Reno, Nevada-based Plumas Bancorp on Wednesday said it would acquire Red Bluff, California-based Cornerstone Community Bancorp for $64.6 million.
The cash-and-stock deal was billed in a press release as a bid to deepen the
The combined company would have roughly $2.3 billion of assets, $2 billion of deposits and $1.5 billion of loans. It would operate 19 branches throughout Northern California and Western Nevada.
"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," Andrew Ryback, president and CEO of Plumas, said in the release.
The deal, expected to close in the second half of the year pending regulatory approvals, priced Cornerstone at about 146% of its tangible book value. Plumas expects the acquisition to be nearly 9% accretive to earnings per share in 2025 and 23% accretive the following year. It estimated dilution to tangible book value per share of 13%. It expects to earn back that dilution within three years.
Cornerstone shareholders would own about 14% of Plumas' outstanding common stock should the deal close as planned. One current Cornerstone director would join the Plumas board.
Matthew Moseley, Cornerstone's president and CEO, would join Plumas after the deal closes.
"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," Moseley said in the release.
It marked the second substantial deal in the span of a week involving a community bank seller.
The Virginia-based bank said the Federal Reserve signed off on its acquisition of Sandy Spring Bancorp in Maryland. The transaction was the third-largest bank deal announced in 2024. It could be finalized as soon as April.
Cadence Bank in Tupelo, Mississippi, said in its earnings release last week that it would buy FCB Financial and its $590 million-asset First Chatham Bank in Savannah, Georgia. The $50 billion-asset Cadence said it would pay $103.6 million in cash and stock.
First Chatham has $329 million of loans and $510 million of deposits. The deal is expected to close in the third quarter.
"Operating within a diverse and dynamic regional economy fueled by robust manufacturing, port operations and logistics, tourism, healthcare and real estate development, as well as an active military presence, this partnership strengthens our ability to support the individuals, families and businesses that drive our communities forward," Dan Rollins, Cadence's chairman and CEO, said in the release.
Ken Farrell, First Chatham's president and CEO, would become Cadence's president of Southeast Georgia.
At least five banks have announced plans to sell so far in 2025. Deal advisors and analysts have increasingly noted that bank M&A activity gathered momentum last year amid declining interest rates. Many observers expect even more activity this year following the presidential election and the Trump administration's deregulation vows. Lower levels of regulatory scrutiny could shorten closing processes and attract more buyers.
"We're entering the new year with confirmed election results and lower interest rates, which could invigorate M&A markets as companies set their strategic direction and seek to propel growth," said KPMG analyst Nadia Orawski.
In total,
