Plumas Bancorp Reports Record 2023 Earnings

Plumas Bancorp

RENO, Nev., July 19, 2023 (GLOBE NEWSWIRE) -- Plumas Bancorp (Nasdaq:PLBC), the parent company of Plumas Bank, today announced earnings during the second quarter of 2023 of $6.7 million or $1.14 per share, an increase of $1.0 million from $5.7 million or $0.97 per share during the second quarter of 2022. Diluted earnings per share increased to $1.12 per share during the three months ended June 30, 2023 up from $0.96 per share during the quarter ended June 30, 2022.

For the six months ended June 30, 2023, the Company reported net income of $14.3 million or $2.44 per share, an increase of $2.9 million from $11.4 million or $1.95 per share earned during the six months ended June 30, 2022. Earnings per diluted share increased to $2.41 during the six months ended June 30, 2023 up $0.48 from $1.93 during the first six months of 2022. Earnings during 2023 set a record for any six month period ending June 30^th in the Company’s history.

Return on average assets was 1.70% during the current quarter, up from 1.40% during the second quarter of 2022. Return on average equity increased to 20.5% for the three months ended June 30, 2023, up from 19.0% during the second quarter of 2022. Return on average assets was 1.81% during the six months ended June 30, 2023, up from 1.41% during the first half of 2022. Return on average equity increased to 22.7% for the six months ended June 30, 2023, up from 18.3% during the first half of 2022.

Balance Sheet Highlights
June 30, 2023 compared to June 30, 2022

• Gross loans increased by $74 million, or 9%, to $936 million.

• Investment securities increased by $104 million to $469 million.

• Total equity increased by $12.4 million, or 11% to $129 million.
  

President’s Comments

“Plumas Bancorp achieved record earnings for the first six months and second quarter of 2023,” Andrew J. Ryback, director, president and chief executive officer of Plumas Bancorp and Plumas Bank, announced.

“The ongoing performance was driven by net interest income and net interest margin. Additionally, our ability to maintain a low cost of funds has been and persists as a significant factor in driving profitability.

We continue to evaluate lending opportunities while prioritizing liquidity and assess portfolio performance, allocating resources accordingly with a long-term perspective on performance. Enhancing technology and operational efficiency further will equip us to navigate the evolving landscape effectively,” Ryback explained.

“The opening of the Chico branch in the second quarter expanded Plumas Bank’s services in Butte County from a loan production office to a full-service branch which has been well-received in the community. Additionally, we continue exploring avenues for strategic opportunities that align with our long-term growth objectives,” Ryback concluded.

Loans, Deposits, Investments and Cash

Gross loans increased by $74 million, or 9%, from $862 million at June 30, 2022, to $935 million at June 30, 2023. Increases in loans included, $69 million in commercial real estate loans, $15 million in automobile loans, $1 million in equity lines of credit, $1 million in agricultural loans and $1 million in other loans; these items were partially offset by a decrease of $9 million in commercial loans, $4 million in construction loans and $1 million in residential loans. The decrease in commercial loans included a decline in PPP loans from $8.0 million at June 30, 2022 to $265,000 at June 30, 2023.

On June 30, 2023, approximately 79% of the Company’s loan portfolio was comprised of variable rate loans. The rates of interest charged on variable rate loans are set at specific increments in relation to the Company’s lending rate or other indexes such as the published prime interest rate or U.S. Treasury rates and vary with changes in these indexes. The frequency at which variable rate loans reprice can vary from one day to several years. Most of our commercial real estate portfolio reprices every five years. Loans indexed to the prime interest rate were approximately 21% 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 $77 million to $1.4 billion at June 30, 2023. The decrease in deposits includes decreases of $48 million in demand deposits, $33 million in money market accounts, and $27 million in savings deposits. Partially offsetting these decreases was an increase in time deposit of $31 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 for a limited time 7-month and 11-month time deposits at an interest rate of 4%. We discontinued this promotion, which generated $46 million in deposits, on June 30, 2023. At June 30, 2023, 51% 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 $104 million from $365 million at June 30, 2022, to $469 million at June 30, 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 $226 million from $318 million at June 30, 2022, to $92 million at June 30, 2023.

