Plumas Bancorp Reports a 122% Increase in Quarterly Earnings per Share

Plumas Bancorp Reports a 122% Increase in Quarterly Earnings per Share 
QUINCY, CA -- (Marketwired) -- 04/23/14 --  Plumas Bancorp (NASDAQ:
PLBC), the parent company of Plumas Bank, today announced first
quarter 2014 earnings of $942 thousand, an increase of $326 thousand
from $616 thousand during the first quarter of 2013. Net income
allocable to common shareholders increased by $497 thousand, or 112%
to $942 thousand or $0.20 per share during the three months ended
March 31, 2014 compared to $445 thousand or $0.09 per share during
the comparable three month period in 2013. (Income allocable to
common shareholders is calculated by subtracting dividends and
discount amortized on preferred stock from net income.)  
Financial Highlights 
Three months ended March 31, 2014 compared to March 31, 2013 


 
--  Basic income per common share increased by 122% from $0.09 during the
    first quarter of 2013 to $0.20 during the current quarter.
--  Annualized earnings on average common equity increased from 5.9% in
    2013 to 12.0% during the three months ended March 31, 2014.
--  Annualized return on average assets increased from 0.53% to 0.74%.
--  Income before provision for taxes increased by $606 thousand to $1.6
    million.
--  Net interest income increased by $254 thousand, or 5.9% to $4.6
    million.
--  Net charge-offs declined by $657 thousand from $609 thousand to net
    recoveries of $48 thousand.
--  The provision for loan losses declined by $550 thousand to $150
    thousand.

  
March 31, 2014 compared to March 31, 2013 


 
--  Total assets increased by $41.7 million, or 8.7% to $520 million.
--  Total loans increased by $32.5 million or over 10% to $341 million at
    March 31, 2014 compared to $308 million at March 31, 2013.
--  Total deposits increased by $43 million to $455 million at March 31,
    2014.
--  Nonperforming loans decreased by $5.6 million from $14.2 million at
    March 31, 2013 to $8.6 million at March 31, 2014.
--  Nonperforming assets decreased by $5.2 million from $19.5 million at
    March 31, 2013 to $14.3 million at March 31, 2014.
--  The ratio of nonperforming loans to total loans decreased from 4.54%
    to 2.48% and the ratio of nonperforming assets to total assets
    decreased from 4.09% to 2.76%.
--  Total common equity increased by $1.5 million to $31.9 million.

