[Earnings and Performance Overview](index=1&type=section&id=PLUMAS%20BANCORP%20REPORTS%20SECOND%20QUARTER%202024%20EARNINGS) Plumas Bancorp's Q2 and YTD 2024 earnings show mixed results, with strategic transactions impacting profitability and operational highlights [Second Quarter 2024 Earnings Highlights](index=1&type=section&id=Second%20Quarter%202024%20Earnings%20Highlights) Net income slightly increased in Q2 2024 to $6.8 million, while six-month net income decreased, and key profitability ratios declined Net Income and Diluted EPS | Metric | Q2 2024 | Q2 2023 | Change | Six Months 2024 | Six Months 2023 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income | $6.8M | $6.7M | +$0.1M | $13.0M | $14.3M | -$1.3M | | Diluted EPS | $1.14 | $1.12 | +$0.02 | $2.19 | $2.41 | -$0.22 | Performance Ratios | Performance Ratio | Q2 2024 | Q2 2023 | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Return on Average Assets (ROA) | 1.67% | 1.70% | 1.61% | 1.81% | | Return on Average Equity (ROE) | 17.1% | 20.5% | 16.7% | 22.7% | [President's Comments](index=1&type=section&id=President%27s%20Comments) The President highlighted deposit stabilization, strong SBA loan growth, benefits from securities restructuring, and Russell 2000 index inclusion - Key operational and strategic points mentioned by the CEO include: - Deposits stabilized during the second quarter[5](index=5&type=chunk) - Continued loan growth with strong SBA production, currently focused on fixed-rate 7(a) loans[6](index=6&type=chunk) - The restructured securities portfolio's increased yield is offsetting higher rent expenses from the sale-leaseback transaction[7](index=7&type=chunk) - The company was included again in the Russell 2000 index, which is expected to improve stock liquidity[8](index=8&type=chunk) - Plumas Bank received several industry awards, recognizing its strong performance across various metrics compared to peer institutions[9](index=9&type=chunk)[12](index=12&type=chunk) [Key Transactions: Sales/Leaseback and Investment Restructuring](index=2&type=section&id=Key%20Transactions%3A%20Sales%2FLeaseback%20and%20Investment%20Restructuring) The company executed a sale-leaseback of nine properties for a $19.9 million gain, offsetting a $19.8 million loss from selling lower-yielding securities to reinvest at higher yields - The company sold nine branch properties for approximately **$25.7 million**, resulting in a net gain of **$19.9 million**[9](index=9&type=chunk)[10](index=10&type=chunk) - Concurrently, it entered into a 15-year lease agreement for these properties with an initial annual rent of about **$2.4 million**[10](index=10&type=chunk) - To offset the gain, the company sold **$115 million** in investment securities with a **2.24% yield**, realizing a **$19.8 million loss**[11](index=11&type=chunk) - It then purchased **$120 million** in new securities with a much higher weighted average tax equivalent yield of **5.25%**[11](index=11&type=chunk) [Financial Condition Analysis](index=1&type=section&id=Financial%20Condition%20Analysis) This section analyzes the company's balance sheet, asset quality, liquidity, and capital resources as of June 30, 2024 [Balance Sheet Analysis](index=1&type=section&id=Balance%20Sheet%20Analysis) Total assets grew 4.4% to $1.64 billion, driven by loan growth, while deposits declined and total equity increased significantly by 28% Balance Sheet Item Overview | Balance Sheet Item | June 30, 2024 | June 30, 2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Gross Loans | $997 million | $935 million | +$62 million | +7% | | Total Deposits | $1.3 billion | $1.4 billion | -$91 million | -6.5% | | Total Equity | $165 million | $128.6 million | +$36.6 million | +28% | | Book