Executive Summary

Q3 2025 GAAP EPS was $0.73 and net income $5.1M; despite sharply higher provision and merger-related costs, EPS beat S&P Global consensus ($0.65) on stronger net interest income and a lower tax rate, while total revenue modestly missed consensus ($27.42M actual vs ~$28.07M) . EPS consensus values retrieved from S&P Global.*
Net interest margin held at 4.83% as Cornerstone integration actions (paying off $38.5M brokered CDs, $15M FHLB borrowing; transferring ~$60M reciprocals to repo) supported funding costs; management expects cost of funds to “decrease slightly” post-acquisition and with the September Fed cut .
Balance sheet stepped up on acquisition: loans +49% to $1.50B, deposits +35% to $1.82B, assets $2.23B; uninsured deposits up to ~$718M, largely collateralized for public entities .
Asset quality mixed: NPL ratio rose to 1.00% on one ~$9.8M ag relationship moved to nonaccrual in Q2; ACL coverage at 1.30% and net charge-offs remain low YTD ($0.22M) .
Near-term catalysts: execution on funding cost reductions; planned redemption of $10M 2030 subordinated notes on Dec 30, 2025; steady dividend ($0.30/share declared for Nov 17, 2025) .

What Went Well and What Went Wrong

What Went Well

Net interest income rose 33% YoY to $25.2M; NIM held at 4.83% as loan yields improved and acquired portfolio actions reduced higher-cost liabilities .
Cornerstone integration: “streamlined conversion in July” with “retention of most employees” and balance sheet repositioning to improve NIM, signaling execution momentum .
Non-GAAP performance excluding merger/CECL day-1 items: adjusted net income $9.5M and diluted EPS $1.35 (ROAA 1.66%), highlighting underlying earnings power post-acquisition .

What Went Wrong

Provision for credit losses surged to $5.37M vs $(0.40)M recovery in Q3’24, driven by CECL day-1 on non‑PCD loans from Cornerstone and ag credit weakness; GAAP net income fell to $5.1M from $7.8M YoY .
Non-interest expense rose 40% YoY to $15.1M, including $0.88M merger costs, higher salaries/benefits (+$1.94M), occupancy, outside services, and CDI amortization .
Nonperforming loans increased to $15.0M (1.00% of loans) from $4.5M (0.44%) YoY due to one ag relationship (~$9.8M) placed on nonaccrual in Q2’25, pressuring asset quality metrics .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Total Revenue (NII + Non-interest income) ($USD Millions)	$21.11	$20.54	$27.42
Net Interest Income ($USD Millions)	$18.87	$18.18	$25.17
Non-interest Income ($USD Millions)	$2.24	$2.36	$2.25
Provision for Credit Losses ($USD Millions)	$(0.40)	$0.86	$5.37
Non-interest Expense ($USD Millions)	$10.82	$11.01	$15.13
Pre-tax Income ($USD Millions)	$10.68	$8.67	$6.92
Net Income ($USD Millions)	$7.83	$6.32	$5.15
Diluted EPS ($USD)	$1.31	$1.05	$0.73
Net Interest Margin (%)	4.76%	4.83%	4.83%
ROAA (annualized, %)	1.84%	1.56%	0.90%
ROAE (annualized, %)	18.1%	13.4%	8.5%

Segment/Balance Sheet Mix

KPI	Q3 2024	Q2 2025	Q3 2025
Total Assets ($USD Billions)	$1.664	$1.629	$2.229
Net Loans ($USD Billions)	$0.993	$1.007	$1.480
Deposits ($USD Billions)	$1.351	$1.367	$1.820
Noninterest-bearing Deposits (%)	52.0%	48.9%	47.4%
Money Market Deposits ($USD Millions)	$229.3	$281.5	$433.8
Time Deposits ($USD Millions)	$102.2	$126.8	$214.6
Nonperforming Loans Ratio (%)	0.44%	1.34%	1.00%
ACL / Total Loans (%)	1.35%	1.39%	1.30%
Uninsured Deposits ($USD Millions)	—	~$516	~$718

Loan Composition (gross)

Category	Q3 2024	Q3 2025
Commercial ($USD Millions)	$82.2	$161.7
Agricultural ($USD Millions)	$121.7	$154.1
CRE – Commercial ($USD Millions)	$618.2	$980.7
Auto ($USD Millions)	$72.4	$45.1
Total Gross Loans ($USD Millions)	$1,003.5	$1,496.5

Non-GAAP adjustments (merger-related & CECL day-1)