  
Andrew J. Ryback, president and chief executive officer of the Company
and the Bank, commented, "The Board of Directors, executives and I
are very pleased with the Company's solid performance for the first
quarter of 2014 which marks our 17th consecutive profitable quarter.
During the twelve months ended March 31, 2014 we grew loans and
deposits by over 10%. Additionally, quarterly net income increased by
53%, earnings per share by 122% and return on average equity (ROAE)
by over 100%. We were especially pleased with the growth in ROAE
which increased from 5.9% for the three months ended March 31, 2013
to 12.0% for the current quarter. During the recession, we considered
the option of raising new capital to help mitigate the effects of
dealing with our then-struggling loan portfolio. The improvement in
ROAE validates our strategic decision to not take that option, which
would have diluted our shareholders." 
Ryback concluded, "Our success is attributable to our dedicated
Board, our capable and experienced executives, and our talented team
of bankers, all of whom take a personal interest in our clients and
communities. It is through the hard work and dedication of this team
of people that we are a healthy, profitable institution that is
well-positioned for future growth."  
Asset Quality 
Nonperforming loans at March 31, 2014 were $8.6 million, a decrease
of $5.6 million, or 39% from the $14.2 million balance at March 31,
2013. Nonperforming loans as a percentage of total loans decreased to
2.48% at March 31, 2014, down from 4.54% at March 31, 2013.
Nonperforming assets (which are comprised of nonperforming loans,
other real estate owned ("OREO") and repossessed vehicle holdings) at
March 31, 2014 were $14.3 million, down from $19.5 million at March
31, 2013. Nonperforming assets as a percentage of total assets
decreased to 2.76% at March 31, 2014 down from 4.09% at March 31,
2013.  
During the quarter ended March 31, 2014 we recorded a provision for
loan losses of $150 thousand down from $700 thousand during the
quarter ended March 31, 2013. Net recoveries totaled $48 thousand
during the three months ended March 31, 2014 down from net
charge-offs of $609 thousand during the same period in 2013. The
allowance for loan losses totaled $5.7 million at March 31, 2014 and
$5.8 million at March 31, 2013. The allowance for loan losses at
March 31, 2014 consisted of $1.3 million in specific reserves related
to impaired loans and $4.4 million in general reserves. This compares
to $1.4 million in specific reserves related to impaired loans and
$4.4 million in general reserves at March 31, 2013. As a percentage
of unimpaired loans, general reserves were 1.49% at March 31, 2013
and 1.32% at March 31, 2014. Overall, the allowance for loan losses
as a percentage of total loans decreased from 1.84% at March 31, 2013
to 1.66% at March 31, 2014. The decrease in allowance as a percentage
of unimpaired loans is primarily related to reductions in historical
net charge-offs. 
Loans, Deposits, Investments and Cash  
Net loans increased by $32.5 million, or over 10%, from $308.4
million at March 31, 2013 to $340.9 million at March 31, 2014. 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, 2014 mostly relates to growth in the
Company's automobile and commercial real estate loan portfolios.  
Total deposits were $455 million as of March 31, 2014, an increase of
$43 million, or over 10%, from the March 31, 2013 balance of $412
million. Core deposit growth was strong with year-over-year increases
in non-interest bearing deposits of $25.5 million and $26.6 million
in savings and money market deposits. Interest bearing transaction
accounts (NOW) declined by $3 million primarily related to a decline
in public NOW balances as we have lower the rate paid on these
accounts. Time deposits declined by $6.1 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 $8.4 million from $80.4
million at March 31, 2013 to $88.8 million as of March 31, 2014. Cash
and due from banks totaled $50.2 million at March 31, 2014 an
increase of $2.4 million from $47.8 million from March 31, 2013.
Included in cash and due from banks at March 31, 2014 was interest
earning balances held at the Federal Reserve Bank of San Francisco
totaling $29.1 million.  
Shareholders' Equity  
Common equity increased by $1.5 million from $30.4 million at March
31, 2013 to $31.9 million at March 31, 2014. Total shareholders'
equity decreased by $10.4 million related to the repurchase of $11.9
million in preferred stock during 2013. Book value per common share
increased to $6.65 at March 31, 2014 from $6.37 at March 31, 2013.
Related to the repurchase of the preferred stock, Plumas Bancorp's
leveraged capital ratio decreased from 10.7% at March 31, 2013 to
8.2% at March 31, 2014; however, this still significantly exceeds the
regulatory minimum of 4.0%.  
Net Interest Income and Net Interest Margin 
Net interest income, on a nontax-equivalent basis, was $4.6 million
for the three months ended March 31, 2014, an increase of $254
thousand, or 6%, from $4.3 million for the same period in 2013. The
increase in net interest income includes an increase of $418 thousand
in interest income and a decline of $22 thousand in interest expense
on deposits. These items were partially offsetting by an increase in
interest expense on other interest-bearing liabilities of $186
thousand. Mostly related to the increase in interest expense on other
interest-bearing liabilities, net interest margin for the three
months ended March 31, 2014 decreased 16 basis points, or 4%, to
3.99%, down from 4.15% for the same period in 2013. 
Non-Interest Income/Expense 
During the three months ended March 31, 2014 non-interest income
totaled $1.7 million a decline of $12 thousand from the three months
ended March 31, 2013. The largest component of this decrease was a
decline of $189 thousand in gains on the sale of government
guaranteed loans. During the current quarter, proceeds from SBA loan
sales totaled $5.3 million resulting in a gain on sale of $332
thousand. This compares to proceeds of $7.7 million and gain on sale
of $521 thousand during the first quarter of 2013. The largest
increase in non-interest income was $118 thousand in service charge
income which we attribute to growth in the Company's demand deposit
accounts, an increase in debit card interchange income and a
restructuring of our service charge fee schedule beginning in August
of 2013.  
During the three months ended March 31, 2014, total non-interest
expense increased by $186 thousand, or 4%, to $4.6 million, up from
$4.4 million for the comparable period in 2013. While the Company
continued to experience declines in several categories of
non-interest expense, these were offset by increases in other items
the largest of which were $150 thousand in salary and benefit
expense, $84 thousand in outside service fees and $89 thousand in
OREO costs. The largest declines in non-interest expense were $72
thousand in professional fees, $44 thousand in deposit premium
amortization and a $33 thousand increase in gain on sale of OREO.  
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 
                                   2014        2013     Change     Change   
                                ---------   ---------  --------  ---------- 
  ASSETS                                                                    
Cash and due from banks         $  50,214   $  47,762  $  2,452         5.1%
Investment securities              88,830      80,446     8,384        10.4%
Loans, net of allowance for loan                                            
 losses                           340,931     308,436    32,495        10.5%
Premises and equipment, net        12,260      13,010      (750)       -5.8%
Bank owned life insurance          11,591      11,251       340         3.0%
Real estate and vehicles                                                    
 acquired through foreclosure       5,767       5,318       449         8.4%
Accrued interest receivable and                                             
 other assets                      10,092      11,758    (1,666)      -14.2%
                                ---------   ---------  --------             
  Total assets                  $ 519,685   $ 477,981  $ 41,704         8.7%
                                =========   =========  ========             
                                                                            
