##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 (Mark One)
 þ
    
    QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
 FOR THE QUARTERLY PERIOD ENDED June 30, 2007
 o
    
    TRANSITION REPORT UNDER SECTION 13 OR 15
(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 FOR THE TRANSITION PERIOD FROM  TO
 COMMISSION FILE NUMBER: 000-49883
 PLUMAS BANCORP
  California
    
    75-2987096(State or Other Jurisdiction of Incorporation or 
Organization)
    
    (I.R.S. Employer Identification No.)35 S. Lindan Avenue, Quincy, California
    
    95971(Address of Principal Executive Offices)
    
    (Zip Code)
 (530) 283-7305
 þ o
  o þ o
 o þ




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TABLE OF CONTENTS  PART I  FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTSPART I  FINANCIAL INFORMATIONITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKITEM 4. CONTROLS AND PROCEDURESPART II  OTHER INFORMATIONITEM 1. LEGAL PROCEEDINGSITEM 1A RISK FACTORSITEM 2. UNREGISTERD SALES OF EQUITY SECURITIES AND USE OF PROCEEDSITEM 3. DEFAULTS UPON SENIOR SECURITIESITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSITEM 5. OTHER INFORMATIONITEM 6. EXHIBITSSIGNATURESEXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1EXHIBIT 32.2    Table of Contents  
 PART I  FINANCIAL INFORMATION
 
 ITEM 1. FINANCIAL STATEMENTS
 PLUMAS BANCORP
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
 June 30,
    
    
    December 31,2007
    
    
    2006AssetsCash and due from banks
    
    $
    16,535
    
    
    $
    11,293Federal funds sold
    
    
    150
    
    
    
    Cash and cash equivalents
    
    
    16,685
    
    
    
    11,293Investment securities (fair value of $57,219 at June
30, 2007 and $74,841 at December 31, 2006)
    
    
    57,453
    
    
    
    74,795Loans, less allowance for loan losses of $4,179 at
June 30, 2007 and $3,917 at December 31, 2006 (Notes
3 and 4)
    
    
    354,815
    
    
    
    351,977Premises and equipment, net
    
    
    15,016
    
    
    
    15,190Intangible assets, net
    
    
    1,187
    
    
    
    1,337Bank owned life insurance
    
    
    9,615
    
    
    
    9,449Accrued interest receivable and other assets
    
    
    9,180
    
    
    
    9,198Total assets
    
    $
    463,951
    
    
    $
    473,239Liabilities and Shareholders EquityDeposits:Non-interest bearing
    
    $
    115,353
    
    
    $
    121,464Interest bearing
    
    
    285,311
    
    
    
    280,712Total deposits
    
    
    400,664
    
    
    
    402,176Short-term borrowings
    
    
    12,300
    
    
    
    20,000Accrued interest payable and other liabilities
    
    
    4,312
    
    
    
    4,901Junior subordinated deferrable interest debentures
    
    
    10,310
    
    
    
    10,310Total liabilities
    
    
    427,586
    
    
    
    437,387Commitments and contingencies (Note 4)
    
    
    
    
    
    
    Shareholders equity (Notes 5 and 7):Serial preferred stock, no par value; 10,000,000
shares authorized, none issued
    
    
    
    
    
    
    Common stock, no par value; 22,500,000 shares
authorized; issued and outstanding  4,961,796
shares at June 30, 2007 and 5,023,205 shares at
December 31, 2006
    
    
    4,914
    
    
    
    4,828Retained earnings
    
    
    32,056
    
    
    
    31,716Accumulated other comprehensive loss (Note 6)
    
    
    (605
    )
    
    
    (692
    )Total shareholders equity
    
    
    36,365
    
    
    
    35,852Total liabilities and shareholders equity
    
    $
    463,951
    
    
    $
    473,239
  2




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PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
 For the Three Months
    
    
    For the Six MonthsEnded June 30,
    
    
    Ended June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Interest Income:Interest and fees on loans
    
    $
    7,105
    
    
    $
    6,380
    
    
    $
    14,010
    
    
    $
    12,384Interest on investment securities:Taxable
    
    
    447
    
    
    
    645
    
    
    
    966
    
    
    
    1,332Exempt from Federal income taxes
    
    
    132
    
    
    
    133
    
    
    
    266
    
    
    
    264Interest on Federal funds sold
    
    
    5
    
    
    
    27
    
    
    
    8
    
    
    
    144Total interest income
    
    
    7,689
    
    
    
    7,185
    
    
    
    15,250
    
    
    
    14,124Interest Expense:Interest on deposits
    
    
    1,808
    
    
    
    1,421
    
    
    
    3,484
    
    
    
    2,782Interest on short-term borrowings
    
    
    250
    
    
    
    39
    
    
    
    436
    
    
    
    39Interest on junior subordinated deferrable
interest debentures
    
    
    208
    
    
    
    201
    
    
    
    414
    
    
    
    384Other
    
    
    5
    
    
    
    4
    
    
    
    11
    
    
    
    8Total interest expense
    
    
    2,271
    
    
    
    1,665
    
    
    
    4,345
    
    
    
    3,213Net interest income before provision
for loan losses
    
    
    5,418
    
    
    
    5,520
    
    
    
    10,905
    
    
    
    10,911Provision for Loan Losses
    
    
    125
    
    
    
    300
    
    
    
    375
    
    
    
    600Net interest income after provision for
loan losses
    
    
    5,293
    
    
    
    5,220
    
    
    
    10,530
    
    
    
    10,311Non-Interest Income:Service charges
    
    
    902
    
    
    
    927
    
    
    
    1,757
    
    
    
    1,786Earnings on Bank owned life insurance policies
    
    
    104
    
    
    
    97
    
    
    
    205
    
    
    
    191Other
    
    
    289
    
    
    
    303
    
    
    
    605
    
    
    
    560Total non-interest income
    
    
    1,295
    
    
    
    1,327
    
    
    
    2,567
    
    
    
    2,537Non-Interest Expenses:Salaries and employee benefits
    
    
    2,640
    
    
    
    2,329
    
    
    
    5,468
    
    
    
    4,866Occupancy and equipment
    
    
    879
    
    
    
    810
    
    
    
    1,789
    
    
    
    1,560Other
    
    
    1,222
    
    
    
    1,282
    
    
    
    2,492
    
    
    
