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What changed in PLUMAS BANCORP's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of PLUMAS BANCORP's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+323 added−294 removedSource: 10-K (2026-03-19) vs 10-K (2025-03-19)

Top changes in PLUMAS BANCORP's 2025 10-K

323 paragraphs added · 294 removed · 211 edited across 5 sections

Item 1. Business

Business — how the company describes what it does

52 edited+10 added−4 removed91 unchanged
Biggest changeTo meet the needs of customers who prefer to bank electronically, we offer telephone banking, mobile banking, remote deposit, mobile deposit, and internet banking with bill payment capabilities. This high tech and high touch approach allows customers to tailor their access to our services based on their particular preferences. Employees. At December 31, 2024, we employed 197 persons.
Biggest changeThis approach appears to be well-received by our customers who appreciate a more personal and customer-oriented environment in which to conduct their financial transactions. To meet the needs of customers who prefer to bank electronically, we offer telephone banking, mobile banking, remote deposit, mobile deposit, and internet banking with bill payment capabilities.
In addition to our lending activities, we offer a wide range of deposit products for the commercial and retail banking markets including checking, money market checking, business sweep, public funds sweep, savings, time deposit and retirement accounts, as well as remote deposit, telephone and mobile banking, including mobile deposit and internet banking with bill-pay options.
Deposit Products In addition to our lending activities, we offer a wide range of deposit products for the commercial and retail banking markets including checking, money market checking, business sweep, public funds sweep, savings, time deposit and retirement accounts, as well as remote deposit, telephone and mobile banking, including mobile deposit and internet banking with bill-pay options.
Banking regulators expect banks with concentrations of commercial real estate loans to maintain appropriate underwriting discipline, risk-management and capital commensurate with the level and nature of their commercial real estate risks. Federal Deposit Insurance . The FDIC insures the Bank’s deposits, up to prescribed statutory limits, through the Deposit Insurance Fund, currently $250,000 per depositor per institution.
Banking regulators expect banks with concentrations of commercial real estate loans to maintain appropriate underwriting discipline, risk-management and capital commensurate with the level and nature of their commercial real estate risks. Federal Deposit Insurance . The FDIC insures the Bank’s deposits, up to prescribed statutory limits, through the Deposit Insurance Fund, currently up to $250,000 per depositor per institution.
The California General Corporation Law permits a California corporation such as the Company to make a distribution to its shareholders if its retained earnings equal at least the amount of the proposed distribution or if after giving effect to the distribution, the value of the corporation’s assets exceeds the amount of its liabilities plus the amount of shareholders preferences, if any, and certain other conditions are met.
The California General Corporation Law permits a California corporation such as the Company to make a distribution to its shareholders' if its retained earnings equal at least the amount of the proposed distribution or if after giving effect to the distribution, the value of the corporation’s assets exceeds the amount of its liabilities plus the amount of shareholders preferences, if any, and certain other conditions are met.
Commitment to our Communities. The Board of Directors and management believe that the Company plays an important role in the economic well-being of the communities we serve. Our Bank has a continuing responsibility to provide a wide range of lending and deposit services to both individuals and businesses.
The Board of Directors and management believe that the Company plays an important role in the economic well-being of the communities we serve. Our Bank has a continuing responsibility to provide a wide range of lending and deposit services to both individuals and businesses.
Moreover, the business activities of the Company currently are focused in the California counties of Butte, Lassen, Modoc, Nevada, Placer, Plumas, Shasta and Sutter and in Washoe and Carson City Counties in Northern Nevada.
Moreover, the business activities of the Company currently are focused in the California counties of Butte, Lassen, Modoc, Nevada, Placer, Plumas, Shasta Sutter, and Tehama and in Washoe and Carson City Counties in Northern Nevada.
The Agricultural Credit Centers located in Alturas, Chico, and Yuba City, California and Klamath Falls, Oregon provide an array of credit services supporting the agricultural activities that are key to the continued economic development of these communities. “Ag lending” clients include a full range of individual farming customers, small to medium-sized business farming organizations and corporate farming units.
The Agricultural Credit Centers located in Alturas, Chico, Red Bluff, and Yuba City, California and Klamath Falls, Oregon provide an array of credit services supporting the agricultural activities that are key to the continued economic development of these communities. “Ag lending” clients include a full range of individual farming customers, small to medium-sized business farming organizations and corporate farming units.
However, we believe this broad deposit base makes us less vulnerable to adverse effects from the loss of depositors who may be seeking higher yields in other markets or who may otherwise draw down balances for cash needs. We also offer a variety of other products and services complementing our lending and deposit services.
We believe this broad and diverse deposit base makes us less vulnerable to adverse effects from the loss of depositors who may be seeking higher yields in other markets or who may otherwise draw down balances for cash needs. We also offer a variety of other products and services complementing our lending and deposit services.
In December 2015 the Bank opened a branch in Reno, Nevada, its first branch outside of California, and in 2018 the Bank purchased a branch located in Carson City, Nevada. The Bank maintains nineteen automated teller machines (“ATMs”) tied in with major statewide and national networks.
In December 2015 the Bank opened a branch in Reno, Nevada, its first branch outside of California, and in 2018 the Bank purchased a branch located in Carson City, Nevada. The Bank maintains 23 automated teller machines (“ATMs”) tied in with major statewide and national networks.
As of December 31, 2024, the maximum amount available for dividend distribution under this restriction was approximately $58 million. In addition, the Bank is subject to the Basel III capital rules and the capital conservation buffer discussed above. The foregoing restrictions and limitations on dividends similarly restrict the Company’s ability to repurchase shares of its common stock. Loans-to-One Borrower.
As of December 31, 2025, the maximum amount available for dividend distribution under this restriction was approximately $46 million. In addition, the Bank is subject to the Basel III capital rules and the capital conservation buffer discussed above. The foregoing restrictions and limitations on dividends similarly restrict the Company’s ability to repurchase shares of its common stock. Loans-to-One Borrower.
At December 31, 2024, the Company’s and the Bank’s capital ratios exceed the thresholds necessary to be considered “well capitalized” under the Basel III framework.
At December 31, 2025, the Company’s and the Bank’s capital ratios exceed the thresholds necessary to be considered “well capitalized” under the Basel III framework.
The Deposit Insurance Fund is funded primarily by FDIC assessments paid by the insured depository institution. The amount of FDIC assessments paid by a depository institution is based on its relative risk of default as measured by regulatory capital ratios and other supervisory factors. The Bank’s FDIC insurance expense totaled $750 thousand for 2024.
The Deposit Insurance Fund is funded primarily by FDIC assessments paid by the insured depository institution. The amount of FDIC assessments paid by a depository institution is based on its relative risk of default as measured by regulatory capital ratios and other supervisory factors. The Bank’s FDIC insurance expense totaled $871 thousand for 2025.
Once demand for variable rate SBA 7(a) loans returns to an acceptable level, we will likely move most of our production efforts back to this product.
Once demand for variable rate SBA 7(a) loans returns to an acceptable level, we plan to move most of our production efforts back to this product.
We strive to tailor these services to meet the needs of the communities served by the Company and the Bank. 3 Table of Contents We offer various loan products which encourage job growth and support community economic development. Types of loans offered range from personal and commercial loans to real estate, construction, agricultural, and government-guaranteed loans.
We strive to tailor these services to meet the needs of the communities we serve. 3 Table of Contents We offer various loan products which encourage job growth and support community economic development. Types of loans offered range from personal and commercial loans to real estate, construction, agricultural, and government-guaranteed loans.
In addition, competitive conditions have intensified as banks have increasingly affiliated with securities firms, insurance companies, and other financial companies. 4 Table of Contents As of June 30, 2024, within towns in which the Bank had a branch as of this same date there were 137 banking branch offices of competing institutions (excluding credit unions, but including savings banks), including 105 branches of 15 banks having assets more than $10 billion.
In addition, competitive conditions have intensified as banks have increasingly affiliated with securities firms, insurance companies, and other financial companies. 4 Table of Contents As of June 30, 2025, within towns in which the Bank had a branch as of this same date there were 131 banking branch offices of competing institutions (excluding credit unions, but including savings banks), including 100 branches of 14 banks having assets more than $10 billion.
As of December 31, 2024, the principal areas to which we have directed our lending activities, and the percentage of our total loan portfolio comprised by each, were as follows: (i) commercial real estate – 63.7%; agricultural loans (including agricultural real estate loans) – 11.7%, (iii) consumer loans (including residential equity lines of credit and automobile loans) – 10.6%, (iv); commercial and industrial loans – 7.6%; (v) construction and land development – 5.3%; and (vi) residential real estate – 1.1% .
As of December 31, 2025, the principal areas to which we have directed our lending activities, and the percentage of our total loan portfolio comprised by each, were as follows: (i) commercial real estate – 66.3%; (ii) commercial and industrial loans – 11.1%, (iii) agricultural loans (including agricultural real estate loans) – 10.4%, (iv) consumer loans (including residential equity lines of credit and automobile loans) – 7.3%; (v) construction and land development – 2.7%; and (vi) residential real estate – 2.2% .
Under California law, the Bank’s ability to make aggregate secured and unsecured loans-to-one-borrower is limited to 25% and 15%, respectively, of unimpaired capital and surplus. At December 31, 2024, the Bank’s limit on aggregate secured loans-to-one-borrower was $48 million and unsecured loans-to-one borrower was $29 million.
Under California law, the Bank’s ability to make aggregate secured and unsecured loans-to-one-borrower is limited to 25% and 15%, respectively, of unimpaired capital and surplus. At December 31, 2025, the Bank’s limit on aggregate secured loans-to-one-borrower was $67 million and unsecured loans-to-one borrower was $40 million.
Interest bearing deposits include higher yielding sweep accounts designed for our commercial customers and for public entities such as municipalities. As of December 31, 2024, the Bank ha d 38,188 d eposit accounts with balances totaling approximately $1.4 billion, compared to 39,619 deposit accounts with balances totaling approximately $1.3 billion at December 31, 2023.
Interest bearing deposits include higher yielding sweep accounts designed for our commercial customers and for public entities such as municipalities. As of December 31, 2025, the Bank ha d 47,667 d eposit accounts with balances totaling approximately $1.8 billion, compared to 38,188 deposit accounts with balances totaling approximately $1.4 billion at December 31, 2024.
This mix of deposit customers resulted in a relatively modest average deposit balance of approxi mately $36 thou sand at December 31, 2024.
This mix of deposit customers resulted in a relatively modest average deposit balance of approxi mately $38 thou sand at December 31, 2025.
In addition to its branch network, the Bank operates a lending office specializing in government-guaranteed lending in Auburn, California with additional lenders in Utah and Southern California and commercial/agricultural lending offices located in Chico, California and Klamath Falls, Oregon. The Bank’s primary business is servicing the banking needs of these communities.
In addition to its branch network, the Bank operates a lending office specializing in government-guaranteed lending in Auburn, California with an additional lending officer in Southern California, a lending officer in Chandler, Arizona and a commercial/agricultural lending office located in Klamath Falls, Oregon. The Bank’s primary business is servicing the banking needs of these communities.
During 2022 Plumas Bank upgraded and replaced our fleet of ATM machines, enhanced incoming wire notifications and developed electronic tracking and monitoring for ACH origination and Remote Deposit Capture services and implemented the ability for our commercial online banking clients to originate one-time ACH payments.
We devote a substantial amount of time and capital to the improvement of existing bank services. During 2022 we upgraded and replaced our fleet of ATM machines, enhanced incoming wire notifications and developed electronic tracking and monitoring for ACH origination and Remote Deposit Capture services and implemented the ability for our commercial online banking clients to originate one-time ACH payments.
Code of Ethics. Our Board of Directors has adopted a code of business conduct and ethics for directors, officers (including the Company’s principal executive officer and principal financial officer) and financial personnel, known as the Corporate Governance Code of Ethics. This policy is available on our website at www.plumasbank.com.
Our Board of Directors has adopted a code of business conduct and ethics for directors, officers (including the Company’s principal executive officer and principal financial officer) and financial personnel, known as the Corporate Governance Code of Ethics. This policy is available on our website at www.plumasbank.com. Shareholders may request a free copy of this policy from Plumas Bancorp, Ms.
As of June 30, 2024, the FDIC estimated the Bank’s market share of deposits within the communities it serves to be as follows: Greenville and Portola 100%, Quincy 78%, Alturas 67%, Susanville 57%, Kings Beach 51%, Chester 49%, Fall River Mills 37%, Tahoe City 30%, Truckee 18%, Yuba City 3%, Carson City 3%, Redding 2% and Reno and Chico less than 1%.
As of June 30, 2025, the FDIC estimated the Bank’s market share of deposits within the communities it serves to be as follows: Greenville, Quincy and Portola 100%, Alturas 67%, Susanville 59%, Kings Beach 52%, Chester 44%, Fall River Mills 38%, Tahoe City 32%, Truckee 18%, Yuba City 3%, Carson City 3%, Redding 2% and Reno and Chico less than 1%.
At December 31, 2024 fixed rate SBA 7(a) loans totaling $70 million with guaranteed portions totaling $52 million were included in our commercial and commercial real estate loan portfolio. The weighted rate of these loans was 8.3%.
At December 31, 2025 fixed rate SBA 7(a) loans totaling $104 million with guaranteed portions totaling $78 million were included in our commercial and commercial real estate loan portfolio. The weighted rate of these loans was 8.0%.
On a full-time equivalent basis, we employed 183 persons. While we expect to hire additional employees as we grow or as a result of attrition, we believe our human capital resources are adequate to support our current business. None of our employees are represented by a labor union, and management considers its relations with employees to be good.
None of our employees are represented by a labor union, and management considers its employee relations to be good. While we expect to hire additional employees as we grow or as a result of attrition, we believe our human capital resources are adequate to support our current business.
References to “Management” refer to the members of the Company’s management and references to the “Board of Directors” or the “Board” refer to the Company’s Board of Directors. General The Company . Plumas Bancorp is a bank holding company headquartered in Reno, Nevada. Substantially all of the Company's operations are conducted through its subsidiary, Plumas Bank.
References to “Management” refer to the members of the Company’s management and references to the “Board of Directors” or the “Board” refer to the Company’s Board of Directors. General The Company . Plumas Bancorp is a bank holding company headquartered in Reno, Nevada.
At December 31, 2024, the Bank had $1.4 million in stock of the Federal Reserve Bank of San Francisco in compliance with this requirement. Capital Adequacy.
At December 31, 2025, the Bank had $3.6 million in stock of the Federal Reserve Bank of San Francisco in compliance with this requirement. Capital Adequacy.
On July 1, 2021, we completed the acquisition of Feather River Bancorp and its subsidiary, Bank of Feather River, which merged with and into the Bank the same day.
On July 1, 2025, we completed the acquisition of Cornerstone Community Bancorp and its subsidiary, Cornerstone Community Bank, which merged with and into the Bank the same day.
However, at December 31, 2024, approximately 77% of the Bank's total loan portfolio consisted of real estate-secured loans, including real estate mortgage loans, real estate construction loans, consumer equity lines of credit, and agricultural loans secured by real estate.
However, at December 31, 2025, approximately 82% of the Bank's total loan portfolio consisted of real estate-secured loans, including real estate mortgage loans, real estate construction loans, consumer equity lines of credit, and agricultural loans secured by real estate. Approximately 66% of our loans were commercial real estate loans as of December 31, 2025.
The SBA 7(a) loan product in which the guaranteed portion is salable in the secondary market is variable rate tied to prime and we have seen a significant decline in interest in this product during the last two years. However, we have successfully pivoted to producing fixed rate SBA 7(a) loans. We portfolio the entire fixed rate SBA 7(a) loan.
