Plumas Bancorp Reports Record Second Quarter 2022 Results

Source: Nasdaq GlobeNewswire / 20 Jul 2022 09:00:02 America/New_York

RENO, Nevada, July 20, 2022 (GLOBE NEWSWIRE) -- Plumas Bancorp (Nasdaq:PLBC), the parent company of Plumas Bank, today announced earnings during the second quarter of 2022 of $5.7 million or $0.97 per share, an increase of $1.2 million from $4.5 million or $0.86 per share during the second quarter of 2021. Diluted earnings per share increased to $0.96 per share during the three months ended June 30, 2022 up from $0.85 per share during the quarter ended June 30, 2021.

For the six months ended June 30, 2022, the Company reported net income of $11.4 million or $1.95 per share, an increase of $2.5 million from $8.9 million or $1.72 per share earned during the six months ended June 30, 2021. Earnings per diluted share increased to $1.93 during the six months ended June 30, 2022 up $0.24 from $1.69 during the first six months of 2021. Earnings during 2022 set a record for any six month period in the Company’s history.

Return on average assets was 1.40% during the current quarter, down from 1.45% during the second quarter of 2021. Return on average equity increased to 19.0% for the three months ended June 30, 2022, up from 17.2% during the second quarter of 2021. Return on average assets was 1.41% during the six months ended June 30, 2022, down from 1.50% during the first half of 2021. Return on average equity increased to 18.3% for the six months ended June 30, 2022, up from 17.4% during the first half of 2021.

Balance Sheet Highlights
June 30, 2022 compared to June 30, 2021

Total assets increased by $353 million, or 28%, to $1.6 billion.
Cash and due from banks increased by $73 million, or 30%, to $318 million.
Gross Loans increased by $137 million, or 19%, to $862 million.
Investment securities increased by $116 million, or 47%, to $365 million.
Total deposits increased by $341 million, or 30%, to $1.5 billion.
Total equity increased by $9.4 million, or 9%, to $116 million.

President’s Comments

Andrew J. Ryback, director, president and chief executive officer of Plumas Bancorp and Plumas Bank stated, “The second quarter of 2022 resulted in strong earnings with the Fed rate increases improving returns on our investment and lending portfolios.”

Ryback continued, “July 1^st marked the one-year anniversary of our acquisition of Bank of Feather River. The addition of Yuba City to our footprint has expanded our ag lending portfolio and resulted in increased profits.”

Ryback concluded, “As we build our technological and geographical presence, we remain committed to our communities because Plumas Bank is HERE. For Good.”

Loans, Deposits, Investments and Cash

Mostly related to our acquisition of Feather River Bancorp (FRB) on July 1, 2021, gross loans, excluding loans held for sale, increased by $137 million, or 19%, from $725 million at June 30, 2021, to $862 million at June 30, 2022. Increases in loans included $94 million in commercial real estate loans, $59 million in agricultural loans, $31 million in construction loans and $6 million in residential real estate loans; these items were partially offset by a decrease of $51 million in commercial loans and $2 million in all other loan categories. Excluding PPP loan activity, commercial loans would have increased by $29 million. PPP loans totaled $8 million at June 30, 2022, and $88 million at June 30, 2021. Unamortized loan fees net of unamortized loan costs on PPP loans totaled $279 thousand at June 30, 2022.

Beginning in 2020 we instituted a loan forbearance program to assist borrowers with managing cash flows disrupted due to COVID-19; we ended this program in the fourth quarter of 2021 and there are no loan balances on deferral related to this program at June 30, 2022.

On June 30, 2022, approximately 78% 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 in which variable rate loans reprice can vary from one day to several years. Loans indexed to the prime interest rate were approximately 23% of the Company’s loan portfolio; these loans reprice within one day to three months of a change in the prime rate.

