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 
QUINCY, CA  -- (Marketwired) -- 07/23/14 --  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 


 
--  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.

 
Three months ended June 30, 2014 compared to June 30, 2013 


 
--  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.

 
Six months ended June 30, 2014 compared to June 30, 2013 


 
--  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.

 
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. 


 
                                                                            
                               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%
                                     ======== ======== ========             
                                                                            
                                                                            
 

 
                                                                            
                               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%
                                       ======= =======  =======             
                                                                            
                                                                            
 

 
                                                                            
                               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%

  
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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