# EDGAR Filing Document

**Accession Number:** 0001168455
**File Stem:** 0001437749-23-001189
**Filing Date:** 2023-1
**Character Count:** 43018
**Document Hash:** f52091eb2adc89180824d3604401d35f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-23-001189.hdr.sgml**: 20230118

**ACCESSION NUMBER**: 0001437749-23-001189

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230118

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230118

**DATE AS OF CHANGE**: 20230118

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PLUMAS BANCORP
- **CENTRAL INDEX KEY:** 0001168455
- **STANDARD INDUSTRIAL CLASSIFICATION:** SHORT-TERM BUSINESS CREDIT INSTITUTIONS [6153]
- **IRS NUMBER:** 752987096
- **STATE OF INCORPORATION:** CA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-49883
- **FILM NUMBER:** 23533040

**BUSINESS ADDRESS:**
- **STREET 1:** 5525 KIETZKE LANE, STE. 100
- **CITY:** RENO
- **STATE:** NV
- **ZIP:** 89511
- **BUSINESS PHONE:** 775-786-0907

**MAIL ADDRESS:**
- **STREET 1:** 5525 KIETZKE LANE, STE. 100
- **CITY:** RENO
- **STATE:** NV
- **ZIP:** 89511

plbc20230113b_8k.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

Washington, D.C. 20549

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**FORM **8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the** 

**Securities Exchange Act of 1934**

**Date of Report: **January 18, 2023** 

(Date of earliest event reported)

**Plumas Bancorp**

(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **California** | **000-49883** | **75-2987096** |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
| **5525 Kietzke Lane, Suite 100, Reno,** |  |  |
| **Nevada** |  | **89511** |
| (Address of principal executive offices) |  | (Zip Code) |

---

**775-**786-0907**

(Registrant's telephone number, including area code)

**Not Applicable**

(Former Name or Former Address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **<u>Title of each class</u>** | **<u>Tradin</u>g <u>S</u>ymbol(s)** | **<u>Name of each exchan</u>g<u>e on which re</u>gistered** |
| Common Stock, no par value | PLBC | The NASDAQ Stock Market LLC |

---

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**Item 2.02. Results of Operations and Financial Condition**

On January 18, 2023, Plumas Bancorp (the "Registrant") reported its financial results for the three months and year ended December 31, 2022. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

The information contained herein and in the accompanying exhibit is being furnished pursuant to "Item 2.02 Results of Operations and Financial Condition". The information contained herein and in the accompanying Exhibit 99.1 shall not be incorporated by reference into any filing of the Registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference to such filing. The information in this report, including the exhibit hereto, shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.

In connection with the foregoing, Plumas Bancorp hereby furnishes the following exhibit:

**Item 9.01. Financial Statements and Exhibits**

99.1 [Press Release dated January 18, 2023 containing unaudited financial information. 104 Cover Page Interactive Data File](ex_464085.htm)

104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

**(d) Exhibits**

99.1 2

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**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | |
|:---|:---|:---|
| Dated: January 18, 2023 | **PLUMAS BANCORP** | **PLUMAS BANCORP** |
|  | By:  | /s/ Richard L. Belstock |
|  |  | Richard L. Belstock |
|  |  | *Executive Vice President, Chief* |
|  |  | *Financial Officer* |

---

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**Exhibit Index**

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| | |
|:---|:---|
| **<u>Exhibit No.</u>** | **<u>Description</u>** |
| 99.1 | Press Release of Plumas Bancorp dated January 18, 2023 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

## Exhibit 99.1

**Exhibit 99.1**

**PLUMAS BANCORP REPORTS RECORD EARNINGS FOR THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2022**

**Reno, Nevada, January 18, 2023** – Plumas Bancorp (Nasdaq: PLBC), the parent company of Plumas Bank, today announced record earnings for the year and three months ended December 31, 2022. For the twelve months ended December 31, 2022, the Company reported net income of $26.4 million or $4.53 per share, an increase of $5.4 million, or 26% from $21.0 million or $3.82 per share earned during 2021. Earnings per diluted share increased to $4.47 during the twelve months ended December 31, 2022, up $0.71 from $3.76 during 2021.

Earnings during the fourth quarter of 2022 totaled $7.8 million or $1.34 per share, an increase of $2.3 million, or 42% from $5.5 million or $0.95 per share during the fourth quarter of 2021. Diluted earnings per share increased to $1.32 per share during the three months ended December 31, 2022, up from $0.93 per share during the quarter ended December 31, 2021. The $7.8 million in net income represented the highest level of earnings for any quarter in the Company's history.

