Plumas Bancorp reports record first quarter

Plumas Bancorp (Nasdaq: PLBC), the parent company of Plumas Bank, announced Wednesday record first quarter earnings of $7.6 million, or $1.30 per share, an increase of $1.9 million from $5.7 million, or $0.98 per share, during the first quarter of 2022.

Diluted earnings per share increased to $1.28 during the three months ended March 31, up from $0.97 per share during the first quarter 2022, according to the release. Return on average assets was 1.93% during the current quarter, up from 1.42% in 2022. Return on average equity was 25%, up from 17.6%.

According to the release:

• Net income increased by $1.9 million, or 33%, to $7.6 million.

• Net interest income increased by $5.1 million, or 43%, to $17.1 million.

• Gross loans increased by $77 million, or 9%, to $916 million.

• Investment securities increased by $168 million to $484 million.

• Total equity increased by $5.7 million, or 5% to $129 million.

“In light of the recent stresses in the financial sector, we want to provide assurance that Plumas Bank’s financial health remains strong,” Andrew J. Ryback, director, president and chief executive officer of Plumas Bancorp and Plumas Bank, said in the release.

“Our deposits, loans, and investments portfolios are all well diversified; we have low-cost core deposits; we carefully monitor criticized assets; we have no investments designated as held-to-maturity; we have higher asset yields with shorter durations compared to peers; and our bank’s capital position is strong and continues to grow.”

Gross loans increased by $77 million, or 9%, from $839 million at March 31, 2022, to $916 million at March 31, 2023. Increases in loans included, $98 million in commercial real estate loans, $14 million in automobile loans and $3 million in equity lines of credit; these items were partially offset by a decrease of $20 million in commercial loans, $13 million in construction loans and $5 million in agricultural loans.

The decrease in commercial loans include a decline in PPP loans from $18.7 million at March 31, 2022 to $283,000 at March 31, 2023.

Total deposits decreased by $61 million to $1.4 billion at March 31, 2023. In the release, Plumas attributed much of the decrease to the current interest rate environment as some deposits left for higher rates and some customers are reluctant to borrow to fund operating expense and instead have drawn down their excess deposit balances.

Total investment securities increased by $168 million from $316 million at March 31, 2022, to $484 million at March 31, 2023. The bank’s investment security portfolio consists of debt securities issued by U.S. government agencies, U.S. government-sponsored agencies and municipalities.

Cash and due from banks decreased by $283 million from $389 million at March 31, 2022, to $106 million at March 31, 2023.