Plumas Bancorp Reports $7.18 Million Net Income, 14.8% Increase in Q1 2025

Plumas Bancorp reported a net income of $7.18 million for the first quarter of 2025, reflecting a 14.8% increase from $6.25 million in the same period of 2024. This growth was driven by a $1.1 million rise in net interest income, which reached $18.54 million, and a $1.1 million increase in non-interest income, totaling $3.21 million. The provision for credit losses decreased significantly to $250,000 from $821,000 a year earlier, contributing to the overall improvement in profitability. The annualized return on average assets rose to 1.79%, while the return on average equity slightly decreased to 16.0%.

In terms of operational changes, Plumas Bancorp's total assets increased to $1.63 billion as of March 31, 2025, up from $1.62 billion at the end of 2024. The growth in assets was primarily attributed to a $9.6 million increase in investment securities and a $5.3 million rise in cash equivalents, although net loans decreased by $4.7 million to $1.01 billion. The bank's total deposits also saw a modest increase of $2 million, totaling $1.37 billion, with notable growth in money market and savings accounts.

Strategically, Plumas Bancorp is in the process of acquiring Cornerstone Community Bancorp, with associated costs of $569,000 recorded in the current quarter. This acquisition is expected to enhance the bank's market presence and operational capabilities. Additionally, the bank's recent legal settlement related to the Dixie Fire contributed significantly to the increase in non-interest income, underscoring the impact of external events on financial performance.

The bank's loan portfolio remains diversified, with commercial real estate loans comprising 65.4% of total loans. However, there were declines in agricultural and auto loans, reflecting a strategic shift away from lower-yielding segments. The allowance for credit losses stood at $13.32 million, representing 1.32% of total loans, indicating a cautious approach to credit risk management amid changing economic conditions.

Looking ahead, Plumas Bancorp anticipates continued growth in net interest income driven by an expanding loan portfolio and improved yields on investments. However, management remains vigilant regarding potential economic headwinds, including interest rate fluctuations and credit quality challenges. The bank's capital ratios remain strong, exceeding regulatory requirements, positioning it well for future growth and stability.