Return on average assets was 1.61% during the twelve months ended December 31, 2022, up from 1.52% during 2021. Return on average equity increased to 21.9% for the twelve months ended December 31, 2022, up from 17.8% during 2021. Return on average assets was 1.88% during the current quarter, up from 1.35% during the fourth quarter of 2021. Return on average equity increased to 27.9% for the three months ended December 31, 2022, up from 16.5% during the fourth quarter of 2021.

**Balance Sheet Highlights** 

**December 31, 2022 compared to December 31, 2021**

● Gross loans, excluding loans held for sale, increased by $73 million, or 9%, to $912 million.

● Investment securities increased by $139 million, or 45%, to $445 million.

● Total deposits increased by $19 million, or 1%, to $1.5 billion.

● Non-performing assets decreased by $4.2 million or 78%, to $1.2 million.

**President**'**s Comments**

"With a focus on refining and enhancing business processes, Plumas Bank serves an expanding client base while exceeding peer averages in a variety of metrics including ROA, ROE, and efficiency ratio. The dedication of our leadership, staff, and clientele is reflected in this success and we will continue to build these relationships, especially as economic uncertainty hails in the coming year and clients seek the support of their community bank to weather yet another challenge," stated Andrew J. Ryback, director, president and chief executive officer of Plumas Bancorp and Plumas Bank.

"We are excited to extend our footprint in the northern Central Valley with a de novo branch opening in Chico, California. Plumas' Chico branch will complement our presence in Yuba City to the south and Redding to the north, with the road having been paved with the presence of a Loan Production Office over the past eight years. Our Chico branch facility will have a variety of 'green' features and will open in the first half of 2023," Ryback announced.

Ryback concluded, "While our nation will likely face some recessionary pressures in 2023, I'm proud to say that Plumas Bank is strong. We will continue to be strong for our communities, for our clients, and for our partners because Plumas Bank is committed to being Here. For Good."

------

**Loans, Deposits, Investments and Cash** 

Gross loans, excluding loans held for sale, increased by $73 million, or 9%, from $839 million at December 31, 2021, to $912 million at December 31, 2022. Increases in loans included $97 million in commercial real estate loans, $8 million in automobile loans and $3 million in equity lines of credit; these items were partially offset by decreases of $23 million in commercial loans, $8 million in construction loans and $4 million in agricultural loans. Excluding PPP loan activity, commercial loans would have increased by $11 million and gross loans would have increased by $108 million or 13%. PPP loans totaled $300 thousand at December 31, 2022, and $35 million at December 31, 2021.

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 December 31, 2022.

On December 31, 2022, approximately 80% 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 $19 million from $1.4 billion at December 31, 2021, to $1.5 billion at December 31, 2022. The increase in deposits includes increases of $30 million in demand deposits and $27 million in savings accounts. These increases were partially offset by declines of $23 million in money market accounts, and $15 million in time deposits. At December 31, 2022, 53% 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 $139 million from $306 million at December 31, 2021, to $445 million at December 31, 2022. Excluding the effect of a $56 million increase in unrealized loss on investment securities, our investment security portfolio would have grown by $195 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 decreased by $197 million to $183 million at December 31, 2022.

**Asset Quality**

Nonperforming assets (which are comprised of nonperforming loans, other real estate owned ("OREO") and repossessed vehicle holdings) at December 31, 2022, were $1.2 million, down from $5.4 million at December 31, 2021. Nonperforming assets as a percentage of total assets decreased to 0.07% at December 31, 2022, down from 0.33% at December 31, 2021. There was no OREO outstanding at December 31, 2022. At December 31, 2021 OREO totaled $487 thousand. Nonperforming loans were $1.2 million at December 31, 2022, and $4.9 million at December 31, 2021. Nonperforming loans as a percentage of total loans decreased to 0.13% at December 31, 2022, down from 0.58% at December 31, 2021.

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The provision for loan losses increased by $175 thousand from $1.1 million during 2021 to $1.3 million during 2022. Net charge-offs increased by $260 thousand to $935 thousand during 2022 from $675 thousand during 2021.The largest component of this increase was an increase in net charge-offs of $146 thousand on automobile loans. The allowance for loan losses totaled $10.7 million at December 31, 2022, and $10.4 million at December 31, 2021. The allowance for loan losses as a percentage of total loans decreased from 1.23% at December 31, 2021, to 1.18% at December 31, 2022.

**Shareholders**' **Equity** 

Shareholders' equity decreased by $15.1 million from $134.1 million at December 31, 2021 to $119.0 million at December 31, 2022. The $15.1 million decrease was related to a reduction in accumulated other comprehensive income/loss of $38.4 million from accumulated other comprehensive income of $1.6 million at December 31, 2021 to an accumulated other comprehensive loss of $36.8 million at December 31, 2022. In addition, shareholder dividends decreased shareholders' equity by $3.7 million. These items were partially offset by earnings during 2022 of $26.4 million and $571 thousand representing stock option and restricted stock activity.

