Plumas Bancorp Reports Year End and Fourth Quarter Net Income

Plumas Bancorp Reports Year End and Fourth Quarter Net Income 
QUINCY, CA -- (Marketwire) -- 03/20/13 --  Plumas Bancorp (NASDAQ:
PLBC), the parent company of Plumas Bank, today announced 2012 net
income of $1.95 million compared to net income of $941 thousand for
the year ended December 31, 2011, an improvement of over $1 million.
For the quarter ended December 31, 2012, Plumas Bancorp's net income
increased by $302 thousand to $547 thousand as compared to net income
of $245 thousand for the quarter ended December 31, 2011. 
Net income allocable to common shareholders increased from $257
thousand or $0.05 per share during 2011 to $1.27 million or $0.26 per
share during the twelve months ended December 31, 2012. For the three
months ended December 31, 2012, net income allocable to common
shareholders totaled $376 thousand or $0.08 per share compared to $74
thousand or $0.02 per share during the three months ended December
31, 2011. Income allocable to common shareholders is calculated by
subtracting dividends accrued and discount amortized on preferred
stock from net income.  
2012 Financial Highlights 
Year ended December 31, 2012 compared to December 31, 2011 


 
--  Income before provision for taxes increased by $1.8 million to $3.0
    million.
--  Earnings per share increased by over 400% to $0.26.
--  Non-interest expense decreased by $869 thousand.
--  Net interest income increased by $331 thousand to $17.2 million.
--  Provision for loan losses decreased by $1.15 million to $2.35 million.
--  Net interest margin increased to 4.18% from 4.08% during 2011.

  
Three months ended December 31, 2012 compared to December 31, 2011 


 
--  Income before provision for taxes increased by $513 thousand to $826
    thousand.
--  Earnings per share increased by $0.06 from $0.02 to $0.08.
--  Net interest income increased by $139 thousand to $4.4 million.
--  The provision for loan losses decreased by $350 thousand to $450
    thousand.
--  Non-interest income increased by $141 thousand, or 10% to $1.5
    million.

  
December 31, 2012 compared to December 31, 2011 


 
--  Nonperforming assets decreased by $6.5 million from $25.5 million at
    December 31, 2011 to $19.0 million at December 31, 2012.
--  The ratio of nonperforming loans to total loans decreased from 5.73%
    to 4.35% and the ratio of nonperforming assets to total assets
    decreased from 5.60% to 3.98%.
--  Net loans increased by $22.8 million from $287 million at December 31,
    2011 to $310 million at December 31, 2012.
--  Deposits increased by $20.4 million from $391 million to $412 million.
--  Total shareholders' equity increased by $2.2 million to $41.9 million.
--  The leverage capital ratio increased from 9.8% at December 31, 2011 to
    10.3% at December 31, 2012.

