Plumas Bancorp Reports Record Third Quarter 2021 Results
Plumas Bancorp (Nasdaq:PLBC) reported record earnings and total assets for the three and nine months ending September 30, 2021. Total assets rose to $1.6 billion, a 41% increase from the prior year. Earnings for Q3 2021 were $6.6 million ($1.13 per share), up from $3.7 million ($0.71 per share) in Q3 2020. For the first nine months of 2021, net income reached $15.5 million ($2.87 per share), representing a substantial increase over the previous year. The acquisition of Bank of Feather River contributed significantly to these results, alongside a reduction in loan loss provisions and increased PPP fees.
- Total assets increased by $456 million (41%) to $1.6 billion.
- Q3 2021 earnings rose to $6.6 million ($1.13 per share), up from $3.7 million ($0.71 per share) in Q3 2020.
- Net income for the first nine months of 2021 was $15.5 million ($2.87 per share), an increase of $5.3 million from the previous year.
- Acquisition of Bank of Feather River added $205 million in assets, $162 million in loans, and $177 million in deposits.
- PPP loan fees increased significantly to $2.5 million in Q3 2021 from $0.6 million in Q3 2020.
- Nonperforming loans increased to $4.9 million, up from $2.4 million a year prior.
- Nonperforming assets as a percentage of total assets increased to 0.35% from 0.29% year-over-year.
- Total non-interest expense rose by $797 thousand, influenced by increases in outside service fees and other costs.
QUINCY, Calif., Oct. 20, 2021 (GLOBE NEWSWIRE) -- Plumas Bancorp (Nasdaq:PLBC), the parent company of Plumas Bank, today announced record total assets and earnings during the three and nine months ended September 30, 2021. Total assets were
For the nine months ended September 30, 2021, the Company reported net income of
Return on average assets was
Results for the three and nine months ended September 30, 2021 benefited from the acquisition of the Bank of Feather River (BFR), the wholly owned subsidiary of Feather River Bancorp, effective July 1, 2021. Total assets acquired from BFR, including goodwill, were
In connection with the acquisition, the Company incurred a variety of non-recurring expense. The non-recurring costs for the three and nine months ended September 30, 2021 were
In addition to the acquisition of BFR, the Company benefited from an increase in PPP loan fees during the comparison periods, a reduction in salary expense related to the Employee Retention Credit (ERC) and a reduction in the provision for loan losses. During the three and nine months ended September 30, 2021, PPP fees net of the amortization of PPP origination costs were
During the second and third quarters of 2021 the Company qualified for the ERC. The ERC was made available under the Coronavirus Aid, Relief, and Economic Security Act and modified and extended under the Taxpayer Certainty and Disaster Tax Relief Act of 2020. We recorded an ERC of
The provision for loan losses declined from
Financial Highlights
September 30, 2021 compared to September 30, 2020
- Total assets increased by
$456 million , or41% , to a record level of over$1.6 billion . - Gross loans increased by
$95 million , or13% , to a record level of$839 million . - Investment securities increased by
$117 million to$275 million . - Total deposits increased by
$427 million , or44% , to a record level of$1.4 billion . - Total equity increased by
$33.5 million , or35% to a record level of$130 million . - Book value per share increased by
$3.76 , or20% , to$22.29 , up from$18.53 . - Tangible book value per share increased by
$2.69 or15% , to$21.07 , up from$18.38 .
President’s Comments
Andrew J. Ryback, director, president and chief executive officer of Plumas Bancorp and Plumas Bank, stated, “The acquisition of Bank of Feather River, which has become our Yuba City branch, has been a great success. We have enjoyed a high staff retention rate at this newly acquired branch and loan production during the third quarter was nearly
“In response to the recent fires throughout our region, Plumas Bank has allocated
Loans, Deposits, Investments and Cash
Gross loans increased by
We have instituted a loan forbearance program to assist borrowers with managing cash flows disrupted due to COVID-19. As of September 30, 2021, there were
Total deposits increased by
During November 2020 we eliminated our interest-bearing demand deposit products, transferring these accounts to either money market accounts or non-interest bearing demand accounts based on product type. We made this change to simplify our deposit product offerings in light of the changes to Federal Reserve Board Regulation D which no longer limits the number of transfers or withdrawals from Money Market or Savings accounts.
