Companies

Plumas Bancorp's Credit-Loss Provision Collapses

The Tip Desk · October 22, 2026 · 3 min read

Net earnings reached $11.4 million, or $1.64 a share, as the provision for credit losses fell to $150 thousand from $5.4 million a year earlier.

Plumas Bancorp (PLBC), the parent of Plumas Bank, reported net earnings of $11.4 million, or $1.64 a share, for the three months ended September 30, 2026, up $6.2 million from $5.1 million, or $0.74 a share, a year earlier.

The credit-loss provision was the swing. It fell to $150 thousand from $5.4 million in the year-ago quarter, after a $600 thousand charge in the second quarter. Return on average assets rose to 1.98% from 0.90% a year earlier, and return on average equity increased to 16.7% from 8.5%.

Net interest income was $26.5 million, up $1.3 million from $25.2 million a year earlier. That followed a $7.8 million year-over-year increase in the second quarter, when net interest income had been $26.0 million. The year-over-year gain reflected $1.3 million of higher interest income and a $113 thousand decrease in interest expense. Net interest margin increased 22 basis points to 5.05% from 4.83% a year earlier.

Interest and fees on loans rose $1.2 million to $24.8 million. Average loan balances increased $26 million and the average loan yield rose 21 basis points to 6.56% from 6.35%. The company said the yield increase related to amortization of discount on purchased loans, repricing of commercial real estate loans, and growth in fixed-rate SBA loans, which totaled $132 million at September 30, 2026. The average prime rate declined to 6.79% from 7.46% a year earlier.

Gross loans were $1.5 billion at September 30, 2026, unchanged from a year earlier. Increases of $35 million in commercial real estate, $5 million in construction and $1 million in equity lines were offset by a $20 million decline in automobile loans, $15 million in agricultural loans, $4 million in other loans and $2 million in commercial loans. President Andrew J. Ryback said loan balances remained relatively consistent, in part due to planned runoff of the lower-yielding indirect auto portfolio. About 79% of the portfolio was variable rate.

Total deposits increased $47 million, or 2.6%, to $1.9 billion from $1.8 billion a year earlier. Money market accounts rose $38 million and time deposits $22 million, partly offset by $11 million lower savings and $2 million lower non-interest-bearing demand deposits. Non-interest-bearing demand deposits were 46% of deposits. Cash and due from banks increased $27 million to $114 million.

Nonperforming assets were $21.3 million, or 0.94% of assets, up from $15.2 million, or 0.68%, a year earlier. Nonperforming loans were $21.1 million, or 1.41% of loans, up from $15.0 million, or 1.0%. Ryback said asset quality slightly improved during the quarter.

Non-interest income increased $538 thousand to $2.8 million from $2.2 million a year earlier, primarily from the absence of a $628 thousand loss on sale of investment securities in the prior-year quarter. Non-interest expense was $15.1 million, essentially unchanged from a year earlier. An $879 thousand reduction in merger expenses offset higher professional fees, occupancy, salaries and loan-collection costs.

Plumas Bank purchased $14.5 million in green energy tax credits. The company recorded a $1.2 million reduction in the provision for income taxes and the effective tax rate declined to 18.9% from 25.6% a year earlier. The provision for income taxes increased $877 thousand to $2.6 million from $1.8 million, due to higher pre-tax earnings.

Shareholders’ equity was $262.5 million at September 30, 2026, up $16.5 million from $246.0 million a year earlier. The company had $576 million of available borrowing capacity through FHLB advances, the FRB Discount Window and correspondent lines. Outstanding borrowings of $14.3 million with a correspondent bank mature in January 2035.

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