SOURCE:
Plumas Bancorp
2008-07-16 15:42:00
QUINCY, CA–(EMWNews – July 16, 2008) – Plumas Bancorp, (
company and the parent company of Plumas Bank, today announced earnings of
$697 thousand ($0.14 per diluted share) for the second quarter ended June
30, 2008. This represents a decline of $437 thousand or 39% from the $1.1
million ($0.23 per diluted share) earned during the quarter ended June 30,
2007. For the six months ended June 30, 2008 net income was $1.3 million.
This represents a decline of $809 thousand or 39% from the $2.1 million
earned during the same period in the prior year. Diluted earnings per share
were $0.26 and $0.41 during the six-month periods ended June 30, 2008 and
2007, respectively.
The decline in earnings during the second quarter of 2008 as compared to
the second quarter of 2007 is primarily related to a decline in net
interest income of $294 thousand and an increase of $345 thousand in the
provision for loan losses. The decline in net interest income is related
to both a decline in market interest rates, as a result of the greater
impact that the 325 basis points decline in interest rates by the Federal
Reserve Bank since September 2007 has had on interest earning assets
compared to interest bearing liabilities, and a decline in the level of our
average interest-earning assets. We continue to face a challenging economic
environment and, while manageable, have experienced an increase in the
levels of nonperforming assets and loans and an increase in the level of
net charge-offs. In response, we increased our provision for loan losses.
The allowance for loan losses as a percentage of total loans increased from
1.17% at June 30, 2007 to 1.25% at June 30, 2008.
For the comparable six-month periods the decline in earnings is consistent
with the second quarter activity and primarily relates to a reduction in
net interest income of $793 thousand and an increase in the loan loss
provision of $615 thousand.
Douglas N. Biddle, president and chief executive officer, remarked, “A
highlight for the quarter was our ability to quickly adapt to the declining
interest rate environment. We were able to reprice a significant portion
of our deposit liabilities resulting in a net interest margin of 5.15%
compared to a net interest margin of 4.96% during the first quarter of 2008
and 5.14% during the second quarter of 2007. We were also pleased with our
efforts to generate increasing levels of non-interest income, which
increased by $95 thousand during the second quarter as a result of
increased service charge income and the expansion of our
government-guaranteed lending activities.”
He continued, “Construction on our Redding, California branch is nearing
completion and we expect to open this branch by the end of this month.
Located in Redding’s commercial district, across the street from City Hall,
we believe this branch will establish Plumas Bank as a serious competitor
in this important market place.”
Biddle concluded, “We paid a $0.16 semi-annual cash dividend on May 16,
2008. This represents a 7% increase from the $0.15 semi-annual dividend
paid on May 14, 2007. In addition, we have been active in repurchasing
shares of Plumas Bancorp stock under our Stock Repurchase Plan. This stock
buyback plan reflects our commitment to maximize shareholder value and
reflects our confidence in the future of the Company.”
Shareholders’ Equity Growth
Shareholders’ equity increased $424 thousand to $36.8 million at June 30,
2008 from $36.4 million at June 30, 2007. This increase includes earnings
of the Company and an increase in the unrealized fair value of our
investment securities classified as available-for-sale, offset by cash
dividends paid and the repurchase of the Company’s common stock. Book value
per share increased 4% to $7.63 at June 30, 2008 from $7.33 at June 30,
2007. During the first six months of 2008 the Company repurchased 52,472
shares of common stock at an average cost, including commission, of $12.77
per share for a total cost of $670 thousand.
Loans and Deposits
Average loans for the quarter ending June 30, 2008 declined by $9 million
or 2% to $352 million from an average of $360 million for the second
quarter of 2007. During the same period, average deposits declined by $17
million to $380 million. The Company’s loan to deposit ratio increased to
95.1% at June 30, 2008 from 89.4% a year earlier.