At September 30, 2021,
Total investment securities increased by
Asset Quality
Nonperforming assets (which are comprised of nonperforming loans, other real estate owned (“OREO”) and repossessed vehicle holdings) at September 30, 2021 totaled
The provision for loan losses decreased from
Shareholders’ Equity
Total shareholders’ equity increased by
Net Interest Income and Net Interest Margin
Driven by the acquisition of BFR and an increase in PPP fees, net interest income increased by
Average loan balances increased by
Net interest income for the nine months ended September 30, 2021 was
Average interest earning assets during the current nine month period totaled
Non-Interest Income/Expense
During the three months ended September 30, 2021 and 2020, non-interest income totaled
During the nine months ended September 30, 2021, non-interest income totaled
During the three months ended September 30, 2021, total non-interest expense increased by
Included in outside service fees were
The largest decline in non-interest expense was
During the nine months ended September 30, 2021 non-interest expense increased by
Plumas Bancorp is headquartered in Reno, Nevada. Plumas Bancorp’s principal subsidiary is Plumas Bank, which was founded in 1980. Plumas Bank is a full-service community bank headquartered in Quincy, California. The bank operates fourteen branches: twelve located in the California counties of Lassen, Modoc, Nevada, Placer, Plumas, Shasta and Sutter and two branches located in Nevada in the counties of Carson City and Washoe. The bank also operates two loan production offices located in the California Counties of Butte and Placer. 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, | |||||||||||||||
2021 | 2020 | Dollar Change | Percentage Change | ||||||||||||
ASSETS | |||||||||||||||
Cash and due from banks | $ | 372,993 | $ | 175,531 | $ | 197,462 | 112.5 | % | |||||||
Investment securities | 275,061 | 158,002 | 117,059 | 74.1 | % | ||||||||||
Loans held for sale | 28,364 | 3,661 | 24,703 | 674.8 | % | ||||||||||
Loans, net of allowance for loan losses | 828,611 | 733,989 | 94,622 | 12.9 | % | ||||||||||
Premises and equipment, net | 16,005 | 14,047 | 1,958 | 13.9 | % | ||||||||||
Bank owned life insurance | 15,743 | 13,444 | 2,299 | 17.1 | % | ||||||||||
Real estate acquired through foreclosure | 569 | 763 | (194 | ) | -25.4 | % | |||||||||
Goodwill | 5,502 | - | 5,502 | 100.0 | % | ||||||||||
Accrued interest receivable and other assets | 28,632 | 16,512 | 12,120 | 73.4 | % | ||||||||||
Total assets | $ | 1,571,480 | $ | 1,115,949 | $ | 455,531 | 40.8 | % | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||
Deposits | $ | 1,404,446 | $ | 977,529 | $ | 426,917 | 43.7 | % | |||||||
Accrued interest payable and other liabilities | 27,191 | 32,127 | (4,936 | ) | -15.4 | % | |||||||||
Junior subordinated deferrable interest debentures | 10,310 | 10,310 | - | 0.0 | % | ||||||||||
Total liabilities | 1,441,947 | 1,019,966 | 421,981 | 41.4 | % | ||||||||||
Common stock | 26,705 | 7,586 | 19,119 | 252.0 | % | ||||||||||
Retained earnings | 100,992 | 84,094 | 16,898 | 20.1 | % | ||||||||||
Accumulated other comprehensive income, net | 1,836 | 4,303 | (2,467 | ) | -57.3 | % | |||||||||
