Plumas Bancorp Reports Record Earnings for Year Ended December 31, 2023
RENO, Nev., Jan. 17, 2024 (GLOBE NEWSWIRE) -- Plumas Bancorp (Nasdaq: PLBC), the parent company of Plumas Bank, today announced record earnings for the year ended December 31, 2023. For the twelve months ended December 31, 2023, the Company reported net income of $29.8 million or $5.08 per share, an increase of $3.3 million, or 13% from $26.4 million or $4.53 per share earned during 2022. Earnings per diluted share increased to $5.02 during the twelve months ended December 31, 2023, up $0.55 from $4.47 during 2022.
Earnings during the fourth quarter of 2023 totaled $7.5 million or $1.28 per share, a decrease of $297,000, or 4% from $7.8 million or $1.34 per share during the fourth quarter of 2022. Diluted earnings per share decreased to $1.27 per share during the three months ended December 31, 2023, down from $1.32 per share during the quarter ended December 31, 2022.
Return on average assets was 1.88% during the twelve months ended December 31, 2023, up from 1.61% during 2022. Return on average equity increased to 23.4% for the twelve months ended December 31, 2023, up from 21.9% during 2022. Return on average assets was 1.87% during the three months ended December 31, 2023 and 1.88% during the three months ended December 31, 2022. Return on average equity decreased to 23.9% for the three months ended December 31, 2023, down from 27.9% during the fourth quarter of 2022.
*Balance Sheet Highlights
**December 31, 2023 compared to December 31, 2022*
· Cash and due from banks declined by $98 million to $86 million.
· Gross loans, excluding loans held for sale, increased by $47 million, or 5%, to $959 million.
· Investment securities increased by $44 million, or 10%, to $489 million.
· Deposits declined by $124 million, or 9% to $1.3 billion.
· Total borrowings increased by $80 million to $90 million.
· Shareholders’ equity increased by $28 million, or 24%, to $147 million.
*President’s Comments*
Andrew J. Ryback, director, president and chief executive officer of Plumas Bancorp and Plumas Bank, stated, “As you know, the last year and a half has been a period of rapidly rising rates. This rising rate environment, coupled with another Fed policy, that of quantitative tightening, has resulted in reductions to the money supply and the impairment of banks to generate new deposits and fund new loans. In response, we have invested in retooling our lending system and processes for enhanced efficiency and decision making. This change will position us well for future loan growth. As for deposits, we remain disciplined in protecting our lower cost of funds but have offered Time deposit specials so that we can compete for new deposits.
Rapidly rising rates have also put pressure on variable-rate borrowers, creating some elevated loan loss risk in the banking industry. At Plumas, however, we do not expect significant losses because criticized assets are being proactively addressed with advanced preparation of solutions and collaborative monitoring for potential challenges. Additionally, non-performing loans are well-collateralized. In the fourth quarter we terminated our indirect auto loan program. Ending this program, which was our lowest yielding loan segment, also improved our loan loss risk profile since this program had historically higher charge-off rates. Terminating this program also improved our consumer compliance risk profile.
Another current industry challenge is that of margin compression. Fortunately, at Plumas, our extremely low cost of funds coupled with higher yielding loans has resulted in margin expansion rather than the more typical margin compression experienced by most banks.
The higher rate environment presented some opportunities that we took advantage of during 2023. One of those opportunities involved harvesting a significant gain from an interest rate swap while locking in a lower cost borrowing. We also developed a sale leaseback strategy which we expect to implement in the first quarter of 2024 and which will provide an opportunity to restructure our investment portfolio by divesting lower yielding securities and replacing them with higher yielding securities. This possible restructuring of our investment portfolio has the potential to enhance the bank’s interest income streams for years to come.
Looking forward, the Fed is signaling some rate decreases in the coming year which we anticipate will result in improved demand for loans. We also anticipate stabilization of deposit balances as clients may be less likely to self-fund with savings and more likely to borrow with rates declining. As the banking environment for community banks improves, we expect to continue to out-perform the industry and will explore avenues for strategic opportunities that align with our long-term growth objectives.”
“We would like to thank our clients, communities, employees, and investors for their continued support which empowers Plumas Bank to be Here. FOR GOOD.,” Ryback concluded.
*Loans, Deposits, Investments and Cash *
Gross loans, excluding loans held for sale, increased by $47 million, or 5%, from $912 million at December 31, 2022, to $959 million at December 31, 2023. Increases in loans included $28 million in commercial real estate loans, $14 million in construction loans, $7 million in agricultural loans, $2 million in equity lines of credit, and $1 million in automobile loans; these items were partially offset by decreases of $3 million in residential real estate loans and $2 million in commercial loans.
