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PLUMAS BANCORP (PLBC)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered stable profitability: net income $7.75M and diluted EPS $1.29, up modestly YoY, with net interest margin expanding to 4.90% (+16 bps YoY) .
  • Balance sheet improved: deposits rose to $1.371B (+$37M YoY), borrowings fell to $15M (from $90M YoY), and nonperforming asset ratio declined to 0.27% (from 0.33%) .
  • Management emphasized margin expansion from higher-yielding loans (SBA fixed-rate) and investment portfolio restructuring; anticipates improved loan demand and deposit stabilization with projected Fed cuts .
  • The Board raised the quarterly dividend to $0.30 (payable Feb 17, 2025), up from $0.27 throughout 2024, a supportive capital return signal .
  • No earnings call transcript was available; consensus estimates from S&P Global were unavailable, limiting formal beat/miss assessment (S&P Global estimates unavailable).

What Went Well and What Went Wrong

What Went Well

  • Margin expansion: net interest margin rose to 4.90% (+16 bps YoY), supported by higher loan and securities yields after portfolio restructuring .
  • Funding/liquidity progress: deposits increased to $1.371B YoY and borrowings dropped sharply to $15M, strengthening leverage and liquidity optionality .
  • Asset quality and capital: NPAs fell to 0.27% of assets and CET1 reached 17.3%; management highlighted stronger financial profile and awards recognition (e.g., Raymond James Community Bankers Cup) .

Quote: “Focusing on low-cost funds and higher-yielding loans, resulting in margin expansion.” — Andrew J. Ryback, President & CEO .

What Went Wrong

  • Expense pressure: non-interest expense rose $0.89M YoY in Q4, driven by rent expense from the sale-leaseback; efficiency ratio worsened versus prior year .
  • Fee softness: interchange income declined $155K YoY in Q4; non-interest income decreased $141K YoY, reflecting normalization .
  • ROE compression: annualized ROE fell to 17.1% vs. 23.9% in Q4 2023, as capital levels rose and earnings growth moderated .

Financial Results

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Total Revenue (NII + Non-Interest Income) ($USD Millions)$20.009 $20.607 $21.107 $21.160
Net Interest Income before Provision ($USD Millions)$17.667 $18.405 $18.870 $18.959
Non-Interest Income ($USD Millions)$2.342 $2.202 $2.237 $2.201
Net Income ($USD Millions)$7.521 $6.786 $7.830 $7.749
Diluted EPS ($USD)$1.27 $1.14 $1.31 $1.29
Net Interest Margin (%)4.74% 4.89% 4.76% 4.90%
ROAA (%)1.87% 1.67% 1.84% 1.87%
ROAE (%)23.9% 17.1% 18.1% 17.1%

Balance and funding trends:

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Deposits ($USD Millions)$1,333.655 $1,304.587 $1,350.996 $1,371.101
Loans, Net of ACL ($USD Millions)$948.604 $986.517 $993.070 $1,005.375
Borrowings ($USD Millions)$90.000 $120.000 $75.000 $15.000

KPIs and credit:

MetricQ4 2023Q2 2024Q3 2024Q4 2024
Nonperforming Loans ($USD Millions)$4.820 $8.974 $4.455 $4.105
Nonperforming Assets ($USD Millions)$5.315 $9.148 $4.753 $4.307
ACL as % of Total Loans (%)1.34% 1.41% 1.35% 1.30%
Net Charge-offs (YTD, $USD Thousands)$954 $610 $736 $1,046

Segment breakdown (loan mix at year-end):

Loan Type12/31/2023 ($USD Millions, %)12/31/2024 ($USD Millions, %)
Commercial$74.271, 7.8% $77.444, 7.6%
Agricultural$129.389, 13.5% $118.866, 11.7%
Real Estate – Residential$11.914, 1.2% $11.539, 1.1%
Real Estate – Commercial$544.339, 56.8% $646.378, 63.7%
Construction & Land$57.717, 6.0% $53.503, 5.3%
Equity Lines$37.871, 4.0% $37.888, 3.7%
Auto$98.132, 10.2% $64.734, 6.4%
Other$4.931, 0.5% $5.072, 0.5%
Total Gross Loans$958.564, 100% $1,015.424, 100%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per shareQ1 2025 dividend (payable 2/17/25)$0.27 per quarter in 2024 $0.30 per quarter declared Raised
  • No quantitative guidance on revenue, margins, OpEx, or tax rate was provided. Management expects improved loan demand and deposit stabilization driven by projected Fed rate cuts .

