Plumas Bancorp Reports Third Quarter 2024 Earnings

Rhea-AI Summary

Plumas Bancorp reported Q3 2024 earnings of $7.8 million or $1.33 per share, a slight decrease from $8.0 million or $1.36 per share in Q3 2023. The annualized return on average assets was 1.84%, down from 2.00% in Q3 2023. Key highlights include:

- Gross loans increased by 5% to $1.0 billion
- Total equity increased by 52% to $182 million
- Book value per share increased by 51% to $30.85
- Total deposits decreased by $51 million to $1.35 billion
- Net interest income increased by $1.1 million to $18.9 million
- Non-interest expense increased by $1.4 million to $10.8 million

The company's net interest margin for Q3 2024 was 4.76%, down slightly from 4.77% in Q3 2023. Plumas Bancorp maintains a strong liquidity position with approximately $456 million in uninsured deposits.

Positive

• Gross loans increased by 5% to $1.0 billion
• Total equity increased by 52% to $182 million
• Book value per share increased by 51% to $30.85
• Net interest income increased by $1.1 million to $18.9 million
• Net interest margin remained strong at 4.76%

Negative

• Q3 2024 earnings decreased slightly to $7.8 million from $8.0 million in Q3 2023
• Annualized return on average assets decreased to 1.84% from 2.00% in Q3 2023
• Total deposits decreased by $51 million to $1.35 billion
• Non-interest expense increased by $1.4 million to $10.8 million

Insights

Financial Analyst

Plumas Bancorp's Q3 2024 results show a slight decline in earnings compared to Q3 2023, with EPS decreasing from $1.36 to $1.33. The company's performance reflects mixed trends:

• Net interest income increased by $1.1 million, indicating improved core banking operations.
• Loan growth of 5% year-over-year to $1.0 billion demonstrates continued demand for credit.
• However, deposits decreased by $51 million to $1.35 billion, potentially due to competitive pressures.
• Non-interest expenses increased by $1.4 million, including $376,000 in nonrecurring litigation costs.
• Return on average assets declined from 2.00% to 1.84% and return on average equity fell from 24.4% to 18.1%.

The bank's asset quality remains stable, with nonperforming assets at 0.29% of total assets. The allowance for credit losses stands at 1.35% of total loans, unchanged from the previous year. The recent Federal Reserve rate cut may help stabilize deposits and ease pressure on variable-rate borrowers. Overall, while facing some headwinds, Plumas Bancorp maintains a solid financial position with growth in loans and equity.

Banking Industry Specialist

Plumas Bancorp's Q3 2024 results highlight several key industry trends and challenges:

• The net interest margin remained relatively stable at 4.76%, which is commendable in the current rate environment and compared to industry peers.
• The increase in borrowings to $75 million from $10 million a year ago reflects the industry-wide trend of banks seeking alternative funding sources amidst deposit outflows.
• The bank's strong liquidity position, with $118 million in cash and due from banks, provides a buffer against potential stress scenarios.
• The 52% increase in total equity to $182 million strengthens the bank's capital position, enhancing its ability to weather economic uncertainties.
• The shift in loan portfolio composition towards more commercial real estate loans aligns with broader industry trends but may increase concentration risk.

The bank's focus on technological developments, employee engagement and community support demonstrates a forward-thinking approach to banking. However, the increase in non-interest expenses and the slight decline in profitability metrics warrant attention. The bank's performance in managing interest rate risk and deposit retention in the coming quarters will be crucial, especially given the recent changes in the interest rate environment.

RENO, Nev., Oct. 16, 2024 (GLOBE NEWSWIRE) -- Plumas Bancorp (Nasdaq:PLBC), the parent company of Plumas Bank, today announced earnings during the third quarter of 2024 of $7.8 million or $1.33 per share, a decrease of $140 thousand from $8.0 million or $1.36 per share during the third quarter of 2023.   Diluted earnings per share decreased to $1.31 per share during the three months ended September 30, 2024 down from $1.34 per share during the quarter ended September 30, 2023. An increase of $1.1 million in net interest income and a decline of $200,000 in the provision for credit losses were offset by increases of $1.4 million in non-interest expense and a decline of $76,000 in the non-interest income.  Included in non-interest expense were nonrecurring costs related to a litigation matter totaling $376,000. The annualized return on average assets was 1.84% for the three months ended September 30, 2024, down from 2.00% for the three months ended September 30, 2023. The annualized return on average equity decreased from 24.4% during the third quarter of 2023 to 18.1% during the current quarter.

For the nine months ended September 30, 2024, the Company reported net income of $20.9 million or $3.54 per share, a decrease of $1.4 million from $22.3 million or $3.80 per share earned during the nine months ended September 30, 2023. Earnings per diluted share decreased to $3.50 during the nine months ended September 30, 2024, down $0.25 from $3.75 during the first nine months of 2023.   An increase of $2.6 million in net interest income and declines of $1.3 million in the provision for credit losses and $336,000 in the provision for income taxes were offset by a decline of $1.8 million in non-interest income and an increase of $3.9 million in non-interest expense. The annualized return on average assets was 1.69% for the nine months ended September 30, 2024, down from 1.88% for the nine months ended September 30, 2023. The annualized return on average equity decreased from 23.3% during the first nine months of 2023 to 17.2% during the current period.  