Net Interest Income and Net Interest Margin
Net interest income before provision for loan losses totaled $5.1 million
during the second quarter of 2008, a decrease of $294 thousand or 5% as
compared to the quarter ended June 30, 2007. This decrease resulted from a
decline in interest income of $1.2 million or 16%, mostly offset by a 41%
decrease in interest expense from $2.3 million during the second quarter of
2007 to $1.3 million during the current quarter. The decline in interest
income and expense is primarily related to market interest rate changes
during the comparison periods. During this same period the average prime
interest rate declined by 317 basis points. In addition, we have
experienced a 5% decrease in our average interest-earning assets mitigated
by a 7% decrease in average interest-bearing liabilities.
Net interest margin for the second quarter of 2008 was 5.15%, up slightly
from 5.14% during the same quarter in 2007. The yield on average interest
earning assets decreased 82 basis points to 6.48% for the quarter ended
June 30, 2008 from 7.30% during the second quarter of 2007. The rate paid
on average interest bearing liabilities decreased 105 basis points to 1.82%
for the quarter ended June 30, 2008 from 2.87% for the second quarter of
2007.
For the six months ended June 30, 2008 net interest income before provision
for loan losses totaled $10.1 million, a decline of $793 thousand from the
$10.9 million earned during the second quarter of 2007. Net interest
margin declined 14 basis points to 5.05% during the current six-month
period from 5.19% for the same period in the prior year.
Asset Quality
Nonperforming loans at June 30, 2008 were $1.9 million, an increase of $500
thousand over the $1.4 million balance at June 30, 2007, but a decrease of
$1.9 million from March 31, 2008. Nonperforming assets (which is comprised
of nonperforming loans plus repossessed vehicles and foreclosed real
estate) at June 30, 2008 were $4.4 million, an increase of $2.7 million
over the $1.7 million balance at June 30, 2007, but a decrease of $300
thousand from March 31, 2008. Nonperforming assets includes foreclosed
real estate of $2.4 million at June 30, 2008 compared to $200 thousand at
June 30, 2007 and $799 thousand at March 31, 2008.
In response to the continuing decline in real estate values the Company
increased its loan loss provision from $375 thousand during the six months
ended June 30, 2007 to $990 thousand during the current six month period.
For the three months ended June 30, 2008 the provision for loan losses
totaled $470 thousand an increase of $345 thousand over the $125 thousand
recorded during the second quarter of 2007.
Net charge-offs during the first six months of 2008 totaled $746 thousand,
an increase of $633 thousand from the $113 thousand incurred during the six
months ended June 30, 2007. Annualized net charge-offs as a percentage of
average loans totaled 0.43% during the first six months of 2008 up from
0.06% for the same period in 2007.
As a result of the above the allowance for loan losses as a percentage of
total loans increased from 1.17% at June 30, 2007 to 1.25% at June 30, 2008
and decreased from 1.32% at March 31, 2008. Based on an evaluation of the
credit quality of the loan portfolio, delinquency trends and charge-offs we
believe the allowance for loan losses at June 30, 2008 to be reasonable and
adequate.
Plumas Bancorp is the holding company for Plumas Bank (
Founded in 1980, Plumas Bank is a locally owned and managed full-service
community bank based in Northeastern California. The Bank operates thirteen
branches located in the counties of Plumas, Lassen, Sierra, Placer, Nevada,
Modoc and Shasta, and it also operates a commercial real estate lending
office in Reno, Nevada. Plumas Bank offers a wide range of financial and
investment services to consumers and businesses and has received nationwide
Preferred Lender status with the U.S. Small Business Administration. Plumas
Bank was named a Premier Bank in 2008 by The Findley Reports. Additionally,
in recognition of the Company’s long history of stock performance, Plumas
Bancorp was named to the Keefe, Bruyette & Woods Honor Roll for banking
institutions. For more information on Plumas Bancorp and Plumas Bank,
please visit our website at www.plumasbank.com.
This news release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Exchange Act of 1934, as amended and Plumas Bancorp intends for such
forward-looking statements to be covered by the safe harbor provisions for
forward-looking statements contained in the Private Securities Litigation
Reform Act of 1995. Future events are difficult to predict, and the
expectations described above are necessarily subject to risk and
uncertainty that may cause actual results to differ materially and
adversely.
