Plumas Bancorp Reports First Quarter Results

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].