Ryback concluded, "Moving further into 2017, our 37 th year of operation, I am confident that we will continue to prosper and grow and, as always, we remain committed to creating value for our shareholders, clients, and colleagues."Financial Highlights March 31, 2017 compared to March 31, 2016
- Total assets increased by $68.3 million, or 11%, to $664 million.
- Gross loans increased by $60.8 million, or 15%, to $470 million compared to $409 million.
- Total deposits increased by $64.1 million, or 12%, to $589 million.
- Note payable decreased by $2.5 million to $2.3 million.
- Total equity increased by $5.5 million to $50.5 million.
- Book value per share increased by $0.99, or 11%, to $10.26, up from $9.27.
- Net charge-offs decreased by $74 thousand, or 92%, to $6 thousand from $80 thousand.
- Annualized net charges-offs as a percent of average loans declined to 0.01% from 0.08%.
- The ratio of nonperforming loans to total loans decreased to 0.66% from 1.12% and the ratio of nonperforming assets to total assets decreased to 0.57% from 1.07%.
- Net income increased by $491 thousand or 31%, to $2.1 million.
- Diluted EPS increased by $0.09, or 29%, to $0.40 from $0.31.
- Net interest income increased by $769 thousand to $6.5 million.
- Return on average equity increased to 16.9% from 14.3%.
- Return on average assets increased to 1.26% from 1.06%.
Total deposits increased by $64.1 million from $525 million at March 31, 2016 to $589 million at March 31, 2017. This $64.1 million increase includes increases of $39.3 million in non-interest bearing demand deposits, $1.7 million in interest bearing transaction accounts and $26.5 million in money market and savings accounts. Non-interest bearing demand deposits totaled 41% of the Bank's total deposits at March 31, 2017. Time deposits declined by $3.4 million to $48.0 million or 8% of total deposits. The Company has no brokered deposits.Total investment securities increased by $11.3 million from $99.6 million at March 31, 2016 to $110.9 million at March 31, 2017. Cash and due from banks decreased by $3.8 million from $55.8 million at March 31, 2016 to $52.0 million at March 31, 2017. Asset Quality Nonperforming assets (which are comprised of nonperforming loans, other real estate owned ("OREO") and repossessed vehicle holdings) at March 31, 2017 were $3.8 million, down from $6.4 million at March 31, 2016. Nonperforming assets as a percentage of total assets decreased to 0.57% at March 31, 2017 down from 1.07% at March 31, 2016. OREO declined by $1.1 million or 63% from $1.8 million at March 31, 2016 to $651 thousand at March 31, 2017. Nonperforming loans at March 31, 2017 were $3.1 million, down $1.5 million, or 32% from $4.6 million at March 31, 2016. Nonperforming loans as a percentage of total loans decreased to 0.66% at March 31, 2017, down from 1.12% at March 31, 2016. During the three months ended March 31, 2017 and 2016 we recorded a provision for loan losses of $200 thousand. Net charge-offs totaled $6 thousand and $80 thousand during the three months ended March 31, 2017 and 2016, respectively. The allowance for loan losses totaled $6.7 million at March 31, 2017 and $6.2 million at March 31, 2016. The allowance for loan losses as a percentage of total loans decreased from 1.51% at March 31, 2016 to 1.43% at March 31, 2017.
Shareholders' EquityTotal shareholders' equity increased by $5.5 million from $45.0 million at March 31, 2016 to $50.5 million at March 31, 2017. The $5.5 million includes earnings during the twelve month period totaling $8.0 million and stock option activity totaling $0.3 million. These items were partially offset by a decrease in net unrealized gains on investment securities of $1.5 million, a $0.10 per share cash dividend, paid in November 2016, totaling $489 thousand and the repurchase of a portion of a warrant, in May 2016, representing the right to purchase 150,000 shares of the registrant's common stock at a cost of $862 thousand. Net Interest Income and Net Interest Margin Net interest income, on a nontax-equivalent basis, was $6.5 million for the three months ended March 31, 2017, an increase of $769 thousand, or 13%, from $5.7 million for the same period in 2016. The increase in net interest income includes an increase of $765 thousand in interest income: the largest component of which was an increase in interest and fees on loans of $653 thousand. This increase in interest and fees on loans was related to an increase in average loan balances of $59.4 million, slightly offset by a decline in yield on loans of 9 basis points from 5.45% during the 2016 quarter to 5.36% during the current quarter. Interest expense declined by $4 thousand related to a decline in the average balance of the Plumas Bancorp's note payable from $4.9 million during the three months ended March 31, 2016 to $2.4 million during the current quarter. Net interest margin for the three months ended March 31, 2017 increased 10 basis points to 4.30%, up from 4.20% for the same period in 2016. Non-Interest Income/Expense During the three months ended March 31, 2017, non-interest income totaled $2.0 million, an increase of $394 thousand from the three months ended March 31, 2016. The largest component of this increase was a $195 thousand increase in gains on sale of SBA loans from $333 thousand during the three months ended March 31, 2016 to $528 thousand during the current quarter. Proceeds from SBA loan sales totaled $9.2 million during the current quarter and $6.3 million during the 2016 quarter. Loans originated for sale totaled $11.2 million during the three months ended March 31, 2017 and $8.7 million during the three months ended March 31, 2016.