Total deposits increased by $341 million from $1.1 billion at June 30, 2021, to $1.5 billion at June 30, 2022. Deposits at our Yuba City, California branch, which was acquired from FRB, totaled $150 million at June 30, 2022. Excluding these deposits, we attribute much of this increase to Pandemic related economic stimulus, a more cautious consumer, and continued growth in our customer base. The increase in deposits includes increases of $163 million in demand deposits, $104 million in savings accounts, $55 million in money market accounts, and $19 million in time deposits. At June 30, 2022, 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 $116 million from $249 million at June 30, 2021, to $365 million at June 30, 2022. Excluding the effect of a $42 million increase in unrealized loss on investment securities, our investment security portfolio would have grown by $158 million. 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 increased by $73 million from $244 million at June 30, 2021, to $317 million at June 30, 2022.

Asset Quality

Nonperforming assets (which are comprised of nonperforming loans, other real estate owned (“OREO”) and repossessed vehicle holdings) at June 30, 2022 were $2.0 million, down from $7.3 million at June 30, 2021. Nonperforming assets as a percentage of total assets decreased to 0.12% at June 30, 2022 down from 0.58% at June 30, 2021. OREO decreased by $155 thousand from $524 thousand at June 30, 2021 to $369 thousand at June 30, 2022. Nonperforming loans were $1.6 million at June 30, 2022 and $6.8 million at June 30, 2021. Nonperforming loans as a percentage of total loans decreased to 0.18% at June 30, 2022, down from 0.94% at June 30, 2021.

The provision for loan losses increased from $625 thousand during the first half of 2021 to $700 thousand during the current period. Net charge-offs totaled $133 thousand and $399 thousand during the six months ended June 30, 2022 and 2021, respectively. The allowance for loan losses totaled $10.9 million at June 30, 2022 and $10.1 million at June 30, 2021. The allowance for loan losses as a percentage of total loans decreased from 1.40% at June 30, 2021 to 1.27% at June 30, 2022. The decrease in allowance as a percentage of total loans mostly relates to the loans acquired in the purchase of FRB. Excluding PPP loans, the allowance for loan losses as a percentage of total loans at June 30, 2022 and 2021 was 1.28% and 1.59%, respectively.

Shareholders’ Equity

Total shareholders’ equity increased by $9.4 million from $106.8 million at June 30, 2021, to $116.2 million at June 30, 2022. The $9.4 million includes earnings during the twelve-month period totaling $23.5 million, common stock issued in the acquisition of FRB totaling $18.7 million and stock option activity totaling $0.5 million. These items were partially offset by the payment of cash dividends totaling $3.5 million and a decrease in accumulated other comprehensive income of $29.8 million. The decrease in accumulated other comprehensive income resulted from an increase in the unrealized loss on our investment portfolio, net of tax of $30.6 million partially offset by an increase in the value of our interest rate swaps.

Net Interest Income and Net Interest Margin

Net interest income was $13.4 million for the three months ended June 30, 2022, an increase of $3.5 million from the same period in 2021. The increase in net interest income includes an increase of $3.5 million in interest income slightly offset by an increase of $37 thousand in interest expense. Interest and fees on loans, including loans held for sale, increased by $2.0 million as a decline of $447 thousand in fees net of costs on PPP loans was offset by growth in the loan portfolio and an increase in yield on the portfolio. During the current quarter we recorded amortization of loan fees net of loan costs on PPP loans totaling $389 thousand. This compares to $836 thousand during the second quarter of 2021. This includes normal amortization on our PPP portfolio and the effect of PPP loan forgiveness.

Including loans held for sale, average loan balances increased by $112 million, while the average yield on these loans increased by 30 basis points from 4.91% during the second quarter of 2021 to 5.21% during the current quarter. The increase in loan yield includes the effect of an increase in market rates during 2022 and an increase in the rate earned on loans tied to the prime interest rate partially offset by a decline in PPP fee income as described above. The average prime interest rate increased from 3.25% during the second quarter of 2021 to 3.94% during the current quarter.

Interest on investment securities increased by $896 thousand from the second quarter of 2021, related to an increase in average investment securities of $112 million to $337 million and an increase in yield on the investment portfolio from 1.86% during the second quarter of 2021 to 2.31% during the current quarter. Interest on cash balances increased by $609 thousand related to both an increase in the rate paid on these balances and an increase in average cash balances. The rate paid on cash balances increased from 0.10% during the second quarter of 2021 to 0.84% 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 0.11% during the second quarter of 2021 and 0.84% during the current quarter.

