RENO, Nev., Oct. 19, 2022 (GLOBE NEWSWIRE) -- Plumas Bancorp (Nasdaq:PLBC), the parent company of Plumas Bank, today announced earnings for the third quarter of 2022 of $7.2 million or $1.24 per share, an increase of $650 thousand from $6.6 million or $1.13 per share during the third quarter of 2021. Diluted earnings per share increased to $1.23 per share during the three months ended September 30, 2022, up from $1.12 per share during the quarter ended September 30, 2021.
For the nine months ended September 30, 2022, the Company reported net income of $18.6 million or $3.19 per share, an increase of $3.1 million from $15.5 million or $2.87 per share earned during the nine months ended September 30, 2021. Earnings per diluted share increased to $3.15 during the nine months ended September 30, 2022 up $0.32 from $2.83 during the first nine months of 2021. Earnings during 2022 set a record for any quarter or nine-month period in the Company's history.
Return on average assets was 1.72% during the current quarter, up from 1.71% during the third quarter of 2021. Return on average equity increased to 23.7% for the three months ended September 30, 2022, up from 19.6% during the third of 2021. Return on average assets was 1.52% during the nine months ended September 30, 2022, down from 1.58% during the nine months of 2021. Return on average equity increased to 20.1% for the nine months ended September 30, 2022, up from 18.3% during the first nine months of 2021.
Balance Sheet Highlights
September 30, 2022 compared to September 30, 2021
- Total assets increased by $82 million, or 5%, to $1.7 billion.
- Gross loans increased by $19 million, or 2%, to $858 million.
- Investment securities increased by $108 million, or 39%, to $383 million.
- Total deposits increased by $107 million, or 8%, to $1.5 billion.
- Non-performing assets decreased by $3.6 million or 66%, to $1.9 million
President's Comments
Andrew J. Ryback, director, president and chief executive officer of Plumas Bancorp and Plumas Bank stated, "The third quarter of 2022 resulted in record earnings mostly due to rising interest rates. Additionally, average interest earning assets grew by 11%. Non-performing assets to total assets at just 0.11% remain below regional and national peer averages. Plumas stands strong in the face of probable recession and continues to closely monitor the credit portfolio."
Recently, Plumas Bank was recognized by three leading financial industry groups:
- Plumas Bank has received awards for the past 8 years from CB Resources. The CB Top Ten reported that Plumas Bank ranked 25th in the nation in C-Corp $1 - 5 billion peer group for the 2nd Quarter of 2022. The CB Top Ten is a community bank performance scorecard that identifies the banks in the top 10 percent based on asset size and corporation type. Banks are ranked by the following key performance indicators: Asset Growth, Return on Average Assets, Return on Average Equity, Net Interest Margin, Efficiency Ratio, Non-Performing Assets, Non-Interest Bearing Deposits, and Non-interest Income.
- Piper Sandler Sm-All Stars Class of 2022 - Plumas Bancorp was named one of 35 publicly traded banks and thrifts to the Piper Sandler Sm-All Stars Class of 2022. Sm-All Stars identifies the highest quality, top performing small-cap banks and thrifts in the country. To earn Sm-All Star status, companies must have a market capitalization below $2.5 billion and demonstrate strong metrics with regard to growth, profitability, credit quality, and capital strength. This is the fourth time Plumas Bank has earned this award after previously being chosen in 2018, 2019 and 2020.
- Plumas Bank was ranked 8th in the nation in ICBA's Top Lenders for 2022 - Based on lending concentration and loan growth, Plumas Bank was ranked 8th in the nation for the $1 billion+ category for agricultural loans.
Ryback commented, "We are honored to be recognized by these prestigious financial industry organizations and realize that it is due to the commitment and diligence of our Board of Directors, executives, and team members as well as the loyalty and support of our clients that make these achievements possible."
Loans, Deposits, Investments and Cash
Gross loans, excluding loans held for sale, increased by $19 million, or 2%, from $839 million at September 30, 2021, to $858 million at September 30, 2022. Increases in loans included $55 million in commercial real estate loans, $16 million in construction loans, $6 million in residential real estate loans and $3 million in all other loans; these items were partially offset by decreases of $51 million in commercial loans and $10 million in agricultural loans. Excluding PPP loan activity, commercial loans would have increased by $8 million and gross loans would have increased by $78 million or 10%. PPP loans totaled $1 million at September 30, 2022, and $60 million at September 30, 2021. Unamortized loan fees net of unamortized loan costs on PPP loans totaled $52 thousand at September 30, 2022.
Beginning in 2020 we instituted a loan forbearance program to assist borrowers with managing cash flows disrupted due to COVID-19; we ended this program in the fourth quarter of 2021 and there are no loan balances on deferral related to this program at September 30, 2022.
On September 30, 2022, approximately 79% of the Company's loan portfolio was comprised of variable rate loans. The rates of interest charged on variable rate loans are set at specific increments in relation to the Company's lending rate or other indexes such as the published prime interest rate or U.S. Treasury rates and vary with changes in these indexes. The frequency in which variable rate loans reprice can vary from one day to several years. Loans indexed to the prime interest rate were approximately 23% of the Company's loan portfolio; these loans reprice within one day to three months of a change in the prime rate.