Asset Quality and CECL

Nonperforming assets (which are comprised of nonperforming loans, other real estate owned (“OREO”) and repossessed vehicle holdings) at June 30, 2023 were $9.6 million, up from $2.0 million at June 30, 2022. Included in the $9.6 million were $5 million in loans to one customer which were over 90 days past due but not nonaccrual. These loans, which were modified during June, were brought current in July. Nonperforming assets as a percentage of total assets increased to 0.61% at June 30, 2023 up from 0.12% at June 30, 2022. OREO decreased by $286,000 from $369,000 at June 30, 2022 to $83,000 at June 30, 2023. Nonperforming loans were $9.5 million at June 30, 2023 and $1.6 million at June 30, 2022. Much of the increase in nonperforming loans were loans to walnut growers including the $5 million in loans past due over 90 days but not nonaccrual. Walnuts prices have declined significantly from 2022 levels. Nonperforming loans as a percentage of total loans increased to 1.02% at June 30, 2023, up from 0.18% at June 30, 2022.

Upon adoption of CECL 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 first half of 2023 we recorded a provision for credit losses of $2,875,000 consisting of a provision for loan losses of $2,550,000 and an increase in the reserve for unfunded commitments of $325,000. The increase in the reserves was principally related to an increase in qualitative reserves related to the continuation of increases in market interest rates, a reduction in economic activity and $837,000 in specific reserves on two loans to one borrower. 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 $411,000 and $133,000 during the six months ended June 30, 2023 and 2022, respectively. The allowance for credit losses totaled $13.4 million at June 30, 2023 and $10.9 million at June 30, 2022. The allowance for credit losses as a percentage of total loans increased from 1.27% at June 30, 2022 to 1.43% at June 30, 2023.

The following tables present the activity in the allowance for credit losses and the reserve for unfunded commitments during the six months ended June 30, 2023 and 2022 (in thousands).

Allowance for Credit Losses		June 30, 2023				June 30, 2022
Balance, beginning of period	$	10,717			$	10,352
Impact of CECL adoption		529				-
Provision charged to operations		2,550				700
Losses charged to allowance		(738	)			(469	)
Recoveries		327				336
Balance, end of period	$	13,385			$	10,919

Reserve for Unfunded Commitments		June 30, 2023			June 30, 2022
Balance, beginning of period	$	341		$	341
Impact of CECL adoption		258			-
Provision charged to operations		325			-
Balance, end of period	$	924		$	341

Shareholders’ Equity

Total shareholders’ equity increased by $12.4 million from $116.2 million at June 30, 2022, to $128.6 million at June 30, 2023. The $12.4 million includes earnings during the twelve-month period totaling $29.3 million and stock option and restricted stock activity totaling $606,000. These items were partially offset by the payment of cash dividends totaling $4.8 million, an increase in accumulated other comprehensive loss of $12.2 million and the adjustment recorded on the adoption of CECL, net of tax, of $554,000.

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 $231 million from the FHLB secured by commercial and residential mortgage loans with carrying values totaling $397 million. The Company is also 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 will be valued at par. The Company has pledged as collateral under the BTFP securities with a par value of $96 million at June 30, 2023. 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, FRB or the correspondent banks at June 30, 2023 and June 30, 2022.

The Company estimates that it has approximately $460 million in uninsured deposits. Of this amount, $101 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

Net interest income was $17.2 million for the three months ended June 30, 2023, an increase of $3.8 million from the same period in 2022. The increase in net interest income includes an increase of $4.5 million in interest income partially offset by an increase of $0.7 million in interest expense. Interest and fees on loans, including loans held for sale, increased by $2.3 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 $200,000 during the 2022 quarter to net costs of $231,000 during the three months ended June 30, 2023. This decline is mostly related to a decline in fees earned on PPP loans.

Including loans held for sale, average loan balances increased by $65 million, while the average yield on these loans increased by 62 basis points from 5.21% during the second quarter of 2022 to 5.84% during the current quarter. The increase in loan yield includes the effect of an increase in market rates during 2023 partially offset by a decline in PPP fee income as described above. The average prime interest rate increased from 3.94% during the second quarter of 2022 to 8.16% during the current quarter.

