Plumas BancorpNasdaqCM:PLBC Stock Report

Second quarter 2021 earnings released: EPS US$0.86 (vs US$0.61 in 2Q 2020)

The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$11.6m (up 18% from 2Q 2020). Net income: US$4.49m (up 41% from 2Q 2020). Profit margin: 39% (up from 32% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 6% per year.

Plumas Bancorp (NasdaqCM:PLBC) completed the acquisition of Feather River Bancorp, Inc.

Plumas Bancorp (NasdaqCM:PLBC) entered into expression of interest to acquire Feather River Bancorp, Inc. for approximately $22.1 million on October 26, 2020. Plumas Bancorp (NasdaqCM:PLBC) entered into an agreement to acquire Feather River Bancorp, Inc. on March 10, 2021. As part of consideration, Plumas will pay approximately $22.1 million to Feather River shareholders. Consideration consist of $4.7 million in cash and 598,129 shares of Plumas Common Stock. Upon completion, approximately 10% of Plumas’ outstanding common stock will be owned by shareholders of Feather River Bancorp. Immediately after the merger, Feather River’s wholly owned subsidiary, Bank of Feather River, will merge with and into Plumas Bank. Upon termination, Feather River shall be obligated to pay Plumas, in immediately available funds, $0.7 million as agreed upon liquidated damages plus the documented and reasonable out- of- pocket expenses incurred by Plumas or any of its Affiliates in connection with this agreement and the transactions contemplated herein, in an amount not to exceed $0.3 million. The Directors and Officers of Plumas at the closing will be the Directors and Officers of the corporation until they are removed, or their successors are elected and qualified. Plumas agrees that effective no later than immediately prior to the closing, Plumas shall take all action necessary to appoint or elect one new Director to each of the Plumas Board and the Plumas Bank Board, such new Director to be selected from Feather River’s existing Directors. Plumas agrees that as of and following the closing, the employees of Feather River and its subsidiaries as of the closing who continue to be employed by Plumas Bank. The transaction is subject to approval of merger by Feather River and Plumas Bancorp Board, approval by Feather River majority shareholders, approvals or waivers by, the Federal Reserve Board, the Federal Deposit Insurance Corporation and the Department of Financial Protection and Innovation of the State of California, filings with the SEC and state securities authorities, as applicable, in connection with the issuance of Plumas Common Stock in the merger and approval of listing of such Plumas Common Stock on the NASDAQ Global Market. Feather River and Plumas board of directors has unanimously approved the merger agreement. Feather River Bancorp shareholder will hold a special meeting on June 24, 2021 to approve the transaction. The transaction is expected to close in second half of 2021. As per amended filing, the transaction is expected to close in the third quarter if 2021. David Gershon of Sheppard Mullin Richter & Hampton acted as legal advisor to Plumas Bancorp. Robert N. Flowers and Nate Van Emon of Stinson LLP acted as legal advisors to Feather River Bancorp. Plumas expects the acquisition to be approximately 6.8% accretive to earnings per share in 2021, excluding one-time transactions costs, and 8.1% accretive in 2022. ProBank Austin acted as financial advisor and rendered its fairness opinion to Feather River. Computershare is the transfer agent of Feather River. Plumas Bancorp (NasdaqCM:PLBC) completed the acquisition of Feather River Bancorp, Inc. on July 1, 2021. As of March 31, 2021, Feather River had total assets of approximately $200 million. As a part of the transaction, Julie Morehead, Feather River’s President and Chief Executive Officer appointed to the board of directors of Plumas and Plumas Bank effective as of July 1, 2021. Raymond James & Associates, Inc. acted as financial advisor to Plumas Bancorp.

Plumas Bancorp(NasdaqCM:PLBC) dropped from Russell 3000E Value Index