Plumas Bancorp reported record third-quarter 2026 earnings of $11.4 million, or $1.64 per share, a $6.2 million increase from the $5.1 million earned in the same period last year. The Reno, Nevada-based bank, parent company of Plumas Bank, attributed the surge to lower-cost relationship-based deposits and enhanced loan yields that supported profitability despite a flat loan portfolio.
Net interest income rose by $1.3 million to $26.5 million in the current quarter, up from $25.2 million in the third quarter of 2025. This growth was further amplified by a significant drop in the provision for credit losses, which fell from $5.4 million a year earlier to just $150,000 in the current quarter. Non-interest income also climbed by $538,000 to $2.8 million, while non-interest expense remained unchanged at $15.1 million compared to the prior-year period.
Andrew J. Ryback, director, president, and chief executive officer of Plumas Bancorp, stated that continued loan repricing helped maintain a strong net interest margin. He noted that asset quality slightly improved during the quarter, although the company continues to work toward favorable resolutions with specific relationships. Ryback emphasized that the bank’s strong capital position provides flexibility to navigate changing economic conditions and return capital through share repurchases.
For the nine months ended September 30, 2026, Plumas Bancorp reported net income of $31.1 million, or $4.46 per share. This represents a $12.5 million increase from the $18.6 million earned in the first nine months of 2025. The company’s return on average assets for the nine-month period stood at 1.85%, up from 1.35% in the same period last year, while return on average equity increased to 15.5% from 12.2%.
The company’s effective tax rate declined to 18.9% in the current quarter from 25.6% in the prior-year quarter. This reduction was related to the purchase of $14.5 million in green energy tax credits, which offset current and prior-year tax expenses. For the nine-month period, the provision for income taxes increased by $2.8 million to $9.8 million, or 23.9% of pre-tax income, compared to $7.0 million, or 27.2%, in the prior year.
Gross loans totaled $1.5 billion at September 30, 2026, remaining consistent with levels at September 30, 2025. While increases in commercial real estate loans of $35 million and construction loans of $5 million helped drive growth, these were offset by a $20 million decrease in automobile loans and a $15 million drop in agricultural loans. Approximately 79% of the loan portfolio consists of variable-rate loans.
Total deposits increased by $47 million, or 2.6%, to $1.9 billion at September 30, 2026, up from $1.8 billion a year earlier. This growth was driven by a $38 million increase in money market accounts and a $22 million rise in time deposits, partially offset by decreases in savings and non-interest-bearing demand deposits. At September 30, 2026, 46% of the company’s deposits were in non-interest-bearing demand deposits.
Nonperforming assets rose to $21.3 million at September 30, 2026, from $15.2 million at September 30, 2025. Consequently, nonperforming assets as a percentage of total assets increased to 0.94% from 0.68%. Nonperforming loans specifically reached $21.1 million, representing 1.41% of total loans at the end of the current quarter, up from 1.0% a year prior.