Interest on investment securities increased by $1.9 million from the second quarter of 2022, related to an increase in average investment securities of $141 million to $478 million and an increase in yield on the investment portfolio from 2.31% during the second quarter of 2022 to 3.24% during the current quarter. Interest on interest-earning cash balances increased by $304,000 related to an increase in the rate earned on these balances partially offset by a decrease in average interest-earning cash balances. The rate paid on interest-earning cash balances increased from 0.84% during the second quarter of 2022 to 5.14% during the current quarter mostly related to an increase in the rate paid on balances held at the Federal Reserve Bank. The average rate paid on Federal Reserve balances was 0.84% during the second quarter of 2022 and 5.06% during the current quarter. Average interest-earning cash balances declined from $314 million during the second quarter of 2022 to $75 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 June 30, 2023 totaled $1.5 billion, a decrease of $33 million from the same period in 2022. The average yield on interest earning assets increased 131 basis points to 4.96%, up from 3.65% for the same period in 2022. Net interest margin for the three months ended June 30, 2023 increased 112 basis points to 4.69%, up from 3.57% for the same period in 2022.

Net interest income for the six months ended June 30, 2023 was $34.4 million, an increase of $9.0 million from the $25.4 million earned during the same period in 2022. The increase in net interest income includes an increase of $10.0 million in interest income partially offset by an increase of $1.0 million in interest expense. Interest and fees on loans, including loans held for sale, increased by $4.4 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 $511,000 during the 2022 period to net costs of $581,000 during the six months ended June 30, 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 60 basis points from 5.13% during the first six months of 2022 to 5.73% during the current period.

Average interest earning assets during the current six month period totaled $1.5 billion, a decrease of $26 million from the same period in 2022. This decrease in average interest earning assets resulted from a decline in average interest-earning cash balances of $237 million, mostly offset by increases of $63 million in average loan balances and $148 million in average investment securities. The average yield on interest earning assets increased by 141 basis points to 4.88%, related to increases in market rates. Net interest margin for the six months ended June 30, 2023 increased 127 basis points to 4.66%, up from 3.39% for the same period in 2022.

Non-Interest Income/Expense

Non-interest income decreased by $521,000 to $2.1 million during the current quarter from $2.7 million during the three months ended June 30, 2022. The largest component of this decrease was a decline in gains on sale of SBA loans of $645,000. During the current quarter we sold one loan totaling $652,000. This compares to sales of $14.1 million during the second quarter of 2022. The SBA 7(a) loan product that is salable in the open market is variable rate tied to prime and we have seen a significant decline in interest in this product given the recent increases in the prime rate. While we continue to produce SBA 7(a) loans for sale at a much lower volume, we have started funding fixed rate SBA 7(a) loans which we portfolio. Additionally during the fourth quarter of 2022 and continuing into 2023 we experienced a significant decline in premiums received on the sale of SBA loans; in response during the three months ended March 30, 2023 and six months ended June 30, 2023 we chose to portfolio $4.1 million in salable SBA 7(a) loans which did not meet a minimum premium on sale.

During the six months ended June 30, 2023, non-interest income totaled $6.1 million, a decrease of $246,000 from $6.3 million during the six months ended June 30, 2022. The largest component of this decrease was a decline in gain on sale of loans of $2.1 million from $2.3 million during the six months ended June 30, 2022 to $219,000 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 the first half of 2022 we sold $38.2 million in guaranteed portions of SBA 7(a) loans. This compares to $4.9 million in sales during the current period. Mostly 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.

During the three months ended June 30, 2023, total non-interest expense increased by $1.1 million from $8.0 million during the second quarter of 2022 to $9.1 million during the current quarter. The largest components of this increase were an increase in salary and benefit expense of $628,000, an increase in outside service fees of $159,000 and an increase in occupancy and equipment costs of $142,000. The increase in salary and benefit expense primarily relates to an increase in salary expense and a reduction in the deferral of loan origination costs. Salary expense increased by $440,000 which we attribute primarily to merit and promotional salary increases. In addition, our full time equivalent employee count has increased from 172 at June 30, 2022 to 176 at June 30, 2023. The deferral of loan origination costs declined by $366,000 from the second quarter of 2022 as we have seen a reduction in loan demand given the current economic environment. The increase in outside service fees was spread among several different categories, the largest of which were network administration, investment management fees, and interchange expense. Occupancy and equipment costs increased by $142,000, much of which relates to snow removal and other costs attributable to an unusually harsh winter in our service area and the opening of our new Chico, California branch during the second quarter of 2023.

During the six months ended June 30, 2023 non-interest expense increased by $2.6 million to $18.3 million. The largest components of this increase were $1.6 million in salary and benefit expenses, $345,000 in occupancy and equipment costs and $245,000 in outside service fees. The largest increases in salary and benefit expense were $728,000 in salary expense and $866,000 in the deferral of loan origination costs.

