Plumas Bancorp (PLBC): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of Plumas Bancorp's (PLBC) business lines as of late 2025, and the BCG Matrix is defintely the right tool to map their strategic position post-acquisition. We've mapped the post-Cornerstone landscape: high-growth Stars are emerging from the loan portfolio surge, which jumped 47% year-to-date, while rock-solid Cash Cows maintain a strong 4.83% Net Interest Margin on a low-cost deposit base. But, we also have to face the Dogs, like the 1.00% non-accruals, and the Question Marks surrounding merger expense absorption and fee income scaling. Keep reading to see exactly where PLBC should be deploying capital and where they need to be cautious.

Background of Plumas Bancorp (PLBC)

You're looking at Plumas Bancorp (PLBC), which you should know is the parent company for Plumas Bank. The bank itself got its start way back in 1980, and the holding company is based out of Reno, Nevada, though the bank's main office is in Quincy, California. Plumas Bancorp sticks to a community banking model, focusing on personalized financial services for individuals, families, and businesses across Northern California's more rural and semi-rural areas, plus a presence in Northern Nevada. That local focus means they have a branch network spanning counties like Plumas, Butte, Shasta, and Washoe in Nevada, operating a total of 15 branches and a couple of loan production offices.

The big story for Plumas Bancorp in 2025 was definitely the acquisition of Cornerstone Community Bancorp, which they finalized on July 1, 2025. This strategic move was designed to expand their footprint, and it certainly did; the combined entity ended the third quarter with total assets hitting $2.2 billion as of September 30, 2025. That acquisition immediately boosted the loan portfolio by nearly 50%, pushing gross loans up to $1.5 billion by that same date, with real estate loans making up 80% of that total book.

Financially, the year showed some mixed results, especially when you factor in the merger costs. For the three months ending September 30, 2025 (Q3 2025), Plumas Bancorp posted a net income of $5.1 million, which was lower than the $7.8 million they earned in Q3 2024. Similarly, the diluted earnings per share for that quarter came in at $0.73. However, looking at the first nine months of 2025, net income was $18.6 million, a dip from $20.9 million the prior year, largely due to increased provisions and merger expenses. Still, net interest income showed strength, climbing to $61.9 million for the nine-month period, supported by the growth in the loan portfolio.

You can see the scale of their operations by looking at the balance sheet as of the second quarter end, June 30, 2025, where total deposits stood at $1.4 billion and book value per share was $32.54. Even with the Q3 dip, the company declared a regular quarterly cash dividend of $0.30 per share in October 2025, showing a commitment to shareholder returns. Honestly, the bank is clearly prioritizing growth through M&A while managing the integration challenges that come with adding significant assets and operations.

Plumas Bancorp (PLBC) - BCG Matrix: Stars

Plumas Bancorp has demonstrated high market share capture in a growing footprint, evidenced by the strategic integration of Cornerstone Community Bancorp, effective July 1, 2025. This move immediately scaled the balance sheet, pushing total assets to $2.2 billion as of September 30, 2025. The acquisition contributed approximately $658 million in assets. On a pro forma combined basis, the entity reported total assets of approximately $2.3 billion as of March 31, 2025 (unaudited).

The expansion into the Northern Sacramento Valley, adding four branches in Anderson, Red Bluff, and Redding, California, solidifies a leadership position in that regional market segment. This aggressive growth strategy consumes cash but aims to secure future dominance, positioning these units as Stars.

The gross loan portfolio experienced significant growth, surging approximately 47% year-to-date to reach $1.5 billion as of the third quarter of 2025. This growth reflects the successful assimilation of the acquired loan book, which totaled approximately $478 million from Cornerstone. The combined entity's loan book is heavily weighted toward real estate, with loans related to real estate comprising 80% of the total portfolio as of September 30, 2025.

