CST: 29/06/2016 22:03:34   

Plaza Bank Announces Financial Results for the Year and Quarter Ended December 31, 2015 (unaudited)

133 Days ago

IRVINE, CA--(Marketwired - Feb 17, 2016) - Plaza Bancorp (OTCBB: PLZZ) (the "Company"), the holding company of Plaza Bank (the "Bank"), reported unaudited net income using the pooling of interest method, due to the Company's merger with Manhattan Bancorp, for the year ended December 31, 2015 of $4.67 million or $0.16 per share on a diluted basis. For the year ended December 31, 2014, the unaudited net income was $1.8 million or $0.06 per share on a diluted basis. For the year ended December 31, 2015, the Company's return on average assets was 0.44% and return on average equity was 4.24%, up from a return on average assets of 0.17% and a return on average equity of 1.36% for 2014.

Results for the year ended December 31, 2015 were affected by $4.9 million of expenses associated with the aforementioned merger and the sale of Manhattan Bancorp's mortgage division. Without these one-time expenses, the unaudited net income would have been $7.6 million or $0.25 per share on a diluted basis, the Company's return on average assets would have been 0.72% and return on average equity would have been 6.87%.

Net income for the quarter ended December 31, 2015 was $3.4 million or $0.11 per share on a diluted basis, a $2.2 million, or 72%, increase compared to the fourth quarter of 2014's results of $1.2 million or $0.04 per share on a diluted basis. For the quarter ended December 31, 2015, the Bank's return on average assets was 1.30% and return on average equity was 12.83%, up from a return on average assets of 0.47% and a return on average equity of 3.85% for the 2014 comparable period.

In the quarter ended December 31, 2015, the net income results benefited from one-time adjustments of $1.2 million for a tax correction related to the merger and $400,000 before income taxes for the termination of SouthWestUSA share loss agreements with the FDIC, respectively.

Gene Galloway, President and Chief Executive Officer of the Company and the Bank, commenting on the fourth quarter stated "The progress we have made in merging the two banks together is beginning to show results as we continue to revitalize and energize the branches we acquired. Our efficiency ratio and net interest margin improved over the third quarter of 2015 as we get more focus on running the combined institution rather than on merger related problems. Our loan volume in the fourth quarter topped $124 million, a record for the Bank and $53.4 million more than we did in the quarter following the merger. For 2016, we will continue to stride toward improving efficiency and profit by finalizing the blending of Manhattan and Plaza's cultures and employees together."

Highlights for quarter ended December 31, 2015 included:

  • Loan originations by the Bank in the fourth quarter totaled $124.7 million
  • Loans held for investment grew $52.9 million, or 25.5% annualized, to $882.2 million during the fourth quarter
  • The Bank's loan to deposit ratio as of December 31, 2015 was 99.8%
  • During the quarter, the Bank sold $16.7 million of SBA 7(a) loans that generated $1.0 million in gains
  • For the quarter, the Company's and Bank's net interest margin ("NIM") improved five and seven basis points to 4.50% and 4.72%, respectively, compared to the quarter ended September 30, 2015
  • Non-accrual loans totaled $1.4 million or 0.16% of the loans held for investment at December 31, 2015
  • The ratio of allowance for loan losses to total loans was 1.30% at December 31, 2015
  • The Company's efficiency ratio for the quarter improved to 60% compared to the prior quarter of 69%.
  • Tangible book value per diluted share increased 9 cents to $3.22 during the fourth quarter.

Net interest income for the quarter ended December 31, 2015 totaled $11.3 million. Loan interest income totaled $12.5 million, the average of total outstanding loans for the quarter was $861.9 million and the annualized yield was 5.76%. Interest expense related to deposits was $916,000 for the quarter, or 41 basis points annualized. The interest expense related to the subordinated debentures for the quarter was $447,000, or 7.125 % annualized.

