Plumas Bancorp (Nasdaq:PLBC), the parent company of Plumas Bank,
today announced first quarter 2016 earnings of $1.6 million or
$0.32 per share an increase of $358 thousand from $1.2 million or
$0.25 per share during the first quarter of 2015. This $1.6 million
represents the highest level of earnings, for any first quarter, in
the history of Plumas Bancorp. Diluted earnings per share
increased from $0.24 per share during the three months ended March
31, 2015 to $0.31 per share during the current three month period.
“On behalf of the Board of Directors, I am very
pleased to report that the company delivered record earnings
performance in the first quarter of 2016. These first quarter
results represent our eighth consecutive quarter of $1 million or
more in net income. This achievement was driven by continued loan
and deposit growth, improved efficiency, and strong asset quality
trends,” said Andrew J. Ryback, director, president and chief
executive officer of Plumas Bancorp and Plumas Bank. “Our
fundamentals are strong and we are confident in our ability to
deliver further value to our clients and shareholders as we
continue to purposefully and proactively work towards achieving our
strategic objectives.”
Ryback continued, “We are also extremely proud
to report that Plumas Bank recently received The Findley Reports on
Financial Institutions highest rating of “Super Premier Performing
Bank” for our operating results for the period ended December 31,
2015.” The recognition by Findley was based upon multiple factors,
including profitability, return on beginning equity and loan
performance. Ryback concluded, “We are honored to have received
this prestigious ranking; it’s a testament to the strategic vision
and commitment of our board of directors and management team, and
the hard work of our employees as we continue to maintain our
strong financial performance and strive to be the best banking
institution possible to the communities we serve.”
Financial Highlights
March 31, 2016 compared to March 31,
2015
- Total assets increased by $41.5 million, or 7.5% to $595
million.
- Net loans increased by $25.7 million, or 6.8% to $405 million
at March 31, 2016 compared to $379 million at March 31, 2015.
- Total deposits increased by $41.5 million to $525 million at
March 31, 2016.
- Nonperforming assets decreased by $3.3 million from $9.7
million at March 31, 2015 to $6.4 million at March 31, 2016.
- The ratio of nonperforming loans to total loans decreased from
1.57% to 1.12% and the ratio of nonperforming assets to total
assets decreased from 1.75% to 1.07%.
- Total equity increased by $6.9 million, or 18% to $45.0
million.
Three months ended March 31, 2016
compared to March 31, 2015
- Net income increased to a record $1.6 million; a 29% increase
from the $1.2 million earned during the first quarter of 2015.
- Basic earnings per common share increased by 28% from $0.25
during the first quarter of 2015 to $0.32 during the current
quarter.
- Annualized earnings on average equity increased from 13.0% in
2015 to 14.3% during the three months ended March 31, 2016.
- Annualized return on average assets increased from 0.90% to
1.06%.
- Net interest income increased $761 thousand, or 15.3% to $5.7
million.
- Net interest margin increased from 4.06% to 4.20%.
- Non-interest expense decreased by $72 thousand or 2% to $4.6
million.
Loans, Deposits, Investments and
Cash
Net loans increased by $25.7 million, or 6.8%,
from $379.2 million at March 31, 2015 to $404.9 million at March
31, 2016. The three largest areas of growth in the Company’s loan
portfolio were $27.1 million in commercial real estate loans, $5.2
million in commercial loans and $4.1 million in agricultural loans.
The two largest decreases were $9.2 million in construction and
land development loans and $4.1 million in residential real estate
loans. The construction and land development portfolio component
has been identified by Management as a higher-risk loan
category. Construction and land development loans represented
3.9% and 6.5% of the loan portfolio as of March 31, 2016 and March
31, 2015, respectively.
Total deposits increased by $41.5 million from
$484 million at March 31, 2015 to $525 million at March 31,
2016. This $41.5 million increase includes increases of $17.6
million in non-interest bearing demand deposits, $5.3 million in
interest bearing transaction accounts and $22.3 million in money
market and savings accounts. Time deposits declined by $3.7 million
to $51.4 million or less than 10% of total deposits. The Company
has no brokered deposits.
Total investment securities were $99.6 million
at March 31, 2016 and $90.1 million at March 31, 2015. Cash and due
from banks increased by $7.2 million from $48.6 million at March
31, 2015 to $55.8 million at March 31, 2016.