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 June 30,
	2023			2022			Dollar Change				Percentage Change
ASSETS
Cash and due from banks	$	91,765		$	317,657		$	(225,892	)		(71.1	)%
Investment securities	468,920			365,189			103,731				28.4	%
Loans, net of allowance for credit losses	924,666			853,427			71,239				8.3	%
Loans held for sale	384			4,646			(4,262		)		(91.7	)%
Premises and equipment, net	19,377			18,212			1,165				6.4	%
Bank owned life insurance	15,902			16,031			(129		)		(0.8	)%
Real estate acquired through foreclosure	83			369			(286		)		(77.5	)%
Goodwill	5,502			5,502			-				0.0	%
Accrued interest receivable and other assets	46,386			39,593			6,793				17.2	%
Total assets	$	1,572,985		$	1,620,626		$	(47,641	)		(2.9	)%
LIABILITIES AND
SHAREHOLDERS’ EQUITY
Deposits	$	1,395,160		$	1,472,602		$	(77,442	)		(5.3	)%
Accrued interest payable and other liabilities	39,267			21,556			17,711				82.2	%
Borrowings	10,000			-			10,000				100.0	%
Junior subordinated deferrable interest debentures	-			10,310			(10,310		)		(100.0	)%
Total liabilities	1,444,427			1,504,468			(60,041		)		(4.0	)%
Common stock	27,739			27,133			606				2.2	%
Retained earnings	139,191			115,212			23,979				20.8	%
Accumulated other comprehensive income, net	(38,372)			(26,187)			(12,185		)		(46.5	)%
Shareholders’ equity	128,558			116,158			12,400				10.7	%
Total liabilities and shareholders’ equity	$	1,572,985		$	1,620,626		$	(47,641	)		(2.9	)%
PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
FOR THE THREE MONTHS ENDED JUNE 30,	2023			2022			Dollar Change				Percentage Change
Interest income	$	18,223		$	13,717		$	4,506			32.8	%
Interest expense	984			289			695				240.5	%
Net interest income before provision for loan losses	17,239			13,428			3,811				28.4	%
Provision for loan losses	1,350			400			950				237.5	%
Net interest income after provision for loan losses	15,889			13,028			2,861				22.0	%
Non-interest income	2,143			2,664			(521		)		(19.6	)%
Non-interest expense	9,098			8,033			1,065				13.3	%
Income before income taxes	8,934			7,659			1,275				16.6	%
Provision for income taxes	2,274			1,979			295				14.9	%
Net income	$	6,660		$	5,680		$	980			17.3	%
Basic earnings per share	$	1.14		$	0.97		$	0.17			17.5	%
Diluted earnings per share	$	1.12		$	0.96		$	0.16			16.7	%
PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
FOR THE SIX MONTHS ENDED JUNE 30,	2023			2022			Dollar Change				Percentage Change
Interest income	$	36,010		$	26,033		$	9,977			38.3	%
Interest expense	1,622			590			1,032				174.9	%
Net interest income before provision for loan losses	34,388			25,443			8,945				35.2	%
Provision for loan losses	2,875			700			2,175				310.7	%
Net interest income after provision for loan losses	31,513			24,743			6,770				27.4	%
Non-interest income	6,068			6,314			(246		)		(3.9	)%
Non-interest expense	18,323			15,707			2,616				16.7	%
Income before income taxes	19,258			15,350			3,908				25.5	%
Provision for income taxes	4,973			3,953			1,020				25.8	%
Net income	$	14,285		$	11,397		$	2,888			25.3	%
Basic earnings per share	$	2.44		$	1.95		$	0.49			25.1	%
Diluted earnings per share	$	2.41		$	1.93		$	0.48			24.9	%