We offer a SBA 7(a) loan product with a variable interest rate in which the guaranteed portion is salable in the secondary market, but we have seen a significant decline in interest in this product during the last several years. However, we have successfully pivoted to producing fixed rate SBA 7(a) loans, which we generally hold in our loan portfolio.
These laws and regulations are generally intended to protect our customers and the financial system and not our shareholders. Our operations may be affected by legislative changes and by the policies of various regulatory authorities. Any change in applicable laws or regulations may have a material effect on our business and prospects.
Our operations may be affected by legislative changes and by the policies of various regulatory authorities. Any change in applicable laws or regulations may have a material effect on our business and prospects.
The Bank is a California state-chartered bank that was incorporated and commenced business in 1980. The Bank’s deposit accounts are insured by the Federal Deposit Insurance Corporation (the “FDIC”) up to applicable legal limits. The Bank is a member of the Federal Reserve System.
The Bank’s deposit accounts are insured by the Federal Deposit Insurance Corporation (the “FDIC”) up to applicable legal limits. The Bank is a member of the Federal Reserve System.
At December 31, 2024, the Bank had approximately $1.6 billion in assets, $1.0 billion in net loans and $1.4 billion in deposits (including deposits of $12.3 million from the Company), other liabilities of $59 million and shareholders’ equity of $181 million. The Bank’s other liabilities include $24.5 million in lease liabilities and $22.1 million in repurchase agreements.
At December 31, 2025, the Bank had approximately $2.2 billion in assets, $1.5 billion in net loans and $1.8 billion in deposits (including deposits of $9.4 million from the Company), other liabilities of $146 million and shareholders’ equity of $273 million. The Bank’s other liabilities include $29 million in lease liabilities and $98 million in repurchase agreements.
Its marketing strategy emphasizes its local ownership and commitment to serve the banking needs of individuals living and working in the Bank’s primary service areas. The Bank primarily generates revenue from loans and investment securities in its portfolio and, to a lesser extent, service fees.
Its marketing strategy emphasizes its local ownership and commitment to serve the banking needs of individuals living and working in the Bank’s primary service areas. Strategy The Bank’s marketing strategy emphasizes its local ownership and management and commitment to serve the banking needs of individuals living and working in the Bank’s primary service areas.
The estimated fair value of deposits assumed totaled $176.7 million consisting of $89.5 million in non-interest bearing transaction accounts, $9.3 million in savings accounts, $45.6 million in money market accounts and $32.3 million in time deposits. Dividends.
The estimated fair value of deposits assumed totaled $580.9 million consisting of $88.6 million in non-interest bearing transaction accounts, $21.8 million in savings accounts, $334.3 million in money market accounts and $136.2 million in time deposits. Dividends and Stock Repurchase Program.
No individual or single group of related customer accounts is considered material in relation to the Bank's assets or deposits, or in relation to our overall business.
The ability of the Company to pay dividends and repurchase common stock is therefore dependent on the Bank’s ability to generate net income and pay dividends to the Company. Business Concentrations. No individual or single group of related customer accounts is considered material in relation to the Bank's assets or deposits, or in relation to our overall business.
The officers and employees of the Bank are continually engaged in marketing activities, including the evaluation and development of new products and services, to enable the Bank to retain and improve its competitive position in its service area. We hold no patents or licenses (other than licenses required by appropriate bank regulatory agencies or local governments), franchises, or concessions.
The officers and employees of the Bank are continually engaged in marketing activities, including the evaluation and development of new products and services, to enable the Bank to retain and improve its competitive position in its service area. Commitment to our Communities.
This product enables us to extend our service area because we can now meet the deposit needs of customers who may not be located within a convenient distance of one of our branch offices. The Bank has devoted a substantial amount of time and capital to the improvement of existing bank services.
This product enables us to extend our service area because we can now meet the deposit needs of customers who may not be located within a convenient distance of one of our branch offices. We are not dependent on a single customer or group of related customers for a material portion of our deposits.
Shareholders may request a free copy of this policy from Plumas Bancorp, Ms. Jamie Huynh, Assistant Corporate Secretary, 5525 Kietzke Lane, Suite 100, Reno, Nevada, 89511. Supervision and Regulation General. As a banking organization, we are extensively regulated under federal and state law.
Jamie Huynh, Assistant Corporate Secretary, 5525 Kietzke Lane, Suite 100, Reno, Nevada, 89511. Supervision and Regulation General. As a banking organization, we are extensively regulated under federal and state law. These laws and regulations are generally intended to protect our customers and the financial system and not our shareholders.
We have established loan concentration guidelines as a percentage of capital and evaluate loan concentration levels within a single industry or group of related industries on a quarterly basis, or more frequently as loan conditions change. There has been no material effect upon our capital expenditures, earnings, or competitive position as a result of federal, state, or local environmental regulation.
We discontinued our auto loan program in the fourth quarter of 2023. We have established loan concentration guidelines as a percentage of capital and evaluate loan concentration levels within a single industry or group of related industries on a quarterly basis, or more frequently as loan conditions change.
The Company paid a quarterly cash dividend of $0.27 per share on November 15, 2024, August 15, 2024, May 15, 2024, and February 15, 2024, and a quarterly cash dividend of $0.25 per share on November 15, 2023, August 15, 2023, May 15, 2023, and February 15, 2023. Business Concentrations.
The Company paid a quarterly cash dividend of $0.30 per shares each quarter in 2025, a quarterly cash dividend of $0.27 per share each quarter in 2024, and a quarterly cash dividend of $0.25 per share each quarter in 2023.
These reports are available at no cost on our website, www.plumasbank.com , as soon as reasonably practicable after filing with the SEC. These reports are also available through the SEC’s website at www.sec.gov . The address of our headquarters is 5525 Kietzke Lane, Suite 100, Reno, Nevada, 89511. The Bank.
These reports are also available through the SEC’s website at www.sec.gov . The address of our headquarters is 5525 Kietzke Lane, Suite 100, Reno, Nevada, 89511. The Bank. The Bank is a California state-chartered bank that was incorporated and commenced business in 1980.
The Bank’s principal retail lending services include consumer and home equity loans. The Bank provides land development and construction loans on a limited basis. 2 Table of Contents The Bank provides Small Business Administration (SBA) loans to qualified borrowers mostly in Northern California, through its government-guaranteed lending center headquartered in Auburn, California.
This high tech and high touch approach allows customers to tailor their access to our services based on their particular preferences. 2 Table of Contents Lending The Bank provides Small Business Administration (SBA) loans to qualified borrowers mostly in Northern California, through its government-guaranteed lending center headquartered in Auburn, California.
In addition to its Auburn location the Bank has an SBA lender based in San Diego, California and an SBA lender based in South Jordan, Utah. In 2007 the Bank was granted nationwide Preferred Lender status with the U.S. Small Business Administration, and we expect government-guaranteed lending to continue to be an important part of our overall lending operation.
In addition to its Auburn location the Bank has an SBA lender based in each of Atascadero, California and Chandler, Arizona. In 2007 the Bank was granted nationwide Preferred Lender status with the U.S.
The sources of competition in such products include traditional banks as well as savings associations, credit unions, brokerage firms, money market and other mutual funds, asset management groups, finance and insurance companies, fintechs and mortgage banking firms. Our strategy is to counter rising competition by providing our own style of community-oriented, personalized service.
The sources of competition in such products include traditional banks as well as savings associations, credit unions, brokerage firms, money market and other mutual funds, asset management groups, finance and insurance companies, fintechs and mortgage banking firms. Human Capital Resources. At December 31, 2025, we employed 246 persons. On a full-time equivalent basis, we employed 234 persons.
With a predominant focus on personal service, the Bank positions itself as a multi-community independent bank serving the financial needs of individuals and businesses within the Bank’s geographic footprint. The Bank’s principal commercial lending services include term real estate, commercial and industrial term loans. In addition, the Bank provides government-guaranteed and agricultural loans as well as credit lines.
With a predominant focus on personal service, the Bank positions itself as a multi-community independent bank serving the financial needs of individuals and businesses within the Bank’s geographic footprint. The Bank’s primary business is servicing the banking needs of these communities.
The estimated fair value of assets acquired at July 1, 2021 was $205.0 million consisting of $28.4 million in cash, $160.4 million in net loans, $1.0 million in core deposit intangible, $5.5 million in goodwill and $9.7 million in other assets.
The estimated fair value of assets acquired at July 1, 2025 was $659.4 million consisting of $51.9 million in cash, $88.1 million in investment securities, $462.5 million in net loans, $11.6 million in core deposit intangible, $12.6 million in bank premises and equipment, $16.4 million in Bank Owned Life Insurance, and $16.3 million in other assets.
We rely on local promotional activity, personal contacts by our officers, directors, employees, and shareholders, automated 24-hour banking, and the individualized service that we can provide through our flexible policies. This approach appears to be well-received by our customers who appreciate a more personal and customer-oriented environment in which to conduct their financial transactions.
Our strategy is to counter rising competition by providing our own style of community-oriented, personalized service. We rely on local promotional activity, personal contacts by our officers, directors, employees, and shareholders, automated 24-hour banking, and the individualized service that we can provide through our flexible policies.
The Bank operates thirteen branches in California, including branches in Alturas, Chester, Chico, Fall River Mills, Greenville, Kings Beach, Portola, Quincy, Redding, Susanville, Tahoe City, Truckee and Yuba City. The Bank's newest branch was opened in April 2023 and is located in Chico, California.
The Bank operates seventeen branches in California, including branches in Alturas, Anderson, Chester, Chico, Fall River Mills, Greenville, Kings Beach, Portola, Quincy, Red Bluff, Redding, Susanville, Tahoe City, Truckee and Yuba City. On July 1, 2025, we acquired our Anderson and Red Bluff branches and two branches in Redding with the acquisition of Cornerstone Community Bank ("Cornerstone").
It is currently the largest bank headquartered in Plumas County, California. The Bank’s operations are conducted through its administrative office in Quincy, California. The Bank’s primary service area covers the Northeastern portion of California, with Lake Tahoe to the south and the Oregon border to the north, and the Northwestern portion of Nevada.
It is currently the largest bank headquartered in Plumas County, California. The Bank’s operations are conducted through its administrative office in Quincy, California. The Bank primarily generates revenue from loans and investment securities in its portfolio and, to a lesser extent, service fees.
Our business has a modest seasonal component due to the heavy agricultural and tourism orientation of some of the communities we serve. We are not dependent on a single customer or group of related customers for a material portion of our deposits.
Our business has a modest seasonal component due to the heavy agricultural and tourism orientation of some of the communities we serve. Our Markets The Bank’s primary service area covers the Northeastern portion of California, with Lake Tahoe to the south and the Oregon border to the north, and the Northwestern portion of Nevada.
These items are described in detail later in this Form 10-K. The Company is a California corporation incorporated in 2002 for the purpose of becoming the holding company for the Bank, which we acquired the same year. We file annual, quarterly, and other reports required under the Securities Exchange Act of 1934 with Securities and Exchange Commission (the “SEC”).
The Company is a California corporation incorporated in 2002 for the purpose of becoming the holding company for the Bank, which it acquired in a bank holding company reorganization the same year.
Removed
The Company’s principal source of income is dividends from the Bank, but the Company may explore supplemental sources of income in the future.
Added
Substantially all of the Company's operations are conducted through its subsidiary, Plumas Bank, which is also the principal source of the Company’s revenue. At December 31, 2025, the Company had consolidated assets of $2.2 billion, deposits of $1.8 billion, other liabilities of $168 million and shareholders’ equity of $261 million.
Removed
The cash outlays of the Company, including but not limited to the payment of dividends to shareholders, if and when declared by the Board of Directors, costs of repurchasing Company common stock and the cost of servicing debt, will generally be paid from dividends paid to the Company by the Bank.
Added
The Company’s other liabilities include $21 million in borrowings, $29 million in lease liabilities and $98 million in repurchase agreements. These items are described in detail later in this Form 10-K.
Removed
At December 31, 2024, the Company had consolidated assets of $1.6 billion, deposits of $1.4 billion, other liabilities of $74 million and shareholders’ equity of $178 million. The Company’s other liabilities include a $15 million borrowing from one of the Company's correspondent banks, $24.8 million in lease liabilities and $22.1 million in repurchase agreements.
Added
Our common stock trades on the Nasdaq Stock Market under the symbol “PLBC.” We file annual, quarterly, and other reports required under the Securities Exchange Act of 1934 with the Securities and Exchange Commission (the “SEC”). These reports are available at no cost on our website, www.plumasbank.com , as soon as reasonably practicable after filing with the SEC.
Removed
During the fourth quarter of 2023 we elected to discontinue our auto loan program.
Added
Small Business Administration, which enables our customers to obtain SBA funding without the potentially lengthy SBA approval process necessary of lenders than are not SBA Preferred Lenders. We expect government-guaranteed lending to continue to be an important part of our overall lending operation.
Added
Other Products and Services We also offer a variety of other products and services complementing our lending and deposit services. These include cashier’s checks, bank-by-mail, ATMs, night depository, safe deposit boxes, direct deposit, electronic funds transfers, FedNow®-receive Service and other customary banking services.
Added
We offer a Remote Deposit product that allows our business customers to make non-cash deposits remotely from their physical location. This product enables us to extend our service area by meeting the deposit needs of customers who may not be located within a convenient distance of one of our branch offices.
Added
In 2025, we enhanced international wire transfers, ACH origination, and treasury management solutions, and developed the ability for clients to automatically enroll business accounts in online banking, download multiple digital statements, and electronically notify the bank of loan payment notice errors.
Added
On February 2, 2026, the Company announced that the Board of Directors had approved a stock repurchase program authorizing the Company to repurchase up to $25 million of its common stock through the fourth quarter of 2026. The Company’s principal source of cash is dividends from the Bank.
Added
To attract and retain employees, we offer a competitive total compensation package that includes a comprehensive benefit program. We have adopted incentive compensation programs that are designed to retain and motivate employees and to align with our performance, including an incentive compensation plan, a 401K retirement plan, and an employee rewards plan.
Added
We regularly review our compensation and benefits and make adjustments to stay competitive. We continually invest in our work force through employee development, education and training. Code of Ethics.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

31 edited+19 added−15 removed107 unchanged
Biggest changeMany of our larger competitors have substantially greater resources than we do to invest in technological improvements. As a result, they may be able to offer, or more quickly offer, additional or superior products that could put us at a competitive disadvantage.
Biggest changeAs a result, they may be able to offer, or more quickly offer, additional or superior products that could put us at a competitive disadvantage. 15 Table of Contents The use of artificial intelligence in our marketplace may result in reputational harm or liability, or could otherwise adversely affect our business.
See Management’s Discussion and Analysis of Financial Condition and Results of Operations – “Analysis of Asset Quality and Allowance for Credit Losses”. A deterioration of national or local economic conditions could reduce our profitability. Our lending operations and customers are primarily located in the eastern region of Northern California and Northern Nevada.
See Management’s Discussion and Analysis of Financial Condition and Results of Operations – “Analysis of Asset Quality and Allowance for Credit Losses”. A deterioration of national or local economic conditions could reduce our profitability. Our lending operations and customers are primarily located in the eastern region of Northern California and in Northern Nevada.
In addition to possibly sustaining damage to its own properties, if there is a major earthquake, fire, flood or other natural disaster, we face the risk that many of our borrowers may experience uninsured property losses, or sustained job interruption and/or loss which may materially impair their ability to meet the terms of their loan obligations.
In addition to possibly sustaining damage to our own properties, if there is a major earthquake, fire, flood or other natural disaster, we face the risk that many of our borrowers may experience uninsured property losses, or sustained job interruption and/or loss which may materially impair their ability to meet the terms of their loan obligations.