Total deposits increased by $107 million from $1.4 billion at September 30, 2021, to $1.5 billion at September 30, 2022. The increase in deposits includes increases of $68 million in demand deposits and $70 million in savings accounts. These increases were partially offset by declines of $20 million in money market accounts, and $11 million in time deposits. At September 30, 2022, 53% of the Company's deposits were in the form of non-interest bearing demand deposits. The Company has no brokered deposits.
Total investment securities increased by $108 million from $275 million at September 30, 2021, to $383 million at September 30, 2022. Excluding the effect of a $64 million increase in unrealized loss on investment securities, our investment security portfolio would have grown by $172 million. The Bank's investment security portfolio consists of debt securities issued by the US Government, US Government agencies, US Government sponsored agencies and municipalities. Cash and due from banks decreased by $39 million from $373 million at September 30, 2021, to $334 million at September 30, 2022.
Asset Quality
Nonperforming assets (which are comprised of nonperforming loans, other real estate owned ("OREO") and repossessed vehicle holdings) at September 30, 2022, were $1.9 million, down from $5.5 million at September 30, 2021. Nonperforming assets as a percentage of total assets decreased to 0.11% at September 30, 2022, down from 0.35% at September 30, 2021. OREO decreased by $200 thousand from $569 thousand at September 30, 2021, to $369 thousand at September 30, 2022. Nonperforming loans were $1.5 million at September 30, 2022, and $4.9 million at September 30, 2021. Nonperforming loans as a percentage of total loans decreased to 0.17% at September 30, 2022, down from 0.58% at September 30, 2021.
The provision for loan losses increased by $125 thousand from $875 thousand during the first nine months of 2021 to $1 million during the current period. Net charge-offs totaled $432 thousand and $472 thousand during the nine months ended September 30, 2022, and 2021, respectively. The allowance for loan losses totaled $10.9 million at September 30, 2022, and $10.3 million at September 30, 2021. The allowance for loan losses as a percentage of total loans increased from 1.23% at September 30, 2021, to 1.27% at September 30, 2022. Excluding PPP loans, the allowance for loan losses as a percentage of total loans at September 30, 2022, and 2021 was 1.27% and 1.32%, respectively.
Shareholders' Equity
Related mostly to an increase in accumulated other comprehensive loss, total shareholders' equity decreased by $23.1 million from $129.5 million at September 30, 2021, to $106.4 million at September 30, 2022. Excluding $42.3 million in accumulated other comprehensive loss at September 30, 2022, and $1.8 million in accumulated other comprehensive income at September 30, 2021, shareholders' equity would have increased by $21 million, or 16%, to $149 million. Increases in shareholders' equity include earnings during the twelve-month period totaling $24.1 million and stock option activity totaling $0.5 million. These items were offset by the payment of cash dividends totaling $3.6 million and an increase in accumulated other comprehensive loss of $44.1 million. The increase in accumulated other comprehensive loss resulted from an increase in the unrealized loss on our investment portfolio, net of tax of $45.2 million partially offset by an increase in the value of our interest rate swaps.
Net Interest Income and Net Interest Margin
Net interest income was $15.7 million for the three months ended September 30, 2022, an increase of $2.2 million from the same period in 2021. The increase in net interest income includes an increase of $2.1 million in interest income and a decrease of $30 thousand in interest expense. Interest and fees on loans, including loans held for sale, decreased by $916 thousand related to a decline of $2.3 million in fees net of costs on PPP loans partially offset by growth in the loan portfolio and an increase in yield on the portfolio. During the current quarter we recorded amortization of loan fees net of loan costs on PPP loans totaling $237 thousand. This compares to $2.5 million during the third quarter of 2021. This includes normal amortization on our PPP portfolio and the effect of PPP loan forgiveness.
Average loan balances decreased by $2 million, while the average yield on these loans decreased by 36 basis points from 5.71% during the third quarter of 2021 to 5.35% during the current quarter. The decrease in loan yield is directly related to the $2.3 million decrease in PPP fees. Excluding PPP loans, yield would have increased by 27 basis points mostly related to an increase in the rate earned on loans tied to the prime interest. The average prime interest rate increased by 210 basis points from 3.25% during the third quarter of 2021 to 5.35% during the current quarter. The average balance of loans held for sale decreased from $15.9 million during the three months ended September 30, 2021, to $2.8 million during the current quarter. The average yield on loans held for sale, all of which are tied to prime and reprice quarterly, increased from 5.48% to 7.05%.
Interest on investment securities increased by $1.4 million from the third quarter of 2021, related to an increase in average investment securities of $133 million to $388 million and an increase in yield on the investment portfolio of 81 basis points from 1.80% during the third quarter of 2021 to 2.61% during the current quarter. Interest on cash balances increased by $1.7 million related to both an increase of 213 basis points in the rate paid on these balances and an increase of $35 million in average cash balances. The rate paid on cash balances increased from 0.16% during the third quarter of 2021 to 2.29% during the current quarter mostly related to an increase in the rate paid on balances held at the Federal Reserve Bank. The average rate paid on Federal Reserve balances was 0.15% during the third quarter of 2021 and 2.25% during the current quarter.
