Plumas Bancorp Reports a 26% Increase in Second Quarter Earnings and a 25% Reduction in Nonperforming Assets

Plumas Bancorp Reports a 26% Increase in Second Quarter Earnings and a 25% 
Reduction in Nonperforming Assets 
NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: Plumas Bancorp 
NASDAQ SYMBOL: PLBC 
JULY 23, 2014 
Plumas Bancorp Reports a 26% Increase in Second Quarter Earnings and a 25%
Reduction in Nonperforming Assets 
QUINCY, CA --(Marketwired - July 23, 2014) -  Plumas Bancorp (NASDAQ: PLBC), a
bank holding company and the parent company of Plumas Bank, today announced
second quarter 2014 earnings of $1.1 million, an increase of $234 thousand or
26%, as compared to $891 thousand during the second quarter of 2013. For the
six months ended June 30, 2014, Plumas Bancorp (the "Company")
reported an increase in net income of $560 thousand or 37%, from $1.5 million
during the first six months of 2013 to $2.1 million during the six months ended
June 30, 2014. 
Net income allocable to common shareholders decreased by $186 thousand from
$1.3 million or $0.27 per diluted share during the three months ended June 30,
2013 to $1.1 million or $0.23 per diluted share during the current three month
period. For the six months ended June 30, 2014, net income allocable to common
shareholders totaled $2.1 million or $0.42 per diluted share compared to $1.8
million or $0.36 per diluted share during the six months ended June 30, 2013.
Net income allocable to common shareholders is calculated by subtracting
dividends accrued and discount amortized on preferred stock from net income.
There were no shares of preferred stock outstanding during 2014. During the
three and six months ended June 30, 2013, accrued dividends and discount
amortized on preferred stock totaled $110 thousand and $281 thousand,
respectively. In addition, during the second quarter of 2013 the Company
recognized a $530 thousand discount on redemption of preferred stock which was
included as an addition to net income allocable to common shareholders during
the 2013 periods.  
Andrew J. Ryback, president and chief executive officer of the Company and
Plumas Bank, remarked, "The Board of Directors, executives and I are very
pleased with the continued improvement in both asset quality and core earnings,
achieved during 2014. For a number of years now we have been dedicated to the
goal of reducing problem assets, growing loan balances in a diversified manner
and increasing the efficiency of our operations. These second quarter results
continue to demonstrate that these efforts continue to pay off." 
Kerry D. Wilson, executive vice president and chief credit officer, expanded on
Ryback's comments, "We have been extremely effective in reducing our
classified asset balances. I'm very pleased to report that in the second
quarter we sold our largest non-performing OREO asset, valued at $2.2 million,
and recorded a gain of $28 thousand."  
Ryback continued, "In addition, we are excited to report that we have
recently expanded into the Chico, California market. We have hired a very
experienced commercial/agricultural loan officer and have opened a loan
production office there. Plumas Bank remains committed to meeting the credit
needs of businesses in the communities that we serve and this expansion
enhances our commercial and agricultural lending capabilities."  
Ryback concluded, "We are committed to delivering excellent service to our
customers, providing a superior return to our shareholders and supporting our
communities. And while we are pleased with our second quarter and year-to-date
financial results, we know that we still have much work to do. We are
committed, we are up to the challenge, and we look ahead with determination and
optimism."  
Financial Highlights 
June 30, 2014 compared to June 30, 2013 
/T/ 
--  Total assets increased by $28.1 million, or 5.7% to $521 million.
--  Net loans increased by $34.6 million or 11% to $353 million at June 30, 
2014 compared to $318 million at June 30, 2013.
--  Total deposits increased by $24.4 million to $457 million at June 30, 
2014.
--  Nonperforming loans decreased by $0.7 million from $7.6 million at June 
30, 2013 to $6.9 million at June 30, 2014.
--  Nonperforming assets decreased by $3.5 million from $14.3 million at 
June 30, 2013 to $10.8 million at June 30, 2014.