As a result, a significant majority of the loans in our loan portfolios as of December 31, 2024, were secured by properties and collateral located within these regions. As of such date, approximately 92% of the loans in our loan portfolio were made to borrowers who primarily conduct business or live in Northern California or Northern Nevada.
As a result, a significant majority of the loans in our loan portfolios as of December 31, 2025, were secured by properties and collateral located within these regions. As of such date, approximately 92% of the loans in our loan portfolio were made to borrowers who primarily conduct business or live in Northern California or Northern Nevada.
As of December 31, 2024, approximately 77% of our total loan portfolio is secured by real estate, the majority of which is commercial real estate. The market value of real estate can fluctuate significantly in a short period of time as a result of market conditions in the area in which the real estate is located.
As of December 31, 2025, approximately 77% of our total loan portfolio is secured by real estate, the majority of which is commercial real estate. The market value of real estate can fluctuate significantly in a short period of time as a result of market conditions in the area in which the real estate is located.
Unrealized gains or losses on these securities, reflecting the difference between the fair market value and the amortized cost, net of its tax effect, are reported as a component of shareholders’ equity. In certain instances, GAAP requires recognition through earnings of declines in the fair value of securities that are deemed to be other than temporarily impaired.
Unrealized gains or losses on these securities, reflecting the difference between the fair market value and the amortized cost, net of its tax effect, are reported as a component of shareholders’ equity. In certain instances, GAAP requires recognition through earnings of declines in the fair value of securities that are deemed to be impaired.
Adverse developments affecting the banking industry have eroded customer confidence in the banking system and could have a material effect on our operations and/or stock price. The recent high-profile failures of several depository institutions may have negatively impacted customer confidence in the safety and soundness of some regional and community banks.
Adverse developments affecting the banking industry may erode customer confidence in the banking system and could have a material effect on our operations and/or stock price. The high-profile failures of several depository institutions may have negatively impacted customer confidence in the safety and soundness of some regional and community banks.
The loss of these vendor relationships could disrupt the services we provide to customers and cause us to incur significant expense in connection with replacing these services. The Company depends primarily on the operations of the Bank to pay dividends, repurchase shares, repay its indebtedness and fund its operations.
The loss of these vendor relationships could disrupt the services we provide to customers and cause us to incur significant expense in connection with replacing these services. Plumas Bancorp depends primarily on the operations of Plumas Bank to pay dividends, repurchase shares, repay its indebtedness and fund its operations.
In particular, our success has been and continues to be highly dependent upon the abilities and relationships of key executives and certain other employees. Climate change may materially adversely affect the Company ’ s business and results of operations.
In particular, our success has been and continues to be highly dependent upon the abilities and relationships of key executives and certain other employees. Climate change may materially adversely affect our business and results of operations.
The Bank ’ s ability to pay dividends to the Company depends on the success of the Bank ’ s operations. The Company is a separate and distinct legal entity from its subsidiary, the Bank, and it receives substantially all of its revenue from dividends paid by the Bank.
The Bank ’ s ability to pay dividends to Plumas Bancorp depends on the success of the Bank ’ s operations. Plumas Bancorp is a separate and distinct legal entity from its subsidiary, the Bank, and it receives substantially all of its revenue from dividends paid by the Bank.
For these reasons, the amount and frequency of dividends that we pay to shareholders may vary from time to time. 15 Table of Contents Damage to our reputation could significantly harm our business and prospects. Our reputation is an important asset.
For these reasons, the amount and frequency of dividends that we pay to shareholders may vary from time to time. Damage to our reputation could significantly harm our business and prospects. Our reputation is an important asset.
Even if applicable laws and regulations would permit the Bank to pay dividends to the Company and would permit the Company to pay dividends to our shareholders, our Board of Directors could determine that it is not in the best interest of the Company’s shareholders to do so in order to preserve or redeploy our capital resources, for example.
Even if applicable laws and regulations would permit the Bank to pay dividends to Plumas Bancorp and would permit Plumas Bancorp to pay dividends to our shareholders, our Board of Directors could determine that it is not in the best interest of the our shareholders to do so in order to preserve or redeploy our capital resources, for example.
A significant portion of our borrowers are involved in or are dependent on the agricultural industry in California, which requires water. As of December 31, 2024, approximately 13% of our loans were categorized as agricultural loans. As a result of the drought, there have been governmental proposals concerning the distribution or rationing of water.
A significant portion of our borrowers are involved in or are dependent on the agricultural industry in California, which requires water. As of December 31, 2025, approximately 10% of our loans were categorized as agricultural loans. As a result of the drought, there have been governmental proposals concerning the distribution or rationing of water.
A significant downturn in the national economy or the local economy due to the real estate market, public policy decisions, agricultural commodity prices, natural disaster, fires, drought or other factors could result in a decline in the local economy in general, which could in turn negatively impact our business, financial condition, results of operations and prospects.
A significant downturn in the national economy or the local economy due to the real estate market, monetary or public policy decisions, tariffs and internal trading tension, agricultural commodity prices, natural disaster, fires, drought or other factors could result in a decline in the local economy in general, which could in turn negatively impact our business, financial condition, results of operations and prospects.
There are legal limitations on the extent to which the Bank may extend credit, pay dividends or otherwise supply funds to, or engage in transactions with, the Company. The Company’s inability to receive dividends from the Bank could adversely affect its business, financial condition, results of operations and prospects.
There are legal limitations on the extent to which the Bank may extend credit, pay dividends or otherwise supply funds to, or engage in transactions with, Plumas Bancorp. Plumas Bancorp’s inability to receive dividends from the Bank could adversely affect its business, financial condition, results of operations and prospects.
Furthermore, a prolonged period of inflation could cause wages and other costs to the Company to increase, which could adversely affect our results of operations and financial condition. Changes in interest rates could reduce our business and profitability.
Furthermore, a prolonged period of inflation could cause wages and other costs to the Company to increase, which could adversely affect our results of operations and financial condition. Changes in interest rates could reduce our business and profitability. Our earnings could be significantly and adversely impacted by changes in interest rates.
Therefore, a major earthquake, fire, flood or other natural disaster in California or Nevada could have a material adverse effect on our business, financial condition, results of operations and cash flows. Over the past decade, California has experienced a severe drought, though drought conditions have lessened in the past few years.
Therefore, a major earthquake, fire, flood or other natural disaster in California or Nevada could have a material adverse effect on our business, financial condition, results of operations and cash flows. Over the past decade, California has experienced periods of severe drought.
If we pursue our growth strategy too aggressively or fail to attract qualified personnel, control costs or maintain asset quality, or if factors beyond management’s control divert attention away from our business operations, our pursuit of growth could have a material adverse impact on our business.
If we pursue our growth strategy too aggressively or fail to attract qualified personnel, control costs or maintain asset quality, or if factors beyond management’s control divert attention away from our business operations, our pursuit of growth could have a material adverse impact on our business. Our accounting estimates and risk management processes rely on analytical and forecasting models.
In addition, with greater financial resources, they may be able to offer longer maturities or lower rates. Our competitors may also provide certain products and services for their customers, such as technological solutions, trust services and international banking, that we are unable to offer or may only be able to offer indirectly through correspondent relationships.
Our competitors may also provide certain products and services for their customers, such as technological solutions, trust services and international banking, that we are unable to offer or may only be able to offer indirectly through correspondent relationships.
As of December 31, 2024, our CRE loans for purposes of this guidance represented 242% of our total risk-based capital. As of December 31, 2024, total loans secured by CRE under construction and land development represented 54% of our total risk-based capital.
As of December 31, 2025, our CRE loans for purposes of this guidance, represent ed 389% of our total risk-based capital. As of December 31, 2025, total loans secured by CRE under construction and land development represented 15% of our total risk-based capital.
We cannot assure that future acquisitions or new offices will be successful. Further, growth may strain our administrative, managerial, financial and operational resources and increase demands on our systems and controls.
We cannot assure that our acquisition of Cornerstone Community Bancorp or any future acquisitions or new offices will be successful or achieve the anticipated benefits. Further, growth may strain our administrative, managerial, financial and operational resources and increase demands on our systems and controls.
Accordingly, we cannot assure that we will be able to raise additional capital if needed or on terms acceptable to us.
Accordingly, we cannot assure that we will be able to raise additional capital if needed, on terms acceptable to us or on terms that would not adversely affect our existing shareholders.
Based on experience, we believe that our deposit accounts are relatively stable sources of funds. If we increase interest rates paid to retain deposits, our earnings may be adversely affected, which could have an adverse effect on our business, financial condition and results of operations.
If we increase interest rates paid to retain deposits, our earnings may be adversely affected, which could have an adverse effect on our business, financial condition and results of operations.
We face substantial competition from larger banks and other financial institutions. We face substantial competition for deposits and loans. Competition for deposits primarily comes from other commercial banks, savings institutions, thrift and loan associations, credit unions, money market and mutual funds and other investment alternatives.
Competition for deposits primarily comes from other commercial banks, savings institutions, thrift and loan associations, credit unions, money market and mutual funds and other investment alternatives. Competition for loans comes primarily from other commercial banks, savings institutions, credit unions, mortgage banking firms, thrift and loan associations and increasingly “fintech” lending platforms.
Inflation began to rise sharply at the end of 2021 and has remained at an elevated level through 2024. Small to medium-sized businesses may be impacted more during periods of high inflation as they are not able to leverage economics of scale to mitigate cost pressures compared to larger businesses.
Small to medium-sized businesses may be impacted more during periods of high inflation as they are not able to leverage economics of scale to mitigate cost pressures compared to larger businesses.
Despite our considerable efforts and investment to provide the security and authentication necessary to effect secure transmission of data, we cannot guarantee that these precautions will protect our systems from security compromises or breaches.
Our electronic banking activities expose us to possible liability and harm to our reputation should an unauthorized party gain access to confidential customer information. Despite our considerable efforts and investment to provide the security and authentication necessary to effect secure transmission of data, we cannot guarantee that these precautions will protect our systems from security compromises or breaches.
Ultimately, competition can reduce our profitability, as well as make it more difficult to increase the size of our loan portfolio and deposit base. Our growth strategy involves risks. In January 2025, we announced our proposed merger with Cornerstone Community Bancorp.
Ultimately, competition can reduce our profitability, as well as make it more difficult to increase the size of our loan portfolio and deposit base. Our growth strategy involves risks. In July 2025, we completed our acquisition of Cornerstone Community Bancorp. In 2021 we acquired Bank of Feather River and in 2023 we opened a new branch in Chico California.
In July 2021 we completed the acquisition of Bank of Feather River and in 2023 we opened a new branch in Chico California. Previously, during the last ten years we completed two branch purchase and assumption transactions, the establishment of a new branch office in Reno, Nevada and a loan production office in Klamath Falls, Oregon.
Previously, during the last ten years we completed two branch purchase and assumption transactions, the establishment of a new branch office in Reno, Nevada and a loan production office in Klamath Falls, Oregon. As a result, the size and complexity of our business has increased.
As with many developing technologies, artificial intelligence presents risks and challenges that could affect its further development, adoption, and use, and therefore our business.
Artificial intelligence, including generative artificial intelligence, is or may be enabled by or integrated into our products and services or those developed by our third-party partners. As with many developing technologies, artificial intelligence presents risks and challenges that could affect its further development, adoption, and use, and therefore our business.
Although we maintain a rigorous process for managing the impact of possible interest rate fluctuations on earnings, there is a risk that despite our efforts, our earnings could be significantly and adversely impacted by changes in interest rates.
While we maintain processes for managing the impact of interest rate fluctuations on earnings, there is a risk that these processes may not fully mitigate the impact of interest rate fluctuations on our business and profitability.
Competition for loans comes primarily from other commercial banks, savings institutions, credit unions, mortgage banking firms, thrift and loan associations and increasingly “fintech” lending platforms. Larger competitors with larger capital resources have substantially greater resources to invest in technology and marketing and higher lending limits than us.
Larger competitors with larger capital resources have substantially greater resources to invest in technology and marketing and higher lending limits than us. In addition, with greater financial resources, they may be able to offer longer maturities or lower rates.
Removed
See “Risks Related to Our Proposed Acquisition of Cornerstone Community Bancorp.” Our accounting estimates and risk management processes rely on analytical and forecasting models.
Added
Determining the appropriate levels of the allowances for credit losses inherently involves a high degree of subjectivity and judgment and requires us to make estimates of current credit risks and future trends, all of which may undergo material changes.
Removed
Cybersecurity breaches and technological disruptions could damage our reputation and profitability. Our electronic banking activities expose us to possible liability and harm to our reputation should an unauthorized party gain access to confidential customer information.
Added
Inflation began to rise sharply at the end of 2021 and has remained at an elevated level through 2024. While some broad inflation rates began to moderate in 2025, inflation rates in some sectors remained elevated relative to historical levels.
Removed
The use of artificial intelligence in our marketplace may result in reputational harm or liability, or could otherwise adversely affect our business. Artificial intelligence, including generative artificial intelligence, is or may be enabled by or integrated into our products and services or those developed by our third-party partners.
Added
Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. Credit-related impairment is recognized as an allowance for credit losses on the balance sheet, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings.
Removed
Risks Related to Our Proposed Acquisition of Cornerstone Community Bancorp Our failure to manage our proposed acquisition of Cornerstone Community Bancorp may have a material adverse effect on our financial condition and results of operations.
Added
Future failures of or publicized financial difficulties at other depository institutions similarly erode customer confidence.
Removed
In January 2025, we entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) with Cornerstone Community Bancorp (“Cornerstone”), which is the holding company for Cornerstone Community Bank based in Red Bluff, California.
Added
We are subject to market, operational, accounting, credit and other related risks associated with our interest rate hedging strategies. We may seek to mitigate our interest rate risk by entering into interest rate swaps and other interest rate derivative contracts from time to time.
Removed
The Merger Agreement provides that, subject to the terms and conditions in the agreement, Cornerstone will merge with and into the Company, with the Company as the surviving corporation (the “Merger”).
Added
No hedging strategy can completely protect us and the derivative financial instruments we elect may not be effective in reducing our interest rate risk.
Removed
Acquiring other banks involves risks commonly associated with acquisitions generally, including, among other things, the risk that acquisition activity may divert our management’s attention from other aspects of our business, the difficulty in estimating the value of a target company, and the risk that an acquired business may not perform in accordance with our expectations.
Added
Our hedging strategies rely on assumptions and projections regarding interest rates, asset levels and general market factors and subject us to counterparty risks, such as the risks of insolvency or other inability of the counterparty to a particular transaction to perform its obligations thereunder, including providing sufficient collateral.
Removed
Our future results of operations will depend in large part on our ability to successfully integrate Cornerstone’s operations with our own and retain Cornerstone’s customers.
Added
Hedging strategies that prove to be ineffective, inaccurate assumptions or projections or the failure of a counterparty to fulfill its contractual obligations could increase our risks and losses. To the extent a derivative contract does not meet the requirements for applying hedge accounting in accordance with GAAP, our earnings may be adversely affected.
Removed
If we are unable to successfully manage the risks related to the Merger and the integration of the separate business, customers, employees and operating systems of Cornerstone with our own, our financial condition and results of operations may be adversely affected. We may fail to realize the anticipated benefits of the proposed merger with Cornerstone.
Added
In particular, to be eligible for hedge accounting under GAAP, derivatives must be highly effective in offsetting changes in the value or cash flows of the hedged items and appropriately designated or documented as such.
Removed
The success of the Merger will depend on, among other things, our ability to combine and integrate the business of Cornerstone into our business. If we are unable to successfully achieve this objective, the anticipated benefits of the Merger may not be realized fully, or at all, or may take longer to realize than expected.
