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Plumas Bancorp Reports Third Quarter Earnings

Plumas Bancorp Reports Third Quarter Earnings 
QUINCY, CA -- (Marketwire) -- 11/06/12 --  Plumas Bancorp (NASDAQ:
PLBC), a bank holding company and the parent company of Plumas Bank,
today announced third quarter 2012 earnings of $546 thousand, an
increase of 47% from $371 thousand during the third quarter of 2011.
For the nine months ended September 30, 2012, Plumas Bancorp reported
net income of $1.4 million, an increase of $707 thousand, or 102%,
from $696 thousand during the nine months ended September 30, 2011.  
Net income allocable to common shareholders increased by $175
thousand from $200 thousand or $0.04 per share during the three
months ended September 30, 2011 to $375 thousand or $0.08 per share
during the current three month period. For the nine months ended
September 30, 2012, net income allocable to common shareholders
totaled $890 thousand or $0.19 per share compared to $183 thousand or
$0.04 per share during the nine months ended September 30, 2011.
Income allocable to common shareholders is calculated by subtracting
dividends accrued and discount amortized on preferred stock from net
income.  
Financial Highlights 
Three months ended September 30, 2012 compared to September 30, 2011 


 
--  Income before provision for taxes increased by $233 thousand to $819
    thousand.
--  EPS doubled from $0.04 to $0.08.
--  Non-interest expense decreased by $399 thousand.
--  Net interest income increased by $170 thousand to $4.4 million.
--  Net interest margin increased to 4.20% compared to 4.07% during the
    third quarter of 2011.

  
Nine months ended September 30, 2012 compared to September 30, 2011 


 
--  Income before provision for taxes increased by $1.3 million to $2.2
    million.
--  EPS increased by $0.15 from $0.04 to $0.19.
--  Net interest income increased by $193 thousand to $12.8 million.
--  Net interest margin increased to 4.20% compared to 4.06% during the
    nine months ended September 30, 2011.
--  The provision for loan losses decreased by $0.8 million to $1.9
    million.
--  Non-interest expense decreased by $988 thousand, or 7%.

  
September 30, 2012 compared to September 30, 2011 


 
--  Nonperforming assets decreased by $4.4 million from $24.5 million at
    September 30, 2011 to $20.1 million at September 30, 2012.
--  The ratio of nonperforming loans to total loans decreased from 5.26%
    to 5.02% and the ratio of nonperforming assets to total assets
    decreased from 5.19% to 4.28%.
--  Net loans increased by $5.1 million from $289.4 million at September
    30, 2011 to $294.5 million at September 30, 2012.
--  Total shareholders' equity increased by $1.9 million to $41.4 million.
--  Total leverage capital increased from 9.7% at September 30, 2011 to
    10.5% at September 30, 2012.
--  Total Risk-Based Capital Ratio strengthened to 15.5% from 14.9%.