On December 31, 2023, approximately 78% 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 at which variable rate loans reprice can vary from one day to several years. The largest portion of variable rate loans are variable rate commercial real estate loans which predominantly reprice every five years and are indexed to the 5-year Treasury. Loans indexed to the prime interest rate were approximately 20% of the Company’s loan portfolio; these loans reprice within one day to three months of a change in the prime rate.
Total deposits decreased by $124 million to $1.3 billion at December 31, 2023. The decrease in deposits includes decreases of $74 million in demand deposits, $69 million in savings, and $24 million in money market accounts deposits. Partially offsetting these decreases was an increase in time deposit of $43 million. We attribute much of the decrease to the current interest rate environment as we have seen some deposits leave for higher rates and some customers reluctant to borrow to fund operating expense and instead have drawn down their excess deposit balances. Beginning in April 2023 we began offering a time deposit promotion offering 7-month and 11-month time deposits at an interest rate of 4%. Effective June 30, 2023 we discontinued this promotion which generated $46 million in deposits. However, during the fourth quarter we allowed those customers who had promotional time deposits to renew those deposits at similar terms. At December 31, 2023, 52% 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 $44 million from $445 million at December 31, 2022, to $489 million at December 31, 2023. 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 $98 million to $86 million at December 31, 2023.
*Asset Quality and CECL*
Nonperforming assets (which are comprised of nonperforming loans, other real estate owned (“OREO”) and repossessed vehicle holdings) at December 31, 2023 were $5.3 million, up from $1.2 million at December 31, 2022. Nonperforming assets as a percentage of total assets increased to 0.33% at December 31, 2023 up from 0.07% at December 31, 2022. OREO increased to $357,000 at December 31, 2023 and represented one loan. There was no OREO outstanding at December 31, 2022. Nonperforming loans were $4.8 million at December 31, 2023, and $1.2 million at December 31, 2022. The largest increase in nonperforming loans was related to agricultural loans to one borrower totaling $2.1 million. These loans are well secured. Nonperforming loans as a percentage of total loans increased to 0.50% at December 31, 2023, up from 0.13% at December 31, 2022.
On January 1, 2023, the Company adopted ASU 2016-03 Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology. This is referred to as the current expected credit loss (CECL) methodology. Upon adoption we recorded an increase in the allowance for credit losses of $529,000 and an increase in the reserve for unfunded commitments of $258,000. The decline in equity, net of tax, related to these two adjustments totaled $554,000. During the year ended December 31, 2023 we recorded a provision for credit losses of $2,775,000 consisting of a provision for loan losses of $2,575,000 and an increase in the reserve for unfunded commitments of $200,000. As time progresses the results of economic conditions will require CECL model assumption inputs to change and further refinements to the estimation process may also be identified.
Net charge-offs totaled $954,000 and $935,000 during the years ended December 31, 2023 and 2022, respectively. The allowance for credit losses totaled $12.9 million at December 31, 2023 and $10.7 million at December 31, 2022. The allowance for credit losses as a percentage of total loans increased from 1.18% at December 31, 2022 to 1.34% at December 31, 2023.
The following tables present the activity in the allowance for credit losses and the reserve for unfunded commitments during the years ended December 31, 2023 and 2022 (in thousands).
Allowance for Credit Losses
December 31, 2023
December 31, 2022
Balance, beginning of period $ 10,717 $ 10,352
Impact of CECL adoption 529 -
Provision charged to operations 2,575 1,300
Losses charged to allowance (1,802 ) (1,461 )
Recoveries 848 526
Balance, end of period $ 12,867 $ 10,717
Reserve for Unfunded Commitments
December 31, 2023
December 31, 2022
Balance, beginning of period $ 341 $ 341
Impact of CECL adoption 258 -
Provision charged to operations 200 -
Balance, end of period $ 799 $ 341
*
Borrowings*
The Company is eligible to participate in the Bank Term Lending Program. The Federal Reserve Board, on March 12, 2023, announced the creation of a new Bank Term Funding Program (BTFP). The BTFP offers loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral. These assets are valued at par. At December 31, 2023, the Company had outstanding borrowings under the BTFP totaling $80 million, secured by $107 million in par value of securities pledged as collateral under the BTFP. This borrowing is payable on December 18, 2024, and accrues interest at the rate of 4.96%. Borrowings under the BTFP can be prepaid without penalty. Interest expense for the three and 12 months ended December 31, 2023 on the BTFP borrowing totaled $527,000.
