PLUMAS BANCORP TO ACQUIRE CORNERSTONE COMMUNITY BANCORP

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].