Plumas Bancorp Announces Acquisition Of Cornerstone Community Bancorp

(RTTNews) - Plumas Bancorp (PLBC) has announced that the company has entered into a definitive merger agreement with Cornerstone Community Bancorp, under which the company will acquire Cornerstone in a stock-and-cash deal valued at about $64.6 million, based on Plumas' closing share price of $47.76 on January 28, 2025.

Upon completion, the combined entity will have roughly $2.3 billion in assets, $2.0 billion in deposits, and $1.5 billion in loans, with 19 branches across Northern California and Western Nevada.

According to the terms of the agreement, each Cornerstone share will be converted into 0.6608 shares of Plumas stock and $9.75 in cash, subject to certain adjustments.

With Plumas' share price at $47.76 on January 28, 2025, the total transaction is valued at approximately $64.6 million, including the value for Cornerstone stock option holders, which represents a value of $41.31 per Cornerstone share.

As a result of the merger, Cornerstone shareholders will collectively own about 14 percent of Plumas' outstanding common stock, based on data as of December 31, 2024. Additionally, one current member of Cornerstone's board of directors will join Plumas' board following the merger.

PLBC expects the acquisition to be 9 percent accretive to earnings per share in 2025 and 23 percent in 2026. It anticipates a 13 percent dilution to tangible book value per share at closing, with an earn-back period of under three years. Both Plumas and Cornerstone boards have approved the merger, which is expected to close in the second half of 2025, pending shareholder and regulatory approvals.

PLBC is currently trading at $46.7 or 2.22% lower on the Nasdaq Capital Market.