PLUMAS BANCORP TO ACQUIRE CORNERSTONE COMMUNITY BANCORP
Plumas Bancorp (PLBC) has announced a definitive merger agreement to acquire Cornerstone Community Bancorp (CRSB) in a stock and cash transaction valued at approximately $64.6 million. The combined entity will have approximately $2.3 billion in assets, $2.0 billion in deposits, and $1.5 billion in loans, operating 19 branches across Northern California and Western Nevada.
Under the agreement terms, Cornerstone shareholders will receive 0.6608 shares of Plumas common stock and $9.75 in cash per share. The transaction values Cornerstone shares at $41.31 based on Plumas' closing price of $47.76 on January 28, 2025. Post-merger, Cornerstone shareholders will own approximately 14% of Plumas' outstanding common stock.
The acquisition is expected to be 9% accretive to earnings per share in 2025 and 23% accretive in 2026, with an estimated 13% dilution to tangible book value per share at close. The merger is anticipated to close in the second half of 2025, subject to regulatory and shareholder approvals.
Plumas Bancorp (PLBC) ha annunciato un accordo di fusione definitivo per acquisire Cornerstone Community Bancorp (CRSB) in una transazione in azioni e contanti del valore di circa 64.6 milioni di dollari. L'entità combinata avrà circa 2.3 miliardi di dollari di attivi, 2.0 miliardi di dollari in depositi e 1.5 miliardi di dollari in prestiti, gestendo 19 filiali nel Nord della California e nel Nevada occidentale.
Secondo i termini dell'accordo, gli azionisti di Cornerstone riceveranno 0.6608 azioni di Plumas e 9.75 dollari in contante per azione. La transazione valorizza le azioni di Cornerstone a 41.31 dollari basata sul prezzo di chiusura di Plumas di 47.76 dollari del 28 gennaio 2025. Dopo la fusione, gli azionisti di Cornerstone possederanno circa il 14% delle azioni ordinarie in circolazione di Plumas.
L'acquisizione è prevista per essere 9% accretiva per utile per azione nel 2025 e 23% accretiva nel 2026, con una diluizione stimata del 13% del valore contabile tangibile per azione alla chiusura. Si prevede che la fusione si chiuda nella seconda metà del 2025, soggetta ad approvazioni normative e degli azionisti.
Plumas Bancorp (PLBC) ha anunciado un acuerdo de fusión definitivo para adquirir Cornerstone Community Bancorp (CRSB) en una transacción de acciones y efectivo valorada en aproximadamente 64.6 millones de dólares. La entidad combinada tendrá aproximadamente 2.3 mil millones de dólares en activos, 2.0 mil millones de dólares en depósitos y 1.5 mil millones de dólares en préstamos, operando 19 sucursales en el norte de California y el oeste de Nevada.
Según los términos del acuerdo, los accionistas de Cornerstone recibirán 0.6608 acciones comunes de Plumas y 9.75 dólares en efectivo por acción. La transacción valora las acciones de Cornerstone en 41.31 dólares basándose en el precio de cierre de Plumas de 47.76 dólares el 28 de enero de 2025. Después de la fusión, los accionistas de Cornerstone poseerán aproximadamente el 14% del stock ordinario en circulación de Plumas.
Se espera que la adquisición sea 9% accretiva al earnings por acción en 2025 y 23% accretiva en 2026, con una dilución estimada del 13% al valor contable tangible por acción al cierre. Se anticipa que la fusión se complete en la segunda mitad de 2025, sujeta a aprobaciones regulatorias y de los accionistas.
플루마스 뱅크 (PLBC)는 약 6460만 달러의 주식 및 현금 거래로 코너스톤 커뮤니티 뱅크 (CRSB)를 인수하는 최종 합병 계약을 발표했습니다. 통합된 실체는 약 23억 달러의 자산, 20억 달러의 예금, 15억 달러의 대출을 보유하며, 북부 캘리포니아와 서부 네바다에서 19개의 지점을 운영할 예정입니다.
