Plumas Bank’s financial picture continues to strengthen

Plumas Bancorp, the parent company of Plumas Bank, once again reported record earnings during the three and six month periods ending June 30.

Earnings during the second quarter of 2018 totaled $3.4 million, an increase of $904,000 over the same quarter in 2017. This represents the highest level of earnings for any quarter in the history of the bank.

For the six-month period that ended June 30, 2018, the bank reported a record net income of $6.7 million, which is an increase of $2.1 million over the same period the prior year. “On behalf of the board of directors, I am very pleased to report record results for these two quarters in 2018. The strength of our performance reflects strong growth in both our loan and deposit portfolios as well as in net interest margin,” stated Director, President and Chief Executive Officer Andrew Ryback. “In addition, our asset quality is strong and we remain focused on controlling overhead costs. We are very encouraged by the improvement in all of our return and performance metrics, both quarter over quarter as well as year over year.”

In a press release, Ryback stated, “The vision and strength of our board and executive team is what drives our success. We continue to monitor the competitive landscape and make strategic investments in our business, which are well aligned with the interests of our shareholders, employees, clients and communities.

“First, for our shareholders, we paid a record level semi-annual $0.18 per share common stock dividend in May. Next, for our employees, we increased the Company’s minimum wage to $15 per hour to help in our effort of recruiting and retaining the most talented and hardworking staff at all levels. For our clients, we’ve announced that we intend to expand our footprint into Nevada by acquiring the Carson City branch of Mutual of Omaha Bank, pending regulatory approval. We’ve also hired two experienced commercial agricultural lending professionals who will be tremendous assets to our clients. One loan officer will serve the Carson City/ Sierra region area and the other will serve the Red Bluff and Tehama county area.

“Finally, for our communities, we continue to give back in creative ways that engage our local citizens. In fact, we are proud to share that in the past year, our bank has provided over $100 thousand in cash contributions to community fund-raising activities and our employees have spent more than 1,660 volunteer hours reaching out to over 50 organizations within our communities. As we move forward, we will continue to look for novel and inspiring ways to demonstrate to our clients, communities, employees and shareholders that, as our slogan emphasizes: Plumas Bank is  HERE. For Good.”

Loans, deposits, investments and cash

Gross loans for the six-month period increased by $39.7 million, from $476 million to $516 million at June 30, 2018. The four largest areas of growth in the bank’s loan portfolio were $15 million in commercial real estate loans, $12 million in auto loans, $10 million in commercial loans and $9 million in agricultural loans. The largest decrease in loans was $4 million in residential real estate loans.

Total deposits increased by $62.9 million from $616 million to $679 million.  This increase includes increases of $29.6 million in non-interest bearing demand deposits, $7.7 million in interest bearing transaction accounts and $30.9 million in money market and savings accounts. Time deposits declined by $5.3 million to $41.2 million or 7 percent of total deposits. Non-interest bearing demand deposits totaled 42 percent of the bank’s total deposits.

Expenses

During the three-month quarter that ended June, 2018, total non-interest expenses increased by $337,000, or 7 percent, to $5.2 million, up from $4.9 million for the comparable period in 2017. During the first six months of 2018, non-interest expense increased by $704,000 to $10.7 million, up from $10 million during the same period in 2017.

The company’s single largest expense is salary and benefit costs. During the second quarter of 2018, salary and benefits increased by $59 thousand, or 2 percent, to $2.9 million and during the first six months salary and benefits increased by $245,000, or 4 percent, to $6 million.

Bank’s heritage

Founded in 1980, Plumas Bank is a locally owned and managed full-service community bank headquartered in Quincy. The bank operates 12 branches: 11 which are located in Plumas, Lassen, Placer, Nevada, Modoc and Shasta counties and one branch in Nevada. The bank also operates four loan production offices in Placer, Butte and Tehama counties, and one located in Oregon.

Financial Highlights

June, 2018, compared 2017

Total assets increased by $75 million, to a record level of $765 million.

Gross loans increased by $40 million, to a record level of $516 million.

Total deposits increased by $63 million, to a record level of $679 million.

Total equity increased by $6.6 million to $59 million.

Book value per share increased by $1.12, or 11%, to $11.62, up from $10.50.

Income Statement

Three-month period ending June, 2018, compared to 2017

Net income increased by $904 thousand to $3.4 million.

Net interest income increased by $1.1 million to $8 million.

Six-month period ending June, 2018, compared to 2017

Net income increased by $2.1 million or 46%, to $6.7 million.

Net interest income increased by $2.2 million to $15.6 million.

Return on average equity increased to 23.6% from 18.3%.

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