Balance Sheet Highlights

September 30, 2024 compared to September 30, 2023

• Cash and due from banks increased by $27 million to $118 million.
• Gross loans increased by $45 million, or 5%, to $1.0 billion.
• Total equity increased by $62 million, or 52%, to $182 million.
• Book value per share increased by $10.41, or 51%, to $30.85.
• Borrowings increased by $65 million to $75 million.
  

President’s Comments

Andrew J. Ryback, director, president, and chief executive officer of Plumas Bancorp and Plumas Bank, commented on the third quarter of 2024, stating, “We anticipate increased deposit retention as a result of the Fed's decision to cut rates by 50bp in the third quarter as rate seeking funds movement activity will likely be tempered. Additionally, lower rates will likely ease potential challenges for variable rate borrowers.”

“In the third quarter of 2024 we released our 2024 Corporate Citizenship Report, highlighting employee, community, and client engagement and support. Efforts include ongoing technological developments to enhance efficiency and reduce environmental impacts, employee development through leadership training and educational support, formalization of certain fee waivers and other forms of client support, and involvement of staff in non-equity incentives and stock option awards in addition to paying livable wages in excess of California minimum wage requirements. These efforts describe Plumas’ intention and promise to be Here. For Good.,” concluded Ryback.

Loans, Deposits, Investments and Cash

Gross loans increased by $45 million, or 5%, from $959 million at September 30, 2023, to $1.0 billion at September 30, 2024. Increases in loans included $88 million in commercial real estate loans and $5 million in commercial loans, these items were partially offset by decreases of $33 million in automobile loans, $10 million in agricultural loans and $5 million in construction loans.

On   September 30, 2024, approximately 77% 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 are repriced can vary from one day to several years. Most of our commercial real estate portfolio reprices every five years. Approximately 75% of the variable rate loans are indexed to the five year T-Bill rate and reprice every five years. Loans indexed to the prime interest rate were approximately 22% of the Company’s variable rate loan portfolio; these loans reprice within one day to three months of a change in the prime rate.

Total deposits decreased by $51 million from $1.40 billion at September 30, 2023 to $1.35 billion at September 30, 2024. The decrease in deposits includes decreases of $34 million in demand deposits, and $41 million in savings deposits. Partially offsetting these declines were increases of $12 million in both money market accounts and time deposits. While deposits decreased during the 12 month period, we experienced an increase in deposits for the three months ended September 30, 2024 of $46 million. At September 30, 2024, 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 $18 million from $438 million at September 30, 2023, to $457 million at September 30, 2024 related to a decline in the unrealized loss on investment securities. The Bank’s investment security portfolio consists of debt securities issued by US Government agencies, US Government sponsored agencies and municipalities. All investment securities are classified as available for sale. The unrealized loss on investment securities decreased from $76 million at September 30, 2023 to $21 million at September 30, 2024. Cash and due from banks increased by $27 million from $91 million at September 30, 2023, to $118 million at September 30, 2024.

Asset Quality

Nonperforming assets (which are comprised of nonperforming loans, other real estate owned (“OREO”) and repossessed vehicle holdings) were $4.8 million at September 30, 2024 and 2023. Nonperforming assets as a percentage of total assets decreased slightly to 0.29% at September 30, 2024 down from 0.31% at September 30, 2023. OREO decreased by $299 thousand from $440 thousand at September 30, 2023 to $141 thousand at September 30, 2024. Nonperforming loans were $4.5 million at September 30, 2024 and $4.3 million at September 30, 2023. Nonperforming loans as a percentage of total loans decreased slightly to 0.44% at September 30, 2024, down from 0.45% at September 30, 2023.

During the first nine months of 2024 we recorded a provision for credit losses of $1,346,000 consisting of a provision for credit losses on loans of $1,475,000 and a decrease in the reserve for unfunded commitments of $129 thousand. The provision includes growth in the loan portfolio, and net losses during the nine-month period. This compares to a provision for credit losses of $2,675,000 consisting of a provision for credit losses - loans of $2,425,000 and an increase in the reserve for unfunded commitments of $250,000 during the nine months ended September 30, 2023.

Net charge-offs, mostly related to our automobile loan portfolio, totaled $736 thousand and $724 thousand during the nine months ended September 30, 2024 and 2023, respectively. The allowance for credit losses totaled $13.6 million at September 30, 2024 and $12.9 million at September 30, 2023. The allowance for credit losses as a percentage of total loans was 1.35% at September 30, 2024 and 2023.

The following tables present the activity in the allowance for credit losses and the reserve for unfunded commitments during the nine months ended September 30, 2024 and 2023 (in thousands).