Forward-looking statements can be identified by the fact that they do not
relate strictly to historical or current facts. They often include the
words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or
words of similar meaning, or future or conditional verbs such as “will,”
“would,” “should,” “could,” or “may.” These forward-looking statements are
not guarantees of future performance, nor should they be relied upon as
representing management’s views as of any subsequent date. Forward-looking
statements involve significant risks and uncertainties and actual results
may differ materially from those presented, either expressed or implied, in
this news release. Factors that might cause such differences include, but
are not limited to: the Company’s ability to successfully execute its
business plans and achieve its objectives; changes in general economic and
financial market conditions, either nationally or locally in areas in which
the Company conducts its operations; changes in interest rates; continuing
consolidation in the financial services industry; new litigation or changes
in existing litigation; increased competitive challenges and expanding
product and pricing pressures among financial institutions; legislation or
regulatory changes which adversely affect the Company’s operations or
business; loss of key personnel; and changes in accounting policies or
procedures as may be required by the Financial Accounting Standards Board
or other regulatory agencies.
In addition, discussions about risks and uncertainties are set forth from
time to time in the Company’s publicly available Securities and Exchange
Commission filings. The Company undertakes no obligation to publicly revise
these forward-looking statements to reflect subsequent events or
circumstances.
PLUMAS BANCORP
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
As of June 30,
---------------------
Dollar Percentage
2008 2007 Change Change
---------- ---------- --------- ----------
ASSETS
Cash and due from banks $ 15,903 $ 16,535 $ (632) -3.8%
Federal funds sold - 150 (150) -100.0%
Investment securities 46,935 57,453 (10,518) -18.3%
Loans, net of allowance for
loan losses 352,502 354,815 (2,313) -0.7%
Premises and equipment, net 15,474 15,016 458 3.1%
Intangible assets, net 908 1,187 (279) -23.5%
Bank owned life insurance 9,594 9,615 (21) -0.2%
Real estate and vehicles
acquired through foreclosure 2,425 239 2,186 914.6%
Accrued interest receivable
and other assets 9,242 8,941 301 3.4%
---------- ---------- ---------
Total assets $ 452,983 $ 463,951 $ (10,968) -2.4%
========== ========== =========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits $ 375,029 $ 400,664 $ (25,635) -6.4%
Short-term borrowings 24,500 12,300 12,200 99.2%
Accrued interest payable and
other liabilities 6,355 4,312 2,043 47.4%
Junior subordinated deferrable
interest debentures 10,310 10,310 - 0.0%
---------- ---------- ---------
Total liabilities 416,194 427,586 (11,392) -2.7%
Shareholders' equity 36,789 36,365 424 1.2%
---------- ---------- ---------
Total liabilities and
shareholders' equity $ 452,983 $ 463,951 $ (10,968) -2.4%
========== ========== =========
PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
FOR THE THREE MONTHS ENDED Dollar Percentage
JUNE 30, 2008 2007 Change Change
---------- ---------- --------- ----------
Interest income $ 6,453 $ 7,689 $ (1,236) -16.1%
Interest expense 1,329 2,271 (942) -41.5%
---------- ---------- ---------
Net interest income before
provision for loan losses 5,124 5,418 (294) -5.4%
Provision for loan losses 470 125 345 276.0%
---------- ---------- ---------
Net interest income after