Value Per Share | $28.01 | $21.92 | +$6.09 | +28% | [Loans, Deposits, Investments and Cash](index=3&type=section&id=Loans%2C%20Deposits%2C%20Investments%20and%20Cash) Gross loans increased by $62 million, primarily in commercial real estate, while total deposits decreased by $91 million due to rate-seeking customers - Gross loans increased by **7% YoY**, driven by growth in commercial real estate (+$71M) and construction loans (+$12M), partially offset by a decrease in automobile loans (-$22M)[13](index=13&type=chunk) - Total deposits fell by **$91 million**, with decreases in demand deposits (-$46M) and savings deposits (-$51M)[15](index=15&type=chunk) - The company attributes this deposit decline to the interest rate environment, with non-interest-bearing deposits constituting **51% of total deposits**[15](index=15&type=chunk) - Total investment securities decreased by **$24 million** to **$445 million**, while cash and due from banks increased by **$18 million** to **$110 million**[16](index=16&type=chunk) [Asset Quality](index=3&type=section&id=Asset%20Quality) Asset quality improved with nonperforming assets decreasing to 0.56% of total assets, and the allowance for credit losses increased to $14.1 million Asset Quality Metrics | Asset Quality Metric | June 30, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Nonperforming Assets | $9.1 million | $9.6 million | | Nonperforming Assets / Total Assets | 0.56% | 0.61% | | Nonperforming Loans / Total Loans | 0.90% | 1.02% | - The provision for credit losses for the first half of 2024 was **$1.7 million**, down from **$2.9 million** in the first half of 2023[18](index=18&type=chunk) Allowance for Credit Losses (in thousands) | Allowance for Credit Losses (in thousands) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Beginning Balance | $12,867 | $10,717 | | Provision | $1,825 | $2,550 | | Net Charge-offs | ($610) | ($411) | | Ending Balance | $14,082 | $13,385 | [Shareholders' Equity](index=4&type=section&id=Shareholders%27%20Equity) Total shareholders' equity significantly increased by $36.6 million to $165.2 million, driven by net earnings and a positive change in comprehensive loss - The **$36.6 million** increase in shareholders' equity over the twelve-month period was composed of: - **+$28.5 million** from earnings[23](index=23&type=chunk) - **+$13.3 million** from a decrease in accumulated other comprehensive loss[23](index=23&type=chunk) - **+$0.9 million** from stock activity[23](index=23&type=chunk) - **-$6.1 million** from cash dividends[23](index=23&type=chunk) [Liquidity and Capital Resources](index=4&type=section&id=Liquidity%20and%20Capital%20Resources) The company manages liquidity through BTFP borrowings and substantial unused credit lines, maintaining adequate resources for future operations - The company utilized the Bank Term Funding Program (BTFP), borrowing an additional **$25 million** in January 2024 to bring the total outstanding to **$105 million** at a rate of **4.85%**, maturing in January 2025[24](index=24&type=chunk) - The company has significant available borrowing capacity, including **$235 million** from the FHLB and **$70 million** from correspondent banks, with no outstanding balances on these lines as of June 30, 2024[26](index=26&type=chunk) - Uninsured deposits are estimated at **$423 million**, of which **$100 million** are collateralized public funds[27](index=27&type=chunk) [Results of Operations](index=5&type=section&id=Results%20of%20Operations) This section details the company's net interest income, net interest margin, and non-interest income and expense for Q2 and the first half of 2024 [Net Interest Income and Net Interest Margin](index=5&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income