**Net Interest Income and Net Interest Margin**

**Year ended December 31, 2022**

Net interest income for the twelve months ended December 31, 2022 increased by $11.6 million from $46.9 million during the year ended December 31, 2021, to $58.5 million during 2022. Interest income increased by $11.7 million to $59.7 million while interest expense increased by $113 thousand to $1.2 million. Included in interest income during the current year were PPP fees net of costs of $1.3 million, a decrease of $4.8 million from $6.1 million during 2021. Related to this decline in PPP fees, the average yield on loans, including loans held for sale, decreased by 13 basis points from 5.41% during 2021 to 5.28% during 2022. Excluding interest and fees on PPP loans, loan yield would have increased by 13 basis points to 5.18% for the current year compared to 5.05% during the twelve months ended December 31, 2021.

Average interest earning assets during 2022 totaled $1.5 billion, an increase of $239 million from 2021. This increase in average interest earning assets consisted of increases of $71 million in average loan balances, $122 million in average investment securities and $52 million in average cash balances. Average loans held for sale declined by $6 million. The average yield on investment securities increased by 68 basis points from 1.84% during 2021 to 2.52% during 2022 and the average yield on cash balances increased by 147 basis points from 0.14% during 2021 to 1.61% during 2022. Net interest margin increased 19 basis points to 3.82% during 2022, up from 3.63% during 2021.

**Three months ended December 31, 2022**

Net interest income increased by $4.4 million from $13.0 million during the three months ended December 31, 2021, to $17.4 million for the three months ended December 31, 2022. The increase in net interest income includes increases of $4.4 million in interest income and $60 thousand in interest expense. Interest and fees on loans, including loans held for sale, increased by $443 thousand related to both an increase in average loans balances and yield. During the current quarter we recorded amortization of loan fees net of loan costs on PPP loans totaling $34 thousand, a decrease of $1.2 million from the same quarter in 2021. This includes normal amortization on our PPP portfolio and the effect of PPP loan forgiveness.

------

Average loan balances, including loans held for sale, increased by $23 million, while the average yield on loans increased by 6 basis points from 5.44% during the fourth quarter of 2021 to 5.50% during the current quarter. Excluding the effect of the PPP loans, loan yield would have increased by 36 basis points to 5.48% for the current quarter and 5.12% during the fourth quarter of 2021. Interest on investment securities increased by $1.8 million related to both growth in the investment portfolio and an increase in yield. Average investment securities increased by $121 million to $411 million. The average yield on investment securities during the three months ended December 31, 2022, was 3.00%, an increase of 120 basis points from 1.80% during the fourth quarter of 2021. Interest on cash balances increased by $2.2 million related to an increase in yield of 3.57% from 0.15% during the three months ended December 31, 2021 to 3.72% during the current quarter. Average cash balances decreased from $342 million during the fourth quarter of 2021 to $248 million during the current quarter. Net interest margin for the three months ended December 31, 2022, increased 101 basis points to 4.45%, up from 3.44% for the same period in 2021.

**Non-Interest Income/Expense**

**Year ended December 31, 2022**

During 2022, non-interest income totaled $11.0 million, an increase of $2.3 million from the $8.7 million earned during 2021. This increase included increases in several categories of non-interest income, the largest of which was $1.7 million in gains on sale of SBA loans. During 2022, we sold $50.5 million in guaranteed portions of SBA loans. This compares to sales of $14.2 million during 2021. Loans held for sale at December 31, 2022 and 2021 totaling $2.3 million and $31.3 million, respectively consist of the guaranteed portion of SBA 7(a) loans.

During 2022, non-interest expense increased by $6.6 million. The largest components of this increase were $4.7 million in salary and benefit expense, $627 thousand in occupancy and equipment costs, $304 thousand in outside service fees and $242 thousand in advertising and shareholder relations. The largest component of the increase in salary and benefit expense was related to a $2.3 million Employee Retention Credit (ERC) recorded in 2021 as a reduction in salary and benefit expense. 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. Other significant increases in salary and benefit expense include $1.4 million in salary expense and $889 thousand in accrued bonus expense. The increase in occupancy and equipment expense includes $293 thousand related to our Yuba City branch. The largest components of the increase in outside service fees were $227 thousand in interchange fees and ATM processing costs and $90 thousand in human resources administration and payroll processing. The increase in advertising and shareholder costs mostly relates to an increase of $219 thousand in expense paid to an advertising agency which is primarily focused on building our brand in Northern Nevada.

**Three months ended December 31, 2022**

During the three months ended December 31, 2022, and 2021, non-interest income totaled $2.2 million and $2.5 million, respectively. The largest decrease in non-interest income was $410 thousand in gains on sale of SBA loans. During the 2022 quarter we saw a significant decline in premiums received on the sale of SBA loans; in response we chose to portfolio several SBA 7(a) loans which did not meet a minimum premium on sale.

