Plumas Bancorp, a California-based financial institution, has announced a change in its certifying accountant for the Plumas Bank 401(k) Profit Sharing Plan. On Monday, the bank's subsidiary, Plumas Bank, dismissed Eide Bailly LLP as the independent auditor of the Plan. This decision was approved by the Audit & Risk Committee of the Company's Board of Directors.
The company stated that during the fiscal years ended December 31, 2023 and 2022, and through the dismissal date, there were no disagreements with Eide on any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedure that would have necessitated a mention in their reports. Moreover, there were no reportable events as defined by the SEC regulations.
In conjunction with the dismissal, Plumas Bancorp has appointed Elliot Davis, LLC as the new independent registered public accounting firm for the Plan's fiscal year ending December 31, 2024. This appointment was also approved by the Audit & Risk Committee.
Prior to this engagement, neither the Plan nor the Company consulted with Elliot Davis regarding the application of accounting principles to any transaction or the type of audit opinion that might have been rendered on the Plan's financial statements.
The change in the Plan's auditor is detailed in an 8-K filing with the Securities and Exchange Commission, which includes a letter from Eide Bailly LLP confirming their agreement with Plumas Bancorp's statements regarding their dismissal. The letter is dated the same day as the dismissal, indicating a prompt disclosure of the event.
This shift in the Plan's auditing responsibilities is a significant administrative change for Plumas Bancorp and its stakeholders. The information is based on a press release statement filed with the SEC.
In other recent news, Plumas Bancorp, a Nevada-based financial institution, has announced a quarterly cash dividend of $0.27 per common share, payable to shareholders of record as of the close of business on November 1, 2024. This dividend declaration was confirmed in a press release statement and the details filed in the Form 8-K with the SEC.
Dividends are a common way for publicly traded companies to distribute a portion of their earnings back to their shareholders, with the dividend yield and payout ratio being key indicators for investors assessing the sustainability of a dividend.
In addition to the dividend news, Plumas Bancorp has ended its property sale agreement with Mountainseed Real Estate Services, LLC. The original agreement, set in 2024, involved the sale of three properties operated by Plumas Bank, a wholly-owned subsidiary of Plumas Bancorp, for approximately $7.9 million.
However, the two parties mutually agreed to terminate this agreement, which does not impact another transaction involving nine branch office properties. These are recent developments in the company's operations.
InvestingPro Insights
While Plumas Bancorp (PLBC) has made an administrative change in its 401(k) Plan auditor, it's worth examining the company's current financial position. According to InvestingPro data, PLBC has a market capitalization of $277.53 million and is trading at a P/E ratio of 9.74, suggesting a relatively modest valuation compared to the broader market.
InvestingPro Tips highlight that PLBC has raised its dividend for 4 consecutive years and has maintained dividend payments for 9 consecutive years, indicating a commitment to shareholder returns. This could be particularly appealing to investors looking for stable income in the financial sector. Moreover, the company is trading near its 52-week high, with a strong return over the last three months, reflecting recent positive market sentiment.
However, it's important to note that analysts anticipate a sales decline in the current year, which could impact the company's financial performance. Despite this, PLBC remains profitable, with a revenue of $79.87 million in the last twelve months as of Q3 2024 and an impressive operating income margin of 48.19%.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for PLBC, providing a deeper understanding of the company's financial health and market position.
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