Allowance for Credit Losses		September 30, 2024				September 30, 2023
Balance, beginning of period	$	12,867			$	10,717
Impact of CECL adoption		-				529
Provision charged to operations		1,475				2,425
Losses charged to allowance		(1,422	)			(1,252	)
Recoveries		686				528
Balance, end of period	$	13,606			$	12,947

Reserve for Unfunded Commitments		September 30, 2024				September 30, 2023
Balance, beginning of period	$	799			$	341
Impact of CECL adoption		-				258
Provision charged to operations		(129	)			250
Balance, end of period	$	670			$	849

Shareholders’ Equity

Total shareholders’ equity increased by $62 million from $120 million at September 30, 2023, to $182 million at September 30, 2024. The $62 million includes earnings during the twelve-month period of $28.4 million, a decrease in accumulated other comprehensive loss of $38.9 million and restricted stock and stock option activity totaling $0.9 million. These items were partially offset by the payment of cash dividends totaling $6.2 million.

Borrowings

At December 31, 2023, the Company had outstanding borrowings under the Bank Term Funding Program (BTFP) totaling $80 million. In January 2024, the Company borrowed an additional $25 million under the BTFP and during September 2024 we made a $45 million payment resulting in a balance of $60 million outstanding at September 30, 2024. This borrowing bears interest at the rate of 4.85% and is payable on January 17, 2025. Borrowings under the BTFP can be prepaid without penalty. There were no borrowings under the BTFP at September 30, 2023. Interest expense recognized on the BTFP borrowings for the nine months ended September 30, 2024 totaled $3.7 million.

In addition to the BTFP borrowings, Plumas Bancorp has outstanding borrowings of $15 million with a correspondent bank. This loan matures on January 25, 2035 and can be prepaid at any time. During the initial three years the loan functions as an interest only revolving line of credit. Beginning on year four the loan converts into a term loan requiring semi-annual principal and interest payments and no further advances can be made. This borrowing bears interest at a fixed rate of 3.85% for the first 5 years and then at a floating interest rate linked to WSJ Prime Rate for the remaining eight year term.

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 offering 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 $240 million from the FHLB secured by commercial and residential mortgage loans with carrying values totaling $426 million. In addition to its FHLB borrowing line, 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 from the FHLB or the correspondent banks at September 30, 2024 and September 30, 2023.

The Company estimates that it has approximately $456 million in uninsured deposits. Of this amount, $104 million represents deposits that are collateralized such as deposits of states, municipalities and tribal accounts.

Customer deposits are the Company’s primary source of funds. Total deposits decreased by $51 million from $1.40 billion at September 30, 2023 to $1.35 billion at September 30, 2024. Deposits are held in various forms with varying maturities.

The Company’s securities portfolio, Federal funds sold, FHLB advances, and cash and due from banks serve as the primary sources of liquidity, providing adequate funding for loans during periods of high loan demand. During periods of decreased lending, funds obtained from the maturing or sale of investments, loan payments, and new deposits are invested in short-term earning assets, such as cash held at the Federal Reserve Bank of San Francisco, Federal funds sold and investment securities, to serve as a source of funding for future loan growth. Management believes that the Company’s available sources of funds, including borrowings, will provide adequate liquidity for its operations in the foreseeable future.

Net Interest Income and Net Interest Margin – Three Months Ended September 30, 2024

Net interest income was $18.9 million for the three months ended September 30, 2024, an increase of $1.1 million from the same period in 2023. The increase in net interest income includes an increase of $2.8 million in interest income partially offset by an increase of $1.7 million in interest expense.

Interest and fees on loans increased by $1.4 million related to growth in the loan portfolio and an increase in yield on the portfolio. Average loan balances increased by $58 million, while the average yield on these loans increased by 21 basis points from 6.00% during the third quarter of 2023 to 6.21% during the current quarter. The increase in loan yield includes an increase in SBA fixed rate loans which currently yield approximately 8.1% and the repricing of loans that are priced off the 5 year Treasury. These loans are primarily commercial real estate loans and are repriced every five years.

Interest on investment securities increased by $670 thousand related to an increase in yield of 71 basis points to 3.99%. The increase in investment yields is consistent with the increase in market rates and the partial restructuring of the investment portfolio during the first quarter of 2024. Average investment securities declined from $462 million during the three months ended September 30, 2023 to $447 million during the current quarter. Interest on cash balances increased by $791 thousand related to an increase in average balance of $57 million and an increase in rate earned on these balances of 7 basis points from 5.37% during the three months ended September 30, 2023 to 5.44% during the current quarter. Cash balances primarily relate to cash held at the Federal Reserve Bank of San Francisco (FRB). The average rate earned on FRB balances was 5.33% during both the third quarter of 2024 and 2023.