Asset Quality
Nonperforming assets (which are comprised of
nonperforming loans, other real estate owned (“OREO”) and
repossessed vehicle holdings) at March 31, 2016 were $6.4 million,
down from $9.7 million at March 31, 2015. Nonperforming
assets as a percentage of total assets decreased to 1.07% at March
31, 2016 down from 1.75% at March 31, 2015. OREO declined by $1.9
million or 52% from $3.7 million at March 31, 2015 to $1.8 million
at March 31, 2016. Nonperforming loans at March 31, 2016 were
$4.6 million, down $1.4 million, or 23% from $6.0 million at March
31, 2015. Nonperforming loans as a percentage of total loans
decreased to 1.12% at March 31, 2016, down from 1.57% at March 31,
2015.
During the three months ended March 31, 2016 we
recorded a provision for loan losses of $200 thousand, down $100
thousand from the $300 thousand during the first quarter of 2015.
Net charge-offs totaled $80 thousand and $29 thousand during the
three months ended March 31, 2016 and 2015, respectively. The
allowance for loan losses totaled $6.2 million at March 31, 2016
and $5.7 million at March 31, 2015. The allowance for loan losses
as a percentage of total loans increased slightly from 1.49% at
March 31, 2015 to 1.51% at March 31, 2016.
Shareholders’ Equity
Total shareholders’ equity increased by $6.9
million from $38.1 million at March 31, 2015 to $45.0 million at
March 31, 2016. The $6.9 million includes earnings during the
twelve month period totaling $6.2 million and an increase in net
unrealized gains on investment securities of $0.5 million with the
balance of $0.2 million representing stock option activity.
Net Interest Income and Net Interest Margin
Net interest income, on a nontax-equivalent
basis, was $5.7 million for the three months ended March 31, 2016,
an increase of $761 thousand, or 15.3%, from $5.0 million for the
same period in 2015. The increase in net interest income
includes an increase of $624 thousand in interest income the
largest component of which was an increase in interest and fees on
loans of $512 thousand. This increase in interest and fees on loans
was related to an increase in average loan balances of $31.1
million and an increase in yield on loans of 5 basis points from
5.40% during the 2015 quarter to 5.45% during the current quarter.
Interest expense declined by $137 thousand of which $188 thousand
was related to the payoff of the Bancorp’s $7.5 million
subordinated debenture in April, 2015. Net interest margin for the
three months ended March 31, 2016 increased 14 basis points to
4.20%, up from 4.06% for the same period in 2015.
Non-Interest Income/Expense
During the three months ended March 31, 2016
non-interest income totaled $1.7 million a decrease of $392
thousand from the three months ended March 31, 2015. This decrease
was related to a $324 thousand reduction in gains on sale of SBA
loans and a $32 thousand loss on sale of available for sale
investment securities. Gain on the sale of government
guaranteed SBA loans declined from a very strong $657 thousand
during the three months ended March 31, 2015 to $333 thousand
during the current quarter. Proceeds from SBA loan sales totaled
$6.3 million during the current quarter and $9.5 million during the
2015 quarter. Loans originated for sale totaled $8.7 million
during the three months ended March 31, 2016 and $9.1 million
during the three months ended March 31, 2015. During the
three months ended March 31, 2016 we sold fourteen investment
securities recording a net loss of $32 thousand. The compares
to a gain on sale of $30 thousand from the sale of eight securities
during the three months ended March 31, 2015.
During the three months ended March 31, 2016,
total non-interest expense declined by $72 thousand, or 2%, to $4.6
million, down from $4.7 million for the comparable period in 2015.
The two largest declines were $110 thousand in salary and benefit
expense and $83 thousand in loan collection expenses. These
were partially offset by an increase in the provision from change
in OREO valuation of $138 thousand from a credit of $129 thousand
during the first quarter of 2015 to $9 thousand during the current
quarter. The decrease in salary and benefit expense includes
a $70 thousand reduction in commission expense related to the
reduction in SBA gains and a $57 thousand increase in deferral of
loan origination costs. Salary expense was up by $18 thousand
to $2.0 million. Reductions in salary expense include the
retirement of the EVP and Operations Manager of Plumas Bank as well
as open positions including a commercial lending officer position
in our Redding, California location. The Company has chosen not to
replace the EVP and Operations Manager of Plumas Bank. These were
offset by merit and promotional increases and increases in
personnel related to our new Reno, Nevada Branch. The largest
increase in non-interest expense was a $138 thousand increase in
the provision for OREO losses. During the three months ended
March 31, 2015 the Company recorded a credit of $129 thousand for
the provision from change in OREO valuation. The credit resulted
from a significant increase in value of one OREO property based on
a current appraisal.