Average interest earning assets during the three months ended September 30, 2022, totaled $1.6 billion, an increase of $157 million from the same period in 2021. The average yield on interest earning assets increased by 15 basis points to 4.07%. Net interest margin for the three months ended September 30, 2022, increased 17 basis points to 4.00%, up from 3.83% for the same period in 2021.
Net interest income for the nine months ended September 30, 2022, was $41.2 million, an increase of $7.2 million from the $34.0 million earned during the same period in 2021. Interest income increased by $7.3 million. Included in interest income during the current nine-month period were PPP fees net of costs of $1.2 million, a decrease of $3.7 million from $4.9 million during the nine months ended September 30, 2021. The average yield on loans, including loans held for sale, decreased by 19 basis points from 5.39% during the first nine months of 2021 to 5.20% during the current period related to the decrease in PPP fees.
Average interest earning assets during the current nine-month period totaled $1.6 billion, an increase of $303 million from the same period in 2021. This increase in average interest earning assets consisted of increases of $79 million in average loan and loans held for sale balances, $123 million in average investment securities and $101 million in average cash balances. The average yield on interest earning assets declined by 11 basis points to 3.68% mostly related to a decline in loan yield. Interest expense increased by $52 thousand. Net interest margin for the nine months ended September 30, 2022, decreased 10 basis points to 3.60%, down from 3.70% for the same period in 2021.
Non-Interest Income/Expense
Non-interest income increased by $553 thousand to $2.6 million during the current quarter up from $2.0 million during the three months ended September 30, 2021. The largest component of this increase was an increase in gain on sale of SBA loans of $353 thousand. We did not sell SBA loans during the second and third quarters of 2021 resulting in an inventory of loans held for sale of $31.3 million at December 31, 2021. During the current quarter we sold $10.7 million in guaranteed portions of SBA loans and ended the quarter with loans held for sale totaling $434 thousand.
During the nine months ended September 30, 2022, non-interest income totaled $8.9 million, an increase of $2.7 million from $6.2 million during the nine months ended September 30, 2021. The largest component of this increase was an increase in gain on sale of loans of $2.1 million. During the nine months ended September 30, 2022, we sold $48.9 million in guaranteed portions of SBA loans. This compares to sales of $7.4 million during the nine months ended September 30, 2021.
During the three months ended September 30, 2022, total non-interest expense increased by $1.6 million from $6.6 million during the third quarter of 2021 to $8.2 million during the current quarter. The largest component of this increase was an increase in salary and benefit expense of $1.4 million. Occupancy and equipment costs increased by $177 thousand. The largest component of this increase relates to an increased investment in software primarily related to our lending platform.
During the three months ended September 30, 2021, the Company qualified for the Employee Retention Credit (ERC). The ERC was made available under the Coronavirus Aid, Relief, and Economic Security Act and modified and extended under the Taxpayer Certainty and Disaster Tax Relief Act of 2020. We recorded an ERC of $1.2 million during the third quarter of 2021 as a reduction of salary and benefit expense.
During the nine months ended September 30, 2022, non-interest expense increased by $5.7 million. The largest components of this increase were $4.0 million in salary and benefit expense, $630 thousand in occupancy and equipment costs, $219 thousand in outside service fees and $171 thousand in advertising and shareholder relations. The largest components of the increase in salary and benefit expense were $2.3 million in ERC during 2021, $1.5 million in salary expense and $365 thousand in accrued bonus expense. The increase in occupancy and equipment expense includes $313 thousand related to our Yuba City branch. The largest components of the increase in outside service fees were $131 thousand in debit card and ATM processing costs and $91 thousand in human resources administration and payroll processing. The increase in advertising and shareholder costs mostly relates to an increase of $162 thousand in expense paid to an advertising agency which is primarily focused on building our brand in Northern Nevada.
