Plumas Bancorp (PLBC) Stock Faces Rising Non Performing Loans Despite Strong Net Interest Margin

Plumas Bancorp (PLBC) has reported Q2 2026 revenue of US$28.2 million and basic EPS of US$1.43, alongside trailing twelve month revenue of US$106.9 million and EPS of US$5.14 that build on the prior periods. Over the past few quarters, the company’s revenue has moved from US$19.7 million and EPS of US$1.07 in Q2 2025 to around US$22.9 million and US$1.58 in Q4 2025. It has now reached the latest Q2 2026 run rate, giving investors a clear progression in top line and per share earnings. With trailing net profit margins in the low 30s and a 5.13% net interest margin in the latest quarter, this earnings release reflects a business that is converting a meaningful share of revenue into bottom line results.

See our full analysis for Plumas Bancorp.

The next consideration is how these headline results relate to the widely followed narratives around Plumas Bancorp's growth, risk profile, and long term earnings power.

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23.2% earnings growth with 33.5% margin

• Over the last 12 months, Plumas Bancorp generated net income of US$35.8 million on revenue of US$106.9 million, which works out to 23.2% earnings growth and a trailing net profit margin of 33.5% compared with 34.6% a year earlier.
• What stands out for a bullish view is that this 23.2% earnings growth rate sits above the 8.9% per year five year average and is paired with Q2 2026 net interest margin of 5.13%, which:
  • Heavily supports an optimistic angle that the bank is still converting a large share of revenue into profit, with Q2 2026 net income of US$10.0 million and trailing twelve month EPS of US$5.14.
  • At the same time, the small step down in net margin to 33.5% from 34.6% gives critics a concrete figure to point to when they argue that profitability may not move in a straight line.

Investors who want to see how others connect this profit profile to a longer term story can tap into community views on Plumas Bancorp through the Curious how numbers become stories that shape markets? Explore Community Narratives.

Loan book at US$1.5b with rising non performing loans

• Plumas Bancorp reported total loans of US$1.51b in Q2 2026, while non performing loans moved from US$3.7 million in Q1 2025 to US$23.5 million in Q2 2026 on a period by period basis, and the allowance for bad loans sits at 84% of these exposures.
• Critics highlight credit cycle sensitivity as a key bearish angle, and the loan data give that view specific numbers to work with:
  • The shift in non performing loans from single digit millions in early 2025 to the low twenties of millions in Q2 2026, alongside an allowance ratio below 100% at 84%, is the core of the concern that loss coverage could be tested if more loans stop paying.
  • Set against this, trailing twelve month net income of US$35.8 million and a cost to income ratio of 50.4% in Q2 2026 show that, at least for now, earnings and efficiency metrics still leave the bank with room to absorb credit costs if they materialise.

P/E of 11.9x and 2.15% dividend yield

• On the market side, Plumas Bancorp trades on a P/E of 11.9x at a share price of US$61.35, compared with a peer average of 14.5x and US Banks industry level of 12.5x, while also offering a 2.15% dividend yield and a DCF fair value of about US$155.22.
• Supporters of the bullish narrative point to this mix of valuation and income as a key part of the story:
  • The P/E discount to both peers and the broader US Banks group, combined with the DCF fair value of US$155.22 versus the current US$61.35 price, is often cited as evidence that the stock trades at a lower multiple than its earnings history and forecasts of 7.8% annual earnings growth and 6.7% revenue growth might justify.
  • At the same time, the modest 2.15% dividend yield and the slightly lower trailing net margin of 33.5% versus 34.6% prevent the bullish side from arguing that valuation alone removes all risk, since income and profitability are solid but not extreme outliers.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Plumas Bancorp's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

If this mix of earnings strength, credit risk and valuation leaves you on the fence about Plumas Bancorp, look through the underlying data now, compare both sides of the argument and check the 4 key rewards and 1 important warning sign.

See What Else Is Out There

Plumas Bancorp's rising non performing loans, allowance coverage below 100% and modest 2.15% dividend yield highlight that risk and income trade offs are firmly in play.

If you want stronger balance sheet support than Plumas Bancorp currently offers, move quickly and compare its profile against the solid balance sheet and fundamentals stocks screener (47 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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