Plumas Bancorp Reports a 175% Increase in Quarterly Earnings

Plumas Bancorp Reports a 175% Increase in Quarterly Earnings 
QUINCY, CA -- (Marketwired) -- 04/30/13 --  Plumas Bancorp (NASDAQ:
PLBC), a bank holding company and the parent company of Plumas Bank,
today announced first quarter 2013 earnings of $616 thousand an
increase of 175% from $224 thousand during the first quarter of 2012. 
Net income allocable to common shareholders increased by $392
thousand to $445 thousand or $0.09 per share during the three months
ended March 31, 2013 compared to $53 thousand or $0.01 per share
during the comparable three month period in 2012. (Income allocable
to common shareholders is calculated by subtracting dividends and
discount amortized on preferred stock from net income.)  
Andrew J. Ryback, president and chief executive officer of the
Company and the Bank, remarked, "The Board of Directors, executives
and I are very pleased with the marked improvement in our performance
for the first quarter of 2013 compared to the same quarter a year
ago. Our success in growing and diversifying our loan portfolio
combined with our focus on maximizing productivity and efficiency are
key factors in our continued earnings growth." He added, "Our Company
has come a long way by being focused on improving asset quality and
growing our core bank earnings." 
Ryback continued, "We are also pleased to announce several very
important recent developments. First, on April 19, 2013, the Company
received notification that the Written Agreement with the Federal
Reserve Bank of San Francisco, originally entered into on July 28,
2011, was lifted. Our Board of Directors and management team have
worked tirelessly to improve our financial condition and it is
rewarding to have our regulators acknowledge this improvement by
terminating the Written Agreement.  
"Another significant development that occurred in April was the
repurchase at auction of preferred shares that were issued to the
United States Department of Treasury during the low point of the
economic recession. If you'll recall, on January 30, 2009, the
Company issued 11,949 shares of non-voting preferred shares to the
Treasury for the purpose of shoring up our capital position in
support of our efforts to improve the asset quality of our loan
portfolio. Now, four years later, after having made significant
progress towards achievement of our asset-quality improvement goals,
we have been successful in repurchasing 7,000 shares, or
approximately 60%, of the outstanding securities from the Treasury
for $7.6 million. This repurchase at auction results in a discount of
approximately 7% on the face value of the preferred shares plus
related outstanding dividends. In order to repurchase these preferred
securities, the Company used proceeds from the April 15, 2013,
issuance of $7.5 million in unsecured borrowings from an unrelated
third party. The Company plans to repurchase the remaining 4,949
preferred shares through the continued retention of earnings.  
"The repayment to the Treasury and the exit from this government
program are indicators of the Bank's progress in successfully
navigating through the global financial crisis while at the same time
protecting our common shareholders' best interests. Not many of our
community bank competitors can say the same. Some of these
institutions were unable to access sufficient capital in any form,
and as a result, their institutions failed. Many of the institutions
that survived did so by issuing dilutive common stock at prices below
book value. Our Company on the other hand, was able to access
non-dilutive capital and with our strengthening financial condition
we are now in a position to repurchase these preferred shares." 
Ryback concluded, "With the Treasury auction now behind us we are
thrilled to be able to return our full attention to the business of
banking as well as our other long-term strategic initiatives. As
always, we are appreciative of the patience and support from our
shareholders, clients and employees." 
Financial Highlights 
Three months ended March 31, 2013 compared to March 31, 2012 


 
--  Annualized earnings on average common equity increased from 0.8% in
    2012 to 5.9% during the three months ended March 31, 2013.
--  Annualized return on average assets increased from 0.20% to 0.53%.
--  Income before provision for taxes increased by $604 thousand to $954
    thousand.
--  Net Interest income increased by $221 thousand, or 5.4% to $4.3
    million.
--  Non-interest income increased by $273 thousand and non-interest
    expense declined by $210 thousand.
--  Net interest margin for the three months ended March 31, 2013
    increased to 4.15% compared to 4.09% during the same 2012 quarter.