Added
If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued and the changes in fair value of the instrument are included in our reported net income. In addition, hedging strategies involve transaction and other costs.
Removed
The Company and Cornerstone operate independently and will continue to do so until the Merger is completed. It is possible that the integration process or other factors could result in the loss or departure of key employees, the disruption of the ongoing business of the Company or Cornerstone or inconsistencies in standards, controls, procedures and policies.
Added
Therefore, our hedging strategies and the derivatives that we use may not adequately offset the risks of interest rate volatility and could result in or magnify losses, which could have an adverse effect on our financial condition and result of operations. We face substantial competition from larger banks and other financial institutions. We face substantial competition for deposits and loans.
Removed
It is also possible that clients, customers, depositors and counterparties of Cornerstone could choose to discontinue their relationships with the Company after the Merger, which would adversely affect the future anticipated performance of the Company.
Added
Our future success will depend, in part, upon our ability to manage this expanded business, which may pose challenges for management, including challenges related to the management and monitoring of new operations and associated increased costs and complexity.
Removed
It is also possible that we may not realize all or some of the anticipated cost savings of the Merger, or that the realization of cost savings may be delayed. These risks could have an adverse effect on the Company, its financial condition, prospects and results of operations following the consummation of the Merger.
Added
We rely upon independent appraisals to determine the value of the real estate that secures a substantial portion of our loans, and the values indicated by such appraisals may not be realizable if we are forced to foreclose upon such loans. A substantial portion of our loan portfolio consists of loans secured by real estate.
Removed
We will incur substantial costs related to the Merger. We have incurred and expect to incur a number of significant non-recurring costs associated with the Merger. These costs include legal, financial advisory, accounting, consulting, and other advisory fees, severance/employee benefit-related costs and other related costs. Some of these costs are payable regardless of whether the Merger is completed.
Added
We generally rely upon appraisers at the time of origination to estimate the value of such real estate. Appraisals are only estimates of value, and the soundness of those estimates may be affected by volatility in the real estate market or other changes in market conditions.
Removed
We may incur additional costs to maintain employee morale and retain key employees during the pendency of the Merger. There can be no assurances that the expected benefits and efficiencies related to the integration of the businesses will be realized to offset these transaction costs over time.
Added
In addition, the appraisers may make mistakes of fact or judgment, which adversely affect the reliability of their appraisals. In addition, events occurring after the initial appraisal may cause the value of the real estate to increase or decrease.
Added
For example, since 2020 and in light of the prevalence of hybrid work arrangements and associated lower occupancy rates, in many cases the value of commercial real estate secured by office properties has declined.
Added
As a result of these factors, the real estate securing some of our loans may be less valuable than anticipated at the time the loans were made.
Added
If a default occurs on a loan secured by real estate that is less valuable than originally estimated, then we may not be able to recover the outstanding balance of the loan and will suffer a loss. Cybersecurity breaches and technological disruptions could damage our reputation and profitability.
Added
Many of our larger competitors have substantially greater resources than we do to invest in technological improvements.

Item 2. Properties

Properties — owned and leased real estate

7 edited+0 added−0 removed2 unchanged
Biggest changeMain Street Quincy, California (1) Quincy, California (1) Quincy, California (1) 215 North Lake Boulevard 900 Mangrove Avenue 315 Birch Street Tahoe City, California Chico, California Westwood, California (1) 1280 Bridge Street 8475 North Lake Boulevard Yuba City, California (4) Kings Beach, California Leased Properties 495 Idaho Street #102 1335 Hilltop Drive 11641 Blocker Drive.
Biggest changeOwned Properties 192 Hartnell Avenue 1845 California Street 80 Main Street Redding, California Redding, California Quincy, California (1) 215 North Lake Boulevard 900 Mangrove Avenue 315 Birch Street Tahoe City, California Chico, California Westwood, California (1) 1280 Bridge Street 8475 North Lake Boulevard 2727 Ventura Street Yuba City, California (4) Kings Beach, California Anderson, California 500 Riverside Way Red Bluff, California Leased Properties 330 Hartnell Avenue 1335 Hilltop Drive 11641 Blocker Drive.
The expiration dates of the leases vary, with the first such lease expiring during 2025 and the last such lease expiring during 2044.
The expiration dates of the leases vary, with the first such lease expiring during 2026 and the last such lease expiring during 2044.
Suite 140 Elko, Nevada (1) Redding, California Auburn, California (2) 1101 N.
Suite 140 Redding, California (1) Redding, California Auburn, California (2) 1101 N.
Carson St. 107 S. 7 th Street 5525 Kietzke Lane, Suite 100 Carson City, Nevada Klamath Falls, Oregon (3) Reno, Nevada (1) 5050 Meadowood Mall Circle 336 West Main Street 120 North Pine Street Reno, Nevada Quincy, California Portola, California 11638 Donner Pass Road 43163 Highway 299 E 121 Crescent Street Truckee, California Fall River Mills, California Greenville, California 255 Main Street 510 North Main Street 3000 Riverside Drive Chester, California Alturas, California Susanville, California (1) Non-branch administrative or credit administrative offices.
Carson St. 107 S. 7 th Street 5525 Kietzke Lane, Suite 100 Carson City, Nevada Klamath Falls, Oregon (3) Reno, Nevada (1) 5050 Meadowood Mall Circle 336 West Main Street 120 North Pine Street Reno, Nevada Quincy, California Portola, California 11638 Donner Pass Road 43163 Highway 299 E 121 Crescent Street Truckee, California Fall River Mills, California Greenville, California 255 Main Street 510 North Main Street 3000 Riverside Drive Chester, California Alturas, California Susanville, California 35 South Lindan Avenue 32 Central Avenue 424 N.
ITEM 2. PROPERTIES Of the Company’s fifteen depository branches, four are owned and eleven are leased. Our Yuba City branch is classified as owned; however, it is subject to a long-term land lease. The Company also leases two lending offices and four administrative offices and owns three administrative facilities. Owned Properties 35 South Lindan Avenue 32 Central Avenue 80 W.
ITEM 2. PROPERTIES Of the Company’s nineteen depository branches, eight are owned and eleven are leased. Our Yuba City branch is classified as owned; however, it is subject to a long-term land lease. The Company also leases two lending offices and five administrative offices and owns two administrative facilities.
(2) SBA lending office. (3) Commercial lending office. (4) Branch subject to long term land lease. Including variable lease expense, total rent expense for the years ended December 31, 2024, 2023 and 2022 were $3,064,000, $635,000 and $611,000, respectively.
Mill Creek Rd. Quincy, California (1) Quincy, California (1) Quincy, California (1) (1) Non-branch administrative or credit administrative offices. (2) SBA lending office. (3) Commercial lending office. (4) Branch subject to long term land lease. Including variable lease expense, total rent expense for the years ended December 31, 2025, 2024 and 2023 were $3,584,000, $3,064,000 and $635,000, respectively.
Future minimum lease payments at December 31, 2024 for operating leases having initial or remaining noncancelable lease terms in excess of one year are as follows: Year Ending December 31, 2025 $ 2,910,000 2026 2,838,000 2027 2,764,000 2028 2,710,000 2029 2,765,000 Thereafter 29,076,000 $ 43,063,000 The Company maintains insurance coverage on its premises, leaseholds and equipment, including business interruption and record reconstruction coverage.
Future minimum lease payments at December 31, 2025 for operating leases having initial or remaining noncancelable lease terms in excess of one year are as follows: Year Ending December 31, 2026 $ 3,630,000 2027 3,410,000 2028 3,235,000 2029 3,272,000 2030 3,343,000 Thereafter 32,370,000 $ 49,260,000 The Company maintains insurance coverage on its premises, leaseholds and equipment, including business interruption and record reconstruction coverage.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+0 added−0 removed3 unchanged
Biggest changeAt or for the year ended December 31, 2024 2023 2022 2021 2020 (dollars in thousands except per share information) Statement of Income Interest income $ 84,325 $ 74,592 $ 59,758 $ 48,070 $ 39,624 Interest expense 10,634 4,798 1,249 1,136 1,228 Net interest income 73,691 69,794 58,509 46,934 38,396 Provision for credit losses 1,196 2,775 1,300 1,125 3,175 Non-interest income 8,780 10,722 11,050 8,716 8,463 Non-interest expense 42,274 37,530 32,590 26,038 23,732 Net income before income taxes 39,001 40,211 35,669 28,487 19,952 Provision for income taxes 10,382 10,435 9,225 7,478 5,477 Net income $ 28,619 $ 29,776 $ 26,444 $ 21,009 $ 14,475 Total assets $ 1,623,326 $ 1,610,416 $ 1,621,044 $ 1,614,074 $ 1,111,576 Total gross loans $ 1,015,424 $ 958,564 $ 911,949 $ 838,587 $ 709,246 Loans held for sale $ - $ - $ 2,301 $ 31,277 $ 693 Allowance for credit losses $ 13,196 $ 12,867 $ 10,717 $ 10,352 $ 9,902 Total deposits $ 1,371,101 $ 1,333,655 $ 1,457,809 $ 1,438,999 $ 973,974 Total shareholders’ equity $ 177,899 $ 147,317 $ 119,004 $ 134,082 $ 100,154 Balance sheet (period average) Total assets $ 1,649,341 $ 1,587,149 $ 1,642,895 $ 1,386,028 $ 1,015,297 Total gross loans $ 989,313 $ 933,997 $ 865,499 $ 800,785 $ 699,255 Total deposits $ 1,331,412 $ 1,403,957 $ 1,487,346 $ 1,231,618 $ 886,515 Total shareholders’ equity $ 166,255 $ 126,984 $ 120,868 $ 117,967 $ 93,152 Asset quality ratios Nonperforming loans/total loans 0.40 % 0.50 % 0.13 % 0.58 % 0.36 % Nonperforming assets/total assets 0.27 % 0.33 % 0.07 % 0.33 % 0.27 % Allowance for credit losses/total loans 1.30 % 1.34 % 1.18 % 1.23 % 1.40 % Net loan charge-offs $ 1,046 $ 954 $ 935 $ 675 $ 516 Performance ratios Return on average assets 1.74 % 1.88 % 1.61 % 1.52 % 1.43 % Return on average equity 17.2 % 23.4 % 21.9 % 17.8 % 15.5 % Net interest margin 4.79 % 4.71 % 3.82 % 3.63 % 4.02 % Loans to deposits 74.1 % 71.9 % 62.6 % 58.3 % 72.9 % Efficiency ratio (1) 51.3 % 46.6 % 46.9 % 46.8 % 50.6 % Per share information Basic earnings $ 4.85 $ 5.08 $ 4.53 $ 3.82 $ 2.80 Diluted earnings $ 4.80 $ 5.02 $ 4.47 $ 3.76 $ 2.77 Common cash dividends $ 1.08 $ 1.00 $ 0.64 $ 0.56 $ 0.36 Book value per common share $ 30.14 $ 25.09 $ 20.34 $ 23.05 $ 19.33 Common shares outstanding at period end 5,903,368 5,871,523 5,850,216 5,816,991 5,182,232 Capital ratios – Plumas Bank Leverage ratio 11.9 % 10.8 % 9.2 % 8.4 % 9.2 % Tier 1 risk-based capital 17.3 % 15.7 % 14.7 % 14.4 % 14.2 % Total risk-based capital 18.5 % 16.9 % 15.7 % 15.5 % 15.4 % (1) The efficiency ratio is defined as non-interest expense divided by total revenue (net interest income and non-interest income).
Biggest changeAt or for the year ended December 31, 2025 2024 2023 2022 2021 (dollars in thousands except per share information) Statement of Income Interest income $ 101,647 $ 84,325 $ 74,592 $ 59,758 $ 48,070 Interest expense 13,877 10,634 4,798 1,249 1,136 Net interest income 87,770 73,691 69,794 58,509 46,934 Provision for credit losses 6,850 1,196 2,775 1,300 1,125 Non-interest income 10,526 8,780 10,722 11,050 8,716 Non-interest expense 51,854 42,274 37,530 32,590 26,038 Net income before income taxes 39,592 39,001 40,211 35,669 28,487 Provision for income taxes 9,975 10,382 10,435 9,225 7,478 Net income $ 29,617 $ 28,619 $ 29,776 $ 26,444 $ 21,009 Total assets $ 2,238,523 $ 1,623,326 $ 1,610,416 $ 1,621,044 $ 1,614,074 Total gross loans $ 1,512,056 $ 1,015,424 $ 958,564 $ 911,949 $ 838,587 Loans held for sale $ - $ - $ - $ 2,301 $ 31,277 Allowance for credit losses $ 19,959 $ 13,196 $ 12,867 $ 10,717 $ 10,352 Total deposits $ 1,809,604 $ 1,371,101 $ 1,333,655 $ 1,457,809 $ 1,438,999 Total shareholders’ equity $ 261,076 $ 177,900 $ 147,317 $ 119,004 $ 134,082 Balance sheet (period average) Total assets $ 1,946,338 $ 1,649,341 $ 1,587,149 $ 1,642,895 $ 1,386,028 Total gross loans $ 1,252,139 $ 989,313 $ 933,997 $ 865,499 $ 800,785 Total deposits $ 1,612,764 $ 1,331,412 $ 1,403,957 $ 1,487,346 $ 1,231,618 Total shareholders’ equity $ 217,162 $ 166,255 $ 126,984 $ 120,868 $ 117,967 Asset quality ratios Nonperforming loans/total loans 1.00 % 0.40 % 0.50 % 0.13 % 0.58 % Nonperforming assets/total assets 0.68 % 0.27 % 0.33 % 0.07 % 0.33 % Allowance for credit losses/total loans 1.32 % 1.30 % 1.34 % 1.18 % 1.23 % Net loan charge-offs $ 442 $ 1,046 $ 954 $ 935 $ 675 Performance ratios Return on average assets 1.52 % 1.74 % 1.88 % 1.61 % 1.52 % Return on average equity 13.6 % 17.2 % 23.4 % 21.9 % 17.8 % Net interest margin 4.91 % 4.79 % 4.71 % 3.82 % 3.63 % Loans to deposits 83.6 % 74.1 % 71.9 % 62.6 % 58.3 % Efficiency ratio (1) 52.8 % 51.3 % 46.6 % 46.9 % 46.8 % Per share information Basic earnings $ 4.60 $ 4.85 $ 5.08 $ 4.53 $ 3.82 Diluted earnings $ 4.54 $ 4.80 $ 5.02 $ 4.47 $ 3.76 Common cash dividends $ 1.20 $ 1.08 $ 1.00 $ 0.64 $ 0.56 Book value per common share $ 37.52 $ 30.14 $ 25.09 $ 20.34 $ 23.05 Common shares outstanding at period end 6,958,814 5,903,368 5,871,523 5,850,216 5,816,991 Capital ratios – Plumas Bank Leverage ratio 11.1 % 11.9 % 10.8 % 9.2 % 8.4 % Tier 1 risk-based capital 14.8 % 17.3 % 15.7 % 14.7 % 14.4 % Total risk-based capital 16.0 % 18.5 % 16.9 % 15.7 % 15.5 % (1) The efficiency ratio is defined as non-interest expense divided by total revenue (net interest income and non-interest income).
We did not repurchase any shares of our common stock during the quarterly period ended December 31, 2024. 22 Table of Contents The following table presents a summary of selected financial data and should be read in conjunction with the Company’s consolidated financial statements and notes thereto included under Item 8 – Financial Statements and Supplementary Data.
We did not repurchase any shares of our common stock during the quarterly period ended December 31, 2025. 22 Table of Contents The following table presents a summary of selected financial data and should be read in conjunction with the Company’s consolidated financial statements and notes thereto included under Item 8 – Financial Statements and Supplementary Data.