Plumas Bancorp is headquartered in Reno, Nevada. Plumas Bancorp's principal subsidiary is Plumas Bank, which was founded in 1980. Plumas Bank is a full-service community bank headquartered in Quincy, California. The bank operates fourteen branches: twelve located in the California counties of Lassen, Modoc, Nevada, Placer, Plumas, Shasta and Sutter and two branches located in Nevada in the counties of Carson City and Washoe. The bank also operates three loan production offices located in the California counties of Butte and Placer and Klamath Falls, Oregon. 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
| PLUMAS BANCORP | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| (In thousands) | ||||||||||
| (Unaudited) | ||||||||||
| As of September 30, | ||||||||||
| 2022 | 2021 | Dollar Change | Percentage Change | |||||||
| ASSETS | ||||||||||
| Cash and due from banks | $ 334,124 | $ 372,993 | $ (38,869) | (10.4)% | ||||||
| Investment securities | 383,178 | 275,061 | 108,117 | 39.3% | ||||||
| Loans, net of allowance for loan losses | 849,703 | 828,611 | 21,092 | 2.5% | ||||||
| Loans held for sale | 434 | 28,364 | (27,930) | (98.5)% | ||||||
| Premises and equipment, net | 18,133 | 16,005 | 2,128 | 13.3% | ||||||
| Bank owned life insurance | 15,910 | 15,743 | 167 | 1.1% | ||||||
| Real estate acquired through foreclosure | 369 | 569 | (200) | (35.1)% | ||||||
| Goodwill | 5,502 | 5,502 | - | 100.0% | ||||||
| Accrued interest receivable and other assets | 45,718 | 28,632 | 17,086 | 59.7% | ||||||
| Total assets | $ 1,653,071 | $ 1,571,480 | $ 81,591 | 5.2% | ||||||
| LIABILITIES AND | ||||||||||
| SHAREHOLDERS' EQUITY | ||||||||||
| Deposits | $ 1,511,196 | $ 1,404,446 | $ 106,750 | 7.6% | ||||||
| Accrued interest payable and other liabilities | 25,115 | 27,191 | (2,076) | (7.6)% | ||||||
| Junior subordinated deferrable interest debentures | 10,310 | 10,310 | - | 0.0% | ||||||
| Total liabilities | 1,546,621 | 1,441,947 | 104,674 | 7.3% | ||||||
| Common stock | 27,240 | 26,705 | 535 | 2.0% | ||||||
| Retained earnings | 121,505 | 100,992 | 20,513 | 20.3% | ||||||
| Accumulated other comprehensive (loss) income, net | (42,295) | 1,836 | (44,131) | (2403.6)% | ||||||
| Shareholders' equity | 106,450 | 129,533 | (23,083) | (17.8)% | ||||||
| Total liabilities and shareholders' equity | $ 1,653,071 | $ 1,571,480 | $ 81,591 | 5.2% | ||||||
| PLUMAS BANCORP | ||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
| (In thousands, except per share data) | ||||||||||
| (Unaudited) | ||||||||||
| FOR THE THREE MONTHS ENDED SEPTEMBER 30, | 2022 | 2021 | Dollar Change | Percentage Change | ||||||
| Interest income | $ 16,005 | $ 13,869 | $ 2,136 | 15.4% | ||||||
| Interest expense | 289 | 319 | (30) | (9.4)% | ||||||
| Net interest income before provision for loan losses | 15,716 | 13,550 | 2,166 | 16.0% | ||||||
| Provision for loan losses | 300 | 250 | 50 | 20.0% | ||||||
| Net interest income after provision for loan losses | 15,416 | 13,300 | 2,116 | 15.9% | ||||||
| Non-interest income | 2,554 | 2,001 | 553 | 27.6% | ||||||
| Non-interest expense | 8,198 | 6,601 | 1,597 | 24.2% | ||||||
| Income before income taxes | 9,772 | 8,700 | 1,072 | 12.3% | ||||||
| Provision for income taxes | 2,544 | 2,122 | 422 | 19.9% | ||||||
| Net income | $ 7,228 | $ 6,578 | $ 650 | 9.9% | ||||||
| Basic earnings per share | $ 1.24 | $ 1.13 | $ 0.11 | 9.7% | ||||||
| Diluted earnings per share | $ 1.23 | $ 1.12 | $ 0.11 | 9.8% | ||||||
| PLUMAS BANCORP | ||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
| (In thousands, except per share data) | ||||||||||
| (Unaudited) | ||||||||||
| FOR THE NINE MONTHS ENDED SEPTEMBER 30, | 2022 | 2021 | Dollar Change | Percentage Change | ||||||
| Interest income | $ 42,037 | $ 34,786 | $ 7,251 | 20.8% | ||||||
| Interest expense | 878 | 826 | 52 | 6.3% | ||||||
| Net interest income before provision for loan losses | 41,159 | 33,960 | 7,199 | 21.2% | ||||||
| Provision for loan losses | 1,000 | 875 | 125 | 14.3% | ||||||
| Net interest income after provision for loan losses | 40,159 | 33,085 | 7,074 | 21.4% | ||||||
| Non-interest income | 8,868 | 6,231 | 2,637 | 42.3% | ||||||
| Non-interest expense | 23,904 | 18,225 | 5,679 | 31.2% | ||||||
| Income before income taxes | 25,123 | 21,091 | 4,032 | 19.1% | ||||||