  
Andrew J. Ryback, president and chief executive officer, stated: "We
had another positive quarter and a very productive year in rebuilding
our core earnings and positioning Plumas Bank for future growth. In
the fourth quarter we achieved meaningful improvement in key measures
of credit quality, and we continued to build strong momentum in
growing new customer loan and deposit relationships. 
Ryback commented, "We constantly evaluate and find ways to improve
our company -- to make it more productive and efficient while
continuing to deliver exceptional customer service. Ultimately we are
committed to delivering superior financial results on behalf of our
shareholders." He concluded, "Reflecting on all that our banking team
has accomplished in restoring credit quality, regaining momentum in
new business growth, and improving operating efficiency, I cannot
help but look forward with excitement. We are committed, we are up to
the challenge, and we look ahead with determination and optimism."  
Asset Quality 
During the year ended December 31, 2012 we recorded a provision for
loan losses of $2.35 million down $1.15 million from the $3.50
million provision recorded during 2011. Net charge-offs totaled $3.6
million during the year ended December 31, 2012 and $3.9 million
during 2011. Net charge-offs as a percentage of average loans
decreased from 1.29% during 2011 to 1.18% during the year ended
December 31, 2012. 
The allowance for loan losses totaled $5.7 million at December 31,
2012 and $6.9 million at December 31, 2011. Specific reserves related
to impaired loans decreased from $2.1 million at December 31, 2011 to
$1.2 million at December 31, 2012. This decline in specific reserves
is reflected in the $3.6 million in net charge-offs during 2012. At
least quarterly the Company evaluates each specific reserve and if it
determines that the loss represented by the specific reserve is
uncollectable it reverses the specific reserve and takes a partial
charge-off in its place. General reserves decreased by $342 thousand
to $4.5 million at December 31, 2012. Related to a decline in
specific and general reserves, the allowance for loan losses as a
percentage of total loans decreased from 2.35% at December 31, 2011
to 1.80% at December 31, 2012. The percentage of general reserves to
unimpaired loans decreased from 1.80% at December 31, 2011 to 1.52%
at December 31, 2012 primarily related to a decrease in the
historical charge-off rate.  
Nonperforming loans at December 31, 2012 were $13.7 million, a
decrease of $3.1 million from the $16.8 million balance at December
31, 2011. Nonperforming loans as a percentage of total loans
decreased to 4.35% at December 31, 2012, down from 5.73% at December
31, 2011. Nonperforming assets (which are comprised of nonperforming
loans, other real estate owned ("OREO") and repossessed vehicle
holdings) at December 31, 2012 were $19.0 million, down from $25.5
million at December 31, 2011. Nonperforming assets as a percentage of
total assets were 3.98% at December 31, 2012 and 5.60% at December
31, 2011.  
Deposits, Investments and Loans  
Total deposits were $411.5 million as of December 31, 2012, up $20.4
million, or 5%, from the December 31, 2011 balance of $391.1 million.
Non-interest bearing demand deposits increased by $17.7 million, NOW
increased by $1.4 million, savings accounts increased by $6.2 million
and money market accounts increased by $4.9 million. Time deposits
declined by $9.8 million. We attribute much of the reduction in time
to the unusually low interest rate environment as we have seen a
movement out of time into more liquid deposits types. 
Total investment securities increased by $23.0 million from $57.9
million at December 31, 2011 to $80.9 million as of December 31,
2012. The increase in investment securities is consistent with our
asset/liability management policy as we chose to reduce excess
balances held at the Federal Reserve Bank (FRB) in order to increase
our return on these balances.  
The investment portfolio at December 31, 2012 and 2011 was invested
entirely in U.S. Government-sponsored agencies. There were no Federal
funds sold at December 31, 2012 or 2011; however, the Bank maintained
interest earning balances at the FRB totaling $24.5 million at
December 31, 2012 and $47.8 million at December 31, 2011,
respectively. These balances currently earn 25 basis points.  
Net loans increased by $22.8 million from $287 million at December
31, 2011 to $310 million at December 31, 2012. The Company's largest
lending categories are commercial real estate loans, agricultural
loans and residential real estate loans. These categories accounted
for approximately 44.3%, 11.1% and 11.0%, respectively of the
Company's total loan portfolio at December 31, 2012, and
approximately 40.6%, 13.2% and 13.3%, respectively of the Company's
total loan portfolio at December 31, 2011. Construction and land
development loans continue to decline and represented 5.0% and 5.8%
of the loan portfolio as of December 31, 2012 and December 31, 2011,
respectively.  
Shareholders' Equity  
Shareholders' equity as of December 31, 2012 totaled $41.9 million up
from $39.6 million as of December 31, 2011. Book value per common
share increased to $6.28 at December 31, 2012 from $5.83 at December
31, 2011. Plumas Bancorp's leveraged capital ratio was 10.3% at
December 31, 2012, up from 9.8% at December 31, 2011.  
Net Interest Income and Net Interest Margin 
Net interest income is the difference between interest income and
interest expense. Net interest income, on a nontax-equivalent basis,
was $17.2 million for the year ended December 31, 2012, up $331
thousand, or 2%, from $16.8 million for 2011. A decrease of $243
thousand, or 1.3% in interest income, from $18.7 million during 2011
to $18.4 million during the current year, was offset by a decline in
interest expense of $574 thousand. Net interest margin for the twelve
months ended December 31, 2012 increased 10 basis points, or 2%, to
4.18%, up from 4.08% for the same period in 2011. 
Net interest income, on a nontax-equivalent basis, for the three
months ended December 31, 2012 was $4.4 million, an increase of $139
thousand from the $4.3 million earned during the same period in 2011.
The $139 thousand includes a reduction of $96 thousand in interest
expense from $379 thousand during the fourth quarter of 2011 to $283
thousand and an increase in interest income of $43 thousand to $4.7
million for the three months ended December 31, 2012. The largest
components of the decrease in interest expense was a decline in the
average balance and rate paid on time deposits while interest income
benefited from an increase in average balance on the Company's loan
and investment portfolios partially offset by a decline in yield on
investment securities and loans.  
Non-Interest Income/Expense 
During the twelve months ended December 31, 2012 non-interest income
decreased by $566 thousand to $6.6 million from $7.2 million during
2011. The largest component of this decrease was a decrease of $615
thousand in gain on the sale of government guaranteed loans from $1.9
million during 2011 to $1.3 million during the year ended December
31, 2012. 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 gain on sales of loans during 2011 representing
both loans sold during the twelve months ended December 31, 2011 and
loans sold during the fourth quarter of 2010. In addition, gain on
sale of loans during 2011benefited 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 gain on sales of investment securities
from $666 thousand during the twelve months ended December 31, 2011
to $403 thousand during 2012. 
We continue to achieve savings in many categories of non-interest
expense resulting in a reduction in non-interest expense of $869
thousand from $19.2 million during the twelve months ended December
31, 2011 to $18.4 million during 2012. Significant reductions were
realized in many categories of non-interest expense including salary
and benefits expense, FDIC insurance, and OREO operating expenses. 
During the three months ended December 31, 2012 non-interest income
increased by $141 thousand to $1.5 million. This increase was mostly
related to an increase in gain on sale of guaranteed portions of SBA
loans. Related to a $195 thousand nonrecurring adjustment to the
liability for executive salary continuation costs, non-interest
expense increased by $117 thousand from $4.5 million during the three
months ended December 31, 2011 to $4.6 million during the fourth
quarter of 2012.  
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 December 31,                      
                                   -------------------                      
                                                        Dollar   Percentage 
                                      2012      2011    Change     Change   
                                   --------- --------- --------  ---------- 
  ASSETS                                                                    
Cash and due from banks            $  44,675 $  63,076 $(18,401)      -29.2%
Investment securities                 80,964    57,917   23,047        39.8%
Loans, net of allowance for loan                                            
 losses                              310,271   287,432   22,839         7.9%
Premises and equipment, net           13,271    13,457     (186)       -1.4%
Bank owned life insurance             11,160    10,815      345         3.2%
Real estate and vehicles acquired                                           
 through foreclosure                   5,336     8,680   (3,344)      -38.5%
Accrued interest receivable and                                             
 other assets                         12,125    13,972   (1,847)      -13.2%
                                   --------- --------- --------             
  Total assets                     $ 477,802 $ 455,349 $ 22,453         4.9%
                                   ========= ========= ========             
                                                                            