The Company recorded a $1.4 million provision for loan losses during the fourth quarter of 2015 as a result of the $52.9 million loan growth and $330,000 in net charge-offs during the quarter. Non-accrual loans totaled $1.2 million at 2015 year-end with one non-accrual loan totaling $108,000 being 90 days or more past due.

Non-interest income for the fourth quarter of 2015 was $3.0 million. Non-interest income for the fourth quarter is primarily comprised of net gain from the sale of loans of $1.0 million, loan servicing income of $285,000, deposit fee income of $300,000, loan referral fee income of $321,000 and other fee income totaling $623,000.

The fourth quarter of 2015 non-interest expense including merger expense totaled $8.8 million down $645,000 compared to the prior quarter primarily due to a reduction in merger related professional expenses in the third quarter totaling $577,000.

For the year and fourth quarter of 2015, the Company's effective tax rates were 41.9% and 17.5%, respectively, for a total tax expense of $3.4 million for the year and $723,000 for the quarter. In the fourth quarter, the Company recognized a $1.2 million tax benefit as part of the true-up of Manhattan Bancorp's deferred tax assets.

At December 31, 2015, the Company's ratio of tangible common equity to total assets was 8.61%, with a tangible book value of $3.22 per diluted share and a diluted book value per share of $3.57 per share.

At December 31, 2015, the Bank exceeded all regulatory capital requirements with a ratio for tier 1 leverage capital of 10.48%, common equity tier 1 risk-based capital of 11.44%, tier 1 risked-based capital of 11.44% and total risk-based capital of 12.70%. 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. At December 31, 2015, the Company had a ratio for tier 1 leverage capital of 8.61%, common equity tier 1 risk-based capital of 9.42%, tier 1 risk-based capital of 9.42% and total risk-based capital of 13.30%.

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 Bank  
Statements of Financial Condition  
(Unaudited)  
                   
    December 31,     September 30,     December 31,  
ASSETS   2015     2015     2014*  
                         
Cash and cash equivalents   $ 97,576,000     $ 135,225,000     $ 96,386,000  
Investment securities - available for sale     28,215,000       29,149,000       43,550,000  
                         
Loans held for sale     4,535,000       4,972,000       36,368,000  
                         
Loans held for investment     882,199,000       829,280,000       821,722,000  
Allowance for possible credit losses     (11,506,000 )     (10,398,000 )     (9,426,000 )
Net loans held for investment     870,693,000       818,882,000       812,296,000  
                         
Goodwill and other intangibles     12,411,000       12,447,000       20,609,000  
Idemnification asset     762,000       762,000       1,920,000  
Accrued interest and other assets     30,473,000       29,147,000       40,142,000  
                         
TOTAL ASSETS   $ 1,044,665,000     $ 1,030,584,000     $ 1,051,271,000  
                         
LIABILITIES AND STOCKHOLDER'S EQUITY                        
                         
Deposits                        
Noninterest-bearing demand   $ 320,265,000     $ 299,398,000     $ 311,351,000  
Savings, now and money market accounts     356,343,000       358,713,000       322,241,000  
Time deposits     211,998,000       221,863,000       251,729,000  
  Total Deposits   $ 888,606,000     $ 879,974,000     $ 885,321,000  
                         
Borrowings     24,000,000       24,000,000       29,000,000  
Accrued interest and other liabilities     10,770,000       9,552,000       13,425,000  
  Total Liabilities     923,376,000       913,526,000       927,746,000  
                         
Total Shareholder's Equity     121,289,000       117,058,000       123,525,000  
                         
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY   $ 1,044,665,000     $ 1,030,584,000     $ 1,051,271,000  
                         
                         
Capital Ratios End of Period:                        
  Tier 1 leverage ratio     10.48 %     10.12 %        
  Tier 1 risk-based capital ratio     11.44 %     11.62 %        
  Common equity tier 1 capital ratio     11.44 %     11.62 %        
  Risk-based capital ratio     12.70 %     12.87 %        
                         
                         
   
   
Plaza Bank  
Statements of Operations  
For the Quarter and Year Ended  
(Unaudited)  
                         