  
"The Board of Directors, executive team and I are very pleased with the
Company's third quarter results, which marked our eleventh
consecutive quarter of profitable operations," commented President
and Chief Executive Officer, Andrew J. Ryback. Explaining the
results, he continued, "Revenue was up, earnings per share doubled
and non-interest expense was down significantly. More importantly,
however, asset quality metrics continued to improve, driven by the
sale of several foreclosed properties during the quarter. Also, we
experienced year-over-year growth in loan balances as we continue to
focus on the diversification of our loan portfolio."  
Ryback concluded, "We expect a strong finish to 2012 and plan to
build on this momentum into 2013. Once again, we would like to thank
our shareholders for their continued support and confidence in our
Company." 
Asset Quality 
During the nine months ended September 30, 2012 we recorded a $1.9
million provision for loan losses down from the $2.7 million
provision for loan losses for the nine months ended September 30,
2011.  
The allowance for loan losses totaled $5.5 million at September 30,
2012 and $6.5 million at September 30, 2011. The allowance for loan
losses at September 30, 2012 consisted of $1.1 million in specific
reserves related to impaired loans and $4.4 million in general
reserves. This compares to $0.9 million in specific reserves related
to impaired loans and $5.6 million in general reserves at September
30, 2011. As a percentage of unimpaired loans, general reserves were
1.58% at September 30, 2012 and 2.07% at September 30, 2011. This
decrease in general reserves is consistent with positive asset
quality trends experienced during the last twelve months which
include both a decrease in the loan charge-offs and a significant
decrease in classified loan balances with loans classified as
substandard declining by $11.7 million from $30.0 million at
September 30, 2011 to $18.3 million at September 31, 2012. Overall,
the allowance for loan losses as a percentage of total loans
decreased from 2.19% at September 30, 2011 to 1.85% at September 30,
2012. 
Net charge-offs totaled $3.3 million during the nine months ended
September 30, 2012 and $3.6 million during the same period in 2011.
Net charge-offs as a percentage of average loans decreased from 1.56%
during the nine months ended September 30, 2011 to 1.46% during the
current period. 
Nonperforming loans at September 30, 2012 were $15.0 million, a
decrease of $0.5 million from September 30, 2011. Nonperforming loans
as a percentage of total loans decreased to 5.02% at September 30,
2012, down from 5.26% at September 30, 2011. Nonperforming assets
(which are comprised of nonperforming loans, other real estate owned
("OREO") and repossessed vehicle holdings ("OVO")) at September 30,
2012 were $20.1 million, down from $24.5 million at September 30,
2011. Nonperforming assets as a percentage of total assets decreased
to 4.28% at September 30, 2012 down from 5.19% at September 30, 2011. 
Deposits, Investments and Loans  
Total deposits were $406 million as of September 30, 2012, a decrease
of $3.7 million, or less than 1%, from the September 30, 2011 balance
of $410 million. The decrease related from a decline in NOW accounts
of $12.6 million and a decline in time deposits of $12.3 million.
These declines were in higher rate deposit products as we have
significantly lowered the rates earned on our time and premium NOW
account balances. Core deposit growth was strong with year-over-year
increases in non-interest bearing deposits of $6.8 million and
savings and money market deposits of $14.4 million. 
Total investment securities increased by $26.3 million from $51.7
million at September 30, 2011 to $78.0 million as of September 30,
2012. The increase in investment securities is consistent with our
asset/liability management policy as we chose to reduce excess
balances held at the FRB in order to increase our return on these
balances. The investment portfolio at September 30, 2012 was invested
entirely in U.S. Government sponsored agency securities. Cash and due
from banks totaled $54.9 million at September 30, 2012 a decrease of
$28.9 million from September 30, 2011. Included in cash and due from
banks at September 30, 2012 and September 30, 2011 was interest
earning balances held at the Federal Reserve Bank of San Francisco
totaling $39.5 million and $68.7 million, respectively.  
Net loans increased by $5.1 million, or 2%, from $289.4 million at
September 30, 2011 to $294.5 million at September 30, 2012.  
Shareholders' Equity  
Total shareholders' equity increased by $1.9 million from $39.5
million at September 30, 2011 to $41.4 million at September 30, 2012.
Book value per common share increased to $6.19 at September 30, 2012
from $5.81 at September 30, 2011. Plumas Bancorp's leveraged capital
ratio was 10.5% at September 30, 2012, up from 9.7% at September 30,
2011. Plumas Bancorp's total risk-based capital ratio at September
30, 2012 was 15.5%, up from 14.9% at September 30, 2011.  
Net Interest Income and Net Interest Margin 
Net interest income, on a nontax-equivalent basis, was $4.4 million
for the three months ended September 30, 2012, an increase of $170
thousand, or 4%, from $4.2 million for the same period in 2011. The
increase in net interest income was primarily related to a decline in
the rate paid and average balance of time deposits and an increase in
the average balance and yield on loans. Interest income increased by
$91 thousand mostly related to an increase in interest and fees on
loans of $81 thousand. Interest expense declined by $79 thousand from
$396 thousand during the three months ended September 30, 2011 to
$317 thousand during the current three month period. Net interest
margin for the three months ended September 30, 2012 increased 13
basis points to 4.20%, up from 4.07% for the same period in 2011. 
Net interest income, on a nontax-equivalent basis, for the nine
months ended September 30, 2012 was $12.75 million, an increase of
$193 thousand from the $12.56 million earned during the same period
in 2011. The largest components of the increase in net interest
income were a decline in the average balance and rate paid on time
deposits, an increase in yield on the Company's loan portfolio and an