Interest expense increased by $1.7 million from $1.3 million during the three months ended September 30, 2023 to $3.0 million during the current period related to increase in rate paid on interest bearing liabilities and an increase in borrowings. The average rate paid on interest bearing liabilities increased from 0.73% during the 2023 quarter to 1.52% in 2024 related mainly to an increase in market interest rates, and an increase in borrowings.

Interest paid on deposits increased by $391 thousand and is broken down by product type as follows: money market accounts - $266 thousand and time deposits - $146 thousand. Related to a decline in average balance of $43 million, interest on savings deposits declined by $21 thousand. The average rate paid on interest-bearing deposits increased from 0.69% during the third quarter of 2023 to 0.97% during the current quarter.

Mostly related to an increase in average borrowings outstanding from $10 million during the three months ended September 30, 2023 to $117 million during the current quarter, interest incurred on borrowings increased by $1.3 million from $114 thousand during the three months ended September 30, 2023 to $1.4 million during the three months ended September 30, 2024. 

Net interest margin for the three months ended September 30, 2024 was 4.76%, down slightly from 4.77% for the same period in 2023.

Net Interest Income and Net Interest Margin – Nine months Ended September 30, 2024

Net interest income for the nine months ended September 30, 2024 was $54.7 million, an increase of $2.6 million from the $52.1 million earned during the same period in 2023. The increase in net interest income includes an increase of $8.0 million in interest income partially offset by an increase of $5.4 million in interest expense.

Interest and fees on loans increased by $5.3 million related to an increase in average balance and yield. The average balance of loans during the nine months ended September 30, 2024 was $982 million, an increase of $56 million from $926 million during the same period in 2023. The average yield on loans increased by 38 basis points from 5.83% during the first nine months of 2023 to 6.21% during the current period.

Interest on investment securities increased by $2.0 million related to an increase in yield of 67 basis points to 3.92%. The increase in investment yields is consistent with the increase in market rates and the partial restructuring of the investment portfolio. Average investment securities declined from $469 million during the nine months ended September 30, 2023 to $457 million during the current period. Interest on cash balances increased by $712 thousand related to an increase in yield of 54 basis points and an increase in average balance of $8.4 million from $88.8 million during the first nine months of 2023 to $97.2 million in the current period.

Interest expense increased from $2.9 million during the nine months ended September 30, 2023 to $8.3 million during the current period related to an increase in rate paid on interest bearing liabilities and an increase in borrowings. The average rate paid on interest bearing liabilities increased from 0.55% during the 2023 period to 1.43% in 2024 related to an increase in borrowings and an increase in market interest rates. The average balance of borrowings increased by $107 million from $10 million during the nine months ended September 30, 2023 to $117 million during the current period.

Interest paid on deposits increased by $1.6 million and is broken down by product type as follows: money market accounts - $556 thousand and time deposits - $1.1 million. Related to a decline in average balance of $57 million, interest on savings deposits declined by $75 thousand. The average rate paid on interest-bearing deposits increased from 0.49% during the nine months ended September 30, 2023 to 0.85% during the current period.

Interest incurred on borrowings totaled $4.2 million and $396 thousand during the nine months ended September 30, 2024 and 2023, respectively.

Net interest margin for the nine months ended September 30, 2024 increased 6 basis points to 4.76%, up from 4.70% for the same period in 2023.

Non-Interest Income/Expense – Three Months Ended September 30, 2024

Non-interest income decreased by $76 thousand to $2.2 million during the current quarter. Increases of $29 thousand in service charge income, $21 thousand in Federal Home Loan Bank dividends and $6 thousand in other non-interest income were offset by declines in interchange income of $101 thousand, loan servicing fees of $27 thousand and earnings on insurance policies of $4 thousand. Interchange income can fluctuate period to period based on the volume of debit card transactions.

During the three months ended September 30, 2024, total non-interest expense increased by $1.4 million from $9.4 million during the third quarter of 2023 to $10.8 million during the current quarter. The largest components of this increase were an increase in salary and benefit expense of $367 thousand, an increase in occupancy and equipment costs of $636 thousand, an increase in professional fees of $117 thousand and an increase in other non-interest expense of $262 thousand. The increase in salary and benefit expense primarily relates to an increase in salary expense and a decrease in the deferral of loan origination costs. Salary expenses increased by $138 thousand, which we attribute primarily to merit and promotional salary increases and an increase in employees. Our full time equivalent employee count has increased from 180 at September 30, 2023 to 189 at September 30, 2024. Deferred loan origination cost declined by $95 thousand from $694 thousand during the three months ended September 30, 2023 to $599 thousand during the current period. The amount of loan origination costs deferred is primarily related to loan volume, both new originations and renewals, during the period. Occupancy and equipment costs increased by $636 thousand related to an increase in rent expense of $705 thousand mostly related to the sales/leaseback transaction completed during the first quarter of 2024. This increase in rent expense was offset by additional income resulting from the partial restructuring of our investment portfolio which also took place during the first quarter of 2024. Other expenses and professional fees include non-recurring expenses totaling $376 thousand during the three months ended September 30, 2024 and $565 thousand during the nine months ended September 30, 2024 related to a litigation matter. While portions of this matter are still being litigated these amounts represent our best estimate of potential costs to Plumas Bank related to this matter.

