SOURCE: Plumas Bancorp

July 20, 2005 16:00 ET

Plumas Bancorp Reports Strong Earnings Growth

QUINCY, CA -- (MARKET WIRE) -- July 20, 2005 -- Plumas Bancorp, listed on the NASDAQ Small Cap Market: PLBC (NASDAQ: PLBC), and on the newly launched Russell Microcap Index under the same ticker symbol, is a bank holding company and the parent company of Plumas Bank. The Company announced today that quarterly earnings were $1,083,000 for the second quarter of 2005, an increase of 27% over the same period in 2004. Quarterly earnings per share on a diluted basis were 32 cents, up 7 cents or 28% from the second quarter of 2004. Assets as of June 30, 2005 topped $451 million, up $47 million, or 12% from the $404 million at June 30, 2004. (See condensed balance sheet and income statements attached.)

Year-to-date net income reached $1,980,000, an increase of 26% over the first six months of 2004. Diluted earnings per share for the first six months of 2005 were 59 cents, up 12 cents or 25.5% from the same period in 2004. Shareholders' equity as of June 30, 2005 was $29.4 million up almost $4 million, or 15%, from the end of the second quarter of 2004.

Total loans over the past year grew an impressive $78 million, or 34%, from $228 million at the end of the second quarter of 2004 to $306 million currently.

"Strong loan growth was the primary contributor to increased company profitability this quarter," stated William E. Elliott, president and chief executive officer of Plumas Bancorp. "Due to this loan growth and the positive affects of the rising rate environment, we expect earnings to accelerate through the remainder of the year, barring any unforeseen circumstances."

Total deposits at the end of June 2005 were $394 million, an increase of 7% over the end of the second quarter last year. Operating revenues (net interest income and non-interest income) for second quarter 2005 were $6.1 million, up from $5.4 million for second quarter 2004, an increase of 14%. Year-to-date operating revenues reached $12 million, a 15% increase from the $10.4 million over the same six-month period last year.

Headquartered in Quincy, California, since 1980, Plumas Bank, a subsidiary of Plumas Bancorp, maintains twelve full-service community banking offices serving the financial needs of local families and businesses in Plumas, Sierra, Lassen, Modoc, Shasta, Nevada, and Placer Counties. The Bank provides traditional deposit, lending, mortgage and commercial bank products and services to business and retail customers between Lake Tahoe and the Oregon border. Plumas Bank also specializes in providing banking services to the local agribusiness community as well as certain stock brokerage and insurance services.

This news release includes forward-looking statements about Plumas Bancorp's financial condition, results of operations, plans, objectives and future performance. A number of factors, many of which are beyond the control of Plumas Bancorp, could cause actual results to differ materially from those in the forward-looking statements.


                              PLUMAS BANCORP
                   CONDENSED CONSOLIDATED BALANCE SHEET
                              (In thousands)

                                  Unaudited
                                As of June 30,
                                                     Dollar    Percentage
                               2005        2004      Change      Change
                            ---------   ---------   ---------   ---------
ASSETS
Cash and due from banks     $  17,440   $  27,603   $ (10,163)      -36.8%
Federal funds sold                385       5,440      (5,055)     -929.2%
Investment securities          98,275     113,988     (15,713)      -13.8%
Loans, less allowance for
 loan losses of $3,107 at
 June 30, 2005 and $2,627
 at June 30, 2004.            306,039     227,759      78,280        34.4%
Premises and equipment, net    10,338      10,057         281         2.8%
Intangible assets, net          1,789       2,090        (301)      -14.4%
Company owned life
 insurance                      8,507       8,186         321         3.9%
Accrued interest receivable
 and other assets               8,574       9,127        (553)       -6.1%
                            ---------   ---------   ---------
  Total assets              $ 451,347   $ 404,250   $  47,097        11.7%
                            =========   =========   =========

LIABILITIES AND
 SHAREHOLDERS' EQUITY
Deposits                    $ 393,871   $ 369,629   $  24,242         6.6%
Federal funds purchased        17,500           -      17,500       100.0%
Accrued interest payable
 and other liabilities          4,385       2,943       1,442        49.0%
Junior subordinated
 deferrable interest
 debentures                     6,186       6,186           -           -%
                            ---------   ---------   ---------
  Total liabilities           421,942     378,758      43,184        11.4%
Shareholders' equity           29,405      25,492       3,913        15.3%
                            ---------   ---------   ---------
  Total liabilities and
   shareholders' equity     $ 451,347   $ 404,250   $  47,097        11.7%
                            =========   =========   =========