    2,403Total non-interest expenses
    
    
    4,741
    
    
    
    4,421
    
    
    
    9,749
    
    
    
    8,829Income before provision for income taxes
    
    
    1,847
    
    
    
    2,126
    
    
    
    3,348
    
    
    
    4,019Provision for Income Taxes
    
    
    713
    
    
    
    816
    
    
    
    1,266
    
    
    
    1,534Net income
    
    $
    1,134
    
    
    $
    1,310
    
    
    $
    2,082
    
    
    $
    2,485Basic earnings per share (Note 5)
    
    $
    0.23
    
    
    $
    0.26
    
    
    $
    0.42
    
    
    $
    0.50Diluted earnings per share (Note 5)
    
    $
    0.23
    
    
    $
    0.26
    
    
    $
    0.41
    
    
    $
    0.49
  3




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PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
 For the Six MonthsEnded June 30,2007
    
    
    2006Cash Flows from Operating Activities:Net income
    
    $
    2,082
    
    
    $
    2,485Adjustments to reconcile net income to net cash provided by operating
activities:Provision for loan losses
    
    
    375
    
    
    
    600Change in deferred loan origination costs/fees, net
    
    
    197
    
    
    
    (398
    )Depreciation and amortization
    
    
    1,124
    
    
    
    1,025Stock-based compensation expense
    
    
    131
    
    
    
    87Amortization of investment security premiums
    
    
    96
    
    
    
    223Accretion of investment security discounts
    
    
    (33
    )
    
    
    (46
    )Net loss on disposal/sale of premises and equipment
    
    
    29
    
    
    
    8Net gain on sale of vehicles owned
    
    
    (28
    )
    
    
    (2
    )Earnings on Bank owned life insurance policies
    
    
    (205
    )
    
    
    (191
    )Expenses on Bank owned life insurance policies
    
    
    39
    
    
    
    36Increase in accrued interest receivable and other assets
    
    
    (33
    )
    
    
    (852
    )Decrease in accrued interest payable and other liabilities
    
    
    (589
    )
    
    
    (614
    )Net cash provided by operating activities
    
    
    3,185
    
    
    
    2,361Cash Flows from Investing Activities:Proceeds from matured and called available-for-sale investment securities
    
    
    15,875
    
    
    
    12,346Proceeds from matured and called held-to-maturity investment securities
    
    
    26
    
    
    
    18Purchases of held-to-maturity investment securities
    
    
    
    
    
    
    (155
    )Proceeds from principal repayments from available-for-sale
government-guaranteed mortgage-backed securities
    
    
    1,526
    
    
    
    1,805Net increase in loans
    
    
    (3,750
    )
    
    
    (15,942
    )Proceeds from sale of other vehicles
    
    
    176
    
    
    
    101Purchase of premises and equipment
    
    
    (647
    )
    
    
    (2,550
    )Net cash provided by (used in) investing activities
    
    
    13,206
    
    
    
    (4,377
    )
  4




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PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
 For the Six MonthsEnded June 30,2007
    
    
    2006Cash Flows from Financing Activities:Net decrease in demand, interest bearing and savings deposits
    
    $
    (23,441
    )
    
    $
    (331
    )Net increase (decrease) in time deposits
    
    
    21,929
    
    
    
    (8,976
    )Net (decrease) increase in short-term borrowings
    
    
    (7,700
    )
    
    
    5,000Net proceeds from exercise of stock options
    
    
    17
    
    
    
    80Payment of cash dividends
    
    
    (750
    )
    
    
    (650
    )Repurchase and retirement of common stock
    
    
    (1,054
    )
    
    
    Net cash used in financing activities
    
    
    (10,999
    )
    
    
    (4,877
    )Increase (decrease) in cash and cash equivalents
    
    
    5,392
    
    
    
    (6,893
    )Cash and Cash Equivalents at Beginning of Year
    
    
    11,293
    
    
    
    24,596Cash and Cash Equivalents at End of Period
    
    $
    16,685
    
    
    $
    17,703Supplemental Disclosure of Cash Flow Information:Cash paid during the period for:Interest expense
    
    $
    4,026
    
    
    $
    3,147Income taxes
    
    $
    1,625
    
    
    $
    1,655Non-Cash Investing Activities:Vehicles acquired through foreclosure
    
    $
    158
    
    
    $
    93Real Estate acquired through foreclosure
    
    $
    182
    
    
    $
    Loan transferred to other assets
    
    $
    
    
    
    $
    211Net change in unrealized loss on available-for-sale securities
    
    $
    87
    
    
    $
    (354
    )Non-Cash Financing Activities:Common stock retired in connection with the exercise of stock options
    
    $
    49
    
    
    $
    345
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PLUMAS BANCORP
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 1. GENERAL
   2. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
    6




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3. LOANS
  June 30,
    
    
    December 31,2007
    
    
    2006Commercial
    
    $
    37,475
    
    
    $
    36,182Agricultural
    
    
    39,037
    
    
    
    35,577Real estate  mortgage
    
    
    121,975
    
    
    
    116,329Real estate  construction and land development
    
    
    75,389
    
    
    
    75,930Consumer
    
    
    84,133
    
    
    
    90,694358,009
    
    
    
    354,712Deferred loan costs, net
    
    
    985
    
    
    
    1,182Allowance for loan losses
    
    
    (4,179
    )
    
    
    (3,917
    )$
    354,815
    
    
    $
    351,977
 4. COMMITMENTS AND CONTINGENCIES
     7




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5. EARNINGS PER SHARE
  For the Three Months
    
    For the Six MonthsEnded June 30,
    
    Ended June 30,2007
    
    2006
    
    2007
    
    2006Earnings Per Share:Basic earnings per share
    
    $
    0.23
    
    
    $
    0.26
    
    
    $
    0.42
    
    
    $
    0.50Diluted earnings per share
    
    $
    0.23
    
    
    $
    0.26
    
    
    $
    0.41
    
    
    $
    0.49Weighted Average Number of
Shares Outstanding:(in thousands)Basic shares
    
    
    4,984
    
    
    
    5,000
    
    
    
    4,998
    
    
    
    4,994Diluted shares
    
    
    5,029
    
    
    
    5,089
    
    
    
    5,050
    
    
    
