RENO, Nev., June 03, 2025 (GLOBE NEWSWIRE) -- Cornerstone Community Bancorp (“Cornerstone”) and Plumas Bancorp (“Plumas”) announced today that Cornerstone’s shareholders approved the principal terms of the Agreement and Plan of Merger and Reorganization providing for the merger of Cornerstone with and into Plumas (the “Merger”) and the conversion of each outstanding share of Cornerstone common stock into the right to receive cash and stock of Plumas. The completion of the Merger is subject to the satisfacti ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) COMMISSION FILE NUMBER: 000-49883 PLUMAS BANCORP (Exact Name of Registrant as Specified in Its Charter) California 75-2987096 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 5525 Kietzke Lane, Suite 100, Reno, Nevada 89511 (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, Including Area Code (775) 786-0907 PART I – FINANCIAL INFORMA ...

Group 1: Earnings Performance - Plumas Bancorp reported quarterly earnings of $1.20 per share, exceeding the Zacks Consensus Estimate of $1.13 per share, and up from $1.05 per share a year ago, representing an earnings surprise of 6.19% [1] - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - The revenue for the quarter ended March 2025 was $21.75 million, surpassing the Zacks Consensus Estimate by 5.67%, compared to $19.6 million in the same quarter last year [2] Group 2: Stock Performance and Outlook - Plumas Bancorp shares have declined approximately 14.1% since the beginning of the year, while the S&P 500 has decreased by 8.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.18 on revenues of $21.07 million, and for the current fiscal year, it is $4.30 on revenues of $94.49 million [7] Group 3: Industry Context - The Banks - West industry, to which Plumas Bancorp belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The Zacks Rank for Plumas Bancorp is currently 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6]

Core Viewpoint - Plumas Bancorp reported strong first quarter earnings for 2025, with net income of $7.2 million, reflecting a 14.8% increase from the previous year, driven by growth in net interest income and a significant legal settlement related to past wildfire damages [1][3][34]. Financial Performance - First quarter earnings reached $7.2 million or $1.21 per share, compared to $6.3 million or $1.06 per share in Q1 2024 [1]. - Diluted earnings per share increased to $1.20 from $1.05 year-over-year [1]. - Return on average assets improved to 1.79% from 1.55% in the same quarter last year, while return on average equity slightly decreased to 16.0% from 16.4% [1][5]. Income and Expenses - Net interest income rose by $1.1 million to $18.5 million, up from $17.4 million in Q1 2024 [2][27]. - Non-interest income increased by $1.1 million to $3.2 million, primarily due to a $1.1 million legal settlement related to the Dixie Fire [3][34]. - Non-interest expenses also rose by $1.1 million to $11.5 million, with merger-related costs accounting for $569 thousand of this increase [4][35]. Balance Sheet Highlights - Gross loans increased by $35 million, or 3.5%, to $1.0 billion [9][10]. - Total deposits rose by $73 million, or 5.6%, to $1.4 billion [9][12]. - Total equity increased by $26 million, or 16.2%, to $187.6 million [9][21]. Asset Quality - Nonperforming assets decreased to $3.8 million, down from $6.0 million a year earlier, representing 0.23% of total assets [14]. - Nonperforming loans also declined to $3.7 million, or 0.36% of total loans, compared to $5.6 million and 0.57% respectively in Q1 2024 [14][16]. Merger and Strategic Developments - The company announced a definitive merger agreement with Cornerstone Community Bancorp, expected to create a combined entity with over $2.3 billion in assets [7][8]. - The merger aims to enhance service offerings and expand the company's footprint in Northern California and Western Nevada [7][8]. Market Position and Visibility - Plumas Bancorp was added to Piper Sandler's independent research coverage, enhancing its visibility among investors [8]. - The company has received "Buy" recommendations from multiple firms, including Raymond James and Stephens [8].

