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November 24, 2021Marco Rodriguez, CFAMarco@stonegateinc.com214-987-4121COMPANY DESCRIPTIONMARKET STATISTICSExchange / SymbolNASDAQ: PLBCPrice: 35.10Market Cap (mm): 204.1Shares Outstanding (mm):5.8Float (%):82.6%52-week Range: 22.41- 39.88Reno, NevadaHeadquarters:Industry:Regional BanksCONDENSED BALANCE SHEETPlumas Bancorp (the Company or Plumas) is a bank holding company headquartered inReno, Nevada and was incorporated in 2002. Plumas Bancorp is the holding companyfor Plumas Bank, a Quincy, California based bank founded in 1980. The Company ownsall outstanding shares of Plumas Bank. Plumas Bank provides various banking productsand services for small and middle market businesses and individuals in NortheasternCalifornia and Northwestern Nevada with a focus on personal service. Plumas Bank offersan array of deposit products such as checking, savings, and retirement accounts inaddition to its loan portfolio consisting of commercial, industrial, agricultural, andconstruction loans. Plumas Bank also provides consumer, home equity, and auto loans.Plumas Bank currently operates 14 branches including 12 in California and two in Nevada.Plumas Bank also operates 3 lending offices located in Northern California.( mm, except per share data)Balance Sheet Date09/30/2021Cash & Cash Equivalent: 373.0Net Loans: 828.6Total Assets: 1,571.5Total Deposits: 1,404.4Debt:SUMMARY Profits continue despite COVID – The Company reported Q3F21 netincome of 6.6M ( 1.12/share), up 78% Y/Y due to the Feather River Bancorpacquisition, an increase in net interest income, and lower provision for loanlosses. Net interest income was up 42% Y/Y due to the acquisition, an increasein interest income and an increase in PPP fees. The provision for loan lossesdecreased 0.550M Y/Y, to 0.250M. Closed acquisition creates upside – The Company closed its previouslyannounced 23.4M acquisition of Feather River Bancorp on 7/1/2021. Assetsincreased to 1.6B at Q321 end, up from 1.3B at Q221. Deposits also increasedto 1.4B in Q321 from 1.1B in Q221. Additional attractive features from theacquisition include expanded market opportunities in Northern Californiamarkets, scale is enhanced with geographic expansion, it further diversifies theloan portfolio, and is immediately accretive to EPS. Strong core deposits – Plumas has a strong history of increasing its demand,savings, and money market deposits from local businesses and individuals. Intotal, deposits grew by 44% Y/Y to reach 1.4B on September 30, 2021. Since2015, the Company has grown deposits at a 13% CAGR. Diversified loan portfolio – PLBC provides a range of lending servicesincluding retail consumer, automobile, home equity, commercial real estate,commercial and industrial term loans, as well as SBA government-guaranteedloans, agricultural loans, and credit lines. The breadth of loan diversificationhelps Plumas to avoid becoming overly concentrated to a single industry. Non-interest earnings income growth– In addition to the Company’sprimary source of revenue, interest income, Plumas also derives 18% of itsrevenue from a variety of noninterest income items including loan servicing fees,service charges on deposit accounts, interchange revenue and gains on sales ofSBA 7a loans. Plumas has grown non-interest income 8% since 2015. Successful growth strategy - The Company continued to expand its branchoperations into targeted growth markets of Northern California andNorthwestern Nevada over the years with great success including the purchaseof Mutual of Omaha Bank’s Carson City Branch in October 2018. Valuation – We use a comp analysis on P/E and P/TBV to help framevaluation. Using a P/E range of 9x to 11x with a mid-point of 10x on our FY21EPS estimate results in a valuation range of 32.50 to 39.75 with a mid-pointof 36.25. Using a P/TBV multiple range of 1.4x to 1.7x, we arrive at a valuationrange of 30.00 to 36.25 with a mid-point of 34.25. Additional details can befound on page 8. 23.8Equity (Book Value): 129.5Equity/Share: 22.29CONDENSED INCOME STATEMENTS( mm, except per share data)FY 12/31Int.IncomeNet Int.IncomeNetIncomeDil.EPSFy18 34.3 33.1 14.0 2.68FY19 39.3 37.6 15.5 2.97FY20 39.6 38.4 14.5 2.77FY21E 47.4 46.2 20.2 3.62LARGEST SHAREHOLDERSCortopassi Partners, L.P.FMR LLCSiena Capital Partners, LPThe Vanguard Group, Inc.Manulife Asset MgmtGrandeur Peak Global AdvColumbia Mgmgt Invest AdvRobert McClintockTerrance ReesonWalthausen & CoWilliam ElliottAndrew 2,071102,77286,03175,65075,60069,640STOCK CHART 40.00 35.00 30.00 25.00 20.00Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21See Important Disclosures and Disclaimers at the end of this report.1