    5,090
  6. COMPREHENSIVE INCOME
    7. STOCK-BASED COMPENSATION
  8




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WeightedWeighted
    
    AverageAverage
    
    Remaining
    
    AggregateExercise
    
    Contractual
    
    Intrinsic ValueShares
    
    Price
    
    Term
    
    (in thousands)Options outstanding at December 31,
2006
    
    
    290,914
    
    
    $
    11.62Options granted
    
    
    155,700
    
    
    
    16.37Options exercised
    
    
    (8,841
    )
    
    
    7.43Options cancelled
    
    
    (20,377
    )
    
    
    16.13Options outstanding at June 30, 2007
    
    
    417,396
    
    
    $
    13.26
    
    
    
    6.5
    
    
    $
    641Options exercisable at June 30, 2007
    
    
    182,903
    
    
    $
    10.70
    
    
    
    5.5
    
    
    $
    571Expected to vest after June 30, 2007
    
    
    234,493
    
    
    $
    15.26
    
    
    
    7.3
    
    
    $
    70
   8. INCOME TAXES
 Accounting for Uncertainty in Income Taxesan Interpretation of
FASB Statement No. 109 Accounting for
Income Taxes
 Accounting for Contingencies
  9




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9. RECENT ACCOUNTING DEVELOPMENTS
 Fair Value Option for Financial Assets and Financial Liabilities
 The Fair Value Option for Financial
Assets and Financial Liabilities  Including an Amendment of FASB Statement No. 115
 
 PART I  FINANCIAL INFORMATION
 
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
   INTRODUCTION
   10




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CASH DIVIDEND
  CRITICAL ACCOUNTING POLICIES AND ESTIMATES
   OVERVIEW
    RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2007
 Net interest income before provision for loan losses.
   11




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12




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For the Six Months Ended June 30, 2007
    
    
    For the Six Months Ended June 30, 2006Average Balance
    
    
    Interest
    
    
    Yield/
    
    
    Average Balance
    
    
    Interest
    
    
    Yield/(in thousands)
    
    
    (in thousands)
    
    
    Rate
    
    
    (in thousands)
    
    
    (in thousands)
    
    
    Rate(Dollars in thousands)Interest-earning assets:Loans (1) (2)
    
    $
    356,958
    
    
    $
    14,010
    
    
    
    7.91
    %
    
    $
    323,307
    
    
    $
    12,384
    
    
    
    7.72
    %Investment securities (1)
    
    
    66,310
    
    
    
    1,232
    
    
    
    3.75
    %
    
    
    90,002
    
    
    
    1,596
    
    
    
    3.58
    %Federal funds sold
    
    
    254
    
    
    
    8
    
    
    
    6.35
    %
    
    
    6,492
    
    
    
    144
    
    
    
    4.47
    %Total interest earning assets
    
    
    423,522
    
    
    
    15,250
    
    
    
    7.26
    %
    
    
    419,801
    
    
    
    14,124
    
    
    
    6.78
    %Cash and due from banks
    
    
    12,653
    
    
    
    
    
    
    
    
    
    
    
    13,677Other assets
    
    
    32,440
    
    
    
    
    
    
    
    
    
    
    
    30,567Total assets
    
    $
    468,615
    
    
    
    
    
    
    
    
    
    
    $
    464,045Interest-bearing liabilities:NOW deposits
    
    $
    78,522
    
    
    
    713
    
    
    
    1.83
    %
    
    $
    75,748
    
    
    
    623
    
    
    
    1.66
    %Money market deposits
    
    
    42,010
    
    
    
    198
    
    
    
    0.95
    %
    
    
    61,010
    
    
    
    371
    
    
    
    1.23
    %Savings deposits
    
    
    52,327
    
    
    
    149
    
    
    
    0.57
    %
    
    
    61,858
    
    
    
    224
    
    
    
    0.73
    %Time deposits
    
    
    114,890
    
    
    
    2,424
    
    
    
    4.25
    %
    
    
    94,378
    
    
    
    1,564
    
    
    
    3.34
    %Short-term borrowings
    
    
    16,324
    
    
    
    436
    
    
    
    5.39
    %
    
    
    1,525
    
    
    
    39
    
    
    
    5.16
    %Other interest-bearing liabilities
    
    
    301
    
    
    
    11
    
    
    
    7.36
    %
    
    
    278
    
    
    
    8
    
    
    
    5.80
    %Junior subordinated debentures
    
    
    10,310
    
    
    
    414
    
    
    
    8.10
    %
    
    
    10,310
    
    
    
    384
    
    
    
    7.51
    %Total interest-bearing liabilities
    
    
    314,684
    
    
    
    4,345
    
    
    
    2.78
    %
    
    
    305,107
    
    
    
    3,213
    
    
    
    2.12
    %Non-interest bearing deposits
    
    
    112,658
    
    
    
    
    
    
    
    
    
    
    
    121,915Other liabilities
    
    
    4,669
    
    
    
    
    
    
    
    
    
    
    
    4,525Shareholders equity
    
    
    36,604
    
    
    
    
    
    
    
    
    
    
    
    32,498Total liabilities & equity
    
    $
    468,615
    
    
    
    
    
    
    
    
    
    
    $
    464,045Cost of funding interest-earning assets (3)
    
    
    
    
    
    
    
    
    
    
    2.07
    %
    
    
    
    
    
    
    
    
    
    
    1.54
    %Net interest income and margin (4)
    
    
    
    
    
    $
    10,905
    
    
    
    5.19
    %
    
    
    
    
    
    $
    10,911
    
    
    
    5.24
    %
 
 (1)
    
    Not computed on a tax-equivalent basis.(2)
    
    Net loan costs included in loan interest income for the six-month periods ended June 30, 2007
and 2006 were$254 thousand and $74 thousand, respectively.(3)
    
    Total annualized interest expense divided by the average balance of total earning assets.(4)
    
    Annualized net interest income divided by the average balance of total earning assets. 13




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2007 over 2006 change in net interest incomefor the six months ended June 30(in thousands)Volume (1)
    
    
    Rate (2)
    
    
    Mix (3)
    
    
    TotalInterest-earning assets:Loans
    
    $
    1,289
    
    
    $
    305
    
    
    $
    32
    
    
    $
    1,626Investment securities
    
    
    (420
    )
    
    
    76
    
    
    
    (20
    )
    
    
    (364
    )Federal funds sold
    
    
    (138
    )
    
    
    60
    
    
    
    (58
    )
    
