Plumas Bancorp (Nasdaq: PLBC), the parent company of Plumas Bank,
today announced first quarter 2020 earnings of $3.3 million or
$0.64 per share, a decrease of $502 thousand from $3.8 million or
$0.74 per share during the first quarter of 2019. Diluted
earnings per share decreased to $0.63 during the three months ended
March 31, 2020 from $0.73 per share during the quarter ended March
31, 2019. Return on average assets was 1.53% during the current
quarter, down from 1.87% during the first quarter of 2019.
Return on average equity decreased to 15.2% for the three months
ended March 31, 2020, down from 22.2% during the first quarter of
2019.
Financial
HighlightsMarch 31, 2020 compared to March 31,
2019
- Total assets increased by $48
million, or 6%, to $880 million.
- Gross loans increased by $50
million, or 9%, to $624 million.
- Total deposits increased by $32
million, or 4%, to $763 million.
- Total equity increased by $17.5
million, or 24% to $90.2 million.
- Book value per share increased by
$3.31, or 23%, to $17.43, up from $14.12.
President’s Comments
Andrew J. Ryback, director, president and chief
executive officer of Plumas Bancorp and Plumas Bank stated, “The
health and well-being of our clients, colleagues, and communities
are paramount as we continue to monitor the rapidly changing
circumstances related to the COVID-19 pandemic. Our branches,
loan offices and client resource center are open and operational to
meet client needs. Our branch managers and loan officers are
reaching out to clients to understand their concerns, offering
flexibility where possible and facilitating access to disaster
relief resources. Commenting on first quarter earnings,
Ryback continued, “Despite the unique challenges present in the
first quarter, we generated over $3 million in earnings,
representing a 1.53% return on assets and a 15.2% return on
equity. Asset quality remains strong, our capital position
has never been stronger, and our loan balances increased to a
record level of $624 million.
In the weeks and months ahead, we will continue
to adapt our business to meet our clients’ changing needs. We
are now offering a variety of relief options designed to support
our clients and communities, including the SBA Paycheck Protection
Program, up to 180-day loan payment deferments, waived loan late
fees, and suspended foreclosure proceedings. We will waive
deposit account fees for all hospital employees, paramedics and
other first responders. We are also developing a new loan
product to provide working capital to businesses for when they
eventually restart their operations.″
Ryback concluded, “We recognize that the
economic expansion of the last decade has come to a temporary end
and we expect to see our financial performance reflect that
fact. We are confident that Plumas Bank, with our experienced
management team, diversified loan portfolio and strong capital
position, is prepared to navigate the uncertainty of our new
reality. As we stand together with our clients, colleagues
and communities and do our part to support the financial needs and
the health and well-being of the communities we serve, we remain
steadfast and true to our guiding ideal - Plumas Bank is HERE. For
Good.″
Loans, Deposits, Investments and
Cash
Gross loans increased by $50 million, or 9%, to
$624 million at March 31, 2020. The four largest areas of growth in
the Company’s loan portfolio were $50 million in commercial real
estate loans, $10 million in automobile loans, $7 million in
commercial loans and $6 million in agricultural loans. The
largest decreases were $18 million in construction and land
development loans, $3 million in residential real estate loans and
$2 million in equity lines of credit.
Total deposits increased by $32 million from
$731 million at March 31, 2019 to $763 million at March 31, 2020.
The increase in deposits includes increases of $24.3 million
in demand deposits, $10.7 million in money market accounts, $10.8
million in savings accounts and $3.1 million in interest-bearing
demand deposits. These increases in deposits were partially offset
by a decrease in time deposits of $16.9 million. The decrease in
time deposits relates to our Carson City branch which we acquired
in October 2018. We experienced a decrease in deposits at
this branch mostly related to the maturity of time deposits which
were yielding significantly higher rates than our offering rates.
In total, time deposits at the Carson City Branch declined by $13.4
million from $15.8 million at March 31, 2019 to $2.4 million at
March 31, 2020. Excluding the effect of the decline in time
deposits in Carson City, total deposits would have increased by $45
million or 6%.
At March 31, 2020, 44% of the Company’s deposits
were in the form of non-interest-bearing demand deposits. The
Company has no brokered deposits.
Total investment securities decreased by $14
million from $173.2 million at March 31, 2019 to $159.2 million at
March 31, 2020. Cash and due from banks increased by $13.3 million
from $44.8 million at March 31, 2019 to $58.1 million at March 31,
2020.