Metric	GAAP Q3 2025	Non-GAAP Q3 2025
Pre-tax Income ($USD Thousands)	$6,915	$13,117
Net Income ($USD Thousands)	$5,146	$9,515
Diluted EPS ($USD)	$0.73	$1.35
ROAA (annualized, %)	0.90%	1.66%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Cost of Funds	Near-term (post Sept 2025)	N/A	Expect to “decrease slightly” with acquisition actions and Fed rate cut in Sept 2025	New (qualitative)
FV Marks – Core Deposit Intangible (pretax impact)	Q4 2025 / FY 2026	N/A	$(0.557)M (Q4’25), $(2.082)M (FY’26)	New
FV Marks – Loan Discount (pretax impact)	Q4 2025 / FY 2026	N/A	+$0.336M (Q4’25), +$1.290M (FY’26)	New
FV Marks – Time Deposits (pretax impact)	Q4 2025 / FY 2026	N/A	$(0.061)M (Q4’25), $(0.092)M (FY’26)	New
FV Marks – Debentures (pretax impact)	Q4 2025 / FY 2026	N/A	$(0.058)M (Q4’25), $(0.023)M (FY’26)	New
Subordinated Notes (2030)	Dec 30, 2025	N/A	Company intends to redeem $10M 2030 notes	New
Dividend	Q4 2025	$0.30/quarter (prior)	$0.30/quarter declared, payable Nov 17, 2025	Maintained

Earnings Call Themes & Trends

Note: No public Q3 2025 earnings call transcript found after searching. The table reflects management themes from Q1–Q3 press releases.

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Acquisition & Integration	Announced definitive Cornerstone merger; highlighted strategy and expected accretion	Completed merger July 1; welcomed Cornerstone leadership; early integration steps	“Streamlined conversion” in July; retained most employees; repositioned balance sheet to improve NIM	Positive execution
Cost of Funds & NIM	NIM up to 4.95% on BTFP payoff and portfolio actions	NIM 4.83%; explained cash yield decline and deposit rate mix	NIM 4.83%; expect cost of funds to decrease slightly; brokered CDs paid off; reciprocal moved to repo	Stable to improving
Credit Quality (Ag exposure)	NPL/loans 0.36%; asset quality strong	One ag relationship (~$9.9M) moved to nonaccrual; NPL/loans 1.34%	NPL/loans 1.00%; specific reserves $0.87M on ag loans	Mixed; modest deterioration vs 2024
Deposit Mix & Liquidity	Uninsured deposits ~$510M; strong funding access	Uninsured ~$516M; no brokered deposits	Uninsured ~$718M; collateralized public deposits; repo agreements $93.9M	Larger, more collateralized base
Capital & Leverage	Equity +$26M YoY; BTFP fully repaid	Equity $193M; BTFP zero; lines with FHLB/FRB available	Equity $246M; assumed $12M sub notes; intends to redeem 2030s; ample FHLB/FRB capacity	Proactive capital actions

Management Commentary

“The third quarter of 2025 marked a pivotal moment … with the successful completion of our acquisition of Cornerstone Community Bancorp and Cornerstone Community Bank.”
“To increase net interest margin, we sold off the acquired investment portfolio to provide liquidity to pay off higher costing liabilities including $38.5 million in brokered CDs and a $15 million FHLB … and then reinvested … at higher rates.”
“We expect cost of funds, which increased following the acquisition of Cornerstone, to decrease slightly with these changes along with the Fed rate reduction in September 2025.”

Q&A Highlights

No public Q3 2025 earnings call transcript was found after searching; Q&A highlights unavailable. We searched for an earnings call transcript and none was listed or returned in company documents [Search attempted; no transcript found].

Estimates Context

Metric	Q1 2025	Q2 2025	Q3 2025
Primary EPS Consensus Mean ($)	1.12*	1.19*	0.65*
Actual Diluted EPS ($)	1.20	1.05	0.73
Beat/Miss vs EPS Consensus	Beat (+$0.08)	Miss (−$0.14)	Beat (+$0.08)
Revenue Consensus Mean ($USD Millions)	20.59*	21.01*	28.07*
Actual Total Revenue ($USD Millions)	21.75	20.54	27.42
Beat/Miss vs Revenue Consensus	Beat (+$1.16M)	Miss (−$0.47M)	Miss (−$0.65M)

Values retrieved from S&P Global.*

Additional consensus context:

Target Price Consensus Mean: $54* (stable across 2025 quarters).
Number of estimates: EPS (#)=3*, Revenue (#)=3*.

Key Takeaways for Investors

Underlying earnings power remains solid post-acquisition: Non-GAAP EPS $1.35 vs GAAP $0.73 in Q3, indicating merger-related and CECL day-1 items heavily masked core profitability .
Funding-cost trajectory likely modestly lower into Q4 on liability actions and a rate cut; watch money market and repo balances and FV CDI amortization headwinds for net pretax impact .
Credit normalization concentrated in ag exposure (walnut pricing impact); NPLs elevated but specific reserves established; monitor ag and CRE repricing cohorts indexed to the 5-year Treasury .
Balance sheet scale-up (loans +49%, deposits +35%) adds earnings capacity; sustained NIM at 4.83% suggests potential for revenue growth with stable asset yields .
Planned redemption of $10M 2030 sub notes reduces interest expense and simplifies capital stack; dividend maintained at $0.30/share supports income investors .
Slight revenue misses vs consensus reflect lower cash yields and non-interest income drag (loss on CCB portfolio disposition); incremental improvements in non-interest income (BOLI, interchange) partially offset .
Near-term trading: Expect stock to be sensitive to cost-of-funds prints, ag credit updates, and demonstration of synergy capture; medium-term thesis hinges on integration synergies, stable NIM, and disciplined credit across an expanded footprint .

PLUMAS BANCORP (PLBC)·Q3 2025 Earnings Summary