Plaza Bancorp, the Holding Company of Plaza Bank, Announces Record Financial Results for September 30, 2017 (unaudited)
IRVINE, CA–(Marketwired – October 12, 2017) –
Financial highlights for the quarter ended September 30, 2017:
- Net Income of $4.1 million, or $0.13 per diluted share
- ROAA 1.31%, ROAE 12.72%
- Efficiency ratio improves to 55.8%
- Net interest margin increases to 5.01%
- Assets per employee $7.9 million
Plaza Bancorp (OTC:PLZZ) (the “Company”), the holding company of Plaza Bank (the “Bank”), reported unaudited net income for the first nine months of 2017 of $11.3 million, or $0.37 per diluted share. This is an increase of $3.2 million, or 40.0%, compared to the first nine months of 2016 which had net income of $8.1 million, or $0.27 per diluted share.
For the nine months ended September 30, 2017, the Company’s annualized return on average assets was 1.25% and annualized return on average equity was 12.07%, up from an annualized return on average assets of 1.00% and an annualized return on average equity of 9.64% for the first nine months of 2016.
For the quarter ended September 30, 2017, the Company reported net income of $4.1 million, or $0.13 per share on a diluted basis, compared with $3.5 million, or $0.12 per diluted share, for the second quarter of 2017 and net income of $2.8 million, or $0.09 per diluted share, in the third quarter of 2016. This represents an increase in the per diluted share amount of 8.3% and 44.4% over the prior quarter and the 2016 comparable quarter, respectively.
For the quarter ended September 30, 2017, the Company’s annualized return on average assets was 1.31% and annualized return on average equity was 12.72%. An increase of 10.1% and 12.4%, respectively, over the quarter ended June 30, 2017 where the Company’s return on average assets was 1.19% and the return on average common equity was 11.32%. The improvement over the prior year’s quarter ended September 30, 2016 was 31.0% and 29.9%, respectively, as the Company’s return on average assets was 1.00% and the return on average common equity was 9.79% for this period.
Gene Galloway, Chief Executive Officer of the Company and the Bank, commenting on the quarterly results, stated “Even with the August announcement that Plaza had agreed to be acquired by Pacific Premier Bancorp, Inc., the Company’s third quarter results were the strongest that we have ever reported. This is a testament to the excellence and dedication of the employees of Plaza. Over the last eight years, these employees took a $140 million bank, losing $500,000, per month and transformed it into a nationally ranked top community bank with $1.3 billion in assets and making $1.5 million per month (excludes Plaza Bancorp’s results). The Plaza story is a great example of what can be accomplished when you have a talented and committed team.”
Rick Sowers, President of the Company and the Bank, further commenting on the results, added, “I could not be more proud of the performance of our Company and our people. We set our intention to achieve industry leading results, and we continue to achieve new highs. As we finalize our merger with Pacific Premier Bank, the Bank is positioned to continue to provide outstanding service and solutions for our clients and the communities we serve.”
Net interest income for the quarter ended September 30, 2017 totaled $15.3 million, an increase of $1.5 million, or 11.2%, from the second quarter of 2017. The quarterly change in net interest income reflects higher average loan outstandings of $18.1 million and growth in the average loan yield of 28 basis points, partially offset by an increase in the cost of funding of 3 basis points. For the third quarter, loan interest income totaled $16.9 million, the average of total outstanding loans was $1.1 billion and the annualized yield was 6.38%. Interest expense for the third quarter related to the $1.1 billion in average deposits was $1.7 million, or 62 basis points annualized. The interest expense related to the subordinated debentures for the third quarter was $453,000, or 7.25% annualized.
Net interest margin for the third quarter of 2017 was 5.01% compared with 4.83% for the second quarter of 2017. The net interest margin for the third quarter of 2017 and for the second quarter of 2017 include the benefit of loan prepayments, which added 19 and 9 basis points to each quarter, respectively. The 18 basis point margin increase was driven by the aforementioned increases in average loans outstanding and prepayments, partially offset by an increase in funding cost.
The Company recorded a provision for loan losses in the amount of $270,000 during the …