Asset Quality
Nonperforming assets (which are comprised of
nonperforming loans, other real estate owned (“OREO”) and
repossessed vehicle holdings) at March 31, 2020 were $3.1 million,
up from $2.7 million at March 31, 2019. Nonperforming assets
as a percentage of total assets increased slightly to 0.35% at
March 31, 2020 up from 0.33% at March 31, 2019. OREO decreased by
$463 thousand from $1.2 million at March 31, 2019 to $707 thousand
at March 31, 2020. Nonperforming loans were $2.3 million at
March 31, 2020 and $1.5 million at March 31, 2019.
Nonperforming loans as a percentage of total loans increased to
0.37% at March 31, 2020, up from 0.25% at March 31, 2019.
The provision for loan losses increased from
$400 thousand during the first quarter of 2019 to $750 thousand
during the current quarter. We have added a new specific pandemic
qualitative factor to our allowance for loan loss calculation and
have increased the qualitative factor related to economic
conditions, these changes resulted in the need for an additional
loan loss provision during the current quarter. Net
charge-offs totaled $189 thousand and $291 thousand during the
three months ended March 31, 2020 and 2019, respectively. The
allowance for loan losses totaled $7.8 million at March 31, 2020
and $7.1 million at March 31, 2019. The allowance for loan losses
as a percentage of total loans increased from 1.23% at March 31,
2019 to 1.25% at March 31, 2020.
Shareholders’ Equity
Total shareholders’ equity increased by $17.5
million from $72.7 million at March 31, 2019 to $90.2 million at
March 31, 2020. The $17.5 million includes earnings during the
twelve-month period totaling $15.0 million, a $4.5 million increase
in the net unrealized gain on investment securities and stock
option activity totaling $0.4 million. These items were partially
offset by cash dividends totaling $2.4 million consisting of two
dividends of $0.23 per share; one paid in May of 2019 and the other
paid in November 2019.
Net Interest Income and Net Interest Margin
Net interest income was $9.2 million for the
three months ended March 31, 2020, a decrease of $165 thousand, or
2%, from $9.4 million for the same period in 2019. Interest
income decreased by $227 thousand, the largest component of which
was a decrease in interest on investment securities of $185
thousand. We attribute the decrease in interest income to a decline
in market interest rates during the period. The average prime
rate for the 3 months ending March 31, 2019 was 5.50% while for the
current quarter the average prime rate declined to 4.42%.
Interest and fees on loans increased by $30
thousand as an increase in average loan balances of $52 million was
offset by a decline in yield on loans of 54 basis points from 6.09%
during the 2019 quarter to 5.55% during the current quarter.
Included in interest and fees on loans during the quarter ended
March 31, 2019 was $433 thousand in prepayment fees related to the
payoff of loans from one client. This client prepaid a total
of $11.6 million in loans; some which had significant prepayment
penalties associated with them. Excluding the effect of the $433
thousand in prepayments fees, yield on loans would have been 5.78%
for the three months ended March 31, 2019. Net interest
margin for the three months ended March 31, 2020 decreased 38 basis
points to 4.57%, down from 4.95% for the same period in 2019.
Non-Interest Income/Expense
During the three months ended March 31, 2020,
non-interest income totaled $2.2 million, an increase of $260
thousand from the three months ended March 31, 2019. The largest
component of this increase was an increase in gains on sale of SBA
loans of $220 thousand from $244 thousand during the three months
ended March 31, 2019 to $464 thousand during the current quarter.
Proceeds from SBA loan sales totaled $10.5 million during the
current quarter and $6.0 million during the 2019 quarter.
Loans originated for sale totaled $7.5 million during the three
months ended March 31, 2020 and $3.7 million during the three
months ended March 31, 2019. We attribute some of the decline
in originations and sales during the 2019 quarter to the government
shutdown beginning on December 22, 2018 and continuing until
January 25, 2019. During the shutdown we were unable to
provide SBA guaranteed loans.
During the three months ended March 31, 2020,
total non-interest expense increased by $452 thousand, or 8%, to
$6.1 million, up from $5.7 million for the comparable period in
2019. The largest component of this increase was an increase of
$329 in salary and benefit expense. Salary expense increased by
$264 thousand largely related to an increase in staffing levels and
merit and promotional increases during the second quarter of
2019. In addition, deferred loan origination costs
declined by $102 thousand, commission expense related to SBA loan
sales and originations increased by $122 thousand, payroll taxes
increased by $57 thousand and we increased our accrued vacation
liability by $30 thousand related to increased staffing
levels. These increases were partially offset by a decline in
accrued bonus expense of $275 thousand from $383 thousand in the
first quarter of 2019 to $108 thousand in the current
quarter.
