IRVINE, CA--(Marketwired - Jul 18, 2016) - Plaza Bancorp (
For the first six months of 2016, the Company recorded net income of $5.3 million, or $0.17 per diluted share. This compares with a net loss, using the pooling-of-interest method to account for the merger of Manhattan Bancorp into Plaza Bancorp, of ($1.2 million), or ($0.04) per diluted share, for the first six months of 2015. For the two quarters ended June 30, 2016, the Company's annualized return on average assets was 0.99% and annualized return on average equity was 9.57%, up from an annualized loss on average assets of (0.23%) and an annualized loss on average equity of (3.90%) for the first half of 2015.
Gene Galloway, President and Chief Executive Officer of the Company and the Bank, commenting on the one year anniversary of the aforementioned merger, stated "The integration of the cultures of the two banks has been completed and the financial results are starting to show. Loans held for investment have grown 13%, or $111.5 million, during this period on loan volume of $325.6 million. The net income for the last twelve months totaled $10.8 million, or 36 cents per average diluted share."
Mr. Galloway concluded by discussing the second quarter results, "For the last three months the Company has had consistent earnings averaging a million dollars per month. The earnings are being driven by the robust loan growth and the discipline on our loan pricing which has allowed us to maintain our high net interest margin at the Bank and Bancorp of 4.86% and 4.68%, respectively."
Highlights for quarter ended June 30, 2016 included:
Net interest income for the quarter ended June 30, 2016 totaled $12.1 million. Loan interest income totaled $13.7 million, the average of total outstanding loans for the quarter was $939.1 million and the annualized yield was 5.76%. Interest expense related to deposits was $1.1 million for the quarter, or 47 basis points annualized. The interest expense related to the subordinated debentures for the quarter was $453,000, or 7.245 % annualized.
The Company recorded a $310,000 provision for loan losses during the second quarter of 2016 principally as a result of the $37.8 million loan growth. For the second quarter, total charge-offs were $6,000 slightly higher than the $5,000 in recoveries. Non-accrual loans totaled $1.0 million at June 30, 2016 of which $511,000 is covered under a FDIC share-loss agreement.
Non-interest income for the second quarter of 2016 was $2.5 million. Non-interest income for the second quarter is primarily comprised of a net gain from the sale of loans of $1.2 million, loan servicing income of $334,000, deposit fee income of $298,000, loan referral fee income of $164,000 and other fee income totaling $555,000.
Non-interest expense totaled $9.3 million for the second quarter of 2016. Compensation and benefits comprises 65.9%, or $6.1 million, of the total non-interest expense. The Company had 159 full-time equivalent employees as of June 30, 2016.
For the second quarter of 2016, the Company's effective tax rate was 40.9% for a total tax expense of $2.0 million for the quarter.
At June 30, 2016, the Company's ratio of tangible common equity to total assets was 9.29%, with a tangible book value of $3.75 per diluted share and a diluted book value per share of $3.45 per share.
At June 30, 2016, the Company had a tier 1 leverage capital ratio of 9.12%, common equity tier 1 risk-based capital ratio of 9.76%, tier 1 risk-based capital ratio of 9.76% and total risk-based capital ratio of 13.49%. At June 30, 2016, the Bank exceeded all regulatory capital requirements with a tier 1 leverage capital ratio of 10.97%, common equity tier 1 risk-based capital ratio of 11.74%, tier 1 risked-based capital ratio of 11.74% and total risk-based capital ratio of 12.99%. These capital ratios exceeded the "well capitalized" standards defined by the federal banking regulators of 5.00% for tier 1 leverage capital, 6.5% for common equity tier 1 risk-based capital, 8.00% for tier 1 risk-based capital and 10.00% for total risk-based capital.