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was available; themes derived from Q2/Q3 releases and Q4 press.

TopicPrevious Mentions (Q2 and Q3)Current Period (Q4)Trend
SBA loan productionShift to fixed-rate SBA 7(a); strong production; commissions increased; portfolio balances up $20M in Q2 Highlighted continued SBA production contribution to margin expansion Positive; sustained focus
Net interest marginQ2 NIM +20 bps to 4.89% ; Q3 NIM 4.76% (flat YoY) NIM 4.90% (+16 bps YoY) on higher loan/securities yields Improving
Deposits/fundingQ2 deposits stabilized ; Q3 expected retention post Fed 50 bp cut Deposits +$37M YoY; management anticipates stabilization with rate cuts Stabilizing
Sale-leaseback & portfolio restructureExecuted in Q1; gain $19.9M offset by $19.8M securities loss; higher investment yields Continued yield benefit; rent expense elevates OpEx Net benefit to margin, OpEx higher
Borrowings/BTFPQ3 BTFP $60M outstanding Fully repaid in Nov 2024; borrowings $15M term note only De-leveraging
Asset qualityQ2 NPLs elevated (ag borrower), NPAs 0.56% ; Q3 NPAs 0.29% NPAs 0.27%; ACL 1.30% Improving

Management Commentary

  • “Plumas Bancorp ended 2024 with strong performance and continued loan growth, particularly in SBA loan production... focusing on low-cost funds and higher-yielding loans, resulting in margin expansion.” — Andrew J. Ryback (President & CEO) .
  • “Sale leaseback optimize[d] the bank's capital structure and offset investment portfolio losses... increased yield on restructured securities further strengthened the bank’s financial performance.” — Andrew J. Ryback .
  • “Anticipate[d] increased deposit retention [post Fed 50 bp cut]... lower rates will likely ease potential challenges for variable rate borrowers.” — Andrew J. Ryback (Q3 release) .
  • “Deposits stabilized... maintain[ing] a low overall cost of funds remains a significant factor in driving profitability.” — Andrew J. Ryback (Q2 release) .

Q&A Highlights

  • No Q4 2024 earnings call transcript was available, so Q&A themes and clarifications are unavailable (no earnings-call-transcript found).

Estimates Context

  • Wall Street consensus EPS and revenue estimates via S&P Global were unavailable at time of this analysis; as a result, we cannot assess formal beats/misses for Q4 2024 (S&P Global estimates unavailable).

Key Takeaways for Investors

  • Margin resilience: NIM reached 4.90% in Q4 on loan yield improvement and investment portfolio restructuring; continued SBA production is supportive .
  • Funding strengthening: sequential deposit growth and complete repayment of BTFP borrowings reduce funding risk and interest sensitivity; term borrowings remain at $15M .
  • Expense trade-off: rent from sale-leaseback raises OpEx, but higher securities yields offset at the margin; watch efficiency ratio and occupancy costs in 2025 .
  • Credit normalization: NPAs/NPLs improved vs. mid-year; ACL coverage remains robust at 1.30%; monitoring auto-related charge-offs remains prudent .
  • Capital returns: dividend increased to $0.30 aligns with strong capital ratios (CET1 17.3%); supports total return and may attract income investors .
  • Macro sensitivity: management expects demand stabilization with Fed cuts; PLBC’s 77% variable-rate loan exposure (many repricing every 5 years) will shape asset yields as rates evolve .
  • Near-term trading: positive catalysts include dividend raise and NIM expansion; risks include elevated occupancy/rent costs and fee income normalization .

Appendix: Additional Data Points

  • Q4 NII +$1.3M YoY; interest income +$1.7M, interest expense +$0.44M YoY .
  • Deposit mix at 12/31/2024: 51% non-interest-bearing; no brokered deposits .
  • Regulatory capital (12/31/2024): CET1 17.3%, Total RBC 18.5% .
  • Variable-rate loan exposure: ~77% of portfolio; ~76% indexed to 5-year T-bill; ~21% to Prime .