--  The ratio of nonperforming loans to total loans decreased from 2.36% to 
1.93% and the ratio of nonperforming assets to total assets decreased 
from 2.90% to 2.07%.
--  Annualized net charges-offs as a percent of average loans declined from 
0.97% to 0.36%.
--  Total common equity increased by $4.6 million to $33.6 million. 
/T/ 
Three months ended June 30, 2014 compared to June 30, 2013 
/T/ 
--  Annualized return on average assets increased from 0.74% to 0.87%.
--  Income before provision for taxes increased by $409 thousand to $1.9 
million. 
--  Net interest income increased by $276 thousand, or 6% to $4.7 million.
--  The provision for loan losses declined by $100 thousand to $300 
thousand. 
--  Non-interest income increased by $196 thousand, or 11% to $1.9 million. 
/T/ 
Six months ended June 30, 2014 compared to June 30, 2013 
/T/ 
--  Increased net income by $560 thousand or 37% to $2.1 million and diluted 
EPS by $0.06 or 17% from $0.36 to $0.42.
--  Increased net interest income by $529 thousand to $9.3 million.
--  Increased non-interest income by $184 thousand.
--  The provision for loan losses declined by $650 thousand to $450 
thousand. 
/T/ 
Asset Quality 
Nonperforming loans at June 30, 2014 were $6.9 million, a decrease of $713
thousand, or 9% from the $7.6 million balance at June 30, 2013. Nonperforming
loans as a percentage of total loans decreased to 1.93% at June 30, 2014, down
from 2.36% at June 30, 2013. Nonperforming assets (which are comprised of
nonperforming loans, other real estate owned ("OREO") and repossessed
vehicle holdings ("OVO")) at June 30, 2014 were $10.8 million, down
25% from $14.3 million at June 30, 2013. Nonperforming assets as a percentage
of total assets decreased to 2.07% at June 30, 2014 down from 2.9% at June 30,
2013.  
The provision for loan losses declined by $650 thousand from $1.1 million
during the six months ended June 30, 2013 to $450 thousand the current period.
During the six months ended June 30, 2013 we recorded a provision for loan
losses of $1.1 million; $0.7 million of the $1.1 million provision was related
to a specific reserve required on a significant land development loan. During
June, 2013 this loan, which had a book balance after specific reserve of $2.3
million, was transferred to OREO. During June, 2014 this property was sold and
we recorded a $28 thousand gain on sale. 
Net charge-offs totaled $0.6 million during the six months ended June 30, 2014
and $1.5 million during the same period in 2013. Net charge-offs as a
percentage of average loans decreased from 0.97% during the six months ended
June 30, 2013 to 0.36% during the current period. The allowance for loan losses
totaled $5.4 million at June 30, 2014 and $5.3 million at June 30, 2013.
Consistent with the improvement in asset quality, the allowance for loan losses
as a percentage of total loans decreased from 1.63% at June 30, 2013 to 1.50%
at June 30, 2014. 
Loans, Deposits, Investments and Cash  
Net loans increased by $34.6 million, or 11%, from $318 million at June 30,
2013 to $353 million at June 30, 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 June 30, 2014 relates to growth
in the Company's automobile, commercial real estate and commercial loan
portfolios. Agricultural loans declined by $4.8 million; however, the Company
sees significant opportunity for growth in this portfolio in the coming months. 
Core deposit growth remains strong. Total deposits were $457 million as of June
30, 2014, up $24.4 million from the June 30, 2013 balance of $432 million.