Founded in 1980, Plumas Bank is a locally owned
and managed full-service community bank based in Northeastern
California. The Bank operates twelve branches: eleven located in
the California counties of Plumas, Lassen, Placer, Nevada, Modoc
and Shasta and one branch in Reno, Nevada, Washoe County. 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 March 31, |
|
|
|
|
|
|
2016 |
|
|
2015 |
|
|
Dollar Change |
|
Percentage Change |
| ASSETS |
|
|
|
|
|
|
|
|
|
|
| Cash and due from
banks |
$ |
55,795 |
|
$ |
48,633 |
|
|
$ |
7,162 |
|
|
|
14.7 |
% |
| Investment securities |
|
99,633 |
|
|
90,072 |
|
|
|
9,561 |
|
|
|
10.6 |
% |
| Loans, net of allowance
for loan losses |
|
404,913 |
|
|
379,231 |
|
|
|
25,682 |
|
|
|
6.8 |
% |
| Premises and equipment,
net |
|
12,249 |
|
|
11,470 |
|
|
|
779 |
|
|
|
6.8 |
% |
| Bank owned life
insurance |
|
12,273 |
|
|
11,931 |
|
|
|
342 |
|
|
|
2.9 |
% |
| Real estate acquired
through foreclosure |
|
1,760 |
|
|
3,654 |
|
|
|
(1,894 |
) |
|
|
-51.8 |
% |
| Accrued interest
receivable and other assets |
|
8,699 |
|
|
8,859 |
|
|
|
(160 |
) |
|
|
-1.8 |
% |
| Total
assets |
$ |
595,322 |
|
$ |
553,850 |
|
|
$ |
41,472 |
|
|
|
7.5 |
% |
|
|
|
|
|
|
|
|
|
|
| LIABILITIES
AND |
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
| Deposits |
$ |
525,206 |
|
$ |
483,664 |
|
|
$ |
41,542 |
|
|
|
8.6 |
% |
| Accrued interest payable
and other liabilities |
|
10,075 |
|
|
13,272 |
|
|
|
(3,197 |
) |
|
|
-24.1 |
% |
| Note payable |
|
4,750 |
|
|
1,000 |
|
|
|
3,750 |
|
|
|
375.0 |
% |
| Subordinated
debentures |
|
- |
|
|
7,493 |
|
|
|
(7,493 |
) |
|
|
-100.0 |
% |
| Junior subordinated
deferrable interest debentures |
|
10,310 |
|
|
10,310 |
|
|
|
- |
|
|
|
0.0 |
% |
| Total
liabilities |
|
550,341 |
|
|
515,739 |
|
|
|
34,602 |
|
|
|
6.7 |
% |
| Common stock |
|
6,551 |
|
|
6,345 |
|
|
|
206 |
|
|
|
3.2 |
% |
| Retained earnings |
|
37,636 |
|
|
31,460 |
|
|
|
6,176 |
|
|
|
19.6 |
% |
| Accumulated other
comprehensive income, net |
|
794 |
|
|
306 |
|
|
|
488 |
|
|
|
159.5 |
% |
| Shareholders’ equity |
|
44,981 |
|
|
38,111 |
|
|
|
6,870 |
|
|
|
18.0 |
% |
| Total liabilities and shareholders’
equity |
$ |
595,322 |
|
$ |
553,850 |
|
|
$ |
41,472 |
|
|
|
7.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| PLUMAS BANCORP |
| CONDENSED CONSOLIDATED STATEMENTS OF
INCOME |
| (In thousands, except per share data) |
| (Unaudited) |
|
|
|
|
|
|
| FOR THE THREE MONTHS ENDED
MARCH 31, |
|
2016 |
|
|
2015 |
|
|
Dollar Change |
|
Percentage Change |
| |
|
|
|
|
|
|
|
|
| Interest income |
$ |
6,000 |
|
$ |
5,376 |
|
|
$ |
624 |
|
|
|
11.6 |
% |
| Interest expense |
|
262 |
|
|
399 |
|
|
|
(137 |
) |
|
|
-34.3 |
% |
| Net interest
income before provision for loan losses |
|
5,738 |
|
|
4,977 |
|
|
|
761 |
|
|
|
15.3 |
% |
| Provision for loan
losses |
|
200 |
|
|
300 |
|
|
|
(100 |
) |
|
|
-33.3 |
% |
| Net interest
income after provision for loan losses |
|
5,538 |
|
|
4,677 |
|
|
|
861 |
|
|
|
18.4 |
% |
| Non-interest income |
|
1,653 |
|
|
2,045 |
|
|
|
(392 |
) |
|
|
-19.2 |
% |
| Non-interest expenses |
|
4,634 |
|
|