BUSINESS OVERVIEWPositioned in Strong, High-Growth MarketsPlumas Bank was founded in 1980 in Quincy, California. PlumasBancorp was founded in 2002 for the purpose of operating as theholding company for Plumas Bank in a one bank holding companyreorganization. This specific holding structure gives the Companygreater operational flexibility as well as expansion anddiversification benefits.Plumas Bank operates 14 traditional branches with 12 located inCalifornia and 2 in Nevada. In December 2015, the Companyopened its first branch outside of California in Reno, Nevada, andcontinued expansion in 2018 by purchasing a Mutual of OmahaBank branch in Carson City. In addition to its traditional branchlocations, PLBC also operates a lending office specializing ingovernment guaranteed lending in Auburn, California, andcommercial/agricultural lending office in Chico California andKlamath Falls Oregon.Exhibit 1: Plumas Bank ExpansionPlumas Bank has successfully marketed to retail customers in itslegacy branches by heavily integrating themselves into thecommunities where branches are located. Plumas is then able toexpand upon a traditional deposit account relationship by offeringadditional services such as consumer and commercial loans. As theCompany has expanded into larger markets, competition fortraditional retail deposits has increased. In these markets Plumasis focused on extending loans to small and medium sizedbusinesses, who may then turn into business and retail depositcustomers.In addition to organic growth the Company also made its firstNorthern Nevada acquisiton in October 2018, purchasing a formerMutual of Omaha Bank branch location in Carson City, Nevada.This was followed by the acquisition of Feather River Bancorp(FRB) in July 2021. The FBR acquisition expands marketopportunities in Northern California markets, enhances scale withgeographic expansion, further diversifies the loan portfolio, and isimmediately accretive to EPS.Accompanying its traditional branch network, the Bank alsooperates an 11-person office located in Auburn, Californiaspecializing in government-guaranteed loans. Most of these loansare 75% guaranteed by the Federal Government and are variablerates tied to the Prime rate. For loans originated in 2021 theguarantee has been increased to 90% until October 1, 2021. Theguaranteed portion of the loan is then sold off in the secondarymarket and serviced by Plumas Bank for a fee of 1%, while theunguaranteed portion is retained by Plumas Bank. Selling thefederally guaranteed portion allows Plumas to profit on the sale aswell as continuing to profit on the higher yielding unguaranteedportion of the loan. Richard Belstock, CFO, and his team have along history of managing and selling these SBA loans giving theman added competitive advantage. PLBC has received nationwidePreferred Lender status with the United States Small BusinessAdministration.Lastly, the Company has commercial and agricultural lendingoffices in Chico, California, and Klamath Falls Oregon. Theprimary commercial lending services include term real estate,commercial and industrial term loans, agricultural loans,construction loans, and credit lines, as well as land developmentloans on a limited basis.Source: Company ReportsPlumas Bancorp currently has assets of 1.6B up roughly 167%from 2015. The Company has grown both organically andinorganically over the years. The Company’s organic growth hascome from its ability to open additional branches and expand itsgeographic footprint as well as investing in technology to help itsbusiness and retail customers. In addition to its investments intechnology, Plumas provides a unique style of communityoriented, personalized service. The Company relies on