Non-interest bearing demand deposits increased by $25.6 million and savings and
money market accounts increased by $13.1 million. Interest bearing transaction
accounts (NOW) declined by $7.3 million and time deposits declined by $7.0
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 $10.1 million from $80.7 million at
June 30, 2013 to $90.8 million as of June 30, 2014. Cash and due from banks
decreased by $11.7 million from $51.7 million at June 30, 2013 to $40.0 million
at June 30, 2014 as cash balances as well as the growth in deposits were used
to fund the increase in loans and investment securities. Included in cash and
due from banks at June 30, 2014 and June 30, 2013 was interest earning balances
held at the Federal Reserve Bank of San Francisco totaling $17.2 million and
$32.7 million, respectively.  
Shareholders' Equity  
Total shareholders' equity increased by $1.2 million from $32.4 million at
June 30, 2013 to $33.6 million at June 30, 2014 as earnings during the twelve
month period totaling $4 million and a decrease in net unrealized loss on
investment securities of $568 thousand were mostly offset by the repurchase of
our remaining preferred stock which totaled $3.4 million at June 30, 2013. The
remaining preferred stock was repurchased during the last six months of 2013.  
Net Interest Income and Net Interest Margin 
Net interest income, on a nontax-equivalent basis, was $4.7 million for the
three months ended June 30, 2014, an increase of $276 thousand, or 6%, from
$4.5 million for the same period in 2013. The increase in net interest income
includes an increase of $290 thousand in interest income and a decline of $22
thousand in interest expense on deposits. These items were partially offset by
an increase in interest expense on other interest-bearing liabilities of $36
thousand. Mostly related to a decline in loan yield, net interest margin for
the three months ended June 30, 2014 decreased 10 basis points, or 2%, to
4.04%, down from 4.14% for the same period in 2013. 
Net interest income, on a nontax-equivalent basis, for the six months ended
June 30, 2014 was $9.3 million, an increase of $529 thousand from the $8.8
million earned during the same period in 2013. The increase in net interest
income includes an increase of $707 thousand in interest income and a decline
of $44 thousand in interest expense on deposits. These items were partially
offsetting by an increase in interest expense on other interest-bearing
liabilities of $222 thousand. Net interest margin for the six months ended June
30, 2014 decreased 13 basis points, or 3%, to 4.02%, down from 4.15% for the
same period in 2013. 
Non-Interest Income and Expense 
During the three months ended June 30, 2014 non-interest income increased by
$196 thousand to $1.9 million up from $1.7 million during the three months
ended June 30, 2013. The largest component of this increase was an increase of
$121 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 structure beginning in
August of 2013.  
During the six months ended June 30, 2014 non-interest income totaled $3.6
million an increase of $184 thousand from the six months ended June 30, 2013.
The largest component of this increase was an increase of $240 thousand in
service charge income. A decline of $181 thousand in gains on the sale of
government guaranteed loans was partially offset by increases in other
categories of non-interest income.  
Non-interest expense totaled $4.5 million during the three months ended June
30, 2014 an increase of $163 thousand from $4.3 million during the same period
in 2013. The largest components of this increase were $311 thousand in salary
and benefit expense, $117 thousand in outside service fees and $91 thousand in
occupancy and equipment expense. The largest declines in non-interest expense
were $300 thousand in provision for OREO losses, $79 thousand in professional
fees and $43 thousand in deposit premium amortization. 
During the six months ended June 30, 2014, total non-interest expense increased
by $349 thousand, or 4%, to $9.0 million, up from $8.7 million for the
comparable period in 2013. The largest components of this increase were $461
thousand in salary and benefit expense, $201 thousand in outside service fees,
$115 thousand in OREO costs and $113 thousand in occupancy and equipment
expense. The largest declines in non-interest expense were $279 thousand in
provision for OREO losses, $151 thousand in professional fees and $87 thousand
in deposit premium amortization.  
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. 