provision for loan losses 4,654 5,293 (639) -12.1%
Non-interest income 1,390 1,295 95 7.3%
Non-interest expenses 4,978 4,741 237 5.0%
---------- ---------- ---------
Income before provision for
income taxes 1,066 1,847 (781) -42.3%
Provision for income taxes 369 713 (344) -48.2%
---------- ---------- ---------
Net income $ 697 $ 1,134 $ (437) -38.5%
========== ========== =========
Basic earnings per share $ 0.14 $ 0.23 $ (0.09) -39.1%
========== ========== =========
Diluted earnings per share $ 0.14 $ 0.23 $ (0.09) -39.1%
========== ========== =========
FOR THE SIX MONTHS ENDED Dollar Percentage
JUNE 30, 2008 2007 Change Change
---------- ---------- --------- ----------
Interest income $ 13,216 $ 15,250 $ (2,034) -13.3%
Interest expense 3,104 4,345 (1,241) -28.6%
---------- ---------- ---------
Net interest income before
provision for loan losses 10,112 10,905 (793) -7.3%
Provision for loan losses 990 375 615 164.0%
---------- ---------- ---------
Net interest income after
provision for loan losses 9,122 10,530 (1,408) -13.4%
Non-interest income 2,716 2,567 149 5.8%
Non-interest expenses 9,914 9,749 165 1.7%
---------- ---------- ---------
Income before provision for
income taxes 1,924 3,348 (1,424) -42.5%
Provision for income taxes 651 1,266 (615) -48.6%
---------- ---------- ---------
Net income $ 1,273 $ 2,082 $ (809) -38.9%
========== ========== =========
Basic earnings per share $ 0.26 $ 0.42 $ (0.16) -38.1%
========== ========== =========
Diluted earnings per share $ 0.26 $ 0.41 $ (0.15) -36.6%
========== ========== =========
PLUMAS BANCORP
SELECTED FINANCIAL INFORMATION
(In thousands, except per share data)
(Unaudited)
June 30,
--------------------
2008 2007
--------- ---------
QUARTERLY AVERAGE BALANCES
Assets $ 444,495 $ 467,516
Earning assets $ 400,300 $ 422,540
Loans $ 351,679 $ 360,240
Deposits $ 380,048 $ 397,348
Equity $ 37,219 $ 36,626
CREDIT QUALITY DATA
Allowance for loan losses $ 4,455 $ 4,179
Allowance for loan losses as a percentage of total
loans 1.25% 1.17%
Nonperforming loans $ 1,946 $ 1,446
Nonperforming assets $ 4,371 $ 1,685
Nonperforming loans as a percentage of total loans 0.55% 0.40%
Nonperforming assets as a percentage of total assets 0.96% 0.36%
Year-to-date net charge-offs $ 746 $ 113
Year-to-date net charge-offs as a percentage of
average loans, annualized 0.43% 0.06%
SHARE AND PER SHARE DATA
Basic earnings per share for the quarter $ 0.14 $ 0.23
Diluted earnings per share for the quarter $ 0.14 $ 0.23
Quarterly weighted average shares outstanding 4,822 4,984
Quarterly weighted average diluted shares outstanding 4,849 5,029
Basic earnings per share, year-to-date $ 0.26 $ 0.42
Diluted earnings per share, year-to-date $ 0.26 $ 0.41
Year-to-date weighted average shares outstanding 4,841 4,998
Year-to-date weighted average diluted shares
outstanding 4,868 5,050
Book value per share $ 7.63 $ 7.33
Cash dividends paid per share, year-to-date $ 0.16 $ 0.15
Total shares outstanding 4,820 4,962
QUARTERLY KEY FINANCIAL RATIOS
Annualized return on average equity 7.5% 12.4%
Annualized return on average assets 0.63% 0.97%
Net interest margin 5.15% 5.14%
Efficiency ratio 76.4% 70.6%
YEAR-TO-DATE KEY FINANCIAL RATIOS
Annualized return on average equity 6.9% 11.5%
Annualized return on average assets 0.57% 0.90%
Net interest margin 5.05% 5.19%
Efficiency ratio 77.3% 72.4%
Loan to Deposit Ratio 95.1% 89.4%
| Contact: Elizabeth Kuipers Vice President, Marketing Manager & Investor Relations Officer Plumas Bank 35 S. Lindan Ave., Quincy, CA 95971 Ph: 530.283.7305 ext. 8912 Fax: 530.283.9665 |
|
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