*Shareholders’ Equity *
Shareholders’ equity increased by $28.3 million from $119.0 million at December 31, 2022 to $147.3 million at December 31, 2023. The $28.3 million increase was related to net income during 2023, of $29.8 million, a decline in accumulated other comprehensive loss of $4.3 million and stock option and restricted stock activity of $661,000 partially offset by shareholder dividends of $5.9 million and $554,000 related to the cumulative change from adoption of ASU 2016-13.
*Liquidity*
The Company manages its liquidity to provide the ability to generate funds to support asset growth, meet deposit withdrawals (both anticipated and unanticipated), fund customers' borrowing needs and satisfy maturity of short-term borrowings. The Company’s liquidity needs are managed using assets or liabilities, or both. On the asset side, in addition to cash and due from banks, the Company maintains an investment portfolio which includes unpledged U.S. Government-sponsored agency securities that are classified as available-for-sale. On the liability side, liquidity needs are managed by offering competitive rates on deposit products and the use of established lines of credit.
The Company is a member of the FHLB and can borrow up to $215 million from the FHLB secured by commercial and residential mortgage loans with carrying values totaling $396 million. The Company is also eligible to participate in the BTFP as noted previously. In addition to its FHLB borrowing line and the BTFP, the Company has unsecured short-term borrowing agreements with two of its correspondent banks in the amounts of $50 million and $20 million. There were no outstanding borrowings to the FHLB or the correspondent banks at December 31, 2023 and December 31, 2022.
The Company estimates that it has approximately $416 million in uninsured deposits. Of this amount, $85 million represents deposits that are collateralized such as deposits of states, municipalities and tribal accounts.
Management believes that the Company’s available sources of funds, including borrowings, will provide adequate liquidity for its operations for the foreseeable future.
*Net Interest Income and Net Interest Margin*
*Year ended December 31, 2023*
Net interest income for the year ended December 31, 2023 was $69.8 million, an increase of $11.3 million from the $58.5 million earned during 2022. The increase in net interest income includes an increase of $14.8 million in interest income partially offset by an increase of $3.5 million in interest expense. Interest and fees on loans, including loans held for sale, increased by $9.3 million related to growth in the loan portfolio and an increase in yield on the portfolio. Net loan fees/costs declined from net fees of $234,000 during 2022 to net costs of $1.3 million during 2023. This decline is mostly related to a decline in fees earned on PPP loans. The average yield on loans, including loans held for sale, increased by 61 basis points from 5.28% during 2022 to 5.89% during 2023. The average prime rate increased from 4.86% in 2022 to 8.20% in 2023.
Interest on investment securities increased by $6.1 million from 2022, related to an increase in average investment securities of $100 million to $462 million and an increase in yield on the investment portfolio from 2.52% during 2022 to 3.29% during 2023. Interest on interest-earning cash balances decreased by $0.5 million related to a decrease in average interest-earning cash balances partially offset by an increase in the rate earned on these balances. The rate paid on interest-earning cash balances increased from 1.61% during 2022 to 5.05% 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 1.76% during 2022 and 5.1% during 2023. Average interest-earning cash balances declined from $305 million during 2022 to $87 million during 2023 related to a decline in average deposits and increases in average loans and investment securities.
Average interest earning assets during 2023 totaled $1.5 billion, a decrease of $50 million from 2022. This decrease in average interest earning assets resulted from a decline in average interest-earning cash balances of $218 million, mostly offset by increases of $68 million in average loan balances and $100 million in average investment securities. The average yield on interest earning assets increased by 113 basis points to 5.03%, related to increases in market rates.
Interest expense increased from $1.2 million during 2022 to $4.8 million during 2023 related to an increase in rate paid on interest bearing liabilities. The average rate paid on interest bearing liabilities increased from 0.17% during 2022 to 0.67% in 2023 related mainly to an increase in market interest rates and the effect of the 4% time deposit promotion.
Net interest margin for the year ended December 31, 2023 increased 89 basis points to 4.71%, up from 3.82% during 2022.
*Three months ended December 31, 2023*
Net interest income was $17.7 million for the three months ended December 31, 2023, an increase of $316,000 from the same period in 2022. The increase in net interest income includes an increase of $1.8 million in interest income partially offset by an increase of $1.5 million in interest expense. Interest and fees on loans, including loans held for sale, increased by $2.4 million related to growth in the loan portfolio and an increase in yield on the portfolio. Net loan costs were $368,000 and $326,000 during the three months periods ending December 31, 2023 and 2022, respectively.
Including loans held for sale, average loan balances increased by $71 million, while the average yield on these loans increased by 57 basis points from 5.50% during the fourth quarter of 2022 to 6.07% during the current quarter. The increase in loan yield includes the effect of an increase in market rates during 2023. The average prime interest rate increased from 6.82% during the fourth quarter of 2022 to 8.50% during the current quarter.
