IRVINE, CA--(Marketwired - Jan 23, 2014) - Plaza Bank (
Net income for the quarter ended December 31, 2013 was $944,000 or $0.05 per share on a diluted basis, a $357,000, or 61%, increase compared to the fourth quarter of 2012's results of $587,000 or $0.03 per share on a diluted basis. For the quarter ended December 31, 2013, the Bank's return on average assets was 0.79% and return on average equity was 6.97%, up from a return on average assets of 0.57% and a return on average equity of 4.49% for the 2012 comparable period.
Gene Galloway, President and Chief Executive Officer of Plaza Bank, commenting on the 118% increase in net income in 2013, stated, "Our income is a reflection on the ability of our sales force and support staff over the last two years to execute on our business plan. Staying in our areas of expertise over the last two years, we have been able to originate a total $396 million of loans, grow our noninterest checking accounts and money market accounts by $50 million and $74 million, respectively, and increase our total loans outstanding by $132 million. In addition, we have remained disciplined in our loan pricing and credit criteria which has led to an increase in our interest revenue and net interest margin while maintaining a strong performance in our loan portfolio as evidenced by the minimal loan losses totaling $85,000, or 0.02%, on the loans originated by the Bank in the last two years."
At December 31, 2013, the Bank had $6.2 million of non-performing loans, representing 1.57% of the Bank's loans held for investments, compared to $8.7 million of non-performing loans, or 2.66% of loans held for investments, at December 31, 2012. The Bank had foreclosed real estate of $666,000 at December 31, 2013, compared to foreclosed real estate of $2.8 million at December 31, 2012. All non-performing loans were on non-accrual at December 31, 2013 and 2012. The allowance for loan losses totaled $5.0 million at December 31, 2013, or 1.25% of total loans as of that date, compared to $3.9 million at December 31, 2012, or 1.19% of total loans as of that date.
Results for the full year of 2013 included:
- The Bank's net interest margin for the year was 4.79%, an increase of 58 basis points over the prior year.
- Loan interest income increased 29.6% to $23.2 million in 2013 compared to the prior year's loan interest income of $17.9 million.
- Loans held for investment increased by $71.9 million, or 22.0%, in 2013 to $399.1 million from $327.2 million at the start of the year.
- New loan commitments for 2013 totaled $199.7 million.
- SBA 7A loan sales for 2013 totaled $47.6 million and generated gains on sale of $3.1 million.
- Total assets grew by 16.7%, or $70.4 million, in 2013, a decrease from asset growth in 2012 of 26.4%, or $87.9 million.
- Deposits grew by $47.9 million, or 13.6%, to $400.6 million during 2013 primarily driven by 22.3% and 19.0% increases in noninterest checking accounts and money market accounts, respectively.
- The Bank's efficiency ratio improved from 70.8% for 2012 to 64.4% for 2013.
- The tangible book value per share at December 31, 2013 was $2.92, an increase of $0.32 over the prior year-end's value.
At December 31, 2013, the Bank exceeded all regulatory capital requirements with a ratio for tier 1 leverage capital of 10.47%, tier 1 risked-based capital of 11.46% and total risk-based capital of 12.68%. 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 (PLZB.OB) 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 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 | 2013 | 2013 | 2012 | ||||||||||
| (Unaudited) | (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 | 19,395,000 | 14,527,000 | 15,812,000 | ||||||||||
| TOTAL ASSETS | $ | 490,957,000 | $ | 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 | 5,159,000 | 4,719,000 | 7,091,000 | ||||||||||
| Total Liabilities | 436,743,000 | 420,358,000 | 371,759,000 | ||||||||||
| Total Stockholders' Equity | 54,214,000 | 53,274,000 | 48,782,000 | ||||||||||
| $ | 490,957,000 | $ | 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 | 17,695,000 | 17,751,910 | 17,226,800 | ||||||||||
| Capital Ratios End of Period: | |||||||||||||
| Tier 1 leverage ratio | 10.47 | % | 10.45 | % | 10.89 | % | |||||||
| Tier 1 risk-based capital ratio | 11.46 | % | 12.12 | % | 13.05 | % | |||||||
| Risk-based capital ratio | 12.68 | % | 13.32 | % | 14.23 | % | |||||||
| 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, | ||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||
| Interest Income | 6,269,000 | 5,072,000 | 23,760,000 | 18,487,000 | |||||||||
| Interest Expense | 794,000 | 807,000 | 3,069,000 | 3,322,000 | |||||||||
| Net Interest Income | $ | 5,475,000 | $ | 4,265,000 | $ | 20,691,000 | $ | 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 | 4,931,000 | 3,400,000 | 19,321,000 | 12,848,000 | |||||||||
| Noninterest Income | 1,296,000 | 1,588,000 | 6,722,000 | 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 | 0.30 | 0.14 | |||||||||
| BASIC WEIGHTED AVERAGE SHARES | 17,130,739 | 17,079,399 | 17,108,532 | 17,070,643 | |||||||||
| DILUTED WEIGHTED AVERAGE SHARES | 17,748,146 | 17,226,800 | 17,697,270 | 17,229,450 | |||||||||
Contact Information:
Erich Bollinger
EVP and Chief Banking Officer
Plaza Bank
18200 Von Karman Ave., Suite 500
Irvine, CA 92612
(949) 225-3704
Media Contacts:
Gene Galloway
President & CEO
Plaza Bank
(702) 277-2221 or (949) 502-4309