Financial Performance - First quarter earnings for Plumas Bancorp were $7.2 million, or $1.21 per share, up from $6.3 million, or $1.06 per share in Q1 2024[1] - Net income for the three months ended March 31, 2025, was $7.2 million, reflecting an increase of $926 thousand or 14.8% from $6.3 million in the same period of 2024[41] - Basic earnings per share increased to $1.21, up 14.2% from $1.06 in Q1 2024[41] - Basic earnings per share for Q1 2025 was $1.21, a decrease of 7.6% from $1.31 in Q4 2024 and an increase of 14.2% from $1.06 in Q1 2024[43] Income and Expenses - Net-interest income increased by $1.1 million to $18.5 million, compared to $17.4 million in Q1 2024[2] - Non-interest income rose by $1.1 million to $3.2 million, primarily due to a legal settlement related to the Dixie Fire[3] - Total non-interest income increased by 50.1% to $3,213 thousand in Q1 2025, compared to $2,140 thousand in Q1 2024[51] - Total non-interest expense increased by $1.1 million from $10.4 million in Q1 2024 to $11.5 million in Q1 2025, representing a 10.3% increase[33][41] - Salaries and employee benefits rose by 9.6% to $5,880 million compared to $5,366 million in the previous year[52] - Professional fees decreased significantly by 47.8% to $229 million from $439 million in the prior year[52] Asset and Loan Growth - Gross loans increased by $35 million, or 3.5%, to $1.0 billion[8] - Loans, net of allowance for credit losses, increased by $34.5 million or 3.6% from $966.1 million in Q1 2024 to $1.00 billion in Q1 2025[39] - Total gross loans reached $1,010,723 million, a growth from $976,212 million in the same period last year[54] - Commercial real estate loans increased to $660,926 million, up from $562,870 million, representing a significant growth[55] - Agricultural loans decreased to $112,018 million, down from $123,239 million, reflecting a decline in this category[54] Deposits and Equity - Total deposits increased by $73 million, or 5.6%, to $1.4 billion at March 31, 2025[12] - Deposits increased by $73.4 million or 5.6% from $1.30 billion in Q1 2024 to $1.37 billion in Q1 2025[39] - Total deposits increased to $1,373,061 million, up from $1,299,688 million, indicating a positive trend in deposit growth[56] - Total shareholders' equity increased by $26 million, or 16.2%, to $188 million[20] - Shareholders' equity increased by $26.1 million or 16.2% from $161.5 million in Q1 2024 to $187.6 million in Q1 2025[39] - Shareholders' equity increased to $187,603 thousand in Q1 2025, up from $161,491 thousand in Q4 2024[43] Credit Quality - The provision for credit losses decreased to $250 thousand from $821 thousand in Q1 2024[15] - Provision for credit losses decreased significantly by $571 thousand or 69.5% from $821 thousand in Q1 2024 to $250 thousand in Q1 2025[41] - Nonperforming loans decreased to $3.7 million, or 0.36% of total loans, down from $5.6 million, or 0.57% in Q1 2024[14] - Nonperforming loans decreased to $3,686 thousand, or 0.36% of total loans, compared to $5,610 thousand and 0.57% in Q1 2024[43] - The allowance for credit losses was $13,319 thousand, representing 1.32% of total loans, slightly down from 1.35% in Q4 2024[43] Mergers and Acquisitions - The company signed a definitive agreement to acquire Cornerstone Community Bancorp, which will create a combined entity with over $2.3 billion in assets[7] - The company incurred $569 million in merger and acquisition expenses, marking a 100% increase as this was not present in the previous year[52] Efficiency and Ratios - Net interest margin increased by 33 basis points to 4.95% from 4.62% in Q1 2024[31] - The net interest margin improved to 4.95% in Q1 2025, compared to 4.90% in Q4 2024[43] - The efficiency ratio for Q1 2025 was 52.7%, up from 50.4% in Q4 2024, indicating a decline in operational efficiency[43] - The Tier 1 Leverage Ratio improved to 12.3% in Q1 2025, compared to 11.0% in Q4 2024[43] Other Financial Metrics - Total assets decreased slightly by $7.0 million or 0.4% from $1.64 billion in Q1 2024 to $1.63 billion in Q1 2025[39] - Total assets were $1,630,198 thousand as of March 31, 2025, slightly up from $1,626,198 thousand as of December 31, 2024[46] - Cash dividends paid per share increased to $0.30 in Q1 2025, up from $0.27 in Q4 2024[43] - Non-interest bearing deposits accounted for 49.3% of total deposits, slightly down from 51.2% in the previous year[56] - Money market deposits grew to $290,125 million, a 35.4% increase from $214,257 million in Q1 2024[56]