increased for both periods, driven by higher loan and investment yields, leading to an expanded net interest margin of 4.89% in Q2 2024 Net Interest Income and Margin | Metric | Q2 2024 | Q2 2023 | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $18.4M | $17.2M | $35.9M | $34.4M | | Net Interest Margin | 4.89% | 4.69% | 4.76% | 4.66% | [Three Months Ended June 30, 2024](index=5&type=section&id=Three%20Months%20Ended%20June%2030%2C%202024%20-%20NII) Q2 2024 net interest income rose by $1.2 million to $18.4 million, with higher loan and investment yields offsetting increased interest expense - Interest income on loans increased by **$2.0 million** due to a **$61 million** increase in average balances and a **48 bps** rise in average yield to **6.32%**[29](index=29&type=chunk)[30](index=30&type=chunk) - Interest income on investment securities increased by **$669 thousand**, with the average yield rising **86 bps** to **4.11%**, reflecting the portfolio restructuring[31](index=31&type=chunk) - Total interest expense increased by **$1.8 million**, driven by higher market rates, a time deposit promotion, and **$1.4 million** in interest on BTFP borrowings[33](index=33&type=chunk)[35](index=35&type=chunk) [Six Months Ended June 30, 2024](index=6&type=section&id=Six%20Months%20Ended%20June%2030%2C%202024%20-%20NII) For the first half of 2024, net interest income grew by $1.5 million to $35.9 million, supported by higher loan yields despite increased interest expense - Interest income on loans for the six-month period increased by **$3.9 million**, as average loan balances grew by **$55 million** and the average yield increased by **48 bps** to **6.21%**[38](index=38&type=chunk) - Interest expense for the six-month period increased by **$3.7 million**, with the average rate on interest-bearing liabilities rising from **0.46% to 1.39%**[40](index=40&type=chunk) - Interest on borrowings, primarily BTFP, accounted for **$2.8 million** of this expense[43](index=43&type=chunk) [Non-Interest Income and Expense](index=7&type=section&id=Non-Interest%20Income%20and%20Expense) Q2 2024 non-interest income was stable, while non-interest expense rose due to salaries and occupancy costs, with a YTD decrease in non-interest income due to a prior-year gain [Three Months Ended June 30, 2024](index=7&type=section&id=Three%20Months%20Ended%20June%2030%2C%202024%20-%20Non-Interest) Non-interest income remained stable at $2.2 million, while non-interest expense increased by $1.3 million, mainly due to higher salaries and occupancy costs - Non-interest income was stable at **$2.2 million**, with minor fluctuations across categories[44](index=44&type=chunk) - Non-interest expense rose by **$1.3 million**, with the largest drivers being a **$417k** increase in salaries/benefits and a **$696k** increase in occupancy/equipment costs[45](index=45&type=chunk) [Six Months Ended June 30, 2024](index=7&type=section&id=Six%20Months%20Ended%20June%2030%2C%202024%20-%20Non-Interest) Non-interest income decreased by $1.7 million due to a non-recurring prior-year gain, while non-interest expense increased by $2.5 million from salaries and occupancy - The **$1.7 million** decrease in non-interest income was primarily due to a **$1.7 million** gain on termination of interest rate swaps in the prior-year period that did not recur[46](index=46&type=chunk) - Non-interest expense increased by **$2.5 million**, led by a **$716k** rise in salary/benefits and a **$1.0M** increase in occupancy/equipment costs from the sale-leaseback[47](index=47&type=chunk) [Financial Statements and Supplementary Data](index=9&type=section&id=Financial%20Statements%20and%20Supplementary%20Data) This section