  
March 31, 2013 compared to March 31, 2012 


 
--  Average loans increased by $17.6 million or 6% to $312 million at
    March 31, 2013 compared to $294 million at March 31, 2012.
--  Average deposits increased by $12.5 million to $406 million at March
    31, 2013.
--  Nonperforming loans decreased by $1.8 million from $16.0 million at
    March 31, 2012 to $14.2 million at March 31, 2013.
--  Nonperforming assets decreased by $4.5 million from $24.0 million at
    March 31, 2012 to $19.5 million at March 31, 2013.
--  The ratio of nonperforming loans to total loans decreased from 5.45%
    to 4.54% and the ratio of nonperforming assets to total assets
    decreased from 5.22% to 4.09%.
--  Total shareholders' equity increased by $2.3 million to $42.3 million.
--  Total leverage capital increased from 10.1% at March 31, 2012 to 10.6%
    at March 31, 2013.

  
Asset Quality 
Nonperforming loans at March 31, 2013 were $14.2 million, a decrease
of $1.8 million, or 11% from the $16.0 million balance at March 31,
2012. Nonperforming loans as a percentage of total loans decreased to
4.54% at March 31, 2013, down from 5.45% at March 31, 2012.
Nonperforming assets (which are comprised of nonperforming loans,
other real estate owned ("OREO") and repossessed vehicle holdings) at
March 31, 2013 were $19.5 million, down from $24.0 million at March
31, 2012. Nonperforming assets as a percentage of total assets
decreased to 4.09% at March 31, 2013 down from 5.22% at March 31,
2012.  
During the quarter ended March 31, 2013 we recorded a provision for
loan losses of $700 thousand up from $600 thousand during the quarter
ended March 31, 2012. The $700 thousand provision recorded for the
three months ended March 31, 2013 is primarily related to a specific
reserve for one land development loan relationship.  
Net charge-offs totaled $609 thousand during the three months ended
March 31, 2013 down from $786 thousand during the same period in
2012. Net charge-offs as an annualized percentage of average loans
decreased from 1.07% during the quarter ended March 31, 2012 to 0.79%
during the current period. The allowance for loan losses totaled $5.8
million at March 31, 2013 and $6.7 million at March 31, 2012. The
allowance for loan losses at March 31, 2013 consisted of $1.4 million
in specific reserves related to impaired loans and $4.4 million in
general reserves. This compares to $1.9 million in specific reserves
related to impaired loans and $4.8 million in general reserves at
March 31, 2012. As a percentage of unimpaired loans, general reserves
were 1.49% at March 31, 2013 and 1.78% at March 31, 2012. Overall,
the allowance for loan losses as a percentage of total loans
decreased from 2.29% at March 31, 2012 to 1.84% at March 31, 2013.
The decrease in allowance as a percentage of unimpaired loans is
consistent with the improvement in loan quality during the twelve
months ended March 31, 2013. 
Deposits, Investments and Loans  
Total deposits were $412 million as of March 31, 2013, an increase of
$13.6 million, or 3%, from the March 31, 2012 balance of $399
million. Core deposit growth was strong with year-over-year increases
in non-interest bearing deposits of $8.7 million, $0.1 million in NOW
and $15.9 million in savings and money market deposits. Time deposits
declined by $11.1 million. We attribute the reduction in time
deposits to the unusually low interest rate environment as we have
seen a movement out of time deposits into more liquid deposit types. 
Total investment securities increased by $22.7 million from $57.8
million at March 31, 2012 to $80.5 million as of March 31, 2013. This
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 of San Francisco (FRB) in
order to increase our return on these balances. Cash and due from
banks totaled $47.8 million at March 31, 2013 a decrease of $20.9
million from March 31, 2012. Included in cash and due from banks at
March 31, 2013 was interest earning balances held at the FRB totaling
$31.9 million.  
Net loans increased by $20.9 million, or 7%, from $287.5 million at
March 31, 2012 to $308.4 million at March 31, 2013. The Company is
focused on growing loan balances through a balanced and diversified
approach. The increase in loan balances during the twelve month
period ended March 31, 2013 includes growth in the Company's
automobile, SBA and commercial real estate loan portfolios.  
Shareholders' Equity  
Total shareholders' equity increased by $2.3 million from $40.0
