Plumas Bank reports record 2021 third-quarter results

Plumas Bancorp, the parent company of Plumas Bank, today announced record total assets and earnings during the last three months and nine months ending Sept. 30, 2021. Total assets were $1.6 billion representing an increase of $456 million over the same period the year prior. Earnings during the third quarter of 2021 totaled $6.6 million, an increase of $2.9 million from the prior year.

For the nine-month period ending Sept. 30, 2021, the bank reported net income of $15.5 million, an increase of $5.3 million from the year prior.

Results for the three and nine months benefited from the acquisition in July of the Bank of Feather River, the wholly owned subsidiary of Feather River Bancorp. Total assets acquired, including goodwill, were $205 million — gross loans totaled $162 million and deposits totaled $177 million. Goodwill associated with the acquisition was $5.5 million and the core deposit intangible was $ 1 million.

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 12% of the branch’s portfolio. We anticipate completion of the system conversion of our Yuba City branch in the fourth quarter.”

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“In response to the recent fires throughout our region, Plumas Bank has allocated $50 thousand in matching funds to the Dixie Fire Fund, a fund launched by the Bank through the Community Foundation of Northern Nevada. The Dixie Fire Fund has grown to almost $100 thousand and will ultimately be distributed by an advisory council,” Ryback stated.

In addition to the acquisition of the Bank of Feather River, Plumas Bank said it 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-month period, PPP fees net of the amortization of PPP origination costs were $2.5 million and $5 million, respectively. This compares to $0.6 million and $0.9 million during the the same periods the year prior.

During the second and third quarters of 2021 the bank qualified for the ERC that 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.The bank recorded an ERC of $1.1 million during the second quarter and $1.2 million during the current quarter as a reduction of salary and benefit expense.

Financial Highlights for Nine-month period
Sept. 30, 2021 – Sept. 30, 2020

  • Total assets increased by $456 million, 41%, to a record level of over $1.6 billion.

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  • Gross loans increased by $95 million, 13%, to a record level of $839 million.

  • Investment securities increased by $117 million to $275 million.

  • Total deposits increased by $427 million, 44%, to a record level of $1.4 billion.

  • Total equity increased by $33.5 million, 35% to a record level of $130 million.
  • Book value per share increased by $3.76, 20%, to $22.29, up from $18.53.
  • Tangible book value per share increased by $2.69, 15%, to $21.07, up from $18.38.

Loans and deposits

In the nine-month comparison, gross loans increased by $95 million, 13%, from $744 million to $839 million. Increases in loans included $61 million in agricultural loans, $70 million in commercial real estate loans, and $11 million in construction loans; these items were partially offset by a decrease of $41 million in commercial loans and $6 million in all other loan categories. Absent a $59 million decline in PPP loans, commercial loans would have increased by $18 million. Excluding loans acquired on the acquisition of Bank of Feather River, loans would have decreased by $59 million. PPP loans totaled $60 million in 2021 and $119 million in 2020.

The bank said they have instituted a loan forbearance program to assist borrowers with managing cash flows disrupted due to COVID-19.  As of September 2021, there were $3.7 million in loan balances on deferral related to this program.  They said they expect full repayment on these loans either through foreclosure of the underlying collateral, or through normal payments of principal and interest once the loans are taken off deferral status.

Total deposits increased by $427 million from $978 million to $1.4 billion in 2021. They acquired $177 million in deposits from the Feather River acquisition. Excluding those deposits, the bank attributes much of this increase to retention of proceeds from PPP loans, a more cautious consumer, and continued growth in our customer base. The increase in deposits includes increases of $266 million in demand deposits, $118 million in savings accounts, $152 million in money market accounts, and $28 million in time deposits.

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.

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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.