provides detailed unaudited consolidated financial statements and supplementary data for Plumas Bancorp as of and for periods ended June 30, 2024 [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents the company's assets, liabilities, and shareholders' equity, showing total assets increased 4.4% to $1.64 billion as of June 30, 2024 Condensed Consolidated Balance Sheets (in thousands) | (In thousands) | June 30, 2024 | June 30, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$1,642,097** | **$1,572,985** | | Gross Loans | $997,334 | $935,214 | | Total Deposits | $1,304,587 | $1,395,160 | | Borrowings | $120,000 | $10,000 | | **Total Liabilities** | **$1,476,942** | **$1,444,427** | | **Shareholders' Equity** | **$165,155** | **$128,558** | [Condensed Consolidated Statements of Income](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Details the company's revenues and expenses, reporting net income of $6.8 million for Q2 2024 and $13.0 million for the first six months Condensed Consolidated Statements of Income (Three Months Ended June 30, in thousands) | For the Three Months Ended June 30, (In thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Net interest income | $18,405 | $17,239 | | Provision for credit losses | $925 | $1,350 | | Non-interest income | $2,202 | $2,143 | | Non-interest expense | $10,396 | $9,098 | | **Net income** | **$6,786** | **$6,660** | Condensed Consolidated Statements of Income (Six Months Ended June 30, in thousands) | For the Six Months Ended June 30, (In thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Net interest income | $35,862 | $34,388 | | Provision for credit losses | $1,746 | $2,875 | | Non-interest income | $4,342 | $6,068 | | Non-interest expense | $20,793 | $18,323 | | **Net income** | **$13,040** | **$14,285** | [Selected Financial Information](index=11&type=section&id=Selected%20Financial%20Information) Provides key performance ratios, credit quality data, capital ratios, and detailed components of income and expense for deeper financial insight Selected Ratios | Selected Ratios | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Return on average assets | 1.67% | 1.70% | | Net interest margin | 4.89% | 4.69% | | Efficiency ratio | 50.4% | 46.9% | | Nonperforming assets to total assets | 0.56% | 0.61% | | Tier 1 Leverage Ratio (Plumas Bank) | 11.3% | 10.3% | [Loan and Deposit Composition](index=16&type=section&id=Loan%20and%20Deposit%20Composition) Details the loan portfolio, with commercial real estate at 59.0%, and deposit base, where non-interest-bearing deposits represent 51.4% of total Loan Type (June 30, 2024) | Loan Type (June 30, 2024) | Balance (in thousands) | % of Total | | :--- | :--- | :--- | | Real estate – commercial | $588,332 | 59.0% | | Agricultural | $123,661 | 12.4% | | Auto | $80,751 | 8.1% | | Commercial | $81,170 | 8.1% | | **Total Gross Loans** | **$997,334** | **100%** | Deposit Type (June 30, 2024) | Deposit Type (June 30, 2024) | Balance (in thousands) | % of Total | | :--- | :--- | :--- | | Non-interest bearing | $670,652 | 51.4% | | Savings | $322,081 | 24.7% | | Money Market | $214,063 | 16.4% | | Time | $97,791 | 7.5% | | **Total Deposits** | **$1,304,587** | **100%** |

Shares of Plumas Bancorp rallied for the second consecutive trading session. With the Federal Reserve keeping an eye on employment reports and cooling inflation numbers, market participants are projecting interest rate cuts as early as September. Thus, for banks reeling under aggressive monetary tightening, this is a positive development. As the rates come down, so will banks' funding costs. Moreover, given the soft landing of the U.S. economy, the lending scenario is expected to improve further. These posi ...