Shareholders’ equity | 129,533 | 95,983 | 33,550 | 35.0 | % | ||||||||||
Total liabilities and shareholders’ equity | $ | 1,571,480 | $ | 1,115,949 | $ | 455,531 | 40.8 | % |
PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, | 2021 | 2020 | Dollar Change | Percentage Change | |||||||||||
Interest income | $ | 13,869 | $ | 9,813 | $ | 4,056 | 41.3 | % | |||||||
Interest expense | 319 | 278 | 41 | 14.7 | % | ||||||||||
Net interest income before provision for loan losses | 13,550 | 9,535 | 4,015 | 42.1 | % | ||||||||||
Provision for loan losses | 250 | 800 | (550 | ) | -68.8 | % | |||||||||
Net interest income after provision for loan losses | 13,300 | 8,735 | 4,565 | 52.3 | % | ||||||||||
Non-interest income | 2,001 | 2,161 | (160 | ) | -7.4 | % | |||||||||
Non-interest expense | 6,601 | 5,804 | 797 | 13.7 | % | ||||||||||
Income before income taxes | 8,700 | 5,092 | 3,608 | 70.9 | % | ||||||||||
Provision for income taxes | 2,122 | 1,400 | 722 | 51.6 | % | ||||||||||
Net income | $ | 6,578 | $ | 3,692 | $ | 2,886 | 78.2 | % | |||||||
Basic earnings per share | $ | 1.13 | $ | 0.71 | $ | 0.42 | 59.2 | % | |||||||
Diluted earnings per share | $ | 1.12 | $ | 0.71 | $ | 0.41 | 57.7 | % | |||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, | 2021 | 2020 | Dollar Change | Percentage Change | |||||||||||
Interest income | $ | 34,786 | $ | 28,855 | $ | 5,931 | 20.6 | % | |||||||
Interest expense | 826 | 951 | (125 | ) | -13.1 | % | |||||||||
Net interest income before provision for loan losses | 33,960 | 27,904 | 6,056 | 21.7 | % | ||||||||||
Provision for loan losses | 875 | 2,800 | (1,925 | ) | -68.8 | % | |||||||||
Net interest income after provision for loan losses | 33,085 | 25,104 | 7,981 | 31.8 | % | ||||||||||
Non-interest income | 6,231 | 6,309 | (78 | ) | -1.2 | % | |||||||||
Non-interest expense | 18,225 | 17,370 | 855 | 4.9 | % | ||||||||||
Income before income taxes | 21,091 | 14,043 | 7,048 | 50.2 | % | ||||||||||
Provision for income taxes | 5,585 | 3,850 | 1,735 | 45.1 | % | ||||||||||
Net income | $ | 15,506 | $ | 10,193 | $ | 5,313 | 52.1 | % | |||||||
Basic earnings per share | $ | 2.87 | $ | 1.97 | $ | 0.9 | 45.7 | % | |||||||
Diluted earnings per share | $ | 2.83 | $ | 1.95 | $ | 0.88 | 45.1 | % | |||||||
PLUMAS BANCORP
SELECTED FINANCIAL INFORMATION
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
9/30/2021 | 6/30/2021 | 9/30/2020 | 9/30/2021 | 9/30/2020 | ||||||||||||
EARNINGS PER SHARE | ||||||||||||||||
Basic earnings per share | $ | 1.13 | $ | 0.86 | $ | 0.71 | $ | 2.87 | $ | 1.97 | ||||||
Diluted earnings per share | $ | 1.12 | $ | 0.85 | $ | 0.71 | $ | 2.83 | $ | 1.95 | ||||||
Weighted average shares outstanding | 5,800 | 5,197 | 5,179 | 5,397 | 5,176 | |||||||||||
Weighted average diluted shares outstanding | 5,885 | 5,280 | 5,230 | 5,477 | 5,229 | |||||||||||
Cash dividends paid per share1 | $ | 0.14 | $ | 0.14 | $ | 0.12 | $ | 0.42 | $ | 0.24 | ||||||
PERFORMANCE RATIOS (annualized) | ||||||||||||||||
Return on average assets | 1.71 | % | 1.45 | % | 1.37 | % | 1.58 | % | 1.4 | % | ||||||
Return on average equity | 19.6 | % | 17.2 | % | 15.5 | % | 18.3 | % | 14.9 | % | ||||||
Yield on earning assets | 3.92 | % | 3.49 | % | 3.84 | % | 3.79 | % | 4.21 | % | ||||||