A key driver within the loan segment identified as a Star is the focused growth in high-yield, fixed-rate Small Business Administration (SBA) lending, which offers stability against variable rate fluctuations. This product line demonstrates strong yields, which helps offset the cash consumption associated with high-growth market share acquisition.

• Fixed-rate SBA loans portfolio size at June 30, 2025: $75 million.
• Weighted average rate earned on this fixed-rate SBA portfolio at June 30, 2025: 8.3%.
• Typical Plumas Bank fixed rates for 7-25 year terms: approximately 7.5% to 8.5%.
• Typical floating rates under SBA 7(a) (Prime at 7.5%): 9.5% to 10.5%.

Management is executing on the integration momentum following the July 1, 2025, closing date, anticipating that these strategic investments will translate into substantial shareholder returns. Specifically, the company expects the acquisition to be accretive to earnings per share by approximately 23% in the fiscal year 2026. This projected accretion follows an expected 9% EPS accretion for 2025.

Plumas Bancorp (PLBC) - BCG Matrix: Cash Cows

Cash Cows for Plumas Bancorp (PLBC) are those business units or assets that command a high market share within mature segments, generating significant cash flow that supports the rest of the corporation. These are the stable, high-margin components of the balance sheet.

Non-interest-bearing demand deposits represent a dominant, low-cost funding base for Plumas Bancorp. As of June 30, 2025, these deposits constituted 49% of the Company's total deposits, providing a substantial, sticky, and inexpensive source of funding that underpins profitability. This low-cost structure is key to maintaining strong margins in a competitive interest rate environment.

The core of Plumas Bancorp's asset generation is the Commercial Real Estate (CRE) loan portfolio. As of September 30, 2025, loans related to real estate comprised 80% of the total loan portfolio, which itself grew to $1.5 billion gross loans. This concentration in real estate lending, which provides stable, recurring net interest income, is characteristic of a high-market-share position in a local, mature market.

The bank's ability to generate superior returns from this asset base is evidenced by its Net Interest Margin (NIM). For the three months ended June 30, 2025, the NIM was 4.83%. This figure, while slightly lower than the first half's 4.89%, still signals strong pricing power within its established local markets, allowing Plumas Bancorp to effectively manage the cost of funds against its earning assets.

The overall funding strength is secured by the overall deposit base, which grew to $1.8 billion as of September 30, 2025, an increase of $469 million from September 30, 2024. This growth, fueled by increases in non-interest-bearing demand deposits, money market accounts, and time deposits, secures a sticky, local funding advantage that minimizes reliance on more volatile or expensive wholesale funding sources.

Here are the key statistical markers supporting the Cash Cow classification for Plumas Bancorp's core funding and lending structure as of mid-to-late 2025:

The management focus for these Cash Cow assets is on maintenance and efficiency, not aggressive growth spending. You should be looking for actions that support this:

• Investments to improve efficiency in core processing.
• Maintaining the high market share in local real estate lending.
• Minimizing promotional spending on already established deposit products.
• Focusing on asset quality within the large CRE portfolio.

For instance, the acquisition of Cornerstone Community Bancorp, which added $580 million in deposits, was strategically integrated to bolster this existing funding base, not just to chase new growth areas. The goal is to 'milk' the gains passively, ensuring the $25.2 million in net interest income generated in Q3 2025 from the loan book is protected.

Plumas Bancorp (PLBC) - BCG Matrix: Dogs

You're looking at the parts of Plumas Bancorp (PLBC) that aren't pulling their weight-the Dogs quadrant, characterized by low market share in slow-growth areas. These units often tie up capital without generating significant returns, making divestiture a common strategic consideration.

Asset quality metrics in the third quarter of 2025 clearly signal a Dog characteristic. Specifically, nonperforming loans (NPLs) reached 1.00% of total loans as of September 30, 2025. This pressure point is directly attributed to a single, specific non-accrual agricultural loan relationship, which was approximately $9.8 million in size and placed on nonaccrual status in the second quarter of 2025. This single relationship significantly pushed the NPL ratio up from 0.44% year-over-year.