localizedpromotional activities and personal contacts from the Company’sdirectors, employees, and shareholders. With every location thatis opened, PLBC’s focus is on community banking and putting theresources in place (from Directors down to service team members)to successfully compete against other banks in the area. Thisindividualized, community focused approach coupled with flexbilepolicies has been succesful in gaining market share from largerregional and national competitors.Loan PortfolioPlumas’ main source of revenue is generated from providing loansto retail and commercial customers who reside in the surroundingareas. The Company’s commercial loans are largely provided tosmall and medium sized businesses. As of Q3F21 commercial realestate loans comprised the largest portion of the Bank’s loanportfolio. Although commercial real estate occupies a large portionof the portfolio, Plumas attempts to further diversify through loansof differing property types and geographic location throughoutCalifornia, Northern Nevada and Southern Oregon. PLBC’slenders are separated by geographic region, and each integratesthemselves into the communities they serve. These are seasonedlenders who have longstanding relationships within theirrespective communities, which helps the Company earn businesswhen rate competition is stiff.2
Exhibit 2: CRE Distribution by RegionAs mentioned earlier, Plumas is currently focused on small tomedium size commercial businesses. They offer both floating andfixed rate loans and obtain collateral through real property,business assets and deposit accounts. PLBC’s overall loan balanceshave been trending upward since 2015 and as of Q3F21, theportfolio was at a record level of 839M with an average yield of5.40% in 2021.Exhibit 4: Loan TrendsSource: Company Reports, Stonegate Capital PartnersDespite the Company’s current concentration in commercial realestate, which comprises 48.0% of the total portfolio, Plumas hascontinued to diversify the portfolio to mitigate the risks associatedwith any one sector. Moreover, 73% of the Company’s portfoliobalance is variable rate which helps to reduce interest rate risk.In addition to the Company’s real estate loan portfolio, auto loanshave also become a large portion of the portfolio. In fact, the autoloan portfolio has grown from 2.5% of gross loans at year-end 2011to 10.8% of gross loans as of Q3F21. Auto loans have provided abenefit of diversification to PLBC’s other loans as auto loans tendto have a much shorter term and balance than commercial realestate loans and are fixed rate. The Company also has a largeportfolio of agricultural loans, which it intends to continue topursue. As of Q3F21 agricultural loans totaled 134.6M or 16.0%of the total loan portfolio.Exhibit 3: Current Loan CompositionSource: Company ReportsThe Company’s current loan to deposit ratio is 59.7% as of Q3F21,which compares to 72.8% at Q4F20. Management notes that thebalance sheet is adequately structured to accommodate additionalloan growth; thus, Plumas has the capacity to fulfill the creditneeds of creditworthy applicants.DepositsAlongside Plumas’ loan balances, deposits have shown steadygrowth over recent years. Deposits come from both individualsand businesses living or located in the Company’s local markets.The deposit base consists of: Demand depositsSavings depositsMoney market accountsTime deposit accountsDeposits represent the primary source of funds for the Bank. Theindividuals and businesses who open accounts with the Bank areconsidered long-term, stable relationships which helps facilitate asteady growth of overall deposit balances without majorvariations.Source: Company Reports, Stonegate Capital PartnersCurrently, Plumas Bancorp is also actively participating in theCARES Act, Paycheck Protection Program (PPP). As of Q3F21, theCompany has originated 197M in total PPP loans, with over 590loans outstanding with an average balance of 101,000. Plumascollected a total of 12.1M in fees from the SBA and has a balanceof unearned fees of 2.6M on September 30, 2021. On September30, 2021, Plumas Bancorp had a balance of PPP loans of 60M, ofwhich 4.2M has a two-year maturity and 55.8M with a five-yearmaturity.3