increase in the average balance of investment securities. These items
were mostly offset by a decline in yield in investment securities and
a decline in the average balance of loans. Net interest margin for
the nine months ended September 30, 2012 increased 14 basis points,
or 3%, to 4.20%, up from 4.06% for the same period in 2011. 
Non-Interest Income/Expense 
During the three months ended September 30, 2012, total non-interest
income increased by $264 thousand from the same period in 2011. This
increase was mostly related to an increase in gain on sale of
investment securities of $191 thousand. During the third quarter of
2012 we received $8.5 million on the sale of seven securities and
recorded a gain on sale of $191 thousand. No investment securities
were sold during the third quarter of 2011.  
Non-interest expense totaled $4.6 million during the three months
ended September 30, 2012, a decline of $399 thousand from $5.0
million during the same period in 2011. Significant savings were
realized in several categories of non-interest expense including
reductions of $125 thousand in salary and benefit expense, $161
thousand in the provision for changes in valuation of OREO, $88
thousand in FDIC insurance and assessments, $61 thousand in postage
expense and $48 thousand in OREO expense. 
During the nine months ended September 30, 2012 non-interest income
decreased by $710 thousand to $5.1 million from $5.8 million during
the first nine months of 2011. The largest component of this decrease
was a decrease of $742 thousand in gains on the sale of government
guaranteed loans from $1.8 million during the first nine months of
2011 to $1.1 million during the current nine month period. Beginning
in the first quarter of 2011, related to a change in SBA
requirements, guaranteed portions of SBA loans were no longer
required to be sold with a 90 day premium recourse requirement. This
resulted in recording gains on sales of loans during the nine months
of 2011 representing both loans sold during the nine months ended
September 30, 2011 and loans sold during the fourth quarter of 2010.
In addition, gain on sale of loans during the first nine months of
2011 benefited from a government program temporarily increasing the
government guarantee in order to stimulate small business lending.
The remaining decrease in non-interest income was related to a
decline in gains on sale of investment securities from $612 thousand
during the nine months ended September 30, 2011 to $403 thousand
during the current period. During the 2011 period proceeds of $27.4
million were generated on the sale of twenty-five securities and
during the current period proceeds of $20.8 million were received on
the sale of twenty-five securities.  
Service charges on deposit accounts increased by $130 thousand
primarily related to an increase in use of overdraft protection
services. During the fourth quarter of 2011 we introduced a new
overdraft protection (ODP) program which we made available to a
larger portion of our customer base than the prior program, resulting
in an increase in service fee income. This new program has enabled us
to increase income while strengthening our regulatory compliance over
the ODP function.  
We continue to achieve savings in many categories of non-interest
expense resulting in a reduction in non-interest expense of $988
thousand from $14.7 million during the nine months ended September
30, 2011 to $13.8 million during the current nine month period.
Significant reductions in expense included $435 thousand in salary
and benefits expense, $389 thousand in FDIC insurance, $189 thousand
in OREO expense and $600 thousand in loss on sale of OREO and OVO
were partially offset by an increase in the provision for changes in
valuation of OREO of $468 thousand, an increase in outside service
fees of $99 thousand, an increase in professional fees of $73
thousand and an increase in insurance expense of $65 thousand.  
Founded in 1980, Plumas Bank is a locally owned and managed
full-service community bank based in Northeastern California. The
Bank operates eleven branches located in the counties of Plumas,
Lassen, Placer, Nevada, Modoc and Shasta. Plumas Bank offers a wide
range of financial and investment services to consumers and
businesses and has received nationwide Preferred Lender status with
the United States Small Business Administration. For more information
on Plumas Bancorp and Plumas Bank, please visit our website at
www.plumasbank.com. 
This news release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Exchange Act of 1934, as amended and Plumas
Bancorp intends for such forward-looking statements to be covered by
the safe harbor provisions for forward-looking statements contained
in the Private Securities Litigation Reform Act of 1995. 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 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." 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. Forward-looking
statements involve significant risks and uncertainties and actual
results may differ materially from those presented, either expressed
or implied, in this news release. Factors that might cause such
differences include, but are not limited to: the Company's ability to
successfully execute its business plans and achieve its objectives;
changes in general economic and financial market conditions, either
nationally or locally in areas in which the Company conducts its
operations; changes in interest rates; continuing consolidation in
the financial services industry; new litigation or changes in
existing litigation; increased competitive challenges and expanding
product and pricing pressures among financial institutions;
legislation or regulatory changes which adversely affect the
Company's operations or business; loss of key personnel; and changes
in accounting policies or procedures as may be required by the
Financial Accounting Standards Board or other regulatory agencies. 
In addition, discussions about risks and uncertainties are set forth
from time to time in the Company's publicly available Securities and
Exchange Commission filings. The Company undertakes no obligation to
publicly revise these forward-looking statements to reflect
subsequent events or circumstances. 


