SEATTLE--(Business Wire)--
Plaza Bank (OTCBB:PZBW) is pleased to report its operating results
for the quarter ended June 30, 2008.
Total assets increased to $82.8 million from $57.1 million at June
30, 2007, a $25.7 million increase, and $74.0 million at December 31,
2007. Net loans increased to $69.0 million from $41.9 million, an
increase of $27.1 million. Net interest income increased to $772
thousand for the six months ended June 30, 2008 from $645 thousand for
the comparable period last year.
Plaza Bank reported a loan loss reserve of $1.0 million at June
30, 2008, or 1.45% of total loans, an increase from $319 thousand, or
0.75% of total loans, at June 30, 2007 and $646 thousand, or 1.10% of
total loans at December 31, 2007. Plaza placed two loans totaling
$1.95 million on non-accrual in the second quarter, $1.90 million of
which is secured with commercial real estate in Seattle. While Plaza
believes that it has adequately provided for any possible loan loss
related to this one loan, it has recently received and reviewed a new
appraisal to determine the extent to which the loan may be impaired.
Shareholder Equity at June 30, 2008 totaled $16.1 million, or
$7.32 per outstanding share. Plaza Bank trades on the Over the Counter
Bulletin Board (OTCBB) under the ticker symbol "PZBW.OB".
"Unfortunately, the decline in real estate development has
impacted us as well," reports Carlos Guangorena, President & CEO. "We
determined that it would be prudent to place the $1.9 million
development loan, which we participate with other banks, on
non-accrual even though it was not past due. We have received a new
appraisal, which values the property securing the loan for more than
the loan balance, we have reviewed it and related circumstances
carefully and have determined the value of the property in Seattle is
supported, and that no additional portion of the loan is impaired and
needs to be charged-off at this time.
"We have not had any significant charge-offs at this time and feel
confident our reserves are more than adequate. While our loan loss
reserve is higher than forecast, we feel it is prudent, based on what
we have seen to build our reserve in the current economic environment
based on the financial conditions at play in the market.
"On the positive side, Plaza Bank continues to grow and move
towards our financial goals. Again we have not been involved directly
with the residential or sub-prime lending and feel confident our
emphasis on basic commercial business to the local community will
continue to pay dividends."
Please visit www.plazabankwa.com for additional information.
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UNAUDITED FINANCIAL HIGHLIGHTS
(IN $000's)
SUMMARY INCOME STATEMENT
----------------------------------------------------------------------
Three Three Six Six
Months Months Months Months Year
Ended Ended Ended Ended Ended
June 30, June 30, June 30, June 30, Dec. 31,
2008 2007 2008 2007 2007
-------- -------- -------- -------- --------
Interest Income $ 1,182 $ 836 $ 2,438 $ 1,357 $ 3,688
Interest Expense 632 335 1,292 467 1,685
Interest Income Before
Loan Loss Provision 550 501 1,146 890 2,003
Loan Loss Provision 211 154 374 244 571
Net Interest Income 339 347 772 646 1,432
Non-interest Income 42 20 76 32 91
Non-interest Expense 1,054 865 2,114 1,636 3,791
Net Income (Loss) $ (673) $ (498) $(1,266) $ (958) $(2,268)
SUMMARY STATEMENT OF CONDITION
----------------------------------------------------------------------
June 30, June 30, Dec. 31,
2008 2007 2007
-------- -------- --------
Total Assets $82,874 $57,129 $74,054
Total Loans 69,050 41,985 57,969
Total Deposits 58,477 33,129 54,848
Allowance for Loan Losses 1,020 319 646
Shareholders' Equity 16,131 18,637 17,447
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About Plaza Bank
Plaza Bank, a state chartered commercial bank, is headquartered in
Seattle, Washington with a branch office in the Seattle suburb of
Kent. The bank was founded in April 2006 with an equity capital base
of $22.0 million, at the time the most capital raised by a Washington
de novo bank. Plaza Bank is a commercial bank with an emphasis on the
Latino market, the first de novo bank in Washington to target the
growing Latino market.
Forward Looking Statements
This document contains forward-looking statements as defined in
the Private Securities Litigation Reform Act of 1995. All
forward-looking statements are subject to risks and uncertainties that
could cause actual results to differ materially from those projected.
Those factors include, but are not limited to: the impact of national
and regional economic trends on small business loan demand in the
Puget Sound area; loan delinquency rates; the Bank's ability to
continue to attract quality commercial business; interest rate
movements; changes in the demographic make-up of the Bank's market
area; fluctuation in demand for the Bank's products and services; the
Bank's ability to attract and retain qualified people, and other
factors. These factors should be considered in evaluating the
forward-looking statements and undue reliance should not be placed on
such statements. The Bank shall not be responsible to update any such
forward-looking statements.
Plaza Bank
Carlos Guangorena, CEO, 206-436-7600
Copyright Business Wire 2008
