Executive Summary

Q1 2025 delivered a clean beat: diluted EPS $1.20 vs Wall Street consensus $1.12; total revenue (net interest income + non-interest income) ~$21.75M vs consensus ~$20.59M. The beat was driven by higher net interest income and a $1.1M legal settlement boosting non-interest income. Values retrieved from S&P Global* .
Net interest margin expanded to 4.95% (+33bps YoY), aided by loan growth and full payoff of 2024 BTFP borrowings; asset quality improved as nonperforming assets fell to 0.23% of total assets .
Non-interest expense rose (+$1.1M YoY) on merger-related costs ($569k) and rent from 2024 sale-leaseback; the effective tax rate increased to 28.5% (from 25.4% a year ago), partially offsetting operating gains .
Strategic catalyst: definitive agreement to acquire Cornerstone Community Bancorp; management guides to ~9% EPS accretion in 2025 and ~23% in 2026, with ~13% TBV dilution and earn-back <3 years .

What Went Well and What Went Wrong

What Went Well

Net interest income increased $1.1M YoY to $18.54M, driven by loan growth and lower interest expense following BTFP repayment .
Net interest margin expanded to 4.95% (Q1) from 4.62% (Q1 2024), with stronger yields on fixed-rate SBA loans and a restructured investment portfolio .
Asset quality improved: nonperforming assets fell to $3.8M (0.23% of assets) and net charge-offs declined to $127k vs $610k a year ago .
Management quote: “With projected earnings accretion and a focused integration process, we are confident in our ability to deliver long-term growth and success.” — Andrew J. Ryback, CEO .
Deposit base strengthened: +$73M YoY to $1.37B; non-interest-bearing deposits ~49% and no brokered deposits .
Increased external visibility: “Piper Sandler added Plumas to its independent research coverage… all three firms previously released ‘Buy’ recommendations” .

What Went Wrong

Non-interest expense rose $1.1M YoY to $11.47M, including $569k of non-deductible merger costs and higher rent (+$338k) from sale-leaseback .
Effective tax rate increased to 28.5% (from 25.4%), lifting income tax expense by $731k YoY and tempering net income flow-through .
Higher rates paid on interest-bearing deposits (1.11% vs 0.75% YoY), with premium rates offered to public entities increasing money market costs .

Financial Results

EPS and Total Revenue vs prior quarters and estimates

Metric	Q3 2024	Q4 2024	Q1 2025
Diluted EPS ($)	1.31	1.29	1.20
Consensus EPS ($)	—	1.19*	1.12*
Net Interest Income ($M)	18.87	18.96	18.54
Non-Interest Income ($M)	2.24	2.20	3.21
Total Revenue ($M)	21.11	21.16	21.75
Consensus Revenue ($M)	—	20.72*	20.59*

Notes: Consensus EPS and Revenue values retrieved from S&P Global*.

Margins and efficiency

Metric	Q3 2024	Q4 2024	Q1 2025
Net Interest Margin (%)	4.76%	4.90%	4.95%
Efficiency Ratio (%)	51.3%	50.4%	52.7%
ROAA (%) (annualized)	1.84%	1.87%	1.79%
ROAE (%) (annualized)	18.1%	17.1%	16.0%

KPIs and credit

Metric	Q3 2024	Q4 2024	Q1 2025
Nonperforming Loans ($M)	4.46	4.11	3.69
NPL / Total Loans (%)	0.44%	0.40%	0.36%
Nonperforming Assets ($M)	4.75	4.31	3.79
NPA / Total Assets (%)	0.29%	0.27%	0.23%
Allowance for Credit Losses ($M)	13.61	13.20	13.32
ACL / Total Loans (%)	1.35%	1.30%	1.32%
Net Charge-offs ($k)	610 YTD	1,046 FY	127 QTD
Tier 1 Leverage Ratio (%)	11.3%	11.9%	12.3%
CET1 (%)	16.9%	17.3%	17.8%

Loan portfolio mix (end of period)