Plaza Bancorp | 6/30/2016 | 3/31/2016 | 12/31/2015 | ||||||
Tier 1 leverage ratio | 9.12 | % | 8.96 | % | 8.56 | % | |||
Tier 1 risk-based capital ratio | 9.76 | % | 9.49 | % | 9.35 | % | |||
Common equity tier 1 capital ratio | 9.76 | % | 9.49 | % | 9.35 | % | |||
Risk-based capital ratio | 13.49 | % | 13.29 | % | 13.24 | % | |||
Plaza Bank | |||||||||
Tier 1 leverage ratio | 10.97 | % | 10.85 | % | 10.48 | % | |||
Tier 1 risk-based capital ratio | 11.74 | % | 11.50 | % | 11.44 | % | |||
Common equity tier 1 capital ratio | 11.74 | % | 11.50 | % | 11.44 | % | |||
Risk-based capital ratio | 12.99 | % | 12.75 | % | 12.70 | % | |||
About Plaza Bancorp
Plaza Bancorp is the holding company of Plaza Bank. Plaza Bank is a full service community bank serving the business and professional communities in Southern California and Southern 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. Plaza Bank meets its customers' needs through its eight regional offices located in the cities of El Segundo, Glendale, Irvine, Las Vegas, Manhattan Beach, Montebello, Pasadena and San Diego. 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 Company, 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 Bancorp | ||||||||||||||
Consolidated Condensed Statements of Financial Condition | ||||||||||||||
(Unaudited) | ||||||||||||||
(dollars in thousands) | June 30, | December 31, | June 30, | |||||||||||
ASSETS | 2016 | 2015 | 2015 * | |||||||||||
Cash and cash equivalents | $ | 92,203 | $ | 97,576 | $ | 117,342 | ||||||||
Investment securities - available for sale | 28,467 | 28,215 | 34,308 | |||||||||||
Loans held for sale | 2,720 | 4,535 | 6,861 | |||||||||||
Loans held for investment | 956,229 | 882,199 | 844,694 | |||||||||||
Allowance for possible credit losses | (12,411 | ) | (11,506 | ) | (10,156 | ) | ||||||||
Net loans held for investment | 943,818 | 870,693 | 834,538 | |||||||||||
Goodwill and other intangibles | 12,266 | 12,411 | 12,527 | |||||||||||
Idemnification asset | 519 | 762 | 1,466 | |||||||||||
Accrued interest and other assets | 34,020 | 36,540 | 59,208 | |||||||||||
TOTAL ASSETS | $ | 1,114,013 | $ | 1,050,732 | $ | 1,066,250 | ||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Deposits | ||||||||||||||
Noninterest-bearing demand | $ | 270,000 | $ | 316,516 | $ | 292,231 | ||||||||
Savings, now and money market accounts | 396,277 | 355,515 | 341,752 | |||||||||||
Time deposits | 236,617 | 211,998 | 231,137 | |||||||||||
Total Deposits | 902,894 | 884,029 | 865,120 | |||||||||||
Borrowings | 89,712 | 48,696 | 58,700 | |||||||||||
Accrued interest and other liabilities | 8,622 | 10,738 | 42,678 | |||||||||||
Total Liabilities | 1,001,228 | 943,463 | 966,498 | |||||||||||
Total stockholder's equity | 112,785 | 107,269 | 99,752 | |||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 1,114,013 | $ | 1,050,732 | $ | 1,066,250 | ||||||||
BASIC BOOK VALUE PER SHARE | $ | 3.75 | $ | 3.57 | $ | 3.37 | ||||||||
TANGIBLE BOOK VALUE PER DILUTED SHARE | $ | 3.42 | $ | 3.22 | $ | 2.98 | ||||||||
BASIC SHARES OUTSTANDING AT PERIOD END | 30,039,244 | 30,034,244 | 29,558,103 | |||||||||||
DILUTED SHARES OUTSTANDING AT PERIOD END | 30,228,651 | 30,296,867 | 30,038,919 | |||||||||||
Capital Ratios End of Period: | ||||||||||||||
Tier 1 leverage ratio | 9.12 | % | 8.56 | % | 7.51 | % | ||||||||
Tier 1 risk-based capital ratio | 9.76 | % | 9.35 | % | 8.30 | % | ||||||||
Common equity tier 1 capital ratio | 9.76 | % | 9.35 | % | 8.30 | % | ||||||||
Risk-based capital ratio | 13.49 | % | 13.24 | % | 12.06 | % | ||||||||
*Pooling of Interest with Manhattan Bancorp effected in June 2015 | ||||||||||||||
Plaza Bancorp | |||||||||||||||||
