Plaza Bank posts third-quarter profit

Plaza Bank's niche of servicing mostly small businesses and professionals continues to pay dividends for the community bank with branches in Las Vegas and Southern California, the company said Thursday in a third-quarter earnings report.

The bank posted net income for the third quarter of $860,000, or 5 cents per share, compared with $386,000, or 2 cents a share, in the same period a year ago. For the first nine months of 2012, net income improved to $1.8 million, or 11 cents per share, up from $1.3 million, or 7 cents a share, for the first nine months of 2011.

"Our annualized asset and net loan growth of 32 percent and 19 percent respectively, is due to the bank's personnel in the Southern California and Las Vegas markets," said Gene Galloway, president and CEO of Plaza Bank. "With the growth we have seen a 42 percent increase in our net income over the same period last year."

The bank issued $44 million in loans in the third quarter, bringing its total to $125.5 million so far this year. Noninterest income totaled $1.4 million, up $527,000 from the third quarter of 2011, but a $629,000 decrease from the second quarter.

During the quarter Plaza Bank sold $7.7 million of SBA 504 and 7A loans compared with $18.6 million in the second quarter. The loan sale generated $543,000 in profit for the bank in the third quarter.

Plaza Bank had about $413.2 million in assets as of Sept. 30, up 18 percent from a year earlier. It was ranked as the 13th largest business bank in terms of loans.

Galloway said the bank has changed dramatically over the past few months.

"We have completed a conversion to a new state of the art core system that enhances our customer service," he said. "Additionally, we have relocated our Irvine (Calif.) branch and offices to a new Irvine facility to better meet the need of our clientele."

Plaza Bank's consolidation of three locations into one building was completed last month. Galloway has said the move will make Plaza Bank a more productive and efficient financial institution.

Galloway said the upgraded computer system is "more user friendly," allowing for better online banking .

The new Irvine location will house 50 employees, the majority of the company's total of 77. Plaza Bank in Las Vegas is located at 8275 W. Flamingo Road.

Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893. Follow @sierotyfeatures on Twitter.