Average interest earning assets during the three months ended June 30, 2022 totaled $1.5 billion, an increase of $336 million from the same period in 2021. The average yield on interest earning assets increased by 16 basis points to 3.65%. Net interest margin for the three months ended June 30, 2022 increased 17 basis points to 3.57%, up from 3.40% for the same period in 2021.

Net interest income for the six months ended June 30, 2022 was $25.4 million, an increase of $5.0 million from the $20.4 million earned during the same period in 2021. Interest income increased by $5.1 million. Included in interest income during the current six month period were PPP fees net of costs of $1.0 million, a decrease of $1.5 million from $2.5 million during the six months ended June 30, 2021. The average yield on loans, including loans held for sale, decreased by 8 basis points from 5.21% during the first six months of 2021 to 5.13% during the current period.

Average interest earning assets during the current six month period totaled $1.5 billion, an increase of $376 million from the same period in 2021. This increase in average interest earning assets consisted of increases of $124 million in average loan balances, $117 million in average investment securities and $135 million in average cash balances. The average yield on interest earning assets declined by 24 basis points to 3.47% related to a decline in loan yield and a reduction in loans as a percentage of interest earning assets. Interest expense increased by $83 thousand. Net interest margin for the six months ended June 30, 2022 decreased 23 basis points to 3.39%, down from 3.62% for the same period in 2021.

Non-Interest Income/Expense

Non-interest income increased by $784 thousand to $2.7 million during the current quarter from $1.9 million during the three months ended June 30, 2021. The largest component of this increase was an increase in gain on sale of SBA loans of $634 thousand. We did not sell SBA 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 current quarter we sold $14.1 million in guaranteed portions of SBA loans and ended the quarter with loans held for sale totaling $4.6 million.

During the six months ended June 30, 2022, non-interest income totaled $6.3 million, an increase of $2.1 million from $4.2 million during the six months ended June 30, 2021. The largest component of this increase was an increase in gain on sale of loans of $1.7 million. During the six months ended June 30, 2022 we sold $38.2 million in guaranteed portions of SBA loans. This compares to sales of $7.4 million during the six months ended June 30, 2021.

During the three months ended June 30, 2022, total non-interest expense increased by $2.7 million from $5.3 million during the second quarter of 2021 to $8.0 million during the current quarter. The largest component of this increase was an increase in salary and benefit expense of $2.0 million. Occupancy and equipment costs increased by $207 thousand of which $163 thousand relates to the Yuba City branch.

During the three months ended June 30, 2021 the Company qualified for the Employee Retention Credit (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 $1.1 million during the second quarter of 2021 as a reduction of salary and benefit expense. The other two largest increases in salary and benefit expense were $625 thousand in salary expense and $266 thousand in bonus expense. The increase in salary expense includes the effect of the acquisition of Bank of Feather River as well as other additions to personnel and merit and promotional increases. Full time equivalent employees increased by 22 to 172 at June 30, 2022. The increase in bonus expense is consistent with the increase in income during the comparable quarters.

During the six months ended June 30, 2022 non-interest expense increased by $4.1 million. The largest components of this increase were $2.6 million in salary and benefit expense, $454 thousand in occupancy and equipment costs, $313 thousand in outside service fees and $210 thousand in deposit insurance expense. The increase in occupancy and equipment expense includes $313 thousand related to our Yuba City branch. The largest components of the increase in outside service fees were $103 thousand in debit card and ATM processing costs, $89 thousand in human resources administration and payroll processing and $51 thousand in online banking expense.

