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Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2019
Accounting Policies [Abstract]  
Consolidation, Policy [Policy Text Block]
Consolidation and Basis of Presentation
 
The consolidated financial statements include the accounts of the Company and the consolidated accounts of its wholly-owned subsidiary, Plumas Bank. All significant intercompany balances and transactions have been eliminated.
 
Plumas Statutory Trust I and Trust II are
not
consolidated into the Company's consolidated financial statements and, accordingly, are accounted for under the equity method. The Company's investment in Trust I of
$347,000
and Trust II of
$178,000
are included in accrued interest receivable and other assets on the consolidated balance sheet. The junior subordinated deferrable interest debentures issued and guaranteed by the Company and held by Trust I and Trust II are reflected as debt on the consolidated balance sheet.
 
The accounting and reporting policies of Plumas Bancorp and subsidiary conform with accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. In the opinion of management, the unaudited condensed consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the Company’s financial position at
September 30, 2019
and the results of its operations and its cash flows for the
three
-month and
nine
-month periods ended
September 30, 2019
and
2018.
Our condensed consolidated balance sheet at
December 31, 2018
is derived from audited financial statements.
 
The unaudited condensed consolidated financial statements of the Company have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting on Form
10
-Q. Accordingly, certain disclosures normally presented in the notes to the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted. The Company believes that the disclosures are adequate to make the information
not
misleading. These interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's
2018
Annual Report to Shareholders on Form
10
-K. The results of operations for the
three
-month and
nine
-month periods ended
September 30, 2019
may
not
necessarily be indicative of future operating results. In preparing such financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the periods reported. Actual results could differ significantly from those estimates.
Reclassification, Policy [Policy Text Block]
Reclassifications
 
Certain reclassifications have been made to prior years’ balances to conform to the classifications used in
2019.
These reclassifications had
no
impact on the Company’s consolidated financial position, results of operations or net change in cash and cash equivalents.
Segment Reporting, Policy [Policy Text Block]
S
egment Information
 
Management has determined that since all of the banking products and services offered by the Company are available in each branch of the Bank, all branches are located within the same economic environment and management does
not
allocate resources based on the performance of different lending or transaction activities, it is appropriate to aggregate the Bank branches and report them as a single operating segment.
No
customer accounts for more than
10
percent of revenues for the Company or the Bank.
Revenue from Contract with Customer [Policy Text Block]
Revenue from Contracts with Customers
 
The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic
606,
“Revenue from Contracts with Customers” (“Topic
606”
). Under Topic
606,
the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has
not
been recognized in the current reporting period that results from performance obligations satisfied in previous periods.
 
Most of the Company’s revenue-generating transactions are
not
subject to ASC
606,
including revenue generated from financial instruments, such as the Company’s loans and investment securities. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Condensed Consolidated Statements of Income was
not
necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic
606
that significantly affects the determination of the amount and timing of revenue from contracts with customers.
New Accounting Pronouncements, Policy [Policy Text Block]
Recently Adopted Accounting Pronouncements
 
On
February 25, 2016,
the FASB issued ASU
2016
-
02,
Leases. The most significant change for lessees is the requirement under the new guidance to recognize right-of-use assets and lease liabilities for all leases
not
considered short-term leases, which is generally defined as a lease term of less than
12
months. This change results in lessees recognizing right-of-use assets and lease liabilities for most leases currently accounted for as operating leases under prior lease accounting guidance. ASU
2016
-
02
is effective for interim and annual periods beginning after
December 15, 2018.
The Company has several lease agreements, including
two
branch locations, which are currently considered operating leases, and therefore,
not
recognized on the Company’s consolidated statements of condition. The Company adopted ASU
No.
2016
-
02
on
January 1, 2019
and recorded
$565,000
in right-of-use assets and lease liabilities on adoption.
 
In
July 2018,
the FASB issued ASU
No.
2018
-
11,
Leases - Targeted Improvements. ASU
No.
2018
-
11
provides entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU
No.
2016
-
02.
Specifically, under the amendments in ASU
2018
-
11:
(
1
) entities
may
elect
not
to recast the comparative periods presented when transitioning to the new leasing standard, and (
2
) lessors
may
elect
not
to separate lease and non-lease components when certain conditions are met. The amendments have the same effective date as ASU
2016
-
02
(
January 1, 2019
for the Company). The Company adopted ASU
No.
2018
-
11
on
January 1, 2019.
The provisions of ASU
2018
-
11
did
not
have a material impact on the Company’s Consolidated Financial Statements.
 
On
March 30, 2017,
the FASB issued ASU
2017
-
08,
Receivables – Non-Refundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities. This ASU amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The amendments do
not
require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU
2017
-
08
is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after
December 15, 2018.
Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the
first
reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company adopted ASU
No.
2017
-
08
on
January 1, 2019.
The provisions of ASU
No.
2017
-
08
did
not
have a material impact on the Company’s Consolidated Financial Statements.
 
Pending Accounting Pronouncements
 
In
June 2016,
the FASB issued ASU
No.
2016
-
13,
Measurement of Credit Losses on Financial Instruments. ASU
No.
2016
-
13
significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (
1
) financial assets subject to credit losses and measured at amortized cost, and (
2
) certain off-balance sheet credit exposures. This includes, but is
not
limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does
not
apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU
No.
2016
-
13
also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. ASU
No.
2016
-
13
is effective for interim and annual reporting periods beginning after
December 15, 2019;
early adoption is permitted for interim and annual reporting periods beginning after
December 15, 2018.
Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the
first
reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company has begun its implementation efforts by establishing an implementation team chaired by the Company’s Chief Lending Officer and composed of members of the Company’s credit administration and accounting departments. We have purchased software to support the CECL calculation of the allowance for loan losses under ASU
No
2016
-
13
and have engaged the software vendor to assist in the transition to the CECL model. The Company’s preliminary evaluation indicates the provisions of ASU
No.
2016
-
13
are expected to impact the Company’s Consolidated Financial Statements, in particular the level of the reserve for credit losses. However, the Company continues to evaluate the extent of the potential impact.
 
 
On
October 16, 2019,
the FASB approved a proposal to change the effective date of ASU
No.
2016
-
13
for smaller reporting companies, as defined by the SEC, and other non-SEC reporting entities delaying the effective date to fiscal years beginning after
December 31, 2022,
including interim periods within those fiscal periods.
As the Company is a smaller reporting company and has
not
adopted provisions of the standard early, the delay is applicable to the Company.
 
In
August 2018,
the FASB issued ASU
No.
2018
-
13,
Fair Value Measurement, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update modify the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The update is effective for interim and annual periods in fiscal years beginning after
December 15, 2019,
with early adoption permitted. Entities are also allowed to elect early adoption of the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. As ASU
No.
2018
-
13
only revises disclosure requirements, it will
not
have a material impact on the Company’s Consolidated Financial Statements.