Plumas Bancorp

What they do

Plumas Bancorp conducts substantially all operations through Plumas Bank, a California state-chartered bank founded in 1980 and headquartered in Quincy, California. The bank takes deposits and makes real estate-related, commercial, automobile and consumer loans across Northeastern California and Northwestern Nevada, and also runs a government-guaranteed lending office in Auburn, California. As of December 31, 2025, the Company reported $2.2 billion in consolidated assets, $1.8 billion in deposits and $261 million in shareholders' equity.

Revenue drivers

• Net interest income from loans — Primary revenue source: interest on real estate-related, commercial, automobile and consumer loans, funded largely by locally generated deposits. Net interest income was $26.0 million in Q2 2026 versus $18.2 million a year earlier.
• Investment securities and cash balances — Secondary interest income source. The Company sold $47 million of securities at a 2.43% weighted average tax-equivalent yield in 2025 and reinvested $42 million at 4.88%.
• Service fees on deposit and loan customers — Non-interest income from servicing deposit and loan relationships. Non-interest income was $2.8 million in Q2 2026 and $5.7 million for the first half of 2026.

Recent performance

Q2 2026 net income was a record $9.9 million, or $1.43 per share, up from $6.3 million or $1.07 per share in Q2 2025. Diluted EPS rose to $1.41 from $1.05. Net interest income increased $7.8 million to $26.0 million, while the provision for credit losses fell to $600 thousand from $860 thousand. Non-interest expense rose $3.5 million to $14.5 million, and return on average assets was 1.79% versus 1.56% a year earlier. For the six months ended June 30, 2026, net income was $19.7 million, or $2.83 per share.

Strategy

The strategy centers on community-oriented, personalized banking in its Northern California and Northern Nevada footprint, relying on local ownership and locally generated deposits to fund lending. The July 1, 2025 acquisition of Cornerstone Community Bancorp added four branches in Anderson, Red Bluff and Redding, plus $658 million of assets, $478 million of gross loans, $580 million of deposits, $18.7 million of goodwill and an $11.6 million core deposit intangible. The Company has funded growth partly through sale/leaseback transactions: a 2024 sale of nine branch properties for about $25.7 million with a $19.9 million gain, and a 2025 sale of two Quincy administrative buildings for $5.5 million with a $5.5 million gain, offset by securities losses. Management is also completing integration of Cornerstone and, in Q2 2026, extended its CECL reasonable-and-supportable forecast period from four to eight quarters.

Risks

• Geographic concentration — About 92% of loans as of December 31, 2025 were to borrowers who primarily live or do business in Northern California or Northern Nevada, so a regional downturn could raise nonperforming assets and foreclosure losses.
• Credit risk in the loan portfolio — The majority of assets are loans, and borrower defaults could reduce interest income and require additional provisions for credit losses.
• Interest rate and margin pressure — The Company states that changes in the interest rate environment resulting in reduced margins are a risk, and its 2025 securities restructuring produced a $5.4 million loss on sales.
• Acquisition integration risk — The Cornerstone acquisition added $658 million of assets, $580 million of deposits and four branches on July 1, 2025, requiring integration of operations and personnel; the Company recorded $18.7 million of goodwill tied to the deal.

Outlook

Management described Q2 2026 as another strong quarter, citing deposit growth, net interest income and the expanded franchise from the Cornerstone acquisition. CEO Andrew J. Ryback said asset quality remains a key area of focus. The Company extended its CECL forecast period to eight quarters in Q2 2026, which it says reflects its current assessment of portfolio dynamics and forecast reliability. No specific numeric guidance was provided in the excerpts.