þ | QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
California | 75-2987096 | |
(State or Other Jurisdiction of | (I.R.S. Employer Identification No.) | |
Incorporation or Organization) | ||
35 S. Lindan Avenue, Quincy, California | 95971 | |
(Address of Principal Executive Offices) | (Zip Code) |
September 30, | December 31, | |||||||
2007 | 2006 | |||||||
Assets
|
||||||||
Cash and due from banks
|
$ | 15,167 | $ | 11,293 | ||||
Federal funds sold
|
8,045 | | ||||||
|
||||||||
Cash and cash equivalents
|
23,212 | 11,293 | ||||||
Investment securities (fair value of $62,263 at
September 30, 2007 and $74,841 at December 31, 2006)
|
62,252 | 74,795 | ||||||
Loans, less allowance for loan losses of $4,127 at
September 30, 2007 and $3,917 at December 31, 2006
(Notes 3 and 4)
|
349,291 | 351,977 | ||||||
Premises and equipment, net
|
14,799 | 15,190 | ||||||
Intangible assets, net
|
1,112 | 1,337 | ||||||
Bank owned life insurance
|
9,700 | 9,449 | ||||||
Accrued interest receivable and other assets
|
9,355 | 9,198 | ||||||
|
||||||||
Total assets
|
$ | 469,721 | $ | 473,239 | ||||
|
||||||||
|
||||||||
Liabilities and Shareholders Equity
|
||||||||
Deposits:
|
||||||||
Non-interest bearing
|
$ | 119,956 | $ | 121,464 | ||||
Interest bearing
|
296,865 | 280,712 | ||||||
|
||||||||
Total deposits
|
416,821 | 402,176 | ||||||
Short-term borrowings
|
| 20,000 | ||||||
Accrued interest payable and other liabilities
|
4,963 | 4,901 | ||||||
Junior subordinated deferrable interest debentures
|
10,310 | 10,310 | ||||||
|
||||||||
Total liabilities
|
432,094 | 437,387 | ||||||
|
||||||||
|
||||||||
Commitments and contingencies (Note 4)
|
| | ||||||
|
||||||||
Shareholders equity (Notes 5 and 7):
|
||||||||
Serial preferred stock, no par value; 10,000,000
shares authorized, none issued
|
| | ||||||
Common stock, no par value; 22,500,000 shares
authorized; issued and outstanding 4,933,616
shares at September 30, 2007 and 5,023,205 shares
at December 31, 2006
|
4,987 | 4,828 | ||||||
Retained earnings
|
32,965 | 31,716 | ||||||
Accumulated other comprehensive loss (Note 6)
|
(325 | ) | (692 | ) | ||||
|
||||||||
Total shareholders equity
|
37,627 | 35,852 | ||||||
|
||||||||
Total liabilities and shareholders equity
|
$ | 469,721 | $ | 473,239 | ||||
|
2
For the Three Months | For the Nine Months | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Interest Income:
|
||||||||||||||||
Interest and fees on loans
|
$ | 6,898 | $ | 6,837 | $ | 20,908 | $ | 19,221 | ||||||||
Interest on investment securities:
|
||||||||||||||||
Taxable
|
448 | 608 | 1,413 | 1,940 | ||||||||||||
Exempt from Federal income taxes
|
131 | 133 | 397 | 397 | ||||||||||||
Interest on Federal funds sold
|
83 | 14 | 91 | 158 | ||||||||||||
|
||||||||||||||||
Total interest income
|
7,560 | 7,592 | 22,809 | 21,716 | ||||||||||||
|
||||||||||||||||
Interest Expense:
|
||||||||||||||||
Interest on deposits
|
1,864 | 1,561 | 5,348 | 4,342 | ||||||||||||
Interest on short-term borrowings
|
29 | 69 | 465 | 108 | ||||||||||||
Interest on junior subordinated deferrable interest debentures
|
213 | 215 | 627 | 599 | ||||||||||||
Other
|
6 | 6 | 17 | 15 | ||||||||||||
|
||||||||||||||||
Total interest expense
|
2,112 | 1,851 | 6,457 | 5,064 | ||||||||||||
|
||||||||||||||||
Net interest income before provision for loan losses
|
5,448 | 5,741 | 16,352 | 16,652 | ||||||||||||
Provision for Loan Losses
|
125 | 300 | 500 | 900 | ||||||||||||
|
||||||||||||||||
Net interest income after provision for loan losses
|
5,323 | 5,441 | 15,852 | 15,752 | ||||||||||||
|
||||||||||||||||
Non-Interest Income:
|
||||||||||||||||
Service charges
|
1,009 | 945 | 2,766 | 2,731 | ||||||||||||
Earnings on Bank owned life insurance policies
|
105 | 100 | 311 | 291 | ||||||||||||
Other
|
314 | 271 | 918 | 831 | ||||||||||||
|
||||||||||||||||
Total non-interest income
|
1,428 | 1,316 | 3,995 | 3,853 | ||||||||||||
|
||||||||||||||||
Non-Interest Expenses:
|
||||||||||||||||
Salaries and employee benefits
|
2,675 | 2,500 | 8,142 | 7,366 | ||||||||||||
Occupancy and equipment
|
870 | 827 | 2,659 | 2,387 | ||||||||||||
Other
|
1,139 | 1,176 | 3,631 | 3,579 | ||||||||||||
|
||||||||||||||||
Total non-interest expenses
|
4,684 | 4,503 | 14,432 | 13,332 | ||||||||||||
|
||||||||||||||||
|
||||||||||||||||
Income before provision for income taxes
|
2,067 | 2,254 | 5,415 | 6,273 | ||||||||||||
Provision for Income Taxes
|
789 | 858 | 2,055 | 2,392 | ||||||||||||
|
||||||||||||||||
Net income
|
$ | 1,278 | $ | 1,396 | $ | 3,360 | $ | 3,881 | ||||||||
|
||||||||||||||||
|
||||||||||||||||
Basic earnings per share (Note 5)
|
$ | 0.26 | $ | 0.28 | $ | 0.67 | $ | 0.78 | ||||||||
|
||||||||||||||||
Diluted earnings per share (Note 5)
|
$ | 0.26 | $ | 0.27 | $ | 0.67 | $ | 0.76 | ||||||||
|
3
For the Nine Months | ||||||||
Ended September 30, | ||||||||
2007 | 2006 | |||||||
Cash Flows from Operating Activities:
|
||||||||
Net income
|
$ | 3,360 | $ | 3,881 | ||||
