Plaza Bank reports profit during third quarter

Plaza Bank continued to report positive earnings, showing a modest profit in the third quarter.

The business bank with a branch each in Las Vegas and Irvine, Calif., on Tuesday posted net income of $385,000, down from $669,000 in the second quarter. Plaza Bank reported net income of $220,000 in the first quarter of 2011.

"We continue to execute our business plan," Plaza Bank President and CEO Gene Galloway said. "It's pretty simple, we continue to build a solid loan base in both Las Vegas and Irvine."

Galloway said the bank went profitable in June 2010, and has remained in the black for 17 of the last 18 months. Plaza Bank reported a monthly loss in December, due to an accounting charge related to its acquisition SouthwestUSA Bank in Las Vegas.

Loan originations for the third quarter and year-to-date as of Sept. 30 were $23.4 million and $83.5 million, respectively.

Plaza Bank set aside $87,000 in loan loss reserves for the third quarter, down from $233,000 from the same period last year.

"We are a business bank," Galloway said. "Over the last 90 days, we've approved several commercial loans in Las Vegas."

He said Plaza Bank had approved a $2 million loan for a Las Vegas-based plastic manufacturer and was close on an industrial loan in Boulder City. He declined to identify the companies.