 
                               PLUMAS BANCORP                               
                    CONDENSED CONSOLIDATED BALANCE SHEET                    
                               (In thousands)                               
                                (Unaudited)                                 
                                                                            
                                  As of September 30,                       
                                  -------------------                       
                                                        Dollar   Percentage 
                                     2012      2011     Change     Change   
                                  --------- --------- ---------  ---------- 
 ASSETS                                                                     
Cash and due from banks           $  54,948 $  83,833 $ (28,885)      -34.5%
Investment securities                78,051    51,743    26,308        50.8%
Loans, net of allowance for loan                                            
 losses                             294,486   289,350     5,136         1.8%
Premises and equipment, net          13,528    13,682      (154)       -1.1%
Bank owned life insurance            11,073    10,724       349         3.3%
Real estate and vehicles acquired                                           
 through foreclosure                  5,064     8,984    (3,920)      -43.6%
Accrued interest receivable and                                             
 other assets                        12,923    14,570    (1,647)      -11.3%
                                  --------- --------- ---------             
 Total assets                     $ 470,073 $ 472,886 $  (2,813)       -0.6%
                                  ========= ========= =========             
                                                                            
 LIABILITIES AND SHAREHOLDERS'                                              
  EQUITY                                                                    
Deposits                          $ 406,267 $ 409,943 $  (3,676)       -0.9%
Repurchase agreements                 5,463     7,072    (1,609)      -22.8%
Accrued interest payable and                                                
 other liabilities                    6,634     6,050       584         9.7%
Junior subordinated deferrable                                              
 interest debentures                 10,310    10,310         -           - 
                                  --------- --------- ---------             
 Total liabilities                  428,674   433,375    (4,701)       -1.1%
Shareholders' equity                 41,399    39,511     1,888         4.8%
                                  --------- --------- ---------             
 Total liabilities and                                                      
  shareholders' equity            $ 470,073 $ 472,886 $  (2,813)       -0.6%
                                  ========= ========= =========             
                                                                            

 
                                                                            
                               PLUMAS BANCORP                               
                CONDENSED CONSOLIDATED STATEMENTS OF INCOME                 
                   (In thousands, except per share data)                    
                                (Unaudited)                                 
                                                                            
FOR THE THREE MONTHS ENDED                               Dollar  Percentage 
SEPTEMBER 30,                           2012     2011    Change    Change   
                                      -------  -------  -------  ---------- 
                                                                            
Interest income                       $ 4,675  $ 4,584  $    91         2.0%
Interest expense                          317      396      (79)      -19.9%
                                      -------  -------  -------             
 Net interest income before provision                                       
  for loan losses                       4,358    4,188      170         4.1%
Provision for loan losses               1,000      400      600       150.0%
                                      -------  -------  -------             
 Net interest income after provision                                        
  for loan losses                       3,358    3,788     (430)      -11.4%
Non-interest income                     2,083    1,819      264        14.5%
Non-interest expenses                   4,622    5,021     (399)       -7.9%
                                      -------  -------  -------             
 Income before income taxes               819      586      233        39.8%
Provision for income taxes                273      215       58        27.0%
                                      -------  -------  -------             
 Net income                           $   546  $   371  $   175        47.2%
 Dividends on preferred shares           (171)    (171)       -       100.0%
                                      -------  -------  -------             
 Net income available to common                                             
  shareholders                        $   375  $   200  $   175        87.5%
                                      =======  =======  =======             
                                                                            
Basic earnings per share              $  0.08  $  0.04  $  0.04       100.0%
                                      =======  =======  =======             
Diluted earnings per share            $  0.08  $  0.04  $  0.04       100.0%
                                      =======  =======  =======             
                                                                            

 
                                                                            
FOR THE NINE MONTHS ENDED                                Dollar  Percentage 
SEPTEMBER 30,                           2012     2011    Change    Change   
                                      -------  -------  -------  ---------- 
                                                                            