PLUMAS BANCORP
SELECTED FINANCIAL INFORMATION
(Dollars in thousands, except per share data)
(Unaudited)
	Three Months Ended												Six Months Ended
	6/30/2023				3/31/2023				6/30/2022				6/30/2023						6/30/2022
EARNINGS PER SHARE
Basic earnings per share	$	1.14			$	1.30			$	0.97			$	2.44					$	1.95
Diluted earnings per share	$	1.12			$	1.28			$	0.96			$	2.41					$	1.93
Weighted average shares outstanding		5,862				5,855				5,843				5,858						5,834
Weighted average diluted shares outstanding		5,929				5,940				5,909				5,932						5,913
Cash dividends paid per share 1	$	0.25			$	0.25			$	0.16			$	0.50					$	0.32
PERFORMANCE RATIOS (annualized for the three months)
Return on average assets		1.70	%			1.93	%			1.40	%			1.81			%			1.41	%
Return on average equity		20.5	%			25.0	%			19.0	%			22.7			%			18.3	%
Yield on earning assets		4.96	%			4.81	%			3.65	%			4.88			%			3.47	%
Rate paid on interest-bearing liabilities		0.56	%			0.36	%			0.16	%			0.46			%			0.16	%
Net interest margin		4.69	%			4.64	%			3.57	%			4.66			%			3.39	%
Noninterest income to average assets		0.55	%			0.99	%			0.66	%			0.77			%			0.78	%
Noninterest expense to average assets		2.32	%			2.33	%			1.98	%			2.33			%			1.94	%
Efficiency ratio 2		46.9	%			43.8	%			49.9	%			45.3			%			49.5	%
	6/30/2023				3/31/2023				6/30/2022				12/31/2022						12/31/2021
CREDIT QUALITY RATIOS AND DATA
Allowance for loan losses	$	13,385			$	12,330			$	10,919			$	10,717					$	10,352
Allowance for loan losses as a percentage of total loans		1.43	%			1.35	%			1.27	%			1.18	%					1.23	%
Allowance for loan losses as a percentage of total loans -
excluding PPP loans		1.43	%			1.35	%			1.28	%			1.18	%					1.29	%
Nonperforming loans	$	9,535			$	3,971			$	1,551			$	1,172					$	4,863
Nonperforming assets	$	9,636			$	4,153			$	1,960			$	1,190					$	5,397
Nonperforming loans as a percentage of total loans		1.02	%			0.43	%			0.18	%			0.13	%					0.58	%
Nonperforming assets as a percentage of total assets		0.61	%			0.26	%			0.12	%			0.07	%					0.33	%
Year-to-date net charge-offs	$	411			$	166			$	133			$	935					$	675
Year-to-date net charge-offs as a percentage of average
loans (annualized)		0.09	%			0.07	%			0.03	%			0.11	%					0.09	%
CAPITAL AND OTHER DATA
Common shares outstanding at end of period		5,864				5,862				5,845				5,850						5,817
Shareholders’ equity	$	128,558			$	128,823			$	116,158			$	119,004					$	134,082
Book value per common share	$	21.92			$	21.98			$	19.87			$	20.34					$	23.05
Tangible common equity3	$	121,947			$	122,152			$	109,287			$	112,273					$	127,067
Tangible book value per common share4	$	20.80			$	20.84			$	18.70			$	19.19					$	21.84
Tangible common equity to total assets		7.8	%			7.7	%			6.7	%			6.9	%			7.9			%
Gross loans to deposits		67.0	%			65.0	%			58.5	%			62.6	%					58.3	%
PLUMAS BANK REGULATORY CAPITAL RATIOS
Tier 1 Leverage Ratio		10.3	%			9.8	%			8.7	%			9.2	%					8.4	%
Common Equity Tier 1 Ratio		15.0	%			14.8	%			14.4	%			14.7	%					14.4	%
Tier 1 Risk-Based Capital Ratio		15.0	%			14.8	%			14.4	%			14.7	%					14.4	%
Total Risk-Based Capital Ratio		16.2	%			16.0	%			15.5	%			15.7	%					15.5	%
(1) The Company paid a quarterly cash dividends of $0.25 per share on February 15, 2023 and May 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, liabilities and shareholders’ equity.
		For the Three Months Ended									For the Three Months Ended
		6/30/2023									6/30/2022
		Average						Yield/			Average						Yield/
		Balance			Interest			Rate			Balance			Interest			Rate
Interest-earning assets:
Loans (2) (3)		$	919,751		$	13,388		5.84	%		$	846,358		$	10,992		5.21	%
Loans held for sale			202			5		9.93	%			8,600			123		5.74	%
Investment securities			351,986			2,938		3.35	%			238,477			1,315		2.21	%
Non-taxable investment securities (1)			126,148			927		2.95	%			98,552			626		2.55	%
Interest-bearing deposits			75,233			965		5.14	%			314,289			661		0.84	%
Total interest-earning assets			1,473,320			18,223		4.96	%			1,506,276			13,717		3.65	%
Cash and due from banks			26,050									48,852
Other assets			74,888									68,522
Total assets		$	1,574,258								$	1,623,650
Interest-bearing liabilities:
Money market deposits			229,886			338		0.59	%			255,088			56		0.09	%
Savings deposits			383,599			208		0.22	%			396,868			85		0.09	%
Time deposits			67,986			318		1.88	%			61,955			42		0.27	%
Total deposits			681,471			864		0.51	%			713,911			183		0.10	%
Borrowings			10,000			113		4.53	%			-			-		-	%
Junior subordinated debentures			-			-		-	%			10,310			90		3.50	%
Other interest-bearing liabilities			16,900			7		0.17	%			10,135			16		0.63	%
Total interest-bearing liabilities			708,371			984		0.56	%			734,356			289		0.16	%
Non-interest-bearing deposits			718,372									757,655
Other liabilities			17,411									11,935
Shareholders’ equity			130,104									119,704
Total liabilities & equity		$	1,574,258								$	1,623,650
Cost of funding interest-earning assets (4)								0.27	%								0.08	%
					$	17,239		4.69	%					$	13,428		3.57	%
Net interest income and margin (5)
(1) Not computed on a tax-equivalent basis.
(2) Average nonaccrual loan balances of $3.6 million for 2023 and $3.4 million for 2022 are included in average loan balances for computational purposes.
(3) Net (cost) fees included in loan interest income for the three-month periods ended June 30, 2023 and 2022 were ($231) thousand and $200 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 six-month periods indicated the distribution of consolidated average assets, liabilities and shareholders’ equity.
		For the Six Months Ended									For the Six Months Ended
		6/30/2023									6/30/2022
		Average						Yield/			Average						Yield/
		Balance			Interest			Rate			Balance			Interest			Rate
Interest-earning assets:
Loans (2) (3)		$	916,389		$	26,041		5.73	%		$	838,866		$	21,302		5.12	%
Loans held for sale			1,016			46		9.13	%			15,624			429		5.54	%
Investment securities			347,002			5,752		3.34	%			226,609			2,314		2.06	%
Non-taxable investment securities (1)			125,388			1,841		2.96	%			97,703			1,159		2.39	%
Interest-bearing deposits			97,103			2,330		4.84	%			333,615			829		0.50	%
Total interest-earning assets			1,486,898			36,010		4.88	%			1,512,417			26,033		3.47	%
Cash and due from banks			26,386									51,663
Other assets			75,034									64,634
Total assets		$	1,588,318								$	1,628,714
Interest-bearing liabilities:
Money market deposits			232,855			555		0.48	%			258,833			122		0.10	%
Savings deposits			392,899			407		0.21	%			390,812			167		0.09	%
Time deposits			58,057			369		1.28	%			63,045			88		0.28	%
Total deposits			683,811			1,331		0.39	%			712,690			377		0.11	%
Borrowings			5,691			141		5.00	%			-			-		-	%
Junior subordinated debentures			4,575			141		6.22	%			10,310			179		3.50	%
Other interest-bearing liabilities			17,687			9		0.10	%			11,987			34		0.57	%
Total interest-bearing liabilities			711,764			1,622		0.46	%			734,987			590		0.16	%
Non-interest-bearing deposits			733,781									755,979
Other liabilities			15,908									11,919
Shareholders’ equity			126,865									125,829
Total liabilities & equity		$	1,588,318								$	1,628,714
Cost of funding interest-earning assets (4)								0.22	%								0.08	%
					$	34,388		4.66	%					$	25,443		3.39	%
(1) Not computed on a tax-equivalent basis.
(2) Average nonaccrual loan balances of $3.0 million for 2023 and $4.2 million for 2022 are included in average loan balances for computational purposes.
(3) Net (costs) fees included in loan interest income for the six-month periods ended June 30, 2023 and 2022 were ($581) thousand and $511 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 six-month periods ended June 30, 2023 and 2022.
		For the Six Months Ended
		June 30,
			2023			2022		Dollar Change				Percentage Change
Gain on termination of swaps		$	1,707		$	-		$	1,707			100.0	%
Interchange income			1,539			1,615			(76	)		(4.7	)%
Service charges on deposit accounts			1,313			1,170			143			12.2	%
Loan servicing fees			476			422			54			12.8	%
Gain on sale of loans, net			219			2,335			(2,116	)		(90.6	)%
Earnings on life insurance policies			204			187			17			9.1	%
Other			610			585			25			4.3	%
Total non-interest income		$	6,068		$	6,314		$	(246	)		(3.9	)%
The following table presents the components of non-interest expense for the six-month periods ended June 30, 2023 and 2022.
		For the Six Months Ended
		June 30,
			2023			2022		Dollar Change				Percentage Change
Salaries and employee benefits		$	9,933		$	8,320		$	1,613			19.4	%
Occupancy and equipment			2,593			2,248			345			15.3	%
Outside service fees			2,175			1,930			245			12.7	%
Professional fees			626			616			10			1.6	%
Advertising and shareholder relations			460			302			158			52.3	%
Director compensation and expense			438			275			163			59.3	%
Telephone and data communication			403			382			21			5.5	%
Deposit insurance			370			372			(2	)		(0.5	)%
Armored car and courier			347			315			32			10.2	%
Business development			305			242			63			26.0	%
Loan collection expenses			217			143			74			51.7	%
Amortization of core deposit intangible			120			144			(24	)		(16.7	)%
Other			336			418			(82	)		(19.6	)%
Total non-interest expense		$	18,323		$	15,707		$	2,616			16.7	%