Adjustments to reconcile net income to net cash provided by operating
activities:
|
||||||||
Provision for loan losses
|
500 | 900 | ||||||
Change in deferred loan origination costs/fees, net
|
357 | (398 | ) | |||||
Depreciation and amortization
|
1,665 | 1,582 | ||||||
Stock-based compensation expense
|
209 | 130 | ||||||
Amortization of investment security premiums
|
125 | 312 | ||||||
Accretion of investment security discounts
|
(47 | ) | (67 | ) | ||||
Net loss on disposal/sale of premises and equipment
|
32 | 6 | ||||||
Gain on sale of vehicles owned
|
(24 | ) | (6 | ) | ||||
Earnings on Bank owned life insurance policies
|
(311 | ) | (291 | ) | ||||
Expenses on Bank owned life insurance policies
|
60 | 55 | ||||||
Increase in accrued interest receivable and other assets
|
(456 | ) | (673 | ) | ||||
Increase (decrease) in accrued interest payable and other liabilities
|
62 | (349 | ) | |||||
|
||||||||
Net cash provided by operating activities
|
5,532 | 5,082 | ||||||
|
||||||||
|
||||||||
Cash Flows from Investing Activities:
|
||||||||
Proceeds from matured and called available-for-sale investment securities
|
21,375 | 14,346 | ||||||
Proceeds from matured and called held-to-maturity investment securities
|
435 | 45 | ||||||
Purchases of available-for-sale investment securities
|
(11,009 | ) | | |||||
Purchases of held-to-maturity investment securities
|
| (155 | ) | |||||
Proceeds from principal repayments from available-for-sale
government-guaranteed mortgage-backed securities
|
2,288 | 2,782 | ||||||
Net decrease (increase) in loans
|
1,295 | (28,591 | ) | |||||
Proceeds from sale of other vehicles
|
354 | 124 | ||||||
Purchase of bank owned life insurance
|
| (200 | ) | |||||
Purchase of premises and equipment
|
(835 | ) | (4,035 | ) | ||||
|
||||||||
Net cash provided by (used in) investing activities
|
13,903 | (15,684 | ) | |||||
|
4
For the Nine Months | ||||||||
Ended September 30, | ||||||||
2007 | 2006 | |||||||
Cash Flows from Financing Activities:
|
||||||||
Net decrease in demand, interest bearing and savings deposits
|
$ | (15,973 | ) | $ | (1,779 | ) | ||
Net increase (decrease) in time deposits
|
30,618 | (6,768 | ) | |||||
Net (decrease) increase in short-term borrowings
|
(20,000 | ) | 9,500 | |||||
Net proceeds from exercise of stock options
|
40 | 108 | ||||||
Payment of cash dividends
|
(750 | ) | (651 | ) | ||||
Repurchase and retirement of common stock
|
(1,451 | ) | | |||||
|
||||||||
Net cash (used in) provided by financing activities
|
(7,516 | ) | 410 | |||||
|
||||||||
Increase (decrease) in cash and cash equivalents
|
11,919 | (10,192 | ) | |||||
Cash and Cash Equivalents at Beginning of Year
|
11,293 | 24,596 | ||||||
|
||||||||
Cash and Cash Equivalents at End of Period
|
$ | 23,212 | $ | 14,404 | ||||
|
||||||||
|
||||||||
Supplemental Disclosure of Cash Flow Information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest expense
|
$ | 5,995 | $ | 4,945 | ||||
Income taxes
|
$ | 2,475 | $ | 2,585 | ||||
|
||||||||
Non-Cash Investing Activities:
|
||||||||
Vehicles acquired through foreclosure
|
$ | 352 | $ | 117 | ||||
Real estate acquired through foreclosure
|
$ | 182 | $ | | ||||
Loan transferred to other assets
|
$ | | $ | 230 | ||||
Net decrease in unrealized loss on available-for-sale securities
|
$ | 367 | $ | 227 | ||||
|
||||||||
Non-Cash Financing Activities:
|
||||||||
Common stock retired in connection with the exercise of stock options
|
$ | 49 | $ | 354 |
5
6
September 30, | December 31, | |||||||
2007 | 2006 | |||||||
Commercial
|
$ | 37,319 | $ | 36,182 | ||||
Agricultural
|
37,429 | 35,577 | ||||||
Real estate mortgage
|
120,733 | 116,329 | ||||||
Real estate construction and land development
|
80,281 | 75,930 | ||||||
Consumer
|
76,831 | 90,694 | ||||||
|
||||||||
|
352,593 | 354,712 | ||||||
Deferred loan costs, net
|
825 | 1,182 | ||||||
Allowance for loan losses
|
(4,127 | ) | (3,917 | ) | ||||
|
||||||||
|
$ | 349,291 | $ | 351,977 | ||||
|
7
For the Three Months | For the Nine Months | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Earnings Per Share:
|
||||||||||||||||
Basic earnings per share
|
$ | 0.26 | $ | 0.28 | $ | 0.67 | $ | 0.78 | ||||||||
Diluted earnings per share
|
$ | 0.26 | $ | 0.27 | $ | 0.67 | $ | 0.76 | ||||||||
Weighted Average Number of
Shares Outstanding:
(in thousands) |
||||||||||||||||
Basic shares
|
4,945 | 5,005 | 4,980 | 4,998 | ||||||||||||
Diluted shares
|
4,976 | 5,090 | 5,025 | 5,090 |
8
Weighted | ||||||||||||||||
Average | ||||||||||||||||
Weighted | Remaining | |||||||||||||||
Average | Contractual | Aggregate | ||||||||||||||
Exercise | Term | Intrinsic Value | ||||||||||||||
Shares | Price | (in years) | (in thousands) | |||||||||||||
Options outstanding at December 31, 2006
|
290,914 | $ | 11.62 | |||||||||||||
Options granted
|
155,700 | 16.37 | ||||||||||||||
Options exercised
|
(11,091 | ) | 8.10 | |||||||||||||
Options cancelled
|
(30,693 | ) | 15.74 | |||||||||||||
|
||||||||||||||||