Founded in 1980, Plumas Bank is a locally owned
and managed full-service community bank headquartered in
Northeastern California. The Bank operates thirteen branches:
eleven located in the California counties of Plumas, Lassen,
Placer, Nevada, Modoc and Shasta and two branches located in the
northern Nevada counties of Washoe and Carson City. The Bank also
operates three loan production offices: two located in the
California counties of Placer and Butte and one located in the
Oregon county of Klamath. 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.
Contact: Elizabeth KuipersVice President,
Marketing Manager & Investor Relations OfficerPlumas Bank35 S.
Lindan AvenueQuincy, CA 95971530.283.7305
ext.8912investorrelations@plumasbank.com
PLUMAS BANCORP |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(In thousands) |
(Unaudited) |
|
As of March 31, |
|
|
|
2020 |
|
2019 |
|
Dollar Change |
|
Percentage Change |
ASSETS |
|
|
|
|
|
|
|
Cash and due from banks |
$ |
58,058 |
|
$ |
44,753 |
|
|
$ |
13,305 |
|
|
29.7 |
% |
Investment securities |
|
159,247 |
|
|
173,227 |
|
|
|
(13,980 |
) |
|
-8.1 |
% |
Loans, net of allowance for loan
losses |
|
619,487 |
|
|
569,778 |
|
|
|
49,709 |
|
|
8.7 |
% |
Premises and equipment, net |
|
14,774 |
|
|
14,224 |
|
|
|
550 |
|
|
3.9 |
% |
Bank owned life insurance |
|
13,275 |
|
|
12,938 |
|
|
|
337 |
|
|
2.6 |
% |
Real estate acquired through
foreclosure |
|
707 |
|
|
1,170 |
|
|
|
(463 |
) |
|
-39.6 |
% |
Accrued interest receivable and
other assets |
|
14,023 |
|
|
15,287 |
|
|
|
(1,264 |
) |
|
-8.3 |
% |
Total assets |
$ |
879,571 |
|
$ |
831,377 |
|
|
$ |
48,194 |
|
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
$ |
762,886 |
|
$ |
730,923 |
|
|
$ |
31,963 |
|
|
4.4 |
% |
Accrued interest payable and
other liabilities |
|
16,148 |
|
|
17,437 |
|
|
|
(1,289 |
) |
|
-7.4 |
% |
Junior subordinated deferrable
interest debentures |
|
10,310 |
|
|
10,310 |
|
|
|
- |
|
|
0.0 |
% |
Total liabilities |
|
789,344 |
|
|
758,670 |
|
|
|
30,674 |
|
|
4.0 |
% |
Common stock |
|
7,425 |
|
|
7,070 |
|
|
|
355 |
|
|
5.0 |
% |
Retained earnings |
|
78,460 |
|
|
65,823 |
|
|
|
12,637 |
|
|
19.2 |
% |
Accumulated other comprehensive
income (loss), net |
|
4,342 |
|
|
(186 |
) |
|
|
4,528 |
|
|
2434.4 |
% |
Shareholders’ equity |
|
90,227 |
|
|
72,707 |
|
|
|
17,520 |
|
|
24.1 |
% |
Total liabilities and shareholders’ equity |
$ |
879,571 |
|
$ |
831,377 |
|
|
$ |
48,194 |
|
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PLUMAS BANCORP |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
(In thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
FOR THE THREE MONTHS ENDED MARCH 31, |
2020 |
|
2019 |
|
Dollar Change |
|
Percentage Change |
|
|
|
|
|
|
|
|
Interest income |
$ |
9,599 |
|
$ |
9,826 |
|
$ |
(227 |
) |
|
-2.3 |
% |
Interest expense |
|
378 |
|
|
440 |