million at March 31, 2012 to $42.3 million at March 31, 2013. Book
value per common share increased to $6.37 at March 31, 2013 from
$5.90 at March 31, 2012. Plumas Bancorp's leveraged capital ratio was
10.6% at March 31, 2012, up from 10.1% at March 31, 2012.  
Net Interest Income and Net Interest Margin 
Net interest income, on a nontax-equivalent basis, was $4.3 million
for the three months ended March 31, 2013, an increase of $221
thousand, or 5%, from $4.1 million for the same period in 2012. The
increase in net interest income includes both an increase in interest
income and a decline in interest expense. Interest income, benefiting
from an increase in the average balance of both loans and
investments, increased by $148 thousand. Interest expense decreased
by $73 thousand mostly related to a decline in rate paid and average
balance in time deposits. Net interest margin for the three months
ended March 31, 2013 increased 6 basis points to 4.15%, up from 4.09%
for the same period in 2012. 
Non-Interest Income/Expense 
During the three months ended March 31, 2013 non-interest income
increased by $273 thousand to $1.7 million up from $1.4 million
during the quarter ended March 31, 2012. The largest component of
this increase was $287 thousand in gains on the sale of government
guaranteed loans. The largest decrease in non-interest income was
related to a decline in gain on sale of securities. The Company
elected not to sell investment securities during the three months
ending March 31, 2013. During the three months ended March 31, 2012,
the Company sold three available-for-sale securities for total
proceeds of $4,471,000, which resulted in the recognition of a
$51,000 gain on sale. 
During the three months ended March 31, 2013, total non-interest
expense declined by $210 thousand, or 5%, to $4.4 million, down from
$4.6 million for the comparable period in 2012. The Company
experienced declines in several categories of non-interest expense
the largest of which were $99 thousand in salary and benefit expense,
$73 thousand in the provision from changes in valuation of OREO and
$47 thousand in postage. The largest increase in non-interest expense
was $91 thousand in outside service fees related to outsourcing of
our statement processing operations beginning in June of 2012 and an
increase in costs related to monitoring and maintaining our ATMs.
During 2012 the Bank modernized its ATM network by purchasing new ATM
machines which have the ability to accept currency and checks and
provide an imaged receipt. While these ATMs provide a significant
increase in functionality, they are also more expensive to operate
and maintain. 
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 March 31,                              
                          ------------------------                          
                                                       Dollar    Percentage 
                              2013         2012        Change      Change   
                          -----------  -----------  -----------  ---------- 
          ASSETS                                                            
Cash and due from banks   $    47,762  $    68,661  $   (20,899)      -30.4%
Investment securities          80,446       57,777       22,669        39.2%
Loans, net of allowance                                                     
 for loan losses              308,436      287,512       20,924         7.3%
Premises and equipment,                                                     
 net                           13,010       13,296         (286)       -2.2%
Bank owned life insurance      11,251       10,900          351         3.2%
Real estate and vehicles                                                    
 acquired through                                                           
 foreclosure                    5,318        8,023       (2,705)      -33.7%
Accrued interest                                                            
 receivable and other                                                       
 assets                        11,758       14,049       (2,291)      -16.3%
                          -----------  -----------  -----------             
  Total assets            $   477,981  $   460,218  $    17,763         3.9%
                          ===========  ===========  ===========             
                                                                            
