Plaza Bank Agrees to Settlement with the United States Department of Justice

IRVINE, Calif.--()--Plaza Bank (OTCBB: PLZB) (the “Bank”) today announced that it has entered into a civil settlement with the United States Department of Justice, subject to court approval. The settlement concerned a single third-party payment processor, which the Bank terminated in 2010 after it was recapitalized and a new management team was put in place. Under the settlement, the Bank, without admitting liability, has agreed to pay $1.225 million to the United States and to abide by certain conditions if the Bank decides to provide banking services to third-party payment processors.

Over the past four and one-half years, the Bank has had no relationships with any other third-party payment processors, and the Bank cooperated fully with the Department of Justice’s inquiry. The Bank chose to settle the matter to serve the best interests of the Bank, its customers, shareholders, and employees.

“This was an issue we inherited when we took over the Bank, and as of December 31, 2014 we fully reserved for this,” said Plaza Bank Chief Executive Officer Gene Galloway. “We are pleased to finally put this matter behind us, and we will continue to focus on our core businesses – commercial and private banking for our customers.”

About Plaza Bank

Plaza Bank is a full-service community bank serving the business and professional communities in Southern California and Las Vegas, Nevada. The Bank is committed to meeting the financial needs of small to middle market businesses and professional firms with loans for working capital, equipment and owner-occupied commercial real estate financing and a full array of cash management services. Our bankers are experienced, professional and knowledgeable. For more information, visit www.plazabank.com.

Forward-Looking Statements

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to the safe harbors created by that Act. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements are based on currently available information, expectations, assumptions, projections, and management's judgment about the Bank, the banking industry and general economic conditions. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management's views as of any subsequent date. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely.

Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that might cause such differences include, but are not limited to: the Bank's ability to successfully execute its business plans and achieve its objectives; changes in general economic, real estate and financial market conditions, either nationally or locally in areas in which the Bank conducts its operations; changes in interest rates; new litigation or claims or changes in existing litigation or claims; future credit loss experience; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Bank's operations or business; loss of key personnel; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies; and the ability to satisfy requirements related to the Sarbanes-Oxley Act and other regulation on internal control.

Contacts

Abernathy MacGregor Group
Heather Wilson, 213-630-6550
HAW@abmac.com

Contacts

Abernathy MacGregor Group
Heather Wilson, 213-630-6550
HAW@abmac.com