Non-Interest Income/Expense – Nine months Ended September 30, 2024

During the nine months ended September 30, 2024, non-interest income totaled $6.6 million, a decrease of $1.8 million from the nine months ended September 30, 2023. The largest component of this decrease was a $1.7 million gain on termination of our interest rate swaps during 2023. Related to the sale/leaseback transaction during the first quarter of 2024 and the partial restructuring of our investment portfolio, a $19.9 million gain on sale of buildings was offset by a $19.8 million loss on investment securities.

During the nine months ended September 30, 2024 non-interest expense increased by $3.9 million to $31.6 million. The largest components of this increase were a $1.1 million increase in salary and benefit expenses, a $1.7 million increase in occupancy and equipment expenses and a $618 thousand increase in other non-interest expenses. The largest increases in salary and benefit expense were $524 thousand in salary expense and $404 thousand in commission expense. These were partially offset by an increase in the deferral of loan origination costs of $297 thousand related to an increase in SBA production. The increase in occupancy and equipment costs relates to a $1.7 million increase in rent expense related to the sales/leaseback transaction. The increase in other non-interest expense includes expenses related to the litigation matter discussed earlier.

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 September 30,
	2024			2023			Dollar Change			Percentage Change
ASSETS
Cash and due from banks	$	117,959		$	90,567		$	27,392		30.2%
Investment securities	456,720			438,265			18,455			4.2%
Loans, net of allowance for credit losses	993,070			948,719			44,351			4.7%
Premises and equipment, net	12,703			19,064			(6,361)			(33.4)%
Right-of-use assets	24,657			3,025			21,632			715.1%
Bank owned life insurance	16,415			16,006			409			2.6%
Real estate acquired through foreclosure	141			440			(299)			(68.0)%
Goodwill	5,502			5,502			-			-%
Accrued interest receivable and other assets	36,807			51,286			(14,479)			(28.2)%
Total assets	$	1,663,974		$	1,572,874		$	91,100		5.8%
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Deposits	$	1,350,996		$	1,402,486		$	(51,490)		(3.7)%
Lease liabilities	24,983			3,094			21,889			707.5%
Accrued interest payable and other liabilities	31,053			37,369			(6,316)			(16.9)%
Borrowings	75,000			10,000			65,000			650.0%
Total liabilities	1,482,032			1,452,949			29,083			2.0%
Common stock	28,813			27,896			917			3.3%
Retained earnings	167,846			145,694			22,152			15.2%
Accumulated other comprehensive loss, net	(14,717)			(53,665)			38,948			72.6%
Shareholders’ equity	181,942			119,925			62,017			51.7%
Total liabilities and shareholders’ equity	$	1,663,974		$	1,572,874		$	91,100		5.8%
PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30,	2024			2023			Dollar Change			Percentage Change
Interest income	$	21,862		$	19,042		$	2,820		14.8%
Interest expense	2,992			1,303			1,689			129.6%
Net interest income before provision for credit losses	18,870			17,739			1,131			6.4%
Provision for credit losses	(400)			(200)			(200)			100.0%
Net interest income after provision for credit losses	19,270			17,939			1,331			7.4%
Non-interest income	2,237			2,313			(76)			(3.3)%
Non-interest expense	10,824			9,442			1,382			14.6%
Income before income taxes	10,683			10,810			(127)			(1.2)%
Provision for income taxes	2,853			2,840			13			0.5%
Net income	$	7,830		$	7,970		$	(140)		(1.8)%
Basic earnings per share	$	1.33		$	1.36		$	(0.03)		(2.2)%
Diluted earnings per share	$	1.31		$	1.34		$	(0.03)		(2.2)%
PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
							Dollar			Percentage
FOR THE NINE MONTHS ENDED SEPTEMBER 30,	2024			2023			Dollar Change			Percentage Change
Interest income	$	63,049		$	55,053		$	7,996		14.5%
Interest expense	8,317			2,925			5,392			184.3%
Net interest income before provision for credit losses	54,732			52,128			2,604			5.0%
Provision for credit losses	1,346			2,675			(1,329)			(49.7)%
Net interest income after provision for credit losses	53,386			49,453			3,933			8.0%
Non-interest income	6,579			8,380			(1,801)			(21.5)%
Non-interest expense	31,617			27,764			3,853			13.9%
Income before income taxes	28,348			30,069			(1,721)			(5.7)%
Provision for income taxes	7,478			7,814			(336)			(4.3)%
Net income	$	20,870		$	22,255		$	(1,385)		(6.2)%
Basic earnings per share	$	3.54		$	3.80		$	(0.26)		(6.8)%
Diluted earnings per share	$	3.50		$	3.75		$	(0.25)		(6.7)%