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 June 30, 2023 and 2022.
		For the Three Months Ended
		June 30,
			2023				2022		Dollar Change				Percentage Change
Interchange income		$	824			$	853		$	(29	)		(3.4	)%
Service charges on deposit accounts			694				604			90			14.9	%
Loan servicing fees			241				212			29			13.7	%
Earnings on life insurance policies			100				93			7			7.5	%
(Loss) gain on sale of loans, net			(11	)			634			(645	)		(101.7	)%
Other			295				268			27			10.1	%
Total non-interest income		$	2,143			$	2,664		$	(521	)		(19.6	)%
The following table presents the components of non-interest expense for the three-month periods ended June 30, 2023 and 2022.
		For the Three Months Ended
		June 30,
			2023				2022		Dollar Change				Percentage Change
Salaries and employee benefits		$	4,866			$	4,238		$	628			14.8	%
Occupancy and equipment			1,253				1,111			142			12.8	%
Outside service fees			1,181				1,022			159			15.6	%
Professional fees			284				337			(53	)		(15.7	)%
Advertising and shareholder relations			281				190			91			47.9	%
Telephone and data communication			203				191			12			6.3	%
Director compensation and expense			196				134			62			46.3	%
Deposit insurance			182				175			7			4.0	%
Armored car and courier			182				167			15			9.0	%
Business development			166				127			39			30.7	%
Loan collection expenses			87				75			12			16.0	%
Amortization of core deposit intangible			60				72			(12	)		(16.7	)%
Other			157				194			(37	)		(19.1	)%
Total non-interest expense		$	9,098			$	8,033		$	1,065			13.3	%

