Stephens raises Plumas Bancorp stock price target on strong deposits

Stephens raises Plumas Bancorp stock price target on strong deposits

Chipmakers weigh on stocks, oil edges higher Investing.com - Stephens raised its price target on Plumas Bancorp (NASDAQ:PLBC) to $64 from $60 while maintaining an Overweight rating on the stock. The stock currently trades at $60.24, near its 52-week high of $60.64, following a 34.5% surge over the past six months. According to InvestingPro analysis, the stock remains undervalued at current levels.

The bank reported second-quarter operating earnings per share of $1.40, exceeding Stephens’ estimate of $1.32 and the Street’s $1.36. Pre-provision net revenue came in at $14.2 million, 6.1% above Stephens’ estimate of $13.3 million. Deposit growth was seasonally strong in the second quarter, rising 25% on a linked-quarter annualized basis, aided by a $41 million reclassification of repos to money market accounts.

Net loan growth increased 2.8% on a linked-quarter annualized basis, though payoffs weighed on the figure. The bank’s net interest margin is expected to fall to slightly above 5.00% in the third quarter after loan yields normalize from elevated discount accretion and a 9 basis point interest reversal in the second quarter. The company’s common equity tier 1 ratio stood at 15.8% in the second quarter.

Stephens noted the bank’s capital position allows it to deploy capital in buybacks while remaining opportunistic on future mergers and acquisitions or de-novo expansion. InvestingPro data shows the bank has raised its dividend for five consecutive years, now yielding 2.19%. Want deeper insights?

InvestingPro offers 10 additional exclusive tips for PLBC. In other recent news, Plumas Bancorp announced its financial results, reporting first-quarter operating earnings per share of $1.43. This figure surpassed both Stephens’ estimate of $1.22 and the consensus estimate of $1.28.

Additionally, the company’s pre-provision net revenue reached $13.3 million, which was 7.2% higher than Stephens’ forecast and 4.8% above broader market expectations. Following these strong earnings, Stephens raised its price target for Plumas Bancorp to $60, maintaining an Overweight rating. Moreover, Plumas Bancorp declared a quarterly cash dividend of $0.33 per share, payable on May 15, 2026, to shareholders of record as of May 1, 2026.

This announcement was made in a press release and included in a filing with the Securities and Exchange Commission. In other developments, during its annual meeting, Plumas Bancorp shareholders elected ten directors to the board, with terms expiring in 2027. However, Kenneth E. Robison, one of the elected directors, resigned from the board for personal reasons following the meeting.

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