Options outstanding at September 30, 2007
|
404,830 | $ | 13.23 | 6.3 | $ | 302 | ||||||||||
|
||||||||||||||||
Options exercisable at September 30, 2007
|
175,993 | $ | 10.60 | 5.2 | $ | 288 | ||||||||||
|
||||||||||||||||
Expected to vest after September 30, 2007
|
228,837 | $ | 15.25 | 7.1 | $ | 14 | ||||||||||
|
9
10
11
12
13
For the Nine Months Ended September 30, 2007 | For the Nine Months Ended September 30, 2006 | |||||||||||||||||||||||
Average Balance | Interest | Yield/ | Average Balance | Interest | Yield/ | |||||||||||||||||||
(Dollars in thousands) | (in thousands) | (in thousands) | Rate | (in thousands) | (in thousands) | Rate | ||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans (1) (2)
|
$ | 354,478 | $ | 20,908 | 7.89 | % | $ | 330,153 | $ | 19,221 | 7.78 | % | ||||||||||||
Investment securities (1)
|
63,955 | 1,810 | 3.78 | % | 87,142 | 2,337 | 3.59 | % | ||||||||||||||||
Federal funds sold
|
2,384 | 91 | 5.10 | % | 4,679 | 158 | 4.51 | % | ||||||||||||||||
|
||||||||||||||||||||||||
Total interest earning assets
|
420,817 | 22,809 | 7.25 | % | 421,974 | 21,716 | 6.88 | % | ||||||||||||||||
|
||||||||||||||||||||||||
Cash and due from banks
|
12,886 | 13,489 | ||||||||||||||||||||||
Other assets
|
32,413 | 31,425 | ||||||||||||||||||||||
|
||||||||||||||||||||||||
Total assets
|
$ | 466,116 | $ | 466,888 | ||||||||||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
NOW deposits
|
$ | 77,783 | 1,043 | 1.79 | % | $ | 79,987 | 1,085 | 1.81 | % | ||||||||||||||
Money market deposits
|
40,634 | 266 | 0.88 | % | 58,541 | 530 | 1.21 | % | ||||||||||||||||
Savings deposits
|
51,552 | 199 | 0.52 | % | 60,733 | 332 | 0.73 | % | ||||||||||||||||
Time deposits
|
118,753 | 3,840 | 4.32 | % | 93,100 | 2,395 | 3.44 | % | ||||||||||||||||
Short-term borrowings
|
11,585 | 465 | 5.37 | % | 2,743 | 108 | 5.26 | % | ||||||||||||||||
Other interest-bearing liabilities
|
302 | 17 | 7.53 | % | 281 | 15 | 7.14 | % | ||||||||||||||||
Junior subordinated debentures
|
10,310 | 627 | 8.13 | % | 10,310 | 599 | 7.77 | % | ||||||||||||||||
|
||||||||||||||||||||||||
Total interest-bearing liabilities
|
310,919 | 6,457 | 2.78 | % | 305,695 | 5,064 | 2.21 | % | ||||||||||||||||
|
||||||||||||||||||||||||
Non-interest bearing deposits
|
113,748 | 123,677 | ||||||||||||||||||||||
Other liabilities
|
4,628 | 4,466 | ||||||||||||||||||||||
Shareholders equity
|
36,821 | 33,050 | ||||||||||||||||||||||
|
||||||||||||||||||||||||
Total liabilities & equity
|
$ | 466,116 | $ | 466,888 | ||||||||||||||||||||
|
||||||||||||||||||||||||
Cost of funding interest-earning assets (3)
|
2.05 | % | 1.60 | % | ||||||||||||||||||||
Net interest income and margin (4)
|
$ | 16,352 | 5.20 | % | $ | 16,652 | 5.28 | % | ||||||||||||||||
|
(1) | Not computed on a tax-equivalent basis. | |
(2) | Net loan costs included in loan interest income for the nine-month periods ended September 30, 2007 and 2006 were $306,000 and $251,000, respectively. | |
(3) | Total annualized interest expense divided by the average balance of total earning assets. | |
(4) | Annualized net interest income divided by the average balance of total earning assets. |
14
2007 over 2006 change in net interest income | ||||||||||||||||
for the nine months ended September 30: | ||||||||||||||||
(in thousands) | ||||||||||||||||
Volume (1) | Rate (2) | Mix (3) | Total | |||||||||||||
Interest-earning assets:
|
||||||||||||||||
Loans
|
$ | 1,416 | $ | 252 | $ | 19 | $ | 1,687 | ||||||||
Investment securities
|
(622 | ) | 129 | (34 | ) | (527 | ) | |||||||||
Federal funds sold
|
(78 | ) | 21 | (10 | ) | (67 | ) | |||||||||
|
||||||||||||||||
Total interest income
|
716 | 402 | (25 | ) | 1,093 | |||||||||||
|
||||||||||||||||
|
||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||
NOW deposits
|
(30 | ) | (12 | ) | | (42 | ) | |||||||||
Money market deposits
|
(162 | ) | (147 | ) | 45 | (264 | ) | |||||||||
Savings deposits
|
(50 | ) | (98 | ) | 15 | (133 | ) | |||||||||
Time deposits
|
660 | 615 | 170 | 1,445 | ||||||||||||
Short-term borrowings
|
348 | 2 | 7 | 357 | ||||||||||||
Other interest-bearing liabilities
|
1 | 1 | | 2 | ||||||||||||
Junior subordinated debentures
|
| 28 | | 28 | ||||||||||||
|
||||||||||||||||
Total interest expense
|
767 | 389 | 237 | 1,393 | ||||||||||||
|
||||||||||||||||
Net interest income
|
$ | (51 | ) | $ | 13 | $ | (262 | ) | $ | (300 | ) | |||||
|
(1) | The volume change in net interest income represents the change in average balance divided by the previous periods rate. | |
(2) | The rate change in net interest income represents the change in rate multiplied by the previous periods average balance. | |
(3) | The mix change in net interest income represents the change in average balance multiplied by the change in rate. |
15
For the Nine Months | ||||||||||||||||
Ended September 30, | Dollar | Percentage | ||||||||||||||
2007 | 2006 | Change | Change | |||||||||||||
Service charges on deposit accounts
|
$ | 2,766 | $ | 2,731 | $ | 35 | 1.3 | % | ||||||||
