.0 million. Loan origination for the first nine months of 2012 totaled $125.5 million.
• Loans outstanding, net of allowance for loan losses, totaled $306.0 million at the end of the quarter, an increase of $23.1 million, or 33% annualized, over the prior quarter balance. During the last 12 months, net loans have increased by $57.0 million, or 23%.
• Noninterest income totaled $1.4 million in the third quarter of 2012, up from the third quarter of 2011 by $527,000 yet a decrease from the second quarter of 2012 by $629,000.
• During the quarter the Bank sold $7.7 million of SBA 504 and 7A loans compared to $18.6 million for the second quarter of 2012. The loan sales generated gains of $543,000 and $1.4 million for the third and second quarters, respectively.

About Plaza Bank
Plaza Bank is a 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.

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 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.

Balance Sheet
For the Quarter-ended:
Plaza Bank
Statement of Financial Condition
			September 30,				December 31,				September 30,
ASSETS			2012				2011				2011
			(Unaudited)				(Audited)				(Unaudited)
Cash and cash equivalents			$	54,471,000			$	16,817,000			$	49,746,000
Investment securities - available for sale				25,586,000				21,142,000				24,449,000
Net loans				306,031,000				268,640,000				249,073,000
Goodwill and Other intangibles				5,239,000				5,399,000				5,374,000
Idemnification Asset				2,948,000				6,004,000				8,189,000
Accrued interest and Other Assets				18,884,000				14,638,000				14,382,000
TOTAL ASSETS			$	413,159,000			$	332,640,000			$	351,213,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-bearing Demand			$	55,621,000			$	35,969,000			$	40,491,000
Savings, Now and Money Market Accounts				150,188,000				95,203,000				104,263,000
Time Deposits				140,869,000				132,213,000				141,569,000
	Total Deposits		$	346,678,000			$	263,385,000			$	286,323,000
Borrowings				12,000,000				20,000,000				15,500,000
Accrued Interest and Other Liabilities				5,839,000				2,616,000				3,300,000
Total liabilities				364,517,000				286,001,000				305,123,000
Total Stockholders' Equity				48,642,000				46,639,000				46,090,000
			$	413,159,000			$	332,640,000			$	351,213,000
BASIC BOOK VALUE PER SHARE			$	2.85			$	2.74			$	2.71
DILUTED BOOK VALUE PER SHARE			$	2.82			$	2.70			$	2.67
BASIC SHARES OUTSTANDING AT PERIOD END				17,077,950				17,017,554				17,010,888
DILUTED SHARES OUTSTANDING AT PERIOD END				17,220,134				17,285,032				17,285,032
Capital Ratios End of Period:
	Tier 1 leverage ratio			10.91	%			12.24	%			12.33	%
	Tier 1 risk-based capital ratio			13.78	%			15.57	%			16.21	%
	Risk-based capital ratio			15.01	%			16.83	%			17.16	%

Plaza Bank
Statement of Operations
(unaudited)
			Quarter-to-Date			Year-to-Date			Quarter-to-Date			Year-to-Date
			(unaudited)			(unaudited)			(unaudited)			(unaudited)
			September 30,			September 30,			September 30,			September 30,
			2012			2012			2011			2011
Interest Income				4,957,000			13,570,000			3,948,000			11,785,000
Interest Expense				866,000			2,515,000			855,000			2,711,000
	Net Interest Income		$	4,091,000		$	11,055,000		$	3,093,000		$	9,074,000
Provisions for Loan Losses				817,000			1,452,000			87,000			979,000
Net Interest Income after
	Provisions for Loan Losses			3,274,000			9,603,000			3,006,000			8,095,000
Noninterest Income				1,379,000			4,182,000			852,000			3,050,000
Noninterest Expense				3,567,000			11,085,000			3,226,000			9,616,000
Loss before Income Taxes				1,086,000			2,700,000			632,000			1,529,000
Provisions (benefits) for Income Taxes				226,000			890,000			247,000			253,000
Net Income (Loss)			$	860,000		$	1,810,000		$	385,000		$	1,276,000
EARNINGS PER SHARE - BASIC				0.05			0.11			0.02			0.08
EARNINGS PER SHARE - DILUTED				0.05			0.11			0.02			0.07
BASIC WEIGHTED AVERAGE SHARES				17,071,284			17,067,679			17,010,888			17,006,489
DILUTED WEIGHTED AVERAGE SHARES				17,226,800			17,230,340			17,276,044			17,274,119