PLUMAS BANCORP
SELECTED FINANCIAL INFORMATION
(Dollars in thousands, except per share data)
(Unaudited)
		Three Months Ended												Nine Months Ended
		9/30/2024				6/30/2024				9/30/2023				9/30/2024				9/30/2023
EARNINGS PER SHARE
Basic earnings per share		$	1.33			$	1.15			$	1.36			$	3.54			$	3.80
Diluted earnings per share		$	1.31			$	1.14			$	1.34			$	3.50			$	3.75
Weighted average shares outstanding			5,896				5,896				5,866				5,893				5,861
Weighted average diluted shares outstanding			5,968				5,946				5,932				5,956				5,932
Cash dividends paid per share 1		$	0.27			$	0.27			$	0.25			$	0.81			$	0.75
PERFORMANCE RATIOS (annualized for the three months)
Return on average assets			1.84	%			1.67	%			2.00	%			1.69	%			1.88	%
Return on average equity			18.1	%			17.1	%			24.4	%			17.2	%			23.3	%
Yield on earning assets			5.52	%			5.62	%			5.12	%			5.48	%			4.96	%
Rate paid on interest-bearing liabilities			1.52	%			1.44	%			0.73	%			1.43	%			0.55	%
Net interest margin			4.76	%			4.89	%			4.77	%			4.76	%			4.70	%
Noninterest income to average assets			0.53	%			0.54	%			0.58	%			0.53	%			0.71	%
Noninterest expense to average assets			2.55	%			2.56	%			2.37	%			2.56	%			2.34	%
Efficiency ratio 2			51.3	%			50.4	%			47.1	%			51.6	%			45.9	%
		9/30/2024				6/30/2024				9/30/2023				12/31/2023				12/31/2022
CREDIT QUALITY RATIOS AND DATA
Allowance for credit losses		$	13,606			$	14,082			$	12,947			$	12,867			$	10,717
Allowance for credit losses as a percentage of total loans			1.35	%			1.41	%			1.35	%			1.34	%			1.18	%
Nonperforming loans		$	4,455			$	8,974			$	4,329			$	4,820			$	1,172
Nonperforming assets		$	4,753			$	9,148			$	4,813			$	5,315			$	1,190
Nonperforming loans as a percentage of total loans			0.44	%			0.90	%			0.45	%			0.50	%			0.13	%
Nonperforming assets as a percentage of total assets			0.29	%			0.56	%			0.31	%			0.33	%			0.07	%
Year-to-date net charge-offs		$	736			$	610			$	724			$	954			$	935
Year-to-date net charge-offs as a percentage of average
loans (annualized)			0.10	%			0.13	%			0.10	%			0.10	%			0.11	%
CAPITAL AND OTHER DATA
Common shares outstanding at end of period			5,897				5,896				5,868				5,872				5,850
Shareholders' equity		$	181,942			$	165,155			$	119,925			$	147,317			$	119,004
Book value per common share		$	30.85			$	28.01			$	20.44			$	25.09			$	20.34
Tangible common equity3		$	175,601			$	158,763			$	113,374			$	140,823			$	112,273
Tangible book value per common share4		$	29.78			$	26.93			$	19.32			$	23.98			$	19.19
Tangible common equity to total assets			10.6	%			9.7	%			7.2	%			8.7	%			6.9	%
Gross loans to deposits			74.3	%			76.4	%			68.6	%			71.9	%			62.6	%
PLUMAS BANK REGULATORY CAPITAL RATIOS
Tier 1 Leverage Ratio			11.3	%			11.3	%			10.6	%			10.8	%			9.2	%
Common Equity Tier 1 Ratio			16.9	%			16.4	%			15.1	%			15.7	%			14.7	%
Tier 1 Risk-Based Capital Ratio			16.9	%			16.4	%			15.1	%			15.7	%			14.7	%
Total Risk-Based Capital Ratio			18.2	%			17.6	%			16.3	%			16.9	%			15.7	%
(1) The Company paid a quarterly cash dividend of $0.27 per share on August 15, 2024, May 15, 2024 and February 15, 2024 and a quarterly cash dividend of $0.25 per share on February 15, 2023, May 15, 2023 , August 15, 2023 and November 15, 2023.
(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 core deposit intangibles and goodwill.
(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
		9/30/2024									9/30/2023
		Average						Yield/			Average						Yield/
		Balance			Interest			Rate			Balance			Interest			Rate
Interest-earning assets:
Loans (2) (3)		$	1,001,505		$	15,635		6.21	%		$	943,348		$	14,276		6.00	%
Investment securities			370,051			3,885		4.18	%			337,702			2,888		3.39	%
Non-taxable investment securities (1)			76,817			596		3.09	%			123,877			923		2.96	%
Interest-bearing deposits			127,640			1,746		5.44	%			70,545			955		5.37	%
Total interest-earning assets			1,576,013			21,862		5.52	%			1,475,472			19,042		5.12	%
Cash and due from banks			27,480									27,049
Other assets			86,001									77,221
Total assets		$	1,689,494								$	1,579,742
Interest-bearing liabilities:
Money market deposits			223,229			657		1.17	%			224,128			391		0.69	%
Savings deposits			323,347			178		0.22	%			365,869			199		0.22	%
Time deposits			99,815			736		2.93	%			91,290			590		2.56	%
Total deposits			646,391			1,571		0.97	%			681,287			1,180		0.69	%
Borrowings			117,065			1,413		4.80	%			10,000			114		4.52	%
Other interest-bearing liabilities			17,943			8		0.18	%			19,300			9		0.19	%
Total interest-bearing liabilities			781,399			2,992		1.52	%			710,587			1,303		0.73	%
Non-interest-bearing deposits			697,079									719,725
Other liabilities			39,249									20,012
Shareholders' equity			171,767									129,418
Total liabilities & equity		$	1,689,494								$	1,579,742
Cost of funding interest-earning assets (4)								0.76	%								0.35	%
Net interest income and margin (5)					$	18,870		4.76	%					$	17,739		4.77	%
(1) Not computed on a tax-equivalent basis.
(2) Average nonaccrual loan balances of $3.7 million for 2024 and $3.4 million for 2023 are included in average loan balances for computational purposes.
(3) Net costs included in loan interest income for the three-month periods ended September 30, 2024 and 2023 were $408 thousand and $346 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 nine-month periods indicated the distribution of consolidated average assets, liabilities and shareholders' equity.
		For the Nine Months Ended									For the Nine Months Ended
		9/30/2024									9/30/2023
		Average						Yield/			Average						Yield/
		Balance			Interest			Rate			Balance			Interest			Rate
Interest-earning assets:
Loans (2) (3)		$	982,191		$	45,639		6.21	%		$	926,148		$	40,363		5.83	%
Investment securities			369,893			11,423		4.13	%			343,868			8,641		3.36	%
Non-taxable investment securities (1)			87,051			1,989		3.05	%			124,879			2,763		2.96	%
Interest-bearing deposits			97,196			3,998		5.49	%			88,819			3,286		4.95	%
Total interest-earning assets			1,536,331			63,049		5.48	%			1,483,714			55,053		4.96	%
Cash and due from banks			26,978									25,943
Other assets			85,536									75,771
Total assets		$	1,648,845								$	1,585,428
Interest-bearing liabilities:
Money market deposits			216,699			1,501		0.93	%			229,914			945		0.55	%
Savings deposits			327,263			532		0.22	%			383,790			607		0.21	%
Time deposits			95,350			2,041		2.86	%			69,256			959		1.85	%
Total deposits			639,312			4,074		0.85	%			682,960			2,511		0.49	%
Borrowings			117,136			4,210		4.80	%			7,143			255		4.77	%
Junior subordinated debentures			-			-		-	%			3,033			141		6.22	%
Other interest-bearing liabilities			18,820			33		0.23	%			18,230			18		0.13	%
Total interest-bearing liabilities			775,268			8,317		1.43	%			711,366			2,925		0.55	%
Non-interest-bearing deposits			678,057									729,044
Other liabilities			33,845									17,293
Shareholders' equity			161,675									127,725
Total liabilities & equity		$	1,648,845								$	1,585,428
Cost of funding interest-earning assets (4)								0.72	%								0.26	%
Net interest income and margin (5)					$	54,732		4.76	%					$	52,128		4.70	%
(1) Not computed on a tax-equivalent basis.
(2) Average nonaccrual loan balances of $4.4 million for 2024 and $3.1 million for 2023 are included in average loan balances for computational purposes.
(3) Net costs included in loan interest income for the nine-month periods ended September 30, 2024 and 2023 were $1,090 thousand and $927 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 September 30, 2024 and 2023.
	For the Three Months Ended
	September 30,
	2024			2023			Dollar Change				Percentage Change
Interchange income	$	818		$	919			(101	)		(11.0	)%
Service charges on deposit accounts		766			737			29			3.9	%
Loan servicing fees		176			203			(27	)		(13.3	)%
FHLB Dividends		136			115			21			18.3	%
Earnings on life insurance policies		104			108			(4	)		(3.7	)%
Other		237			231			6			2.6	%
Total non-interest income	$	2,237		$	2,313		$	(76	)		(3.3	)%
The following table presents the components of non-interest expense for the three-month periods ended September 30, 2024 and 2023.
	For the Three Months Ended
	September 30,
	2024			2023			Dollar Change				Percentage Change
Salaries and employee benefits	$	5,481		$	5,114		$	367			7.2	%
Occupancy and equipment		1,988			1,352			636			47.0	%
Outside service fees		1,114			1,170			(56	)		(4.8	)%
Professional fees		345			228			117			51.3	%
Advertising and shareholder relations		247			233			14			6.0	%
Armored car and courier		228			211			17			8.1	%
Director compensation and expense		203			165			38			23.0	%
Deposit insurance		191			182			9			4.9	%
Telephone and data communication		188			203			(15	)		(7.4	)%
Business development		143			152			(9	)		(5.9	)%
Loan collection expenses		102			91			11			12.1	%
Amortization of Core Deposit Intangible		51			60			(9	)		(15.0	)%
Other		543			281			262			93.2	%
Total non-interest expense	$	10,824		$	9,442		$	1,382			14.6	%