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During the three months ended December 31, 2022, total non-interest expense increased by $873 thousand from $7.8 million during the fourth quarter of 2021 to $8.7 million during the current quarter. The largest component of this increase was an increase in salary and benefit expense of $653 thousand of which $523 thousand relates to an increase in our bonus accrual.

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

investorrelations@plumasbank.com

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| |
|:---|
| **PLUMAS BANCORP** |
| **CONDENSED CONSOLIDATED BALANCE SHEETS** |
| (In thousands) |
| (Unaudited) |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |  |  |
|  | **2022** | **2021** | **Dollar** <br> **Change** | **Percentage** <br> **Change** |
| **ASSETS** |  |  |  |  |
| Cash and due from banks | $183426 | $380584 | $(197158) | (51.8)% |
| Investment securities | 444703 | 305914 | 138789 | 45.4% |
| Loans, net of allowance for loan losses | 903968 | 829385 | 74583 | 9.0% |
| Loans held for sale | 2301 | 31277 | (28976) | (92.6)% |
| Premises and equipment, net | 18100 | 16424 | 1676 | 10.2% |
| Bank owned life insurance | 16020 | 15844 | 176 | 1.1% |
| Real estate acquired through foreclosure |  | 487 | (487) | (100.0)% |
| Goodwill | 5502 | 5502 |  | 0.0% |
| Accrued interest receivable and other assets | 47024 | 28657 | 18367 | 64.1% |
| Total assets | $1621044 | $1614074 | $6970 | 0.4% |
| **LIABILITIES AND SHAREHOLDERS**' **EQUITY** |  |  |  |  |
| Deposits | $1457809 | $1438999 | $18810 | 1.3% |
| Accrued interest payable and other liabilities | 33921 | 30683 | 3238 | 10.6% |
| Junior subordinated deferrable interest debentures | 10310 | 10310 |  | 0.0% |
| Total liabilities | 1502040 | 1479992 | 22048 | 1.5% |
| Common stock | 27372 | 26801 | 571 | 2.1% |
| Retained earnings | 128388 | 105681 | 22707 | 21.5% |
| Accumulated other comprehensive (loss) income, net | (36756) | 1600 | (38356) | (2397.3)% |
| Shareholders' equity | 119004 | 134082 | (15078) | (11.2)% |
| Total liabilities and shareholders' equity | $1621044 | $1614074 | $6970 | 0.4% |

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| |
|:---|
| **PLUMAS BANCORP** |
| **CONDENSED CONSOLIDATED STATEMENTS OF INCOME** |
| (In thousands, except per share data) |
| (Unaudited) |

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| | | | | |
|:---|:---|:---|:---|:---|
| **FOR THE YEAR ENDED DECEMBER 31,** | **2022** | **2021** | **Dollar** <br> **Change** | **Percentage** <br> **Change** |
| Interest income | $59758 | $48070 | $11688 | 24.3% |
| Interest expense | 1249 | 1136 | 113 | 9.9% |
| Net interest income before provision for loan losses | 58509 | 46934 | 11575 | 24.7% |
| Provision for loan losses | 1300 | 1125 | 175 | 15.6% |
| Net interest income after provision for loan losses | 57209 | 45809 | 11400 | 24.9% |
| Non-interest income | 11050 | 8716 | 2334 | 26.8% |
| Non-interest expense | 32590 | 26038 | 6552 | 25.2% |
| Income before income taxes | 35669 | 28487 | 7182 | 25.2% |
| Provision for income taxes | 9225 | 7478 | 1747 | 23.4% |
| Net income | $26444 | $21009 | $5435 | 25.9% |
| Basic earnings per share | $4.53 | $3.82 | $0.71 | 18.6% |
| Diluted earnings per share | $4.47 | $3.76 | $0.71 | 18.9% |

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| |
|:---|
| **PLUMAS BANCORP** |
| **CONDENSED CONSOLIDATED STATEMENTS OF INCOME** |
| (In thousands, except per share data) |
| (Unaudited) |

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| | | | | |
|:---|:---|:---|:---|:---|
| **FOR THE THREE MONTHS ENDED DECEMBER 31,** | **2022** | **2021** | **Dollar** <br> **Change** | **Percentage** <br> **Change** |
| Interest income | $17721 | $13284 | $4437 | 33.4% |
| Interest expense | 370 | 310 | 60 | 19.4% |
| Net interest income before provision for loan losses | 17351 | 12974 | 4377 | 33.7% |
| Provision for loan losses | 300 | 250 | 50 | 20.0% |
| Net interest income after provision for loan losses | 17051 | 12724 | 4327 | 34.0% |
| Non-interest income | 2181 | 2485 | (304) | (12.2)% |
| Non-interest expense | 8686 | 7813 | 873 | 11.2% |
| Income before income taxes | 10546 | 7396 | 3150 | 42.6% |
| Provision for income taxes | 2728 | 1894 | 834 | 44.0% |
| Net income | $7818 | $5502 | $2316 | 42.1% |
| Basic earnings per share | $1.34 | $0.95 | $0.39 | 41.1% |
| Diluted earnings per share | $1.32 | $0.93 | $0.39 | 41.9% |

