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