4,706 |
|
|
|
(72 |
) |
|
|
-1.5 |
% |
| Income
before income taxes |
|
2,557 |
|
|
2,016 |
|
|
|
541 |
|
|
|
26.8 |
% |
| Provision for income
taxes |
|
984 |
|
|
801 |
|
|
|
183 |
|
|
|
22.8 |
% |
| Net
income |
$ |
1,573 |
|
$ |
1,215 |
|
|
$ |
358 |
|
|
|
29.5 |
% |
| |
|
|
|
|
|
|
| Basic earnings per
share |
$ |
0.32 |
|
$ |
0.25 |
|
|
$ |
0.07 |
|
|
|
28.0 |
% |
| Diluted earnings per
share |
$ |
0.31 |
|
$ |
0.24 |
|
|
$ |
0.07 |
|
|
|
29.2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| PLUMAS BANCORP |
|
| SELECTED FINANCIAL INFORMATION |
|
| (In thousands, except per share data) |
|
| (Unaudited) |
|
|
|
|
|
| |
March 31, |
|
|
|
| |
2016 |
|
2015 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| AVERAGE BALANCES
FOR THE QUARTER ENDED |
|
|
|
|
|
| Assets |
$ |
597,483 |
|
$ |
547,018 |
|
|
|
|
| Earning assets |
$ |
549,006 |
|
$ |
497,331 |
|
|
|
|
|
| Loans |
$ |
402,400 |
|
$ |
371,275 |
|
|
|
|
| Deposits |
$ |
525,432 |
|
$ |
475,224 |
|
|
|
|
|
| Total equity |
$ |
44,177 |
|
$ |
37,770 |
|
|
|
|
|
|
|
|
| CREDIT QUALITY
DATA |
|
|
|
|
|
| Allowance for loan
losses |
$ |
6,198 |
|
$ |
5,722 |
|
|
|
|
|
| Allowance for loan losses
as a percentage of total loans |
|
1.51 |
% |
|
1.49 |
% |
|
|
|
|
| Nonperforming loans |
$ |
4,602 |
|
$ |
5,997 |
|
|
|
|
|
| Nonperforming assets |
$ |
6,377 |
|
$ |
9,680 |
|
|
|
|
|
| Nonperforming loans as a
percentage of total loans |
|
1.12 |
% |
|
1.57 |
% |
|
|
|
|
| Nonperforming assets as a
percentage of total assets |
|
1.07 |
% |
|
1.75 |
% |
|
|
|
|
| Year-to-date net
charge-offs |
$ |
80 |
|
$ |
29 |
|
|
|
|
|
| Year-to-date net
charge-offs as a percentage of average loans |
|
0.08 |
% |
|
0.03 |
% |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| SHARE AND PER
SHARE DATA |
|
|
|
|
|
|
|
|
|
|
| Basic earnings per
share for the quarter |
$ |
0.32 |
|
$ |
0.25 |
|
|
|
|
|
| Diluted earnings per share
for the quarter |
$ |
0.31 |
|
$ |
0.24 |
|
|
|
|
|
| Quarterly weighted average
shares outstanding |
|
4,842 |
|
|
4,799 |
|
|
|
|
|
| Quarterly weighted average
diluted shares outstanding |
|
5,058 |
|
|
5,047 |
|
|
|
|
|
| Book value per common
share |
$ |
9.27 |
|
$ |
7.93 |
|
|
|
|
|
| Total shares
outstanding |
|
4,853 |
|
|
4,803 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| KEY FINANCIAL
RATIOS |
|
|
|
|
|
|
|
|
|
|
|
| Annualized return on
average equity |
|
14.3 |
% |
|
13.0 |
% |
|
|
|
|
| Annualized return on
average assets |
|
1.06 |
% |
|
0.90 |
% |
|
|
|
|
| Net interest margin |
|
4.20 |
% |
|
4.06 |
% |
|
|
|
|
| Efficiency ratio |
|
62.7 |
% |
|
67.0 |
% |
|
|
|
|
| Loan to Deposit Ratio |
|
77.9 |
% |
|
79.2 |
% |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| PLUMAS BANK
CAPITAL RATIOS |
|
|
|
|
|
|
|
|
|
|
| Tier 1 Leverage
Ratio |
|
9.7 |
% |
|
10.1 |
% |
|
|
|
| Common Equity Tier 1
Ratio |
|
13.0 |
% |
|
13.0 |
% |
|
|
|
| Tier 1 Risk-Based
Capital Ratio |
|
13.0 |
% |
|
13.0 |
% |
|
|
|
| Total Risk-Based
Capital Ratio |
|
14.2 |
% |
|
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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