IRVINE, CA -- (Marketwired) -- 10/21/14 -- 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- Quarter-to- Quarter-to- Year-to- Year-to-
Date Date Date Date Date
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
September September September September
30, June 30, 30, 30, 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/Broke
red
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%
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