    
    (136
    )Total interest income
    
    
    731
    
    
    
    441
    
    
    
    (46
    )
    
    
    1,126Interest-bearing liabilities:NOW deposits
    
    
    23
    
    
    
    65
    
    
    
    2
    
    
    
    90Money market deposits
    
    
    (116
    )
    
    
    (83
    )
    
    
    26
    
    
    
    (173
    )Savings deposits
    
    
    (34
    )
    
    
    (48
    )
    
    
    7
    
    
    
    (75
    )Time deposits
    
    
    340
    
    
    
    427
    
    
    
    93
    
    
    
    860Short-term borrowings
    
    
    378
    
    
    
    2
    
    
    
    17
    
    
    
    397Other interest-bearing liabilities
    
    
    1
    
    
    
    2
    
    
    
    
    
    
    
    3Junior subordinated debentures
    
    
    
    
    
    
    30
    
    
    
    
    
    
    
    30Total interest expense
    
    
    592
    
    
    
    395
    
    
    
    145
    
    
    
    1,132Net interest income
    
    $
    139
    
    
    $
    46
    
    
    $
    (191
    )
    
    $
    (6
    )
 
 (1)
    
    The volume change in net interest income represents the change in average balance divided by
the previous years rate.(2)
    
    The rate change in net interest income represents the change in rate multiplied by the previous
years average balance.(3)
    
    The mix change in net interest income represents the change in average balance multiplied by
the change in rate. Provision for loan losses.
 Non-interest income.
 14




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For the Six MonthsEnded June 30,Dollar
    
    
    Percentage2007
    
    
    2006
    
    
    Change
    
    
    ChangeService charges on deposit accounts
    
    $
    1,757
    
    
    $
    1,786
    
    
    $
    (29
    )
    
    
    -1.6
    %Earnings on life insurance policies
    
    
    206
    
    
    
    191
    
    
    
    15
    
    
    
    7.9
    %Merchant processing income
    
    
    127
    
    
    
    131
    
    
    
    (4
    )
    
    
    -3.1
    %Investment services income
    
    
    85
    
    
    
    55
    
    
    
    30
    
    
    
    54.5
    %Official check fees
    
    
    80
    
    
    
    80
    
    
    
    
    
    
    
    -
    %Mortgage loan commission and servicing fees
    
    
    60
    
    
    
    65
    
    
    
    (5
    )
    
    
    -7.7
    %Customer service fees
    
    
    60
    
    
    
    60
    
    
    
    
    
    
    
    -
    %Federal Home Loan Bank dividends
    
    
    56
    
    
    
    48
    
    
    
    8
    
    
    
    16.7
    %Safe deposit box and night depository income
    
    
    35
    
    
    
    36
    
    
    
    (1
    )
    
    
    -2.8
    %Gain on sale of vehicles
    
    
    28
    
    
    
    2
    
    
    
    26
    
    
    
    1300.0
    %Gain (loss) on sale of loans
    
    
    27
    
    
    
    (4
    )
    
    
    31
    
    
    
    -775.0
    %Other deposit account fees
    
    
    21
    
    
    
    28
    
    
    
    (7
    )
    
    
    -25.0
    %Printed check fee income
    
    
    21
    
    
    
    31
    
    
    
    (10
    )
    
    
    -32.3
    %Other
    
    
    4
    
    
    
    28
    
    
    
    (24
    )
    
    
    -85.7
    %Total non-interest income
    
    $
    2,567
    
    
    $
    2,537
    
    
    $
    30
    
    
    
    1.2
    %
 Non-interest expenses.
     15




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##### Table of Contents



For the Six MonthsEnded June 30,Dollar
    
    
    Percentage2007
    
    
    2006
    
    
    Change
    
    
    ChangeSalaries and employee benefits
    
    $
    5,468
    
    
    $
    4,866
    
    
    $
    602
    
    
    
    12.4
    %Occupancy and equipment
    
    
    1,789
    
    
    
    1,560
    
    
    
    229
    
    
    
    14.7
    %Professional fees
    
    
    389
    
    
    
    345
    
    
    
    44
    
    
    
    12.8
    %Outside service fees
    
    
    324
    
    
    
    296
    
    
    
    28
    
    
    
    9.5
    %Business development
    
    
    286
    
    
    
    282
    
    
    
    4
    
    
    
    1.4
    %Advertising and shareholder relations
    
    
    278
    
    
    
    242
    
    
    
    36
    
    
    
    14.9
    %Director compensation
    
    
    174
    
    
    
    175
    
    
    
    (1
    )
    
    
    -0.6
    %Telephone and data communication
    
    
    169
    
    
    
    197
    
    
    
    (28
    )
    
    
    -14.2
    %Stationery and supplies
    
    
    152
    
    
    
    140
    
    
    
    12
    
    
    
    8.6
    %Deposit premium amortization
    
    
    150
    
    
    
    150
    
    
    
    
    
    
    
    -
    %Armored car and courier
    
    
    134
    
    
    
    132
    
    
    
    2
    
    
    
    1.5
    %Postage
    
    
    121
    
    
    
    123
    
    
    
    (2
    )
    
    
    -1.6
    %Loan and collection expenses
    
    
    87
    
    
    
    80
    
    
    
    7
    
    
    
    8.8
    %Insurance
    
    
    84
    
    
    
    84
    
    
    
    
    
    
    
    -
    %Other
    
    
    144
    
    
    
    157
    
    
    
    (13
    )
    
    
    -8.3
    %Total non-interest expense
    
    $
    9,749
    
    
    $
    8,829
    
    
    $
    920
    
    
    
    10.4
    %
 Provision for income taxes.
 RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2007
 Net Income.
 Net interest income before provision for loan losses.
 16




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17




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##### Table of Contents



For the Three Months Ended June 30, 2007
    
    
    For the Three Months Ended June 30, 2006Average Balance
    
    
    Interest
    
    
    Yield/
    
    
    Average Balance
    
    
    Interest
    
    
    Yield/(in thousands)
    
    
    (in thousands)
    
    
    Rate
    
    
    (in thousands)
    
    
    (in thousands)
    
    
    Rate(Dollars in thousands)Interest-earning assets:Loans (1) (2)
    
    $
    360,240
    
    
    $
    7,105
    
    
    
    7.91
    %
    
    $
    325,408
    
    
    $
    6,380
    
    
    
    7.86
    %Investment securities (1)
    
