Plumas Bancorp Reports Earnings for Three Months and Year Ended December 31, 2025

Core Insights - Plumas Bancorp reported a net income of $10.9 million or $1.58 per share for Q4 2025, an increase from $7.7 million or $1.31 per share in Q4 2024, driven by a rise in net interest income and non-interest income despite higher non-interest expenses and provisions [1][2] - For the full year 2025, net income was $29.6 million or $4.60 per share, a slight increase from $28.6 million or $4.85 per share in 2024, with diluted earnings per share decreasing to $4.54 from $4.80 [2] - The acquisition of Cornerstone Community Bancorp significantly impacted the balance sheet, with total assets increasing by 37.9% to $2.24 billion and gross loans rising by 49% to $1.5 billion [7][8][62] Financial Performance - Q4 2025 net interest income was $25.9 million, up $6.9 million from Q4 2024, primarily due to an increase in interest income [33] - For the year ended December 31, 2025, net interest income reached $87.8 million, an increase of $14.1 million from 2024, with interest income rising by 20.5% [42][63] - The annualized return on average assets was 1.93% for Q4 2025, compared to 1.87% in Q4 2024, while the return on average equity increased to 17.2% from 17.1% [1][2] Balance Sheet Highlights - Total deposits increased by $439 million, or 32%, to $1.8 billion as of December 31, 2025, with significant growth in demand deposits and money market accounts [15][62] - Shareholders' equity rose by $83 million, or 46.8%, to $261 million, driven by earnings and stock issued during the Cornerstone acquisition [27][62] - The company’s total investment securities increased by $39 million to $477 million, with a decrease in unrealized losses on investment securities [17][62] Asset Quality - Nonperforming assets rose to $15.3 million, or 0.68% of total assets, up from $4.3 million or 0.27% in the previous year, primarily due to issues with a single agricultural loan relationship [18][20] - The provision for credit losses for 2025 was $6.8 million, significantly higher than $1.2 million in 2024, reflecting growth in the loan portfolio and the acquisition of Cornerstone [19][63] Strategic Initiatives - The acquisition of Cornerstone Community Bancorp was described as pivotal, enhancing the company's presence in Northern California and optimizing its balance sheet [4][7] - Management plans to focus on margin durability and cost-of-funds improvement while managing credit risk prudently [5][6] Non-Interest Income and Expenses - Non-interest income for Q4 2025 was $2.7 million, an increase of $503 thousand from Q4 2024, driven by a gain on the sale of administrative facilities [49] - Total non-interest expense increased by $3.6 million in Q4 2025, with significant contributions from salary and benefit expenses related to the acquisition [50] - For the year, non-interest income totaled $10.5 million, up $1.7 million, while non-interest expenses rose by $9.6 million to $51.9 million [51][52]