/T/ 
PLUMAS BANCORP                                
CONDENSED CONSOLIDATED BALANCE SHEETS                     
(In thousands)                                
(Unaudited)                                  
As of June 30,                        
-----------------                       
Dollar   Percentage  
2014     2013    Change     Change    
-------- -------- --------  ---------- 
ASSETS                                                                      
Cash and due from banks              $ 39,992 $ 51,701 $(11,709)      -22.6%
Investment securities                  90,768   80,652   10,116        12.5%
Loans, net of allowance for loan                                            
 losses                               352,554  317,923   34,631        10.9%
Premises and equipment, net            12,053   12,848     (795)       -6.2%
Bank owned life insurance              11,676   11,333      343         3.0%
Real estate and vehicles acquired                                           
 through foreclosure                    3,914    6,714   (2,800)      -41.7%
Accrued interest receivable and                                             
 other assets                          10,277   11,935   (1,658)      -13.9% 
-------- -------- --------             
  Total assets                       $521,234 $493,106 $ 28,128         5.7% 
======== ======== ========              
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
Deposits                             $456,716 $432,284 $ 24,432         5.7%
Accrued interest payable and other                                          
 liabilities                           10,225   10,940     (715)       -6.5%
Note payable                            3,000        -    3,000       100.0%
Subordinated debentures                 7,374    7,215      159         2.2%
Junior subordinated deferrable                                              
 interest debentures                   10,310   10,310        -         0.0% 
-------- -------- --------             
  Total liabilities                   487,625  460,749   26,876         5.8% 
-------- -------- --------             
Preferred stock                             -    3,369   (3,369)     -100.0%
Common equity                          33,609   28,988    4,621        15.9% 
-------- -------- --------             
  Shareholders' equity                 33,609   32,357    1,252         3.9% 
-------- -------- --------             
  Total liabilities and                                                      
shareholders' equity              $521,234 $493,106 $ 28,128         5.7% 
======== ======== ========              
/T/ 
/T/ 
PLUMAS BANCORP                                
CONDENSED CONSOLIDATED STATEMENTS OF INCOME                  
(In thousands, except per share data)                     
(Unaudited)                                  
Dollar  Percentage 
  FOR THE THREE MONTHS ENDED JUNE 30,    2014    2013    Change    Change    
------- -------  -------  ----------  
Interest income                        $ 5,165 $ 4,875  $   290         5.9%
Interest expense                           427     413       14         3.4% 
------- -------  -------             
  Net interest income before provision                                       
for loan losses                       4,738   4,462      276         6.2%
Provision for loan losses                  300     400     (100)      -25.0% 
------- -------  -------             
  Net interest income after provision                                        
for loan losses                       4,438   4,062      376         9.3%
Non-interest income                      1,893   1,697      196        11.5%
Non-interest expenses                    4,464   4,301      163         3.8% 
------- -------  -------             
  Income before income taxes             1,867   1,458      409        28.1%
Provision for income taxes                 742     567      175        30.9% 
------- -------  -------             
  Net income                           $ 1,125 $   891  $   234        26.3%
Discount on Redemption of Preferred                                         
 Stock                                       -     530     (530)     -100.0%
Preferred Stock Dividends and Discount                                      
 Accretion                                   -    (110)     110      -100.0% 
------- -------  -------             
  Net income available to common                                             
shareholders                        $ 1,125 $ 1,311  $  (186)      -14.2% 
======= =======  =======              
Basic earnings per share               $  0.23 $  0.27  $ (0.04)      -14.8% 
======= =======  =======             
Diluted earnings per share             $  0.23 $  0.27  $ (0.04)      -14.8% 
======= =======  =======              
Dollar  Percentage  
FOR THE SIX MONTHS ENDED JUNE 30,     2014    2013    Change    Change    
------- -------  -------  ----------  
Interest income                        $10,176 $ 9,469  $   707         7.5%
Interest expense                           856     678      178        26.3% 
------- -------  -------             
  Net interest income before provision                                       