Core Insights - Plumas Bancorp has been included in the Russell 2000 Index, which is significant for small-cap companies and can enhance stock liquidity due to passive investing trends [1][3] - The Russell indexes, now in their 40th year, are designed to reflect the dynamic US economy and undergo annual rebalancing to maintain accurate benchmarks [1][4] Company Overview - Plumas Bancorp is a bank holding company headquartered in Reno, Nevada, with its subsidiary, Plumas Bank, being a community bank founded in 1980 [6] - Plumas Bank operates 15 branch offices in Northeastern California and Northern Nevada, and is recognized as one of the top-performing community banks in the country [6] Industry Context - The Russell 2000 Index is widely utilized by investment managers and institutional investors for index funds and as benchmarks for active investment strategies, with approximately $10.5 trillion in assets benchmarked against the Russell US indexes as of December 2023 [4][8] - FTSE Russell, the provider of the Russell indexes, has been a leading global provider of benchmarking and analytics for over 40 years, serving a diverse range of investors [7][8]

PART I – FINANCIAL INFORMATION [Financial Statements](index=2&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements for Plumas Bancorp as of March 31, 2024, and for the three-month period then ended, including balance sheets, income statements, and cash flows [Condensed Consolidated Balance Sheets](index=2&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $1.64 billion by March 31, 2024, driven by cash and loans, while liabilities and shareholders' equity also grew Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$1,640,333** | **$1,610,416** | | Cash and cash equivalents | $128,231 | $85,655 | | Investment securities available for sale, net | $447,445 | $489,181 | | Loans, net | $966,141 | $948,604 | | **Total Liabilities** | **$1,478,842** | **$1,463,099** | | Total deposits | $1,299,688 | $1,333,655 | | Other borrowings | $120,000 | $90,000 | | **Total Shareholders' Equity** | **$161,491** | **$147,317** | [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net income for Q1 2024 was $6.3 million, a decrease from $7.6 million in Q1 2023, primarily due to a significant loss on investment securities sales offsetting a large gain on building sales Q1 Income Statement Highlights (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net interest income | $17,457 | $17,149 | | Provision for Credit Losses | $821 | $1,525 | | Total non-interest income | $2,140 | $3,925 | | *Gain on sale of buildings* | *$19,854* | *$ -* | | *Loss on sale of investment securities* | *($19,826)* | *$ -* | | Total non-interest expenses | $10,397 | $9,224 | | **Net income** | **$6,254** | **$7,626** | | **Diluted earnings per share** | **$1.05** | **$1.28** | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was $9.2 million, while investing activities provided $42.3 million, and financing activities used $8.9 million, resulting in a net increase in cash of $42.6 million Q1 Cash Flow Summary (in thousands) | Cash Flow Category | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $9,162 | $14,838 | | Net cash provided by (used in) investing activities | $42,333 | ($38,178) | | Net cash used in financing activities | ($8,919) | ($54,410) | | **Increase (decrease) in cash and cash equivalents** | **$42,576** | **($77,750)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section details accounting policies and specifics for financial statement figures, covering investment securities, loan portfolio, credit losses, commitments, and fair value measurements - During Q1 2024, the company sold 155 available-for-sale investment securities for proceeds of **$114.8 million**, recording a net loss of **$19.8 million**, as part of a balance sheet restructuring[28](index=28&type=chunk) - Total loans increased to **$976.2 million** at March 31, 2024, from **$958.6 million** at year-end 2023, with the allowance for credit losses at **$13.2 million**, or **1.35%** of total loans[37](index=37&type=chunk) - As of March 31, 2024, the company had outstanding loan commitments of **$165.6 million**, a decrease from **$174.6 million** at the end of 2023[59](index=59&type=chunk) - In Q1 2024, **107,200** stock options were granted under the 2022 Equity Incentive Plan, with total unrecognized compensation cost related to non-vested stock options at **$1.7 million**[67](index=67&type=chunk)[71](index=71&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=32&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses Q1 2024 financial performance, highlighting a balance sheet restructuring involving a sale-leaseback and investment portfolio repositioning, which impacted net income [Sales/Leaseback and Investment