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 three loan production offices located in the California Counties of Butte and Placer 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,
	2022		2021		Dollar Change		Percentage Change
ASSETS
Cash and due from banks	$	317,657	$	244,456	$	73,201	29.9%
Investment securities	365,189		248,824		116,365		46.8%
Loans, net of allowance for loan losses	853,427		713,676		139,751		19.6%
Loans held for sale	4,646		11,472		(6,826)		(59.5)%
Premises and equipment, net	18,212		13,594		4,618		34.0%
Bank owned life insurance	16,031		13,701		2,330		17.0%
Real estate acquired through foreclosure	369		524		(155)		(29.6)%
Goodwill	5,502		-		5,502		100.0%
Accrued interest receivable and other assets	39,593		21,688		17,905		82.6%
Total assets	$	1,620,626	$	1,267,935	$	352,691	27.8%

LIABILITIES AND
SHAREHOLDERS’ EQUITY
Deposits	$	1,472,602	$	1,131,757	$	340,845		30.1%
Accrued interest payable and other liabilities	21,556		19,078		2,478		13.0%
Junior subordinated deferrable interest debentures	10,310		10,310		-		0.0%
Total liabilities	1,504,468		1,161,145		343,323		29.6%
Common stock	27,133		7,937		19,196		241.9%
Retained earnings	115,212		95,228		19,984		21.0%
Accumulated other comprehensive (loss) income, net	(26,187)		3,625		(29,812)		(822.4)%
Shareholders’ equity	116,158		106,790		9,368		8.8%
Total liabilities and shareholders’ equity	$	1,620,626	$	1,267,935	$	352,691	27.8%

PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)

FOR THE THREE MONTHS ENDED JUNE 30,	2022		2021		Dollar Change		Percentage Change

Interest income	$	13,717	$	10,183	$	3,534	34.7%
Interest expense	289		252		37		14.7%
Net interest income before provision for loan losses	13,428		9,931		3,497		35.2%
Provision for loan losses	400		250		150		60.0%
Net interest income after provision for loan losses	13,028		9,681		3,347		34.6%
Non-interest income	2,664		1,880		784		41.7%
Non-interest expense	8,033		5,332		2,701		50.7%
Income before income taxes	7,659		6,229		1,430		23.0%
Provision for income taxes	1,979		1,742		237		13.6%
Net income	$	5,680	$	4,487	$	1,193	26.6%

Basic earnings per share	$	0.97	$	0.86	$	0.11	12.8%
Diluted earnings per share	$	0.96	$	0.85	$	0.11	12.9%

PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)

FOR THE SIX MONTHS ENDED JUNE 30,	2022		2021		Dollar Change		Percentage Change

Interest income	$	26,033	$	20,917	$	5,116	24.5%
Interest expense	590		507		83		16.4%
Net interest income before provision for loan losses	25,443		20,410		5,033		24.7%
Provision for loan losses	700		625		75		12.0%
Net interest income after provision for loan losses	24,743		19,785		4,958		25.1%
Non-interest income	6,314		4,230		2,084		49.3%
Non-interest expense	15,707		11,624		4,083		35.1%
Income before income taxes	15,350		12,391		2,959		23.9%
Provision for income taxes	3,953		3,463		490		14.1%
Net income	$	11,397	$	8,928	$	2,469	27.7%

Basic earnings per share	$	1.95	$	1.72	$	0.23	13.4%
Diluted earnings per share	$	1.93	$	1.69	$	0.24	14.2%

PLUMAS BANCORP
SELECTED FINANCIAL INFORMATION
(Dollars in thousands, except per share data)
(Unaudited)

	Three Months Ended									Six Months Ended
	6/30/2022			3/31/2022			6/30/2021			6/30/2022			6/30/2021
EARNINGS PER SHARE
Basic earnings per share	$	0.97		$	0.98		$	0.86		$	1.95		$	1.72
Diluted earnings per share	$	0.96		$	0.97		$	0.85		$	1.93		$	1.69
Weighted average shares outstanding	5,843			5,824			5,197			5,834			5,192
Weighted average diluted shares outstanding	5,909			5,920			5,280			5,913			5,272
Cash dividends paid per share ¹	$	0.16		$	0.16		$	0.14		$	0.32		$	0.28

PERFORMANCE RATIOS (annualized for the three months)
Return on average assets	1.40		%	1.42		%	1.45		%	1.41		%	1.50		%
Return on average equity	19.0		%	17.6		%	17.2		%	18.3		%	17.4		%
Yield on earning assets	3.65		%	3.29		%	3.49		%	3.47		%	3.71		%
Rate paid on interest-bearing liabilities	0.16		%	0.17		%	0.19		%	0.16		%	0.19		%
Net interest margin	3.58		%	3.21		%	3.40		%	3.39		%	3.62		%
Noninterest income to average assets	0.66		%	0.91		%	0.61		%	0.78		%	0.71		%
Noninterest expense to average assets	1.98		%	1.90		%	1.73		%	1.94		%	1.95		%
Efficiency ratio ²	49.9		%	49.0		%	45.1		%	49.5		%	47.2		%

