Breaking Down Plumas Bancorp (PLBC) Financial Health: Key Insights for Investors

You are defintely looking at Plumas Bancorp's (PLBC) recent Q3 2025 earnings and seeing a confusing picture, so let's cut through the noise right away: the company is successfully scaling its balance sheet, but the integration costs are masking underlying performance. The headline GAAP net income of just $5.1 million for the quarter, down from last year, looks weak, but that figure is heavily impacted by a massive $5.8 million increase in the provision for credit losses and other one-time expenses related to the July 1, 2025, Cornerstone Community Bank acquisition. Here's the quick math: that deal pushed total assets to $2.23 billion as of September 30, 2025, a huge jump from year-end 2024, and Wall Street analysts are clearly looking past the temporary dip, maintaining a consensus Buy rating with an average price target of $57.00. Still, that $5.8 million credit provision is a near-term risk you need to map against the $1.48 billion in gross loans, because that's the real story of financial health right now.

Revenue Analysis

Plumas Bancorp (PLBC) is fundamentally a relationship-driven community bank, so its revenue is overwhelmingly dominated by Net Interest Income (NII)-the profit from lending money versus the cost of deposits. For the first nine months of 2025, your total revenue reached approximately $69.7 million, showing a clear growth trend driven by a major acquisition.

The core takeaway is that the bank's primary revenue stream, NII, is robustly growing, up $7.2 million year-over-year for the nine months ended September 30, 2025, which represents a 13.2% increase from the same period in 2024. Your investment thesis should defintely be anchored in the bank's ability to continue expanding its loan portfolio and managing its cost of funds.

Breakdown of Primary Revenue Sources (NII vs. Non-Interest)

Plumas Bancorp's revenue streams are straightforward, falling into two main categories. The vast majority of revenue comes from interest and fees on loans-this is your classic banking model. Non-interest income, while smaller, provides necessary diversification and includes fees from services like treasury management, plus other non-lending-related gains.

Here's the quick math on the contribution for the nine months ended September 30, 2025, which totaled $69.7 million:

• Net Interest Income (NII): $61.9 million, contributing about 88.8% of total revenue.
• Non-Interest Income: $7.8 million, contributing about 11.2% of total revenue.

In the most recent quarter, Q3 2025, the total quarterly revenue was $27.42 million, with NII standing at $25.17 million. This means NII alone accounted for approximately 91.7% of the quarter's revenue. That's a highly concentrated revenue profile, typical for a community bank, but it also means interest rate movements are a massive factor.

Year-over-Year Revenue Growth and Segment Contribution

The year-over-year revenue picture is one of strong expansion. The trailing twelve months (TTM) revenue as of Q3 2025 was $89.87 million, reflecting a year-over-year growth rate of 12.51%. This growth is almost entirely attributable to the increase in your primary segment: Net Interest Income.

The NII segment saw an increase of $7.2 million for the first nine months of 2025 compared to the same period in 2024. This NII growth was powered by an increase in average loan balances, which grew by $189 million to an average of $1.2 billion during the nine-month period.

Analysis of Significant Revenue Changes

The biggest change in Plumas Bancorp's revenue profile is the direct result of the July 1, 2025, acquisition of Cornerstone Community Bancorp. This strategic move immediately expanded the balance sheet, adding $658 million in assets, including $478 million in gross loans and $580 million in deposits. The resulting increase in interest and fees on loans is the main driver behind the $6.3 million NII increase in Q3 2025.

Also, the non-interest income segment for the nine months of 2025 was boosted by a one-time, non-recurring legal settlement of $1.1 million related to the Dixie Fire. When modeling future revenue, you must strip out this one-off gain to get a clean view of sustainable, recurring non-interest income. For more on the bank's long-term strategy, you can review its Mission Statement, Vision, & Core Values of Plumas Bancorp (PLBC).

Profitability Metrics

You're looking at Plumas Bancorp (PLBC) because the valuation looks cheap, but you need to know if the underlying profit engine is still humming. The direct takeaway is this: while the recent Cornerstone acquisition has temporarily compressed the reported net profit margin, the bank's core profitability ratios still outpace the US Banks industry average, suggesting strong operational health.

Here's the quick math on the trailing twelve months (TTM) data, which gives us the best full-year view leading up to November 2025. Plumas Bancorp's TTM Net Profit Margin sits at 34.62%, which is defintely ahead of the industry average of 32.99%. That's a clear signal of superior earnings power per dollar of revenue.

