Plaza Bank Announces 2nd Quarter Results


IRVINE, CA--(Marketwire - August 24, 2010) - Plaza Bank (OTCBB: PLZB) today announced financial results for the quarter and six months ended June 30, 2010, showing strong growth in assets, deposits and loan activity.

"We earned a profit in the month of June," said Gene Galloway, President of Plaza Bank, "and we expect to continue the positive momentum as we grow the Bank in a sound manner." Mr. Galloway added, "Additionally, the Bank has proactively remedied past issues as evidenced by the recent removal of a cease and desist order and is now moving forward with expansion plans through acquisitions and organic growth."

The Bank's net loss for the quarter ended June 30, 2010 was $156,000 compared to a net loss of $783,000 for the previous quarter. In June, the Bank earned $45,000, the first profitable month in the Bank's history. The net loss for the six months ended June 30, 2010 was $939,000. The improvement in earnings performance during the second quarter is partially due to a gain on loan sales of $269,000 compared to $15,000 in the first quarter.

The Bank's net interest margin for the quarter ended June 30, 2010 was 3.63% compared to the prior quarter of 3.37%, and 2.81% for the quarter ended December 31, 2009. Net interest margin for the month of June was 3.83%. This positive trend was largely due to the Bank's cost of funds decreasing throughout the six month period. The Bank's net interest income ended at $2.6 million for the first half of 2010.

The Bank's assets have increased by 22% since December 31, 2009, totaling $193.9 million as of June 30, 2010. At the same time, deposits grew nearly 23%, standing at a healthy $151.9 million at June 30, 2010. The Bank saw its opening of new checking accounts increase over the first six months of 2010, recording a 9.90% increase in deposit activity, with non-interest bearing deposits totaling $19.2 million at June 30, 2010.

Management has made a concerted effort to reposition the loan portfolio from riskier construction lending to direct proportionately more of the Bank's assets into traditional commercial and industrial lending. The Bank's loan portfolio grew 13.0% during the second quarter of 2010, with $147.8 million in loans outstanding at June 30, 2010. The loan delinquency rate, excluding non-accrual loans, dropped from 1.69% at the end of the first quarter to 1.21% as of June 30, 2010.

There are two main explanations for the Bank's second quarter financial improvement. The Bank has reached critical mass on asset growth and has also significantly reduced its cost of funding within the last six months.

Following the quarter end, and as previously announced, Plaza Bank completed the sale of 6,000,000 shares of newly issued common stock to PB Holdings, Inc., its holding company, on July 22, 2010. The shares were sold at a price of $2.50 per share in a private transaction, for an aggregate of $15 million. The price per share was determined by the Board of Directors of the Bank and represents 1.15 times the book value of the Bank's common stock as of June 30, 2010. Prior to the issuance of these shares, PB Holdings, Inc. owned 85.6% of the outstanding shares of common stock. As a result of the stock sale, PB Holdings now owns approximately 90.7% of the outstanding common stock of the Bank.

Also following the quarter end, and as previously announced, the Bank completed an FDIC-assisted acquisition of SouthwestUSA Bank, Las Vegas, Nevada, on July 23, 2010. The Bank is operating the former office of SouthwestUSA Bank in Las Vegas as a full service branch of Plaza Bank. The Bank believes this acquisition will provide several efficiencies, which are expected to enhance future profitability.

About Plaza Bank

Plaza Bank is a full-service business bank headquartered in Irvine, California. As of July 23, 2010 the Bank also has a full service branch in Las Vegas, Nevada.

The Bank is dedicated to meeting the financial needs of the small business customer with innovative diverse products and personalized service. For additional information, visit the Plaza Bank website at www.plazabank.net.

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 describe future plans, strategies and expectations. 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.

PLAZA BANK

Balance Sheet
For the Quarter-Ended:

                                       Jun. 30,     Dec. 31,     Jun. 30,
ASSETS                                   2010         2009         2009
                                     ------------ ------------ ------------

Cash and Cash Equivalents            $ 23,318,000 $ 30,836,000 $ 61,661,000
Investment Securities - Available
 for Sale                              13,460,000    5,815,000            -

Net Loans                             147,831,000  113,497,000   89,733,000

Goodwill and Other Intangibles          5,447,000    5,844,000    5,931,000
Accrued interest and Other Assets       3,844,000    3,470,000    1,989,000
                                     ------------ ------------ ------------
TOTAL ASSETS                         $193,900,000 $159,462,000 $159,314,000
                                     ============ ============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits
Noninterest-Bearing Demand           $ 19,163,000 $ 16,400,000 $  9,523,000
Savings, Now and Money Market
 Accounts                              23,011,000   11,681,000   10,407,000
Time Deposits                         109,783,000   95,845,000  108,645,000
                                     ------------ ------------ ------------
            Total Deposits           $151,957,000 $123,926,000 $128,575,000

Borrowings                           $ 16,396,000 $  9,000,000 $ 11,331,000

Accrued Interest and Other
 Liabilities                            1,727,000    1,779,000    1,683,000
                                     ------------ ------------ ------------
            Total Liabilities        $170,080,000 $134,705,000 $141,589,000
                                     ------------ ------------ ------------

Total Stockholders' Equity           $ 23,820,000 $ 24,757,000 $ 17,725,000
                                     ------------ ------------ ------------

Total Liabilities and Stockholders'
 Equity                              $193,900,000 $159,462,000 $159,314,000
                                     ============ ============ ============




Income Statement
Quarter and Year-to-Date Income Statement

                                             Quarter-to-Date  Year-to-Date
                                               (unaudited)    (unaudited)
                                              Jun. 30, 2010  Jun. 30, 2010
                                              -------------  -------------

Interest Income                               $   2,195,000  $   4,121,000
Interest Expense                                    595,000      1,193,000
                                              -------------  -------------
    Net Interest Income                           1,600,000      2,928,000

Provisions for Loan Losses                          128,000        366,000
                                              -------------  -------------

Net Interest Income after
    Provisions for Loan Losses                    1,472,000      2,562,000

Noninterest Income                                  423,000        633,000
Noninterest Expense                               2,051,000      4,133,000
                                              -------------  -------------
Loss before Income Taxes                           (156,000)      (938,000)
Provisions for Income Taxes                               -          1,000
                                              -------------  -------------

 Net Income (Loss)                            $    (156,000) $    (939,000)
                                              =============  =============

Contact Information: Media Contacts: Gene Galloway President - Plaza Bank (702) 277-2221 (949) 502-4309 Stacey Divine Infuze Marketing (916) 662-8282