Executive Summary

Q2 2025 results missed S&P Global consensus: diluted EPS $1.05 vs $1.19 consensus (Primary EPS), and revenue (S&P definition) $19.68M vs $21.01M consensus, driven by a $344K interest reversal tied to an ag borrower placed on nonaccrual and higher deposit costs; ex-reversal, NIM would have been 4.93% vs reported 4.83% . EPS consensus and revenue metrics marked with * are from S&P Global estimates and actuals.*
Asset quality deteriorated: nonperforming loans rose to 1.34% of loans (from 0.90% YoY), largely due to one agricultural relationship (15 loans; $9.9M) moved to nonaccrual; $931K of specific reserves applied .
Expenses elevated by Cornerstone merger costs ($481K this quarter), lifting the efficiency ratio to 53.6% and trimming ROE to 13.4% .
Liquidity and capital remain solid with no brokered deposits, strong TCE/TA of 11.5%, and BTFP fully repaid in 2024; book value per share rose to $32.54 .
Strategic catalyst: Cornerstone acquisition closed July 1, 2025 (post-quarter), expanding the footprint in the northern Sacramento Valley and adding experienced leadership, with management highlighting treasury management expansion and lending process efficiencies .

What Went Well and What Went Wrong

What Went Well

Margin resiliency ex one-time item: reported NIM 4.83% would have been 4.93% excluding a $344K interest reversal tied to the ag nonaccrual; loan yields benefited from fixed-rate SBA originations (~$75M at 8.3%) and CRE repricing off the 5-year Treasury .
Lower funding costs from balance sheet actions: interest expense fell YoY on elimination of BTFP borrowings; average rate paid on interest-bearing liabilities decreased to 1.33% (from 1.44%) .
Strategic progress and capital: Cornerstone deal completed July 1; management emphasized treasury management expansion and lending platform efficiencies, while TCE/TA improved to 11.5% and BVPS to $32.54 .

What Went Wrong

Asset quality: nonperforming loans jumped to 1.34% of loans, driven by one ag relationship; $344K interest reversed and $931K of specific reserves applied .
Earnings pressure: diluted EPS fell to $1.05 (from $1.14 YoY) and net income to $6.3M (from $6.8M), as higher deposit rates and merger expenses offset modest fee gains .
Deposit cost inflation: interest on deposits rose $968K YoY, led by premium money market pricing to match California LAIF rates for public entities; average rate on interest-bearing deposits climbed to 1.30% (from 0.84%) .

Financial Results

S&P Global Actuals by Period (for estimate comparisons)

Metric	Q2 2024	Q1 2025	Q2 2025
Primary EPS (S&P)*	1.14*	1.133*	1.111*
Revenue (S&P)* ($)	19.682M*	21.502M*	19.684M*
EBIT (S&P)* ($)	9.286M*	10.605M*	9.153M*

S&P Global metrics marked with *; Values retrieved from S&P Global.

Q2 2025 Consensus vs Actual (S&P Global)

Metric	Consensus*	Actual*	Surprise (Abs/%)
Primary EPS (S&P)*	1.19*	1.111*	-0.08 / -6.7%*
Revenue (S&P)* ($)	21.006M*	19.684M*	-1.322M / -6.3%*
EBIT (S&P)* ($)	10.080M*	9.153M*	-0.927M / -9.2%*

S&P Global metrics marked with *; Values retrieved from S&P Global.

Note: S&P’s revenue actual ($19.684M*) aligns to net interest income after provision ($17.323M) + non-interest income ($2.361M) reported in the 8-K .

GAAP P&L Summary (Oldest → Newest)

Metric	Q4 2024	Q1 2025	Q2 2025
Interest Income ($)	21.276M	20.590M	20.633M
Interest Expense ($)	2.317M	2.051M	2.450M
Net Interest Income ($)	18.959M	18.539M	18.183M
Provision for Credit Losses ($)	(0.150)M	0.250M	0.860M
Non-Interest Income ($)	2.201M	3.213M	2.361M
Non-Interest Expense ($)	10.657M	11.466M	11.012M
Pre-Tax Income ($)	10.653M	10.036M	8.672M
Net Income ($)	7.749M	7.180M	6.321M
Diluted EPS ($)	1.29	1.20	1.05

KPI Snapshot (Oldest → Newest)

KPI	Q4 2024	Q1 2025	Q2 2025
Net Interest Margin	4.90%	4.95%	4.83% (4.93% ex $344K reversal)
ROA (annualized)	1.87%	1.79%	1.56%
ROE (annualized)	17.1%	16.0%	13.4%
Efficiency Ratio	50.4%	52.7%	53.6%
NPLs / Loans	0.40%	0.36%	1.34%
NPAs / Assets	0.27%	0.23%	0.84%
ACL / Loans	1.30%	1.32%	1.39%

Balance Sheet and Mix (Period-End)

Metric	Q4 2024	Q1 2025	Q2 2025
Gross Loans ($)	1,015.4M	1,010.7M	1,017.8M
Total Deposits ($)	1,371.1M	1,373.1M	1,366.8M
Non-Interest Bearing (% of Deposits)	51.0%	49.3%	48.9%
Money Market ($ / %)	267.6M / 19.5%	290.1M / 21.1%	281.5M / 20.6%
Savings ($ / %)	309.9M / 22.6%	323.5M / 23.6%	290.4M / 21.2%
Time ($ / %)	94.2M / 6.9%	83.0M / 6.0%	126.8M / 9.3%
TCE / TA	10.6%	11.1%	11.5%
BVPS ($)	30.14	31.68	32.54

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Formal financial guidance	FY/Quarter	Not provided	Not provided	Maintained (no formal guidance)
Dividend per share	Quarterly	$0.27 (2024 quarterly payments)	$0.30 (Q1 & Q2 2025 payments)	Raised vs 2024 baseline

Management did not issue quantitative revenue/margin/tax guidance; commentary focused on Cornerstone integration, treasury management expansion, and lending platform efficiency initiatives .