Restructuring](index=32&type=section&id=Sales%2FLeaseback%20and%20Investment%20Restructuring) In Q1 2024, the company completed a sale-leaseback of nine branch properties for $25.7 million, generating a $19.9 million net gain, and used proceeds to reposition its investment portfolio by selling lower-yielding securities at a loss and reinvesting in higher-yielding ones - Completed the sale of nine branch properties for **$25.7 million**, realizing a net gain of **$19.9 million**[101](index=101&type=chunk) - The gain on the property sale was largely offset by a **$19.8 million** loss from the sale of **$115 million** in investment securities[103](index=103&type=chunk) - The company reinvested proceeds into **$120 million** of new investment securities with a weighted average tax equivalent yield of **5.25%**, compared to the **2.24%** yield on the securities sold[103](index=103&type=chunk) [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Net income for Q1 2024 decreased to $6.3 million from $7.6 million in Q1 2023, driven by lower non-interest income and higher non-interest expenses, while net interest income slightly increased Q1 Performance Summary | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income | $6.3 million | $7.6 million | | Annualized Return on Average Assets (ROA) | 1.55% | 1.93% | | Annualized Return on Average Equity (ROE) | 16.4% | 25.0% | | Net Interest Margin | 4.62% | 4.64% | - Net interest income increased slightly due to a **$49 million** increase in average loan balances and a **46 basis point** increase in average loan yield to **6.09%**[107](index=107&type=chunk) - Interest expense rose significantly to **$2.6 million** from **$638,000** in the prior year, driven by higher market rates and an increase in borrowings[109](index=109&type=chunk) [Financial Condition](index=39&type=section&id=Financial%20Condition) Total assets grew by $29.9 million to $1.6 billion, with gross loans increasing to $976 million, while total deposits decreased by $34.0 million to $1.3 billion, leading to increased borrowings and a rise in shareholders' equity Loan Portfolio Composition (in thousands) | Loan Category | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Real estate – commercial | $562,870 | $544,339 | | Agricultural | $123,239 | $129,389 | | Auto | $89,399 | $98,132 | | Commercial | $82,136 | $74,271 | | **Total Gross Loans** | **$976,212** | **$958,564** | Deposit Composition (in thousands) | Deposit Category | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Non-interest bearing | $665,975 | $692,768 | | Savings | $328,781 | $335,050 | | Money Market | $214,257 | $214,185 | | Time | $90,675 | $91,652 | | **Total Deposits** | **$1,299,688** | **$1,333,655** | - The company terminated its indirect auto loan program in Q4 2023 to improve its loan loss risk profile and consumer compliance risk profile[125](index=125&type=chunk) [Analysis of Asset Quality and Allowance for Credit Losses](index=40&type=section&id=Analysis%20of%20Asset%20Quality%20and%20Allowance%20for%20Credit%20Losses) Asset quality remained stable, with nonperforming loans slightly increasing to $5.6 million (0.57% of total loans) and the allowance for credit losses rising to $13.2 million (1.35% of total loans) Nonperforming Assets (in thousands) | Category | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Nonaccrual loans | $5,610 | $4,820 | | Other real estate owned | $357 | $357 | | **Total nonperforming assets** | **$6,000** | **$5,315** | | Nonperforming assets to total assets | 0.37% | 0.33% | - The allowance for credit losses was **$13.2 million**, or **1.35%** of total loans, at March 31, 2024[134](index=134&type=chunk) - Substandard loans decreased by **$0.3 million** to **$21.4 million**, while special mention loans increased by **$1.3 million** to **$10.6 million**[139](index=139&type=chunk) [Capital Resources](index=47&type=section&id=Capital%20Resources) The company maintains a strong, well-capitalized position, with shareholders' equity increasing to $161.5 million and regulatory capital ratios well above minimum requirements Bank Regulatory Capital Ratios | Ratio | March 31, 2024 | Well-Capitalized Minimum | | :--- | :--- | :--- | | Common Equity Tier 1 Ratio | 16.1% | 6.5% | | Tier 1 Leverage Ratio | 11.0% | 5.0% | | Tier 1 Risk-Based Capital Ratio | 16.1% | 8.0% | | Total Risk-Based Capital Ratio | 17.4% | 10.0% | - A quarterly cash dividend of **$0.27** per share was paid on February 15, 2024[157](index=157&type=chunk) [Liquidity](index=48&type=section&id=Liquidity) The company maintains a solid liquidity position, primarily through customer deposits and significant borrowing capacity from the FHLB and correspondent banks - Total available borrowing capacity from the FHLB is **$237 million**, with no outstanding balance at quarter-end[166](index=166&type=chunk) - The company had **$105 million** outstanding