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| |
|:---|
| **PLUMAS BANCORP** |
| **SELECTED FINANCIAL INFORMATION** |
| (Dollars in thousands, except per share data) |
| (Unaudited) |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended** | **Year Ended** | **Year Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **12/31/2022** | **12/31/2021** | **12/31/2020** | **12/31/2022** | **12/31/2021** |
| **EARNINGS PER SHARE** |  |  |  |  |  |
| Basic earnings per share | $4.53 | $3.82 | $2.80 | $1.34 | $0.95 |
| Diluted earnings per share | $4.47 | $3.76 | $2.77 | $1.32 | $0.93 |
| Weighted average shares outstanding | 5840 | 5502 | 5177 | 5849 | 5814 |
| Weighted average diluted shares outstanding | 5912 | 5583 | 5230 | 5916 | 5903 |
| Cash dividends paid per share <sup>1</sup> | $0.64 | $0.56 | $0.36 | $0.16 | $0.14 |
| **PERFORMANCE RATIOS (annualized for the three months)** | **PERFORMANCE RATIOS (annualized for the three months)** | **PERFORMANCE RATIOS (annualized for the three months)** |  |  |  |
| Return on average assets | 1.61% | 1.52% | 1.43% | 1.88% | 1.35% |
| Return on average equity | 21.9% | 17.8% | 15.5% | 27.9% | 16.5% |
| Yield on earning assets | 3.90% | 3.72% | 4.15% | 4.55% | 3.52% |
| Rate paid on interest-bearing liabilities | 0.17% | 0.19% | 0.25% | 0.20% | 0.17% |
| Net interest margin | 3.82% | 3.63% | 4.02% | 4.45% | 3.44% |
| Noninterest income to average assets | 0.67% | 0.63% | 0.83% | 0.52% | 0.61% |
| Noninterest expense to average assets | 1.98% | 1.88% | 2.34% | 2.09% | 1.92% |
| Efficiency ratio <sup>2</sup> | 46.9% | 46.8% | 50.6% | 44.5% | 50.5% |

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| | | | |
|:---|:---|:---|:---|
|  | **12/31/2022** | **12/31/2021** | **12/31/2020** |
| **CREDIT QUALITY RATIOS AND DATA** |  |  |  |
| Allowance for loan losses | $10717 | $10352 | $9902 |
| Allowance for loan losses as a percentage of total loans | 1.18% | 1.23% | 1.40% |
| Allowance for loan losses as a percentage of total loans - |  |  |  |
| excluding PPP loans | 1.18% | 1.29% | 1.55% |
| Nonperforming loans | $1172 | $4863 | $2536 |
| Nonperforming assets | $1190 | $5397 | $2970 |
| Nonperforming loans as a percentage of total loans | 0.13% | 0.58% | 0.36% |
| Nonperforming assets as a percentage of total assets | 0.07% | 0.33% | 0.27% |
| Year-to-date net charge-offs | $935 | $675 | $516 |
| Year-to-date net charge-offs as a percentage of average | 0.11% | 0.09% | 0.07% |
| loans |  |  |  |
| **CAPITAL AND OTHER DATA** |  |  |  |
| Common shares outstanding at end of period | 5850 | 5817 | 5182 |
| Shareholders' equity | $119004 | $134082 | $100154 |
| Book value per common share | $20.34 | $23.05 | $19.33 |
| Tangible common equity<sup>3</sup> | $112273 | $127067 | $99432 |
| Tangible book value per common share<sup>4</sup> | $19.19 | $21.84 | $19.19 |
| Tangible common equity to total assets | 6.9% | 7.9% | 8.9% |
| Gross loans to deposits | 62.6% | 58.3% | 72.9% |
| **PLUMAS BANK REGULATORY CAPITAL RATIOS** |  |  |  |
| Tier 1 Leverage Ratio | 9.2% | 8.4% | 9.2% |
| Common Equity Tier 1 Ratio | 14.7% | 14.4% | 14.2% |
| Tier 1 Risk-Based Capital Ratio | 14.7% | 14.4% | 14.2% |
| Total Risk-Based Capital Ratio | 15.7% | 15.5% | 15.4% |