|
|
(62 |
) |
|
-14.1 |
% |
Net interest income before provision for loan losses |
|
9,221 |
|
|
9,386 |
|
|
(165 |
) |
|
-1.8 |
% |
Provision for loan losses |
|
750 |
|
|
400 |
|
|
350 |
|
|
87.5 |
% |
Net interest income after provision for loan losses |
|
8,471 |
|
|
8,986 |
|
|
(515 |
) |
|
-5.7 |
% |
Non-interest income |
|
2,225 |
|
|
1,965 |
|
|
260 |
|
|
13.2 |
% |
Non-interest expense |
|
6,136 |
|
|
5,684 |
|
|
452 |
|
|
8.0 |
% |
Income before income taxes |
|
4,560 |
|
|
5,267 |
|
|
(707 |
) |
|
-13.4 |
% |
Provision for income taxes |
|
1,244 |
|
|
1,449 |
|
|
(205 |
) |
|
-14.1 |
% |
Net income |
$ |
3,316 |
|
$ |
3,818 |
|
$ |
(502 |
) |
|
-13.1 |
% |
|
|
|
|
|
|
|
|
Basic earnings per
share |
$ |
0.64 |
|
$ |
0.74 |
|
$ |
(0.10 |
) |
|
-13.5 |
% |
Diluted earnings per
share |
$ |
0.63 |
|
$ |
0.73 |
|
$ |
(0.10 |
) |
|
-13.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
PLUMAS
BANCORP |
SELECTED
FINANCIAL INFORMATION |
(Dollars in
thousands, except per share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
3/31/2020 |
|
12/31/2019 |
|
3/31/2019 |
|
12/31/2019 |
|
12/31/2018 |
EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
|
Basic earnings per share |
$ |
0.64 |
|
|
$ |
0.75 |
|
|
$ |
0.74 |
|
|
$ |
3.01 |
|
|
$ |
2.74 |
|
Diluted
earnings per share |
$ |
0.63 |
|
|
$ |
0.74 |
|
|
$ |
0.73 |
|
|
$ |
2.97 |
|
|
$ |
2.68 |
|
Weighted
average shares outstanding |
|
5,171 |
|
|
|
5,163 |
|
|
|
5,144 |
|
|
|
5,155 |
|
|
|
5,108 |
|
Weighted
average diluted shares outstanding |
|
5,231 |
|
|
|
5,231 |
|
|
|
5,225 |
|
|
|
5,228 |
|
|
|
5,219 |
|
Cash
dividends paid per share 1 |
$ |
- |
|
|
$ |
0.23 |
|
|
$ |
- |
|
|
$ |
0.46 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS (annualized for the three
months) |
|
|
|
|
|
|
Return on
average assets |
|
1.53 |
% |
|
|
1.76 |
% |
|
|
1.87 |
% |
|
|
1.82 |
% |
|
|
1.83 |
% |
Return on
average equity |
|
15.2 |
% |
|
|
18.5 |
% |
|
|
22.2 |
% |
|
|
20.2 |
% |
|
|
23.3 |
% |
Yield on
earning assets |
|
4.75 |
% |
|
|
4.79 |
% |
|
|
5.19 |
% |
|
|
4.97 |
% |
|
|
4.87 |
% |
Rate paid on
interest-bearing liabilities |
|
0.34 |
% |
|
|
0.36 |
% |
|
|
0.40 |
% |
|
|
0.39 |
% |
|
|
0.30 |
% |
Net interest
margin |
|
4.57 |
% |
|
|
4.60 |
% |
|
|
4.95 |
% |
|
|
4.75 |
% |
|
|
4.70 |
% |
Noninterest
income to average assets |
|
1.02 |
% |
|
|
0.91 |
% |
|
|
0.96 |
% |
|
|
0.95 |
% |
|
|
1.16 |
% |
Noninterest
expense to average assets |
|
2.83 |
% |
|
|
2.49 |
% |
|
|
2.78 |
% |
|
|
2.68 |
% |
|
|
2.86 |
% |
Efficiency
ratio 2 |
|
53.6 |
% |
|
|
48.1 |
% |
|
|
50.1 |
% |
|
|
49.9 |
% |
|
|
52.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
3/31/2020 |
|
3/31/2019 |
|
12/31/2019 |
|
12/31/2018 |
|
12/31/2017 |
CREDIT QUALITY RATIOS AND DATA |
|
|
|
|
|
|
|
|
|
Allowance
for loan losses |
$ |
7,804 |
|
|
$ |
7,067 |
|
|
$ |
7,243 |
|