Exhibit 5: Breakdown of Deposit BaseNet Interest Income and MarginsThe net interest margin is a good indicator of how profitably banksare making investments. Exhibit 7 provides the net interest margintrends.Exhibit 7: Net Interest Margin (As a % of Avg Earnings Assets)Net Interest %4.05%4.10%4.02%3.90%3.70%3.50%2014Source: Company Reports, Stonegate Capital PartnersPlumas Bancorp has been successful in growing depositsorganically since the inception of the bank. In the past few years,the Bank’s deposits have grown consistently year over year from abalance of 527M in 2015 to a record 1,404M as of September 30,2021. These are core, non-brokered deposits.Exhibit 6: Deposit Trends201520162017201820192020Source: Company Reports, Stonegate Capital PartnersSince 2014, Plumas has done a good job growing both net interestincome and net interest income margins. The primary driver ofgrowth has been an increase in interest income on investmentsand loans. However, in F20, Plumas Bank saw a decrease in netinterest margin largely driven by a decrease in yield on interestearning assets as market interest rates fell after the FederalReserve cut rates in response to the COVID-19 crisis and anincrease in cash balances.Non-Interest IncomeNon-interest income has become a secondary source of revenuefor the Bank and has continued to grow as deposits and loansincrease. Noninterest income is derived primarily from servicecharges on deposit accounts, interchange revenue, gains on salesof SBA loans and loan servicing fees. Although noninterest incomehas increased steadily since 2014, the strong growth of the loanportfolio and interest income has caused non-interest income tobecome a less important factor in total revenue growth. In F20,non-interest income increased 4% y/y to 8.5M. The largestcomponent of the increase in non-interest income was a 477Kincrease in the gain on sale of SBA loans.Exhibit 8: Non-Interest Income TrendsSource: Company Reports, Stonegate Capital PartnersDue to slower growth during November through April and highergrowth from May-October, the company does experience someseasonality in its deposits. Seasonality in these markets isgenerally due to the natural ebb and flow of tourism andagriculture production that is higher in the summer months;however, this has become much less prevalent as the Company’sgeographic diversification increases. Plumas also maintains aborrowing arrangement through Federal Home Loan Bank SanFrancisco (FHLB) which helps the Bank meet any funding needsthey may have. The Company can borrow up to 230M fromFHLB; however, they are required to hold FHLB stock as acondition of the agreement.Source: Company Reports, Stonegate Capital Partners4
MARKET OVERVIEWCommunity banks focus on providing traditional banking servicesin their local communities. These banks obtain most of their coredeposits from the local communities they service as well as provideloans to local businesses and consumers. Most community banksmaintain strong relationships within the community through theiremployees, directors, and owners that helps facilitate loan anddeposit growth. These relationships allow local community bankssome flexibility in lending to small, local businesses, who may notbe able to obtain loans from larger national or regional banks.In addition to being relationship driven, community banks alsotend to be significantly smaller in asset size when compared tonational or regional banks. Community banks are commonlydefined as holding less than 10 billion in assets.Publicly traded community banks have performed well over thepast 3 years as tax reform and rising interest rates have helpedgrowth in net income. In 2017, the federal tax overhaul loweredthe corporate statutory tax rate to 21% from the 34% statutory taxrate. According to the FDIC, community banks had an increase of18.7% in net income directly attributable to the tax cut.Community banks continued to perform well in 2019 with netincome growing 7.5% from full-year 2018. In 2020, COVID-19pandemic negatively impacted many community banks as netincome declined 9.4% from 2019.Although the last few years have yielded strong results, the impactof COVID-19 on the economy in 2020 has provided