Dividend and Capital Management - As of December 31, 2024, the maximum amount available for dividend distribution was approximately $58 million, subject to California Financial Code restrictions[63]. - The Company is subject to restrictions on share repurchases due to limitations on dividends[64]. - The company's ability to pay dividends is contingent on the performance of its subsidiary, the Bank, which may be affected by legal limitations and operational success[116]. - The company may need to raise additional capital in the future to meet regulatory requirements, but market conditions may affect the availability and terms of such capital[101]. Regulatory Compliance and Risk Management - The Bank is required to comply with various consumer protection laws, which may increase compliance costs[74]. - The Company must develop a plan to meet non-capital safety and soundness standards if it fails to comply with regulatory expectations[68]. - The company has implemented systems to ensure compliance with extensive regulations, but noncompliance could result in fines and damage to reputation[125]. - The company faces heightened regulatory scrutiny due to its CRE loan concentrations, which could limit growth and require increased capital or resources for risk management[129]. Loan Portfolio and Credit Risk - The Bank's limit on aggregate secured loans-to-one-borrower was $48 million and unsecured loans-to-one-borrower was $29 million as of December 31, 2024[65]. - As of December 31, 2024, approximately 92% of the loans in the loan portfolio were made to borrowers primarily located in Northern California or Northern Nevada, indicating significant geographic concentration risk[84]. - Approximately 77% of the total loan portfolio is secured by real estate, predominantly commercial real estate, which exposes the company to fluctuations in real estate market values[86]. - The company maintains an allowance for credit losses based on actual losses and management's assessment, but there is a risk that it may not be sufficient to cover future loan losses[85]. - The Bank's credit risk is heightened by potential economic downturns or rapid interest rate increases, affecting borrowers' ability to repay loans[83]. - Approximately 13% of the loans are categorized as agricultural loans, making the company vulnerable to adverse effects from drought or water rationing in California[104]. Economic and Market Conditions - The Company’s profitability is primarily dependent on interest rate spreads, which are sensitive to economic conditions and government policies[81]. - Changes in interest rates can significantly impact net interest income, as the company may not be able to adjust interest income and expenses in tandem[90]. - Inflation has remained elevated through 2024, potentially impacting the ability of business customers to repay loans, which could adversely affect the company's financial condition[87]. - The company faces substantial competition from larger banks and financial institutions, which may reduce profitability and hinder growth in the loan portfolio and deposit base[105]. Strategic Initiatives and Mergers - The proposed merger with Cornerstone Community Bancorp announced in January 2025 represents a strategic growth initiative, but it carries risks associated with integration and valuation[106]. - The company entered into a Merger Agreement with Cornerstone Community Bancorp, which may involve significant non-recurring costs including legal and advisory fees, and the success of the merger will depend on effective integration of operations[120][123]. - Upon completion of the merger, the combined company is expected to have approximately $2.3 billion in assets, $2.0 billion in deposits, and $1.5 billion in loans, operating 19 branches across Northern California and Western Nevada[278]. - Each outstanding share of Cornerstone common stock will be converted into the right to receive 0.6608 shares of Plumas common stock, plus up to $9.75 in cash consideration, subject to adjustments based on Cornerstone's financial metrics[277]. Operational and Technological Risks - The company relies heavily on third-party vendors for data processing, which poses risks related to cybersecurity breaches and operational disruptions[114]. - The company is exposed to operational risks from technological disruptions and reliance on third-party support, which could impact daily operations[110]. - The use of artificial intelligence in products may lead to reputational harm or liability, and the company must navigate potential regulatory challenges associated with AI technologies[112]. - The limited trading volume of the company's common stock on the Nasdaq may lead to exaggerated price fluctuations and difficulties in executing large trades[132]. - The trading price of the company's common stock may be volatile due to various external factors, including market conditions and regulatory changes[131]. Management and Personnel Risks - The company relies heavily on key executives and personnel, with potential material adverse impacts on prospects if any are lost[134]. - The company faces inherent limitations in its disclosure controls and procedures, which may result in undetected misstatements due to error or fraud[133]. Environmental and Social Considerations - Climate change concerns may lead to increased costs and changes in consumer behavior, potentially affecting demand for the company's products and services[135].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Plumas Bancorp (PLBC) as a strong candidate for value investors due to its favorable metrics and Zacks Rank [2][4][6]. Company Summary - Plumas Bancorp (PLBC) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock has a Price-to-Earnings (P/E) ratio of 9.92, which is lower than the industry average P/E of 11.64, suggesting it may be undervalued [4]. - Over the past 12 months, PLBC's Forward P/E has fluctuated between 6.94 and 11.94, with a median of 8.90, further indicating its valuation potential [4]. - PLBC's Price-to-Cash Flow (P/CF) ratio stands at 8.97, significantly lower than the industry average P/CF of 11.81, reinforcing its attractiveness as an undervalued stock [5]. - The P/CF ratio for PLBC has ranged from 6.02 to 9.67 over the past year, with a median of 7.40, highlighting its solid cash outlook [5]. - Overall, the combination of these metrics suggests that PLBC is likely undervalued and presents an impressive value opportunity at the moment [6].

