Plumas Bancorp in Reno, Nev., will discontinue its dealer loan program.
The $1.6 billion-asset company said in a press release that it decided to exit the business due to long-term challenges tied to high interest rates, increasing compliance requirements and the need to update technology.
Plumas said that increasing expenses for the business outweighed the benefits of having a “unique, short-duration credit portfolio.”
The company reassigned personnel where possible and will redirect cash flows to lower-risk investments and more-profitable lending opportunities.
Plumas reported $115,000 in termination costs in the third quarter tied to ending the program.