Plumas Bancorp has reported earnings of $576,000 for the first quarter of 2008, a 39% decrease compared to $948,000 reported for the same period of 2007.
For the first quarter of 2008, diluted earnings per share were $0.12, a decrease of 37% compared to $0.19 for the first quarter of 2007. The net interest income before provision for loan losses totaled $5 million during the first quarter of 2008, a decrease of $499,000 or 9% as compared to the quarter ended March 31, 2007.
This was a result of a decrease in interest income of $797,000 primarily related to rate declines on variable rate loans. The net interest margin for the first quarter of 2008 was 4.96%, a decrease of 28 basis points from 5.24% during the first quarter of 2007.
Douglas Biddle, president and CEO of Plumas Bancorp, said: Although Plumas Bank has never been involved in sub-prime lending, we have experienced an increase in nonperforming loans as a consequence of the current economic environment. As a result, we have strengthened our loan loss reserves to properly address this situation.