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, 2024 and 2023.
	For the Nine Months Ended
	September 30,
	2024				2023			Dollar Change				Percentage Change
Gain on sale of buildings	$	19,854			$	-			19,854			100.0	%
Interchange income		2,340				2,458			(118	)		(4.8	)%
Service charges on deposit accounts		2,224				2,051			173			8.4	%
Loan servicing fees		564				678			(114	)		(16.8	)%
FHLB Dividends		409				289			120			41.5	%
Earnings on life insurance policies		305				313			(8	)		(2.6	)%
Gain on termination of interest rate swaps		-				1,707			(1,707	)		(100.0	)%
Loss on sale of investment securities		(19,817	)			-			(19,817	)		100.0	%
Other		700				884			(184	)		(20.8	)%
Total non-interest income	$	6,579			$	8,380		$	(1,801	)		(21.5	)%
The following table presents the components of non-interest expense for the nine-month periods ended September 30, 2024 and 2023.
	For the Nine Months Ended
	September 30,
		2024				2023		Dollar Change				Percentage Change
Salaries and employee benefits	$	16,129			$	15,047		$	1,082			7.2	%
Occupancy and equipment		5,627				3,945			1,682			42.6	%
Outside service fees		3,430				3,345			85			2.5	%
Professional fees		1,113				854			259			30.3	%
Advertising and shareholder relations		706				693			13			1.9	%
Armored car and courier		651				558			93			16.7	%
Telephone and data communication		614				606			8			1.3	%
Director compensation and expense		569				603			(34	)		(5.6	)%
Deposit insurance		562				552			10			1.8	%
Business development		506				457			49			10.7	%
Loan collection expenses		323				308			15			4.9	%
Amortization of Core Deposit Intangible		153				180			(27	)		(15.0	)%
Other		1,234				616			618			100.3	%
Total non-interest expense	$	31,617			$	27,764		$	3,853			13.9	%