under the Bank Term Funding Program (BTFP) at March 31, 2024[154](index=154&type=chunk) - Estimated uninsured deposits totaled **$400 million**, of which **$94 million** represents collateralized public funds[149](index=149&type=chunk)[168](index=168&type=chunk) [Controls and Procedures](index=50&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of March 31, 2024[172](index=172&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[173](index=173&type=chunk) PART II — OTHER INFORMATION [Legal Proceedings](index=51&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is party to claims and legal proceedings arising in the ordinary course of business, but management believes the ultimate liability will not have a material adverse effect on its financial condition or results of operations - The company states that any potential liability from ordinary course legal proceedings is not expected to be material[176](index=176&type=chunk) [Risk Factors](index=51&type=section&id=ITEM%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors previously disclosed in the company's 2023 Annual Report on Form 10-K - No material changes from the risk factors included within the Company's 2023 Annual Report are reported[177](index=177&type=chunk)

The 2023 quarter included a one-time gain of $1.7 million on termination of interest rate swaps. Excluding this gain, non-GAAP income for the first quarter of 2023 would have been $6.4 million, resulting in diluted earnings per share of $1.08 and return on average assets of 1.63%. Quarter-over-quarter results reflect the termination of interest rate swaps resulting in a one-time gain in the first quarter of 2023. Non-performing loans are well-collateralized, and we expect resolution on significant amounts i ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2023 or ☐ Transaction report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number: 000-49883 PLUMAS BANCORP (Exact name of Registrant as specified in its charter) California 75-2987096 (State or other jurisdiction of incorporation or organization) (IRS Employer I ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) COMMISSION FILE NUMBER: 000-49883 PLUMAS BANCORP (Exact Name of Registrant as Specified in Its Charter) California 75-2987096 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 5525 Kietzke Lane, Suite 100, Reno, Nevada 89511 (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, Including Area Code (775) 786-0907 Indicate by check mark whe ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) COMMISSION FILE NUMBER: 000-49883 PLUMAS BANCORP (Exact Name of Registrant as Specified in Its Charter) California 75-2987096 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 5525 Kietzke Lane, Suite 100, Reno, Nevada 89511 (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, Including Area Code (775) 786-0907 Indicate by check mark whe ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) COMMISSION FILE NUMBER: 000-49883 PLUMAS BANCORP (Exact Name of Registrant as Specified in Its Charter) California 75-2987096 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 5525 Kietzke Lane, Suite 100, Reno, Nevada 89511 (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, Including Area Code (775) 786-0907 Indicate by check mark whe ...

Dividend Distribution and Shareholder Returns - As of December 31, 2022, the maximum amount available for dividend distribution was approximately $49.1 million, subject to California Financial Code restrictions[64] - The Company is subject to certain covenants that restrict its ability to pay dividends and repurchase shares of common stock[65] - Future cash dividends by the Bank will depend on management's assessment of capital requirements and other factors[63] - The company's ability to pay dividends is primarily dependent on the operations of the Bank, which is subject to legal limitations on extending credit and paying dividends[115] - The company paid cash dividends of $3,737,000 in 2022, up from $3,081,000 in 2021[300] Financial Performance - The net income for 2022 was $26.44 million, a 25.8% increase from $21.01 million in 2021[289] - Basic earnings per common share increased to $4.53 in 2022 from $3.82 in 2021, reflecting a growth of 18.6%[289] - Net interest income after provision for loan losses rose to $57.2 million in 2022, up from $45.8 million in 2021, representing a year-over-year increase of 24.9%[289] - Non-interest income increased to $11.05 million in 2022, compared to $8.72 million in 2021, marking a growth of 26.9%[288] - Total non-interest expenses were $32.59 million in 2022, up from $26.04 million in 2021, indicating an increase of 25.3%[289] - The company reported a comprehensive loss income of $11.91 million in 2022, compared to a comprehensive income of $17.86 million in 2021[292] - Total assets increased