The Company paid a quarterly cash dividend of $0.27 per share on November 15, August 15, 2024, May 15, 2024 and February 15, 2024, and a quarterly cash dividend of $0.25 per share on November 15, 2023, August 15, 2023, May 15, 2023, and February 15, 2023. The payment of future dividends is at the discretion of the Board.
The Company paid a quarterly cash dividend of $0.30 per share on November 17, 2025, August 15, 2025, May 15, 2025, and February 17, 2025, and a quarterly cash dividend of $0.27 per share on November 15, 2024, August 15, 2024, May 15, 2024, and February 15, 2024. The payment of future dividends is at the discretion of the Board.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCK HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. The Company’s common stock is traded on the NASDAQ Capital Market under the ticker symbol "PLBC". As of December 31, 2024, there wer e 5,903,368 shares of the Company’s common stock outstanding held by approximatel y 1,800 shareholders of record.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCK HOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. The Company’s common stock is traded on the NASDAQ Capital Market under the ticker symbol "PLBC". As of December 31, 2025, there wer e 6,958,814 shares of the Company’s common stock outstanding held by 5,855 shareholders of record.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

117 edited+83 added−64 removed60 unchanged
Biggest changeThe Company's policy is that nonaccrual loans also represent the subset of loans in which borrowers are experiencing financial difficulty such that an evaluation of the source of repayment is required to determine if the nonaccrual loans should be categorized as collateral dependent. 34 Table of Contents The following table provides selected credit ratios as of December 31, 2024, 2023 and 2022: (dollars in thousands) As of and for the Year Ended December 31, 2024 2023 2022 Allowance for credit losses to total loans outstanding 1.30 % 1.34 % 1.18 % Allowance for credit losses $ 13,196 $ 12,867 $ 10,717 Total loans outstanding $ 1,015,424 $ 958,564 $ 911,949 Nonaccrual loans to total loans outstanding 0.40 % 0.50 % 0.13 % Nonaccrual loans $ 4,105 $ 4,820 $ 1,172 Total loans outstanding $ 1,015,424 $ 958,564 $ 911,949 Allowance for credit losses to nonaccrual loans 321.46 % 266.95 % 914.42 % Allowance for credit losses $ 13,196 $ 12,867 $ 10,717 Nonaccrual loans $ 4,105 $ 4,820 $ 1,172 Net charge-offs during the period to average loans outstanding: Commercial 0.35 % 0.10 % 0.21 % Net charge-off during the period $ 277 $ 79 $ 180 Average amount outstanding $ 78,279 $ 75,760 $ 85,460 Agricultural 0.00 % 0.00 % 0.00 % Net charge-off during the period $ - $ - $ - Average amount outstanding $ 122,871 $ 124,798 $ 124,389 Real estate - residential (0.03 %) (0.02 %) (0.02 %) Net charge-off during the period $ (4 ) $ (3 ) $ (3 ) Average amount outstanding $ 11,692 $ 14,223 $ 15,680 Real estate - commercial 0.00 % 0.00 % 0.00 % Net charge-off during the period $ (1 ) $ (1 ) $ 17 Average amount outstanding $ 589,551 $ 520,498 $ 445,348 Real estate - construction & land development 0.00 % 0.00 % 0.00 % Net charge-off during the period $ - $ - $ - Average amount outstanding $ 63,399 $ 55,034 $ 57,367 Equity lines of credit (0.00 %) (0.00 %) (0.00 %) Net charge-off during the period $ - $ - $ - Average amount outstanding $ 37,620 $ 36,371 $ 34,458 Auto 0.88 % 0.79 % 0.80 % Net charge-off during the period $ 715 $ 804 $ 713 Average amount outstanding $ 80,828 $ 101,800 $ 89,442 Other 1.16 % 1.36 % 0.61 % Net charge-off during the period $ 59 $ 75 $ 28 Average amount outstanding $ 5,073 $ 5,513 $ 4,584 Total Loans 0.11 % 0.10 % 0.11 % Net charge-off during the period $ 1,046 $ 954 $ 935 Average amount outstanding $ 989,313 $ 933,997 $ 856,728 The allowance for credit losses totaled $13.2 million at December 31, 2024, and $12.9 million at December 31, 2023.
Biggest changeThe allowance for credit losses as a percentage of total loans was 1.32% on December 31, 2025, and 1.30% on December 31, 2024. 35 Table of Contents The following table provides selected credit ratios as of December 31, 2025, 2024 and 2023: (dollars in thousands) As of and for the Year Ended December 31, 2025 2024 2023 Allowance for credit losses to total loans outstanding 1.32 % 1.30 % 1.34 % Allowance for credit losses $ 19,959 $ 13,196 $ 12,867 Total loans outstanding $ 1,512,056 $ 1,015,424 $ 958,564 Nonaccrual loans to total loans outstanding 1.00 % 0.40 % 0.50 % Nonaccrual loans $ 15,089 $ 4,105 $ 4,820 Total loans outstanding $ 1,512,056 $ 1,015,424 $ 958,564 Allowance for credit losses to nonaccrual loans 132.28 % 321.46 % 266.95 % Allowance for credit losses $ 19,959 $ 13,196 $ 12,867 Nonaccrual loans $ 15,089 $ 4,105 $ 4,820 Net charge-offs during the period to average loans outstanding: Commercial 0.26 % 0.35 % 0.10 % Net charge-off during the period $ 317 $ 277 $ 79 Average amount outstanding $ 120,948 $ 78,279 $ 75,760 Agricultural 0.01 % 0.00 % 0.00 % Net charge-off during the period $ 11 $ - $ - Average amount outstanding $ 133,988 $ 122,871 $ 124,798 Real estate - residential (0.22 %) (0.03 %) (0.02 %) Net charge-off during the period $ (49 ) $ (4 ) $ (3 ) Average amount outstanding $ 22,471 $ 11,692 $ 14,223 Real estate - commercial 0.00 % 0.00 % 0.00 % Net charge-off during the period $ (7 ) $ (1 ) $ (1 ) Average amount outstanding $ 814,894 $ 589,551 $ 520,498 Real estate - construction & land development 0.00 % 0.00 % 0.00 % Net charge-off during the period $ - $ - $ - Average amount outstanding $ 50,510 $ 63,399 $ 55,034 Equity lines of credit 0.14 % (0.00 %) (0.00 %) Net charge-off during the period $ 66 $ - $ - Average amount outstanding $ 45,827 $ 37,620 $ 36,371 Auto (0.03 %) 0.88 % 0.79 % Net charge-off during the period $ (16 ) $ 715 $ 804 Average amount outstanding $ 51,641 $ 80,828 $ 101,800 Other 1.01 % 1.16 % 1.36 % Net charge-off during the period $ 120 $ 59 $ 75 Average amount outstanding $ 11,860 $ 5,073 $ 5,513 Total Loans 0.04 % 0.11 % 0.10 % Net charge-off during the period $ 442 $ 1,046 $ 954 Average amount outstanding $ 1,252,139 $ 989,313 $ 933,997 36 Table of Contents The following table provides a breakdown of the allowance for credit losses: Percent of Percent of Loans in Loans in Balance at Each Balance at Each End of Category to End of Category to (dollars in thousands) Period Total Loans Period Total Loans 12/31/2025 12/31/2025 12/31/2024 12/31/2024 Commercial $ 3,246 11.1 % $ 1,265 7.6 % Agricultural 3,973 10.4 % 1,802 11.7 % Real estate – residential 258 2.2 % 102 1.1 % Real estate – commercial 10,605 66.3 % 7,459 63.7 % Real estate – construction & land development 514 2.7 % 815 5.3 % Equity Lines of Credit 502 3.5 % 460 3.7 % Auto 591 2.6 % 1,215 6.4 % Other 270 1.2 % 78 0.5 % Total $ 19,959 100 % $ 13,196 100 % The Company places loans 90 days or more past due on nonaccrual status unless the loan is well secured and in the process of collection.
We cannot provide you with any assurance that economic difficulties or other circumstances which would adversely affect our borrowers and their ability to repay outstanding loans will not occur which would be reflected in increased losses in our loan portfolio and which could result in actual losses that exceed reserves previously established. 24 Table of Contents The following discussion is designed to provide a better understanding of significant trends related to the Company's financial condition, results of operations, liquidity and capital.
We cannot provide you with any assurance that economic difficulties or other circumstances which would adversely affect our borrowers and their ability to repay outstanding loans will not occur which would be reflected in increased losses in our loan portfolio and which could result in actual losses that exceed reserves previously established. 26 Table of Contents The following discussion is designed to provide a better understanding of significant trends related to the Company's financial condition, results of operations, liquidity and capital.
Moreover, the business activities of the Company currently are focused in the California counties of Butte, Lassen, Modoc, Nevada, Placer, Plumas, Shasta and Sutter and in Washoe and Carson City Counties in Northern Nevada.
Moreover, the business activities of the Company currently are focused in the California counties of Butte, Lassen, Modoc, Nevada, Placer, Plumas, Shasta, Sutter and Tehama and in Washoe and Carson City Counties in Northern Nevada.
Management believes that the Bank met all its capital adequacy requirements as of December 31, 2024. The current and projected capital positions of the Bank and the impact of capital plans and long-term strategies are reviewed regularly by management. The Company policy is to maintain the Bank’s ratios above the prescribed well-capitalized ratios at all times.
Management believes that the Bank met all its capital adequacy requirements as of December 31, 2025. The current and projected capital positions of the Bank and the impact of capital plans and long-term strategies are reviewed regularly by management. The Company policy is to maintain the Bank’s ratios above the prescribed well-capitalized ratios at all times.
The Company also considered the impact of portfolio concentrations, changes in underwriting practices, and other risk factors that might influence its loss estimation process. Management believes that the allowance for credit losses at December 31, 2024, appropriately reflected expected credit losses inherent in the loan portfolio at that date.
The Company also considered the impact of portfolio concentrations, changes in underwriting practices, and other risk factors that might influence its loss estimation process. Management believes that the allowance for credit losses at December 31, 2025, appropriately reflected expected credit losses inherent in the loan portfolio at that date.
Based upon the analysis of available evidence, management has determined that it is "more likely than not" that all deferred income tax assets as of December 31, 2024 and 2023 will be fully realized and therefore no valuation allowance was recorded.
Based upon the analysis of available evidence, management has determined that it is "more likely than not" that all deferred income tax assets as of December 31, 2025 and 2024 will be fully realized and therefore no valuation allowance was recorded.
Loans indexed to the prime interest rate were approximately 21% of the Company’s variable rate loan portfolio on December 31, 2024; these loans reprice within one day to three months of a change in the prime rate. The remainder of the Company's variable rate loans mostly consist of commercial real estate loans tied to U.S.
Loans indexed to the prime interest rate were approximately 21% of the Company’s variable rate loan portfolio on December 31, 2025; these loans reprice within one day to three months of a change in the prime rate. The remainder of the Company's variable rate loans mostly consist of commercial real estate loans tied to U.S.
At both January 1, 2023, the adoption and implementation date of ASC Topic 326, and December 31, 2024, the Company utilized a reasonable and supportable forecast period of approximately four quarters and obtained the forecast data from publicly available sources.
At both January 1, 2023, the adoption and implementation date of ASC Topic 326, and December 31, 2025, the Company utilized a reasonable and supportable forecast period of approximately four quarters and obtained the forecast data from publicly available sources.
It is the policy of management to make additions to the allowance for credit losses so that it remains appropriate to absorb the inherent risk of loss in the portfolio. Management believes that the allowance on December 31, 2024, is appropriate.
It is the policy of management to make additions to the allowance for credit losses so that it remains appropriate to absorb the inherent risk of loss in the portfolio. Management believes that the allowance on December 31, 2025, is appropriate.
At December 31, 2024, the Company’s and the Bank’s capital ratios exceeded the thresholds necessary to be considered “well capitalized” under the Basel III framework. 40 Table of Contents Under the FRB’s Small Bank Holding Company and Savings and Loan Holding Company Policy Statement (the “Policy Statement”), qualifying bank holding companies with less than $3 billion in consolidated assets are exempt from the Basel III consolidated capital rules.
At December 31, 2025, the Company’s and the Bank’s capital ratios exceeded the thresholds necessary to be considered “well capitalized” under the Basel III framework. 41 Table of Contents Under the FRB’s Small Bank Holding Company and Savings and Loan Holding Company Policy Statement (the “Policy Statement”), qualifying bank holding companies with less than $3 billion in consolidated assets are exempt from the Basel III consolidated capital rules.
It pertains to the Company's financial condition, changes in financial condition and results of operations as of December 31, 2024 and 2023 and for each of the three years in the period ended December 31, 2024.
It pertains to the Company's financial condition, changes in financial condition and results of operations as of December 31, 2025 and 2024 and for each of the three years in the period ended December 31, 2025.
Securities classified as available-for-sale may be sold to implement the Company's asset/liability management strategies and in response to changes in interest rates, prepayment rates and similar factors. 37 Table of Contents The following table summarizes the maturities of the Company's securities at their carrying value, which represents fair value, and their weighted average tax equivalent yields at December 31, 2024.
Securities classified as available-for-sale may be sold to implement the Company's asset/liability management strategies and in response to changes in interest rates, prepayment rates and similar factors. 38 Table of Contents The following table summarizes the maturities of the Company's securities at their carrying value, which represents fair value, and their weighted average tax equivalent yields at December 31, 2025.
The following tables present the activity in the allowance for credit losses and the reserve for unfunded commitments during the twelve months ended December 31, 2024, and 2023 (in thousands).
The following tables present the activity in the allowance for credit losses and the reserve for unfunded commitments during the twelve months ended December 31, 2025, and 2024 (in thousands).
In the fourth quarter of 2023 we terminated our indirect automobile loan program. Ending this program, which was our lowest yielding loan segment, also improved our loan loss risk profile since this program had historically higher charge-off rates.
In the fourth quarter of 2023 we terminated our indirect automobile loan program. Ending this program, which was our lowest yielding loan segment, also improved our loan loss risk profile since this program had historically higher charge-off rates. Terminating this program also improved our consumer compliance risk profile.
Treasury rates and reprice every five years. Approximately 76% of the variable rate loans are indexed to the five-year T-Bill rate and reprice every five years.
Treasury rates and reprice every five years. Approximately 75% of the variable rate loans are indexed to the five-year T-Bill rate and reprice every five years.
In determining the allowance for credit losses, accruing loans with similar risk characteristics are generally evaluated collectively. The Company's policy is that loans designated as nonaccrual no longer share risk characteristics similar to other loans evaluated collectively and as such, all nonaccrual loans are individually evaluated for reserves.
In determining the allowance for credit losses, accruing loans with similar risk characteristics are generally evaluated collectively. The Company's policy is that loans designated as nonaccrual no longer share risk characteristics similar to other loans evaluated collectively and as such, all nonaccrual loans, in excess of $100,000, are individually evaluated for reserves.
(2) Average nonaccrual loan balances of $4.4 million for 2024, $3.0 million for 2023 and $2.8 million for 2022 are included in average loan balances for computational purposes. (3) Loan origination fees and costs are included in interest income as adjustments of the loan yields over the life of the loan using the interest method.
(2) Average nonaccrual loan balances of $9.2 million for 2025, $4.4 million for 2024 and $3.0 million for 2023 are included in average loan balances for computational purposes. (3) Loan origination fees and costs are included in interest income as adjustments of the loan yields over the life of the loan using the interest method.
As of December 31, 2024 the Bank's nonaccrual loans comprised the entire population of loans individually evaluated.
As of December 31, 2025 and December 31, 2024, the Bank's nonaccrual loans comprised the entire population of loans individually evaluated.