    Quarter     Quarter     Year-to-Date     Year-to-Date  
    December 31,     December 31,     December 31,     December 31,  
    2015     2014*     2015*     2014*  
                                 
Interest income     12,722,000       12,558,000       51,059,000       46,703,000  
Interest expense     982,000       1,146,000       4,073,000       4,624,000  
Net interest income   $ 11,740,000     $ 11,412,000     $ 46,986,000     $ 42,079,000  
                                 
Provisions for loan losses     1,428,000       629,000       2,367,000       2,132,000  
Net interest income after                                
provisions for loan losses     10,312,000       10,783,000       44,619,000       39,947,000  
                                 
Noninterest income     2,736,000       5,069,000       10,830,000       23,493,000  
Merger expense     (239,000 )     134,000       2,814,000       134,000  
Noninterest expense     8,601,000       13,523,000       41,507,000       57,424,000  
Income before income taxes     4,686,000       2,195,000       11,128,000       5,882,000  
Provisions for income taxes     149,000       1,043,000       3,713,000       3,885,000  
Net income   $ 4,537,000     $ 1,152,000     $ 7,415,000     $ 1,997,000  
                                 
                                 
RETURN ON ASSETS     1.75 %     0.44 %     0.71 %     0.20 %
                                 
RETURN ON EQUITY     15.24 %     3.97 %     6.06 %     1.62 %
                                 
*Pooling of Interest                                
                                 
                                 
   
   
Plaza Bank  
Loan Held for Investment Portfolio Composition  
                   
    December 31,     September 30,     December 31,  
    2015     2015     2014*  
    (unaudited)     (unaudited)     (unaudited)  
Construction and land development     12,906,000       11,394,000       10,281,000  
Commercial real estate and other     522,739,000       506,150,000       483,572,000  
Commercial     162,485,000       149,310,000       183,097,000  
Residential real estate     131,051,000       112,511,000       95,359,000  
Consumer     56,656,000       53,238,000       52,001,000  
Total   $ 885,837,000     $ 832,603,000     $ 824,310,000  
Allowance for loan losses     (11,506,000 )     (10,398,000 )     (9,426,000 )
Deferred loan fees and discounts, net of costs     (3,638,000 )     (3,323,000 )     (2,588,000 )
Total net loans   $ 870,693,000     $ 818,882,000     $ 812,296,000  
                         
                         
Non-Performing Assets  
         
    December 31,     September 30,     December 31,  
    2015     2015     2014*  
    (unaudited)     (unaudited)     (unaudited)  
Non-Accrual Assets                        
                         
Loans   $ 1,236,000     $ 1,716,000     $ 3,059,000  
OREO     -       -       -  
                         
Delinquency                        
30 - 89 Days past due   $ 3,487,000     $ 667,000     $ 2,504,000  
90 days and greater     109,000       109,000       236,000  
                         
                         
   
   
Plaza Bancorp  
Statement of Financial Condition  
For the Quarter and Year Ended  
(Unaudited)  
             
  December 31,   September 30,   December 31,  
ASSETS 2015   2015   2014*  
                   
Cash and cash equivalents $ 97,576,000   $ 135,225,000   $ 96,888,000  
Investment securities - available for sale   28,215,000     29,149,000     43,551,000  
                   
Loans held for sale   4,535,000     4,972,000     36,369,000  
                   
Loans held for investment   882,199,000     829,280,000     822,118,000  
Allowance for possible credit losses   (11,506,000 )   (10,398,000 )   (9,426,000 )
Net loans held for investment   870,693,000     818,882,000     812,692,000  
                   
Goodwill and other intangibles   12,411,000     12,447,000     20,547,000  
Idemnification asset   762,000     762,000     1,920,000  
Accrued interest and other assets   36,540,000     36,737,000     42,964,000  
                   
