Plumas Bancorp Reports $9.8 Million Net Income in Q1 2026, Driven by Increased Net Interest Income

Plumas Bancorp reported a net income of $9.8 million for the first quarter of 2026, a significant increase from $7.2 million in the same period last year. This growth was primarily driven by a $6.6 million rise in net interest income, which reached $25.1 million, compared to $18.5 million in the first quarter of 2025. The increase in net interest income was attributed to a higher volume of loans and an increase in the yield on loans, which rose to 6.45% from 6.17%. The provision for credit losses also saw a recovery of $330,000, contrasting with a provision of $250,000 in the previous year.

Total assets for Plumas Bancorp decreased to $2.2 billion as of March 31, 2026, down from $2.24 billion at the end of 2025. This decline was mainly due to reductions in cash and cash equivalents, net loans, and investment securities. Total liabilities also fell to $1.93 billion, primarily driven by a decrease in deposits, which amounted to $1.77 billion, down from $1.81 billion at the end of the previous year. Shareholders' equity increased slightly to $265.4 million, reflecting retained earnings and stock option exercises.

In terms of operational developments, Plumas Bancorp completed the acquisition of Cornerstone Community Bancorp on July 1, 2025, which expanded its branch network and diversified its lending capabilities. The merger added four branches in Northern California and contributed to the growth in the loan portfolio, which totaled $1.5 billion as of March 31, 2026. The company reported a slight decrease in gross loans, primarily due to declines in agricultural and commercial loans, although there were increases in commercial real estate and construction loans.

The company’s non-interest income for the first quarter of 2026 was $3.0 million, a decrease from $3.2 million in the prior year, largely due to a one-time settlement related to the Dixie Fire in 2025. However, increases in FHLB dividends and earnings on bank-owned life insurance partially offset this decline. Non-interest expenses rose to $15.3 million, up from $11.5 million, driven by higher salaries and benefits, occupancy costs, and losses from fraudulent wire transfers.

Looking ahead, Plumas Bancorp remains focused on maintaining its capital adequacy and managing its loan portfolio effectively. The company’s capital ratios exceed the minimum requirements to be considered "well-capitalized" under regulatory standards. Management anticipates continued growth in net interest income, supported by the integration of Cornerstone and a focus on small to medium-sized commercial businesses. However, the company acknowledges potential risks, including changes in the interest rate environment and economic conditions that could impact credit quality.