At December 31, 2024 the Company could borrow up to $116 million at the Discount Window secured by investment securities with a fair value of $120 million. In addition to its FHLB borrowing line and the Discount Window, the Company has unsecured short-term borrowing agreements with two of its correspondent banks in the amounts of $50 million and $20 million.
At December 31, 2025, the Company could borrow up to $39 million at the Discount Window secured by investment securities with a fair value of $41 million. In addition to its FHLB borrowing line and the Discount Window, the Company has unsecured short-term borrowing agreements with two of its correspondent banks in the amounts of $50 million and $20 million.
Loan interest income includes net (costs)/ loan fees of ($1.4 million), ($1.3 million) and $234 thousand for 2024, 2023 and 2022, respectively. (4) Net interest spread represents the average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities.
Loan interest income includes net costs of $988 thousand, $1.4 million and $1.3 million for 2025, 2024 and 2023, respectively. (4) Net interest spread represents the average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities.
At December 31, 2024 and December 31, 2023, approximately 77% and 78%, respectively, of the Company's loan portfolio was comprised of variable rate loans.
At December 31, 2025, and December 31, 2024, approximately 80% and 77%, respectively, of the Company's loan portfolio was comprised of variable rate loans.
During the year ended December 31, 2024, non-interest income totaled $8.8 million, a decrease of $1.9 million from the year ended December 31, 2023. The largest component of this decrease was a $1.7 million gain on termination of our interest rate swaps during 2023.
During the year ended December 31, 2024, non-interest income totaled $8.8 million, a decrease of $1.9 million from the year ended December 31, 2023. The largest component of this decrease was a $1.7 million gain on termination of our interest rate swaps during 2023 which is included in other income in the above table.
The Company paid a quarterly cash dividend of $0.27 per share on November 15, 2024, August 15, 2024, May 15, 2024 and February 15, 2024, and a quarterly cash dividend of $0.25 per share on November 15, 2023, August 15, 2023, May 15, 2023, and February 15, 2023. Capital Standards.
The Company paid a quarterly cash dividend of $0.30 per share on November 17, 2025, August 15, 2025, May 15, 2025, and February 17, 2025, and a quarterly cash dividend of $0.27 per share on February 15, 2024, May 15, 2024, August 15, 2024, and November 15, 2024. Capital Standards.
The return on average equity decreased from 23.4% during 2023 to 17.2% during 2024. 25 Table of Contents Results of Operations Net Interest Income The following table presents, for the years indicated, the distribution of consolidated average assets, liabilities and shareholders' equity. Average balances are based on average daily balances.
The return on average equity decreased from 17.2% during 2024 to 13.6% during 2025. 27 Table of Contents Results of Operations Net Interest Income The following table presents, for the years indicated, the distribution of consolidated average assets, liabilities and shareholders' equity. Average balances are based on average daily balances.
The return on average assets was 1.74% for the twelve months ended December 31, 2024, down from 1.88% for the twelve months ended December 31, 2023.
The return on average assets was 1.52% for the twelve months ended December 31, 2025, down from 1.74% for the twelve months ended December 31, 2024.
This is consistent with market conditions and an increase in higher rate public entity money market accounts. Net interest margin for the year ended December 31, 2024 increased 8 basis points to 4.79%, up from 4.71% during 2023. 2023 compared to 2022.
This is consistent with market conditions and an increase in higher rate public entity money market accounts. Net interest margin for the year ended December 31, 2024 increased 8 basis points to 4.79%, up from 4.71% during 2023. 30 Table of Contents Provision for credit losses.
The Company estimates that it has approximately $496 million in uninsured deposits which includes uninsured deposits of Plumas Bancorp. Of this amount, $128 million represents deposits that are collateralized such as deposits of states, municipalities and tribal accounts. Uninsured amounts are estimated based on the portion of the account balances in excess of FDIC insurance limits.
On December 31, 2024, the Company estimates that it has approximately $496 million in uninsured deposits representing 36% of total deposits. Of this amount, $128 million represents deposits that are collateralized such as deposits of states, municipalities, and tribal accounts. Uninsured amounts are estimated based on the portion of the account balances in excess of FDIC insurance limits.
Annual review of commercial credit lines, letters of credit and ongoing monitoring of outstanding balances reduces the risk of loss associated with these commitments. As of December 31, 2024, the Company had $155.4 million in unfunded loan commitments and no letters of credit.
Annual review of commercial credit lines, letters of credit and ongoing monitoring of outstanding balances reduces the risk of loss associated with these commitments. As of December 31, 2025, the Company had $249 million in unfunded loan commitments and $1.6 million in letters of credit.
Where the collectability of the principal or interest on a loan is considered to be doubtful by management, it is placed on nonaccrual status prior to becoming 90 days delinquent. Nonperforming loans at December 31, 2024 were $4.1 million, a decrease of $0.7 million from $4.8 million at December 31, 2023.
Where the collectability of the principal or interest on a loan is considered to be doubtful by management, it is placed on nonaccrual status prior to becoming 90 days delinquent. Nonperforming loans were $15.1 million on December 31, 2025, and $4.1 million on December 31, 2024.
Each Lease Agreement has an initial term of fifteen years with one 15-year renewal option. The Lease Agreements provide for an annual rent of approximately $2.4 million in the aggregate for the nine properties increased by two percent (2%) per annum for each year during the initial Term.
The Lease Agreements provide for an annual rent of approximately $2.4 million in the aggregate for the nine properties increased by two percent (2%) per annum for each year during the initial Term.
Net interest income increased by $3.9 million to $73.7 million during 2024 from $69.8 million for the year ended ​December 31, 2023. This increase in net interest income resulted from an increase in interest income of $9.7 million partially offset by an increase in interest expense of $5.8 million.
Net interest income increased by $14.1 million to $87.8 million during 2025 from $73.7 million for the year ended ​December 31, 2024. This increase in net interest income resulted from an increase in interest income of $17.3 million partially offset by an increase in interest expense of $3.2 million.
Deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the reported amount of assets and liabilities and their tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.
Interest and fees on loans increased by $6.5 million related to an increase in average balance and yield. The average balance of loans during the twelve months ended December 31, 2024 was $989 million, an increase of $55 million from $934 million during 2023.
The average balance of loans during the twelve months ended December 31, 2024 was $989 million, an increase of $55 million from $934 million during 2023. The average yield on loans increased by 32 basis points from 5.89% during 2023 to 6.21% during 2024.
In addition, the concentration of the Company's operations in these areas of Northeastern California and Northwestern Nevada exposes it to greater risk than other banking companies with a wider geographic base in the event of catastrophes, such as earthquakes, fires and floods in these regions.
In addition, the concentration of the Company's operations in these areas of Northeastern California and Northwestern Nevada exposes it to greater risk than other banking companies with a wider geographic base in the event of catastrophes, such as earthquakes, fires and floods in these regions. Commercial real estate loans (“CRE”) comprised 67% of the lending portfolio at December 31, 2025.
There were no Federal funds sold at December 31, 2024, and December 31, 2023; however, the Bank maintained interest earning balances at the Federal Reserve Bank totaling $47.2 million at December 31, 2024 and $52.9 million at December 31, 2023. The balance, on December 31, 2024, earns interest at the rate of 4.40%.
There were no Federal funds sold at December 31, 2025, and December 31, 2024; however, the Bank maintained interest earning balances at the Federal Reserve Bank totaling $39 million at December 31, 2025, and $47 million at December 31, 2024. The balance on December 31, 2025, earns interest at the rate of 3.65%.
The average yield on loans increased by 32 basis points from 5.89% during 2023 to 6.21% during 2024. Interest on investment securities increased by $2.7 million related to an increase in yield of 64 basis points to 3.93%. The increase in investment yields is consistent with the increase in market rates and the partial restructuring of the investment portfolio.
Interest on investment securities increased by $2.7 million related to an increase in yield of 64 basis points to 3.93%. The increase in investment yield is consistent with the increase in market rates and the partial restructuring of the investment portfolio.
(2) The rate change in net interest income represents the change in rate multiplied by the previous year’s average balance. (3) The mix change in net interest income represents the change in average balance multiplied by the change in rate. 27 Table of Contents 2024 compared to 2023. Net interest income is the difference between interest income and interest expense.
(2) The rate change in net interest income represents the change in rate multiplied by the previous year’s average balance. (3) The mix change in net interest income represents the change in average balance multiplied by the change in rate. 29 Table of Contents 2025 compared to 2024.
While real estate mortgage, agricultural, commercial and consumer lending remain the foundation of the Company's historical loan mix, some changes in the mix have occurred due to the changing economic environment and the resulting change in demand for certain loan types. 32 Table of Contents The following table sets forth the maturity of gross loan categories as of December 31, 2024.
While real estate mortgage, agricultural, commercial and consumer lending remain the foundation of the Company's historical loan mix, some changes in the mix have occurred due to the changing economic environment and the resulting change in demand for certain loan types.
Non-interest expense increased by $4.8 million from $37.5 million during 2023 to $42.3 million during the twelve months ending December 31, 2024. The provision for income taxes totaled $10.4 million a decrease of $53 thousand from 2023. Total assets at December 31, 2024 were $1.6 billion, an increase of $13 million from December 31, 2023.
Non-interest expense increased by $9.6 million from $42.3 million during 2024 to $51.9 million during the twelve months ending December 31, 2025. The provision for income taxes totaled $10.0 million, a decrease of $407 thousand from 2024. Total assets at December 31, 2025 were $2.2 billion, an increase of $615 million from December 31, 2024.
During 2024 non-interest expense increased by $4.7 million to $42.3 million. The largest components of this increase were a $1.4 million increase in salary and benefit expenses, a $2.3 million increase in occupancy and equipment expenses and a $643 thousand increase in other non-interest expenses.
The largest components of this increase were a $1.4 million increase in salary and benefit expenses, a $2.3 million increase in occupancy and equipment expenses and a $643 thousand increase in other non-interest expenses. The largest increases in salary and benefit expense were $695 thousand in salary expense and $401 thousand in commission expense.
To estimate expected losses the Company generally utilizes historical loss trends and the remaining contractual lives of the loan portfolios to determine estimated credit losses through a reasonable and supportable forecast period.
Cash received on previously charged off amounts is recorded as a recovery to the allowance. To estimate expected losses the Company generally utilizes historical loss trends and the remaining contractual lives of the loan portfolios to determine estimated credit losses through a reasonable and supportable forecast period.
Overview The Company recorded net income of $28.6 million for the year ended December 31, 2024, a decrease of $1.2 million or 4% from net income of $29.8 million during the year ended December 31, 2023. Pretax income decreased by $1.2 million, or 3%, to $39.0 million in 2024 from $40.2 million during the year ended December 31, 2023.
Overview The Company recorded net income of $29.6 million for the year ended December 31, 2025, an increase of $1.0 million or 4% from net income of $28.6 million during the year ended December 31, 2024. Pretax income increased by $591 thousand, or 2%, to $39.6 million in 2025 from $39.0 million during the year ended December 31, 2024.
Total investment securities were $437.7 million as of December 31, 2024, and $489.2 million at December 31, 2023. Unrealized losses on available-for-sale investment securities totaling $35.7 million were recorded, net of $10.6 million in tax benefits, as accumulated other comprehensive loss within shareholders' equity at December 31, 2024.
Total investment securities were $477 million as of December 31, 2025, and $438 million at December 31, 2024. Unrealized losses on available-for-sale investment securities totaling $14.9 million were recorded, net of $4.4 million in tax benefits, as accumulated other comprehensive loss within shareholders' equity at December 31, 2025.
As of December 31, 2024, the Bank's nonaccrual loans in excess of $100,000 comprised the entire population of loans individually evaluated.
As of December 31, 2025, the Bank's nonaccrual loans comprised the entire population of loans individually evaluated.
During 2024 we recorded a provision for credit losses of $1.2 million consisting of a provision for credit losses on loans of $1.4 million and a decrease in the reserve for unfunded commitments of $179 thousand.
During 2025 we recorded a provision for credit losses of $6.8 million, consisting of a provision for credit losses on loans of $6.9 million and a decrease in the reserve for unfunded commitments of $40 thousand.
The following table sets forth the Bank's actual capital amounts and ratios (dollar amounts in thousands): Minimum Amount of Capital Required To be Well-Capitalized For Capital Under Prompt Actual Adequacy Purposes (1) Corrective Provisions Amount Ratio Amount Ratio Amount Ratio December 31, 2024 Common Equity Tier 1 Ratio $ 199,308 17.3 % $ 51,981 4.5 % $ 75,084 6.5 % Tier 1 Leverage Ratio 199,308 11.9 % 66,856 4.0 % 83,570 5.0 % Tier 1 Risk-Based Capital Ratio 199,308 17.3 % 69,308 6.0 % 92,411 8.0 % Total Risk-Based Capital Ratio 213,124 18.5 % 92,411 8.0 % 115,514 10.0 % December 31, 2023 Common Equity Tier 1 Ratio $ 179,194 15.7 % $ 51,294 4.5 % $ 74,092 6.5 % Tier 1 Leverage Ratio 179,194 10.8 % 66,348 4.0 % 82,935 5.0 % Tier 1 Risk-Based Capital Ratio 179,194 15.7 % 68,392 6.0 % 91,190 8.0 % Total Risk-Based Capital Ratio 192,860 16.9 % 91,190 8.0 % 113,987 10.0 % (1) Does not include amounts required to maintain the capital conservation buffer under the new capital rules.
The following table sets forth the Bank's actual capital amounts and ratios (dollar amounts in thousands): Minimum Amount of Capital Required To be Well-Capitalized For Capital Under Prompt Actual Adequacy Purposes (1) Corrective Provisions Amount Ratio Amount Ratio Amount Ratio December 31, 2025 Common Equity Tier 1 Ratio $ 247,747 14.8 % $ 75,265 4.5 % $ 108,717 6.5 % Tier 1 Leverage Ratio 247,747 11.1 % 89,237 4.0 % 111,547 5.0 % Tier 1 Risk-Based Capital Ratio 247,747 14.8 % 100,354 6.0 % 133,805 8.0 % Total Risk-Based Capital Ratio 268,425 16.0 % 133,805 8.0 % 167,257 10.0 % December 31, 2024 Common Equity Tier 1 Ratio $ 199,308 17.3 % $ 51,981 4.5 % $ 75,084 6.5 % Tier 1 Leverage Ratio 199,308 11.9 % 66,856 4.0 % 83,570 5.0 % Tier 1 Risk-Based Capital Ratio 199,308 17.3 % 69,308 6.0 % 92,411 8.0 % Total Risk-Based Capital Ratio 213,124 18.5 % 92,411 8.0 % 115,514 10.0 % (1) Does not include amounts required to maintain the capital conservation buffer under the new capital rules.
Securities sold under agreements to repurchase totaling $22.1 million and $23.1 million at December 31, 2024 and December 31, 2023, respectively, are secured by U.S. Government agency securities with a carrying amount of $38.5 million and $34.1 million at December 31, 2024 and December 31, 2023, respectively.
Securities sold under agreements to repurchase totaling $97.9 million and $22.1 million at December 31, 2025, and December 31, 2024, respectively, are secured by U.S. Government agency securities with a carrying amount of $112.1 million and $38.5 million at December 31, 2025 and December 31, 2024, respectively. The increase in repurchase agreements is mostly related to the acquisition of Cornerstone.
Of the total unfunded commitments at December 31, 2024, $91.7 million were secured by real estate, of which $37.8 million was secured by commercial real estate and $53.9 million was secured by residential real estate mostly in the form of equity lines of credit.