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| |
|:---|
| (1) The Company paid a quarterly cash dividend of 16 cents per share on February 15, 2022, May 16, 2022, August 15, 2022 and November 15, 2022, and a quarterly cash dividend of 14 cents per share on February 15, 2021, May 17, 2021, August 16, 2021 and November 15, 2021. |
| (2) Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).  |
| (3) Tangible common equity is defined as common equity less goodwill and core deposit intangibles. |
| (4) Tangible common book value per share is defined as tangible common equity divided by common shares outstanding. |

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| |
|:---|
| **PLUMAS BANCORP** |
| **SELECTED FINANCIAL INFORMATION** |
| (Dollars in thousands) |
| (Unaudited) |

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**The following table presents for the three-month periods indicated the distribution of consolidated average assets, liabilites and shareholders' equity.**<br>

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** |
|  | **12/31/2022** | **12/31/2022** | **12/31/2022** | **12/31/2021** | **12/31/2021** | **12/31/2021** |
|  | **Average** |  | **Yield/** | **Average** |  | **Yield/** |
|  | **Balance** | **Interest** | **Rate** | **Balance** | **Interest** | **Rate** |
| **Interest-earning assets:** |  |  |  |  |  |  |
| Loans <sup>(2) (3)</sup> | $885467 | $12261 | 5.49% | $834269 | $11458 | 5.45% |
| Loans held for sale | 1247 | 25 | 7.95% | 29312 | 385 | 5.21% |
| Investment securities | 301319 | 2285 | 3.01% | 200058 | 825 | 1.64% |
| Non-taxable investment securities <sup>(1)</sup> | 109366 | 822 | 2.98% | 89341 | 485 | 2.15% |
| Interest-bearing deposits | 248487 | 2328 | 3.72% | 342411 | 131 | 0.15% |
| Total interest-earning assets | 1545886 | 17721 | 4.55% | 1495391 | 13284 | 3.52% |
| Cash and due from banks | 26250 |  |  | 58683 |  |  |
| Other assets | 78634 |  |  | 57806 |  |  |
| Total assets | $1650770 |  |  | $1611880 |  |  |
| **Interest-bearing liabilities:** |  |  |  |  |  |  |
| Money market deposits | 249935 | 108 | 0.17% | 262345 | 84 | 0.13% |
| Savings deposits | 408825 | 118 | 0.11% | 362325 | 77 | 0.08% |
| Time deposits | 51928 | 36 | 0.28% | 66074 | 53 | 0.32% |
| Total deposits | 710688 | 262 | 0.15% | 690744 | 214 | 0.12% |
| Junior subordinated debentures | 10310 | 91 | 3.50% | 10310 | 94 | 3.62% |
| Other interest-bearing liabilities | 14480 | 17 | 0.47% | 16590 | 2 | 0.05% |
| Total interest-bearing liabilities | 735478 | 370 | 0.20% | 717644 | 310 | 0.17% |
| Non-interest-bearing deposits | 791430 |  |  | 748429 |  |  |
| Other liabilities | 12699 |  |  | 13772 |  |  |
| Shareholders' equity | 111163 |  |  | 132035 |  |  |
| Total liabilities & equity | $1650770 |  |  | $1611880 |  |  |
| Cost of funding interest-earning assets <sup>(4)</sup> |  |  | 0.10% |  |  | 0.08% |
| Net interest income and margin <sup>(5)</sup> |  | $17351 | 4.45% |  | $12974 | 3.44% |

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| |
|:---|
| (1) Not computed on a tax-equivalent basis. |
| (2) Average nonaccrual loan balances of $1.3 million for 2022 and $5.0 million for 2021 are included in average loan balances for computational purposes. |
| (3) Net (costs) fees included in loan interest income for the three-month periods ended December 31, 2022 and 2021 were ($326) thousand and $1.3 million, respectively. |
| (4) Total annualized interest expense divided by the average balance of total earning assets. |
| (5) Annualized net interest income divided by the average balance of total earning assets. |

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| |
|:---|
| **PLUMAS BANCORP** |
| **SELECTED FINANCIAL INFORMATION** |
| (Dollars in thousands) |
| (Unaudited) |

---

**The following table presents for the years indicated the distribution of consolidated average assets, liabilites and shareholders' equity.**<br>