a tougherenvironment for community banks. One of the biggest impacts isdecreased yields on investable securities and loans as the FederalReserve cut rates twice to reduce short term interest rates to near0%. In addition to decreased yields on interest earning assets,community banks will be at risk for increased defaults on loans,especially those banks that have large exposure to the mostimpacted areas of the economy like entertainment, travel, and oiland gas businesses. According to the Mortgage BankersAssociation Economic Forecast, Q1F20 and Q2F20 saw the biggesthits from COVID-19, with real GDP declining at-5% and -31.4%,respectively. However, growth snapped back in Q3F20 at 33.4%and Q4F20 was 4.1%. Currently, the MBA forecasts 2021 real GDPgrowth at 5.9%, which compares to -2.5% for 2020.Security of systems – Any material breaches in the security ofPlumas’ banking systems could cause material losses for theCompany. Protecting sensitive consumer data is essential as ismaintenance and backup of key financial and customerinformation.Failure to stay competitive –Plumas operates in a competitivemarketplace, and failure of its branches to stay competitive in itsrespective local markets could cause significant harm to financialresults and result in closures; competition continues to increase asconsolidation occurs in the industry and changes to regulationsaffect the business. The Company is much smaller than certaincompetitors that have access to significantly more resources whencompared to Plumas. Additionally, technology now enablesbanking online which broadens the reach of the competition, andPlumas faces higher costs than the newer trending online financialservices organizations that lack physical branches.Trading of common shares is limited – Trading in theCompany’s common shares is not very active, which could causeconcern for current and future shareholders, and the limitedtrading can cause exaggerated price volatility for shares of PLBC.Access to future capital – Should the Company incursignificant loan losses, desire to execute acquisitions, or requireadditional funds for other operational purposes, the timing andterms of the capital may not be favorable given certain economicand/or market conditions.External shocks - War, terrorism, other acts of violence ornatural or manmade disasters such as a global pandemic mayaffect the markets in which the Company operates, the Company'scustomers, the Company's delivery of products and customerservice, and could have a material adverse impact on our business,results of operations, or financial condition.RISKSGeographic concentration – Plumas is largely concentrated inNorthern California and Northwestern Nevada, which exposes theCompany to risks associated with lack of geographicdiversification. A local or regional economic downturn couldadversely affect the Company’s profitability.Drought Conditions in the West – A portion of PLBC’scustomers are involved in the agricultural business, whichdepends on water. If the lack of water due to the recent dryconditions continues, those that depend on the agriculturebusiness may not be able repay outstanding loans or go out ofbusiness.Changes in interest rates – The Company’s results depend onits net interest income. Should the rates it earns on loans,securities and other interest-bearing assets continue to declineresults would suffer.5
BALANCE SHEETSPl u m a s Ba n cor p a n d Su bsidia r yCon sol ida t ed Ba l a n ce Sh eet s (in t h ou sa n ds , except per sh a r e a m ou n t s)Fisca l Yea r : Decem berFY 2019FY 2020Q3F21Sep-21A sset sCa sh a n d ca sh equ iv a len t sIn v est m en t secu r it ies a v a ila ble-for -sa leLoa n s (less a llow a n ce for loa n losses)Rea l Est a t e a cqu ir ed t h r ou g h for eclosu r ePr em ises a n d equ ipm en t , n etBa n k-ow n ed life in su r a n ceGoodw illA ccr u ed in t er est r eciev a ble a n d ot h er a sset sT ot a l a sset s 4 6 ,9 4 21 5 9 ,3 2 06 1 6 ,0 3 67 071 4 ,6 2 91 3 ,1 8 41 4 ,3 7 3 865,191 1 8 4 ,9 0 91 7 9 ,6 1 37 0 0 ,7 9 54 031 4 ,0 1 61 3 ,5 2 61 8 ,3 1 4 1,111,576 3 7 2 ,9 9 32 7 5 ,0 6 18 5 6 ,9 7 55691 6 ,0 0 51 5 ,7 4 35 ,5 0 22 8 ,6 3 2 1,571,480Lia bil it iesNon in t er est -bea