Bank records best quarter ever in its 37-year history

The second quarter earnings for Plumas Bancorp, the parent company of Plumas Bank, represent the highest ever recorded for any quarter in the bank’s 37-year history. Earnings for the second quarter of 2017, which ended June 30, totaled $2.5 million, an increase of $704,000 from the $1.8 million earned during the second quarter of 2016.

“On behalf of the Board of Directors, I am very pleased to report excellent results for the second quarter and for the first six months of this year that ended June 30. Significant highlights include: record earnings; record levels of assets, loans and deposits; a 4.51 percent net interest margin for the second quarter; and a 52.8 percent efficiency ratio,” commented Andrew Ryback, director, president and chief executive officer of Plumas Bancorp and Plumas Bank.

“These accomplishments are the result of strategic investments in both technology for operational efficiencies as well as platforms to expand our deposit gathering capabilities, a highly productive and diversified lending operation, deliberate expense containment and further building of our non-interest income streams.

“Additionally, we continue to monitor the competitive landscape and look for opportunities for investment and growth. Our strict attention to both return on investment and expense control will ensure that we have the necessary capital to execute our long-term strategic plan and continue to produce growth and strong returns,” said Ryback.

He added, “On May 15, 2017, we paid a semi-annual $0.14 per share common stock dividend. This represents a 4-cent increase from the dividend paid on November 21, 2016, and is reflective of our directors’ desire to provide cash to shareholders, while at the same time retaining an appropriate level of capital to fund the bank’s ongoing growth. I am confident that we will continue to perform well throughout 2017 and, as always, we appreciate the support of our shareholders, clients and personnel.”

Loans, deposits, investments and cash

Gross loans increased 10 percent, $44.8 million, to $476 million this year from $431 million for the same period the year prior. The three largest areas of growth in the bank’s loan portfolio were $32 million in commercial real estate loans, $8 million in agricultural loans and $6 million in construction loans. The largest decrease in loans was $5 million in residential real estate loans.

Total deposits increased by $81.5 million, from $535 million last year to $616 million this year. This $81.5 million increase includes increases of $48.2 million in non-interest bearing demand deposits, $6 million in interest bearing transaction accounts and $32 million in money market and savings accounts. Time deposits declined by $4.7 million to $46.4 million representing 8 percent of total deposits. Non-interest bearing demand deposits totaled 42 percent of the bank’s total deposits as of June 30.

Total investment securities increased by $12.9 million, from $99.4 million last year for the same six-month period to $112.3 million this year. Cash and due from banks increased by $27.9 million from $41 million to $68.9 million.

Asset Quality

Nonperforming assets (which are comprised of nonperforming loans, other real estate owned (OREO) and repossessed vehicle holdings) were $3.8 million for this period, down from $5.8 million for the same period last year.

During the six months in 2017 and 2016, the bank recorded a provision for loan losses of $400,000. Net charge-offs totaled $94,000 and $48,000 during the six months ended June 30, 2017 and 2016, respectively. The allowance for loan losses totaled $6.9 million at June 30, 2017, and $6.4 million at June 30, 2016.

Plumas Bank at a glance

Founded in 1980, Plumas Bank is a locally owned and managed full-service community bank headquartered in Quincy. The bank operates 12 branches: 11 in Plumas, Lassen, Placer, Nevada, Modoc and Shasta counties and one branch in Reno. The bank also operates four loan production offices: two in Placer and Butte counties, one in Oregon and one in Arizona. Plumas Bank offers a wide range of financial and investment services to consumers and businesses. Go to plumasbank.com for more information.

Financial Highlights

Three months ending

June 30, 2017 compared to

June 30, 2016

Net income increased by $704,000 (38 percent) to $2.5 million.

Net interest income increased by $1 million to $7 million.

Six month period ending

June 30, 2017 compared to

June 30, 2016

Net income increased by $1.2 million (35 percent) to $4.6 million.

Net interest income increased by $1.8 million to $13 million.

Return on average equity