Plaza Bank (OTCBB:PZBW) reported its 4th consecutive positive quarterly earnings. The Bank reported a net income of $179 thousand for the quarter ending September 30, 2010. Plaza Bank has recorded profits of $331 thousand for the nine months year to date through September 30, 2010 and, combined with the last quarter of 2009, has recorded $450 thousand in profits for the past twelve months.
Total assets decreased $7.5 million during the last twelve months to $113.1 million at September 30, 2010. Net loans decreased $11.8 million to $80.1 million during the same period. This was a decrease, reflective of the slowdown in the current economy and the reduction of some problem loans. Overall deposits also decreased 7.5% or $8.0 million to $99.0 million over the same period in 2009. The Bank has shrunk its balance sheet in response to the current recessed economy by shedding some of its troubled assets and excess liquidity. This has improved overall earnings and capital ratios.
Net Interest income increased to $1.1 million before provisions for loan losses, an increase from $974 thousand for the same period in 2009. This was due mainly to the reduction in costs of funds due to the continued reduction in interest rates. Operating expenses were also reduced by $63 thousand for the quarter ended September 30, 2010.
The past year, 2009, was challenging for most banks due to the troubled economy and the recessionary real estate market. Plaza Bank has taken a hard look at its credit quality in the wake of the sliding economy and improved its balance sheet, liquidity and profitability as a result. Plaza Bank continues to have a strong loan loss reserve of 3.12% at almost twice the national average to protect against any further deterioration. In addition, a strong capital ratio of 9.6% will help protect the bank until the economy fully recovers and help ensure its safety and soundness in the near future.