Earnings on life insurance policies
|
311 | 291 | 20 | 6.9 | % | |||||||||||
Merchant processing income
|
221 | 242 | (21 | ) | -8.7 | % | ||||||||||
Investment services income
|
127 | 78 | 49 | 62.8 | % | |||||||||||
Official check fees
|
119 | 126 | (7 | ) | -5.6 | % | ||||||||||
Customer service fees
|
89 | 83 | 6 | 7.2 | % | |||||||||||
Loan commission and servicing fees
|
84 | 36 | 48 | 133.3 | % | |||||||||||
Federal Home Loan Bank dividends
|
82 | 76 | 6 | 7.9 | % | |||||||||||
Safe deposit box and night depository income
|
49 | 51 | (2 | ) | -3.9 | % | ||||||||||
Gain (loss) on sale of loans
|
46 | (4 | ) | 50 | 1250.0 | % | ||||||||||
Other deposit account fees
|
29 | 40 | (11 | ) | -27.5 | % | ||||||||||
Gain on sale of real estate and vehicles
|
24 | 6 | 18 | 300.0 | % | |||||||||||
Printed check fee income
|
23 | 38 | (15 | ) | -39.5 | % | ||||||||||
Other
|
25 | 59 | (34 | ) | -57.6 | % | ||||||||||
|
||||||||||||||||
Total non-interest income
|
$ | 3,995 | $ | 3,853 | $ | 142 | 3.7 | % | ||||||||
|
16
For the Nine Months | ||||||||||||||||
Ended September 30, | Dollar | Percentage | ||||||||||||||
2007 | 2006 | Change | Change | |||||||||||||
Salaries and employee benefits
|
$ | 8,142 | $ | 7,366 | $ | 776 | 10.5 | % | ||||||||
Occupancy and equipment
|
2,659 | 2,387 | 272 | 11.4 | % | |||||||||||
Professional fees
|
556 | 533 | 23 | 4.3 | % | |||||||||||
Outside service fees
|
487 | 443 | 44 | 9.9 | % | |||||||||||
Business development
|
400 | 405 | (5 | ) | -1.2 | % | ||||||||||
Advertising and shareholder relations
|
380 | 364 | 16 | 4.4 | % | |||||||||||
Director compensation
|
261 | 279 | (18 | ) | -6.5 | % | ||||||||||
Telephone and data communication
|
260 | 286 | (26 | ) | -9.1 | % | ||||||||||
Deposit premium amortization
|
226 | 226 | | | % | |||||||||||
Stationery and supplies
|
214 | 205 | 9 | 4.4 | % | |||||||||||
Armored car and courier
|
208 | 202 | 6 | 3.0 | % | |||||||||||
Postage
|
183 | 181 | 2 | 1.1 | % | |||||||||||
Insurance
|
131 | 129 | 2 | 1.6 | % | |||||||||||
Loan and collection expenses
|
122 | 111 | 11 | 9.9 | % | |||||||||||
Other
|
203 | 215 | (12 | ) | -5.6 | % | ||||||||||
|
||||||||||||||||
Total non-interest expense
|
$ | 14,432 | $ | 13,332 | $ | 1,100 | 8.3 | % | ||||||||
|
17
18
For the Three Months Ended September 30, 2007 | For the Three Months Ended September 30, 2006 | |||||||||||||||||||||||
Average Balance | Interest | Yield/ | Average Balance | Interest | Yield/ | |||||||||||||||||||
(Dollars in thousands) | (in thousands) | (in thousands) | Rate | (in thousands) | (in thousands) | Rate | ||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans (1) (2)
|
$ | 349,598 | $ | 6,898 | 7.83 | % | $ | 343,622 | $ | 6,837 | 7.89 | % | ||||||||||||
Investment securities (1)
|
59,321 | 579 | 3.87 | % | 81,513 | 741 | 3.61 | % | ||||||||||||||||
Federal funds sold
|
6,576 | 83 | 5.01 | % | 1,113 | 14 | 4.99 | % | ||||||||||||||||
|
||||||||||||||||||||||||
Total interest earning assets
|
415,495 | 7,560 | 7.22 | % | 426,248 | 7,592 | 7.07 | % | ||||||||||||||||
|
||||||||||||||||||||||||
Cash and due from banks
|
13,343 | 13,119 | ||||||||||||||||||||||
Other assets
|
32,358 | 33,114 | ||||||||||||||||||||||
|
||||||||||||||||||||||||
Total assets
|
$ | 461,196 | $ | 472,481 | ||||||||||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
NOW deposits
|
$ | 76,329 | 330 | 1.72 | % | $ | 88,326 | 463 | 2.08 | % | ||||||||||||||
Money market deposits
|
37,927 | 69 | 0.72 | % | 53,682 | 160 | 1.18 | % | ||||||||||||||||
Savings deposits
|
50,026 | 50 | 0.40 | % | 58,521 | 107 | 0.73 | % | ||||||||||||||||
Time deposits
|
126,353 | 1,415 | 4.44 | % | 90,585 | 831 | 3.64 | % | ||||||||||||||||
Short-term borrowings
|
2,262 | 29 | 5.09 | % | 5,137 | 69 | 5.33 | % | ||||||||||||||||
Other interest-bearing liabilities
|
304 | 6 | 7.83 | % | 289 | 6 | 8.24 | % | ||||||||||||||||
Junior subordinated debentures
|
10,310 | 213 | 8.20 | % | 10,310 | 215 | 8.27 | % | ||||||||||||||||
|
||||||||||||||||||||||||
Total interest-bearing liabilities
|
303,511 | 2,112 | 2.76 | % | 306,850 | 1,851 | 2.39 | % | ||||||||||||||||
|
||||||||||||||||||||||||
Non-interest bearing deposits
|
115,890 | 127,145 | ||||||||||||||||||||||
Other liabilities
|
4,549 | 4,350 | ||||||||||||||||||||||
Shareholders equity
|
37,246 | 34,136 | ||||||||||||||||||||||
|
||||||||||||||||||||||||
Total liabilities & equity
|
$ | 461,196 | $ | 472,481 | ||||||||||||||||||||
|
||||||||||||||||||||||||
Cost of funding interest-earning assets (3)
|
2.02 | % | 1.73 | % | ||||||||||||||||||||
Net interest income and margin (4)
|
$ | 5,448 | 5.20 | % | $ | 5,741 | 5.34 | % | ||||||||||||||||
|
(1) | Not computed on a tax-equivalent basis. | |
(2) | Net loan costs included in loan interest income for the three-month periods ended September 30, 2007 and 2006 were $51,000 and $177,000, respectively. | |
(3) |
Total interest expense divided by the average balance of total earning assets.