• Gross Margin (TTM): 100.00% (Standard for a bank, as Net Interest Income is the primary revenue line).
• Operating Margin (TTM): 48.92% (vs. industry 42.87%).
• Net Profit Margin (TTM): 34.62% (vs. industry 32.99%).

The company is simply more profitable than its peers. This is a good sign.

Profitability Trends and Acquisition Impact

Still, you can't ignore the near-term volatility. The reported profit margins have slipped recently, dipping to 31.2% from 35.5% in the prior year as of October 2025. This margin compression is largely due to the July 1, 2025, acquisition of Cornerstone Community Bancorp.

The third quarter (Q3) of 2025 results show this impact starkly. GAAP net income dropped to $5.1 million (or $0.73 diluted EPS) from $7.8 million in Q3 2024. This decline was driven by two key factors: a $5.37 million increase in the provision for credit losses and a $4.3 million rise in non-interest expenses, both consistent with integration costs and the larger balance sheet.

But here's the caveat: excluding those non-recurring acquisition expenses, the non-GAAP net income for Q3 2025 would have been a much stronger $9.5 million. What this estimate hides is the true cost of integration, but it shows the underlying business is robust.

Operational Efficiency and Cost Management

For a bank, operational efficiency is about managing the cost of funds and non-interest expenses. Plumas Bancorp shows a mixed but promising picture here. The Net Interest Margin (NIM)-the difference between interest income and interest paid-for the nine months ended September 30, 2025, actually increased to 4.87%, up 11 basis points from 4.76% in the same period in 2024. This is a strong sign of effective asset-liability management, even in a challenging rate environment.

The acquisition itself is a cost-management play. Management expects the merger to yield 25% cost savings over time, which will help margins recover post-integration. The full-year 2025 sales estimate stands at $99.29 million, with analysts projecting a full-year unadjusted EPS of $2.98. The market is currently trading Plumas Bancorp's shares at a price-to-earnings (P/E) ratio of 11.3x, which is just under the US Banks industry average of 11.7x. The valuation discount suggests investors are waiting for the margins to normalize after the acquisition. You can read more about the bank's strategy in Breaking Down Plumas Bancorp (PLBC) Financial Health: Key Insights for Investors.

Here is a snapshot of key profitability metrics:

The key action item for you is to track the Q4 2025 earnings report. Look for a clear reduction in non-recurring expenses and an update on the expected 25% cost savings from the merger. If the adjusted margins start to climb back toward the 35% range, the valuation discount will likely narrow.

Debt vs. Equity Structure

Plumas Bancorp (PLBC) maintains an exceptionally conservative capital structure, relying overwhelmingly on equity financing rather than debt. As of the third quarter of 2025, the company's debt-to-equity ratio sits at approximately 0.06, which is dramatically lower than the regional bank industry standard of about 0.5753. This means for every dollar of shareholder equity, Plumas Bancorp uses only about six cents of debt, signaling significant balance sheet strength.

You need to know where the capital is coming from, and for Plumas Bancorp, it's not from heavy borrowing. The company's total outstanding borrowings were reduced significantly, standing at just $15 million as of September 30, 2025. This debt is a long-term loan, maturing in January 2035, which provides stable, non-volatile funding. Here's the quick math: with total shareholders' equity at $246 million post-acquisition, the leverage is minimal.

The balance sheet is clean. Short-term debt is practically non-existent right now. While Plumas Bancorp does maintain unsecured short-term borrowing agreements with correspondent banks totaling $70 million (a $50 million line and a $20 million line), there were no outstanding borrowings on these lines, or on the Federal Home Loan Bank (FHLB) or Federal Reserve Bank (FRB) Discount Window, as of September 30, 2025. This shows a strong preference for liquidity and a low reliance on wholesale funding for daily operations.

The recent Cornerstone Community Bancorp (CCB) acquisition, completed on July 1, 2025, fundamentally reshaped the balance between debt and equity. The deal boosted total shareholders' equity by 35% to $246 million, largely due to the equity infusion from the merger. This move, combined with a prior reduction in borrowings, pushed the debt-to-equity ratio down from 0.2821 at June 30, 2025, to the current low level. It's a clear strategy: use equity and deposits to fuel growth, not high-cost debt.

