Plumas Bancorp updates change in control agreements for executives

Plumas Bancorp (NASDAQ:PLBC), a $302 million market cap regional bank with a solid financial health rating according to InvestingPro, and its wholly owned subsidiary, Plumas Bank, entered into amended and restated change in control agreements with five executive officers on Friday. The bank, which maintains a P/E ratio of 8.8 and has shown consistent dividend growth over the past four years, continues to strengthen its executive retention strategy. The executives include Richard Belstock, Executive Vice President and Chief Financial Officer; Mathew Moseley, Executive Vice President and Market President; Aaron Boigon, Executive Vice President and Chief Information Officer; Jeff Moore, Executive Vice President and Chief Credit Officer; and Jack Prescott, Executive Vice President and Chief Banking Officer.

According to a press release statement and the company’s filing with the Securities and Exchange Commission, the new agreements replace previous change in control agreements dated July 21, 2025. The updated terms increase the cash severance benefit from 12 months to 18 months of the executive’s base salary in the event of a qualifying termination following a change in control, aligning with Mr. Moseley’s offer letter from January 28, 2025.

Under the agreements, if an executive is terminated without cause or resigns for good reason within 24 months after a change in control, the executive will be entitled to a lump sum payment. This payment includes 18 months of base salary, any unpaid annual incentive bonus for the prior year, and a prorated portion of the average cash bonus over the previous three years. The agreements also provide for reimbursement of COBRA insurance premiums for up to 18 months, subject to the executive signing a release of claims.

The agreements have an initial term ending December 31, 2028, with automatic one-year renewals unless notice is given at least 60 days before the end of the current term. If a public announcement of a transaction that could result in a change in control occurs, the agreement extends for an additional year. If a change in control takes place, the agreement continues for two years from the closing date.

Executives are also required not to divert business or solicit employees for 12 months following termination. The agreements may be adjusted to avoid federal excise taxes under Section 280G of the Internal Revenue Code.

This information is based on a press release statement and the company’s SEC filing.

In other recent news, Plumas Bancorp announced the declaration of a quarterly cash dividend of $0.30 per common share, which is scheduled to be paid on August 15, 2025, to shareholders of record as of August 1, 2025. Additionally, Plumas Bancorp and Cornerstone Community Bancorp have received shareholder approval for a merger, which is expected to conclude in early July 2025. This merger will create a combined entity with approximately $2.3 billion in total assets and 19 full-service banking branches across Northern California and Nevada.

Furthermore, Plumas Bancorp held its Annual Meeting of Shareholders, where several proposals were voted on, including the election of nine directors to the Board, all of whom received majority approval. Shareholders also expressed their support for the company’s executive compensation in a non-binding advisory vote. These developments reflect significant strategic moves for Plumas Bancorp, aimed at enhancing services and providing value for its stakeholders.

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