    
    61,968
    
    
    
    579
    
    
    
    3.75
    %
    
    
    86,676
    
    
    
    778
    
    
    
    3.60
    %Federal funds sold
    
    
    332
    
    
    
    5
    
    
    
    6.04
    %
    
    
    2,286
    
    
    
    27
    
    
    
    4.74
    %Total interest earning assets
    
    
    422,540
    
    
    
    7,689
    
    
    
    7.30
    %
    
    
    414,370
    
    
    
    7,185
    
    
    
    6.95
    %Cash and due from banks
    
    
    12,709
    
    
    
    
    
    
    
    
    
    
    
    13,317Other assets
    
    
    32,267
    
    
    
    
    
    
    
    
    
    
    
    31,446Total assets
    
    $
    467,516
    
    
    
    
    
    
    
    
    
    
    $
    459,133Interest-bearing liabilities:NOW deposits
    
    $
    77,457
    
    
    
    343
    
    
    
    1.78
    %
    
    $
    78,804
    
    
    
    360
    
    
    
    1.83
    %Money market deposits
    
    
    39,483
    
    
    
    92
    
    
    
    0.93
    %
    
    
    57,329
    
    
    
    169
    
    
    
    1.18
    %Savings deposits
    
    
    51,180
    
    
    
    72
    
    
    
    0.56
    %
    
    
    59,794
    
    
    
    109
    
    
    
    0.73
    %Time deposits
    
    
    120,156
    
    
    
    1,301
    
    
    
    4.34
    %
    
    
    91,561
    
    
    
    783
    
    
    
    3.43
    %Short-term borrowings
    
    
    18,570
    
    
    
    250
    
    
    
    5.40
    %
    
    
    3,033
    
    
    
    39
    
    
    
    5.16
    %Other interest-bearing liabilities
    
    
    302
    
    
    
    5
    
    
    
    6.64
    %
    
    
    281
    
    
    
    4
    
    
    
    5.71
    %Junior subordinated debentures
    
    
    10,310
    
    
    
    208
    
    
    
    8.09
    %
    
    
    10,310
    
    
    
    201
    
    
    
    7.82
    %Total interest-bearing liabilities
    
    
    317,458
    
    
    
    2,271
    
    
    
    2.87
    %
    
    
    301,112
    
    
    
    1,665
    
    
    
    2.22
    %Non-interest bearing deposits
    
    
    109,072
    
    
    
    
    
    
    
    
    
    
    
    120,741Other liabilities
    
    
    4,360
    
    
    
    
    
    
    
    
    
    
    
    4,410Shareholders equity
    
    
    36,626
    
    
    
    
    
    
    
    
    
    
    
    32,870Total liabilities & equity
    
    $
    467,516
    
    
    
    
    
    
    
    
    
    
    $
    459,133Cost of funding interest-earning assets (3)
    
    
    
    
    
    
    
    
    
    
    2.16
    %
    
    
    
    
    
    
    
    
    
    
    1.61
    %Net interest income and margin (4)
    
    
    
    
    
    $
    5,418
    
    
    
    5.14
    %
    
    
    
    
    
    $
    5,520
    
    
    
    5.34
    %
 
 (1)
    
    Not computed on a tax-equivalent basis.(2)
    
    Net loan costs included in loan interest income for the three-month periods ended June 30,
2007 and 2006 were
$107 thousand and $18 thousand, respectively.(3)
    
    Total interest expense divided by the average balance of total earning assets.(4)
    
    Net interest income divided by the average balance of total earning assets. 18




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##### Table of Contents



2007 over 2006 change in net interest incomefor the three months ended June 30(in thousands)Volume (1)
    
    
    Rate (2)
    
    
    Mix (3)
    
    
    TotalInterest-earning assets:Loans
    
    $
    683
    
    
    $
    38
    
    
    $
    4
    
    
    $
    725Investment securities
    
    
    (222
    )
    
    
    32
    
    
    
    (9
    )
    
    
    (199
    )Federal funds sold
    
    
    (23
    )
    
    
    7
    
    
    
    (6
    )
    
    
    (22
    )Total interest income
    
    
    438
    
    
    
    77
    
    
    
    (11
    )
    
    
    504Interest-bearing liabilities:NOW deposits
    
    
    (6
    )
    
    
    (11
    )
    
    
    
    
    
    
    (17
    )Money market deposits
    
    
    (53
    )
    
    
    (35
    )
    
    
    11
    
    
    
    (77
    )Savings deposits
    
    
    (16
    )
    
    
    (25
    )
    
    
    4
    
    
    
    (37
    )Time deposits
    
    
    245
    
    
    
    208
    
    
    
    65
    
    
    
    518Short-term borrowings
    
    
    200
    
    
    
    2
    
    
    
    9
    
    
    
    211Other interest-bearing liabilities
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    1Junior subordinated debentures
    
    
    
    
    
    
    7
    
    
    
    
    
    
    
    7Total interest expense
    
    
    370
    
    
    
    147
    
    
    
    89
    
    
    
    606Net interest income
    
    $
    68
    
    
    $
    (70
    )
    
    $
    (100
    )
    
    $
    (102
    )
 
 (1)
    
    The volume change in net interest income represents the change in average balance divided by
the previous years rate.(2)
    
    The rate change in net interest income represents the change in rate divided by the previous
years average balance.(3)
    
    The mix change in net interest income represents the change in average balance multiplied by
the change in rate. Provision for loan losses.
 Non-interest income.
 19




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##### Table of Contents



For the ThreeMonthsEnded June 30,Dollar
    
    
    Percentage2007
    
    
    2006
    
    
    Change
    
    
    ChangeService charges on deposit accounts
    
    $
    902
    
    
    $
    927
    
    
    $
    (25
    )
    
    
    -2.7
    %Earnings on life insurance policies
    
    
    104
    
    
    
    97
    
    
    
    7
    
    
    
    7.2
    %Merchant processing income
    
    
    67
    
    
    
    70
    
    
    
    (3
    )
    
    
    -4.3
    %Official check fees
    
    
    39
    
    
    
    45
    
    
    
    (6
    )
    
    
    -13.3
    %Mortgage loan commission and servicing fees
    
    
    35
    
    
    
    35
    
    
    
    
    
    
    
    -
    %Investment services income
    
    
    33
    
    
    
    33
    
    
    
    
    
    
    