합의 조건에 따르면, 코너스톤 주주의 경우 플루마스 보통주 0.6608주와 주당 9.75달러의 현금을 받게 됩니다. 이 거래는 플루마스의 2025년 1월 28일 마감 가격인 47.76달러를 기준으로 코너스톤 주식을 41.31달러로 평가합니다. 합병 후 코너스톤 주주는 플루마스 보통주 약 14%를 소유하게 됩니다.
이번 인수는 2025년 주당 순이익에 9% 기여할 것으로 예상되며, 2026년에는 23% 기여할 것으로 예상되며, 종료 시 주당 실체 장부가치의 13% 희석이 예상됩니다. 인수합병은 2025년 하반기에 마무리될 것으로 기대되며, 규제 및 주주 승인에 따라 달라집니다.
Plumas Bancorp (PLBC) a annoncé un accord de fusion définitif pour acquérir Cornerstone Community Bancorp (CRSB) dans une transaction d'actions et de liquidités d'environ 64,6 millions de dollars. L'entité combinée disposera d'environ 2,3 milliards de dollars d'actifs, 2,0 milliards de dollars de dépôts et 1,5 milliard de dollars de prêts, opérant 19 agences dans le nord de la Californie et l'ouest du Nevada.
Selon les termes de l'accord, les actionnaires de Cornerstone recevront 0,6608 action ordinaire de Plumas et 9,75 dollars en espèces par action. La transaction évalue les actions de Cornerstone à 41,31 dollars basée sur le prix de clôture de Plumas de 47,76 dollars le 28 janvier 2025. Après la fusion, les actionnaires de Cornerstone posséderont environ 14 % des actions ordinaires en circulation de Plumas.
L'acquisition devrait être accrétive de 9 % par action en 2025 et de 23 % en 2026, avec une dilution estimée de 13 % de la valeur comptable tangible par action au moment de la clôture. La fusion devrait se clôturer dans la deuxième moitié de 2025, sous réserve des approbations réglementaires et des actionnaires.
Plumas Bancorp (PLBC) hat eine definitive Fusionsvereinbarung angekündigt, um Cornerstone Community Bancorp (CRSB) in einer Aktien- und Bargeldtransaktion im Wert von etwa 64,6 Millionen Dollar zu erwerben. Die fusionierte Einheit wird über etwa 2,3 Milliarden Dollar an Vermögen, 2,0 Milliarden Dollar an Einlagen und 1,5 Milliarden Dollar an Krediten verfügen und 19 Filialen im Norden Kaliforniens und im westlichen Nevada betreiben.
Nach den Bedingungen des Vertrags erhalten die Cornerstone-Aktionäre 0,6608 Aktien von Plumas und 9,75 Dollar in bar pro Aktie. Die Transaktion bewertet die Cornerstone-Aktien mit 41,31 Dollar basierend auf dem Schlusskurs von Plumas von 47,76 Dollar am 28. Januar 2025. Nach der Fusion werden die Cornerstone-Aktionäre etwa 14% der ausstehenden Aktien von Plumas besitzen.
Die Akquisition wird voraussichtlich im Jahr 2025 9% positiv auf das Ergebnis pro Aktie einzahlen und im Jahr 2026 23% positiv beitragen, mit einer geschätzten 13%igen Verwässerung des materiellen Buchwerts pro Aktie bei Abschluss. Die Fusion wird voraussichtlich in der zweiten Hälfte des Jahres 2025 abgeschlossen, vorbehaltlich der Genehmigung durch die Aufsichtsbehörden und die Aktionäre.
- Expected 9% EPS accretion in 2025 and 23% in 2026
- Significant expansion with combined assets of $2.3 billion
- Geographic expansion into new Northern California markets
- Quick tangible book value earn-back period of less than three years
- 13% dilution to tangible book value per share at close
- Execution risk in integrating $658 million asset institution
Insights
This strategic acquisition marks a significant expansion for Plumas Bancorp, substantially increasing its footprint in Northern California. The combined entity will control $2.3 billion in assets, $2.0 billion in deposits and $1.5 billion in loans, creating a more formidable regional banking presence.
