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]

Group 1 - Plumas Bancorp (PLBC) reported quarterly earnings of $1.29 per share, exceeding the Zacks Consensus Estimate of $1.15 per share, and showing a slight increase from $1.27 per share a year ago, resulting in an earnings surprise of 12.17% [1] - The company achieved revenues of $21.16 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.22%, compared to $20.01 million in the same quarter last year [2] - Over the last four quarters, Plumas Bancorp has surpassed consensus EPS estimates three times and has also topped consensus revenue estimates three times [2] Group 2 - The stock has underperformed the market, losing about 5.4% since the beginning of the year, while the S&P 500 has declined by only 0.7% [3] - The current consensus EPS estimate for the upcoming quarter is $1.01 on revenues of $19.8 million, and for the current fiscal year, it is $4.45 on revenues of $80.8 million [7] - The Zacks Industry Rank for Banks - West is currently in the bottom 43% of over 250 Zacks industries, indicating potential challenges for stock performance [8] Group 3 - The estimate revisions trend for Plumas Bancorp is mixed, leading to a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Plumas Bancorp reported Q4 2024 net income of $7.7 million, or $1.31 per share, up from $7.5 million, or $1.28 per share in Q4 2023[1]. - For the year ended December 31, 2024, net income was $28.6 million, or $4.85 per share, a decrease from $29.8 million, or $5.08 per share in 2023[2]. - The company's net income for the year ended December 31, 2024, was $28.6 million, a decrease of $1.2 million, or 3.9%, from $29.8 million in 2023[49]. - Net income for the three months ended December 31, 2024, was $7,749 thousand, up $228 thousand or 3.0% from $7,521 thousand in 2023[51]. - Basic earnings per share increased to $1.31, a rise of $0.03 or 2.3% from $1.28 in the prior year[53]. Loan and Deposit Growth - Gross loans increased by $57 million, or 6%, to $1 billion, with significant growth in commercial real estate loans[4]. - Total deposits rose by $37 million, or 3%, to $1.4 billion, with 51% of deposits being non-interest-bearing[8]. - The average balance of loans increased by $55 million, or 5.9%, from $934 million in 2023 to $989 million in 2024[32]. - Total deposits increased to $1,371,101 million in 2024 from $1,333,655 million in 2023, marking a growth of approximately 2.8%[71]. - Money market deposits rose to $267,582 million in 2024, up from $214,185 million in 2023, reflecting a growth of approximately 25%[71]. Interest Income and Expenses - Net interest income for Q4 2024 was $19.0 million, an increase of $1.3 million from Q4 2023, driven by higher interest income[24]. - Interest income for the year ended December 31, 2024, increased by $9.7 million, or 13.0%, to $84.3 million from $74.6 million in 2023[49]. - Interest expense surged by $5.8 million, or 121.6%, from $4.8 million in 2023 to $10.6 million in 2024, primarily due to increased rates on interest-bearing liabilities[49]. - The average rate paid on interest-bearing deposits increased from 0.55% in 2023 to 0.92% in 2024[35]. - The average yield on loans increased to 6.21% in 2024 from 5.89% in 2023[59]. Asset Management - Total assets as of December 31, 2024, increased by $12.9 million, or 0.8%, to $1.623 billion from $1.610 billion in 2023[47]. - The company's total assets grew to $1,649,341 thousand in 2024, compared to $1,587,149 thousand in 2023, an increase of 3.9%[59]. - Total interest-earning assets increased to $1,537,032 thousand in 2024 from $1,482,837 thousand in 2023, representing a growth of 3.7%[59]. Non-Interest Income and Expenses - Non-interest income decreased by $1.9 million, or 18.1%, to $8.8 million in 2024 from $10.7 million in 2023[39]. - Total non-interest expense increased by $4.7 million, or 12.6%, to $42.3 million in 2024 compared to $37.5 million in 2023[40]. - Total non-interest income decreased to $8,780 thousand in 2024, down from $10,722 thousand in 2023, a decline of 18.1%[67]. - Total non-interest expense increased to $42,274 thousand in 2024, compared to $37,530 thousand in 2023, marking a rise of 12.6%[68]. Asset Quality - Nonperforming assets decreased to $4.3 million, or 0.27% of total assets, down from $5.3 million, or 0.33% in 2023[11]. - The allowance for credit losses as a percentage of total loans was 1.30% as of December 31, 2024, slightly down from 1.34% in 2023[53]. Shareholder Equity - Shareholders' equity increased by $31 million, or 21%, to $178 million, driven by net income and a decline in accumulated other comprehensive loss[4]. - Cash dividends paid per share increased to $1.08 for the year ended December 31, 2024, compared to $1.00 in 2023[53]. Future Outlook - The company anticipates improved loan demand and deposit stabilization due to projected Federal Reserve rate cuts[5].

Core Insights - Plumas Bancorp reported a net income of $28.6 million or $4.85 per share for the year ended December 31, 2024, a decrease from $29.8 million or $5.08 per share in 2023 [2] - The company experienced an increase in net interest income by $3.9 million for the year, but non-interest income decreased by $1.9 million [28][36] - The annualized return on average assets decreased to 1.74% in 2024 from 1.88% in 2023, while the return on average equity fell from 23.4% to 17.2% [2][50] Financial Performance - For Q4 2024, net income was $7.7 million or $1.31 per share, up from $7.5 million or $1.28 per share in Q4 2023 [1] - The annualized return on average assets was 1.87% for Q4 2024, unchanged from Q4 2023, while the return on average equity decreased to 17.1% from 23.9% [1][50] - Net interest income for Q4 2024 was $19.0 million, an increase of $1.3 million from the same period in 2023 [23] Balance Sheet Highlights - Gross loans increased by approximately $57 million, or 6%, from $959 million at December 31, 2023, to $1.0 billion at December 31, 2024 [5][6] - Total deposits increased by $37 million, or 3%, to $1.4 billion at December 31, 2024 [6][8] - Shareholders' equity rose by $31 million, or 21%, to $178 million at December 31, 2024 [6][18] Asset Quality - Nonperforming assets decreased to $4.3 million at December 31, 2024, from $5.3 million at December 31, 2023 [10] - Nonperforming loans as a percentage of total loans decreased to 0.40% from 0.50% year-over-year [10][51] - The allowance for credit losses totaled $13.2 million at December 31, 2024, compared to $12.9 million at the end of 2023 [12][50] Non-Interest Income and Expense - Non-interest income for the year ended December 31, 2024, totaled $8.8 million, a decrease of $1.9 million from 2023 [36] - Total non-interest expense increased by $4.7 million to $42.3 million for the year, with significant increases in salary and benefit expenses and occupancy costs [37] - For Q4 2024, non-interest expense rose by $890 thousand to $10.7 million, driven by higher salary and benefit expenses and increased occupancy costs [35] Management Commentary - The CEO highlighted strong performance and loan growth, particularly in SBA loan production, and noted the bank's recognition with awards and its listing on the Russell 2000 index [4] - The bank anticipates improved loan demand and deposit stabilization due to projected Federal Reserve rate cuts [4]