Plaza Bank (OTCBB:PZBW) is again pleased to report its second consecutive positive quarterly earnings. The Bank reported net income of $37 thousand for the quarter ending March 31, 2010. Combined with the quarterly profit for the 4 th quarter of 2009, Plaza Bank has recorded profits of $157 thousand for the past six months.
Total assets increased $33.7 million during the last twelve months to $128.2 million at March 31, 2010. Net loans increased $1.9 million to $83.0 million during the same period. This was a slight increase, reflective of the slowdown in the current economy. Overall deposits increased 60.1% or $43 million to $115.4 million while core deposits increased 31.7% or $10.3 million over the same period in 2009. Net Loan to deposit ratio is at 72% reflecting a stronger liquidity position during these times.
Net interest income increased to $1.6 million before provisions for loan losses for the quarter ended March 31, 2010, an increase from $1.3 million for the same period in 2009. Operating expenses remained flat for the quarter ended March 31, 2010.
Plaza Bank is very proud of its recent profitability during these difficult times. The past year, 2009, was a year of change for many banks as the industry tries to withstand the affects of the sliding economy on profitability and capital. As the economy begins to improve, Plaza Bank is well positioned to take advantage of the improvement. We have identified our problem loans and have adequately reserved for them at a loan loss reserve of 4.04%, almost twice the national average. This conservative approach will serve us well in the long run.The economy, particularly in the Northwest, is still not in a strong recovery position. Plaza Bank will continue to monitor and manage its loan portfolio closely during these times. President & CEO Carlos Guangorena states, “while the past few years have been difficult we are proud of our performance during the past six months as the Bank achieved profitability and controlled its asset quality.”