Interest on investment securities increased by $695 thousand from the fourth quarter of 2022, related to an increase in average investment securities of $31 million to $442 million and an increase in yield on the investment portfolio from 3.00% during the fourth quarter of 2022 to 3.41% during the current quarter. Interest on interest-earning cash balances decreased by $1.2 million related to a decrease in average interest-earning cash balances partially offset by an increase in the rate earned on these balances. The rate paid on interest-earning cash balances increased from 3.72% during the fourth quarter of 2022 to 5.39% 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 3.72% during the fourth quarter of 2022 and 5.40% during the current quarter. Average interest-earning cash balances declined from $248 million during the fourth quarter of 2022 to $81 million in the current quarter related to a decline in average deposits and increases in loans and investments.
Average interest earning assets during the three months ended December 31, 2023 totaled $1.5 billion, a decrease of $66 million from the same period in 2022. The average yield on interest earning assets increased 69 basis points to 5.24%, up from 4.55% for the same period in 2022.
Interest expense increased from $370,000 during the three months ended December 31, 2022 to $1.9 million during 2023 related mostly to an increase in rate paid on interest bearing liabilities. The average rate paid on interest bearing liabilities increased from 0.20% during 2022 to 1.02% in 2023 related mainly to an increase in market interest rates, the effect of the 4% time deposit promotion and the effect of the BTFP borrowings.
Net interest margin for the three months ended December 31, 2023 increased 29 basis points to 4.74%, up from 4.45% for the same period in 2022.
*Non-Interest Income/Expense*
*Year ended December 31, 2023*
During 2023, non-interest income totaled $10.7 million, a decrease of $328,000 from $11.0 million during the twelve months ended December 31, 2022. The largest component of this decrease was a decline in gain on sale of SBA 7(a) loans of $2.5 million from $2.7 million during the twelve months ended December 31, 2022 to $234,000 during the current period. We did not sell SBA 7(a) 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 2022 we sold $50.5 million in guaranteed portions of SBA 7(a) loans. This compares to $5.3 million in sales during the current period. Partially offsetting the decline in SBA gains was a gain of $1.7 million on termination of our interest rate swaps during the first quarter of 2023. In addition, service charges on deposit accounts increased by $325,000. This was mostly related to our Yuba City, California branch acquired in the acquisition of Feather River Bancorp in 2021. During most of 2022 we waived service charges on deposit accounts at the Yuba City Branch.
During 2023, non-interest expense increased by $4.9 million to $37.5 million. The largest components of this increase were $2.9 million in salary and benefit expense, $692,000 in occupancy and equipment costs, $439,000 in outside service fees and $268,000 in advertising and shareholder relations. The largest single components of the increase in salary and benefit expense were a $1.5 million increase in salary expense and a $1.2 million reduction in the deferral of loan origination expense. We attribute much of the increase in salary expense to two factors. Merit and promotional salary increases and employee termination costs which included $115,000 related to the termination of our automobile loan program. We have seen a reduction in loan demand given the current economic environment, especially in SBA 7(a) loans tied to the prime interest rate resulting in the reduction in the deferral of loan origination costs. Occupancy and equipment costs increased by $692,000, a considerable portion of which relates to snow removal and other costs attributable to an unusually harsh winter in our service area and to our new Chico, California branch. The increase in outside service fees was spread among several different categories, none of which exceeded $100,000. The increase in advertising costs reflects an increase in our budgeted advertising program, with an emphasis on Northern Nevada growth opportunities.
*Three months ended December 31, 2023*
During the three months ended December 31, 2023, and 2022, non-interest income totaled $2.3 million and $2.2 million, respectively. The largest increase was $96,000 in service charges on deposit accounts.
During the three months ended December 31, 2023, total non-interest expense increased by $1.1 million from $8.7 million during the fourth quarter of 2022 to $9.8 million during the current quarter. The largest components of this increase were increases in salary and benefit expense of $522 thousand and an increase of $215 thousand in occupancy and equipment costs. Included in the increase in occupancy and equipment costs was $55 thousand related to our Chico, California branch.
--------------------
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 fifteen branches: thirteen located in the California counties of Butte, 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 two loan production offices located in Auburn, California 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.