slightly to $1.621 billion in 2022 from $1.614 billion in 2021, reflecting a growth of approximately 0.43%[285] - The total deposits increased to $1.458 billion in 2022 from $1.439 billion in 2021, showing a growth of approximately 1.3%[285] Loan Portfolio and Credit Risk - The Bank's limit on aggregate secured loans-to-one-borrower was $34.3 million and unsecured loans-to-one-borrower was $20.6 million as of December 31, 2022[66] - Approximately 90% of the loans in the company's portfolio were made to borrowers primarily located in Northern California or Northern Nevada, indicating significant geographic concentration risk[87] - Approximately 77% of the total loan portfolio is secured by real estate, predominantly commercial real estate, which exposes the company to fluctuations in real estate market values[89] - The company estimates that the total allowance for loan losses will increase by between $500,000 and $800,000 due to the implementation of the current Expected Credit Loss (CECL) model[107] - A significant downturn in the national or local economy could adversely affect the company's profitability, particularly due to its concentration in Northern California and Northern Nevada[87] - The provision for loan losses increased to $1,300,000 in 2022 from $1,125,000 in 2021, indicating a cautious approach to potential credit risks[298] - The allowance for loan losses is based on historical loss rates and qualitative loss factors, requiring significant management judgment[280] - The total allowance for loan losses is estimated to increase by between $500,000 and $800,000, with a corresponding decline in equity of $350,000 to $550,000[386] Economic and Market Conditions - The ongoing COVID-19 pandemic has caused significant disruption, impacting demand for products and services, potentially leading to increased loan delinquencies[82] - The company faces substantial competition from larger banks and financial institutions, which may impact its ability to grow its loan portfolio and deposit base[102] - Changes in interest rates could lead to larger payment requirements for borrowers, increasing the potential for defaults and affecting the marketability of secured properties[96] - Trends in economic indicators such as unemployment rates are closely correlated to the credit quality of the loan portfolio, indicating potential risks[350] - Climate change concerns may lead to increased costs and changes in consumer behavior, potentially affecting demand for the company's products and services[128] Regulatory and Compliance Risks - The Bank is required to comply with numerous consumer protection laws, which may lead to additional compliance costs[74] - The company may face regulatory enforcement actions and penalties due to extensive regulations governing its operations[120] - The implementation of the CECL model is underway, with a dedicated team and software purchased to support the calculation of the allowance for loan losses[385] Operational Risks - The company may face increased operating costs and cybersecurity risks due to remote work arrangements[83] - Security breaches and technological disruptions pose risks to the company's reputation and profitability, potentially leading to costly litigation and loss of customer relationships[110] - The company faces risks related to reliance on third-party vendors for data processing, which could significantly affect transaction processing capabilities[112] Asset Management - A decline in the value of investment securities could adversely impact the company's earnings and shareholders' equity, with potential material effects on net income[116] - The Company’s investment securities are classified as available-for-sale, with unrealized gains and losses excluded from earnings[317] - The Company maintains a separate allowance for each portfolio segment, including commercial, agricultural, and residential mortgage loans[336] Strategic Growth and Acquisitions - The Bank's most recent Community Reinvestment Act rating was "Satisfactory," which is crucial for growth through acquisitions or new branches[67] - The company funded 2,256 PPP loans totaling $197 million and an additional 562 loans amounting to $60 million through December 31, 2022[121] - The Company recognized $204,960,000 in assets acquired through acquisition in 2021, highlighting strategic growth through mergers[302] Stock and Equity Management - The trading price of the company's common stock may be volatile, influenced by factors such as quarterly fluctuations in operating results and analyst recommendations[122] - The total amount of common stock issued in 2021 was $18,657,000, reflecting ongoing capital raising efforts[298] - The Company granted options to purchase 117,000 shares of common stock in 2022, with a fair value of $31 per share for restricted stock granted[381]