|
|
(4) | Net interest income divided by the average balance of total earning assets. |
19
2007 over 2006 change in net interest income | ||||||||||||||||
for the three months ended September 30: | ||||||||||||||||
(in thousands) | ||||||||||||||||
Volume (1) | Rate (2) | Mix (3) | Total | |||||||||||||
Interest-earning assets:
|
||||||||||||||||
Loans
|
$ | 119 | $ | (57 | ) | $ | (1 | ) | $ | 61 | ||||||
Investment securities
|
(202 | ) | 55 | (15 | ) | (162 | ) | |||||||||
Federal funds sold
|
69 | | | 69 | ||||||||||||
|
||||||||||||||||
Total interest income
|
(14 | ) | (2 | ) | (16 | ) | (32 | ) | ||||||||
|
||||||||||||||||
|
||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||
NOW deposits
|
(63 | ) | (81 | ) | 11 | (133 | ) | |||||||||
Money market deposits
|
(47 | ) | (62 | ) | 18 | (91 | ) | |||||||||
Savings deposits
|
(15 | ) | (49 | ) | 7 | (57 | ) | |||||||||
Time deposits
|
328 | 183 | 73 | 584 | ||||||||||||
Short-term borrowings
|
(39 | ) | (3 | ) | 2 | (40 | ) | |||||||||
Other interest-bearing liabilities
|
| | | | ||||||||||||
Junior subordinated debentures
|
| (2 | ) | | (2 | ) | ||||||||||
|
||||||||||||||||
Total interest expense
|
164 | (14 | ) | 111 | 261 | |||||||||||
|
||||||||||||||||
Net interest income
|
$ | (178 | ) | $ | 12 | $ | (127 | ) | $ | (293 | ) | |||||
|
(1) | The volume change in net interest income represents the change in average balance divided by the previous periods rate. | |
(2) | The rate change in net interest income represents the change in rate divided by the previous periods average balance. | |
(3) | The mix change in net interest income represents the change in average balance multiplied by the change in rate. |
20
For the Three Months | ||||||||||||||||
Ended September 30, | Dollar | Percentage | ||||||||||||||
2007 | 2006 | Change | Change | |||||||||||||
Service charges on deposit accounts
|
$ | 1,009 | $ | 945 | $ | 64 | 6.8 | % | ||||||||
Earnings on life insurance policies
|
105 | 100 | 5 | 5.0 | % | |||||||||||
Merchant processing income
|
94 | 111 | (17 | ) | -15.3 | % | ||||||||||
Investment services income
|
42 | 23 | 19 | 82.6 | % | |||||||||||
Official check fees
|
39 | 46 | (7 | ) | -15.2 | % | ||||||||||
Customer service fees
|
29 | 23 | 6 | 26.1 | % | |||||||||||
Federal Home Loan Bank dividends
|
26 | 28 | (2 | ) | -7.1 | % | ||||||||||
Loan commission and servicing fees
|
24 | (29 | ) | 53 | 182.8 | % | ||||||||||
Gain on sale of loans
|
19 | | 19 | 100.0 | % | |||||||||||
Safe deposit box and night depository income
|
14 | 15 | (1 | ) | -6.7 | % | ||||||||||
Other deposit account fees
|
8 | 12 | (4 | ) | -33.3 | % | ||||||||||
Printed check fee income
|
2 | 7 | (5 | ) | -71.4 | % | ||||||||||
(Loss) gain on sale of real estate and vehicles
|
(4 | ) | 4 | (8 | ) | -200.0 | % | |||||||||
Other
|
21 | 31 | (10 | ) | -32.3 | % | ||||||||||
|
||||||||||||||||
Total non-interest income
|
$ | 1,428 | $ | 1,316 | $ | 112 | 8.5 | % | ||||||||
|
21
For the Three Months | ||||||||||||||||
Ended September 30, | Dollar | Percentage | ||||||||||||||
2007 | 2006 | Change | Change | |||||||||||||
Salaries and employee benefits
|
$ | 2,675 | $ | 2,500 | $ | 175 | 7.0 | % | ||||||||
Occupancy and equipment
|
870 | 827 | 43 | 5.2 | % | |||||||||||
Professional fees
|
167 | 188 | (21 | ) | -11.2 | % | ||||||||||
Outside service fees
|
163 | 147 | 16 | 10.9 | % | |||||||||||
Business development
|
114 | 123 | (9 | ) | -7.3 | % | ||||||||||
Advertising and shareholder relations
|
102 | 122 | (20 | ) | -16.4 | % | ||||||||||
Telephone and data communication
|
91 | 89 | 2 | 2.2 | % | |||||||||||
Director compensation
|
87 | 104 | (17 | ) | -16.3 | % | ||||||||||
Deposit premium amortization
|
76 | 76 | | | % | |||||||||||
Armored car and courier
|
74 | 70 | 4 | 5.7 | % | |||||||||||
Stationery and supplies
|
62 | 65 | (3 | ) | -4.6 | % | ||||||||||
Postage
|
62 | 58 | 4 | 6.9 | % | |||||||||||
Insurance
|
47 | 45 | 2 | 4.4 | % | |||||||||||
Loan and collection expenses
|
35 | 31 | 4 | 12.9 | % | |||||||||||
Other
|
59 | 58 | 1 | 1.7 | % | |||||||||||
|
||||||||||||||||
Total non-interest expense
|
$ | 4,684 | $ | 4,503 | $ | 181 | 4.0 | % | ||||||||
|
22
For the Nine Months | ||||||||
Ended September 30, | ||||||||
(in thousands) | ||||||||
2007 | 2006 | |||||||
Balance at January 1,
|
$ | 3,917 | $ | 3,256 | ||||
|
||||||||
Charge-offs:
|
||||||||
Commercial and agricultural
|
(43 | ) | (126 | ) | ||||
Real estate mortgage
|
| | ||||||
Real estate construction
|
(46 | ) | | |||||
Consumer
|
(427 | ) | (349 | ) | ||||
|
||||||||
Total charge-offs
|
(516 | ) | (475 | ) | ||||
|
||||||||
|
||||||||
Recoveries:
|
||||||||
Commercial and agricultural
|
51 | 45 | ||||||
Real estate mortgage
|
| | ||||||
Real estate construction
|
| | ||||||
Consumer
|
175 | 179 | ||||||
|
||||||||
|
||||||||
Total recoveries
|
226 | 224 | ||||||
|
||||||||
|
||||||||
Net charge-offs
|
(290 | ) | (251 | ) | ||||
|
||||||||
|
||||||||
Provision for loan losses
|
500 | 900 | ||||||
|
||||||||
|
||||||||
Balance at September 30,
|
$ | 4,127 | $ | 3, 905 | ||||
|
||||||||
|
||||||||
Net charge-offs during the nine-month period to average loans
|
0.08 | % | 0.08 | % | ||||
Allowance for loan losses to total loans
|
1.17 | % | 1.12 | % |
23
24
September 30, 2007 | December 31, 2006 | |||||||||||||||
Amount | Ratio | Amount | Ratio | |||||||||||||
Tier 1 Leverage Ratio
|
||||||||||||||||
|
||||||||||||||||
Plumas Bancorp and Subsidiary
|
$ | 46,840 | 10.2 | % | $ | 45,206 | 9.5 | % | ||||||||
Minimum regulatory requirement
|
18,403 | 4.0 | % | 18,955 | 4.0 | % | ||||||||||
Plumas Bank
|
45,454 | 9.9 | % | 44,094 | 9.3 | % | ||||||||||
Minimum requirement for
Well-Capitalized institution
|
22,977 | 5.0 | % | 23,669 | 5.0 | % | ||||||||||
Minimum regulatory requirement
|
18,382 | 4.0 | % | 18,935 | 4.0 | % | ||||||||||
|
||||||||||||||||
Tier 1 Risk-Based Capital Ratio
|
||||||||||||||||
|
||||||||||||||||
Plumas Bancorp and Subsidiary
|
46,840 | 11.7 | % | 45,206 | 10.9 | % | ||||||||||
Minimum regulatory requirement
|
16,054 | 4.0 | % | 16,610 | 4.0 | % | ||||||||||
Plumas Bank
|
45,454 | 11.3 | % | 44,094 | 10.6 | % | ||||||||||
Minimum requirement for
Well-Capitalized institution
|
24,049 | 6.0 | % | 24,885 | 6.0 | % | ||||||||||
Minimum regulatory requirement
|
16,033 | 4.0 | % | 16,590 | 4.0 | % | ||||||||||
|
||||||||||||||||
Total Risk-Based Capital Ratio
|
||||||||||||||||
|
||||||||||||||||
Plumas Bancorp and Subsidiary
|
51,022 | 12.7 | % | 49,123 | 11.8 | % | ||||||||||
Minimum regulatory requirement
|
32,108 | 8.0 | % | 33,221 | 8.0 | % | ||||||||||
Plumas Bank
|
49,636 | 12.4 | % | 48,011 | 11.6 | % | ||||||||||
Minimum requirement for
Well-Capitalized institution
|
40,081 | 10.0 | % | 41,475 | 10.0 | % | ||||||||||
Minimum regulatory requirement
|
32,065 | 8.0 | % | 33,180 | 8.0 | % |
25
26
27
Table of Contents
28
29
30
31
32
Total Number
of Shares
Purchased as Part of
Maximum
Total
Publicly
Number of Shares
Number of
Average
Announced
That May Yet Be
Shares
Price Paid
Plans or
Purchased Under the
Period
Purchased
per Share (1)
Programs
Plans or Programs (2)
16,100
$
12.99
16,100
166,600
13,347
$
13.05
13,347
153,253
983
$
12.72
983
152,270
30,430
$
13.01
30,430
(1)
Includes commissions.