  LIABILITIES AND SHAREHOLDERS'                                             
   EQUITY                                                                   
Deposits                           $ 411,562 $ 391,140 $ 20,422         5.2%
Accrued interest payable and other                                          
 liabilities                          14,080    14,265     (185)       -1.3%
Junior subordinated deferrable                                              
 interest debentures                  10,310    10,310        -         0.0%
                                   --------- --------- --------             
  Total liabilities                  435,952   415,715   20,237         4.9%
Shareholders' equity                  41,850    39,634    2,216         5.6%
                                   --------- --------- --------             
  Total liabilities and                                                     
   shareholders' equity            $ 477,802 $ 455,349 $ 22,453         4.9%
                                   ========= ========= ========             
                                                                            
                                                                            
                                                                            
                                                                            
                               PLUMAS BANCORP                               
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
                   (In thousands, except per share data)                    
                                (Unaudited)                                 
                                                                            
  FOR THE THREE MONTHS ENDED DECEMBER                    Dollar  Percentage 
   31,                                  2012     2011    Change    Change   
                                      -------  -------  -------  ---------- 
                                                                            
Interest income                       $ 4,684  $ 4,641  $    43         0.9%
Interest expense                          283      379      (96)      -25.3%
                                      -------  -------  -------             
  Net interest income before                                                
   provision for loan losses            4,401    4,262      139         3.3%
Provision for loan losses                 450      800     (350)      -43.8%
                                      -------  -------  -------             
  Net interest income after provision                                       
   for loan losses                      3,951    3,462      489        14.1%
Non-interest income                     1,498    1,357      141        10.4%
Non-interest expenses                   4,623    4,506      117         2.6%
                                      -------  -------  -------             
  Income before income taxes              826      313      513       163.9%
Provision for income taxes                279       68      211       310.3%
                                      -------  -------  -------             
  Net income                          $   547  $   245  $   302       123.3%
  Dividends on preferred shares          (171)    (171)       0         0.0%
                                      -------  -------  -------             
  Net income available to common                                            
   shareholders                       $   376  $    74  $   302       408.1%
                                      =======  =======  =======             
                                                                            
