Plumas Bancorp (“Plumas”) announced the completion of its acquisition of Feather River Bancorp, Inc. (“Feather River”), the holding company for Bank of Feather River, effective July 1, 2021. On the same day, Bank of Feather River merged with and into Plumas’s subsidiary, Plumas Bank. The transaction was initially announced on March 11, 2021.
Pursuant to the terms of the merger agreement between Plumas and Feather River, each issued and outstanding share of common stock of Feather River (the “Common Shares”), was converted into the right to receive, at the election of each holder of Common Shares, either shares of common stock of Plumas or cash. Shareholder elections were subject to proration such that aggregate merger consideration payable by Plumas was comprised of $4,735,184 in cash and 598,129 shares of Plumas common stock. Holders of Common Shares received either $19.14 in cash or 0.6138 shares of Plumas common stock per Common Share. The value of the total deal consideration was approximately $23.4 million, based upon volume-weighted average trading price of Plumas common stock for the 10 trading days ending on the last trading day immediately preceding July 1, 2021, the closing date of the merger.
As of March 31, 2021, Feather River had total assets of approximately $196 million, total loans outstanding of approximately $161 million and total deposits of approximately $169 million.
With the addition of Feather River, on a pro forma combined basis, Plumas had total assets of approximately $1.4 billion, total loans outstanding of approximately $894 million and total deposits of approximately $1.2 billion as of March 31, 2021 (unaudited).
“We are pleased to welcome the clients, employees, and shareholders of Feather River,” said Andrew Ryback, president and chief executive officer, Plumas Bancorp. “From Quincy to Yuba City, our companies share a connection to the people and businesses who have built their livelihoods alongside California’s Feather River. Bringing together the team of local experts at Bank of Feather River with Plumas Bank’s technology and small business expertise increases the banking services available in the Yuba City marketplace. We look forward to providing long-term value to our combined shareholders, clients, team members, and communities we serve.”
Also, in accordance with the merger agreement, Plumas appointed Julie Morehead, Feather River’s president and chief executive officer, to the board of directors of Plumas and Plumas Bank. A lifetime and third generation Yuba City resident, Morehead began her banking career over 40 years ago and has extensive experience in all aspects of banking including risk management, corporate governance, asset/liability management, business development, loan administration, finance, operations, and shareholder relations. She was previously a bank Chief Financial Officer and is a graduate of the University of Phoenix and the Texas Graduate School of Community Bank Management. She is active in a wide array of community activities and organizations and was awarded the 2011 Yuba-Sutter Chamber of Commerce Athena Award recognizing leadership among women.
“We are very pleased to welcome Julie to the board. Her leadership experience, both at the corporate level and in various board roles, will add depth and insight to the board as we advance strategies to benefit our clients, team members, communities, and shareholders. Additionally, Julie’s energy and passion for the Yuba-Sutter market and her extensive involvement in the community will help us grow and prosper in this region for years to come,” Ryback said.
Morehead commented, “I am honored to join the Plumas Bancorp Board and I look forward to helping build upon its history of success. Plumas Bank’s core values are aligned with those of Bank of Feather River, and I am confident that Plumas Bank’s commitment to community will result in expanded services for the area. I look forward to supporting the bank’s work in providing state-of-the-art financial solutions to small businesses, entrepreneurs and families in the Yuba-Sutter area and beyond.”
Founded in 1980, Plumas Bank is a locally owned and managed full-service community bank headquartered in northeastern California. Its parent company, Plumas Bancorp, is located in Reno, Nevada. As of July 1, 2021, the bank operates fourteen branches: twelve located in the northern California counties of Lassen, Modoc, Nevada, Placer, Plumas, Shasta and Sutter and two branches located in the northern Nevada counties of Washoe and Carson City. The bank also operates two loan production offices in the northern California Counties of Placer and Butte. Plumas Bank offers a wide range of financial and investment services to consumers and businesses and has received nationwide Preferred Lender status with the United States Small Business Administration. For more information on Plumas Bancorp and Plumas Bank, visit www.plumasbank.com.