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
[email protected]