Contact: Jamie Huynh
Investor Relations
Plumas Bancorp
5525 Kietzke Lane Ste. 100
Reno, NV 89511
775.786.0907 x8908
investorrelations@plumasbank.com*PLUMAS BANCORP*
*CONDENSED CONSOLIDATED BALANCE SHEETS*
(In thousands)
(Unaudited) *As of December 31,* *2023* *2022* *Dollar
Change* *Percentage
Change*
*ASSETS*
Cash and due from banks $ 85,655 $ 183,426 $ (97,771) (53.3)%
Investment securities 489,181 444,703 44,478 10.0%
Loans, net of allowance for loan losses 948,604 903,968 44,636 4.9%
Loans held for sale - 2,301 (2,301) (100.0)%
Premises and equipment, net 18,948 18,100 848 4.7%
Bank owned life insurance 16,110 16,020 90 0.6%
Real estate acquired through foreclosure 357 - 357 100.0%
Goodwill 5,502 5,502 - 0.0%
Accrued interest receivable and other assets 46,059 47,024 (965) (2.1)%
Total assets $ 1,610,416 $ 1,621,044 $ (10,628) (0.7)%
*LIABILITIES AND SHAREHOLDERS’ EQUITY*
Deposits $ 1,333,655 $ 1,457,809 $ (124,154) (8.5)%
Accrued interest payable and other liabilities 39,444 33,921 5,523 16.3%
Borrowings 90,000 - 90,000 100.0%
Junior subordinated deferrable interest debentures - 10,310 (10,310) (100.0)%
Total liabilities 1,463,099 1,502,040 (38,941) (2.6)%
Common stock 28,033 27,372 661 2.4%
Retained earnings 151,748 128,388 23,360 18.2%
Accumulated other comprehensive loss, net (32,464) (36,756) 4,292 11.7%
Shareholders’ equity 147,317 119,004 28,313 23.8%
Total liabilities and shareholders’ equity $ 1,610,416 $ 1,621,044 $ (10,628) (0.7)%
*PLUMAS BANCORP*
*CONDENSED CONSOLIDATED STATEMENTS OF INCOME*
(In thousands, except per share data)
(Unaudited)
*FOR THE YEAR ENDED DECEMBER 31,* *2023* *2022* *Dollar
Change* *Percentage
Change*
Interest income $ 74,592 $ 59,758 $ 14,834 24.8%
Interest expense 4,798 1,249 3,549 284.1%
Net interest income before provision for credit losses 69,794 58,509 11,285 19.3%
Provision for credit losses 2,775 1,300 1,475 113.5%
Net interest income after provision for credit losses 67,019 57,209 9,810 17.1%
Non-interest income 10,722 11,050 (328) (3.0)%
Non-interest expense 37,530 32,590 4,940 15.2%
Income before income taxes 40,211 35,669 4,542 12.7%
Provision for income taxes 10,435 9,225 1,210 13.1%
Net income $ 29,776 $ 26,444 $ 3,332 12.6%
Basic earnings per share $ 5.08 $ 4.53 $ 0.55 12.1%
Diluted earnings per share $ 5.02 $ 4.47 $ 0.55 12.3%
*PLUMAS BANCORP*
*CONDENSED CONSOLIDATED STATEMENTS OF INCOME*
(In thousands, except per share data)
(Unaudited)
*FOR THE THREE MONTHS ENDED DECEMBER 31,* *2023* *2022* *Dollar
Change* *Percentage
Change*
Interest income $ 19,540 $ 17,721 $ 1,819 10.3%
Interest expense 1,873 370 1,503 406.2%
Net interest income before provision for credit losses 17,667 17,351 316 1.8%
Provision for credit losses 100 300 (200) (66.7)%
Net interest income after provision for credit losses 17,567 17,051 516 3.0%
Non-interest income 2,342 2,181 161 7.4%
Non-interest expense 9,767 8,686 1,081 12.4%
Income before income taxes 10,142 10,546 (404) (3.8)%
Provision for income taxes 2,621 2,728 (107) (3.9)%
Net income $ 7,521 $ 7,818 $ (297) (3.8)%
Basic earnings per share $ 1.28 $ 1.34 $ (0.06) (4.5)%
Diluted earnings per share $ 1.27 $ 1.32 $ (0.05) (3.8)%
*PLUMAS BANCORP*
*SELECTED FINANCIAL INFORMATION*
(Dollars in thousands, except per share data)
(Unaudited) *Year Ended* *Three Months Ended* *12/31/2023* *12/31/2022* *12/31/2021* *12/31/2023* *12/31/2022*
*EARNINGS PER SHARE*
Basic earnings per share $ 5.08 $ 4.53 $ 3.82 $ 1.28 $ 1.34
Diluted earnings per share $ 5.02 $ 4.47 $ 3.76 $ 1.27 $ 1.32
Weighted average shares outstanding 5,863 5,840 5,502 5,871 5,849
Weighted average diluted shares outstanding 5,934 5,912 5,583 5,939 5,916
Cash dividends paid per share ^1 $ 1.00 $ 0.64 $ 0.56 $ 0.25 $ 0.16