This conservative debt posture is defintely a risk mitigator, especially in a fluctuating interest rate environment. The bank's capital ratios also reflect this strength, with a Tier 1 Leverage Ratio of 10.6% and a Common Equity Tier 1 Ratio of 14.3% at September 30, 2025, both well above regulatory minimums. This capital cushion provides flexibility for future strategic moves, whether it's organic growth or another acquisition. Understanding this foundation is key to grasping Mission Statement, Vision, & Core Values of Plumas Bancorp (PLBC).

• Total outstanding debt is only $15 million.
• Debt-to-equity ratio is approximately 0.06.
• Industry average D/E for regional banks is around 0.5753.
• No outstanding short-term borrowings at Q3 2025.

Finance: Track any new borrowing activity against the $70 million short-term lines monthly.

Liquidity and Solvency

You need to know if Plumas Bancorp (PLBC) can meet its short-term obligations, and the quick answer is yes, but you have to look past the standard corporate ratios. For a bank, liquidity is less about a 1:1 Current Ratio and more about the quality of its liquid assets and stable funding sources.

As of September 30, 2025, PLBC's balance sheet shows a significant expansion, largely due to the Cornerstone Community Bancorp acquisition. Total assets hit $2.23 billion, up from $1.62 billion at year-end 2024. This growth means more assets, but also more liabilities, which is typical for a bank focused on expansion.

Assessing Plumas Bancorp (PLBC)'s Liquidity

The traditional Current and Quick Ratios (liquidity positions) don't translate directly to a bank, where the primary liability is customer deposits, which are technically payable on demand. A low ratio is normal here. To get a real sense of their position, we look at highly liquid assets against their core funding base (deposits).

Here's the quick math using the most liquid assets as a proxy for current assets (Cash & Equivalents plus Total Investments) against the largest liability (Total Deposits) as of Q3 2025:

• Liquid Assets (Proxy for Current Assets): $87.28 million (Cash) + $484.69 million (Investments) = $571.97 million.
• Total Deposits (Proxy for Current Liabilities): $1.82 billion.
• Current/Quick Ratio (Proxy): $571.97M / $1,820M $\approx$ 0.31:1.

This 0.31:1 ratio is defintely low compared to a manufacturing company, but it's a healthy signal for a bank with strong deposit growth and diverse funding options. The true measure of their liquidity is the stability of those deposits and access to other funding. Total deposits grew by 5% to $1.4 billion by June 30, 2025, and then expanded further to $1.82 billion by September 30, 2025, showing strong customer funding.

Working Capital and Funding Trends

Working capital-or the management of liquid assets against short-term funding-is sound. PLBC is actively managing its funding mix to reduce costs. They sold off an acquired investment portfolio to pay down higher-costing liabilities, specifically paying off $38.5 million in brokered CDs and a $15 million Federal Home Loan Bank (FHLB) borrowing in Q3 2025. This smart move lowers their overall cost of funds and strengthens their balance sheet. Borrowings had already decreased significantly to just $15 million by June 30, 2025.

Cash Flow Statements Overview

The 2025 cash flow trends show a company in an active growth and integration phase, which dramatically impacts the Investing and Financing sections.

The biggest takeaway is that while the acquisition caused large movements in investing and financing, the core operating cash flow remains robust, supported by a healthy Net Interest Margin (NIM) of 4.95% in Q1 2025.

Potential Liquidity Concerns or Strengths

The primary strength is the stability of their funding base. Customer deposits are the lifeblood, and their growth to $1.82 billion is a clear vote of confidence. Plus, the bank has significant off-balance sheet liquidity via borrowing capacity: up to $115 million at the Discount Window and an additional $70 million in unsecured short-term agreements with correspondent banks as of March 31, 2025.

A minor concern is the increase in nonperforming assets, primarily due to an agricultural loan issue mentioned in Q2 2025. However, nonperforming assets as a percentage of total assets actually decreased to 0.23% at March 31, 2025, down from 0.37% a year prior, which is a positive trend. The company is well-capitalized to handle any minor credit issues. For a deeper dive into the acquisition's impact, see Breaking Down Plumas Bancorp (PLBC) Financial Health: Key Insights for Investors.

Next Step: Portfolio Managers should model the impact of the Q3 2025 interest expense savings (from paying off high-cost debt) on Q4 2025 Net Interest Income by the end of the month.