TOTAL ASSETS $ 1,050,732,000   $ 1,038,174,000   $ 1,054,931,000  
                   
LIABILITIES AND STOCKHOLDERS' EQUITY                  
                   
Deposits                  
Noninterest-bearing demand $ 316,516,000   $ 295,096,000   $ 305,601,000  
Savings, now and money market accounts   355,515,000     357,899,000     326,630,000  
Time deposits   211,998,000     221,863,000     251,729,000  
  Total Deposits $ 884,029,000   $ 874,858,000   $ 883,960,000  
                   
Borrowings   48,696,000     49,000,000     29,000,000  
Accrued interest and other liabilities   10,738,000     10,125,000     13,714,000  
  Total Liabilities   943,463,000     933,983,000     926,674,000  
                   
Total Shareholders' Equity   107,269,000     104,191,000     128,257,000  
                   
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,050,732,000   $ 1,038,174,000   $ 1,054,931,000  
                   
BASIC BOOK VALUE PER SHARE $ 3.57   $ 3.47   $ 4.35  
                   
TANGIBLE BOOK VALUE PER DILUTED SHARE $ 3.22   $ 3.11   $ 3.88  
                   
BASIC SHARES OUTSTANDING AT PERIOD END   30,034,244     30,040,003     29,509,737  
                   
DILUTED SHARES OUTSTANDING AT PERIOD END   30,296,867     30,363,214     30,368,310  
                   
                   
Capital Ratios End of Period:                  
  Tier 1 leverage ratio   8.61 %   8.27 %      
  Tier 1 risk-based capital ratio   9.42 %   9.44 %      
  Common equity tier 1 capital ratio   9.42 %   9.44 %      
  Risk-based capital ratio   13.30 %   13.46 %      
                   
                   
   
   
Plaza Bancorp  
Statement of Operations  
For the Quarter and Year Ended  
(Unaudited)  
                         
    Quarter     Quarter     Year-to-Date     Year-to-Date  
    December 31,     December 31,     December 31,     December 31,  
    2015     2014*     2015*     2014  
                                 
Interest income     12,722,000       12,560,000       51,071,000       46,703,000  
Interest expense     1,429,000       1,146,000       4,990,000       4,642,000  
  Net Interest Income   $ 11,293,000     $ 11,414,000     $ 46,081,000     $ 42,061,000  
                                 
Provisions for loan losses     1,428,000       629,000       2,367,000       2,132,000  
Net interest income after                                
  Provisions for Loan Losses     9,865,000       10,785,000       43,714,000       39,929,000  
                                 
Noninterest income     3,043,000       5,173,000       12,067,000       23,774,000  
Merger expense     (215,000 )     134,000       4,916,000       134,000  
Noninterest expense     9,002,000       13,554,000       42,838,000       57,921,000  
Income before income taxes     4,121,000       2,270,000       8,027,000       5,648,000  
Provisions for income taxes     723,000       1,037,000       3,362,000       3,897,000  
Net Income   $ 3,398,000     $ 1,233,000     $ 4,665,000     $ 1,751,000  
                                 
EARNINGS PER SHARE - BASIC   $ 0.11     $ 0.04     $ 0.16     $ 0.06  
                                 
EARNINGS PER SHARE - DILUTED   $ 0.11     $ 0.04     $ 0.16     $ 0.06  
                                 
BASIC WEIGHTED AVERAGE SHARES     30,038,188       29,509,737       29,775,876       29,509,737  
                                 
DILUTED WEIGHTED AVERAGE SHARES     30,293,267       30,369,240       30,028,376       30,368,310  
                                 
RETURN ON ASSETS     1.30 %     0.47 %     0.44 %     0.17 %
                                 
RETURN ON EQUITY     12.83 %     3.85 %     4.24 %     1.36 %
                                 
*Pooling of Interest                                
                                 
                                 

Media Contacts:
Gene Galloway
President and Chief Executive Officer
(702) 277-2221 or (949) 502-4309
Email Contact

John Shindler
Executive Vice President and Chief Financial Officer
(949) 225-3704
Email Contact