Interest income                       $13,741  $14,027  $  (286)       -2.0%
Interest expense                          991    1,470     (479)      -32.6%
                                      -------  -------  -------             
 Net interest income before provision                                       
  for loan losses                      12,750   12,557      193         1.5%
Provision for loan losses               1,900    2,700     (800)      -29.6%
                                      -------  -------
  -------             
 Net interest income after provision                                        
  for loan losses                      10,850    9,857      993        10.1%
Non-interest income                     5,097    5,807     (710)      -12.2%
Non-interest expenses                  13,753   14,741     (988)       -6.7%
                                      -------  -------  -------             
 Income before income taxes             2,194      923    1,271       137.7%
Provision for income taxes                791      227      564       248.5%
                                      -------  -------  -------             
 Net income                           $ 1,403  $   696  $   707       101.6%
 Dividends on preferred shares           (513)    (513)       -         0.0%
                                      -------  -------  -------             
 Net income available to common                                             
  shareholders                        $   890  $   183  $   707       386.3%
                                      =======  =======  =======             
                                                                            
Basic earnings per share              $  0.19  $  0.04  $  0.15       100.0%
                                      =======  =======  =======             
Diluted earnings per share            $  0.19  $  0.04  $  0.15       100.0%
                                      =======  =======  =======             
                                                                            

 
                                                                            
                               PLUMAS BANCORP                               
                       SELECTED FINANCIAL INFORMATION                       
                   (In thousands, except per share data)                    
                                (Unaudited)                                 
                                                                            
                                                         September 30,      
                                                   ------------------------ 
                                                       2012         2011    
                                                   -----------  ----------- 
QUARTERLY AVERAGE BALANCES                                                  
Assets                                             $   466,349  $   463,505 
Earning assets                                     $   412,535  $   408,178 
Loans                                              $   306,083  $   301,388 
Deposits                                           $   403,127  $   404,415 
Common equity                                      $    29,584  $    27,753 
Total equity                                       $    41,405  $    39,487 
                                                                            
CREDIT QUALITY DATA                                                         
Allowance for loan losses                          $     5,527  $     6,460 
Allowance for loan losses as a percentage of total                          
 loans                                                    1.85%        2.19%
Nonperforming loans                                $    15,028  $    15,546 
Nonperforming assets                               $    20,102  $    24,530 
Nonperforming loans as a percentage of total loans        5.02%        5.26%
Nonperforming assets as a percentage of total                               
 assets                                                   4.28%        5.19%
Year-to-date net charge-offs                       $     3,281  $     3,564 
Year-to-date net charge-offs as a percentage of                             
 average loans, annualized                                1.46%        1.56%
                                                                            
SHARE AND PER SHARE DATA                                                    
Basic earnings per share for the quarter           $      0.08  $      0.04 
Diluted earnings per share for the quarter         $      0.08  $      0.04 
Quarterly weighted average shares outstanding            4,776        4,776 
Quarterly weighted average diluted shares                                   
 outstanding                                             4,783        4,776 
Basic earnings per share, year-to-date             $      0.19  $      0.04 
Diluted earnings per share, year-to-date           $      0.19  $      0.04 
Year-to-date weighted average shares outstanding         4,776        4,776 
Year-to-date weighted average diluted shares                                
 outstanding                                             4,779        4,776 
Book value per common share                        $      6.19  $      5.81 
Total shares outstanding                                 4,776        4,776 
                                                                            
QUARTERLY KEY FINANCIAL RATIOS                                              
Annualized return on average common equity                 5.0%         2.9%
Annualized return on average assets                       0.47%        0.32%
Net interest margin                                       4.20%        4.07%
Efficiency ratio                                          71.8%        83.6%
                                                                            
YEAR-TO-DATE KEY FINANCIAL RATIOS                                           
Annualized return on average common equity                 4.1%         0.9%
Annualized return on average assets                       0.41%        0.20%
Net interest margin                                       4.20%        4.06%
Efficiency ratio                                          77.1%        80.3%
Loan to Deposit Ratio                                     73.6%        72.1%
Total Risk-Based Capital Ratio                            15.5%        14.9%

  
Contact: 
Elizabeth Kuipers
Vice President, Marketing Manager & Investor Relations Officer
Plumas Bank
35 S. Lindan Ave.
Quincy, CA 95971
530.283.7305 ext.8912
investorrelations@plumasbank.com 
 
 
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