Core Viewpoint - Plumas Bancorp has signed a definitive merger agreement to acquire Cornerstone Community Bancorp in a transaction valued at approximately $64.6 million, enhancing its market presence in Northern California and Western Nevada [1][5]. Company Overview - Plumas Bancorp, headquartered in Reno, Nevada, operates Plumas Bank, a full-service community bank with 15 branches across California and Nevada, offering a wide range of financial services [7]. - Cornerstone Community Bancorp, based in Red Bluff, California, is the parent company of Cornerstone Community Bank, which has approximately $658 million in assets and operates four branches in Northern California [2][9]. Transaction Details - The merger will involve Cornerstone shareholders receiving 0.6608 shares of Plumas common stock and $9.75 in cash for each share of Cornerstone, resulting in a total consideration of $64.6 million [3][5]. - Following the merger, Cornerstone shareholders will own approximately 14% of Plumas' outstanding common stock [4]. Financial Impact - The acquisition is expected to be approximately 9% accretive to Plumas' earnings per share in 2025 and 23% accretive in 2026 [5]. - There will be an anticipated dilution to tangible book value per share of about 13% at the close of the transaction, with a tangible book value earn-back period of less than three years [5]. Leadership and Integration - Matthew B. Moseley, CEO of Cornerstone, will continue with Plumas post-acquisition, indicating a commitment to maintaining service quality and expanding offerings [3]. - The merger is expected to enhance the combined company's ability to serve local communities by leveraging Plumas' technology and product lines alongside Cornerstone's local expertise [3].

Core Viewpoint - Plumas Bancorp (PLBC) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which are crucial for stock price movements [1][3]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Plumas Bancorp is projected at $4.75 per share for the fiscal year ending December 2025, reflecting a year-over-year change of -1% [8]. - Over the past three months, analysts have increased their earnings estimates for Plumas Bancorp by 14.5% [8]. Zacks Rating System - The Zacks rating system is based solely on changes in a company's earnings picture, making it a reliable tool for investors [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions [9][10].

Core Insights - Plumas Bancorp appointed Kevin Foster to its Board of Directors effective January 15, 2025, bringing 40 years of banking and technology experience [1][2] - Foster's expertise includes lending, technology, cybersecurity, data, consulting, and sales, focusing on transformation, efficiency, and compliance [1] - The company aims to enhance banking products and services while delivering significant shareholder value with Foster's insights [2] Company Overview - Plumas Bancorp is headquartered in Reno, Nevada, and is the parent company of Plumas Bank, which is a community bank founded in 1980 [3] - Plumas Bank operates 15 branch offices in Northeastern California and Northern Nevada, with an asset size exceeding $1.6 billion [3] - The bank is recognized as one of the top-performing community banks in the country [3]