for loan losses                       9,320   8,791      529         6.0%
Provision for loan losses                  450   1,100     (650)      -59.1% 
------- -------  -------             
  Net interest income after provision                                        
for loan losses                       8,870   7,691    1,179        15.3%
Non-interest income                      3,582   3,398      184         5.4%
Non-interest expenses                    9,025   8,676      349         4.0% 
------- -------  -------             
  Income before income taxes             3,427   2,413    1,014        42.0%
Provision for income taxes               1,360     906      454        50.1% 
------- -------  -------             
  Net income                           $ 2,067 $ 1,507  $   560        37.2%
Discount on Redemption of Preferred                                         
 Stock                                       -     530     (530)     -100.0%
Preferred Stock Dividends and Discount                                      
 Accretion                                   -    (281)     281      -100.0% 
------- -------  -------             
  Net income available to common                                             
shareholders                        $ 2,067 $ 1,756  $   311        17.7% 
======= =======  =======              
Basic earnings per share               $  0.43 $  0.37  $  0.06        16.2% 
======= =======  =======             
Diluted earnings per share             $  0.42 $  0.36  $  0.06        16.7% 
======= =======  =======              
/T/ 
/T/ 
PLUMAS BANCORP                                
SELECTED FINANCIAL INFORMATION                        
(Dollars in thousands, except per share data)                 
(Unaudited)                                  
June 30,       
------------------  
2014      2013    
--------  -------- 
QUARTERLY AVERAGE BALANCES                                                  
Assets                                                   $519,258  $483,622 
Earning assets                                           $469,882  $432,663 
Loans                                                    $351,904  $320,249 
Deposits                                                 $454,640  $418,156 
Common equity                                            $ 33,124  $ 30,294 
Total equity                                             $ 33,124  $ 37,255  
CREDIT QUALITY DATA                                                         
Allowance for loan losses                                $  5,358  $  5,263 
Allowance for loan losses as a percentage of total loans     1.50%     1.63%
Nonperforming loans                                      $  6,890  $  7,603 
Nonperforming assets                                     $ 10,804  $ 14,317 
Nonperforming loans as a percentage of total loans           1.93%     2.36%
Nonperforming assets as a percentage of total assets         2.07%     2.90%
Year-to-date net charge-offs                             $    610  $  1,523 
Year-to-date net charge-offs as a percentage of average      0.36%     0.97%
loans, annualized                                                            
SHARE AND PER SHARE DATA                                                    
Basic earnings per share for the quarter                 $   0.23  $   0.27 
Diluted earnings per share for the quarter               $   0.23  $   0.27 
Quarterly weighted average shares outstanding               4,792     4,779 
Quarterly weighted average diluted shares outstanding       4,958     4,862 
Basic earnings per share, year-to-date                   $   0.43  $   0.37 
Diluted earnings per share, year-to-date                 $   0.42  $   0.36 
Year-to-date weighted average shares outstanding            4,790     4,778 
Year-to-date weighted average diluted shares outstanding    4,944     4,842 
Book value per common share                              $   7.01  $   6.06 
Total shares outstanding                                    4,795     4,782  
QUARTERLY KEY FINANCIAL RATIOS                                              
Annualized return on average common equity                   13.6%     17.4%
Annualized return on average assets                          0.87%     0.74%
Net interest margin                                          4.04%     4.14%
Efficiency ratio                                             67.3%     69.8% 
YEAR-TO-DATE KEY FINANCIAL RATIOS                                           
Annualized return on average common equity                   12.8%     11.6%
Annualized return on average assets                          0.80%     0.63%
Net interest margin                                          4.02%     4.15%
Efficiency ratio                                             70.0%     71.2%
Loan to Deposit Ratio                                        78.0%     74.5%
Total Risk-Based Capital Ratio                               14.0%     14.3% 
/T/ 
-30-
FOR FURTHER INFORMATION PLEASE CONTACT: 
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 
INDUSTRY:  Financial Services - Commercial and Investment Banking, Financial
Services - Retail Banking 
SUBJECT:  ERN 
-0-
-0- Jul/23/2014 13:00 GMT
 
 
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