(2)
On January 22, 2007 the Company announced that its Board of Directors
authorized a common stock repurchase plan. The plan calls for the
repurchase of up to 250,000 shares, or approximately 5%, of the
Companys shares outstanding as of January 22, 2007.
Table of Contents
Articles of Incorporation as amended of Registrant included as
exhibit 3.1 to the Registrants Form S-4, File No. 333-84534, which
is incorporated by reference herein.
Bylaws of Registrant included as exhibit 3.2 to the Registrants
Form S-4, File No. 333-84534, which is incorporated by reference
herein.
Amendment of the Articles of Incorporation of Registrant dated
November 1, 2002, is included as exhibit 3.3 to the Registrants
10-Q for September 30, 2005, which is incorporated by this reference
herein.
Amendment of the Articles of Incorporation of Registrant dated
August 17, 2005, is included as exhibit 3.4 to the Registrants 10-Q
for September 30, 2005, which is incorporated by this reference
herein.
Specimen form of certificate for Plumas Bancorp included as exhibit
4 to the Registrants Form S-4, File No. 333-84534, which is
incorporated by reference herein.
Executive Salary Continuation Agreement of Andrew J. Ryback dated
August 23, 2005, is included as Exhibit 10.1 to the Registrants 8-K
filed on October 17, 2005, which is incorporated by this reference
herein.
Split Dollar Agreement of Andrew J. Ryback dated August 23, 2005, is
included as Exhibit 10.2 to the Registrants 8-K filed on October
17, 2005, which is incorporated by this reference herein.
Employment Agreement of Douglas N. Biddle dated January 1, 2006 is
included as Exhibit 10.5 to the Registrants 8-K filed on March 15,
2006, which is incorporated by this reference herein.
Executive Salary Continuation Agreement as amended of Douglas N.
Biddle dated June 2, 1994, is included as Exhibit 10.6 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.
Split Dollar Agreements of Douglas N. Biddle dated January 24, 2002,
is included as Exhibit 10.7 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.
Director Retirement Agreement of John Flournoy dated March 21, 2007,
is included as Exhibit 10.8 to Registrants 10-Q for March 31, 2007,
which is incorporated by this reference herein.
Executive Salary Continuation Agreement as amended of Dennis C.
Irvine dated June 2, 1994, is included as Exhibit 10.9 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.
Split Dollar Agreements of Dennis C. Irvine dated January 24, 2002,
is included as Exhibit 10.10 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.
Table of Contents
First Amendment to Executive Salary Continuation Agreement of Robert
T. Herr dated September 15, 2004, is included as Exhibit
10.11 to the Registrants 8-K filed on September 17, 2004, which is
incorporated by this reference herein.
Deferred Fee Agreement as amended of Jerry V. Kehr dated August 19,
1998, is included as Exhibit 10.13 to the Registrants 10-QSB for
June 30, 2002, which is incorporated by this reference herein.
Amended and Restated Director Retirement Agreement of Jerry V. Kehr
dated April 28, 2000, is included as Exhibit 10.14 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.
Consulting Agreement of Jerry V. Kehr dated May 10, 2000, is
included as Exhibit 10.15 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.
Deferred Fee Agreement of Jerry V. Kehr dated December 21, 2005 is
included as Exhibit 10.16 to the Registrants 8-K filed on March 15,
2006, which is incorporated by this reference herein.
Amended and Restated Director Retirement Agreement of Daniel E. West
dated May 10, 2000, is included as Exhibit 10.18 to the Registrants
10-QSB for June 30, 2002, which is incorporated by this reference
herein.
Consulting Agreement of Daniel E. West dated May 10, 2000, is
included as Exhibit 10.19 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.
Split Dollar Agreements of Robert T. Herr dated September 15, 2004,
is included as Exhibit 10.20 to the Registrants 8-K filed on
September 17, 2004, which is incorporated by this reference herein.
Amended and Restated Director Retirement Agreement of Alvin G.
Blickenstaff dated April 19, 2000, is included as Exhibit 10.21 to
the Registrants 10-QSB for June 30, 2002, which is incorporated by
this reference herein.
Consulting Agreement of Alvin G. Blickenstaff dated May 8, 2000, is
included as Exhibit 10.22 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.
Amended and Restated Director Retirement Agreement of Gerald W.
Fletcher dated May 10, 2000, is included as Exhibit 10.24 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.
Consulting Agreement of Gerald W. Fletcher dated May 10, 2000, is
included as Exhibit 10.25 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.
Amended and Restated Director Retirement Agreement of Arthur C.
Grohs dated May 9, 2000, is included as Exhibit 10.27 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.
Consulting Agreement of Arthur C. Grohs dated May 9, 2000, is
included as Exhibit 10.28 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.
Amended and Restated Director Retirement Agreement of Terrance J.
Reeson dated April 19, 2000, is included as Exhibit 10.33 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.
Consulting Agreement of Terrance J. Reeson dated May 10, 2000, is
included as Exhibit 10.34 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.
