Plumas Bancorp (PLBC): Business Model Canvas [Dec-2025 Updated]

You're looking at a community bank that just made a big move, and honestly, the numbers from Q3 2025 tell a classic story of growth pains mixed with solid fundamentals. Plumas Bancorp is integrating the Cornerstone acquisition while trying to keep that personalized service that locks in low-cost deposits, but you can see the cost in the $5.37 million provision for credit losses that quarter. Still, the underlying engine is humming, delivering $25.2 million in Net Interest Income on assets nearing $2.3 billion, all while maintaining a strong 4.83% Net Interest Margin. If you want to see exactly how this scaled-up community player balances high-touch relationships with the hard math of M&A integration, dive into the full Business Model Canvas below.

Plumas Bancorp (PLBC) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships Plumas Bancorp (PLBC) relies on to execute its business strategy as of late 2025, especially following the Cornerstone Community Bancorp acquisition. These partnerships provide essential funding access, regulatory advantages, and operational scale.

The Federal Home Loan Bank (FHLB) relationship is a key liquidity backstop, though Plumas Bancorp actively managed down its reliance on it post-acquisition. For instance, by the third quarter of 2025, Plumas Bancorp had paid off a $15 million FHLB borrowing as part of its balance sheet repositioning following the Cornerstone integration. At the end of Q2 2025, the FHLB borrowing line was available, alongside an estimated borrowing capacity of up to $98 million at the Federal Reserve Bank (FRB) Discount Window, secured by $101 million in investment securities.

As a U.S. Small Business Administration (SBA) Preferred Lender, Plumas Bank leverages this status for high-quality loan origination. The SBA program is a significant part of their loan book; as of September 30, 2025, government-guaranteed loans, which include SBA 7(a) and 504 programs, totaled $111 million, representing approximately 7% of the total loan portfolio. Since 2007, the team has facilitated nearly $1 billion in SBA 7(a) loans. The fixed-rate SBA loan portfolio specifically grew to $74 million by March 31, 2025, up from $47 million the prior year.

The integration of Cornerstone Community Bancorp, which closed in July 2025, is a major strategic partnership that has immediately scaled the balance sheet. The combined entity now manages roughly $2.3 billion in assets, with total loans around $1.5 billion and deposits near $1.9 billion as of September 30, 2025. This transaction was projected to be accretive to earnings per share by 9% in 2025 and 23% in 2026, despite an initial tangible book value per share dilution of roughly 13% at closing. Integration actions included paying off $38.5 million in brokered Certificates of Deposit (CDs) and transferring over $60 million in reciprocal deposits to repurchase agreements to lower funding costs. Cornerstone shareholders now hold about 14% of Plumas Bancorp's outstanding common stock.

Correspondent banks serve multiple roles, including providing unsecured borrowing capacity and holding stock investments. At the end of Q1 2025, Plumas Bancorp had unsecured short-term borrowing agreements with two correspondent banks totaling $50 million and $20 million. In Q2 2025, an adjustment to the value of stock holdings in one correspondent bank positively impacted non-interest income by $184 thousand. By September 30, 2025, Plumas Bancorp reported an outstanding borrowing of $15 million with one correspondent bank.

Here's a snapshot of the key financial metrics tied to these external relationships as of late 2025:

The retention of most Cornerstone employees post-merger, including Matthew Moseley as Executive Vice President/Market President, is a key non-financial partnership element ensuring continuity for customers in the Redding, Anderson, and Red Bluff markets.

• Plumas Bank operates 19 branch locations across Northern California and Northwestern Nevada following the merger.
• Cornerstone Community Bancorp shareholders now hold approximately 14% of Plumas Bancorp's outstanding common stock.
• The merger was expected to be complete by early July 2025.

Plumas Bancorp (PLBC) - Canvas Business Model: Key Activities

You're looking at the core engine driving Plumas Bancorp's performance as of late 2025, which is heavily influenced by the recent, significant integration of Cornerstone Community Bancorp. These activities are what keep the lights on and, more importantly, what drive the bottom line.

