Cornerstone shareholders approve merger with Plumas Bancor

Published 03/06/2025, 14:38
Cornerstone shareholders approve merger with Plumas Bancor

RENO, Nev. - Cornerstone Community Bancorp and Plumas Bancorp (market capitalization: $254.24 million) have announced the approval by Cornerstone’s shareholders of a merger with Plumas Bancorp. The merger agreement, which involves the conversion of Cornerstone shares into a mix of cash and Plumas stock, has met all necessary bank regulatory approvals for completion. While Plumas Bancorp’s shareholder approval is not required, the transaction is still subject to certain conditions outlined in the merger agreement. According to InvestingPro data, Plumas maintains a strong financial health score and has demonstrated consistent dividend growth, raising its payments for 4 consecutive years.

The merger is anticipated to finalize in early July 2025, creating a combined entity with approximately $2.3 billion in total assets and 19 full-service banking branches across 11 counties in Northern California and Nevada. This strategic move is expected to enhance services for the communities served by both institutions, as well as provide value for shareholders, clients, and employees. Plumas Bancorp’s solid performance is reflected in its 9.14% revenue growth and P/E ratio of 9.12. InvestingPro subscribers can access over 30 additional financial metrics and insights about Plumas Bancorp’s growth potential.

Andrew J. Ryback, President and CEO of Plumas Bancorp, emphasized the shared commitment to Northern California’s growth and prosperity, highlighting the merger’s role in integrating local expertise with advanced technology and small business solutions. Matthew B. Moseley, President and CEO of Cornerstone, who will continue with Plumas post-acquisition, also expressed enthusiasm for the merger. He noted the opportunity to expand their reach and maintain high service standards, leveraging the collective experience of both organizations. Analysts share this optimism, with three analysts recently revising their earnings estimates upward for the upcoming period, as reported by InvestingPro.

The information for this article is based on a press release statement.

In other recent news, Plumas Bancorp reported first-quarter earnings that exceeded analyst expectations, with earnings per diluted share reaching $1.20, surpassing the consensus estimate of $1.12. The company’s revenue also outperformed projections, coming in at $21.75 million compared to the anticipated $20.75 million. This financial success was accompanied by an improvement in net interest income, which increased by $1.1 million to $18.5 million, and a rise in the net interest margin to 4.95%. Additionally, Plumas Bancorp announced a definitive merger agreement with Cornerstone Community Bancorp, which will create a combined entity boasting over $2.3 billion in assets. In another development, Plumas Bancorp declared a quarterly cash dividend of $0.30 per common share, payable on May 15, 2025. Analyst firm Raymond James adjusted its outlook for Plumas Bancorp, lowering the price target to $48.00 while maintaining an Outperform rating, citing broader economic challenges. The company’s strong asset quality and strategic initiatives were highlighted as key strengths. Furthermore, Plumas Bancorp held its Annual Meeting of Shareholders, where all director nominees were elected, and the appointment of Elliott Davis, LLC as independent auditors was ratified.

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