	6/30/2022			3/31/2022			6/30/2021			12/31/2021			12/31/2020
CREDIT QUALITY RATIOS AND DATA
Allowance for loan losses	$	10,919		$	10,402		$	10,128		$	10,352		$	9,902
Allowance for loan losses as a percentage of total loans	1.27		%	1.24		%	1.40		%	1.23		%	1.40		%
Allowance for loan losses as a percentage of total loans - excluding PPP loans	1.28		%	1.27		%	1.59		%	1.29		%	1.55		%
Nonperforming loans	$	1,551		$	4,733		$	6,817		$	4,863		$	2,536
Nonperforming assets	$	1,960		$	5,243		$	7,348		$	5,397		$	2,970
Nonperforming loans as a percentage of total loans	0.18		%	0.56		%	0.94		%	0.58		%	0.36		%
Nonperforming assets as a percentage of total assets	0.12		%	0.32		%	0.58		%	0.33		%	0.27		%
Year-to-date net charge-offs	$	133		$	250		$	399		$	675		$	516
Year-to-date net charge-offs as a percentage of average loans (annualized)	0.03		%	0.12		%	0.11		%	0.09		%	0.07		%

CAPITAL AND OTHER DATA
Common shares outstanding at end of period	5,845			5,837			5,199			5,817			5,182
Shareholders' equity	$	116,158		$	123,073		$	106,790		$	134,082		$	100,154
Book value per common share	$	19.87		$	21.08		$	20.54		$	23.05		$	19.33
Tangible common equity³	$	109,287		$	116,130		$	106,151		$	127,067		$	99,432
Tangible book value per common share⁴	$	18.70		$	19.90		$	20.42		$	21.84		$	19.19
Tangible common equity to total assets	6.7		%	7.2		%	8.4		%	7.9		%	8.9		%
Gross loans to deposits	58.5		%	57.1		%	65.0		%	58.3		%	72.9		%

PLUMAS BANK REGULATORY CAPITAL RATIOS
Tier 1 Leverage Ratio	8.7		%	8.5		%	9.0		%	8.4		%	9.2		%
Common Equity Tier 1 Ratio	14.4		%	14.8		%	15.0		%	14.4		%	14.2		%
Tier 1 Risk-Based Capital Ratio	14.4		%	14.8		%	15.0		%	14.4		%	14.2		%
Total Risk-Based Capital Ratio	15.5		%	16.0		%	16.2		%	15.5		%	15.4		%

(1) The Company paid a quarterly cash dividend of 16 cents per share on Febuary 15, 2022 and May 16, 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 assests, liabilites and shareholders' equity.

	For the Three Months Ended						For the Three Months Ended
	6/30/2022						6/30/2021
	Average				Yield/		Average				Yield/
	Balance		Interest		Rate		Balance		Interest		Rate
Interest-earning assets:
Loans ^{(2) (3)}	$	846,358	$	10,992	5.21	%	$	734,662	$	8,972	4.90	%
Loans held for sale	8,600		123		5.74	%	7,964		114		5.74	%
Investment securities	238,477		1,315		2.21	%	154,664		650		1.69	%
Non-taxable investment securities⁽¹⁾	98,552		626		2.55	%	70,586		395		2.24	%
Interest-bearing deposits	314,289		661		0.84	%	202,365		52		0.10	%
Total interest-earning assets	1,506,276		13,717		3.65	%	1,170,241		10,183		3.49	%
Cash and due from banks	48,852						29,517
Other assets	68,522						37,658
Total assets	$	1,623,650					$	1,237,416