Valuation Analysis

You're looking at Plumas Bancorp (PLBC) and trying to figure out if the stock price of around $41.53 as of November 2025 is a bargain or a trap. My analysis suggests the stock is currently undervalued, based on key metrics and a strong analyst consensus, which points to a significant upside.

The core of the argument for undervaluation rests on its price multiples, especially when compared to the broader financial sector. The market is defintely giving Plumas Bancorp a lower multiple than its growth prospects might suggest.

Here's the quick math on the valuation ratios:

• Price-to-Earnings (P/E) Ratio: The trailing twelve-month (TTM) P/E ratio is approximately 9.72. This is notably lower than the average for the regional bank sector, indicating the stock is cheap relative to its earnings.
• Price-to-Book (P/B) Ratio: As of November 2025, the P/B ratio stands at 1.49. This means you are paying $1.49 for every dollar of the bank's net assets, which is a manageable premium for a bank with a solid return on equity.
• Enterprise Value-to-EBITDA (EV/EBITDA): For a bank holding company like Plumas Bancorp, this metric is less relevant and often not explicitly reported, as a bank's value is primarily driven by its assets and book value, not just operating cash flow before non-cash charges. We focus on P/E and P/B instead.

The stock has had a rough 12 months, which is why the valuation looks so compelling now. Over the last year, the stock price has decreased by 8.16%, trading in a 52-week range between a low of $38.71 and a high of $51.33. This dip creates an opportunity if you believe the fundamentals remain sound.

Dividend and Analyst Outlook

For income-focused investors, Plumas Bancorp offers a respectable dividend profile. The current dividend yield is 2.83%, which is a solid return in the current environment. More importantly, the dividend payout ratio is a very healthy 28.10% of earnings. This low payout ratio signals that the dividend is sustainable and leaves ample room for future increases or for the company to reinvest capital for growth.

Wall Street analysts are overwhelmingly bullish, giving the stock a consensus rating of 'Buy'. The average 12-month price target is set at $57.00, with estimates ranging from a low of $50.00 to a high of $61.00. This average target represents a potential upside of over 37% from the current price, which is a strong signal of undervaluation.

For the full 2025 fiscal year, the consensus forecast for Earnings Per Share (EPS) is $4.31. This expected earnings power is what makes the low P/E ratio so attractive. You are buying a growing earnings stream at a discount.

To dive deeper into the full financial picture, including the strategic frameworks and risk analysis, you can read the full post: Breaking Down Plumas Bancorp (PLBC) Financial Health: Key Insights for Investors

Risk Factors

You're looking at Plumas Bancorp (PLBC) and seeing an aggressive growth strategy, but you need to map the risks that are tempering their 2025 earnings. The direct takeaway is this: the strategic risk from the Cornerstone acquisition is now translating into immediate financial and credit quality risks, which you can see clearly in the third-quarter numbers.

The company is defintely growing-total assets hit $2.23 billion in Q3 2025-but that growth comes with a cost. The key risks aren't just theoretical; they are showing up in the financial statements right now, primarily through higher provisioning and integration expenses.

Internal and Operational Risks: The Integration Headwind

The biggest near-term risk is the integration of Cornerstone Community Bancorp, which closed on July 1, 2025. This strategic move is causing a drag on profitability. Here's the quick math: Q3 2025 net income was only $5.1 million, down from $7.83 million a year ago. The two main culprits are operational and credit-related:

• Integration Costs: Non-interest expenses climbed to $15.13 million in Q3 2025, a significant jump from $10.82 million in the prior year, reflecting the costs of merging operations.
• Credit Quality Deterioration: Nonperforming loans have risen sharply to $15.0 million, which represents 1.0% of total loans. That's more than double the 0.44% reported a year earlier.
• Margin Pressure: Profit margins have slipped to 31.2% from 35.5% last year, indicating a notable slip in efficiency as the bank scales up.

The provision for credit losses is the clearest financial signal of this risk, jumping to $5.37 million in Q3 2025 compared to a $0.40 million recovery in the same period last year. That's a massive swing you need to watch. The bank's reputation for conservative management is now being tested by this enlarged, post-acquisition loan portfolio.

