Plumas Bank reports second quarter earnings increase
Plumas Bancorp, a bank holding company and the parent company of Plumas Bank, announced that second quarter earnings increased by $3.8 million from a net loss of $3.2 million for the second quarter period ending June 30, 2009, to net income of $576,000 during the same quarter this year.
For the first six months of its fiscal year, Plumas Bancorp reported net income of $710,000, an increase of $5.2 million from a net loss of $4.5 million during the same period in 2009.
Net income available to common shareholders was $405,000, or $0.08 per share, representing an increase of $3.8 million from a net loss of $3.4 million, or $0.71 per share, during the same period in 2009.
Total shareholders’ equity decreased by $4.0 million from $42.7 million to $38.7 million as of June 30, 2010. Book value per common share decreased to $5.67 from $6.54.
Andrew J. Ryback, interim president and chief executive officer, released the following statement:
“We are very pleased with our progress and our return to profitability. These earnings improvements are the result of a variety of strategic decisions executed by the management team under the direction of the board of directors over the last several months.
“In particular, we are beginning to see the positive effects of the aggressive cost reduction measures implemented earlier in the year. These measures streamlined our operations and reduced salary costs by over $1 million on an annualized basis. We expect to continue to see the accelerated benefits of these savings in future quarters.
“Another factor contributing to our second quarter profit was the sale of our merchant card processing business to a world-wide merchant processing leader. As a result of this sale, we recorded a one-time gain of $1.4 million.
“Our second quarter results were positively impacted by our continued focus on expanding our market share in the SBA sector. Our efforts in this area generated a $239,000 gain on the sale of $3.4 million of SBA loans.”
“On the subject of SBA loans”, Ryback said, “I’m pleased to announce that Plumas Bank was selected as the Community/Rural SBA Lender of the Year for 2010 by the SBA’s Sacramento office.
As an SBA preferred lender, Plumas Bank is proud to be able to help our small business communities overcome challenges and achieve financial success by providing them access to capital.”
“On a final encouraging note, we’ve seen some stabilization in real estate values and have had some success in selling our OREO (Other Real Estate Owned) properties.
“As we hope is evident from these second quarter results, the management team of Plumas Bancorp is dedicated to actively and decisively navigating our company through these difficult times.”