Interest-bearing liabilities:
Money market deposits	255,088		56		0.09	%	197,020		59		0.12	%
Savings deposits	396,868		85		0.09	%	281,828		70		0.10	%
Time deposits	61,955		42		0.27	%	41,308		36		0.35	%
Total deposits	713,911		183		0.10	%	520,156		165		0.13	%
Junior subordinated debentures	10,310		90		3.50	%	10,310		86		3.35	%
Other interest-bearing liabilities	10,135		16		0.63	%	12,576		1		0.03	%
Total interest-bearing liabilities	734,356		289		0.16	%	543,042		252		0.19	%
Non-interest-bearing deposits	757,655						581,263
Other liabilities	11,935						8,669
Shareholders' equity	119,704						104,442
Total liabilities & equity	$	1,623,650					$	1,237,416
Cost of funding interest-earning assets ⁽⁴⁾					0.08	%					0.09	%
Net interest income and margin⁽⁵⁾			$	13,428	3.57	%			$	9,931	3.40	%

(1) Not computed on a tax-equivalent basis.
(2) Average nonaccrual loan balances of $3.4 million for 2022 and $3.9 million for 2021 are included in average loan balances for computational purposes.
(3) Net fees included in loan interest income for the three-month periods ended June 30, 2022 and 2021 were $200 thousand and $728 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 three-month periods indicated the distribution of consolidated average assests, liabilites and shareholders' equity.

	For the Six Months Ended						For the Six Months Ended
	6/30/2022						6/30/2021
	Average				Yield/		Average				Yield/
	Balance		Interest		Rate		Balance		Interest		Rate
Interest-earning assets:
Loans ^{(2) (3)}	$	838,866	$	21,302	5.12	%	$	725,207	$	18,724	5.21	%
Loans held for sale	15,624		429		5.54	%	5,010		143		5.76	%
Investment securities	226,609		2,314		2.06	%	141,485		1,207		1.72	%
Non-taxable investment securities⁽¹⁾	97,703		1,159		2.39	%	65,512		739		2.27	%
Interest-bearing deposits	333,615		829		0.50	%	198,622		104		0.11	%
Total interest-earning assets	1,512,417		26,033		3.47	%	1,135,836		20,917		3.71	%
Cash and due from banks	51,663						28,505
Other assets	64,634						37,129
Total assets	$	1,628,714					$	1,201,470

Interest-bearing liabilities:
Money market deposits	258,833		122		0.10	%	192,842		128		0.13	%
Savings deposits	390,812		167		0.09	%	268,992		136		0.10	%
Time deposits	63,045		88		0.28	%	40,951		74		0.36	%
Total deposits	712,690		377		0.11	%	502,785		338		0.14	%
Junior subordinated debentures	10,310		179		3.50	%	10,310		165		3.23	%
Other interest-bearing liabilities	11,987		34		0.57	%	15,212		4		0.05	%
Total interest-bearing liabilities	734,987		590		0.16	%	528,307		507		0.19	%
Non-interest-bearing deposits	755,979						561,368
Other liabilities	11,919						8,617
Shareholders' equity	125,829						103,178
Total liabilities & equity	$	1,628,714					$	1,201,470
Cost of funding interest-earning assets ⁽⁴⁾					0.08	%					0.09	%
Net interest income and margin ⁽⁵⁾			$	25,443	3.39	%			$	20,410	3.62	%

(1) Not computed on a tax-equivalent basis.
(2) Average nonaccrual loan balances of $4.2 million for 2022 and $3.1 million for 2021 are included in average loan balances for computational purposes.
(3) Net fees included in loan interest income for the six-month periods ended June 30, 2022 and 2021 were $511 thousand and $2.2 million, 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 componets of non-interest income for the three-month periods ended June 30, 2022 and 2021.

	For the Three Months Ended
	June 30,
	2022		2021		Dollar Change			Percentage Change
Interchange income	853		813		40			4.9	%
Gain on sale of loans, net	634		-		634			100.0	%
Service charges on deposit accounts	604		567		37			6.5	%
Loan servicing fees	212		196		16			8.2	%
Earnings on life insurance policies	93		84		9			10.7	%
Other	268		220		48			21.8	%
Total non-interest income	$	2,664	$	1,880	$	784		41.7	%

The following table presents the componets of non-interest expense for the three-month periods ended June 30, 2022 and 2021.