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available; MarketBeat listed a call scheduled for July 18, 2025, 12:30pm ET . The thematic evolution below draws from management’s prepared comments in recent releases.

Topic	Q-2 (Q4 2024)	Q-1 (Q1 2025)	Current (Q2 2025)	Trend
M&A / Footprint	Sale-leaseback; optimistic on loan demand; treasury mgmt formalization incl. FedNow Receive	Definitive merger agreement with Cornerstone; combined >$2.3B assets projected	Cornerstone acquisition closed July 1; leadership additions; expanded N. Sacramento Valley presence	Integration progressing; geographic expansion
Treasury Mgmt / Tech	Formalized treasury services; operational enhancements	Confidence in integration, investor coverage added	Expanding treasury management services with enhanced security	Continued build-out
Margin / Funding	Margin expansion, portfolio restructuring benefits	NIM +33bp YoY to 4.95%; BTFP payoff tailwind	NIM 4.83% (4.93% ex reversal); deposit costs higher due to public entity MMAs	Mixed; underlying margin resilient ex one-time
Asset Quality	Low NPLs; stable NPAs	NPLs improved to 0.36%	One ag relationship drove NPLs to 1.34%; $344K interest reversal, $931K specific reserves	Deterioration this quarter
SBA / Product Mix	Higher-yield SBA production; portfolio restructuring	SBA loans up; weighted avg rate 8.3%	SBA fixed-rate portfolio $75M at 8.3%	Continuing support to yields

Management Commentary

“The third quarter of 2025 began with a major development for Plumas; we successfully completed our acquisitions of Cornerstone Community Bank and Bancorp… We also welcome… Matt Moseley… to the executive team as Market President.” – Andrew J. Ryback, President & CEO .
“We are expanding our treasury management services… and… gained efficiency in our lending process through on-going refinements to our lending platforms and department structures.” – Andrew J. Ryback .
“The highlight of this quarter is the announcement of our definitive merger agreement with Cornerstone Community Bancorp… This merger reinforces our commitment to serving Northern California and Western Nevada…” – Andrew J. Ryback (Q1 commentary) .

Q&A Highlights

No Q2 2025 transcript available to extract Q&A. MarketBeat listed a call for July 18, 2025, 12:30pm ET; no transcript was accessible at time of analysis .

Estimates Context

EPS and revenue missed S&P Global consensus for Q2 2025 (Primary EPS 1.111* vs 1.19*, Revenue $19.68M* vs $21.01M*), following a Q1 beat on both metrics (EPS 1.133* vs 1.12*, Revenue $21.50M* vs $20.59M*) and a Q4 beat [GetEstimates; Values retrieved from S&P Global].*
The miss is attributable to: interest reversal on an ag nonaccrual ($344K) depressing yields and NIM; elevated deposit costs from premium public entity money market pricing; and $481K of merger expenses .
Given higher NPLs (1.34% of loans) and merger costs, Street EPS may shift lower near term; if credit normalizes and merger charges taper, underlying NIM (4.93% ex reversal) suggests earnings power remains intact .

Key Takeaways for Investors

Core margin intact: NIM would have been 4.93% ex one-time interest reversal; fixed-rate SBA and CRE repricing support yields .
Credit watch: one ag relationship drove NPLs to 1.34% of loans; $931K specific reserves established; monitor further migration and any charge-offs .
Funding dynamics: deposit costs rising (interest-bearing deposit rate 1.30% vs 0.84% YoY) due to public entity MMAs matching LAIF; time deposit balances also higher; expect some pressure until repricing abates .
Expense trajectory: Cornerstone-related costs ($481K in Q2) elevated efficiency ratio to 53.6%; integration pace will influence near-term operating leverage .
Capital and liquidity strength: TCE/TA 11.5%, no brokered deposits, all BTFP repaid in 2024; BVPS $32.54 supports downside resilience and dividend capacity .
Strategic upside: Cornerstone close (July 1) expands Northern California presence and adds leadership depth; treasury management expansion should deepen client relationships .
Dividend maintained at $0.30 per share in Q2; track capital deployment alongside integration investments .

Additional Context and Prior Periods

Q1 2025: EPS diluted $1.20; NIM 4.95%; non-interest income boosted by $1.1M Dixie Fire settlement; merger costs $569K .
Q4 2024: EPS diluted $1.29; margin expansion on portfolio restructuring and BTFP wind-down; sale-leaseback increased rent but optimized capital; ROE 17.1% .

Other Relevant Press Releases in Q2 2025

Cornerstone shareholder approval (June 3, 2025); combined company expected at ~$2.3B assets and 19 branches across 11 counties .
Dividend declaration (April 17, 2025): $0.30 per share payable May 15, 2025 .

Notes:

S&P Global estimates and actuals used for consensus comparisons are marked with * and lack document citations by design. Values retrieved from S&P Global.
S&P “Revenue” for banks reflects net interest income after provision plus non-interest income; for Q2 2025, $17.323M + $2.361M = $19.684M, matching S&P actual .

PLUMAS BANCORP (PLBC)·Q2 2025 Earnings Summary