Plumas Bancorp(US:PLBC)2025-11-05 16:31Acquisition and Merger - Plumas Bancorp completed the acquisition of Cornerstone Community Bancorp on July 1, 2025, with total assets acquired valued at $658 million, including gross loans of $478 million and deposits of $580 million[144]. - The total aggregate consideration delivered to Cornerstone shareholders in the merger included 1,003,718 shares of common stock and $14.8 million in cash[145]. - Non-interest expense rose by $6.0 million to $37.6 million for the nine months ended September 30, 2025, with $1.9 million attributed to merger-related costs[158]. - Non-interest expense increased by $4.3 million to $15.1 million, with $879 thousand related to the acquisition of Cornerstone Community Bancorp[182]. Financial Performance - The company recorded a net income of $18.6 million for the nine months ended September 30, 2025, down from $20.9 million for the same period in 2024, with a return on average assets of 0.90%[155]. - The company’s diluted earnings per share for the nine months ended September 30, 2025, was $3.74, compared to $2.94 for the same period in 2024[154]. - Net income for the three months ended September 30, 2025, was $5.1 million, a decrease of 34.6% from $7.8 million in the same period of 2024[179]. - Net interest income increased from $54.7 million to $61.9 million for the nine months ended September 30, 2025, driven by growth in the loan portfolio[156]. - Net interest income increased by $6.3 million to $25.2 million compared to $18.9 million in the third quarter of 2024[180]. Income and Expenses - Non-interest income increased by $1.2 million to $7.8 million for the nine months ended September 30, 2025, primarily due to a legal settlement of $1.1 million related to the Dixie Fire[157]. - Total non-interest income for the three months ended September 30, 2025, was $2,248,000, a slight increase of $11,000 or 0.5% from $2,237,000 in 2024[200]. - Total non-interest expense rose by $6.0 million to $37.6 million, with significant increases in salary and benefit expenses ($2.7 million) and merger-related expenses ($1.9 million)[176]. - Total non-interest expense rose by $4.3 million, or 39.8%, from $10.8 million in 2024 to $15.1 million in 2025[202]. Loan and Credit Quality - The provision for credit losses increased from $1.4 million to $6.5 million during the nine-month period ended September 30, 2025[156]. - Provision for credit losses was recorded at $6.5 million, compared to $1.3 million in the same period of 2024, reflecting growth in the loan portfolio[173]. - Nonperforming loans increased to $15.0 million at September 30, 2025, up from $4.1 million at December 31, 2024, reflecting a rise of 266%[223]. - The allowance for credit losses totaled $19.6 million as of September 30, 2025, compared to $13.6 million at the same date in 2024, representing an increase of 44%[225]. Deposits and Assets - Deposits increased to $1.8 billion as of September 30, 2025, an increase of $448 million from December 31, 2024[232]. - Total assets increased by $606 million, from $1.6 billion on December 31, 2024, to $2.2 billion on September 30, 2025[204]. - The investment portfolio totaled $484.7 million as of September 30, 2025, up from $437.7 million at December 31, 2024[226]. - Non-interest bearing deposits accounted for 47.4% of total deposits at September 30, 2025, down from 51.0% at December 31, 2024[234]. Capital and Ratios - Shareholders' equity increased by $68 million from $178 million at December 31, 2024, to $246 million at September 30, 2025[242]. - Common Equity Tier 1 Ratio was 14.3% as of September 30, 2025, exceeding the minimum requirement of 4.5%[249]. - Total Risk-Based Capital Ratio was 15.5% at September 30, 2025, well above the minimum requirement of 8.0%[249]. Liquidity and Funding - The Company has no outstanding borrowings from the Federal Home Loan Bank or the Federal Reserve Bank Discount Window as of September 30, 2025[236]. - The company can borrow up to $272 million from the Federal Home Loan Bank, secured by commercial and residential mortgage loans with carrying values totaling $462 million[254]. - The company's liquidity sources include securities portfolio, Discount Window advances, FHLB advances, and cash, providing adequate funding for loans during high demand periods[256]. - The company experiences some seasonality in deposit growth, with slower growth from November to April and higher growth from May to October[255].