Plaza Bank, which recently acquired certain assets and deposits of 1st Commerce Bank in North Las Vegas, on Wednesday reported increased earnings for the second quarter.
Profit for Plaza Bank totaled $1.6 million, more than double the $656,000 earned in the same period last year. A 44 percent jump in net interest income, to $5.1 million, helped to boost overall earnings, the bank said in an earnings report.
The bank also decreased its provision for loan losses in the second quarter from a year ago, down 26 percent to $377,000.
“In late 2012, we reached a critical mass of loans outstanding that are generating interest income greater than the total of our interest expense, provision for loan losses and non-interest expense on a monthly basis,” said Gene Galloway, president and CEO of Plaza Bank. “So far for 2012 our interest income, up 32.5 percent compared to the first six months of the prior year, exceeds the above mentioned expenses by $900,000.”
Galloway said prior to reaching that mass, the bank was dependent on noninterest income, primarily gains on loan sales, for its profitability.
Noninterest income, including fees, fell 16 percent to $1.7 million.
Plaza Bank grew its total assets by 20 percent over the past year to $463.9 million. Part of the increase was attributed to the June 6 purchase of 1st Commerce Bank in an agreement with the Federal Deposit Insurance Corp.
Plaza Bank operates branches in Irvine, Calif., and Las Vegas. The bank acquired the 1st Commerce Bank branch at 5134 Camino Al Norte in North Las Vegas. The deal is scheduled to close Aug. 9.
Erich Bollinger, executive vice president and chief banking officer, said Tuesday the North Las Vegas clients are being converted to the branch at 8275 W. Flamingo Drive.
Meanwhile, loans outstanding at the end of the quarter totaled $375.4 million, compared with $89.5 million a year ago. Deposits grew 16 percent year over year to $375.7 million.
For the first six months of 2013, Galloway said Plaza Bank has earned $2.9 million, which is $500,000 more than the bank earned for all of 2012.
Contact reporter Chris Sieroty at email@example.com or 702-477-3893. Follow @sierotyfeatures on Twitter.