Plaza Bank posts $657,000 second-quarter profit
Plaza Bank on Wednesday continued to report positive quarterly earnings as the community bank with branches in Las Vegas and Southern California marks its third anniversary since it was recapitalized and chose new management.
The bank posted net income of $657,000, or 4 cents per share, for the second quarter, a slight decline from $669,000, or 4 cents per share, for the same period last year. For the first six months of 2012, net income improved to $951,000, or 6 cents a share, from $891,000, or 5 cents per share, for the first six months of 2011.
Gene Galloway, president and CEO of Plaza Bank, said that since the bank was recapitalized and new managers brought in, it grew from $147 million in assets to $387 million, with gross loans outstanding increasing from $80 million to $286 million.
The bank's transactional deposits, checking and money market accounts, have increased from $21 million to $182 million. Based in Irvine, Calif., Plaza Bank opened its Las Vegas branch in July 2010 and added 26 employees companywide during the last three years.
"Most importantly, the bank has been profitable since June 2010," Galloway said.
The recapitalization of Plaza Bank was completed on June 5, 2009, when the Federal Reserve approved Carpenter Community BancFund's $18 million investment in exchange for a 4.8 percent stake in the bank. Plaza Bank entered Las Vegas with its acquisition of SouthwestUSA Bank, which was seized by the Federal Deposit Insurance Corp. on July 23, 2010.
Galloway said total deposits grew by $14.6 million in the second quarter to $324 million.
The bank also noted in its earnings report that loan volume jumped from $29.9 million in the first quarter to $45.5 million by the end of the second quarter. Gross loans totaled $285.8 million, while noninterest income was $2 million as of June 30.
During the second quarter, Plaza Bank sold $18.6 million of SBA 504 and 7A loans compared to $8.5 million for the first quarter of 2012. The loan sales generated gains of about $1.86 million for the first six months of 2012.
Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.
