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.”

Meanwhile, Plaza Bank continues to reach out to minorities:

  • Total loans to women and minorities were almost 40 percent of total loan balances outstanding at the end of 2009.

Shareholder Equity at March 31, 2010 stood at $9.4 million, or $4.29 per outstanding share. Plaza Bank trades on the over the counter Bulletin Board (OTCBB) under the ticker symbol PZBW.OB.

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. Please visit www.plazabankwa.com for additional information.
UNAUDITED FINANCIAL HIGHLIGHTS

(IN $000’s)
 

SUMMARY INCOME STATEMENT
 
 

Year Ended

December 31, 2009
  Year Ended

December 31, 2008
  Three Months Ended

March 31, 2010
  Three Months Ended

March 31, 2009
 
Interest Income $ 6,056 $ 5,007 $ 1, 586 $ 1,324
Interest Expense 2,317 2,589 514 566
Net interest Income Before Provision 3,739 2,418 1,072 758
Provision for Loan Losses 4,100 1,273 0 300
Non-interest Income 208 148 50 49
OREO Valuation Allowance 853 0 0 0
Other Non-interest Expense 4,303 4,262 1,085 1,103
Net Income (Loss) $ (5,309 ) $ (2,969 ) $ 37 $ (596 )
 
 

SUMMARY STATEMENT OF CONDITION
 
December 31, 2009 December 31, 2008 March 31, 2010 March 31, 2009
Total Assets $ 124,768 $ 89,329 $ 128,154 $ 94,442
Total Loans 91,070 74,585 83,089 81,123
Total Deposits 112,179 69,046 115,389 72,069
Allowance for Loan Losses 3,665 1,448 3,141 1,743
Shareholders’ Equity $ 9,376 $ 14,705 $ 9,442 $ 14,085

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