Plumas Bancorp completes acquisition of Cornerstone Community Bancorp

Plumas Bancorp (PLBC) announced the completion of its acquisition of Cornerstone Community Bancorp, the holding company for Cornerstone Community Bank, effective July 1. On the same day, Cornerstone Community Bank merged with and into Plumas’s subsidiary, Plumas Bank. The transaction was previously announced on January 28. Under the terms of the merger agreement between Plumas and Cornerstone, each issued and outstanding share of common stock of Cornerstone was converted into the right to receive a combination of 0.6608 shares of Plumas common stock and $9.75 in cash. The value of the total deal consideration was approximately $61.3M, based on the closing price of Plumas common stock of $44.46 per share on June 30. In accordance with the merger agreement, Plumas appointed Ken Robison, a director of Cornerstone, to the board of directors of Plumas and Plumas Bank effective as of July 1. Mr. Robison is president and broker/owner of Robison Real Estate Corporation in Red Bluff, Calif., and former owner of RE/Max Top Properties. In addition, Cornerstone’s President and CEO Matthew Moseley, will continue with Plumas Bank as EVP and Market President. As of March 31, Cornerstone had total assets of $648M, total loans outstanding of $492M and total deposits of $572M. With the completion of the merger, Plumas Bank adds four branches in Anderson, Red Bluff and Redding, California. With the addition of Cornerstone, on a pro forma combined basis, Plumas had total assets of approximately $2.3B, total loans outstanding of approximately $1.5B and total deposits of approximately $1.9B as of March 31.