Rate paid on interest-bearing liabilities | 0.19 | % | 0.19 | % | 0.22 | % | 0.19 | % | 0.27 | % | ||||||
Net interest margin | 3.83 | % | 3.4 | % | 3.73 | % | 3.7 | % | 4.07 | % | ||||||
Noninterest income to average assets | 0.52 | % | 0.61 | % | 0.8 | % | 0.64 | % | 0.86 | % | ||||||
Noninterest expense to average assets | 1.72 | % | 1.73 | % | 2.15 | % | 1.86 | % | 2.38 | % | ||||||
Efficiency ratio2 | 42.4 | % | 45.1 | % | 49.6 | % | 45.3 | % | 50.8 | % | ||||||
9/30/2021 | 6/30/2021 | 9/30/2020 | 12/31/2020 | 12/31/2019 | ||||||||||||
CREDIT QUALITY RATIOS AND DATA | ||||||||||||||||
Allowance for loan losses | $ | 10,305 | $ | 10,128 | $ | 9,600 | $ | 9,902 | $ | 7,243 | ||||||
Allowance for loan losses as a percentage of total loans | 1.23 | % | 1.4 | % | 1.29 | % | 1.4 | % | 1.17 | % | ||||||
Allowance for loan losses as a percentage of total loans - excluding PPP loans | 1.32 | % | 1.59 | % | 1.54 | % | 1.55 | % | 1.17 | % | ||||||
Nonperforming loans | $ | 4,873 | $ | 6,817 | $ | 2,445 | $ | 2,536 | $ | 2,050 | ||||||
Nonperforming assets | $ | 5,465 | $ | 7,348 | $ | 3,208 | $ | 2,970 | $ | 2,813 | ||||||
Nonperforming loans as a percentage of total loans | 0.58 | % | 0.94 | % | 0.33 | % | 0.36 | % | 0.33 | % | ||||||
Nonperforming assets as a percentage of total assets | 0.35 | % | 0.58 | % | 0.29 | % | 0.27 | % | 0.33 | % | ||||||
Year-to-date net charge-offs | $ | 472 | $ | 399 | $ | 443 | $ | 516 | $ | 1,215 | ||||||
Year-to-date net charge-offs as a percentage of average loans (annualized) | 0.08 | % | 0.11 | % | 0.09 | % | 0.07 | % | 0.21 | % | ||||||
CAPITAL AND OTHER DATA | ||||||||||||||||
Common shares outstanding at end of period | 5,811 | 5,199 | 5,181 | 5,182 | 5,166 | |||||||||||
Shareholders' equity | $ | 129,533 | $ | 106,790 | $ | 95,983 | $ | 100,154 | $ | 84,505 | ||||||
Book value per common share | $ | 22.29 | $ | 20.54 | $ | 18.53 | $ | 19.33 | $ | 16.36 | ||||||
Tangible common equity3 | $ | 122,439 | $ | 106,151 | $ | 95,216 | $ | 99,432 | $ | 83,584 | ||||||
Tangible book value per common share4 | $ | 21.07 | $ | 20.42 | $ | 18.38 | $ | 19.19 | $ | 16.18 | ||||||
Tangible common equity to total assets | 7.8 | % | 8.4 | % | 8.5 | % | 8.9 | % | 9.7 | % | ||||||
Gross loans to deposits | 59.7 | % | 64.1 | % | 76.1 | % | 72.8 | % | 82.9 | % | ||||||
PLUMAS BANK REGULATORY CAPITAL RATIOS | ||||||||||||||||
Tier 1 Leverage Ratio | 8.6 | % | 9 | % | 9.3 | % | 9.2 | % | 10.4 | % | ||||||
Common Equity Tier 1 Ratio | 14.1 | % | 15 | % | 14 | % | 14.2 | % | 13.1 | % | ||||||
Tier 1 Risk-Based Capital Ratio | 14.1 | % | 15 | % | 14 | % | 14.2 | % | 13.1 | % | ||||||
Total Risk-Based Capital Ratio | 15.3 | % | 16.2 | % | 15.3 | % | 15.4 | % | 14.2 | % |
(1) The Company paid a quarterly cash dividend of 14 cents per share on February 15, 2021, May 17, 2021 and August 16, 2021 and quarterly cash dividends of 12 cents per share on May 15, 2020, August 14, 2020 and November 16, 2020.
(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.
FAQ
What were the total assets reported by Plumas Bancorp for Q3 2021?
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What is the impact of the acquisition of Bank of Feather River on Plumas Bancorp's earnings?
What were the nonperforming loans for Plumas Bancorp at the end of Q3 2021?