Deferred Fee Agreement of Thomas Watson dated March 3, 2001, is
included as Exhibit 10.39 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.
Table of Contents
Form of Indemnification Agreement, is included as Exhibit 10.41 to
the Registrants 10-QSB for June 30, 2002, which is incorporated by
this reference herein.
2001 Stock Option Plan as amended is included as exhibit 99.1 of the
Form S-8 filed July 23, 2002, File No. 333-96957, which is
incorporated by this reference herein.
Plumas Bank 401(k) Profit Sharing Plan as amended is included as
exhibit 99.1 of the Form S-8 filed February 14, 2003, File No.
333-103229, which is incorporated by this reference herein.
Executive Salary Continuation Agreement of Robert T. Herr dated June
4, 2002, is included as Exhibit 10.44 to the Registrants 10-Q for
March 31, 2003, which is incorporated by this reference herein.
1991 Stock Option Plan as amended is included as Exhibit 10.46 to
the Registrants 10-Q for September 30, 2004, which is incorporated
by this reference herein.
Specimen form of Incentive Stock Option Agreement under the 1991
Stock Option Plan is included as Exhibit 10.47 to the Registrants
10-Q for September 30, 2004, which is incorporated by this reference
herein.
Specimen form of Non-Qualified Stock Option Agreement under the 1991
Stock Option Plan is included as Exhibit 10.48 to the Registrants
10-Q for September 30, 2004, which is incorporated by this reference
herein.
Amended and Restated Plumas Bancorp Stock Option Plan is included as
Exhibit 10.49 to the Registrants 10-Q for September 30, 2006, which
is incorporated by this reference herein.
Director Retirement Agreement of Thomas Watson dated May 1, 2003, is
included as Exhibit 10.59 to the Registrants 10-Q for June 30,
2003, which is incorporated by this reference herein.
Consulting Agreement of Thomas Watson dated May 1, 2003, is included
as Exhibit 10.60 to the Registrants 10-Q for June 30, 2003, which
is incorporated by this reference herein.
Deferred Fee Agreement of Thomas Watson dated December 23, 2004, is
included as Exhibit 10.62 to the Registrants 8-K filed on January
6, 2005, which is incorporated by this reference herein.
Deferred Fee Agreement of Jerry V. Kehr dated December 24, 2004, is
included as Exhibit 10.63 to the Registrants 8-K filed on January
6, 2005, which is incorporated by this reference herein.
First Amendment to the Plumas Bank Amended and Restated Director
Retirement Agreement for Alvin Blickenstaff adopted on September 19,
2007, is included as Exhibit 10.64 to the Registrants 8-K filed on
September 25, 2007, which is incorporated by this reference herein.
First Amendment to the Plumas Bank Amended and Restated Director
Retirement Agreement for Arthur C. Grohs adopted on September 19,
2007, is included as Exhibit 10.65 to the Registrants 8-K filed on
September 25, 2007, which is incorporated by this reference herein.
First Amendment to the Plumas Bank Amended and Restated Director
Retirement Agreement for Jerry V. Kehr adopted on September 19,
2007, is included as Exhibit 10.66 to the Registrants 8-K filed on
September 25, 2007, which is incorporated by this reference herein.
First Amendment to the Plumas Bank Amended and Restated Director
Retirement Agreement for Terrance J. Reeson adopted on September 19,
2007, is included as Exhibit 10.67 to the Registrants 8-K filed on
September 25, 2007, which is incorporated by this reference herein.
Table of Contents
First Amendment to the Plumas Bank Amended and Restated Director
Retirement Agreement for Thomas Watson adopted on September 19,
2007, is included as Exhibit 10.68 to the Registrants 8-K filed on
September 25, 2007, which is incorporated by this reference herein.
First Amendment to the Plumas Bank Amended and Restated Director
Retirement Agreement for Daniel E. West adopted on September 19,
2007, is included as Exhibit 10.69 to the Registrants 8-K filed on
September 25, 2007, which is incorporated by this reference herein.
First Amendment to the Plumas Bank Amended and Restated Director
Retirement Agreement for Gerald W. Fletcher adopted on October 9,
2007
Computation of per share earnings appears in the attached
10-Q under Plumas Bancorp and Subsidiary Notes to
Consolidated Financial Statements as Footnote 5 Earnings
Per Share Computation.
Rule 13a-14(a) [Section 302] Certification of Principal
Financial Officer dated November 8, 2007.
Rule 13a-14(a) [Section 302] Certification of Principal
Executive Officer dated November 8, 2007.
Certification of Principal Financial Officer pursuant to 18
U.S.C. Section 1350, As Adopted Pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002 dated November 8, 2007.
Certification of Principal Executive Officer pursuant to 18
U.S.C. Section 1350, As Adopted Pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002 dated November 8, 2007.
Table of Contents
33
(Registrant)
/s/ Andrew J. Ryback
Executive Vice President Chief Financial Officer
/s/ Douglas N. Biddle
President and Chief Executive Officer
1.1.8a Unforeseeable Emergency means a severe financial hardship to the Director resulting from
an illness or accident of the Director, the Directors spouse, or the Directors dependent (as
defined in Section 152(a) of the Code), loss of the Directors property due to casualty, or
other similar extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Director.