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Year Ended** | **For the Year Ended** | **For the Year Ended** | **For the Year Ended** | **For the Year Ended** | **For the Year Ended** |
|  | **12/31/2022** | **12/31/2022** | **12/31/2022** | **12/31/2021** | **12/31/2021** | **12/31/2021** |
|  | **Average** |  | **Yield/** | **Average** |  | **Yield/** |
|  | **Balance** | **Interest** | **Rate** | **Balance** | **Interest** | **Rate** |
| **Interest-earning assets:** |  |  |  |  |  |  |
| Loans <sup>(2) (3)</sup> | $856728 | $45194 | 5.28% | $785527 | $42487 | 5.41% |
| Loans held for sale | 8771 | 510 | 5.81% | 15258 | 826 | 5.41% |
| Investment securities | 258732 | 6409 | 2.48% | 164199 | 2746 | 1.67% |
| Non-taxable investment securities <sup>(1)</sup> | 103366 | 2722 | 2.63% | 75673 | 1666 | 2.20% |
| Interest-bearing deposits | 305095 | 4923 | 1.61% | 253023 | 345 | 0.14% |
| Total interest-earning assets | 1532692 | 59758 | 3.90% | 1293680 | 48070 | 3.72% |
| Cash and due from banks | 40520 |  |  | 44396 |  |  |
| Other assets | 69683 |  |  | 47952 |  |  |
| Total assets | $1642895 |  |  | $1386028 |  |  |
| **Interest-bearing liabilities:** |  |  |  |  |  |  |
| Money market deposits | 254723 | 284 | 0.11% | 224776 | 307 | 0.14% |
| Savings deposits | 400314 | 376 | 0.09% | 306911 | 280 | 0.09% |
| Time deposits | 59016 | 163 | 0.28% | 53976 | 193 | 0.36% |
| Total deposits | 714053 | 823 | 0.12% | 585663 | 780 | 0.13% |
| Junior subordinated debentures | 10310 | 359 | 3.48% | 10310 | 348 | 3.38% |
| Other interest-bearing liabilities | 12327 | 67 | 0.54% | 13419 | 8 | 0.06% |
| Total interest-bearing liabilities | 736690 | 1249 | 0.17% | 609392 | 1136 | 0.19% |
| Non-interest-bearing deposits | 773293 |  |  | 645955 |  |  |
| Other liabilities | 12044 |  |  | 12714 |  |  |
| Shareholders' equity | 120868 |  |  | 117967 |  |  |
| Total liabilities & equity | $1642895 |  |  | $1386028 |  |  |
| Cost of funding interest-earning assets <sup>(4)</sup> |  |  | 0.08% |  |  | 0.09% |
| Net interest income and margin <sup>(5)</sup> |  | $58509 | 3.82% |  | $46934 | 3.63% |

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| |
|:---|
| (1) Not computed on a tax-equivalent basis. |
| (2) Average nonaccrual loan balances of $2.8 million for 2022 and $4.4 million for 2021 are included in average loan balances for computational purposes. |
| (3) Net fees included in loan interest income for the years ended December 31, 2022 and 2021 were $234 thousand and $5.7 million, respectively. |
| (4) Total annualized interest expense divided by the average balance of total earning assets. |
| (5) Annualized net interest income divided by the average balance of total earning assets. |

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| |
|:---|
| **PLUMAS BANCORP** |
| **SELECTED FINANCIAL INFORMATION** |
| **(Dollars in thousands)** |
| **(Unaudited)** |
| **The following table presents the components of non-interest income for the three-month periods ended December 31, 2022 and 2021.** |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended** | **For the Three Months Ended** |  |  |
|  | **December 31,** | **December 31,** |  |  |
|  | **2022** | **2021** | **Dollar** <br> **Change** | **Percentage** <br> **Change** |
| Interchange income | $922 | $912 | $10 | 1.1% |
| Service charges on deposit accounts | 623 | 606 | 17 | 2.8% |
| Loan servicing fees | 251 | 229 | 22 | 9.6% |
| Earnings on life insurance policies | 109 | 101 | 8 | 7.9% |
| Gain on sale of loans, net | 7 | 417 | (410) | (98.3)% |
| Other | 269 | 220 | 49 | 22.3% |
| Total non-interest income | $2181 | $2485 | $(304) | (12.2)% |

---

**The following table presents the components of non-interest expense for the three-month periods ended December 31, 2022 and 2021.**<br>

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended** | **For the Three Months Ended** |  |  |
|  | **December 31,** | **December 31,** |  |  |
|  | **2022** | **2021** | **Dollar** <br> **Change** | **Percentage** <br> **Change** |
| Salaries and employee benefits | $4751 | $4098 | $653 | 15.9% |
| Occupancy and equipment | 1142 | 1145 | (3) | (0.3)% |
| Outside service fees | 1120 | 1035 | 85 | 8.2% |
| Professional fees | 352 | 272 | 80 | 29.4% |
| Telephone and data communication | 198 | 210 | (12) | (5.7)% |
| Advertising and shareholder relations | 177 | 106 | 71 | 67.0% |
| Armored car and courier | 177 | 143 | 34 | 23.8% |
| Director compensation and expense | 177 | 169 | 8 | 4.7% |
| Business development | 134 | 121 | 13 | 10.7% |
| Deposit insurance | 108 | 165 | (57) | (34.5)% |
| Loan collection expenses | 75 | 77 | (2) | (2.6)% |
| Amortization of Core Deposit Intangible | 68 | 79 | (11) | (13.9)% |
| Other | 207 | 193 | 14 | 7.3% |
| Total non-interest expense | $8686 | $7813 | $873 | 11.2% |

