v3.26.1
Note 4 - Fair Value Measurements
12 Months Ended
Dec. 31, 2025
EBP 95-3520374 001 [Member]  
Notes to Financial Statements  
EBP, Investment, Fair Value and NAV [Text Block]

NOTE 4 - FAIR VALUE MEASUREMENTS

 

Fair Value Hierarchy

 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). The effect of a change in valuation technique or its application on a fair value estimate is accounted for prospectively as a change in accounting estimate. When evaluating indications of fair value resulting from the use of multiple valuation techniques, the Plan is to select the point within the resulting range of reasonable estimates of fair value that is most representative of fair value under current market conditions.

 

Fair value measurements are classified within a hierarchy that prioritizes inputs based on their observability in the market. Fair value measurements are determined by maximizing the use of observable inputs and minimizing the use of unobservable inputs. The hierarchy places the highest priority on unadjusted quoted market prices in active markets for identical assets or liabilities (level 1 measurements) and gives the lowest priority to unobservable inputs (level 3 measurements). The three levels of inputs within the fair value hierarchy are defined as follows:

 

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Plan has the ability to access as of the measurement date.

 

Level 2: Significant other observable inputs other than level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

 

Level 3: Significant unobservable inputs that reflect the Plan's own assumptions about the assumptions that market participants would use in pricing an asset or liability.

 

In some cases, a valuation technique used to measure fair value may include inputs from multiple levels of the fair value hierarchy. The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. Transfers between hierarchy measurement levels are recognized by the Plan as of the actual date of the event or change in circumstances that caused the transfer.

 

The following descriptions of the valuation methods and assumptions used by the Plan to estimate the fair values of investments apply to investments held directly by the Plan.

 

Company Common Stock: The fair value of Plumas Bancorp common stock is determined by obtaining quoted prices from a nationally recognized exchange (level 1 inputs).

 

Mutual Funds (including money market mutual funds): The fair values of mutual fund investments are valued at the net asset value (NAV) of shares held by the Plan and are valued at the closing price reported on the active market on which the individual securities are traded.

 

 

 

Investments measured at fair value on a recurring basis which are held directly by the Plan are summarized below:

 

December 31, 2025

 

Description

 

Fair Value

   

Quoted

Prices in

Active

Markets for

Identical

Assets

(Level 1)

   

Significant

Other

Observable

Inputs

(Level 2)

   

Significant

Unobservable

Inputs

(Level 3)

 

Common stock of Plan Sponsor

  $ 4,515,881     $ 4,515,881     $ -     $ -  

Money Market Fund

    1,641,086       1,641,086                  

Mutual Funds

    23,756,890       23,756,890       -          

Total investments at fair value

  $ 29,913,857     $ 29,913,857     $ -     $ -  

 

Investments measured at fair value on a recurring basis which are held directly by the Plan are summarized below:                  

 

December 31, 2024

 

Description

 

Fair Value

   

Quoted

Prices in

Active

Markets for

Identical

Assets

(Level 1)

   

Significant

Other

Observable

Inputs

(Level 2)

   

Significant

Unobservable

Inputs

(Level 3)

 

Common stock of Plan Sponsor

  $ 4,626,028     $ 4,626,028     $ -     $ -  

Money Market Fund

    1,700,451       1,700,451                  

Mutual Funds

    18,774,894       18,774,894       -          

Total investments at fair value

  $ 25,101,373     $ 25,101,373     $ -     $ -