Of the total unfunded commitments at December 31, 2025, $117 million was secured by real estate, of which $45 million was secured by commercial real estate and $72 million was secured by residential real estate mostly in the form of equity lines of credit.
Percent of Percent of Loans in Loans in Balance at Each Balance at Each End of Category to End of Category to (dollars in thousands) Period Total Loans Period Total Loans 12/31/2024 12/31/2024 12/31/2023 12/31/2023 Commercial $ 77,444 7.6 % $ 74,271 7.8 % Agricultural 118,866 11.7 % 129,389 13.5 % Real estate – residential 11,539 1.1 % 11,914 1.2 % Real estate – commercial 646,378 63.7 % 544,339 56.8 % Real estate – construction & land development 53,503 5.3 % 57,717 6.0 % Equity Lines of Credit 37,888 3.7 % 37,871 4.0 % Auto 64,734 6.4 % 98,132 10.2 % Other 5,072 0.5 % 4,931 0.5 % Total $ 1,015,424 100 % $ 958,564 100 % The Company’s real estate related loans, including real estate mortgage loans, real estate construction and land development loans, consumer equity lines of credit, and agricultural loans secured by real estate, comprised 82% of the total loan portfolio at December 31, 2024.
Percent of Percent of Loans in Loans in Balance at Each Balance at Each End of Category to End of Category to (dollars in thousands) Period Total Loans Period Total Loans 12/31/2025 12/31/2025 12/31/2024 12/31/2024 Commercial $ 167,851 11.1 % $ 77,444 7.6 % Agricultural 157,526 10.4 % 118,866 11.7 % Real estate – residential 33,116 2.2 % 11,539 1.1 % Real estate – commercial 1,002,627 66.3 % 646,378 63.7 % Real estate – construction & land development 40,168 2.7 % 53,503 5.3 % Equity Lines of Credit 53,647 3.5 % 37,888 3.7 % Auto 39,595 2.6 % 64,734 6.4 % Other 17,526 1.2 % 5,072 0.5 % Total $ 1,512,056 100 % $ 1,015,424 100 % The Company’s real estate related loans, including real estate mortgage loans, real estate construction and land development loans, consumer equity lines of credit, and agricultural loans secured by real estate, comprised 82% of the total loan portfolio at December 31, 2025.
This agreement was terminated in August 2024. We continue to review opportunities for the sale of the Non- Branch Offices. Concurrently with the closing of the sale of the branch properties, we entered into triple net lease agreements (the “Lease Agreements”) pursuant to which Plumas Bank leased back each of the properties sold.
This agreement was terminated in August 2024. Concurrently with the closing of the sale of the branch properties, we entered into triple net lease agreements (the “Lease Agreements”) pursuant to which Plumas Bank leased back each of the properties sold. Each Lease Agreement has an initial term of fifteen years with one 15-year renewal option.
The Company is a member of the Federal Home Loan Bank of San Francisco (FHLB) and can borrow up to $248 million from the FHLB secured by commercial and residential mortgage loans with carrying values totaling $433 million. The Company is required to hold FHLB stock as a condition of membership.
The Company is a member of the Federal Home Loan Bank of San Francisco (FHLB) and can borrow up to $400 million from the FHLB secured by commercial and residential mortgage loans with carrying values totaling $659 million. Based on its current level of FHLB stock holdings the Company can borrow up to $326 million.
The expected cash flows from all significant new or renewed income producing property commitments are stress tested to reflect the risks in varying interest rates, vacancy rates and rental rates.
The Company requires collateral values in excess of the loan amounts, cash flows in excess of expected debt service requirements and equity investment in the project. The expected cash flows from all significant new or renewed income producing property commitments are stress tested to reflect the risks in varying interest rates, vacancy rates and rental rates.
Maturity Distribution of Estimated Uninsured Time Deposits December 31, December 31, (dollars in thousands) 2024 2023 Remaining maturity: Three months or less $ 11,697 6,044 After three through six months 6,712 10,097 After six through twelve months 4,452 5,428 After twelve months 61 757 Total $ 22,922 $ 22,326 Short-term Borrowing Arrangements.
Maturity Distribution of Estimated Uninsured Time Deposits December 31, December 31, (dollars in thousands) 2025 2024 Remaining maturity: Three months or less $ 18,804 11,697 After three through six months 25,834 6,712 After six through twelve months 15,891 4,452 After twelve months 45,909 61 Total $ 106,438 $ 22,922 Short-term Borrowing Arrangements.
Year ended December 31, 2024 2023 2022 Interest Rates Interest Rates Interest Rates Average income/ earned/ Average income/ earned/ Average income/ earned/ balance expense paid balance expense paid balance expense paid (dollars in thousands) Assets Interest-bearing cash and due from banks and deposits in banks $ 93,122 $ 4,993 5.36 % $ 86,897 $ 4,387 5.05 % $ 305,095 $ 4,923 1.61 % Taxable investment securities 370,228 15,308 4.13 % 338,941 11,525 3.40 % 258,732 6,409 2.48 % Non-taxable investment securities (1) 84,369 2,574 3.05 % 123,002 3,681 2.99 % 103,366 2,722 2.63 % Total loans (2)(3) 989,313 61,450 6.21 % 933,997 54,999 5.89 % 865,499 45,704 5.28 % Total earning assets 1,537,032 84,325 5.49 % 1,482,837 74,592 5.03 % 1,532,692 59,758 3.90 % Cash and due from banks 27,077 26,100 40,520 Other assets 85,232 78,212 69,683 Total assets $ 1,649,341 $ 1,587,149 $ 1,642,895 Liabilities and shareholders’ equity Money market deposits $ 226,372 $ 2,472 1.09 % $ 227,819 $ 1,367 0.60 % 254,723 $ 284 0.11 % Savings deposits 324,000 705 0.22 % 375,377 795 0.21 % 400,314 376 0.09 % Time deposits 96,131 2,739 2.85 % 74,570 1,568 2.10 % 59,016 163 0.28 % Other borrowings 97,691 4,676 4.79 % 17,945 896 4.99 % - - 0.00 % Junior subordinated debentures - - 0.00 % 2,268 141 6.22 % 10,310 359 3.48 % Repurchase agreements and other 19,119 42 0.22 % 18,576 31 0.17 % 12,327 67 0.54 % Total interest-bearing liabilities 763,313 10,634 1.39 % 716,555 4,798 0.67 % 736,690 1,249 0.17 % Noninterest bearing demand deposits 684,909 726,191 773,293 Other liabilities 34,864 17,419 12,044 Shareholders’ equity 166,255 126,984 120,868 Total liabilities and shareholders’ equity $ 1,649,341 $ 1,587,149 $ 1,642,895 Net interest income $ 73,691 $ 69,794 $ 58,509 Net interest spread (4) 4.09 % 4.36 % 3.73 % Net interest margin (5) 4.79 % 4.71 % 3.82 % (1) Interest income is reflected on an actual basis and is not computed on a tax-equivalent basis.
Year ended December 31, 2025 2024 2023 Interest Rates Interest Rates Interest Rates Average income/ earned/ Average income/ earned/ Average income/ earned/ balance expense paid balance expense paid balance expense paid (dollars in thousands) Assets Interest-bearing cash and due from banks and deposits in banks $ 75,123 $ 3,278 4.36 % $ 93,122 $ 4,993 5.36 % $ 86,897 $ 4,387 5.05 % Taxable investment securities 385,448 17,226 4.47 % 370,228 15,308 4.13 % 338,941 11,525 3.40 % Non-taxable investment securities (1) 76,172 2,268 2.98 % 84,369 2,574 3.05 % 123,002 3,681 2.99 % Total loans (2)(3) 1,252,139 78,875 6.30 % 989,313 61,450 6.21 % 933,997 54,999 5.89 % Total earning assets 1,788,882 101,647 5.68 % 1,537,032 84,325 5.49 % 1,482,837 74,592 5.03 % Cash and due from banks 30,883 27,077 26,100 Other assets 126,573 85,232 78,212 Total assets $ 1,946,338 $ 1,649,341 $ 1,587,149 Liabilities and shareholders’ equity Money market deposits $ 364,152 $ 7,053 1.94 % $ 226,372 $ 2,472 1.09 % 227,819 $ 1,367 0.60 % Savings deposits 311,136 1,007 0.32 % 324,000 705 0.22 % 375,377 795 0.21 % Time deposits 164,998 3,980 2.41 % 96,131 2,739 2.85 % 74,570 1,568 2.10 % Other borrowings 22,263 1,061 4.77 % 97,691 4,676 4.79 % 17,945 896 4.99 % Junior subordinated debentures - - 0.00 % - - 0.00 % 2,268 141 6.22 % Repurchase agreements and other 52,933 776 1.47 % 19,119 42 0.22 % 18,576 31 0.17 % Total interest-bearing liabilities 915,482 13,877 1.52 % 763,313 10,634 1.39 % 716,555 4,798 0.67 % Noninterest bearing demand deposits 772,478 684,909 726,191 Other liabilities 41,216 34,864 17,419 Shareholders’ equity 217,162 166,255 126,984 Total liabilities and shareholders’ equity $ 1,946,338 $ 1,649,341 $ 1,587,149 Net interest income $ 87,770 $ 73,691 $ 69,794 Net interest spread (4) 4.16 % 4.10 % 4.36 % Net interest margin (5) 4.91 % 4.79 % 4.71 % (1) Interest income is reflected on an actual basis and is not computed on a tax-equivalent basis.
The largest increases in salary and benefit expense were $695 thousand in salary expense and $401 thousand in commission expense. The increase in salary expense relates to both an increase in FTE and merit and promotional increases, while the increase in commission is related to increased SBA loan production.
The increase in salary expense relates to both an increase in FTE and merit and promotional increases, while the increase in commission is related to increased SBA loan production. These were partially offset by an increase in the deferral of loan origination costs of $414 thousand related to an increase in SBA loan production.
The following tables show the distribution of deposits by type at December 31, 2024 and 2023 and the average balance and rates paid on deposits for the three years ending December 31, 2024: Percent of Percent of Deposits in Deposits in Each Category Each Category Balance at End to Total Balance at End to Total of Period Deposits of Period Deposits (dollars in thousands) 12/31/2024 12/31/2024 12/31/2023 12/31/2023 Non-interest bearing $ 699,401 51.0 % $ 692,768 51.9 % Money Market 267,582 19.5 % 214,185 16.1 % Savings 309,929 22.6 % 335,050 25.1 % Time 94,189 6.9 % 91,652 6.9 % Total Deposits $ 1,371,101 100 % $ 1,333,655 100 % Average Balance Yields/Rates Average Balance Yields/Rates Average Balance Yields/Rates (dollars in thousands) 12/31/2024 12/31/2024 12/31/2023 12/31/2023 12/31/2022 12/31/2022 Non-interest bearing $ 684,909 $ 726,191 $ 773,293 Money Market 226,372 1.09 % 227,819 0.60 % 254,723 0.11 % Savings 324,000 0.22 % 375,377 0.21 % 400,314 0.09 % Time 96,131 2.85 % 74,570 2.10 % 59,016 0.28 % Total interest bearing $ 646,503 0.92 % $ 677,766 0.55 % $ 714,053 0.12 % 38 Table of Contents Deposits represent the Bank's primary source of funds.
The following tables show the distribution of deposits by type at December 31, 2025 and 2024 and the average balance and rates paid on deposits for the three years ending December 31, 2025: Percent of Percent of Deposits in Deposits in Each Category Each Category Balance at End to Total Balance at End to Total of Period Deposits of Period Deposits (dollars in thousands) 12/31/2025 12/31/2025 12/31/2024 12/31/2024 Non-interest bearing $ 848,986 46.9 % $ 699,401 51.0 % Money Market 440,552 24.3 % 267,582 19.5 % Savings 309,337 17.1 % 309,929 22.6 % Time 210,729 11.7 % 94,189 6.9 % Total Deposits $ 1,809,604 100 % $ 1,371,101 100 % Average Balance Yields/Rates Average Balance Yields/Rates Average Balance Yields/Rates (dollars in thousands) 12/31/2025 12/31/2025 12/31/2024 12/31/2024 12/31/2023 12/31/2023 Non-interest bearing $ 772,478 $ 684,909 $ 726,191 Money Market 364,152 1.94 % 226,372 1.09 % 227,819 0.60 % Savings 311,136 0.32 % 324,000 0.22 % 375,377 0.21 % Time 164,998 2.41 % 96,131 2.85 % 74,570 2.10 % Total interest bearing $ 840,286 1.43 % $ 646,503 0.92 % $ 677,766 0.55 % 39 Table of Contents Deposits represent the Bank's primary source of funds.
Years Ended December 31, Change during Year 2024 2023 2022 2024 2023 (dollars in thousands) Salaries and employee benefits $ 21,744 $ 20,320 $ 17,451 $ 1,424 $ 2,869 Occupancy and equipment 7,606 5,302 4,610 2,304 692 Outside service fees 4,576 4,496 4,057 80 439 Professional fees 1,407 1,258 1,282 149 (24 ) Advertising and promotion 1,030 941 673 89 268 Armored car and courier 876 767 675 109 92 Telephone and data communications 780 806 770 (26 ) 36 Deposit insurance 750 737 528 13 209 Director compensation, education and retirement 728 763 606 (35 ) 157 Business development 680 615 506 65 109 Loan collection costs 388 423 274 (35 ) 149 Amortization of Core Deposit Intangible 201 237 284 (36 ) (47 ) Other operating expense 1,508 865 874 643 (9 ) Total non-interest expense $ 42,274 $ 37,530 $ 32,590 $ 4,744 $ 4,940 2024 compared to 2023.
Years Ended December 31, Change during Year 2025 2024 2023 2025 2024 (dollars in thousands) Salaries and employee benefits $ 26,020 $ 21,744 $ 20,320 $ 4,276 $ 1,424 Occupancy and equipment 9,152 7,606 5,302 1,546 2,304 Outside service fees 5,615 4,576 4,496 1,039 80 Merger and acquisition expenses 1,963 - - 1,963 - Amortization of Core Deposit Intangible 1,300 201 237 1,099 (36 ) Professional fees 1,220 1,407 1,258 (187 ) 149 Advertising and promotion 1,145 1,030 941 115 89 Armored car and courier 1,004 876 767 128 109 Deposit insurance 871 750 737 121 13 Business development 831 680 615 151 65 Director compensation, education and retirement 706 728 763 (22 ) (35 ) Telephone and data communications 592 780 806 (188 ) (26 ) Loan collection costs 340 388 423 (48 ) (35 ) Other operating expense 1,095 1,508 865 (413 ) 643 Total non-interest expense $ 51,854 $ 42,274 $ 37,530 $ 9,580 $ 4,744 2025 compared to 2024.
The Company is a member of the Federal Home Loan Bank of San Francisco (FHLB) and can borrow up to $248 million from the FHLB secured by commercial and residential mortgage loans with carrying values totaling $433 million. The Company is also eligible to borrow at the FRB Discount Window.
The Company is a member of the Federal Home Loan Bank of San Francisco (FHLB) and can borrow up to $400 million from the FHLB secured by commercial and residential mortgage loans with carrying values totaling $659 million. Based on its current level of FHLB stock holdings the Company can borrow up to $326 million.
Allowance for Credit Losses December 31, 2024 December 31, 2023 Balance, beginning of period $ 12,867 $ 10,717 Impact of CECL adoption - 529 Provision charged to operations 1.375 2,575 Losses charged to allowance (2,039 ) (1,802 ) Recoveries 993 848 Balance, end of period $ 13,196 $ 12,867 Reserve for Unfunded Commitments December 31, 2024 December 31, 2023 Balance, beginning of period $ 799 $ 341 Impact of CECL adoption - 258 Provision charged to operations (179 ) 200 Balance, end of period $ 620 $ 799 These estimates are reviewed periodically and, as adjustments become necessary, they are reported in earnings in the periods in which they become known.