|
$ |
6,958 |
|
|
$ |
6,669 |
|
Allowance
for loan losses as a percentage of total loans |
|
1.25 |
% |
|
|
1.23 |
% |
|
|
1.17 |
% |
|
|
1.23 |
% |
|
|
1.37 |
% |
Nonperforming loans |
$ |
2,310 |
|
|
$ |
1,457 |
|
|
$ |
2,050 |
|
|
$ |
1,117 |
|
|
$ |
3,022 |
|
Nonperforming assets |
$ |
3,079 |
|
|
$ |
2,710 |
|
|
$ |
2,813 |
|
|
$ |
2,340 |
|
|
$ |
4,401 |
|
Nonperforming loans as a percentage of total loans |
|
0.37 |
% |
|
|
0.25 |
% |
|
|
0.33 |
% |
|
|
0.20 |
% |
|
|
0.62 |
% |
Nonperforming assets as a percentage of total assets |
|
0.35 |
% |
|
|
0.33 |
% |
|
|
0.33 |
% |
|
|
0.28 |
% |
|
|
0.59 |
% |
Year-to-date
net charge-offs |
$ |
189 |
|
|
$ |
291 |
|
|
$ |
1,215 |
|
|
$ |
711 |
|
|
$ |
480 |
|
Year-to-date
net charge-offs as a percentage of average loans
(annualized) |
|
0.12 |
% |
|
|
0.21 |
% |
|
|
0.21 |
% |
|
|
0.14 |
% |
|
|
0.10 |
% |
|
|
|
|
|
|
|
|
|
|
CAPITAL AND OTHER DATA |
|
|
|
|
|
|
|
|
|
Common
shares outstanding at end of period |
|
5,176 |
|
|
|
5,151 |
|
|
|
5,166 |
|
|
|
5,137 |
|
|
|
5,065 |
|
Shareholders' equity |
$ |
90,227 |
|
|
$ |
72,707 |
|
|
$ |
84,505 |
|
|
$ |
66,932 |
|
|
$ |
55,700 |
|
Book value
per common share |
$ |
17.43 |
|
|
$ |
14.12 |
|
|
$ |
16.36 |
|
|
$ |
13.03 |
|
|
$ |
11.00 |
|
Tangible
common equity3 |
$ |
89,357 |
|
|
$ |
71,592 |
|
|
$ |
83,584 |
|
|
$ |
65,748 |
|
|
$ |
55,619 |
|
Tangible
book value per common share4 |
$ |
17.26 |
|
|
$ |
13.90 |
|
|
$ |
16.18 |
|
|
$ |
12.80 |
|
|
$ |
10.98 |
|
Tangible
common equity to total assets |
|
10.2 |
% |
|
|
8.6 |
% |
|
|
9.7 |
% |
|
|
8.0 |
% |
|
|
7.5 |
% |
Gross loans
to deposits |
|
81.8 |
% |
|
|
78.5 |
% |
|
|
82.9 |
% |
|
|
77.9 |
% |
|
|
73.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PLUMAS BANK REGULATORY CAPITAL RATIOS |
|
|
|
|
|
|
|
Tier 1
Leverage Ratio |
|
10.8 |
% |
|
|
9.7 |
% |
|
|
10.4 |
% |
|
|
9.3 |
% |
|
|
8.8 |
% |
Common
Equity Tier 1 Ratio |
|
13.6 |
% |
|
|
12.4 |
% |
|
|
13.1 |
% |
|
|
11.8 |
% |
|
|
12.0 |
% |
Tier 1
Risk-Based Capital Ratio |
|
13.6 |
% |
|
|
12.4 |
% |
|
|
13.1 |
% |
|
|
11.8 |
% |
|
|
12.0 |
% |
Total
Risk-Based Capital Ratio |
|
14.8 |
% |
|
|
13.5 |
% |
|
|
14.2 |
% |
|
|
13.0 |
% |
|
|
13.2 |
% |
|
|
|
|
|
|
|
|
|
|
(1) The Company paid a
semi-annual dividend of 23 cents per share on November 15,2019 and
May 15, 2019, 18 cents per share on November 15, 2018 and May 15,
2018 and 14 cents per share on November 15, 2017 and May 15,
2017. |
(2) Efficiency ratio
is defined as noninterest expense divided by total revenue (net
interest income and total noninterest income). |
(3) Tangible common
equity is defined as common equity less core deposit
intangibles. |
(4) Tangible common
book value per share is defined as tangible common equity divided
by common shares outstanding. |
|
|
|
|
|
|
|
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