Plumas Bancorp (NASDAQ: PLBC), the parent company of Plumas Bank, recently announced first-quarter earnings of $6.3 million or $1.06 per share, down from $7.6 million or $1.30 per share during the first quarter of 2023. Diluted earnings per share was $1.05 during the three months ended March 31, 2024, down from $1.28 per share during the quarter ended March 31, 2023. Return on average assets was 1.55% during the current quarter, down from 1.93% during the first quarter of 2023. Return on average equity was 16.4% for the three months ended March 31, 2024, down from 25.0% during the first quarter of 2023.
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%.
Financial highlights
The following applies to the period ending March 31, 2024, compared to March 31, 2023:
- Gross loans increased by $60 million, or 7%, to $976 million.
- Total assets increased by $62 million, or 4%, to $1.6 billion.
- Total equity increased by $32.7 million, or 25%, to $161 million.
- Book value per share increased by $5.41, or 25%, to $27.39.
President’s comments
Andrew J. Ryback, director, president and chief executive officer of Plumas Bancorp and Plumas Bank, commented on the first quarter of 2024, stating, “We are excited to announce the successful completion of the branch sale-leaseback transaction with MountainSeed Real Estate Services, valued at approximately $25.7 million. This transaction underscores our commitment to optimizing our capital structure while reaffirming our dedication to serving our communities for the long term. The gains generated from this transaction were instrumental in offsetting losses in our investment portfolio, enhancing our earnings profile and increasing our book value per share.
“Quarter-over-quarter results reflect the termination of interest rate swaps resulting in a one-time gain in the first quarter of 2023. Nonperforming loans are well-collateralized, and we expect resolution on significant amounts in the coming quarter.
“As the Federal Reserve announced its intention to implement up to three rate cuts this year, we remain vigilant and adaptable in navigating potential challenges and opportunities in the market. Plumas Bank is well positioned to leverage its strong capital position and diversified portfolios to sustain growth and maximize returns for our stakeholders.”
Quarterly cash dividend
Plumas Bancorp also announced that the board of directors declared a regular quarterly cash dividend on Plumas Bancorp common stock of $0.27 per share, payable May 15, to stockholders of record as of May 1.
Information provided by Plumas Bank