Consolidated Condensed Statements of Operations | |||||||||||||||||
For the Quarter | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Quarter-to-Date | Quarter-to-Date | Year-to-Date | Year-to-Date | ||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||||
2016 | 2015 * | 2016 | 2015 * | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Interest income | $ | 13,685 | $ | 13,263 | $ | 26,868 | $ | 26,051 | |||||||||
Interest expense | 1,598 | 1,030 | 3,088 | 2,099 | |||||||||||||
Net Interest Income | 12,087 | 12,233 | 23,780 | 23,952 | |||||||||||||
Provisions for loan losses | 310 | 469 | 897 | 730 | |||||||||||||
Net interest income after | |||||||||||||||||
Provisions for Loan Losses | 11,777 | 11,764 | 22,883 | 23,222 | |||||||||||||
Noninterest income | 2,525 | 2,326 | 4,811 | 4,262 | |||||||||||||
Noninterest expense | 9,304 | 12,720 | 19,017 | 23,734 | |||||||||||||
Income before income taxes | 4,998 | 1,370 | 8,677 | 3,750 | |||||||||||||
Provisions for income taxes | 2,043 | 188 | 3,399 | 1,003 | |||||||||||||
Income from continuing operations | 2,955 | 1,182 | 5,278 | 2,747 | |||||||||||||
Gain (Loss) on discontinued operations | - | (1,844 | ) | - | (3,616 | ) | |||||||||||
Net income (loss) before noncontrolling interest in Plaza Bank | 2,955 | (662 | ) | 5,278 | (869 | ) | |||||||||||
Less: Net income attributed to noncontrolling interst in Plaza Bank | - | (170 | ) | - | (336 | ) | |||||||||||
Net income (loss) | $ | 2,955 | $ | (832 | ) | $ | 5,278 | $ | (1,205 | ) | |||||||
EARNINGS (LOSS) PER SHARE - BASIC | $ | 0.10 | $ | (0.03 | ) | $ | 0.18 | $ | (0.04 | ) | |||||||
EARNINGS (LOSS) PER SHARE - DILUTED | $ | 0.10 | $ | (0.03 | ) | $ | 0.17 | $ | (0.04 | ) | |||||||
BASIC WEIGHTED AVERAGE SHARES | 30,038,145 | 29,448,684 | 30,036,195 | 29,448,684 | |||||||||||||
DILUTED WEIGHTED AVERAGE SHARES | 30,237,144 | 30,320,030 | 30,243,181 | 30,020,030 | |||||||||||||
RETURN ON AVERAGE ASSETS | 1.09 | % | -0.31 | % | 0.99 | % | -0.23 | % | |||||||||
RETURN ON AVERAGE EQUITY | 10.58 | % | -2.87 | % | 9.57 | % | -3.90 | % | |||||||||
*Pooling of Interest with Manhattan Bancorp effected in June 2015 | |||||||||||||||||
Plaza Bancorp | ||||||||||||
Loans Held for Investment Portfolio Composition | ||||||||||||
June 30, | December 31, | June 30, | ||||||||||
2016 | 2015 | 2015 | ||||||||||
(dollars in thousands) | ||||||||||||
Construction and land development | $ | 15,259 | $ | 12,906 | $ | 13,570 | ||||||
Commercial real estate and other | 569,246 | 522,739 | 504,254 | |||||||||
Commercial | 174,547 | 162,485 | 166,674 | |||||||||
Residential real estate | 138,647 | 131,051 | 110,370 | |||||||||
Consumer | 62,482 | 56,656 | 52,930 | |||||||||
Total | 960,181 | 885,837 | 847,798 | |||||||||
Allowance for loan losses | (12,411 | ) | (11,506 | ) | (10,156 | ) | ||||||
Deferred loan fees and discounts, net of costs | (3,952 | ) | (3,638 | ) | (3,106 | ) | ||||||
Total net loans | $ | 943,818 | $ | 870,693 | $ | 834,536 | ||||||
Non-Performing Assets | ||||||||||||
June 30, | December 31, | June 30, | ||||||||||
2016 | 2015 | 2015 | ||||||||||
(dollars in thousands) | ||||||||||||
Non-Accrual Assets | ||||||||||||
Loans (net of discounts) | $ | 866 | $ | 1,236 | $ | 1,779 | ||||||
OREO | 206 | 206 | 206 | |||||||||
Delinquency Loans (net of discounts) | ||||||||||||
30 - 89 Days past due | $ | 492 | $ | 3,487 | $ | 2,885 | ||||||
90 days and greater | 435 | 109 | 109 | |||||||||
Contact Information:
Media Contacts:
Gene Galloway
President and Chief Executive Officer
(702) 277-2221 or (949) 502-4309
John Shindler
Executive Vice President and Chief Financial Officer
(949) 225-3704