    -
    %Customer service fees
    
    
    30
    
    
    
    32
    
    
    
    (2
    )
    
    
    -6.3
    %Federal Home Loan Bank dividends
    
    
    25
    
    
    
    25
    
    
    
    
    
    
    
    -
    %Safe deposit box and night depository income
    
    
    17
    
    
    
    16
    
    
    
    1
    
    
    
    6.3
    %Other deposit account fees
    
    
    10
    
    
    
    13
    
    
    
    (3
    )
    
    
    -23.1
    %Gain on sale of vehicles
    
    
    8
    
    
    
    2
    
    
    
    6
    
    
    
    300.0
    %Printed check fee income
    
    
    6
    
    
    
    20
    
    
    
    (14
    )
    
    
    70.0
    %Other
    
    
    19
    
    
    
    12
    
    
    
    7
    
    
    
    58.3
    %Total non-interest income
    
    $
    1,295
    
    
    $
    1,327
    
    
    $
    (32
    )
    
    
    -2.4
    %
 Non-interest expenses.
     20




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##### Table of Contents



For the ThreeMonthsEnded June 30,Dollar
    
    
    Percentage2007
    
    
    2006
    
    
    Change
    
    
    ChangeSalaries and employee benefits
    
    $
    2,640
    
    
    $
    2,329
    
    
    $
    311
    
    
    
    13.4
    %Occupancy and equipment
    
    
    879
    
    
    
    810
    
    
    
    69
    
    
    
    8.5
    %Professional fees
    
    
    182
    
    
    
    181
    
    
    
    1
    
    
    
    0.6
    %Outside service fees
    
    
    168
    
    
    
    154
    
    
    
    14
    
    
    
    9.1
    %Business development
    
    
    161
    
    
    
    149
    
    
    
    12
    
    
    
    8.1
    %Advertising and shareholder relations
    
    
    139
    
    
    
    143
    
    
    
    (4
    )
    
    
    -2.8
    %Director compensation
    
    
    81
    
    
    
    87
    
    
    
    (6
    )
    
    
    -6.9
    %Deposit premium amortization
    
    
    75
    
    
    
    75
    
    
    
    
    
    
    
    -
    %Stationery and supplies
    
    
    75
    
    
    
    66
    
    
    
    9
    
    
    
    13.6
    %Armored car and courier
    
    
    68
    
    
    
    67
    
    
    
    1
    
    
    
    1.5
    %Telephone and data communication
    
    
    66
    
    
    
    111
    
    
    
    (45
    )
    
    
    -40.5
    %Postage
    
    
    61
    
    
    
    60
    
    
    
    1
    
    
    
    1.7
    %Insurance
    
    
    47
    
    
    
    42
    
    
    
    5
    
    
    
    11.9
    %Loan and collection expense
    
    
    43
    
    
    
    53
    
    
    
    (10
    )
    
    
    -18.9
    %Other
    
    
    56
    
    
    
    94
    
    
    
    (38
    )
    
    
    -40.4
    %Total non-interest expense
    
    $
    4,741
    
    
    $
    4,421
    
    
    $
    320
    
    
    
    7.2
    %
 Provision for income taxes.
 FINANCIAL CONDITION
 Loan portfolio composition.
  Nonperforming assets.
 21




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##### Table of Contents



Analysis of allowance for loan losses.
  For the Six MonthsEnded June 30,(in thousands)2007
    
    
    2006Balance at January 1,
    
    $
    3,917
    
    
    $
    3,256Charge-offs:Commercial and agricultural
    
    
    
    
    
    
    (118
    )Real estate mortgage
    
    
    
    
    
    
    Real estate construction
    
    
    (45
    )
    
    
    Consumer
    
    
    (220
    )
    
    
    (201
    )Total charge-offs
    
    
    (265
    )
    
    
    (319
    )Recoveries:Commercial and agricultural
    
    
    50
    
    
    
    42Real estate mortgage
    
    
    
    
    
    
    Real estate construction
    
    
    
    
    
    
    Consumer
    
    
    102
    
    
    
    122Total recoveries
    
    
    152
    
    
    
    164Net charge-offs
    
    
    (113
    )
    
    
    (155
    )Provision for loan losses
    
    
    375
    
    
    
    600Balance at June 30,
    
    $
    4,179
    
    
    $
    3,701Net charge-offs during the six-month period to average loans
    
    
    0.03
    %
    
    
    0.05
    %Allowance for loan losses to total loans
    
    
    1.17
    %
    
    
    1.10
    %
 Investment securities.
 22




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##### Table of Contents



Premises and equipment. Primarily a
 Deposits.
  Short-term borrowings.
 CAPITAL RESOURCES
      23




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##### Table of Contents



June 30, 2007
    

December 31, 2006Amount
    
    Ratio
    
    Amount
    
    RatioTier 1 Leverage RatioPlumas Bancorp and Subsidiary
    
    $
    45,782
    
    
    
    9.8
    %
    
    $
    45,206
    
    
    
    9.5
    %Minimum regulatory requirement
    
    
    18,653
    
    
    
    4.0
    %
    
    
    18,955
    
    
    
    4.0
    %Plumas Bank
    
    
    43,828
    
    
    
    9.4
    %
    
    
    44,094
    
    
    
    9.3
    %Minimum requirement for
Well-Capitalized institution
    
    
    23,289
    
    
    
    5.0
    %
    
    
    23,669
    
    
    
    5.0
    %Minimum regulatory requirement
    
    
    18,631
    
    
    
    4.0
    %
    
    
    18,935
    
    
    
    4.0
    %Tier 1 Risk-Based Capital RatioPlumas Bancorp and Subsidiary
    
    
    45,782
    
    
    
    11.4
    %
    
    
    45,206
    
    
    
    10.9
    %Minimum regulatory requirement
    
    
    16,115
    
    
    
    4.0
    %
    
    
    16,610
    
    
    
    4.0
    %Plumas Bank
    
    
    43,828
    
    
    
    10.9
    %
    
    
    44,094
    
    
    
    10.6
    %Minimum requirement for
Well-Capitalized institution
    
    
    24,141
    
    
    
    6.0
    %
    
    
    24,885
    
    
    
    6.0
    %Minimum regulatory requirement
    
    
    16,094
    
    
    
    4.0
    %
    
    
    16,590
    
    
    
