Plumas Bancorp Dips as Loan Concern Overrules Record Profit
Shares fall despite a 140% EPS beat, as a single $9.9 million nonperforming agricultural loan draws investor scrutiny and overshadows acquisition-fueled growth.
Plumas Bancorp (NASDAQ: PLBC) shares fell on Tuesday despite the regional bank posting fourth-quarter earnings that dramatically outpaced analyst expectations. The market’s cautious reaction highlights investor anxiety over a sharp deterioration in the bank’s asset quality, which overshadowed record profits fueled by a recent acquisition.
The Reno-based bank’s stock closed down 1.83% at $44.53, even as it reported quarterly earnings per share of $1.56, a staggering 140% above the consensus estimate of $0.65. Plumas also posted quarterly revenue of $28.6 million, with net income rising to $10.9 million. Much of this growth was attributed to the company's July 2025 acquisition of Cornerstone Community Bank.
In a statement on the year's results, President and CEO Andrew J. Ryback acknowledged the strategic importance of the deal. "2025 was a year of purposeful execution and long term positioning for Plumas Bancorp," Ryback said. "The Cornerstone Community Bancorp acquisition continues to strengthen our franchise by expanding our presence across Northern California, enhancing scale, and deepening relationships."
The integration contributed to a 49% year-over-year increase in gross loans to $1.5 billion and a 32% rise in total deposits to $1.8 billion, according to the company's earnings release.
However, investors looked past the robust headline growth and focused on a significant red flag in the bank's loan portfolio. Nonperforming assets surged to $15.3 million as of December 31, 2025, a nearly four-fold increase from the $4.1 million reported a year earlier. The bank disclosed that the spike was primarily due to a single large agricultural loan relationship totaling $9.9 million, which has been placed on nonaccrual status.
Management directly addressed the issue, signaling it as a key focus for the coming year. Ryback stated that "improving nonperforming metrics with prudent credit risk management, including workouts and resolution on a single large agricultural relationship, will continue to be a priority."
The market’s punitive reaction to the credit quality concerns stands in contrast to a bullish analyst consensus. The three analysts covering Plumas Bancorp maintain a 'Buy' or 'Strong Buy' rating, with an average price target of $54.33, implying significant upside from its current level. This disparity suggests that Wall Street analysts may have more confidence in the bank’s ability to manage the loan workout process than the broader market currently does.
With a market capitalization of approximately $315 million, Plumas Bancorp's performance is a key indicator for the health of small-to-medium enterprise lending in its Northern California and Nevada territories. Management also pointed to other strategic actions taken to bolster its financial position, including a real estate sale-leaseback that generated a $5.5 million pre-tax gain used to restructure its investment portfolio.
Looking ahead, the bank’s trajectory in 2026 will be defined by this tug-of-war between strong, acquisition-driven profitability and the market's renewed focus on credit risk. As Ryback noted, the company’s focus is on "margin durability and cost-of-funds improvement," but investors will be watching closely to see how effectively Plumas can resolve its troubled loan and prevent further balance sheet deterioration.