KEY BALANCE SHEET DATA
 AND RATIOS
Nonperforming loans         $   1,013   $   2,024
Nonperforming assets        $   1,042   $   2,169
Nonperforming loans as
 a percentage of total
 loans                           0.33%       0.88%
Nonperforming assets as
 a percentage of total
 assets                          0.23%       0.54%
Allowance for loan losses
 as a percentage of total
 loans                           1.01%       1.14%
Loan to deposit ratio            78.4%       62.5%
Capital ratios
   Leverage                       7.8%        7.7%
   Tier 1 risk-based              9.4%       10.3%
   Total risk-based              10.3%       11.2%


                              PLUMAS BANCORP
                 CONDENSED CONSOLIDATED STATEMENT OF INCOME
                    (In thousands, except per share data)

                                  Unaudited
                            For the Three Months
                                Ended June 30
                                                     Dollar    Percentage
                               2005        2004      Change      Change
                            ---------   ---------   ---------   ---------

Interest income             $   6,169   $   4,735   $   1,434        30.3%
Interest expense                1,142         690         452        65.5%
                            ---------   ---------   ---------
  Net interest income
   before provision for
   loan losses                  5,027       4,045         982        24.3%
Provision for loan losses         300         150         150       100.0%
                            ---------   ---------   ---------
  Net interest income
   after provision for
   loan losses                  4,727       3,895         832        21.4%
Non-interest income             1,110       1,337        (227)      -17.0%
Non-interest expenses           4,125       3,913         212         5.4%
                            ---------   ---------   ---------

  Income before provision
   for income taxes             1,712       1,319         393        29.8%
Provision for income taxes        629         469         160        34.1%
                            ---------   ---------   ---------
  Net income                $   1,083   $     850   $     233        27.4%
                            =========   =========   =========

Basic earnings per share    $    0.33   $    0.26   $    0.07        26.9%
                            =========   =========   =========
Diluted earnings per share  $    0.32   $    0.25   $    0.07        28.0%
                            =========   =========   =========

KEY INCOME STATEMENT DATA
 AND RATIOS
Net loan charge-offs        $     157   $     166
Net loan charge-offs as
 a percentage of average
 loans                           0.21%       0.30%
Return on average assets
 (annualized)                    0.98%       0.85%
Return on average equity
 (annualized)                    14.8%       12.4%
Net interest margin              5.03%       4.67%


                                  Unaudited
                             For the Six Months
                                Ended June 30
                                                     Dollar    Percentage
                               2005        2004      Change      Change
                            ---------   ---------   ---------   ---------

Interest income             $  11,829   $   9,471   $   2,358        24.9%
Interest expense                2,065       1,397         668        47.8%
                            ---------   ---------   ---------
  Net interest income
   before provision for
   loan losses                  9,764       8,074       1,690        20.9%
Provision for loan losses         600         300         300       100.0%
                            ---------   ---------   ---------
  Net interest income
   after provision for
   loan losses                  9,164       7,774       1,390        17.9%
Non-interest income             2,219       2,357        (138)       -5.9%
Non-interest expenses           8,326       7,674         652         8.5%
                            ---------   ---------   ---------

  Income before provision
   for income taxes             3,057       2,457         600        24.4%
Provision for income taxes      1,077         881         196        22.2%
                            ---------   ---------   ---------
  Net income                $   1,980   $   1,576   $     404        25.6%
                            =========   =========   =========

Basic earnings per share    $    0.60   $    0.48   $    0.12        25.0%
                            =========   =========   =========
Diluted earnings per share  $    0.59   $    0.47   $    0.12        25.5%
                            =========   =========   =========

KEY INCOME STATEMENT DATA
 AND RATIOS
Net loan charge-offs        $     255   $     237
Net loan charge-offs as
 a percentage of average
 loans                           0.18%       0.22%
Return on average assets
 (annualized)                    0.92%       0.79%
Return on average equity
 (annualized)                    13.8%       11.5%
Net interest margin              5.02%       4.67%

Contact Information

  • Contact:
    Elizabeth Kuipers
    AVP Marketing Officer
    Plumas Bank
    35 S. Lindan Ave.
    Quincy, CA 95971
    Ph: 530.283.7305 x8912
    Fx: 530.283.9665
    Email Contact