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In a strategic real estate move, Plumas Bancorp (market cap: $256.16 million), a consistently profitable regional bank trading near its InvestingPro Fair Value, has entered into an agreement to sell two of its administrative offices located in Quincy, California, for a total cash purchase price of $5.55 million. The buyer, Brookline Branch Services, LLC, has a 50-day period to conduct due diligence, after which the sale is expected to proceed, assuming no termination.
The transaction, dated March 28, 2025, also involves a leaseback arrangement where Plumas Bancorp’s subsidiary, Plumas Bank, will continue to occupy the properties. The lease will span an initial 15-year term with options to renew for three additional five-year periods. The annual rent is set to start at approximately $463,000 and will increase by 3% each year.
This sale and subsequent leaseback are anticipated to close in the second quarter of 2025 and are forecasted to yield a pre-tax gain of around $4.9 million for the company. However, this gain might be offset by the sale of a portion of the company’s securities portfolio, which is currently at a loss.
The company has stated that the first year’s rent expense will be partially balanced by the elimination of the depreciation expense on the buildings and the investment of the proceeds from the sale.
This financial maneuver is being watched closely by investors and stakeholders, as it could have significant implications for the company’s financial statements. Plumas Bancorp has made it clear that the forward-looking statements related to this transaction are based on current assumptions and are subject to change due to various factors.
The details provided in this article are based on a press release statement filed with the SEC.
In other recent news, Plumas Bancorp has announced a quarterly cash dividend of $0.30 per share, set for distribution on February 17, 2025, to shareholders of record by February 3, 2025. This decision underscores the company’s financial strength and commitment to shareholder value. Additionally, Piper Sandler initiated coverage on Plumas Bancorp with an Overweight rating and a $60 price target, citing the bank’s attractive valuation metrics and profitability outlook. The firm projects earnings per share of $4.19 for 2025 and $6.00 for 2026, highlighting a strong potential for growth. Plumas Bancorp has also entered into indemnification agreements with its directors and executive officers, ensuring legal protection for its leadership. These agreements are an addition to existing rights under the company’s charter and bylaws. Furthermore, the company announced the retirement of Executive Vice President and Chief Banking Officer BJ North, effective July 15, 2025. A successor has not yet been named, but the transition period allows the bank to manage this change effectively.
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