PLUMAS BANCORP
SELECTED FINANCIAL INFORMATION
(Dollars in thousands)
(Unaudited)
The following table shows the distribution of loans by type at June 30, 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
		6/30/2023			6/30/2023			6/30/2022			6/30/2022
Commercial		$	74,958		8.0	%		$	84,378		9.8	%
Agricultural			126,841		13.6	%			125,807		14.6	%
Real estate – residential			14,878		1.6	%			15,867		1.8	%
Real estate – commercial			517,289		55.3	%			447,980		52.0	%
Real estate – construction & land			56,331		6.0	%			60,891		7.1	%
Equity Lines of Credit			35,877		3.8	%			34,745		4.0	%
Auto			103,050		11.0	%			87,907		10.2	%
Other			5,990		0.7	%			4,577		0.5	%
Total Gross Loans		$	935,214		100	%		$	862,152		100	%
The following table shows the distribution of deposits by type at June 30, 2023 and 2022.
					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
		6/30/2023			6/30/2023			6/30/2022			6/30/2022
Non-interest bearing		$	716,438		51.4	%		$	764,907		52.0	%
Money Market			213,386		15.3	%			246,067		16.7	%
Savings			374,013		26.8	%			401,091		27.2	%
Time			91,323		6.5	%			60,537		4.1	%
Total Deposits		$	1,395,160		100	%		$	1,472,602		100	%