	For the Three Months Ended
	June 30,
	2022		2021		Dollar Change			Percentage Change
Salaries and employee benefits	$	4,238	$	2,231	$	2,007		90.0	%
Occupancy and equipment	1,111		904		207			22.9	%
Outside service fees	1,022		875		147			16.8	%
Professional fees	337		451		(114		)	(25.3	)%
Telephone and data communication	191		175		16			9.1	%
Advertising and shareholder relations	190		103		87			84.5	%
Deposit insurance	175		88		87			98.9	%
Armored car and courier	167		117		50			42.7	%
Director compensation and expense	134		106		28			26.4	%
Business development	127		61		66			108.2	%
Loan collection expenses	75		45		30			66.7	%
Amortization of Core Deposit Intangible	72		42		30			71.4	%
Other	194		134		60			44.8	%
Total non-interest expense	$	8,033	$	5,332	$	2,701		50.7	%

PLUMAS BANCORP
SELECTED FINANCIAL INFORMATION
(Dollars in thousands)
(Unaudited)

The following table presents the componets of non-interest income for the six-month periods ended June 30, 2022 and 2021.

	For the Six Months Ended
	June 30,
	2022		2021		Dollar Change			Percentage Change
Gain on sale of loans, net	2,335		591		1,744			295.1	%
Interchange income	1,615		1,528		87			5.7	%
Service charges on deposit accounts	1,170		1,107		63			5.7	%
Loan servicing fees	422		423		(1		)	(0.2	)%
Earnings on life insurance policies	187		175		12			6.9	%
Other	585		406		179			44.1	%
Total non-interest income	$	6,314	$	4,230	$	2,084		49.3	%

The following table presents the componets of non-interest expense for the six-month periods ended June 30, 2022 and 2021.

	For the Six Months Ended
	June 30,
	2022		2021		Dollar Change			Percentage Change
Salaries and employee benefits	$	8,320	$	5,755	$	2,565		44.6	%
Occupancy and equipment	2,248		1,794		454			25.3	%
Outside service fees	1,930		1,617		313			19.4	%
Professional fees	616		793		(177		)	(22.3	)%
Telephone and data communication	382		330		52			15.8	%
Deposit insurance	372		162		210			129.6	%
Armored car and courier	315		225		90			40.0	%
Advertising and shareholder relations	302		171		131			76.6	%
Director compensation and expense	275		197		78			39.6	%
Business development	242		127		115			90.6	%
Amortization of Core Deposit Intangible	144		84		60			71.4	%
Loan collection expenses	143		94		49			52.1	%
Other	418		275		143			52.0	%
Total non-interest expense	$	15,707	$	11,624	$	4,083		35.1	%

PLUMAS BANCORP
SELECTED FINANCIAL INFORMATION
(Dollars in thousands)
(Unaudited)

The following table shows the distribution of loans by type at June 30, 2022 and 2021.

			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
	6/30/2022		6/30/2022		6/30/2021		6/30/2021
Commercial	$	84,378	9.8	%	$	135,032	18.6	%
Agricultural	125,807		14.6	%	66,404		9.2	%
Real estate – residential	15,867		1.8	%	9,896		1.4	%
Real estate – commercial	447,980		52.0	%	354,068		48.8	%
Real estate – construction & land	60,891		7.1	%	29,556		4.1	%
Equity Lines of Credit	34,745		4.0	%	33,985		4.7	%
Auto	87,907		10.2	%	91,544		12.6	%
Other	4,577		0.5	%	4,350		0.6	%
Total Gross Loans	$	862,152	100	%	$	724,835	100	%

The following table shows the distribution of deposits by type at June 30, 2022 and 2021.

			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
	6/30/2022		6/30/2022		6/30/2021		6/30/2021
Non-interest bearing	$	764,907	52.0	%	$	601,692	53.2	%
Money Market	246,067		16.7	%	191,456		16.9	%
Savings	401,091		27.2	%	297,272		26.3	%
Time	60,537		4.1	%	41,337		3.6	%
Total Deposits	$	1,472,602	100	%	$	1,131,757	100	%

Plumas Bancorp Reports Record Second Quarter 2022 Results

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