Basic earnings per share              $  0.08  $  0.02  $  0.06       300.0%
                                      =======  =======  =======             
Diluted earnings per share            $  0.08  $  0.02  $  0.06       300.0%
                                      =======  =======  =======             
                                                                            
                                                                            
FOR THE YEAR ENDED DECEMBER 31,                          Dollar  Percentage 
                                        2012     2011    Change    Change   
                                      -------  -------  -------  ---------- 
                                                                            
Interest income                       $18,425  $18,668  $  (243)       -1.3%
Interest expense                        1,274    1,848     (574)      -31.1%
                                      -------  -------  -------             
  Net interest income before                                                
   provision for loan losses           17,151   16,820      331         2.0%
Provision for loan losses               2,350    3,500   (1,150)      -32.9%
                                      -------  -------  -------             
  Net interest income after provision                                       
   for loan losses                     14,801   13,320    1,481        11.1%
Non-interest income                     6,596    7,162     (566)       -7.9%
Non-interest expenses                  18,377   19,246     (869)       -4.5%
                                      -------  -------  -------             
  Income before income taxes            3,020    1,236    1,784       144.3%
Provision for income taxes              1,070      295      775       262.7%
                                      -------  -------  -------             
  Net income                          $ 1,950  $   941  $ 1,009       107.2%
  Dividends on preferred shares          (684)    (684)       0         0.0%
                                      -------  -------  -------             
  Net income available to common                                            
   shareholders                       $ 1,266  $   257  $ 1,009       392.6%
                                      =======  =======  =======             
                                                                            
Basic earnings per share              $  0.26  $  0.05  $  0.21       420.0%
                                      =======  =======  =======             
Diluted earnings per share            $  0.26  $  0.05  $  0.21       420.0%
                                      =======  =======  =======             
                                                                            
                                                                            
                                                                            
                                                                            
                               PLUMAS BANCORP                               
                       SELECTED FINANCIAL INFORMATION                       
                   (In thousands, except per share data)                    
                                (Unaudited)                                 
                                                                            
                                                           December 31,     
                                                       -------------------- 
                                                          2012       2011   
                                                       ---------  --------- 
AVERAGE BALANCES FOR THE YEAR ENDED                                         
Assets                                                 $ 464,609  $ 467,354 
Earning assets                                         $ 410,246  $ 411,908 
Loans                                                  $ 301,799  $ 302,841 
Deposits                                               $ 401,110  $ 407,982 
Common equity                                          $  29,213  $  27,520 
Total equity                                           $  41,023  $  39,244 
                                                                            
CREDIT QUALITY DATA                                                         
Allowance for loan losses                              $   5,686  $   6,908 
Allowance for loan losses as a percentage of total                          
 loans                                                      1.80%      2.35%
Nonperforming loans                                    $  13,698  $  16,829 
Nonperforming assets                                   $  19,034  $  25,509 
Nonperforming loans as a percentage of total loans          4.35%      5.73%
Nonperforming assets as a percentage of total assets        3.98%      5.60%
Year-to-date net charge-offs                           $   3,572  $   3,916 
Year-to-date net charge-offs as a percentage of                             
 average loans                                              1.18%      1.29%
                                                                            
SHARE AND PER SHARE DATA                                                    
Basic earnings per share for the quarter               $    0.08  $    0.02 
Diluted earnings per share for the quarter             $    0.08  $    0.02 
Quarterly weighted average shares outstanding              4,776      4,776 
Quarterly weighted average diluted shares outstanding      4,791      4,776 
Basic earnings per share, year-to-date                 $    0.26  $    0.05 
Diluted earnings per share, year-to-date               $    0.26  $    0.05 
Year-to-date weighted average shares outstanding           4,776      4,776 
Year-to-date weighted average diluted shares                                
 outstanding                                               4,782      4,776 
Book value per common share                            $    6.28  $    5.83 
Total shares outstanding                                   4,776      4,776 
                                                                            
QUARTERLY KEY FINANCIAL RATIOS                                              
Annualized return on average common equity                   5.0%       1.0%
Annualized return on average assets                         0.45%      0.21%
Net interest margin                                         4.11%      4.15%
Efficiency ratio                                            78.4%      80.2%
                                                                            
YEAR END KEY FINANCIAL RATIOS                                               
Return on average common equity                              4.3%       0.9%
Return on average assets                                    0.42%      0.20%
Net interest margin                                         4.18%      4.08%
Efficiency ratio                                            77.4%      80.3%
Loan to Deposit Ratio                                       76.6%      75.1%
Total Risk-Based Capital Ratio                              15.1%      15.0%

  
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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