r in gIn t er est -bea r in g deposit sT ot a l deposit s 3 3 1 ,6 1 94 1 5 ,7 0 5747,324 5 1 6 ,6 8 24 5 7 ,2 9 2973,974 7 2 8 ,0 2 16 7 6 ,4 2 51,404,4461 6 ,0 1 37 ,0 3 91 0 ,3 1 0780,6861 3 ,8 7 88 ,2 6 05 ,0 0 01 0 ,3 1 01,011,4221 3 ,4 5 01 3 ,7 4 11 0 ,3 1 01,441,9477 ,3 1 27 5 ,1 4 42 ,0 4 984,505 865,1917 ,6 5 68 7 ,7 5 34 ,7 4 5100,154 1,111,5762 6 ,7 0 51 0 0 ,9 9 21 ,8 3 6129,533 1,571,480 Repu r ch a se A g r eem en t sA ccr u ed in t er est pa y a ble a n d ot h er lia bilit iesFeder a l Hom e Loa n Ba n k a dv a n cesJu n ior su bor din a t ed defer r a ble in t er est deben t u r esT ot a l l ia bil it iesSh a r eh ol der s' equ it yCom m on st ockRet a in ed ea r n in g sA ccu m u la t ed ot h er com pr eh en siv e in com e (loss), n etT ot a l sh a r eh ol der s equ it yT ot a l l ia bil it ies & sh a r eh ol der s equ it yBook v a lu e per sh a r eRet u r n on a v er a g e equ it y (%)Ret u r n on a v er a g e a sset s (%)Lev er a g e r a t io (%)1 6 .3 62 0 .21 .81 0 .41 9 .3 31 5 .51 .49 .22 2 .2 91 9 .61 .78 .6Source: Com pany Reports ; Stonegate Capital Partners6
INCOME STATEMENTSPl u m a s Ba n cor p a n d Su bsidia r yCon sol ida t ed St a t em en t s of In com e (in t h ou sa n ds , except per sh a r e a m ou n t s)Fisca l Yea r : Decem berFY 2018FY 2019FY2020FY2021 E 2 9 ,7 6 1 3 4 ,2 7 5 3 5 ,9 8 0 3 ,9 5 14 ,3 9 53 ,4 3 46106322103 0034,32239,30239,62447,435In t er est on deposit s7161 ,2 0 183 2841In t er est on ju n ior su bor din a t ed defer r a ble in t er est deben t u r es5105313 85340In t er est in com eIn t er est a n d fees on loa n sIn t er est on in v est m en t secu r it iesOt h erT ot a l in t er est in com e4 2 ,7 7 74 ,3 5 8In t er est expen seOt h ,2431 ,0 0 01 ,5 0 03 ,1 7 51 ,2 9 532,08636,05535,22144,948Ser v ice ch a r g es2 ,5 7 62 ,6 9 52 ,3 2 32 ,6 9 5In t er ch a n g e r ev en u e2 ,1 7 42 ,3 7 42 ,5 6 82 ,4 4 0Ga in on sa le of loa n s1 ,9 0 38671 ,3 4 47 008007 60841942114--3283425 00T ot a l In t er est Expen seNet in t er est in com ePr ov ision s for loa n lossesNet in t er est in com e a ft er pr ov ision s for l oa n l ossesNon -in t er est in com eLoa n ser v icin g feesGa in (loss) on sa le of in v est m en t s(8 )Ea r n in g s on ba n k ow n ed life in su r a n ce policies, n et328Ot h er1 ,1 0 89971 ,0 4 51 ,6 0 0T ot a l n on -in t er est in com e8,8818,1358,4638,876Non -in t er est expen seSa la r ies & em ploy ee ben efit s1 2 ,1 3 81 3 ,0 0 91 3 ,2 8 21 3 ,3 4 8Occu pa n cy & equ ipm en t2 ,9 6 23 ,3 1 13 ,3 6 23 ,7 6 5Ot h er6 ,7 4 16 ,4 9 07 ,0 8 88 ,8 6 0T ot a l n on -in t er est expen se21,84122,81023,73225,974Net in com e befor e in com e t a xes19,12621,38019,95227,851Pr ov ision for in com e t a x es5 ,1 3 45 ,8 6 85 ,4 7 7Net in com e 13,992 15,512 14,475 20,192Ba sic EPS - GA A P 2.74 3.01 2.80 3.65Dil u t ed EPS - GA A P 2.68 2.97 2.77 3.62 0.36 0.46 0.36 0.56Ca sh div iden ds decl a r ed per sh a r e7 ,6 5 9Weigh t ed a v er a ge sh a r es ou t st a n din gBa sic5 ,1 0 85 ,1 5 55 ,1 7 75 ,5 2 9Dilu t ed5 ,2 1 95 ,2 2 85 ,2 3 05 ,5 8 2Source: Com pany Reports ; Stonegate Capital Partners7
VALUATIONPlumas’ experienced management and service teams bring not only valuable industry knowledge, but also a unique grasp of the local economyand target demographics. While we do expect some volatility and softness due to COVID-19’s overall economic impact, we believe the Companyhas ample liquidity to not only weather the storm but also take advantage of any opportunities that may present themselves.Exhibit 12: Comparable AnalysisPlumas Bancorp and Subsidiary(all figures in M expect per share information)Financial (MRQ )NameMerchants BancorpHeritage Commerce CorpCentral Valley Community BancorpOak Valley BancorpUnited Security BancsharesValley Republic BancorpCitizens BancorpSummit State Bank1st Capital BancorpTickerPriceMBINHT BKCVCYOVLYUBFOVLLXCZBCSSBIFISB ( 8.860.312.08.117.04.25.96.75.6Mrkt Cap 1,382.6 708.8 255.3 142.3 137.4 180.5 99.4 105.3 73.4Assets 10,952.0 5,463.0 2,348.4 1,856.8 1,292.8 1,411.9 1,078.8 922.6 950.7BV/sh sh MedianPlumas BancorpPLBC 35.105.8 204.1 1,571.5 22.29 21.352019 2.220.901.401.290.781.741.580.831.10 P/E2020ValuationP/EP/BV2021E(2 )20202021EP/TBVCreditNPAs /Assets(3 )Profitability(3 )Res. /NPLsNIMRO ARO E5.290.541.301.370.452.560.581.400.71 7.02 0.84 %17.9%N/A 1.34 1.34 1.68 1.33 3.38 9%776%34.9%32.9%1.3%1.1%13.7%12.6% 2.97 2.77 3.6212.7x9.7x1.6x1.6x0.3%211%38.4%1.5%17.5%(1) Previous day's closing price(2) Estimates are from CapitalIQ except for PLBC which are Stonegate estimates(3) Credit and Profitability are for the LTM periodSource: Company Reports, Stonegate Capital Partners, Capital IQWe employ a P/E and P/TBV to help frame valuation. Based off the above metrics, PLBC is trading at a discount to comp P/E ratios and at aslight premium to comps P/TBV. We also note that Plumas has a higher ROA and ROE vs. the comps. In addition, the Company’s net incomemargin is superior to the average of its comps. For these reasons, we believe Plumas Bancorp makes a strong case to trade at a premiumvaluation to the comp set.Price / EarningsBased on FY20 results, PLBC is trading at a 12.7x P/E vs. 16.5x for comparable companies. While FY21 EPS estimates for selected comparableswas largely unavailable, those with estimates are trading at an average of 10.1x. Combining current multiples along with 3-year historicaltrading multiples for the comps and PLBC, we believe PLBC should trade in a forward P/E range of 9x to 11x with a mid-point of 10x. Usingthis range on our FY21 EPS estimate results in a valuation range of 32.50 to 39.75 with a mid-point of 36.25.Price / Tangible BookPLBC is currently trading at 1.6x P/TBV vs. comps at 1.4x. Combining current multiples along with historical trading ranges of the comps andPLBC, we believe using a P/TBV multiple range of 1.4x to 1.7x is reasonable. As such, we arrive at a valuation range of 30.00 to 36.25 witha mid-point of 34.25.8
RECENT NEWSOctober 21, 2021 – Plumas BancorpDeclares Quarterly Cash Dividend.October 20, 2021 – Plumas BancorpReports Record Third Quarter 2021Results.July 22, 2021 – Plumas BancorpDeclares Quarterly Cash Dividend.July 21, 2021 – Plumas BancorpReports Record Second Quarter 2021Results.July 1, 2021 – Julie MoreheadAppointed to Plumas Bancorp andPlumas Bank Board of Directors.July 1, 2021 – Plumas Bancorp AcquiresFeather River Bancorp, Inc.May 13, 2021 – Plumas BancorpAwarded Prestigious Raymond JamesCommunity Bankers Cup for 4thConsecutive Year.April 22, 2021 – Plumas BancorpDeclares Quarterly Cash Dividend.April 21, 2021 – Plumas BancorpReports Record Quarterly Results.March 15, 2021 – Plumas BancorpRelocates its Corporate Headquarters toReno, Nevada.March 11, 2021 – Plumas Bancorp toAcquire Feather River Bancorp, Inc.February 2, 2021 – Plumas BankDonates 25,000 to Support Local NonProfits Addressing Food Insecurity.January 21, 2021 – Plumas BancorpDeclares Quarterly Dividend Issuance.January 20, 2021 – Plumas BancorpReports Quarterly Earnings.January 4, 2021 – Plumas BancorpAnnounces the Retirement of PastPresident and Board Member William E.Elliott.December 15, 2020 – Plumas BankCelebrates 40 Years of Serving OurCommunities.October 22, 2020 – Plumas BancorpDeclares Quarterly Dividend Issuance.October 21, 2020 – Plumas BancorpReports Third Quarter 2020 Results.September 29, 2020 –Plumas BancorpReceives Nationwide Recognition fromTwo Prestigious Companies: D.A.Davidson’s Fall 2020 Bison Select andPiper Sandler’s Sm-All Stars.July 16, 2020 – Plumas BancorpDeclares Quarterly Dividend Issuance of 0.12 per share.July 15, 2020 -- Plumas BancorpReports Growth to Over 1 Billion in TotalAssets and Second Quarter 2020 Results.June 29, 2020 – Plumas BancorpNamed to the Russell 2000 Index.PLUMAS BANCORP GOVERNANCEAndrew Ryback – Andrew J. Ryback is the President and Chief Executive Officer of PlumasBank and its holding company, Plumas Bancorp. He joined Plumas Bank in July 2001 andbecame a member of the Company's Board of Directors in 2016. Mr. Ryback received his Bachelorof Science degr
Plumas Bank offers an array of deposit products such as checking, savings, and retirement accounts in addition to its loan portfolio consisting of commercial, industrial, agricultural, and construction loans. Plumas Bank also provides consumer, home equity, and auto loans. Plumas Bank currently operates 14 branches including 12 in California .