  LIABILITIES AND                                                           
   SHAREHOLDERS' EQUITY                                                     
Deposits                        $ 455,184   $ 412,232  $ 42,952        10.4%
Accrued interest payable and                                                
 other liabilities                 11,991      13,132    (1,141)       -8.7%
Note payable                        3,000           -     3,000       100.0%
Subordinated debentures             7,334           -     7,334       100.0%
Junior subordinated deferrable                                              
 interest debentures               10,310      10,310         -         0.0%
                                ---------   ---------  --------             
  Total liabilities               487,819     435,674    52,145        12.0%
                                ---------   ---------  --------             
Preferred stock                         -      11,877   (11,877)     -100.0%
Common equity                      31,866      30,430     1,436         4.7%
                                ---------   ---------  --------             
  Shareholders' equity             31,866      42,307   (10,441)      -24.7%
                                ---------   ---------  --------             
  Total liabilities and                                                     
   shareholders' equity         $ 519,685   $ 477,981  $ 41,704         8.7%
                                =========   =========  ========             
                                                                            
                                                                            
                                                                            
                               PLUMAS BANCORP                               
                CONDENSED CONSOLIDATED STATEMENTS OF INCOME                 
                   (In thousands, except per share data)                    
                                (Unaudited)                                 
                                                                            
    FOR THE THREE MONTHS ENDED                          Dollar   Percentage 
             MARCH 31,             2014        2013     Change     Change   
                                ---------   ---------  --------  ---------- 
                                                                            
Interest income                 $   5,012   $   4,594  $    418         9.1%
Interest expense                      429         265       164        61.9%
                                ---------   ---------  --------             
  Net interest income before                                                
   provision for loan losses        4,583       4,329       254         5.9%
Provision for loan losses             150         700      (550)      -78.6%
                                ---------   ---------  --------             
  Net interest income after                                                 
   provision for loan losses        4,433       3,629       804        22.2%
Non-interest income                 1,688       1,700       (12)       -0.7%
Non-interest expenses               4,561       4,375       186         4.3%
                                ---------   ---------  --------             
  Income before income taxes        1,560         954       606        63.5%
Provision for income taxes            618         338       280        82.8%
                                ---------   ---------  --------             
  Net income                    $     942   $     616  $    326        52.9%
Preferred Stock Dividends and                                               
 Discount Accretion                     -        (171)      171       100.0%
                                ---------   ---------  --------             
  Net income available to common                                            
   shareholders                 $     942   $     445  $    497       111.7%
                                =========   =========  ========             
                                                                            
Basic earnings per share        $    0.20   $    0.09  $   0.11       122.2%
                                =========   =========  ========             
Diluted earnings per share      $    0.19   $    0.09  $   0.10       111.1%
                                =========   =========  ========             
                                                                            
                                                                            
                                                                            
                               PLUMAS BANCORP                               
                       SELECTED FINANCIAL INFORMATION                       
                   (In thousands, except per share data)                    
                                (Unaudited)                                 
                                                                            
                                      March 31,                             
                                ---------------------                       
                                   2014        2013                         
                                ---------   ---------                       
QUARTERLY AVERAGE BALANCES                                                  
Assets                          $ 517,165   $ 473,698                       
Earning assets                  $ 465,634   $ 422,599                       
Loans                           $ 336,878   $ 311,957                       
Deposits                        $ 450,717   $ 406,365                       
Common equity                   $  31,756   $  30,530                       
Total equity                    $  31,756   $  42,394                       
                                                                            
CREDIT QUALITY DATA                                                         
Allowance for loan losses       $   5,715   $   5,777                       
Allowance for loan losses as a                                              
 percentage of total loans           1.66%       1.84%                      
Nonperforming loans             $   8,561   $  14,232                       
Nonperforming assets            $  14,328   $  19,550                       
Nonperforming loans as a                                                    
 percentage of total loans           2.48%       4.54%                      
Nonperforming assets as a                                                   
 percentage of total assets          2.76%       4.09%                      
Year-to-date net (recoveries)                                               
 charge-offs                    $     (48)  $     609                       
Year-to-date net (recoveries)                                               
 charge-offs as a percentage of                                             
 average loans, annualized          (0.06)%      0.79%                      
                                                                            
SHARE AND PER SHARE DATA                                                    
Basic income per share          $    0.20   $    0.09                       
Diluted income per share        $    0.19   $    0.09                       
Quarterly weighted average                                                  
 shares outstanding                 4,788       4,776                       
Quarterly weighted average                                                  
 diluted shares outstanding         4,929       4,831                       
Book value per common share     $    6.65   $    6.37                       
Total shares outstanding            4,790       4,776                       
                                                                            
KEY FINANCIAL RATIOS                                                        
Annualized earnings on average                                              
 common equity                       12.0%        5.9%                      
Annualized return on average                                                
 assets                              0.74%       0.53%                      
Net interest margin                  3.99%       4.15%                      
Efficiency ratio                     72.7%       72.6%                      
Loan to Deposit Ratio                76.0%       76.0%                      
Total Risk-Based Capital Ratio       14.0%       15.4%                      

  
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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