Commercial and Retail Loan Origination and Servicing

The bread and butter activity here is growing and managing the loan book. Following the July 1, 2025, closing of the Cornerstone acquisition, the combined loan portfolio saw a massive step-up. On a pro forma basis as of March 31, 2025, total loans reached approximately $1.5 billion. This represents a 49% increase over Plumas Bancorp's prior standalone loan balance. For the third quarter of 2025, the activity of servicing these loans translated to net interest income rising 33% year-over-year, with interest and fees on loans specifically increasing by $9.0 million, largely due to the increased average loan balance. Still, you need to watch asset quality; the Non-Performing Loan (NPL) ratio ticked up to 1.00% in Q3 2025.

Here's a quick look at the scale change from the Cornerstone merger:

Core Deposit Gathering, Maintaining Low-Cost Funding

Securing stable, low-cost funding is critical, especially when managing a larger balance sheet. Total deposits for the combined entity stand at roughly $1.9 billion on a pro forma basis as of March 31, 2025. To give you context on the growth trajectory, Plumas Bancorp's total deposits were $1.4 billion as of Q2 2025, marking a 5% increase year-over-year for that period. A key activity in Q3 2025 was actively managing the cost of these funds, which saw the average rate paid on interest-bearing deposits rise to 1.35% for the nine months ended September 30, 2025, up from 0.85% in the prior year period. Honestly, managing that cost of funds is what helps protect the margin.

Strategic M&A Integration, like the Cornerstone acquisition

The integration of Cornerstone Community Bancorp, which closed on July 1, 2025, is a massive ongoing key activity. The transaction value was approximately $61.3 million based on the June 30, 2025, closing share price. This activity involved integrating four new branches in Anderson, Red Bluff, and Redding, California, bringing the total branch network to 19 locations across Northern California and Western Nevada. Management reported a streamlined conversion in July with the retention of most employees. The strategic goal is clear: the acquisition is projected to be accretive to earnings per share by around 9% in 2025 and 23% in 2026. That's the value you're working to realize.

Active Balance Sheet Management to Sustain a 4.83% Net Interest Margin (Q3 2025)

Sustaining profitability means actively managing the assets and liabilities you hold. Plumas Bancorp managed to hold its Net Interest Margin (NIM) steady at 4.83% for the three months ended September 30, 2025. This was a direct result of integration actions taken to shed higher-cost liabilities. Specifically, the bank paid off $38.5 million in brokered CDs and a $15 million Federal Home Loan Bank (FHLB) borrowing, and transferred over $60 million of third-party reciprocal deposits to their on-balance sheet repurchase agreement product. Looking ahead, another planned action is the redemption of $10 million in 2030 subordinated notes scheduled for December 30, 2025, which should further reduce interest expense.

The impact on profitability ratios shows the immediate effect of the merger costs:

• Annualized Return on Average Assets (Q3 2025): 0.90%
• Annualized Return on Average Equity (Q3 2025): 8.5%
• GAAP EPS (Q3 2025): $0.73

Regulatory Compliance and Risk Management

This is the necessary overhead that protects the institution. A major component of risk management in Q3 2025 was the surge in the provision for credit losses, which hit $5.37 million for the quarter, up from a recovery of $(0.40) million in Q3 2024. The Allowance for Credit Losses (ACL) coverage ratio stood at 1.30% as of the end of Q3 2025. You need to keep an eye on uninsured deposits, which rose to approximately $718 million post-acquisition, though management notes the majority is collateralized for public entities. Finance: draft the 13-week cash view by Friday to monitor liquidity against these risk provisions.

Plumas Bancorp (PLBC) - Canvas Business Model: Key Resources

You're looking at the core assets Plumas Bancorp (PLBC) is relying on as of late 2025, especially after integrating Cornerstone Community Bank. These aren't just line items; they are the tangible and human capital supporting the business model right now.

The balance sheet strength is notable following the July 1, 2025 acquisition. Plumas Bancorp reports a strong asset base, expanding to approximately $2.3 billion in combined assets as of August 2025, up from $1.6 billion at the end of 2024. This growth in scale is a key resource for lending capacity and market presence.

The funding structure relies on a stable base of customer deposits, which totaled $1.82 billion as of Q3 2025. A specific metric indicating the stickiness of this base is the average deposit balance, which stood at approximately $38 thousand at September 30, 2025. This suggests a reliance on a broad base of smaller, likely relationship-driven accounts, which management views as stable.

Human capital is clearly prioritized, especially post-merger. Plumas Bancorp is deploying 250 team members across its expanded footprint. Management has emphasized the retention of most employees from the Cornerstone integration, signaling a commitment to preserving institutional knowledge.