Allowance for Credit Losses December 31, 2025 December 31, 2024 Balance, beginning of period $ 13,196 $ 12,867 CECL Day 1 provision on acquired non-PCD loans 4,972 - Provision charged to operations 1,918 1,375 Reserve on PCD loans 315 - Losses charged to allowance (1,095 ) (2,039 ) Recoveries 653 993 Balance, end of period $ 19,959 $ 13,196 Reserve for Unfunded Commitments December 31, 2025 December 31, 2024 Balance, beginning of period $ 620 $ 799 Provision on acquired loans 351 - Recovery of provision for credit losses (391 ) (179 ) Balance, end of period $ 580 $ 620 These estimates are reviewed periodically and, as adjustments become necessary, they are reported in earnings in the periods in which they become known.
We sold $115 million in investment securities having a weighted average tax equivalent yield of 2.24% recording a $19.8 million loss on the sales. As part of the restructuring, beginning in December 2023 and ending on March 27, 2024, we purchased $120 million in investment securities having a weighted average tax equivalent yield of 5.25%.
We sold $115 million in investment securities having a weighted average tax equivalent yield of 2.24% recording a $19.8 million loss on the sales.
Additions to the allowance are expected to maintain the adequacy of the total allowance after credit losses and loan growth. Credit exposures determined to be uncollectible are charged against the allowance. Cash received on previously charged off amounts is recorded as a recovery to the allowance.
The allowance is established through a provision for credit losses which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance after credit losses and loan growth. Credit exposures determined to be uncollectible are charged against the allowance.
The investment portfolio at December 31, 2023 consisted of $6.9 million in U.S. Treasury securities, $351.9 million in securities of U.S. Government-sponsored agencies and U.S. Government agencies and 244 municipal securities totaling $130.4 million.
The investment portfolio at December 31, 2024, consisted of $350 million in securities of U.S. Government-sponsored agencies and U.S. Government agencies, and 170 municipal securities totaling $88 million.
This compares to $174.6 million in unfunded loan commitments and $108,000 in letters of credit at December 31, 2023. Of the $155.4 million in unfunded loan commitments, $92.7 million and $62.7 million represent commitments to commercial and consumer customers, respectively.
This compares to $155 million in unfunded loan commitments at December 31, 2024 and no letters of credit. Of the $249 million in unfunded loan commitments, $168 million and $81 million represent commitments to commercial and consumer customers, respectively.
Loan losses are charged to, and recoveries are credited to, the allowance for credit losses. The allowance for credit losses is maintained at a level deemed appropriate by management to provide for known and inherent risks in the loan portfolio.
The allowance for credit losses is maintained at a level deemed appropriate by management to provide for known and inherent risks in the loan portfolio. To estimate the Allowance for Credit Loss (ACL), the Company elected to use the Discounted Cash Flow (DCF) methodology.
Net interest income for the year ended December 31, 2023 was $69.8 million, an increase of $11.3 million from the $58.5 million earned during 2022. The increase in net interest income includes an increase of $14.8 million in interest income partially offset by an increase of $3.5 million in interest expense.
Net interest income was $87.8 million for the year ended December 31, 2025, an increase of $14.1 million from the same period in 2024. The increase in net interest income includes an increase of $17.3 million in interest income partially offset by an increase of $3.2 million in interest expense.
S ALES/LEASEBACK AND i NVESTMENT R ESTRUCTURING On January 19, 2024, Plumas Bank entered into two agreements for the purchase and sale of real property (the “Sale Agreements”). One Sale Agreement provided for the sale to MountainSeed of nine properties owned and operated by Plumas Bank as branches for an aggregate cash purchase price of approximately $25.7 million.
One Sale Agreement provided for the sale to MountainSeed of nine properties owned and operated by Plumas Bank as branches for an aggregate cash purchase price of approximately $25.7 million.
Years Ended December 31, Change during Year 2024 2023 2022 2024 2023 (dollars in thousands) Gain on sale of buildings $ 19,854 $ - $ - $ 19,854 $ - Interchange revenue 3,130 3,419 3,401 (289 ) 18 Service charges on deposit accounts 2,988 2,789 2,464 199 325 Loan servicing fees 756 872 893 (116 ) (21 ) FHLB Dividends 546 418 293 128 125 Earnings on bank owned life insurance policies, net 409 417 391 (8 ) 26 Gain on sale of loans 37 234 2,696 (197 ) (2,462 ) Gain on termination of swaps - 1,707 - (1,707 ) 1,707 Loss on sale of investments (19,817 ) - - (19,817 ) - Other income 877 866 912 11 (46 ) Total non-interest income $ 8,780 $ 10,722 $ 11,050 $ (1,942 ) $ (328 ) 2024 compared to 2023.
Non-Interest Income The following table sets forth the components of non-interest income for the years ended December 31, 2025, 2024 and 2023 Years Ended December 31, Change during Year 2025 2024 2023 2025 2024 (dollars in thousands) Gain on sale of buildings $ 5,540 $ 19,854 $ - $ (14,314 ) $ 19,854 Interchange revenue 3,263 3,130 3,419 133 (289 ) Service charges on deposit accounts 3,133 2,988 2,789 145 199 Earnings on bank owned life insurance policies, net (BOLI) 741 409 417 332 (8 ) FHLB Dividends 658 546 418 112 128 Loan servicing fees 641 756 872 (115 ) (116 ) Gain on sale of loans - 37 234 (37 ) (197 ) Loss on sale of investments (5,811 ) (19,817 ) - 14,006 (19,817 ) Other income 2,361 877 2,573 1,484 (1,696 ) Total non-interest income $ 10,526 $ 8,780 $ 10,722 $ 1,746 $ (1,942 ) 2025 compared to 2024.
At least quarterly, the Company evaluates each specific reserve and if it determines that the loss represented by the specific reserve is uncollectable it records a charge-off for the uncollectable portion. Specific reserves related to collateral dependent loans totaled $29,000 and $28,000 at December 31, 2024, and December 31, 2023, respectively.
The allowance for credit losses totaled $20.0 million at December 31, 2025, and $13.2 million at December 31, 2024. At least quarterly, the Company evaluates each specific reserve and if it determines that the loss represented by the specific reserve is uncollectable it records a charge-off for the uncollectable portion.
Terminating this program also improved our consumer compliance risk profile. 31 Table of Contents As shown in the following table the Company's largest lending categories are commercial real estate loans, auto loans, agricultural loans and commercial loans.
Ending this program, which was our lowest yielding loan segment, also improved our loan loss risk profile since this program had historically higher charge-off rates. Terminating this program also improved our consumer compliance risk profile. As shown in the following table the Company's largest lending categories are commercial real estate loans, agricultural loans and commercial loans.
(5) Net interest margin is computed by dividing net interest income by total average earning assets. 26 Table of Contents The following table sets forth changes in interest income and interest expense, for the years indicated and the amount of change attributable to variances in volume, rates and the combination of volume and rates based on the relative changes of volume and rates: 2024 compared to 2023 2023 compared to 2022 Increase (decrease) due to change in: Increase (decrease) due to change in: Average Average Average Average Volume(1) Rate(2) Mix(3) Total Volume(1) Rate(2) Mix(3) Total (dollars in thousands) Interest-earning assets: Interest-bearing cash and due from banks and deposits in banks $ 314 $ 272 $ 20 $ 606 $ (3,521 ) $ 10,480 $ (7,495 ) $ (536 ) Taxable investment securities 1,064 2,489 230 3,783 1,987 2,389 740 5,116 Non-taxable investment securities (1,156 ) 72 (23 ) (1,107 ) 517 371 71 959 Loans 3,257 3,015 179 6,451 3,569 5,535 191 9,295 Total interest income 3,479 5,848 406 9,733 2,552 18,775 (6,493 ) 14,834 Interest-bearing liabilities: Money market deposits (9 ) 1,121 (7 ) 1,105 (30 ) 1,244 (131 ) 1,083 Savings deposits (109 ) 22 (3 ) (90 ) (24 ) 472 (29 ) 419 Time deposits 454 556 161 1,171 43 1,078 284 1,405 Other borrowings 3,981 (37 ) (164 ) 3,780 - - 896 896 Junior subordinated debentures (141 ) - - (141 ) (280 ) 282 (220 ) (218 ) Repurchase agreements and other 1 10 - 11 34 (46 ) (24 ) (36 ) Total interest expense 4,177 1,672 (13 ) 5,836 (257 ) 3,030 776 3,549 Net interest income $ (698 ) $ 4,176 $ 419 $ 3,897 $ 2,809 $ 15,745 $ (7,269 ) $ 11,285 (1) The volume change in net interest income represents the change in average balance multiplied by the previous year’s rate.
(5) Net interest margin is computed by dividing net interest income by total average earning assets. 28 Table of Contents The following table sets forth changes in interest income and interest expense, for the years indicated and the amount of change attributable to variances in volume, rates and the combination of volume and rates based on the relative changes of volume and rates: 2025 compared to 2024 2024 compared to 2023 Increase (decrease) due to change in: Increase (decrease) due to change in: Average Average Average Average Volume(1) Rate(2) Mix(3) Total Volume(1) Rate(2) Mix(3) Total (dollars in thousands) Interest-earning assets: Interest-bearing cash and due from banks and deposits in banks $ (965 ) $ (930 ) $ 180 $ (1,715 ) $ 314 $ 272 $ 20 $ 606 Taxable investment securities 629 1,238 51 1,918 1,064 2,489 230 3,783 Non-taxable investment securities (250 ) (62 ) 6 (306 ) (1,156 ) 72 (23 ) (1,107 ) Loans 16,325 869 231 17,425 3,257 3,015 179 6,451 Total interest income 15,739 1,115 468 17,322 3,479 5,848 406 9,733 Interest-bearing liabilities: Money market deposits 1,505 1,912 1,164 4,581 (9 ) 1,121 (7 ) 1,105 Savings deposits (28 ) 344 (14 ) 302 (109 ) 22 (3 ) (90 ) Time deposits 1,962 (420 ) (301 ) 1,241 454 556 161 1,171 Other borrowings (3,610 ) (20 ) 15 (3,615 ) 3,981 (37 ) (164 ) 3,780 Junior subordinated debentures - - - - (141 ) - - (141 ) Repurchase agreements and other 74 238 422 734 1 10 - 11 Total interest expense (97 ) 2,054 1,286 3,243 4,177 1,672 (13 ) 5,836 Net interest income $ 15,836 $ (939 ) $ (818 ) $ 14,079 $ (698 ) $ 4,176 $ 419 $ 3,897 (1) The volume change in net interest income represents the change in average balance multiplied by the previous year’s rate.
The largest component of this increase was an increase in net loans of $56.8 million. This was mostly offset by a decrease of $51 million in investment securities. Gross loans increased by approximately $57 million, or 6%, from $959 million at December 31, 2023, to $1.0 billion at December 31, 2024.
The largest component of this increase was an increase in net loans of $490 million mostly related to the acquisition of Cornerstone. Gross loans increased by approximately $497 million, or 49%, from $1.0 billion at December 31, 2024, to $1.5 billion at December 31, 2025.
We have established detailed policies and internal control procedures that are intended to ensure valuation methods are applied in an environment that is designed and operating effectively and applied consistently from period to period. The following is a brief description of our current accounting policies involving significant management valuation judgments. Allowance for Credit Losses.
Our most complex accounting policies require management’s judgment to ascertain the valuation of assets, liabilities, commitments and contingencies. We have established detailed policies and internal control procedures that are intended to ensure valuation methods are applied in an environment that is designed and operating effectively and applied consistently from period to period.
These loans offer diversification as to industries and types of businesses, thus limiting material exposure in any industry concentrations. The Company offers both fixed and floating rate loans and obtains collateral in the form of real property, business assets and deposit accounts, but looks to business and personal cash flows as its primary source of repayment.
The Company offers both fixed and floating rate loans and obtains collateral in the form of real property, business assets and deposit accounts, but looks to business and personal cash flows as its primary source of repayment. In the fourth quarter of 2023 we terminated our indirect automobile loan program.
In addition to its FHLB borrowing line and the Discount Window, the Company has unsecured short-term borrowing agreements with two of its correspondent banks in the amounts of $50 million and $20 million. There were no outstanding borrowings to the FHLB, FRB Discount Window or the correspondent banks at December 31, 2024, and December 31, 2023.
At December 31, 2025, the Company could borrow up to $39 million at the Discount Window secured by investment securities with a fair value of $41 million. In addition to its FHLB borrowing line and the Discount Window, the Company has unsecured short-term borrowing agreements with two of its correspondent banks in the amounts of $50 million and $20 million.
MARC consists of the Bank’s Chief Executive Officer, Chief Financial Officer and Chief Credit Officer, and the activities are governed by a formal written charter. The MARC meets monthly and reports to the Board of Directors. 33 Table of Contents The allowance for credit losses is established through charges to earnings in the form of the provision for credit losses.
The MARC meets monthly and reports to the Board of Directors. 34 Table of Contents The allowance for credit losses is established through charges to earnings in the form of the provision for credit losses. Loan losses are charged to, and recoveries are credited to, the allowance for credit losses.
Net interest income for the twelve months ended December 31, 2024 was $73.7 million, an increase of $3.9 million from the $69.8 million earned during 2023. The increase in net interest income includes an increase of $9.7 million in interest income partially offset by an increase of $5.8 million in interest expense.
Net interest margin for the year ended December 31, 2025, increased 12 basis points to 4.91%, up from 4.79% for the same period in 2024. 2024 compared to 2023. Net interest income for the twelve months ended December 31, 2024 was $73.7 million, an increase of $3.9 million from the $69.8 million earned during 2023.
Office facilities are typically small and located in more rural areas. 28% of CRE loans were located in northern Nevada and 48% were located in northern California. Of the $4.1 million in non-accrual balances at December 31, 2024, approximately 38% were CRE. Of the $19.8 million in substandard balances at December 31, 2024 9% were CRE.
There were no rent-controlled properties within the multi-family category. Office facilities are typically small and located in more rural areas. 21% of CRE loans were located in northern Nevada and 57% were located in northern California. Of the $15.1 million in non-accrual balances at December 31, 2025, approximately 13% were CRE.
The allowance for credit losses is an estimate of credit losses inherent in the Company's loan portfolio that have been incurred as of the balance-sheet date. The allowance is established through a provision for credit losses which is charged to expense.
The following is a brief description of our current accounting policies involving significant management valuation judgments. Allowance for Credit Losses. The allowance for credit losses is an estimate of credit losses inherent in the Company's loan portfolio that have been incurred as of the balance-sheet date.
Concentrations by real estate type within the CRE portfolio included 15% multi-family, 12% retail, 11% mixed commercial real estate, 11% office, 7% hospitality, 7% special purpose, 6% industrial, 6% gas stations and 5% mini storage facilities, with all remaining concentrations below 5%. There were no rent-controlled properties within the multi-family category.
CRE loans were 43% investor-owned, 43% owner-occupied, and 14% multi-family. Concentrations by real estate type within the CRE portfolio, excluding multi-family, were 14% Mixed Commercial Real Estate, 13% Office, 13% Retail, 10% Hospitality, 10% Industrial, 8% Gas Stations, 5% Medical buildings, 5% Special Purpose, 5% Mini Storage Facilities and, 5% Residential, with all remaining concentrations below 5%.
The following table sets forth the amount of the Company's nonperforming assets as of the dates indicated.
OREO totaled $226 thousand at December 31, 2025, and $91 thousand December 31, 2024. The following table sets forth the amount of the Company's nonperforming assets as of the dates indicated.

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