During the three months ended March 31, 2017, total non-interest expense increased by $449 thousand, or 10%, to $5.1 million, up from $4.6 million for the comparable period in 2016 primarily related to an increase of $319 thousand in salary and benefit expense. Salary expense increased by $143 thousand to $2.1 million related to additions to staff and merit and promotion increases. Increases in personnel included an additional underwriter in our SBA operations, a customer service representative and a business development officer in our Reno, Nevada branch, an additional commercial loan officer working out of our Redding, California branch and an agricultural/commercial loan officer located in Klamath Falls, Oregon. Other significant increases in salary and benefit expense included an increase in accrued bonus expense of $71 thousand, an increase in payroll taxes of $40 thousand and an increase in commission expense related to the Company's SBA operations of $32 thousand.Founded in 1980, Plumas Bank is a locally owned and managed full-service community bank headquartered 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 the Nevada County of Washoe. The Bank also operates five loan production offices: two located in the California Counties of Placer and Butte, one located in the Oregon County of Klamath, one located in the Washington County of King and one located in the Arizona County of Maricopa. 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.
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|As of March 31,|
|Cash and due from banks||$||51,954||$||55,795||$||(3,841||)||-6.9||%|
|Loans, net of allowance for loan losses||465,243||404,913||60,330||14.9||%|
|Premises and equipment, net||11,630||12,249||(619||)||-5.1||%|
|Bank owned life insurance||12,610||12,273||337||2.7||%|
|Real estate acquired through foreclosure||651||1,760||(1,109||)||-63.0||%|
|Accrued interest receivable and other assets||10,594||8,699||1,895||21.8||%|
|Accrued interest payable and other liabilities||11,221||10,075||1,146||11.4||%|
|Junior subordinated deferrable interest debentures||10,310||10,310||-||0.0||%|
|Accumulated other comprehensive income, net||(666||)||794||(1,460||)||-183.9||%|
|Total liabilities and shareholders' equity||$||663,610||$||595,322||$||68,288||11.5||%|
|CONDENSED CONSOLIDATED STATEMENTS OF INCOME|
|(In thousands, except per share data)|
|FOR THE THREE MONTHS ENDED MARCH 31,||2017||2016||DollarChange||PercentageChange|
|Net interest income before provision for loan losses||6,507||5,738||769||13.4||%|
|Provision for loan losses||200||200||-||0.0||%|
|Net interest income after provision for loan losses||6,307||5,538||769||13.9||%|
|Income before income taxes||3,271||2,557||714||27.9||%|
|Provision for income taxes||1,207||984||223||22.7||%|
|Basic earnings per share||$||0.42||$||0.32||$||0.10||31.3||%|
|Diluted earnings per share||$||0.40||$||0.31||$||0.09||29.0||%|
|SELECTED FINANCIAL INFORMATION|
|(In thousands, except per share data)|
|AVERAGE BALANCES FOR THE QUARTER ENDED|
|CREDIT QUALITY DATA|
|Allowance for loan losses||$||6,743||$||6,198|
|Allowance for loan losses as a percentage of total loans||1.43||%||1.51||%|
|Nonperforming loans as a percentage of total loans||0.66||%||1.12||%|
|Nonperforming assets as a percentage of total assets||0.57||%||1.07||%|
|Year-to-date net charge-offs||$||6||$||80|
|Year-to-date net charge-offs as a percentage of average|
|SHARE AND PER SHARE DATA|
|Basic earnings per share for the quarter||$||0.42||$||0.32|
|Diluted earnings per share for the quarter||$||0.40||$||0.31|
|Quarterly weighted average shares outstanding||4,911||4,842|
|Quarterly weighted average diluted shares outstanding||5,164||5,058|
|Book value per common share||$||10.26||$||9.27|
|Total shares outstanding||4,927||4,853|
|KEY FINANCIAL RATIOS|
|Annualized return on average equity||16.9||%||14.3||%|
|Annualized return on average assets||1.26||%||1.06||%|
|Net interest margin||4.30||%||4.20||%|
|Loan to Deposit Ratio||79.8||%||77.9||%|
|PLUMAS BANK CAPITAL RATIOS|
|Tier 1 Leverage Ratio||9.4||%||9.7||%|
|Common Equity Tier 1 Ratio||12.3||%||13.0||%|
|Tier 1 Risk-Based Capital Ratio||12.3||%||13.0||%|
|Total Risk-Based Capital Ratio||13.6||%||14.2||%|
Contact: Elizabeth KuipersVice President, Marketing Manager & Investor Relations OfficerPlumas Bank35 S. Lindan AvenueQuincy, CA 95971530.283.7305 email@example.com