PLUMAS BANCORP
SELECTED FINANCIAL INFORMATION
(Dollars in thousands)
(Unaudited)
The following table shows the distribution of loans by type at September 30, 2024 and 2023.
					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
		9/30/24			9/30/24			9/30/23			9/30/23
Commercial		$	82,192		8.2	%		$	76,719		8.0	%
Agricultural			121,709		12.1	%			131,242		13.7	%
Real estate – residential			11,672		1.2	%			12,457		1.3	%
Real estate – commercial			618,236		61.6	%			530,023		55.3	%
Real estate – construction & land			54,287		5.4	%			58,901		6.1	%
Equity Lines of Credit			37,652		3.8	%			37,650		3.9	%
Auto			72,388		7.2	%			105,584		11.0	%
Other			5,352		0.5	%			6,056		0.7	%
Total Gross Loans		$	1,003,488		100	%		$	958,632		100	%
The following table shows the distribution of Commercial Real Estate loans at September 30, 2024 and 2023.
					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
		9/30/24			9/30/24			9/30/23			9/30/23
Owner occupied		$	263,280		42.6	%		$	180,908		34.1	%
Investor			354,956		57.4	%			349,115		65.9	%
Total real estate - commercial		$	618,236		100	%		$	530,023		100	%
The following table shows the distribution of deposits by type at September 30, 2024 and 2023.
					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
		9/30/24			9/30/24			9/30/23			9/30/23
Non-interest bearing		$	703,005		52.0	%		$	736,683		52.5	%
Money Market			229,267		17.0	%			217,731		15.5	%
Savings			316,483		23.4	%			357,765		25.5	%
Time			102,241		7.6	%			90,307		6.5	%
Total Deposits		$	1,350,996		100	%		$	1,402,486		100	%

FAQ

What was Plumas Bancorp's (PLBC) earnings per share in Q3 2024?

Plumas Bancorp reported earnings of $1.33 per share in Q3 2024.

How did Plumas Bancorp's (PLBC) gross loans change in Q3 2024 compared to Q3 2023?

Gross loans increased by 5%, from $959 million in Q3 2023 to $1.0 billion in Q3 2024.

What was Plumas Bancorp's (PLBC) net interest margin in Q3 2024?

Plumas Bancorp's net interest margin for Q3 2024 was 4.76%, slightly down from 4.77% in Q3 2023.

How much did Plumas Bancorp's (PLBC) total deposits change in Q3 2024?

Total deposits decreased by $51 million, from $1.40 billion in Q3 2023 to $1.35 billion in Q3 2024.