Physical infrastructure supports the community bank model. The network includes 19 full-service branch offices, primarily serving Northeastern California and Northern Nevada, with operations extending into a third state via loan production offices in Oregon. This physical presence is crucial for maintaining the high-touch service reputation, especially for the SBA lending program.

The leadership team brings deep, specific expertise, which is a vital resource for specialized lending. For instance, Rodney Borges has managed and directed the SBA program for nearly 20 years. Furthermore, recent additions to the SBA team, Jason Hutsenpiller and Lindsay Waylett, each bring over two decades of SBA lending leadership experience.

Here's a quick snapshot of the quantifiable physical and human resources as of late 2025:

The bank's ability to execute on its strategy is also tied to its specialized lending capabilities, which are supported by its Preferred Lender status with the U.S. Small Business Administration. This status itself acts as an intangible resource, streamlining access to capital for clients.

The composition of the team and its specialized skills can be broken down by function, though specific 2025 headcount by function isn't fully detailed, the focus areas are clear:

• SBA Lending Team Experience: Over two decades for key personnel.
• Branch Footprint: Serving Northern California, Nevada, and Oregon.
• Core Deposit Base: Stable, with an average balance of $38 thousand.
• Post-Acquisition Scale: Loans at $1.50B and Deposits at $1.82B (Q3 2025).

Plumas Bancorp (PLBC) - Canvas Business Model: Value Propositions

You're looking at the core reasons clients choose Plumas Bancorp over the big national players. It boils down to service quality and institutional strength, especially after that big 2025 acquisition.

Personalized, high-touch community banking service.

Plumas Bancorp's client-first philosophy translates to personalized solutions and high-touch engagement. This approach is designed to reinforce client loyalty and long-term portfolio stability. The bank operates fifteen branches across California counties like Butte, Plumas, and Shasta, plus two in Nevada, and two loan production offices in California and Oregon. This physical footprint supports the community focus. The CEO mentioned this deliberate, steady approach has guided Plumas Bank for over four decades.

Full-suite of commercial, agricultural, and retail financial products.

The bank offers a wide range of financial and investment services to both consumers and businesses. Following the 2025 acquisition of Cornerstone Community Bank, the combined entity has a significantly broader reach and offering. The bank also holds nationwide Preferred Lender status with the U.S. Small Business Administration, which speaks directly to its commercial and small business product capability.

Local decision-making and quick response times on lending.

The merger with Cornerstone was specifically noted for uniting Cornerstone's local expertise with Plumas Bank's technology. This integration is meant to enhance services available to communities, suggesting that local knowledge still drives lending decisions, which typically means quicker turnaround times than a distant corporate office. The combined loan portfolio size reflects this expanded lending capacity.

Here's a look at the scale of the combined balance sheet as of March 31, 2025, on a pro forma basis, which shows the capacity behind the service:

Financial stability and a well-capitalized institution status.

You want to know the institution is solid, and the regulatory ratios from Q3 2025 certainly paint that picture. Plumas Bancorp emphasizes disciplined governance as a foundation for sustainable growth. The bank has a proven record of profitability, even with the integration costs from the 2025 acquisition. The latest reported capital strength metrics confirm it's well-capitalized.

For instance, look at the Tier 1 Leverage Ratio and the Common Equity Tier 1 Ratio as of the end of the third quarter of 2025:

• Tier 1 Leverage Ratio: 12.7%
• Common Equity Tier 1 Ratio: 17.9%
• Total Risk-Based Capital Ratio: 19.2%
• Book value per common share (Q2 2025): $32.54
• Tangible common equity to total assets (Q3 2025): 11.5%

The bank also declared a steady quarterly cash dividend of $0.30 per share for the November 17, 2025 payment date, showing confidence in ongoing returns for income investors.

Plumas Bancorp (PLBC) - Canvas Business Model: Customer Relationships

Plumas Bancorp (PLBC) maintains a relationship-based model centered on personalized service, which supports its operations across Northern California, Nevada, and Oregon. The bank's strategy is explicitly built on a clear focus on client success. This approach is designed to reinforce client loyalty and long-term portfolio stability. The bank's combined assets reached $2.3 billion as of August 2025.

The customer relationship strategy is characterized by high-touch engagement and personalized solutions, a core element of the bank's client-first philosophy. This is the foundation upon which Plumas Bancorp seeks to build sustainable growth following the July 1, 2025, completion of the acquisition of Cornerstone Community Bank.