| Provision for income taxes | 6,497 | 5,585 | 912 | 16.3% | ||||||
| Net income | $ 18,626 | $ 15,506 | $ 3,120 | 20.1% | ||||||
| Basic earnings per share | $ 3.19 | $ 2.87 | $ 0.32 | 11.1% | ||||||
| Diluted earnings per share | $ 3.15 | $ 2.83 | $ 0.32 | 11.3% | ||||||
| PLUMAS BANCORP | ||||||||||||||||||||||
| SELECTED FINANCIAL INFORMATION | ||||||||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 9/30/2022 | 6/30/2022 | 9/30/2021 | 9/30/2022 | 9/30/2021 | ||||||||||||||||||
| EARNINGS PER SHARE | ||||||||||||||||||||||
| Basic earnings per share | $ | 1.24 | $ | 0.97 | $ | 1.13 | $ | 3.19 | $ | 2.87 | ||||||||||||
| Diluted earnings per share | $ | 1.23 | $ | 0.96 | $ | 1.12 | $ | 3.15 | $ | 2.83 | ||||||||||||
| Weighted average shares outstanding | 5,845 | 5,843 | 5,800 | 5,837 | 5,397 | |||||||||||||||||
| Weighted average diluted shares outstanding | 5,895 | 5,909 | 5,885 | 5,911 | 5,477 | |||||||||||||||||
| Cash dividends paid per share 1 | $ | 0.16 | $ | 0.16 | $ | 0.14 | $ | 0.48 | $ | 0.42 | ||||||||||||
| PERFORMANCE RATIOS (annualized for the three months) | ||||||||||||||||||||||
| Return on average assets | 1.72 | % | 1.40 | % | 1.71 | % | 1.52 | % | 1.58 | % | ||||||||||||
| Return on average equity | 23.7 | % | 19.0 | % | 19.6 | % | 20.1 | % | 18.3 | % | ||||||||||||
| Yield on earning assets | 4.07 | % | 3.65 | % | 3.92 | % | 3.68 | % | 3.79 | % | ||||||||||||
| Rate paid on interest-bearing liabilities | 0.15 | % | 0.16 | % | 0.19 | % | 0.16 | % | 0.19 | % | ||||||||||||
| Net interest margin | 4.00 | % | 3.58 | % | 3.83 | % | 3.60 | % | 3.70 | % | ||||||||||||
| Noninterest income to average assets | 0.61 | % | 0.66 | % | 0.52 | % | 0.72 | % | 0.64 | % | ||||||||||||
| Noninterest expense to average assets | 1.96 | % | 1.98 | % | 1.72 | % | 1.95 | % | 1.86 | % | ||||||||||||
| Efficiency ratio 2 | 44.9 | % | 49.9 | % | 42.4 | % | 47.8 | % | 45.3 | % | ||||||||||||
| 9/30/2022 | 6/30/2022 | 9/30/2021 | 12/31/2021 | 12/31/2020 | ||||||||||||||||||
| CREDIT QUALITY RATIOS AND DATA | ||||||||||||||||||||||
| Allowance for loan losses | $ | 10,920 | $ | 10,919 | $ | 10,305 | $ | 10,352 | $ | 9,902 | ||||||||||||
| Allowance for loan losses as a percentage of total loans | 1.27 | % | 1.27 | % | 1.23 | % | 1.23 | % | 1.40 | % | ||||||||||||
| Allowance for loan losses as a percentage of total loans -excluding PPP loans | 1.27 | % | 1.28 | % | 1.32 | % | 1.29 | % | 1.55 | % | ||||||||||||
| Nonperforming loans | $ | 1,485 | $ | 1,551 | $ | 4,873 | $ | 4,863 | $ | 2,536 | ||||||||||||
| Nonperforming assets | $ | 1,872 | $ | 1,960 | $ | 5,465 | $ | 5,397 | $ | 2,970 | ||||||||||||
| Nonperforming loans as a percentage of total loans | 0.17 | % | 0.18 | % | 0.58 | % | 0.58 | % | 0.36 | % | ||||||||||||
| Nonperforming assets as a percentage of total assets | 0.11 | % | 0.12 | % | 0.35 | % | 0.33 | % | 0.27 | % | ||||||||||||
| Year-to-date net charge-offs | $ | 432 | $ | 133 | $ | 472 | $ | 675 | $ | 516 | ||||||||||||
| Year-to-date net charge-offs as a percentage of average | 0.07 | % | 0.03 | % | 0.08 | % | 0.09 | % | 0.07 | % | ||||||||||||
| loans (annualized) | ||||||||||||||||||||||
| CAPITAL AND OTHER DATA | ||||||||||||||||||||||
| Common shares outstanding at end of period | 5,849 | 5,845 | 5,811 | 5,817 | 5,182 | |||||||||||||||||
| Shareholders' equity | $ | 106,450 | $ | 116,158 | $ | 129,533 | $ | 134,082 | $ | 100,154 | ||||||||||||
| Book value per common share | $ | 18.20 | $ | 19.87 | $ | 22.29 | $ | 23.05 | $ | 19.33 | ||||||||||||
| Tangible common equity3 | $ | 99,651 | $ | 109,287 | $ | 122,439 | $ | 127,067 | $ | 99,432 | ||||||||||||
| Tangible book value per common share4 | $ | 17.04 | $ | 18.70 | $ | 21.07 | $ | 21.84 | $ | 19.19 | ||||||||||||
| Tangible common equity to total assets | 6.0 | % | 6.7 | % | 7.8 | % | 7.9 | % | 8.9 | % | ||||||||||||
| Gross loans to deposits | 56.8 | % | 58.5 | % | 59.7 | % | 58.3 | % | 72.9 | % | ||||||||||||
| PLUMAS BANK REGULATORY CAPITAL RATIOS | ||||||||||||||||||||||
| Tier 1 Leverage Ratio | 8.9 | % | 8.7 | % | 8.6 | % | 8.4 | % | 9.2 | % | ||||||||||||
| Common Equity Tier 1 Ratio | 14.8 | % | 14.4 | % | 14.1 | % | 14.4 | % | 14.2 | % | ||||||||||||
| Tier 1 Risk-Based Capital Ratio | 14.8 | % | 14.4 | % | 14.1 | % | 14.4 | % | 14.2 | % | ||||||||||||
| Total Risk-Based Capital Ratio | 15.9 | % | 15.5 | % | 15.3 | % | 15.5 | % | 15.4 | % | ||||||||||||