    4.0
    %Total Risk-Based Capital RatioPlumas Bancorp and Subsidiary
    
    
    50,016
    
    
    
    12.4
    %
    
    
    49,123
    
    
    
    11.8
    %Minimum regulatory requirement
    
    
    32,230
    
    
    
    8.0
    %
    
    
    33,221
    
    
    
    8.0
    %Plumas Bank
    
    
    48,061
    
    
    
    11.9
    %
    
    
    48,011
    
    
    
    11.6
    %Minimum requirement for
Well-Capitalized institution
    
    
    40,234
    
    
    
    10.0
    %
    
    
    41,475
    
    
    
    10.0
    %Minimum regulatory requirement
    
    
    32,187
    
    
    
    8.0
    %
    
    
    33,180
    
    
    
    8.0
    %
 LIQUIDITY
     24




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##### Table of Contents



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
      25




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##### Table of Contents



ITEM 4. CONTROLS AND PROCEDURES
   26




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##### Table of Contents



PART II  OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
  
 ITEM 1A RISK FACTORS
  
 ITEM 2. UNREGISTERD SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 (a)
    
    None.(b)
    
    None.(c)
    
    Issuer Purchases of Equity Securities
 Total Numberof SharesPurchased asPart of
    
    MaximumTotal
    
    
    
    
    
    Publicly
    
    Number of SharesNumber of
    
    Average
    
    Announced
    
    That May Yet BeShares
    
    Price Paid
    
    Plans or
    
    Purchased Under thePeriod
    
    Purchased
    
    per Share (1)
    
    Programs
    
    Plans or Programs (2)April 1, 2007 to April 30, 2007
    
    
    0
    
    
    $
    0.00
    
    
    
    0
    
    
    
    220,500May 1, 2007 to May 31, 2007
    
    
    31,000
    
    
    $
    15.29
    
    
    
    31,000
    
    
    
    189,500June 1, 2007 to June 30, 2007
    
    
    6,800
    
    
    $
    13.44
    
    
    
    6,800
    
    
    
    182,700Total
    
    
    37,800
    
    
    $
    14.96
    
    
    
    37,800
 
 (1)
    
    Includes commissions.(2)
    
    On January 22, 2007 the Company announced that its Board of
Directors authorized a common stock repurchase plan. The plan
calls for the repurchase of up to 250,000 shares, or
approximately 5%, of the Companys shares outstanding as of
January 22, 2007. 27




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##### Table of Contents



ITEM 3. DEFAULTS UPON SENIOR SECURITIES
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  Proposal #1: Election of Directors
  VotesWithheld orVotes For
    
    
    Against
    
    
    
    
    
    
    BrokerNominee
    
    Nominee
    
    
    Nominee
    
    
    Abstentions
    
    
    Non-VotesDouglas N. Biddle
    
    
    3,930,253
    
    
    
    0
    
    
    
    76.900
    
    
    
    0Alvin G. Blickenstaff
    
    
    3,925,519
    
    
    
    0
    
    
    
    81,634
    
    
    
    0William E. Elliott
    
    
    3,930,509
    
    
    
    0
    
    
    
    76,644
    
    
    
    0Gerald W. Fletcher
    
    
    3,930,509
    
    
    
    0
    
    
    
    76,644
    
    
    
    0John Flournoy
    
    
    3,930,476
    
    
    
    0
    
    
    
    76,677
    
    
    
    0Arthur C. Grohs
    
    
    3,925,519
    
    
    
    0
    
    
    
    81,634
    
    
    
    0Jerry V. Kehr
    
    
    3,930,509
    
    
    
    0
    
    
    
    76,644
    
    
    
    0Christine McArthur
    
    
    3,930,509
    
    
    
    0
    
    
    
    76,644
    
    
    
    0Terrance J. Reeson
    
    
    3,930,509
    
    
    
    0
    
    
    
    76,644
    
    
    
    0Thomas Watson
    
    
    3,930,509
    
    
    
    0
    
    
    
    76,644
    
    
    
    0Daniel E. West
    
    
    3,930,509
    
    
    
    0
    
    
    
    76,644
    
    
    
    0
  28




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##### Table of Contents



ITEM 5. OTHER INFORMATION
  
 ITEM 6. EXHIBITS
  3.1
    
    Articles of Incorporation as amended of Registrant included as
exhibit 3.1 to the Registrants Form S-4, File No. 333-84534, which
is incorporated by reference herein.3.2
    
    Bylaws of Registrant included as exhibit 3.2 to the Registrants
Form S-4, File No. 333-84534, which is incorporated by reference
herein.3.3
    
    Amendment of the Articles of Incorporation of Registrant dated
November 1, 2002, is included as exhibit 3.3 to the Registrants
10-Q for September 30, 2005, which is incorporated by this reference
herein.3.4
    
    Amendment of the Articles of Incorporation of Registrant dated
August 17, 2005, is included as exhibit 3.4 to the Registrants 10-Q
for September 30, 2005, which is incorporated by this reference
herein.4
    
    Specimen form of certificate for Plumas Bancorp included as exhibit
4 to the Registrants Form S-4, File No. 333-84534, which is
incorporated by reference herein.10.1
    
    Executive Salary Continuation Agreement of Andrew J. Ryback dated
August 23, 2005, is included as Exhibit 10.1 to the Registrants 8-K
filed on October 17, 2005, which is incorporated by this reference
herein.10.2
    
    Split Dollar Agreement of Andrew J. Ryback dated August 23, 2005, is
included as Exhibit 10.2 to the Registrants 8-K filed on October
17, 2005, which is incorporated by this reference herein.10.5
    
    Employment Agreement of Douglas N. Biddle dated January 1, 2006 is
included as Exhibit 10.5 to the Registrants 8-K filed on March 15,
2006, which is incorporated by this reference herein.10.6
    
    Executive Salary Continuation Agreement as amended of Douglas N.
Biddle dated June 2, 1994, is included as Exhibit 10.6 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.10.7
    
    Split Dollar Agreements of Douglas N. Biddle dated January 24, 2002,
is included as Exhibit 10.7 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.8
    
    Director Retirement Agreement of John Flournoy dated March 21, 2007,
is included as Exhibit 10.8 to Registants 10-Q for March 31, 2007,
which is incorporated by this reference herein.10.9
    
    Executive Salary Continuation Agreement as amended of Dennis C.
Irvine dated June 2, 1994, is included as Exhibit 10.9 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.10.10
    