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---

| |
|:---|
| **PLUMAS BANCORP** |
| **SELECTED FINANCIAL INFORMATION** |
| **(Dollars in thousands)** |
| **(Unaudited)** |
| **The following table presents the components of non-interest income for the years ended December 31, 2022 and 2021.** |

---

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended** | **For the Year Ended** |  |  |
|  | **December 31,** | **December 31,** |  |  |
|  | **2022** | **2021** | **Dollar** <br> **Change** | **Percentage** <br> **Change** |
| Interchange income | $3401 | $3279 | $122 | 3.7% |
| Gain on sale of loans, net | 2696 | 1008 | 1688 | 167.5% |
| Service charges on deposit accounts | 2464 | 2349 | 115 | 4.9% |
| Loan servicing fees | 893 | 852 | 41 | 4.8% |
| Earnings on life insurance policies | 391 | 380 | 11 | 2.9% |
| Other | 1205 | 848 | 357 | 42.1% |
| Total non-interest income | $11050 | $8716 | $2334 | 26.8% |

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**The following table presents the components of non-interest expense for the years ended December 31, 2022 and 2021.**<br>

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended** | **For the Year Ended** |  |  |
|  | **December 31,** | **December 31,** |  |  |
|  | **2022** | **2021** | **Dollar** <br> **Change** | **Percentage** <br> **Change** |
| Salaries and employee benefits | $17451 | $12792 | $4659 | 36.4% |
| Occupancy and equipment | 4610 | 3983 | 627 | 15.7% |
| Outside service fees | 4057 | 3753 | 304 | 8.1% |
| Professional fees | 1282 | 1311 | (29) | (2.2)% |
| Telephone and data communication | 770 | 746 | 24 | 3.2% |
| Armored car and courier | 675 | 498 | 177 | 35.5% |
| Advertising and shareholder relations | 673 | 431 | 242 | 56.1% |
| Director compensation and expense | 606 | 498 | 108 | 21.7% |
| Deposit insurance | 528 | 455 | 73 | 16.0% |
| Business development | 506 | 343 | 163 | 47.5% |
| Amortization of Core Deposit Intangible | 284 | 246 | 38 | 15.4% |
| Loan collection expenses | 274 | 284 | (10) | (3.5)% |
| Other | 874 | 698 | 176 | 25.2% |
| Total non-interest expense | $32590 | $26038 | $6552 | 25.2% |

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| |
|:---|
| **PLUMAS BANCORP** |
| **SELECTED FINANCIAL INFORMATION** |
| **(Dollars in thousands)** |
| **(Unaudited)** |
| **The following table shows the distribution of loans by type at December 31, 2022 and 2021.** |

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Percent of** |  | **Percent of** |
|  |  | **Loans in Each** |  | **Loans in Each** |
|  | **Balance at End** | **Category to** | **Balance at End** | **Category to** |
|  | **of Period** | **Total Loans** | **of Period** | **Total Loans** |
|  | **12/31/2022** | **12/31/2022** | **12/31/2021** | **12/31/2021** |
| Commercial | $76680 | 8.4% | $99804 | 11.9% |
| Agricultural | 122873 | 13.5% | 126456 | 15.1% |
| Real estate – residential | 15324 | 1.7% | 15837 | 1.9% |
| Real estate – commercial | 516107 | 56.6% | 418609 | 49.9% |
| Real estate – construction & land | 43420 | 4.8% | 51526 | 6.1% |
| Equity Lines of Credit | 35891 | 3.9% | 32793 | 3.9% |
| Auto | 96750 | 10.6% | 89046 | 10.6% |
| Other | 4904 | 0.5% | 4516 | 0.6% |
| Total Gross Loans | $911949 | 100% | $838587 | 100% |

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**The following table shows the distribution of deposits by type at December 31, 2022 and 2021.**<br>

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Percent of** |  | **Percent of** |
|  |  | **Deposits in Each** |  | **Deposits in Each** |
|  | **Balance at End** | **Category to** | **Balance at End** | **Category to** |
|  | **of Period** | **Total Deposits** | **of Period** | **Total Deposits** |
|  | **12/31/2022** | **12/31/2022** | **12/31/2021** | **12/31/2021** |
| Non-interest bearing | $766549 | 52.6% | $736582 | 51.2% |
| Money Market | 237924 | 16.3% | 261005 | 18.1% |
| Savings | 404150 | 27.7% | 377050 | 26.2% |
| Time | 49186 | 3.4% | 64362 | 4.5% |
| Total Deposits | $1457809 | 100% | $1438999 | 100% |

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