| (1) The Company paid a quarterly cash dividend of 16 cents per share on February 15, 2022, May 16, 2022, and August 15, 2022, and a quarterly cash dividend of 14 cents per share on February 15, 2021, May 17, 2021, August 16, 2021 and November 15, 2021. | ||||||||||||||||||||||
| (2) Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income). | ||||||||||||||||||||||
| (3) Tangible common equity is defined as common equity less goodwill and core deposit intangibles. | ||||||||||||||||||||||
| (4) Tangible common book value per share is defined as tangible common equity divided by common shares outstanding. | ||||||||||||||||||||||
| PLUMAS BANCORP | ||||||||||||||||||
| SELECTED FINANCIAL INFORMATION | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| The following table presents for the three-month periods indicated the distribution of consolidated average assets, liabilities and shareholders' equity. | ||||||||||||||||||
| For the Three Months Ended | For the Three Months Ended | |||||||||||||||||
| 9/30/2022 | 9/30/2021 | |||||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||
| Interest-earning assets: | ||||||||||||||||||
| Loans (2) (3) | $ | 863,132 | $ | 11,637 | 5.35 | % | $ | 860,980 | $ | 12,384 | 5.71 | % | ||||||
| Loans held for sale | 2,814 | 50 | 7.05 | % | 15,846 | 219 | 5.48 | % | ||||||||||
| Investment securities | 279,342 | 1,811 | 2.57 | % | 173,039 | 714 | 1.64 | % | ||||||||||
| Non-taxable investment securities (1) | 108,508 | 741 | 2.71 | % | 81,995 | 443 | 2.14 | % | ||||||||||
| Interest-bearing deposits | 305,526 | 1,766 | 2.29 | % | 270,655 | 109 | 0.16 | % | ||||||||||
| Total interest-earning assets | 1,559,322 | 16,005 | 4.07 | % | 1,402,515 | 13,869 | 3.92 | % | ||||||||||
| Cash and due from banks | 32,934 | 61,373 | ||||||||||||||||
| Other assets | 70,665 | 59,386 | ||||||||||||||||
| Total assets | $ | 1,662,921 | $ | 1,523,274 | ||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Money market deposits | 251,427 | 55 | 0.09 | % | 250,034 | 95 | 0.15 | % | ||||||||||
| Savings deposits | 410,496 | 89 | 0.09 | % | 326,097 | 67 | 0.08 | % | ||||||||||
| Time deposits | 58,179 | 39 | 0.27 | % | 67,505 | 66 | 0.39 | % | ||||||||||
| Total deposits | 720,102 | 183 | 0.10 | % | 643,636 | 228 | 0.14 | % | ||||||||||
| Junior subordinated debentures | 10,310 | 89 | 3.42 | % | 10,310 | 90 | 3.46 | % | ||||||||||
| Other interest-bearing liabilities | 10,842 | 17 | 0.62 | % | 13,575 | 1 | 0.03 | % | ||||||||||
| Total interest-bearing liabilities | 741,254 | 289 | 0.15 | % | 667,521 | 319 | 0.19 | % | ||||||||||
| Non-interest-bearing deposits | 789,218 | 709,896 | ||||||||||||||||
| Other liabilities | 11,635 | 12,862 | ||||||||||||||||
| Shareholders' equity | 120,814 | 132,995 | ||||||||||||||||
| Total liabilities & equity | $ | 1,662,921 | $ | 1,523,274 | ||||||||||||||
| Cost of funding interest-earning assets (4) | 0.07 | % | 0.09 | % | ||||||||||||||
| Net interest income and margin (5) | $ | 15,716 | 4.00 | % | $ | 13,550 | 3.83 | % | ||||||||||
| (1) Not computed on a tax-equivalent basis. | ||||||||||||||||||
| (2) Average nonaccrual loan balances of $1.6 million for 2022 and $6.2 million for 2021 are included in average loan balances for computational purposes. | ||||||||||||||||||
| (3) Net fees included in loan interest income for the three-month periods ended September 30, 2022 and 2021 were $50 thousand and $2.2 million, respectively. | ||||||||||||||||||
| (4) Total annualized interest expense divided by the average balance of total earning assets. | ||||||||||||||||||
| (5) Annualized net interest income divided by the average balance of total earning assets. | ||||||||||||||||||
| PLUMAS BANCORP | ||||||||||||||||||
| SELECTED FINANCIAL INFORMATION | ||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| The following table presents for the three-month periods indicated the distribution of consolidated average assets, liabilities and shareholders' equity. | ||||||||||||||||||
| For the Nine Months Ended | For the Nine Months Ended | |||||||||||||||||
| 9/30/2022 | 9/30/2021 | |||||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||||
| Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||
| Interest-earning assets: | ||||||||||||||||||