|
2.2.2 | Payment of Benefit. The Company shall pay the annual benefit to the Director in twelve (12) equal monthly installments payable on the first day of each month commencing with the month following Termination of Service. The Company shall pay the annual benefit to the Director for twelve (12) years. | ||
Section 2.2.3 of the Agreement shall be deleted in its entirety. | |||
Section 2.3.2 of the Agreement shall be deleted in its entirety and replaced by the following: |
2.3.2 | Payment of Benefit. The Company shall pay the annual benefit to the Director in twelve (12) equal monthly installments payable on the first day of each month commencing with the month following Termination of Service. The Company shall pay the annual benefit to the Director for twelve (12) years. |
2.3.3 | Excess Parachute Payments . Notwithstanding any provision of this Agreement to the contrary, and to the extent allowed by Code Section 409A, if any distribution(s) made under this Section 2.3 would be treated as an excess parachute payment under Code Section 280G, the Company shall reduce such distribution(s) to the extent necessary to avoid treating the distribution(s) as an excess parachute payment. |
2.4 | Hardship Distribution. The Company may make a hardship distribution under the circumstances described in Section 2.4.1 below. Any such distribution shall require the adjustment described in Section 2.4.2 to any amounts to be paid under Sections 2.1, 2.2 or 2.3 or Article 3. |
2.4.1 | Application for and Amount of Hardship Distribution. If an Unforeseeable Emergency occurs, the Director may petition the Board to receive a distribution from the Agreement (a Hardship Distribution). The Board in its sole discretion may grant such petition. If granted, the Director shall receive, within sixty (60) days, a Hardship Distribution from the Agreement (i) only to the extent deemed necessary by the Board to remedy the Unforeseeable Emergency, plus an amount necessary to pay taxes reasonably anticipated as a result of the distribution; and |
(ii)after taking into account the extent to which such Unforeseeable Emergency is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Directors assets (to the extent the liquidation would not itself cause severe financial hardship). In any event, the maximum amount which may be paid out pursuant to this Section 2.4 is the amount the Company has accrued with respect to the Companys obligations hereunder as of the day that the Director petitioned the Board to receive a Hardship Distribution under this Section. | |||
2.4.2 | Benefit Adjustment. At the time of any Hardship Distribution, the amount the Company has accrued with respect to the Companys obligations hereunder shall be reduced by the amount of the Hardship Distribution and the benefits to be paid under Sections 2.1, 2.2 or 2.3 or Article 3 hereof shall reflect such reduced amount. |
2.5 | Restriction on Timing of Distributions. Notwithstanding any provision of this Agreement to the contrary, if the Director is considered a Specified Employee at Termination of Service under such procedures as established by the Company in accordance with Section 409A of the Code, benefit distributions that are made upon Termination of Service may not commence earlier than six (6) months after the date of such Termination of Service. Therefore, in the event this Section 2.5 is applicable to the Director, any distribution which would otherwise be paid to the Director within the first six months following the Termination of Service shall be accumulated and paid to the Director in a lump sum on the first day of the seventh month following the Termination of Service. All subsequent distributions shall be paid in the manner specified. | ||
2.6 | Distributions Upon Income Inclusion Under Section 409A of the Code. Upon the inclusion of any amount into the Directors income as a result of the failure of this non-qualified deferred compensation plan to comply with the requirements of Section 409A of the Code, to the extent such tax liability can be covered by the amount the Company has accrued with respect to the Companys obligations hereunder, a distribution shall be made as soon as is administratively practicable following the discovery of the plan failure. | ||
2.7 | Change in Form or Timing of Distributions. All changes in the form or timing of distributions hereunder must comply with the following requirements. The changes: |
(a) | may not accelerate the time or schedule of any distribution, except as provided in Section 409A of the Code and the regulations thereunder; | ||
(b) | must, for benefits distributable under Sections 2.1, 2.2 and 2.3, delay the commencement of distributions for a minimum of five (5) years from the date the first distribution was originally scheduled to be made; and | ||
(c) | must take effect not less than twelve (12) months after the election is made. |
3.2 | Death During Benefit Period. If the Director dies after the benefit payments have commenced under this Agreement but before receiving all such payments, the Company shall pay the remaining benefits to the Directors beneficiary at the same time and in the same manner they would have been paid to the Director had the Director lived. | ||
Article 7 of the Agreement shall be deleted in its entirety and replaced by the following: |
7.1 | Amendments. This Agreement may be amended only by a written agreement signed by the Company and the Director. However, the Company may unilaterally amend this Agreement to conform with written directives to the Company from its auditors or banking regulators or to comply with legislative changes or tax law, including without limitation Section 409A of the Code and any and all Treasury regulations and guidance promulgated thereunder. | ||
7.2 | Plan Termination Generally. The Company and the Director may terminate this Agreement at any time. The benefit hereunder shall be the amount the Company has accrued with respect to the Companys obligations hereunder. Except as provided in Section 7.3, the termination of this Agreement shall not cause a distribution of benefits under this Agreement. Rather, after such termination benefit distributions will be made at the earliest distribution event permitted under Article 2 or Article 3. | ||
7.3 | Plan Terminations Under Section 409A. Notwithstanding anything to the contrary in Section 7.2, if this Agreement terminates in the following circumstances: |
(a) | Within thirty (30) days before or twelve (12) months after a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the assets of the Company as described in Section 409A(2)(A)(v) of the Code, provided that all distributions are made no later than twelve (12) months following such termination of the Agreement and further provided that all the Companys arrangements which are substantially similar to the Agreement are terminated so the Director and all participants in the similar arrangements are required to receive all amounts of compensation deferred under the terminated arrangements within twelve (12) months of the termination of the arrangements; | ||
(b) | Upon the Companys dissolution or with the approval of a bankruptcy court provided that the amounts deferred under the Agreement are included in the |
Directors gross income in the latest of (i) the calendar year in which the Agreement terminates; (ii) the calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or (iii) the first calendar year in which the distribution is administratively practical; or | |||
(c) | Upon the Companys termination of this and all other non-account balance plans (as referenced in Section 409A of the Code or the regulations thereunder), provided that all distributions are made no earlier than twelve (12) months and no later than twenty-four (24) months following such termination, and the Company does not adopt any new non-account balance plans for a minimum of five (5) years following the date of such termination; |
8.9 | Compliance with Section 409A. This Agreement shall at all times be administered and the provisions of this Agreement shall be interpreted consistent with the requirements of Section 409A of the Code and any and all regulations thereunder, including such regulations as may be promulgated after the Effective Date of this Agreement. |
Director: | Plumas Bank | |||||||
|
||||||||
/s/ Gerald W. Fletcher
|
By | /s/ Daniel E. West | ||||||
|
||||||||
Gerald W. Fletcher | Title Chairman | |||||||
|
1. | I have reviewed this report on Form 10-Q of Plumas Bancorp; | ||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
c. | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
d. | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | ||
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date:
|
November 8, 2007 | /s/ Andrew Ryback | ||
|
||||
|
Andrew J. Ryback, Chief Financial Officer |
1. | I have reviewed this report on Form 10-Q of Plumas Bancorp; | ||
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | ||
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | ||
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | ||
c. | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | ||
d. | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | ||
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date:
|
November 8, 2007 | /s/ D. N. Biddle | ||
|
||||
|
Douglas N. Biddle, Chief Executive Officer |
1) | such Quarterly Report on Form 10-Q of the Company for the three months ended September 30, 2007, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | ||
2) | the information contained in such Quarterly Report on Form 10-Q of the Company for the three months ended September 30, 2007, fairly presents, in all material respects, the financial condition and results of operations of Plumas Bancorp. |
Date:
|
November 8, 2007 | /s/ Andrew Ryback | ||
|
||||
|
Andrew J. Ryback, Chief Financial Officer |
1) | such Quarterly Report on Form 10-Q of the Company for the three months ended September 30, 2007, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | ||
2) | the information contained in such Quarterly Report on Form 10-Q of the Company for the three months ended September 30, 2007, fairly presents, in all material respects, the financial condition and results of operations of Plumas Bancorp. |
Date:
|
November 8, 2007 | /s/ D. N. Biddle | ||
|
||||
|
Douglas N. Biddle, Chief Executive Officer |