*PERFORMANCE RATIOS (annualized for the three months)*
Return on average assets 1.88 % 1.61 % 1.52 % 1.87 % 1.88 %
Return on average equity 23.4 % 21.9 % 17.8 % 23.9 % 27.9 %
Yield on earning assets 5.03 % 3.90 % 3.72 % 5.24 % 4.55 %
Rate paid on interest-bearing liabilities 0.67 % 0.17 % 0.19 % 1.02 % 0.20 %
Net interest margin 4.71 % 3.82 % 3.63 % 4.74 % 4.45 %
Noninterest income to average assets 0.68 % 0.67 % 0.63 % 0.58 % 0.52 %
Noninterest expense to average assets 2.36 % 1.98 % 1.88 % 2.43 % 2.09 %
Efficiency ratio ^2 46.6 % 46.9 % 46.8 % 48.8 % 44.5 %
*Year Ended**
* *12/31/2023* *12/31/2022* *12/31/2021*
*CREDIT QUALITY RATIOS AND DATA*
Allowance for credit losses $ 12,867 $ 10,717 $ 10,352
Allowance for credit losses as a percentage of total loans 1.34% 1.18% 1.23%
Allowance for credit losses as a percentage of total loans -
excluding PPP loans 1.34% 1.18% 1.29%
Nonperforming loans $ 4,820 $ 1,172 $ 4,863
Nonperforming assets $ 5,315 $ 1,190 $ 5,397
Nonperforming loans as a percentage of total loans 0.50% 0.13% 0.58%
Nonperforming assets as a percentage of total assets 0.33% 0.07% 0.33%
Year-to-date net charge-offs $ 954 $ 935 $ 675
Year-to-date net charge-offs as a percentage of average loans 0.10% 0.11% 0.09%
*CAPITAL AND OTHER DATA*
Common shares outstanding at end of period 5,872 5,850 5,817
Shareholders' equity $ 147,317 $ 119,004 $ 134,082
Book value per common share $ 25.09 $ 20.34 $ 23.05
Tangible common equity^3 $ 140,823 $ 112,273 $ 127,067
Tangible book value per common share^4 $ 23.98 $ 19.19 $ 21.84
Tangible common equity to total assets 8.7% 6.9% 7.9%
Gross loans to deposits 71.9% 62.6% 58.3%
*PLUMAS BANK REGULATORY CAPITAL RATIOS*
Tier 1 Leverage Ratio 10.8% 9.2% 8.4%
Common Equity Tier 1 Ratio 15.7% 14.7% 14.4%
Tier 1 Risk-Based Capital Ratio 15.7% 14.7% 14.4%
Total Risk-Based Capital Ratio 16.9% 15.7% 15.5%
(1) The Company paid a quarterly cash dividends of $0.25 per share on February 15, 2023, May 15, 2023 , August 15, 2023 and November 15, 2023 and a quarterly cash dividend of $0.16 per share on February 15, 2022, May 16, 2022, August 15, 2022 and November 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, liabilites and shareholders' equity. * *For the Three Months Ended* *For the Three Months Ended* *12/31/2023* *12/31/2022* *Average* *Yield/* *Average* *Yield/* *Balance* *Interest* *Rate * *Balance* *Interest* *Rate *
*Interest-earning assets:*
Loans ^(2) (3) $ 957,289 $ 14,636 6.07 % $ 885,467 $ 12,261 5.49 %
Loans held for sale - - - % 1,247 25 7.95 %
Investment securities 324,340 2,884 3.53 % 301,319 2,285 3.01 %
Non-taxable investment securities^ (1) 117,433 918 3.10 % 109,366 822 2.98 %
Interest-bearing deposits 81,172 1,102 5.39 % 248,487 2,328 3.72 %
Total interest-earning assets 1,480,234 19,540 5.24 % 1,545,886 17,721 4.55 %
Cash and due from banks 26,565 26,250
Other assets 85,445 78,634
Total assets $ 1,592,244 $ 1,650,770
*Interest-bearing liabilities:*
Money market deposits 221,600 420 0.75 % 249,935 108 0.17 %
Savings deposits 350,412 189 0.21 % 408,825 118 0.11 %
Time deposits 90,337 610 2.68 % 51,928 36 0.28 %
Total deposits 662,349 1,219 0.73 % 710,688 262 0.15 %
Borrowings 50,000 641 5.09 % - - - %
Junior subordinated debentures - - - % 10,310 91 3.50 %
Other interest-bearing liabilities 19,603 13 0.26 % 14,480 17 0.47 %
Total interest-bearing liabilities 731,952 1,873 1.02 % 735,478 370 0.20 %
Non-interest-bearing deposits 717,726 791,430
Other liabilities 17,786 12,699
Shareholders' equity 124,780 111,163
Total liabilities & equity $ 1,592,244 $ 1,650,770
Cost of funding interest-earning assets ^(4) 0.50 % 0.10 %
Net interest income and margin ^(5) $ 17,667 4.74 % $ 17,351 4.45 %
(1) Not computed on a tax-equivalent basis.