| Loans (2) (3) | $ | 847,043 | $ | 32,933 | 5.20 | % | $ | 769,102 | $ | 31,029 | 5.39 | % | ||||||
| Loans held for sale | 11,307 | 485 | 5.73 | % | 10,522 | 441 | 5.60 | % | ||||||||||
| Investment securities | 244,380 | 4,124 | 2.26 | % | 152,116 | 1,921 | 1.69 | % | ||||||||||
| Non-taxable investment securities (1) | 101,344 | 1,900 | 2.51 | % | 71,067 | 1,182 | 2.22 | % | ||||||||||
| Interest-bearing deposits | 324,172 | 2,595 | 1.07 | % | 222,900 | 213 | 0.13 | % | ||||||||||
| Total interest-earning assets | 1,528,246 | 42,037 | 3.68 | % | 1,225,707 | 34,786 | 3.79 | % | ||||||||||
| Cash and due from banks | 45,329 | 39,581 | ||||||||||||||||
| Other assets | 66,667 | 44,630 | ||||||||||||||||
| Total assets | $ | 1,640,242 | $ | 1,309,918 | ||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| Money market deposits | 256,337 | 178 | 0.09 | % | 212,115 | 222 | 0.14 | % | ||||||||||
| Savings deposits | 397,445 | 256 | 0.09 | % | 288,236 | 203 | 0.09 | % | ||||||||||
| Time deposits | 61,405 | 127 | 0.28 | % | 49,900 | 140 | 0.38 | % | ||||||||||
| Total deposits | 715,187 | 561 | 0.10 | % | 550,251 | 565 | 0.14 | % | ||||||||||
| Junior subordinated debentures | 10,310 | 267 | 3.46 | % | 10,310 | 255 | 3.31 | % | ||||||||||
| Other interest-bearing liabilities | 11,601 | 50 | 0.58 | % | 14,660 | 6 | 0.05 | % | ||||||||||
| Total interest-bearing liabilities | 737,098 | 878 | 0.16 | % | 575,221 | 826 | 0.19 | % | ||||||||||
| Non-interest-bearing deposits | 767,181 | 611,422 | ||||||||||||||||
| Other liabilities | 11,824 | 10,048 | ||||||||||||||||
| Shareholders' equity | 124,139 | 113,227 | ||||||||||||||||
| Total liabilities & equity | $ | 1,640,242 | $ | 1,309,918 | ||||||||||||||
| Cost of funding interest-earning assets (4) | 0.08 | % | 0.09 | % | ||||||||||||||
| Net interest income and margin (5) | $ | 41,159 | 3.60 | % | $ | 33,960 | 3.70 | % | ||||||||||
| (1) Not computed on a tax-equivalent basis. | ||||||||||||||||||
| (2) Average nonaccrual loan balances of $3.3 million for 2022 and $4.2 million for 2021 are included in average loan balances for computational purposes. | ||||||||||||||||||
| (3) Net fees included in loan interest income for the nine-month periods ended September 30, 2022 and 2021 were $561 thousand and $4.4 million, respectively. | ||||||||||||||||||
| (4) Total annualized interest expense divided by the average balance of total earning assets. | ||||||||||||||||||
| (5) Annualized net interest income divided by the average balance of total earning assets. | ||||||||||||||||||
| PLUMAS BANCORP | ||||||||||||
| SELECTED FINANCIAL INFORMATION | ||||||||||||
| (Dollars in thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| The following table presents the components of non-interest income for the three-month periods ended September 30, 2022 and 2021. | ||||||||||||
| For the Three Months Ended | ||||||||||||
| September 30, | ||||||||||||
| 2022 | 2021 | Dollar Change | Percentage Change | |||||||||
| Interchange income | $ | 864 | $ | 839 | $ | 25 | 3.0 | % | ||||
| Service charges on deposit accounts | 666 | 636 | 30 | 4.7 | % | |||||||
| Gain on sale of loans, net | 353 | - | 353 | 100.0 | % | |||||||
| Loan servicing fees | 220 | 200 | 20 | 10.0 | % | |||||||
| Earnings on life insurance policies | 99 | 104 | (5 | ) | (4.81 | )% | ||||||
| Other | 352 | 222 | 130 | 58.6 | % | |||||||
| Total non-interest income | $ | 2,554 | $ | 2,001 | $ | 553 | 27.6 | % | ||||
| The following table presents the components of non-interest expense for the three-month periods ended September 30, 2022 and 2021. | ||||||||||||
| For the Three Months Ended | ||||||||||||
| September 30, | ||||||||||||
| 2022 | 2021 | Dollar Change | Percentage Change | |||||||||
| Salaries and employee benefits | $ | 4,380 | $ | 2,940 | $ | 1,440 | 49.0 | % | ||||
| Occupancy and equipment | 1,220 | 1,043 | 177 | 17.0 | % | |||||||
| Outside service fees | 1,007 | 1,101 | (94 | ) | (8.5 | )% | ||||||
| Professional fees | 314 | 246 | 68 | 27.6 | % | |||||||
| Advertising and shareholder relations | 194 | 154 | 40 | 26.0 | % | |||||||
| Telephone and data communication | 190 | 206 | (16 | ) | (7.8 | )% | ||||||
| Armored car and courier | 183 | 130 | 53 | 40.8 | % | |||||||
| Director compensation and expense | 154 | 132 | 22 | 16.7 | % | |||||||
| Business development | 130 | 95 | 35 | 36.8 | % | |||||||
