- Earnings rose 14.2% to $7.2 million in Q1 2025
- Total deposits increased 5.6% to $1.4 billion
- Strategic merger with Cornerstone Community Bancorp to create a $2.3 billion asset entity
Plumas Bancorp (PLBC, Financial) announced robust financial results for the first quarter of 2025, with earnings reaching $7.2 million, or $1.21 per share, marking a significant increase from $6.3 million or $1.06 per share in the first quarter of 2024.
The bank's net-interest income rose by $1.1 million, reaching $18.5 million this quarter. Additionally, non-interest income witnessed a significant boost to $3.2 million, partially attributed to a favorable $1.1 million legal settlement related to the Dixie Fire.
Plumas Bancorp reported a substantial growth in its gross loans, which increased by 3.5% to $1.0 billion, while total deposits grew by 5.6%, reaching an impressive $1.4 billion. Furthermore, the book value per share experienced a considerable rise of 15.7%, amounting to $31.68.
Asset quality improved, with nonperforming assets dropping to 0.23% of total assets, a decrease from 0.37% year-over-year. This improvement underscores the bank's enhanced credit management practices.
In a move to expand its footprint, Plumas Bancorp entered into a definitive merger agreement with Cornerstone Community Bancorp. This strategic merger is expected to form a combined entity with assets surpassing $2.3 billion, fortifying the bank's presence in Northern California and Western Nevada. The merger expenses recorded for the quarter amounted to $569 thousand.
Despite the success in earnings, the return on average equity slightly decreased to 16.0% from 16.4% year-over-year, and non-interest expense saw a rise of $1.1 million due to merger-related costs.
Plumas Bancorp's CEO, Andrew J. Ryback, expressed optimism about the merger, stating it will provide enhanced opportunities for clients and shareholders alike, ensuring long-term growth and success.
As the bank continues to expand, Piper Sandler's inclusion of Plumas Bancorp into its research coverage, alongside Raymond James and Stephens, enhances the institution's market visibility and investor confidence.