External and Market Risks: The Macro Environment

Like any regional bank, Plumas Bancorp (PLBC) is exposed to broad macroeconomic forces, plus a few industry-specific ones. The environment of high interest rates and inflation is a persistent threat. The bank's filings highlight several external factors you can't ignore:

• Interest Rate Policy: Changes in the Federal Reserve's interest rate policies directly impact their net interest margin and the valuation of their investment securities.
• Regulatory Overhaul: The financial services industry is constantly facing new laws and regulations. Regulatory restrictions can affect their ability to successfully market and price products to consumers, plus they have to keep up with evolving frameworks like the Basel Committee's ICAAP (Internal Capital Adequacy Assessment Process).
• Technology and Cyber Threats: The banking sector faces top-tier operational risks from cybersecurity and the rapid development and use of emerging technologies, including artificial intelligence and machine learning.
• Catastrophic Events: Given their regional focus, extreme weather and natural disasters-like wildfires common in the Western US-are a direct risk to their customers and the local economic environment.

Mitigation and Capital Strength

The good news is that Plumas Bancorp (PLBC) is not entering this risky period from a position of weakness. Their mitigation strategy centers on capital strength and disciplined lending. They have a strong capital cushion, with a Tier 1 Leverage Ratio of 12.3% and a Common Equity Tier 1 Ratio of 17.8% as of March 31, 2025. That's well above regulatory minimums. They also maintain strong liquidity, with cash, unpledged investments, and borrowing lines totaling approximately $583 million, which is more than sufficient to cover uninsured, uncollateralized deposits.

The focus is on 'disciplined governance and client success,' which is their long-term defense against credit risk. They are also investing in an enhanced lending platform to improve efficiency and rapid decisioning, which is a smart move to manage the expanded loan book. For a deeper dive into the valuation and strategy, you should read the full post: Breaking Down Plumas Bancorp (PLBC) Financial Health: Key Insights for Investors.

Growth Opportunities

Plumas Bancorp (PLBC) is defintely poised for a significant step-change in size and earnings, driven primarily by its recent acquisition and above-market growth forecasts. The core takeaway is that the strategic move to acquire Cornerstone Community Bancorp is set to materially boost the balance sheet and operational efficiency, even with some expected margin pressure in the near term.

Analyst forecasts for the full 2025 fiscal year project the company's revenue to reach approximately $99.29 million, supported by an estimated annual revenue growth rate of 14.2%, which comfortably tops the US market outlook of 10%. Simply put, the bank is growing faster than its peers.

Strategic Growth Drivers: The Cornerstone Acquisition

The biggest catalyst for Plumas Bancorp in 2025 is the successful acquisition of Cornerstone Community Bancorp, which closed in early July. This move was a deliberate play to inject life into the loan book and expand its Northern California footprint, instantly boosting the bank's scale and total assets to an impressive $2.3 billion.

Here's the quick math on the acquisition's immediate impact:

• Loan Portfolio: Increased by almost 50%.
• Total Deposits: Rose by 39%.
• Cost Savings: Expected to generate 25% in cost synergies.

What this estimate hides is the expected short-term impact on the Net Interest Margin (NIM). Cornerstone had a lower margin, so Plumas Bancorp's NIM is expected to fall by around 50 basis points in the third quarter of 2025, before potentially rising slightly in Q4 if the Federal Reserve cuts rates as anticipated. Still, the long-term stability and scale outweigh this initial compression.

2025 Earnings Projections and Estimates

The market is pricing in robust earnings growth, projecting annual EPS gains of 19.7%, significantly above the national average of 15.5%. The non-GAAP figures for the third quarter of 2025 already showed a strong operational beat with a non-GAAP Earnings Per Share (EPS) of $1.35, surpassing the analyst consensus estimate of $0.56.

For the full year, here are the key analyst estimates you should be tracking:

Competitive Edge and Product Focus

Plumas Bancorp's enduring competitive advantage isn't a flashy product innovation; it's their community-focused banking model, which fosters deep client loyalty and portfolio stability. They operate in Northern California and Nevada, focusing on personalized solutions for individuals, small businesses, and agricultural clients.

This strategy translates into tangible financial benefits, like a 5.6% rise in total deposits to $1.4 billion in Q1 2025, which shows strong customer retention even as the industry faces headwinds. Plus, the bank is known for conservative management and disciplined lending, which is a major comfort when regional peers are struggling with credit quality. Their commitment to client advocacy and workforce development, including educational support programs, also helps them maintain a high-quality, stable team, which is critical for a service-based business like banking. For a deeper dive into the bank's core financial health metrics, you can read the full post: Breaking Down Plumas Bancorp (PLBC) Financial Health: Key Insights for Investors.