The transaction's structure is particularly noteworthy. The
The financial metrics are compelling. The projected earnings accretion of
The strategic rationale is robust, particularly in expanding Plumas' presence in the economically significant Shasta and Tehama counties. The merger combines Cornerstone's local expertise with Plumas' technological capabilities and small business focus, potentially creating a more competitive offering in these markets. The retention of Cornerstone's CEO and addition of a board member suggests a commitment to preserving valuable institutional knowledge and ensuring continuity for key relationships.
The operational integration presents both opportunities and strategic considerations. The merger will create a network of 19 branches spanning Northern California and Western Nevada, offering significant potential for operational optimization and market penetration. The complementary nature of their footprints - Cornerstone's strong presence in Shasta and Tehama counties alongside Plumas' existing network - minimizes branch overlap while maximizing market coverage.
A critical success factor will be the integration of technology platforms. Plumas' technological capabilities, when combined with Cornerstone's 19 years of local market expertise, could create a superior banking experience for customers in these rural and small-business-focused markets. The retention of key Cornerstone leadership suggests a thoughtful approach to preserving valuable customer relationships while implementing operational improvements.
The combined entity's enhanced scale, with
RENO, Nev., Jan. 29, 2025 (GLOBE NEWSWIRE) -- Plumas Bancorp (“Plumas”) (Nasdaq: PLBC) and Cornerstone Community Bancorp (“Cornerstone”) (OTCPK: CRSB) jointly announce the signing of a definitive merger agreement (the “Agreement”) whereby Plumas will acquire Cornerstone in a stock and cash transaction valued at approximately
Cornerstone, headquartered in Red Bluff, California, is the parent company of Cornerstone Community Bank, a 19-year-old bank with approximately
“We are thrilled to announce our merger agreement with Cornerstone,” said Andrew J. Ryback, President and Chief Executive Officer, Plumas Bancorp. “Our companies share a connection to the people and businesses who have built their livelihoods throughout Northern California. Bringing together the team of local experts at Cornerstone Community Bank with Plumas Bank’s technology and small business expertise offers even greater services for the markets we serve. We look forward to providing long-term value to our combined shareholders, clients, team members, and the communities we serve.”
“We are excited about the opportunity to join forces with Plumas, bringing our banks together to carry on our focus of providing our customers, employees and all of our stakeholders with superior products, services and support,” said Matthew B. Moseley, President and Chief Executive Officer of Cornerstone, who will continue with Plumas following the acquisition. “Gaining access to Plumas’ network of offices and extensive product lines allows us to expand our footprint and offerings beyond the Shasta and Tehama communities we have served for the past 19 years. There are many similarities in our institutions and the small communities we serve. This combination will afford the two organizations the opportunity to utilize our combined years of experience to continue to deliver the outstanding experience our customers have come to expect.”
Under the terms of the Agreement, each issued and outstanding share of common stock of Cornerstone will be converted into the right to receive 0.6608 shares of common stock of Plumas and
Giving effect to the merger, Cornerstone shareholders will hold, in the aggregate, approximately
Plumas expects the acquisition to be approximately
Plumas was advised in the Transaction by Raymond James & Associates, Inc. as financial advisor and Sheppard, Mullin, Richter & Hampton LLP as legal counsel. Cornerstone was advised by Performance Trust Capital Partners as financial advisor and Gary Steven Findley & Associates as legal counsel.
About Plumas Bancorp
Plumas Bancorp is headquartered in Reno, Nevada. Plumas Bancorp’s principal subsidiary is Plumas Bank, which was founded in 1980. Plumas Bank is a full-service community bank headquartered in Quincy, California. The bank operates fifteen branches: thirteen located in the California counties of Butte, Lassen, Modoc, Nevada, Placer, Plumas, Shasta and Sutter and two branches located in Nevada in the counties of Carson City and Washoe. The bank also operates two loan production offices located in Auburn, California and Klamath Falls, Oregon. Plumas Bank offers a wide range of financial and investment services to consumers and businesses and has received nationwide Preferred Lender status with the United States Small Business Administration. For more information on Plumas Bancorp and Plumas Bank, please visit our website at www.plumasbank.com.
