IRVINE, CA--(Marketwired - Oct 21, 2014) - Plaza Bank (
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-Date | Quarter-to-Date | Quarter-to-Date | Year-to-Date | Year-to-Date | |||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
September 30, | June 30, | September 30, | September 30, | September 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/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 | % |
Contact Information:
Media Contacts:
Gene Galloway
President and Chief Executive Officer
(702) 277-2221 or (949) 502-4309
Erich Bollinger
Executive Vice President and Chief Banking Officer
(949) 225-3704