(2) Average nonaccrual loan balances of $2.8 million for 2023 and $1.3 million for 2022 are included in average loan balances for computational purposes.
(3) Net costs included in loan interest income for the three-month periods ended December 31, 2023 and 2022 were $368 thousand and $326 thousand, 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 years indicated the distribution of consolidated average assets, liabilites and shareholders' equity.* *For the Year Ended* *For the Year Ended* *12/31/2023* *12/31/2022* *Average* *Yield/* *Average* *Yield/* *Balance* *Interest* *Rate * *Balance* *Interest* *Rate *
*Interest-earning assets:*
Loans ^(2) (3) $ 933,464 $ 54,950 5.89 % $ 856,728 $ 45,194 5.28 %
Loans held for sale 533 49 9.19 % 8,771 510 5.81 %
Investment securities 338,941 11,525 3.40 % 258,732 6,409 2.48 %
Non-taxable investment securities^ (1) 123,002 3,681 2.99 % 103,366 2,722 2.63 %
Interest-bearing deposits 86,897 4,387 5.05 % 305,095 4,923 1.61 %
Total interest-earning assets 1,482,837 74,592 5.03 % 1,532,692 59,758 3.90 %
Cash and due from banks 26,100 40,520
Other assets 78,212 69,683
Total assets $ 1,587,149 $ 1,642,895
*Interest-bearing liabilities:*
Money market deposits 227,819 1,367 0.60 % 254,723 284 0.11 %
Savings deposits 375,377 795 0.21 % 400,314 376 0.09 %
Time deposits 74,570 1,568 2.10 % 59,016 163 0.28 %
Total deposits 677,766 3,730 0.55 % 714,053 823 0.12 %
Borrowings 17,945 896 4.99 % - - - %
Junior subordinated debentures 2,268 141 6.22 % 10,310 359 3.48 %
Other interest-bearing liabilities 18,576 31 0.17 % 12,327 67 0.54 %
Total interest-bearing liabilities 716,555 4,798 0.67 % 736,690 1,249 0.17 %
Non-interest-bearing deposits 726,191 773,293
Other liabilities 17,419 12,044
Shareholders' equity 126,984 120,868
Total liabilities & equity $ 1,587,149 $ 1,642,895
Cost of funding interest-earning assets ^(4) 0.32 % 0.08 %
Net interest income and margin ^(5) $ 69,794 4.71 % $ 58,509 3.82 %
(1) Not computed on a tax-equivalent basis.
(2) Average nonaccrual loan balances of $3.0 million for 2023 and $2.8 million for 2022 are included in average loan balances for computational purposes.
(3) Net costs (fees) included in loan interest income for the years ended December 31, 2023 and 2022 were $1.3 million and ($234) thousand, 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 December 31, 2023 and 2022.* *For the Three Months Ended* *December 31,* *2023* *2022* *Dollar
Change* *Percentage
Change*
Interchange income $ 961 $ 922 $ 39 4.2 %
Service charges on deposit accounts 719 623 96 15.4 %
Loan servicing fees 214 251 (37 ) (14.7 )%
FHLB Dividends 130 88 42 47.7 %
Earnings on life insurance policies 104 109 (5 ) (4.6 )%
Gain on sale of loans, net - 7 (7 ) (100.0 )%
Other 214 181 33 18.2 %
Total non-interest income $ 2,342 $ 2,181 $ 161 7.4 %
*The following table presents the components of non-interest expense for the three-month periods ended December 31, 2023 and 2022.* *For the Three Months Ended* *December 31,* *2023* *2022* *Dollar
Change* *Percentage
Change*
Salaries and employee benefits $ 5,273 $ 4,751 $ 522 11.0 %
Occupancy and equipment 1,357 1,142 215 18.8 %
Outside service fees 1,151 1,120 31 2.8 %
Professional fees 404 352 52 14.8 %
Advertising and shareholder relations 248 177 71 40.1 %
Armored car and courier 209 177 32 18.1 %
Telephone and data communication 200 198 2 1.0 %
Deposit insurance 185 108 77 71.3 %
Director compensation and expense 160 177 (17 ) (9.6 )%
Business development 158 134 24 17.9 %