About Cornerstone Community Bancorp
Cornerstone Community Bancorp is a bank holding company headquartered in Red Bluff, California and is the parent company for Cornerstone Community Bank, a California state-chartered bank with four locations across the Northern California counties of Shasta and Tehama. Founded in 2006, Cornerstone Community Bank has a proven track record of contributing to the success of the local economies they serve, contributing to the success of the people who live, work, and play in Shasta and Tehama.
Additional Information About the Proposed Transaction and Where to Find It
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval.
Investors and security holders are urged to carefully review and consider each of Plumas’s public filings with the SEC, including but not limited to its Annual Reports on Form 10-K, its Proxy Statements, Current Reports on Form 8-K and Quarterly Reports on Form 10-Q. The documents filed by Plumas with the SEC may be obtained free of charge at Plumas’s website at www.plumasbank.com or at the SEC’s website at www.sec.gov. These documents may also be obtained free of charge from Plumas by requesting them in writing to Plumas Bancorp, 5050 Meadowood Mall Circle, Reno, Nevada 89502; Attention: Shareholder Relations, or by telephone at (775) 786-0907.
Plumas intends to file a registration statement on Form S-4 with the SEC which will include a proxy statement /prospectus which will be distributed to the shareholders of Cornerstone in connection with their vote on the Transaction. Before making any voting or investment decision, investors and security holders of Cornerstone are urged to carefully read the entire proxy statement/prospectus, when it becomes available, as well as any amendments or supplements, because it will contain important information about the proposed Transaction. Investors and security holders will be able to obtain the proxy statement/prospectus free of charge from the SEC’s website or from Plumas by writing to the address provided in the preceding paragraph.
The directors, executive officers and certain other members of management and employees at Cornerstone and Plumas may be deemed participants in the solicitation of proxies in favor of the Transaction. Information about the directors and executive officers of Cornerstone will be included in the proxy statement/prospectus regarding the proposed Transaction. Information regarding Plumas’s directors and executive officers is available in Plumas’s definitive proxy statement for its 2024 annual meeting of shareholders filed with the SEC on April 4, 2024, which is available free of charge from Plumas upon request as described above.
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements regarding Plumas Bancorp (“Plumas”), Cornerstone Community Bancorp (“Cornerstone”) and the combined company and the proposed merger that are forward-looking statements subject to the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include but are not limited to plans, expectations, projections and statements about the benefits of the proposed merger, the timing of completion of the merger, and other statements that are not historical facts. Forward-looking statements involve risks and uncertainties that are difficult to predict. Factors that could cause or contribute to results differing from those in or implied in the forward-looking statements include but are not limited to the occurrence of any event, change or other circumstances that could give rise to the right of Plumas or Cornerstone to terminate the merger agreement; the outcome of any legal proceedings that may be instituted against Plumas or Cornerstone; delays in completing the merger; the failure to obtain necessary regulatory approvals (and the risk that such approvals impose conditions that could adversely affect the combined company or the expected benefits of the merger); the failure of Cornerstone to obtain shareholder approval or Plumas or Cornerstone to satisfy any of the other conditions to the merger on a timely basis or at all; the ability to complete the merger and integration of Plumas and Cornerstone successfully; costs being greater than anticipated; cost savings being less than anticipated; changes in economic conditions; the risk that the merger disrupts the business of the Plumas, Cornerstone or both; difficulties in retaining senior management, employees or customers; and other factors that may affect the future results of Plumas or Cornerstone. Further information regarding Plumas’s risk factors is contained in Plumas’s filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2023. Forward-looking statement made in this release speak only as of the date of this release. Neither Plumas nor Cornerstone undertake any obligation to revise or publicly release any revision or update to these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.
Investor Relations Contact:
Jamie Huynh
AVP, Assistant Corporate Secretary and Investor Relations Coordinator
Plumas Bank
Phone: 530.283.7305 ext. 8908
Email: jamie.huynh@plumasbank.com
FAQ
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