Category (% of total loans)	Q3 2024	Q4 2024	Q1 2025
Commercial	8.2%	7.6%	7.7%
Agricultural	12.1%	11.7%	11.1%
CRE (Commercial Real Estate)	61.6%	63.7%	65.4%
Construction & Land	5.4%	5.3%	4.6%
Auto	7.2%	6.4%	5.8%
Equity LOC	3.8%	3.7%	3.8%
Other	0.5%	0.5%	0.5%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
EPS accretion from Cornerstone acquisition	FY 2025	N/A	~9% accretion	New
EPS accretion from Cornerstone acquisition	FY 2026	N/A	~23% accretion	New
TBV dilution at close	Close	N/A	~13% dilution; earn-back <3 yrs	New
Dividend per share	Q2 2025 payable May 15	$0.27 (2024 run-rate)	$0.30 declared Apr 17	Raised
Revenue/margin/OpEx guidance	2025	Not provided	Not provided	Maintained (none)

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was available in the document catalog during the period reviewed. The following themes reflect management commentary across press releases and filings.

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Rates & deposit dynamics	Fed cut 50bp expected to temper rate-seeking deposits	Premium rates for public entities lifted money market costs; overall deposits +$73M YoY	Stable deposits; higher cost mix
SBA/loan production	SBA loan growth; higher yields ~8.1%	SBA fixed-rate portfolio $74M at 8.3%	Continued focus, supportive yields
Investment portfolio	Partial restructuring boosted yields	Yields +44bps to 4.12%; average balances down YoY	Yield tailwind sustained
Sale-leaseback impact	Rent +$705k in Q3; +$622k in Q4	Rent +$338k YoY Q1; efficiency ratio 52.7%	Cost headwind persists
BTFP borrowings	$60M paid off by Nov’24; $75M YoY decrease Q4	Fully paid off; interest expense lower YoY	Funding cost relief
M&A	None	Announced Cornerstone merger; EPS accretive; TBV dilution earn-back <3 yrs	Positive strategic shift
Asset quality	NPA ~0.29% Q3	NPA 0.23%; NPL 0.36%	Improving

Management Commentary

“The highlight of this quarter is the announcement of our definitive merger agreement with Cornerstone Community Bancorp… creating enhanced opportunities for our clients, shareholders, and team members… With projected earnings accretion and a focused integration process, we are confident in our ability to deliver long-term growth and success.” — Andrew J. Ryback, CEO .
“Piper Sandler added Plumas to its independent research coverage… all three firms previously released ‘Buy’ recommendations for PLBC stock.” — Andrew J. Ryback .
“Driven mostly by growth in the loan portfolio and the repayment of the BTFP borrowings, net interest income increased by $1.1 million… Net interest margin… increased 33bp to 4.95%.” — Company release .

Q&A Highlights

No Q1 2025 earnings call transcript was available; therefore, Q&A highlights and any guidance clarifications from an analyst call could not be extracted from primary sources.

Estimates Context

EPS: Company reported diluted EPS $1.20 vs S&P Global consensus $1.12; consensus based on 3 estimates*.
Revenue: Company total revenue (NII + non-interest income) ~$21.75M vs S&P Global consensus ~$20.59M; consensus based on 3 estimates*.
Prior quarter context: Q4 2024 diluted EPS $1.29 vs consensus $1.19; total revenue ~$21.16M vs consensus ~$20.72M*.
Values retrieved from S&P Global*. Company actuals: .

Key Takeaways for Investors

Quality beat with margin expansion and improved asset quality: EPS beat and NIM at 4.95% reinforce earnings resilience as funding costs normalize post-BTFP .
Non-interest expense is elevated short-term from merger and leaseback-driven rent, but accretion from Cornerstone in 2025–2026 should offset, supporting forward EPS growth .
Deposit franchise remains strong (49% non-interest-bearing; no brokered deposits), though higher public-entity money market rates raise deposit beta—monitor mix and cost of funds .
SBA production and CRE exposure continue to anchor yields; watch CRE credit metrics amid repricing cycles and special mention migration in agricultural loans .
Capital ratios are robust (CET1 17.8%, leverage 12.3%), enabling strategic M&A and dividend continuity ($0.30 declared) .
Near-term estimate revisions likely trend upward on demonstrated beat and accretion narrative; watch expense run-rate and effective tax rate for EPS sensitivity .
Trading implication: Positive skew on beat + accretive M&A; pullbacks tied to expense optics/efficiency ratio could be buyable if asset quality and NIM trajectory remain intact .

PLUMAS BANCORP (PLBC)·Q1 2025 Earnings Summary