The non-interest income streams also fit the profile of a Dog due to their small size and volatility. For the first nine months of 2025, these streams totaled only $7.8 million. To be fair, a portion of this was boosted by a one-time legal settlement, meaning the recurring, sustainable portion is likely even smaller and less reliable. This reliance on non-recurring items suggests these revenue sources have low market share in a stable, predictable income category.

We see clear evidence of contraction in certain loan segments during the first quarter of 2025, indicating low growth or market share loss in those specific product lines. These segments are candidates for minimization or restructuring.

The investment portfolio also contains elements that act like Dogs. Management is actively working to sell or allow the maturation of certain legacy, lower-yield investment securities. This action is necessary to free up capital to fund higher-rate loan growth elsewhere in the portfolio. As of March 31, 2025, investment securities totaled $447 million. Shifting these lower-yielding assets out of the portfolio is a classic move to stop cash from being trapped in low-return assets.

Here's a quick look at the components that suggest a Dog classification:

• NPL ratio hit 1.00% in Q3 2025 due to one agricultural credit.
• Non-interest income for 9M 2025 was $7.8 million.
• Automobile loan balances fell by $31 million in Q1 2025.
• Construction loan balances fell by $18 million in Q1 2025.
• Legacy investment securities are being actively sold or allowed to mature.

Finance: draft a divestiture analysis for the agricultural loan portfolio segment by next Wednesday.

Plumas Bancorp (PLBC) - BCG Matrix: Question Marks

You're looking at the business units or product lines within Plumas Bancorp that fit the Question Mark quadrant-high potential growth markets but currently holding a low market share, meaning they consume cash now but could become Stars later. For Plumas Bancorp as of late 2025, these areas are heavily influenced by the recent, large-scale integration of Cornerstone Community Bancorp.

The immediate profitability picture for the newly acquired Cornerstone portfolio is obscured by significant, one-time charges. Specifically, the provision for credit losses surged to $5.37 million in the third quarter of 2025, a figure driven in part by the CECL day-1 assessment on non-purchased credit-impaired loans acquired from Cornerstone. This immediate drag on earnings makes it hard to see the underlying performance of the acquired assets.

Operating expenses reflect the cost of this expansion. Non-interest expense rose by $6.0 million across the first nine months of 2025. This increase includes $1.9 million recognized as merger-related costs associated with the Cornerstone integration. Still, the underlying asset base has grown substantially, with total assets reaching $2.23 billion as of September 30, 2025, up significantly due to the acquisition.

The Net Interest Margin (NIM) is a key indicator of asset/liability management success, holding steady at 4.83% in Q3 2025. The challenge here is sustainability. You need to monitor the cost of interest-bearing deposits, which is climbing as Plumas Bancorp attracts public entity funds requiring competitive rates. The ability to maintain that 4.83% NIM while funding costs rise is critical for this segment to transition from a cash consumer to a cash generator.

The long-term success hinges on cross-selling fee-based services to the newly expanded customer base. This represents a high-growth opportunity, but market share is currently unproven. For the first nine months of 2025, total non-interest income was reported at $7.8 million. The growth trajectory of this fee income, relative to the expanded asset base, will determine if this segment warrants heavy investment to capture market share or if it risks becoming a Dog.

Here's a quick look at the scale of the acquisition that defines these Question Marks:

The strategy for these Question Marks revolves around decisive action:

• Invest heavily to rapidly gain market share in the new geographic areas and service lines.
• Monitor the accretion of earnings from the Cornerstone integration to see if the underlying profitability justifies continued cash burn.
• Evaluate the cost of funds trajectory against the sustained NIM of 4.83%.
• Assess the market adoption rate of cross-sold fee-based services versus the cost of marketing them.

If onboarding takes 14+ days, churn risk rises, which would negatively impact the potential for these new assets to mature into Stars.

Finance: draft 13-week cash view by Friday.