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Plumas to buy Cornerstone Community Bancorp in northern California

Plumas Bancorp in Reno, Nev., has agreed to buy Cornerstone Community Bancorp in Red Bluff, Calif.

The $1.6 billion-asset Plumas said in a press release that it will pay $64.6 million in cash and stock for the $658 million-asset Cornerstone. The deal, which is expected to close in the second half of this year, priced Cornerstone at 146% of its tangible book value.

Cornerstone has four branches, $584 million in deposits, and $499 million in loans in northern California.

“Our companies share a connection to the people and businesses who have built their livelihoods throughout northern California,” Andrew Ryback, Plumas’ president and CEO, said in the release. “Bringing together the team of local experts at Cornerstone … with Plumas Bank’s technology and small business expertise offers even greater services for the markets we serve.”

Matthew Moseley, Cornerstone’s president and CEO, will remain with Plumas after the deal closes. One Cornerstone director will join Plumas’ board.

The deal is expected to be 9% accretive to 2025 earnings per share and 23% accretive the following year. It should take less than three years for Plumas to earn back an estimated 13% dilution to its tangible book value.

Plumas plans to cut about a quarter of Cornerstone’s annual noninterest expense. It expects to incur $8.2 million of merger-related expenses.

Plumas was advised by Raymond James and Sheppard, Mullin, Richter & Hampton. Cornerstone was advised by Performance Trust Capital Partners and Gary Steven Findley & Associates.

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