Loan collection expenses 115 75 40 53.3 %
Amortization of Core Deposit Intangible 57 68 (11 ) (16.2 )%
Other 250 207 43 20.8 %
Total non-interest expense $ 9,767 $ 8,686 $ 1,081 12.4 %
*PLUMAS BANCORP*
*SELECTED FINANCIAL INFORMATION* (Dollars in thousands)
(Unaudited)
*The following table presents the components of non-interest income for the years ended December 31, 2023 and 2022.* *For the Year Ended* *December 31,* *2023* *2022* *Dollar
Change* *Percentage
Change*
Interchange income $ 3,419 $ 3,401 $ 18 0.5 %
Service charges on deposit accounts 2,789 2,464 325 13.2 %
Gain on termination of swaps 1,707 - 1,707 100.0 %
Loan servicing fees 900 893 7 0.8 %
FHLB Dividends 418 293 125 42.7 %
Earnings on life insurance policies 417 391 26 6.6 %
Gain on sale of loans, net 234 2,696 (2,462 ) (91.3 )%
Other 838 912 (74 ) (8.1 )%
Total non-interest income $ 10,722 $ 11,050 $ (328 ) (3.0 )%
*The following table presents the components of non-interest expense for the years ended December 31, 2023 and 2022.* *For the Year Ended* *December 31,* *2023* *2022* *Dollar
Change* *Percentage
Change*
Salaries and employee benefits $ 20,320 $ 17,451 $ 2,869 16.4 %
Occupancy and equipment 5,302 4,610 692 15.0 %
Outside service fees 4,496 4,057 439 10.8 %
Professional fees 1,258 1,282 (24 ) (1.9 )%
Advertising and shareholder relations 941 673 268 39.8 %
Telephone and data communication 806 770 36 4.7 %
Armored car and courier 767 675 92 13.6 %
Director compensation and expense 763 606 157 25.9 %
Deposit insurance 737 528 209 39.6 %
Business development 615 506 109 21.5 %
Loan collection expenses 423 274 149 54.4 %
Amortization of Core Deposit Intangible 237 284 (47 ) (16.5 )%
Other 865 874 (9 ) (1.0 )%
Total non-interest expense $ 37,530 $ 32,590 $ 4,940 15.2 %
*PLUMAS BANCORP*
*SELECTED FINANCIAL INFORMATION* (Dollars in thousands)
(Unaudited)
*The following table shows the distribution of loans by type at December 31, 2023 and 2022.**
* *Percent of* *Percent of* *Loans in Each* *Loans in Each* *Balance at End* *Category to* *Balance at End* *Category to* *of Period* *Total Loans* *of Period* *Total Loans* *12/31/2023* *12/31/2023* *12/31/2022* *12/31/2022*
Commercial $ 74,271 7.8 % $ 76,680 8.4 %
Agricultural 129,389 13.5 % 122,873 13.5 %
Real estate – residential 11,914 1.2 % 15,324 1.7 %
Real estate – commercial 544,339 56.8 % 516,107 56.6 %
Real estate – construction & land 57,717 6.0 % 43,420 4.8 %
Equity Lines of Credit 37,871 4.0 % 35,891 3.9 %
Auto 98,132 10.2 % 96,750 10.6 %
Other 4,931 0.5 % 4,904 0.5 %
Total Gross Loans $ 958,564 100 % $ 911,949 100 %
*The following table shows the distribution of Commercial Real Estate loans at December 31, 2023 and 2022.* Percent of Percent of Loans in Each Loans in Each Balance at End Category to Balance at End Category to of Period Total Loans of Period Total Loans *12/31/2023* *12/31/2023* *12/31/2022* *12/31/2022*
Owner occupied $ 183,368 33.7 % $ 179,750 34.8 %
Investor 360,971 66.3 % 336,357 65.2 %
Total real estate - commercial $ 544,339 100 % $ 516,107 100 % *Percent of* *Percent of* *Deposits in Each* *Deposits in Each* *Balance at End* *Category to* *Balance at End* *Category to* *of Period* *Total Deposits* *of Period* *Total Deposits* *12/31/2023* *12/31/2023* *12/31/2022* *12/31/2022*
Non-interest bearing $ 692,768 51.9 % $ 766,549 52.6 %
Money Market 214,185 16.1 % 237,924 16.3 %
Savings 335,050 25.1 % 404,150 27.7 %
Time 91,652 6.9 % 49,186 3.4 %
Total Deposits $ 1,333,655 100 % $ 1,457,809 100 %