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Plumas Bancorp (PLBC) Reports Record Earnings for Q3 2023

  • Plumas Bancorp (NASDAQ:PLBC) reported a record net income of $8.0 million for Q3 2023, a significant increase from $7.2 million in Q3 2022.

  • The company's net income for the nine months ended September 30, 2023, was $22.3 million, up from $18.6 million for the same period in 2022.

  • Return on average assets and equity also saw an increase in Q3 2023 compared to the same period in 2022.

  • Despite discontinuing its dealer loan program due to long-term challenges, the company continues to achieve record earnings.

Plumas Bancorp (NASDAQ:PLBC), the parent company of Plumas Bank, announced on October 18, 2023, a record net income of $8.0 million for the third quarter of 2023, marking an increase of $742 thousand from the same period in 2022. The company's earnings per share increased to $1.36, up from $1.24 in Q3 2022. The diluted earnings per share also saw an increase to $1.34 per share, up from $1.23 per share in Q3 2022.

Financial Highlights


For the nine months ended September 30, 2023, Plumas Bancorp (NASDAQ:PLBC) reported a net income of $22.3 million or $3.80 per share, an increase of $3.6 million from the same period in 2022. The earnings per diluted share increased to $3.75, up $0.60 from the first nine months of 2022. These earnings set a record for any nine-month period ending September 30th in the company's history. Furthermore, the earnings for the third quarter exceeded earnings for any quarter in the company's history.

The return on average assets was 2.00% during the current quarter, up from 1.72% during Q3 2022. The return on average equity increased to 24.4% for Q3 2023, up from 23.7% during the same period in 2022. For the nine months ended September 30, 2023, the return on average assets was 1.88%, up from 1.52% during the same period in 2022. The return on average equity increased to 23.3% for the nine months ended September 30, 2023, up from 20.1% during the same period in 2022.

President's Comments


We are pleased that Plumas Bancorp has been included in Raymond James equity research with a very strong initial report," Andrew J. Ryback, director, president and chief executive officer of Plumas Bancorp and Plumas Bank, announced. "Additionally, Plumas Bancorp was included on the Russell 2000 and was the recipient of a variety of regional and national awards such as the Raymond James Community Bankers Cup and D.A. Davidsons Bison Select list. While many banks are experiencing significant increases in funding costs resulting in declining margins, Plumas banks margins have continued to increase over the last several quarters and we continue to achieve record earnings. We attribute much of this to our exceptionally strong core deposit base resulting in funding costs significantly lower than most peer institutions."

Ryback also mentioned that the company decided to discontinue its dealer loan program due to several contributing factors, including the current higher rate environment, increasing regulatory compliance requirements, the necessary replacement of technology support systems, and increasing expenses. However, he assured that this closure is isolated to the dealer loan program and that the company will redirect cash flows from this portfolio to lower-risk investments and more profitable lending opportunities.

Balance Sheet Highlights


As of September 30, 2023, gross loans increased by $101 million, or 12%, from $858 million at September 30, 2022, to $959 million. Total deposits decreased by $109 million to $1.4 billion at September 30, 2023. Total investment securities increased by $55 million from $383 million at September 30, 2022, to $438 million at September 30, 2023. Nonperforming assets at September 30, 2023 were $4.8 million, up from $1.9 million at September 30, 2022.

Plumas Bancorp (NASDAQ:PLBC) continues to demonstrate strong financial performance, setting new records in earnings and showing resilience in the face of challenges. The company's commitment to strategic investments and maintaining a strong core deposit base has contributed to its success, making it a noteworthy entity in the financial sector.

This article first appeared on GuruFocus.

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