     LIABILITIES AND                                                        
   SHAREHOLDERS' EQUITY                                                     
Deposits                  $   412,232  $   398,618  $    13,614         3.4%
Repurchase agreements           7,401        5,283        2,118        40.1%
Accrued interest payable                                                    
 and other liabilities          5,731        6,042         (311)       -5.1%
Junior subordinated                                                         
 deferrable interest                                                        
 debentures                    10,310       10,310            -           - 
                          -----------  -----------  -----------             
  Total liabilities           435,674      420,253       15,421         3.7%
Shareholders' equity           42,307       39,965        2,342         5.9%
                          -----------  -----------  -----------             
  Total liabilities and                                                     
   shareholders' equity   $   477,981  $   460,218  $    17,763         3.9%
                          ===========  ===========  ===========             
                                                                            
                                                                            
                                                                            
                               PLUMAS BANCORP                               
                CONDENSED CONSOLIDATED STATEMENTS OF INCOME                 
                   (In thousands, except per share data)                    
                                (Unaudited)                                 
                                                                            
   FOR THE THREE MONTHS                                Dollar    Percentage 
     ENDED MARCH 31,          2013         2012        Change      Change   
                          -----------  -----------  -----------  ---------- 
                                                                            
Interest income           $     4,594  $     4,446  $       148         3.3%
Interest expense                  265          338          (73)      -21.6%
                          -----------  -----------  -----------             
  Net interest income                                                       
   before provision for                                                     
   loan losses                  4,329        4,108          221         5.4%
Provision for loan losses         700          600          100        16.7%
                          -----------  -----------  -----------             
  Net interest income                                                       
   after provision for                                                      
   loan losses                  3,629        3,508          121         3.4%
Non-interest income             1,700        1,427          273        19.1%
Non-interest expenses           4,375        4,585         (210)       -4.6%
                          -----------  -----------  -----------             
  Income before income                                                      
   taxes                          954          350          604       172.6%
Provision for income                                                        
 taxes                            338          126          212       168.3%
                          -----------  -----------  -----------             
  Net income              $       616  $       224  $       392       175.0%
  Dividends on preferred                                                    
   shares                        (171)        (171)           -           - 
                          -----------  -----------  -----------             
  Net income available to                                                   
   common shareholders    $       445  $        53  $       392       739.6%
                          ===========  ===========  ===========             
                                                                            
Basic income per share    $      0.09  $      0.01  $      0.08       800.0%
                          ===========  ===========  ===========             
Diluted income per share  $      0.09  $      0.01  $      0.08       800.0%
                          ===========  ===========  ===========             
                                                                            
                                                                            
                                                                            
                               PLUMAS BANCORP                               
                       SELECTED FINANCIAL INFORMATION                       
                   (In thousands, except per share data)                    
                                (Unaudited)                                 
                                                                            
                                                             March 31,      
                                                       -------------------- 
                                                          2013       2012   
                                                       ---------  --------- 
QUARTERLY AVERAGE BALANCES                                                  
Assets                                                 $ 473,698  $ 458,016 
Earning assets                                         $ 422,599  $ 404,247 
Loans                                                  $ 311,957  $ 294,322 
Deposits                                               $ 406,365  $ 393,893 
Common Equity                                  
        $  30,530  $  28,388 
Total Equity                                           $  42,394  $  40,166 
                                                                            
CREDIT QUALITY DATA                                                         
Allowance for loan losses                              $   5,777  $   6,722 
Allowance for loan losses as a percentage of total                          
 loans                                                      1.84%      2.29%
Nonperforming loans                                    $  14,232  $  16,004 
Nonperforming assets                                   $  19,550  $  24,027 
Nonperforming loans as a percentage of total loans          4.54%      5.45%
Nonperforming assets as a percentage of total assets        4.09%      5.22%
Year-to-date net charge-offs                           $     609  $     786 
Year-to-date net charge-offs as a percentage of                             
 average loans, annualized                                  0.79%      1.07%
                                                                            
SHARE AND PER SHARE DATA                                                    
Basic income per share                                 $    0.09  $    0.01 
Diluted income per share                               $    0.09  $    0.01 
Quarterly weighted average shares outstanding              4,776      4,776 
Quarterly weighted average diluted shares outstanding      4,831      4,776 
Book value per common share                            $    6.37  $    5.90 
Total shares outstanding                                   4,776      4,776 
                                                                            
KEY FINANCIAL RATIOS                                                        
Annualized earnings on average common equity                 5.9%       0.8%
Annualized return on average assets                         0.53%      0.20%
Net interest margin                                         4.15%      4.09%
Efficiency ratio                                            72.6%      82.8%
Loan to Deposit Ratio                                       76.0%      73.7%
Total Risk-Based Capital Ratio                              15.4%      15.2%

  
Contact: 
Elizabeth Kuipers
Vice President, Marketing Manager & Investor Relations Officer
Plumas Bank
35 S. Lindan Ave.
Quincy, CA 95971
530.283.7305 ext.8912
Fax: 530.283.9665
investorrelations@plumasbank.com 
 
 
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