Plumas Bancorp supports its relationship model with digital self-service options, recognizing the broader industry shift. While the bank emphasizes personal interaction, its Senior Vice President of Digital Banking oversees technological advancements. Industry data for 2025 suggests that a significant majority of consumers, specifically 77 percent, prefer to manage their bank accounts through a mobile app or a computer.

The bank actively engages its communities, which directly supports its relationship-building efforts. This commitment is demonstrated through tangible actions and volunteerism. Key elements of this engagement include:

• Employees volunteer hundreds of hours annually.
• Advancing financial literacy for thousands of community members.
• Donating $30,000 in January 2025 to support financial literacy initiatives across its communities.
• Focusing on providing critical financial literacy assistance to small businesses.

The bank's strategy is to maintain high-touch engagement while integrating technology, as evidenced by the focus on client advocacy and the continued investment in its workforce, including specialized roles like the SVP of Digital Banking.

Plumas Bancorp (PLBC) - Canvas Business Model: Channels

You're looking at how Plumas Bancorp physically and digitally connects with its customers to deliver its value proposition. For a community bank, the physical footprint is still key, but the digital layer is what allows for regional reach beyond the immediate town center. Here's the breakdown of their current channel strategy as of late 2025.

The core of Plumas Bancorp's physical channel strategy is its network of full-service branches, which serve as the primary high-touch interaction points. As of the latest reports in 2025, the bank operates 15 full-service branch offices. This physical network spans two states, with the majority concentrated in Northern California and two locations in Nevada.

The geographic distribution of these physical touchpoints is critical to maintaining that community bank feel while supporting a balance sheet of approximately $2.3 billion in assets as of late 2025. The branch network is supported by targeted geographic reach extensions:

• - 15 full-service branch offices (Thirteen in California counties like Plumas, Lassen, Placer, Nevada, Modoc, and Shasta, and two in Nevada counties Carson City and Washoe).
• - Two Loan Production Offices (LPOs) strategically placed in Auburn, California, and Klamath Falls, Oregon, to capture loan origination outside the immediate branch footprint.

To serve customers who prefer not to visit a physical location, Plumas Bancorp relies on its digital channels, which enhance access and convenience across its operating region spanning Northern California, Nevada, and Oregon. These digital tools are essential for supporting the $1.4 billion in total deposits held as of mid-2025.

The digital channel suite includes platforms that allow for transaction processing and account management away from the teller line. You'll find these capabilities are standard for a modern community bank:

• - Online and mobile banking platforms for digital access to accounts.
• - Electronic fund transfers.
• - Remote deposit capture services.

To give you a clearer picture of how the physical and digital channels combine to serve the customer base, consider this overview based on the reported structure and scale:

The bank also supports transactions through its ATM network, which is a necessary component for 24/7 cash access, though specific ATM counts aren't detailed in the latest earnings summaries. The strategy is clearly a hybrid one: maintaining a strong, localized physical presence while using digital tools to extend service capability, especially for loan origination via the LPOs in Oregon and California.

Finance: draft 13-week cash view by Friday.

Plumas Bancorp (PLBC) - Canvas Business Model: Customer Segments

Small-to-medium businesses (SMBs) and commercial clients.

• The largest loan segment is Commercial Real Estate ("CRE"), which comprised 66.1% of total loans at the end of June 2025.
• Government guaranteed loan balances represented approximately 7% of total loans as of 09/30/25.
• The bank provides business checking and savings accounts, commercial real estate loans, and treasury management services for business clients.

The loan book received a boost in 3Q'25 from the Cornerstone Community Bancorp acquisition, increasing the portfolio by almost 50%.

Agricultural businesses and related financing needs.

• Agricultural financing is a core offering for business clients.
• Agricultural loans saw a decrease of $11 million in the year ending March 31, 2025.

Local consumers and families in rural/semi-rural markets.

Plumas Bancorp focuses on delivering personalized financial solutions to individuals and families in Northern California's rural and semi-rural markets. The average deposit balance was approximately $35 thousand at 03/31/25 and $38 thousand at 09/30/25.

Public entities and municipalities for high-rate deposits.

The bank attracts deposits from public entities, which contribute to its funding base.