    Split Dollar Agreements of Dennis C. Irvine dated January 24, 2002,
is included as Exhibit 10.10 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.11
    
    First Amendment to Executive Salary Continuation Agreement of Robert
T. Herr dated September 15, 2004, is included as Exhibit 10.11 to
the Registrants 8-K filed on September 17, 2004, which is
incorporated by this reference herein.
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##### Table of Contents



10.13
    
    Deferred Fee Agreement as amended of Jerry V. Kehr dated August 19,
1998, is included as Exhibit 10.13 to the Registrants 10-QSB for
June 30, 2002, which is incorporated by this reference herein.10.14
    
    Amended and Restated Director Retirement Agreement of Jerry V. Kehr
dated April 28, 2000, is included as Exhibit 10.14 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.10.15
    
    Consulting Agreement of Jerry V. Kehr dated May 10, 2000, is
included as Exhibit 10.15 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.16
    
    Deferred Fee Agreement of Jerry V. Kehr dated December 21, 2005 is
included as Exhibit 10.16 to the Registrants 8-K filed on March 15,
2006, which is incorporated by this reference herein.10.18
    
    Amended and Restated Director Retirement Agreement of Daniel E. West
dated May 10, 2000, is included as Exhibit 10.18 to the Registrants
10-QSB for June 30, 2002, which is incorporated by this reference
herein.10.19
    
    Consulting Agreement of Daniel E. West dated May 10, 2000, is
included as Exhibit 10.19 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.20
    
    Split Dollar Agreements of Robert T. Herr dated September 15, 2004,
is included as Exhibit 10.20 to the Registrants 8-K filed on
September 17, 2004, which is incorporated by this reference herein.10.21
    
    Amended and Restated Director Retirement Agreement of Alvin G.
Blickenstaff dated April 19, 2000, is included as Exhibit 10.21 to
the Registrants 10-QSB for June 30, 2002, which is incorporated by
this reference herein.10.22
    
    Consulting Agreement of Alvin G. Blickenstaff dated May 8, 2000, is
included as Exhibit 10.22 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.24
    
    Amended and Restated Director Retirement Agreement of Gerald W.
Fletcher dated May 10, 2000, is included as Exhibit 10.24 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.10.25
    
    Consulting Agreement of Gerald W. Fletcher dated May 10, 2000, is
included as Exhibit 10.25 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.27
    
    Amended and Restated Director Retirement Agreement of Arthur C.
Grohs dated May 9, 2000, is included as Exhibit 10.27 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.10.28
    
    Consulting Agreement of Arthur C. Grohs dated May 9, 2000, is
included as Exhibit 10.28 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.33
    
    Amended and Restated Director Retirement Agreement of Terrance J.
Reeson dated April 19, 2000, is included as Exhibit 10.33 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.10.34
    
    Consulting Agreement of Terrance J. Reeson dated May 10, 2000, is
included as Exhibit 10.34 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.39
    
    Deferred Fee Agreement of Thomas Watson dated March 3, 2001, is
included as Exhibit 10.39 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.40
    
    Form of Indemnification Agreement, is included as Exhibit 10.41 to
the Registrants 10-QSB for June 30, 2002, which is incorporated by
this reference herein.
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##### Table of Contents



10.41
    
    2001 Stock Option Plan as amended is included as
exhibit 99.1 of the Form S-8 filed July 23, 2002,
File No. 333-96957, which is incorporated by this
reference herein.10.43
    
    Plumas Bank 401(k) Profit Sharing Plan as amended is
included as exhibit 99.1 of the Form S-8 filed
February 14, 2003, File No. 333-103229, which is
incorporated by this reference herein.10.44
    
    Executive Salary Continuation Agreement of Robert T.
Herr dated June 4, 2002, is included as Exhibit
10.44 to the Registrants 10-Q for March 31, 2003,
which is incorporated by this reference herein.10.46
    
    1991 Stock Option Plan as amended is included as
Exhibit 10.46 to the Registrants 10-Q for September
30, 2004, which is incorporated by this reference
herein.10.47
    
    Specimen form of Incentive Stock Option Agreement
under the 1991 Stock Option Plan is included as
Exhibit 10.47 to the Registrants 10-Q for September
30, 2004, which is incorporated by this reference
herein.10.48
    
    Specimen form of Non-Qualified Stock Option
Agreement under the 1991 Stock Option Plan is
included as Exhibit 10.48 to the Registrants 10-Q
for September 30, 2004, which is incorporated by
this reference herein.10.49
    
    Amended and Restated Plumas Bancorp Stock Option
Plan is included as Exhibit 10.49 to the
Registrants 10-Q for September 30, 2006, which is
incorporated by this reference herein.10.59
    
    Director Retirement Agreement of Thomas Watson dated
May 1, 2003, is included as Exhibit 10.59 to the
Registrants 10-Q for June 30, 2003, which is
incorporated by this reference herein.10.60
    
    Consulting Agreement of Thomas Watson dated May 1,
2003, is included as Exhibit 10.60 to the
Registrants 10-Q for June 30, 2003, which is
incorporated by this reference herein.10.62
    
    Deferred Fee Agreement of Thomas Watson dated
December 23, 2004, is included as Exhibit 10.62 to
the Registrants 8-K filed on January 6, 2005, which
is incorporated by this reference herein.10.63
    
    Deferred Fee Agreement of Jerry V. Kehr dated
December 24, 2004, is included as Exhibit 10.63 to
the Registrants 8-K filed on January 6, 2005, which
is incorporated by this reference herein.11
    
    Computation of per share earnings appears in the attached 10-Q under Plumas Bancorp and Subsidiary
Notes to Consolidated Financial Statements as Footnote 5  Earnings Per Share Computation.31.1
    
    Rule 13a-14(a) [Section 302] Certification of Principal Financial Officer dated August 8, 2007.31.2
    
    Rule 13a-14(a) [Section 302] Certification of Principal Executive Officer dated August 8, 2007.32.1
    
    Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, As Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated August 8, 2007.32.2
    
    Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, As Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated August 8, 2007.
 31




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##### Table of Contents



PLUMAS BANCORP
  /s/ Andrew J. RybackAndrew J. RybackExecutive Vice President Chief Financial Officer /s/ Douglas N. BiddleDouglas N. BiddlePresident and Chief Executive Officer 32