| Amortization of Core Deposit Intangible | 72 | 83 | (11 | ) | (13.3 | )% | ||||||
| Loan collection expenses | 56 | 113 | (57 | ) | (50.4 | )% | ||||||
| Deposit insurance | 48 | 128 | (80 | ) | (62.5 | )% | ||||||
| Other | 250 | 230 | 20 | 8.7 | % | |||||||
| Total non-interest expense | $ | 8,198 | $ | 6,601 | $ | 1,597 | 24.2 | % | ||||
| PLUMAS BANCORP | ||||||||||||
| SELECTED FINANCIAL INFORMATION | ||||||||||||
| (Dollars in thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| The following table presents the components of non-interest income for the nine-month periods ended September 30, 2022 and 2021. | ||||||||||||
| For the Nine Months Ended | ||||||||||||
| September 30, | ||||||||||||
| 2022 | 2021 | Dollar Change | Percentage Change | |||||||||
| Gain on sale of loans, net | $ | 2,688 | $ | 591 | $ | 2,097 | 354.8 | % | ||||
| Interchange income | 2,478 | 2,367 | 111 | 4.7 | % | |||||||
| Service charges on deposit accounts | 1,835 | 1,743 | 92 | 5.3 | % | |||||||
| Loan servicing fees | 642 | 623 | 19 | 3.0 | % | |||||||
| Earnings on life insurance policies | 281 | 279 | 2 | 0.7 | % | |||||||
| Other | 944 | 628 | 316 | 50.3 | % | |||||||
| Total non-interest income | $ | 8,868 | $ | 6,231 | $ | 2,637 | 42.3 | % | ||||
| The following table presents the components of non-interest expense for the nine-month periods ended September 30, 2022 and 2021. | ||||||||||||
| For the Nine Months Ended | ||||||||||||
| September 30, | ||||||||||||
| 2022 | 2021 | Dollar Change | Percentage Change | |||||||||
| Salaries and employee benefits | $ | 12,700 | $ | 8,694 | $ | 4,006 | 46.1 | % | ||||
| Occupancy and equipment | 3,468 | 2,838 | 630 | 22.2 | % | |||||||
| Outside service fees | 2,937 | 2,718 | 219 | 8.1 | % | |||||||
| Professional fees | 930 | 1,039 | (109 | ) | (10.5 | )% | ||||||
| Telephone and data communication | 572 | 536 | 36 | 6.7 | % | |||||||
| Armored car and courier | 498 | 355 | 143 | 40.3 | % | |||||||
| Advertising and shareholder relations | 496 | 325 | 171 | 52.6 | % | |||||||
| Director compensation and expense | 429 | 329 | 100 | 30.4 | % | |||||||
| Deposit insurance | 420 | 290 | 130 | 44.8 | % | |||||||
| Business development | 372 | 222 | 150 | 67.6 | % | |||||||
| Amortization of Core Deposit Intangible | 216 | 167 | 49 | 29.3 | % | |||||||
| Loan collection expenses | 199 | 207 | (8 | ) | (3.9 | )% | ||||||
| Other | 667 | 505 | 162 | 32.1 | % | |||||||
| Total non-interest expense | $ | 23,904 | $ | 18,225 | $ | 5,679 | 31.2 | % | ||||
| PLUMAS BANCORP | ||||||||||||
| SELECTED FINANCIAL INFORMATION | ||||||||||||
| (Dollars in thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| The following table shows the distribution of loans by type at September 30, 2022 and 2021. | ||||||||||||
| Percent of Loans in Each Category to Total Loans | Percent of Loans in Each Category to Total Loans | |||||||||||
| Balance at End of Period | Balance at End of Period | |||||||||||
| 9/30/2022 | 9/30/2022 | 9/30/2021 | 9/30/2021 | |||||||||
| Commercial | $ | 73,227 | 8.5 | % | $ | 124,254 | 14.8 | % | ||||
| Agricultural | 124,894 | 14.6 | % | 134,638 | 16.0 | % | ||||||
| Real estate - residential | 15,999 | 1.9 | % | 10,139 | 1.2 | % | ||||||
| Real estate - commercial | 457,624 | 53.3 | % | 402,921 | 48.0 | % | ||||||
| Real estate - construction & land | 55,511 | 6.5 | % | 39,085 | 4.7 | % | ||||||
| Equity Lines of Credit | 34,568 | 4.0 | % | 33,254 | 4.0 | % | ||||||
| Auto | 91,425 | 10.7 | % | 90,439 | 10.8 | % | ||||||
| Other | 4,728 | 0.5 | % | 4,213 | 0.5 | % | ||||||
| Total Gross Loans | $ | 857,976 | 100 | % | $ | 838,943 | 100 | % | ||||
| The following table shows the distribution of deposits by type at September 30, 2022 and 2021. | ||||||||||||
| Percent of Deposits in Each Category to Total Deposits | Percent of Deposits in Each Category to Total Deposits | |||||||||||
| Balance at End of Period | Balance at End of Period | |||||||||||
| 9/30/2022 | 9/30/2022 | 9/30/2021 | 9/30/2021 | |||||||||
| Non-interest bearing | $ | 795,880 | 52.7 | % | $ | 728,021 | 51.8 | % | ||||
| Money Market | 245,902 | 16.3 | % | 265,440 | 18.9 | % | ||||||
| Savings | 414,039 | 27.4 | % | 344,236 | 24.5 | % | ||||||
| Time | 55,375 | 3.6 | % | 66,749 | 4.8 | % | ||||||
| Total Deposits | $ | 1,511,196 | 100 | % | $ | 1,404,446 | 100 | % | ||||