• $206 million of uninsured deposits as of June 30, 2025, represented collateralized deposits such as those from states, municipalities, and tribal accounts.
• An increase in money market accounts was attributed to higher rate public entity deposits.

Brokered deposits acquired in the 3Q'25 transaction totaled $10 million at September 30, 2025.

Finance: draft the next section's data requirements by Monday.

Plumas Bancorp (PLBC) - Canvas Business Model: Cost Structure

The Cost Structure for Plumas Bancorp (PLBC) in late 2025 is heavily influenced by the recent integration of Cornerstone Community Bancorp and the current interest rate environment.

Non-interest expense for the third quarter of 2025 totaled $15.1 million. This represented a year-over-year increase of 40%.

The Provision for credit losses saw a significant surge, reaching $5.37 million in Q3 2025, which was driven by the CECL (Current Expected Credit Losses) day-one accounting on non-purchased credit-impaired loans from the Cornerstone acquisition, alongside weakness in agricultural credit.

The cost base reflects the operational scale following the July 1, 2025, closing of the Cornerstone merger. The combined entity operates with 250 team members across its expanded footprint.

Regarding interest expense on deposits and borrowings, Plumas Bancorp executed specific balance sheet repositioning actions post-acquisition to manage funding costs. Management noted actions included paying off $38.5 million in brokered Certificates of Deposit (CDs) and $15 million in Federal Home Loan Bank (FHLB) borrowing, along with transferring approximately $60 million in reciprocal deposits to repo. Management expects the cost of funds to decrease slightly following these actions and a September 2025 Federal Reserve cut.

Merger-related and integration costs from the Cornerstone deal were embedded within the non-interest expense. For Q3 2025, these costs totaled $0.88 million. Costs associated with the acquisition were also noted in Q2 2025, totaling $481 thousand ($0.481 million).

Here's a breakdown of key cost components as reported for Q3 2025:

The increase in non-interest expense year-over-year was detailed by component:

• Higher salaries and benefits: an increase of $1.94 million year-over-year.
• Merger costs: $0.88 million.
• Occupancy costs were higher.
• Outside services expenses increased.
• CDI amortization was included.

The total employee base supporting these costs is 250. To be fair, separating the exact run-rate for salaries, benefits, and occupancy from the total non-interest expense of $15.1 million without the full 10-Q filing is tricky. Finance: draft 13-week cash view by Friday.

Plumas Bancorp (PLBC) - Canvas Business Model: Revenue Streams

You're looking at the core ways Plumas Bancorp brings in money, which, for a community bank like this, is heavily weighted toward lending activities. The primary driver is the spread between what they earn on loans and what they pay on deposits, which is the Net Interest Income (NII).

For the third quarter of 2025, the Net Interest Income (NII) was reported at \$25.2 million. This figure reflects the benefit of the Cornerstone Community Bank acquisition, which added scale, and management actions to reduce higher-cost liabilities, helping the Net Interest Margin (NIM) hold steady at 4.83% for Q3 2025. The total revenue for Q3 2025 was \$27.42 million, meaning non-interest income made up the difference.

The remaining revenue comes from non-interest income, which includes various fees for services rendered. While the specific breakdown for Q3 2025 is not fully itemized in the latest reports, we know the components that make up this stream, and we can reference the most recent detailed figures available to map out the structure.

Here is a look at the structure of Plumas Bancorp's revenue streams, using the latest confirmed Q3 2025 aggregate numbers and the most recent specific component data available to illustrate the mix:

The components that feed into the non-interest income bucket show a few key trends you should watch. For instance, the bank noted that the Gain on sale of SBA loans declined because they shifted production toward fixed-rate loans that they kept on the balance sheet rather than selling, which is a strategic choice affecting fee income. Also, the Q3 2025 results mentioned a drag on non-interest income from a 'loss on CCB portfolio disposition,' which is a one-time item related to the acquisition.

You can expect the recurring non-interest income to be driven by these core banking activities:

• Interchange revenue, which fluctuates based on debit card transaction volume.
• Service charges on deposit accounts from checking and savings products.
• Loan servicing fees, though these have shown a slight decline historically.
• The gain on sale of SBA 7a loans, which is more variable based on market conditions and origination strategy.

To be fair, the NII is the engine here, especially post-acquisition, but monitoring the fee income components gives you a read on the underlying transactional activity and the success of their loan sales strategy. Finance: draft 13-week cash view by Friday.