##### 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 September 30, 2008
 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
    
    (I.R.S. Employer Identification No.)Organization)35 S. Lindan Avenue, Quincy, California
    
    95971(Address of Principal Executive Offices)
    
    (Zip Code)
 (530) 283-7305
 þ o
  Large Accelerated Filer o
    
    Accelerated Filer þ
    
    Non-Accelerated Filer o
    
    Smaller Reporting Company þ
 o þ




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TABLE OF CONTENTS  PART I  FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTSCONDENSED CONSOLIDATED BALANCE SHEETCONDENSED CONSOLIDATED STATEMENT OF INCOMECONDENSED CONSOLIDATED STATEMENT OF CASH FLOWSNOTES TO CONDENSED CONSOLIDATED 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. UNREGISTERED 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 INDEXExhibit 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)
 September 30,
    
    
    December 31,2008
    
    
    2007AssetsCash and due from banks
    
    $
    17,003
    
    
    $
    13,207Federal funds sold
    
    
    12,100
    
    
    
    Cash and cash equivalents
    
    
    29,103
    
    
    
    13,207Investment securities (fair value of $42,340 at September 30, 2008
and $55,367 at December 31, 2007)
    
    
    42,396
    
    
    
    55,292Loans, less allowance for loan losses of $4,896 at September 30,
2008 and $4,211 at December 31, 2007 (Notes 3 and 4)
    
    
    353,648
    
    
    
    349,302Premises and equipment, net
    
    
    16,017
    
    
    
    14,666Intangible assets, net
    
    
    865
    
    
    
    1,037Bank owned life insurance
    
    
    9,680
    
    
    
    9,428Real estate and vehicles acquired through foreclosure
    
    
    2,412
    
    
    
    537Accrued interest receivable and other assets
    
    
    9,378
    
    
    
    9,646Total assets
    
    $
    463,499
    
    
    $
    453,115Liabilities and Shareholders EquityDeposits:Non-interest bearing
    
    $
    118,175
    
    
    $
    111,240Interest bearing
    
    
    265,040
    
    
    
    280,700Total deposits
    
    
    383,215
    
    
    
    391,940Short-term borrowings
    
    
    27,000
    
    
    
    7,500Accrued interest payable and other liabilities
    
    
    5,899
    
    
    
    6,226Junior subordinated deferrable interest debentures
    
    
    10,310
    
    
    
    10,310Total liabilities
    
    
    426,424
    
    
    
    415,976Commitments and contingencies (Note 4)
    
    
    
    
    
    
    Shareholders equity (Notes 5, 7 and 10):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   4,793,713 shares at September 30, 2008 and
4,869,130 shares at December 31, 2007
    
    
    5,203
    
    
    
    5,042Retained earnings
    
    
    31,805
    
    
    
    32,204Accumulated other comprehensive income (loss) (Note 6)
    
    
    67
    
    
    
    (107
    )Total shareholders equity
    
    
    37,075
    
    
    
    37,139Total liabilities and shareholders equity
    
    $
    463,499
    
    
    $
    453,115
   2




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##### Table of Contents



PLUMAS BANCORP
 
 
 CONDENSED CONSOLIDATED STATEMENT OF INCOME
 (Unaudited)
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,2008
    
    
    2007
    
    
    2008
    
    
    2007Interest Income:Interest and fees on loans
    
    $
    5,978
    
    
    $
    6,898
    
    
    $
    18,169
    
    
    $
    20,908Interest on investment securities:Taxable
    
    
    324
    
    
    
    448
    
    
    
    1,092
    
    
    
    1,413Exempt from Federal income taxes
    
    
    128
    
    
    
    131
    
    
    
    383
    
    
    
    397Interest on Federal funds sold
    
    
    1
    
    
    
    83
    
    
    
    3
    
    
    
    91Total interest income
    
    
    6,431
    
    
    
    7,560
    
    
    
    19,647
    
    
    
    22,809Interest Expense:Interest on deposits
    
    
    975
    
    
    
    1,864
    
    
    
    3,646
    
    
    
    5,348Interest on short-term borrowings
    
    
    79
    
    
    
    29
    
    
    
    174
    
    
    
    465Interest on junior subordinated deferrable
interest debentures
    
    
    144
    
    
    
    213
    
    
    
    473
    
    
    
    627Other
    
    
    4
    
    
    
    6
    
    
    
    13
    
    
    
    17Total interest expense
    
    
    1,202
    
    
    
    2,112
    
    
    
    4,306
    
    
    
    6,457Net interest income before provision
for loan losses
    
    
    5,229
    
    
    
    5,448
    
    
    
    15,341
    
    
    
    16,352Provision for Loan Losses
    
    
    700
    
    
    
    125
    
    
    
    1,690
    
    
    
    500Net interest income after provision for
loan losses
    
    
    4,529
    
    
    
    5,323
    
    
    
    13,651
    
    
    
    15,852Non-Interest Income:Service charges
    
    
    1,015
    
    
    
    1,009
    
    
    
    2,937
    
    
    
    2,766Earnings on Bank owned life insurance policies
    
    
    107
    
    
    
    105
    
    
    
    314
    
    
    
    311Impairment loss on investment security
    
    
    (415
    )
    
    
    
    
    
    
    (415
    )
    
    
    Other
    
    
    303
    
    
    
    314
    
    
    
    890
    
    
    
    918Total non-interest income
    
    
    1,010
    
    
    
    1,428
    
    
    
    3,726
    
    
    
    3,995Non-Interest Expenses:Salaries and employee benefits
    
    
    2,799
    
    
    
    2,675
    
    
    
    8,265
    
    
    
    8,142Occupancy and equipment
    
    
    939
    
    
    
    870
    
    
    
    2,873
    
    
    
    2,659Other
    
    
    1,241
    
    
    
    1,139
    
    
    
    3,755
    
    
    
    3,631Total non-interest expenses
    
    
    4,979
    
    
    
    4,684
    
    
    
    14,893
    
    
    
    14,432Income before provision for income taxes
    
    
    560
    
    
    
    2,067
    
    
    
    2,484
    
    
    
    5,415Provision for Income Taxes
    
    
    170
    
    
    
    789
    
    
    
    822
    
    
    
    2,055Net income
    
    $
    390
    
    
    $
    1,278
    
    
    $
    1,662
    
    
    $
    3,360Basic earnings per share (Note 5)
    
    $
    0.08
    
    
    $
    0.26
    
    
    $
    0.34
    
    
    $
    0.67Diluted earnings per share (Note 5)
    
    $
    0.08
    
    
    $
    0.26
    
    
    $
    0.34
    
    
    $
    0.67Cash dividends per share
    
    $
    0.16
    
    
    $
    0.15
    
    
    $
    0.16
    
    
    $
    0.15
   3




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PLUMAS BANCORP
 
 
 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
 (Unaudited)
 For the Nine MonthsEnded September 30,2008
    
    
    2007Cash Flows from Operating Activities:Net income
    
    $
    1,662
    
    
    $
    3,360Adjustments to reconcile net income to net cash provided by operating
activities:Provision for loan losses
    
    
    1,690
    
    
    
    500Change in deferred loan origination costs/fees, net
    
    
    235
    
    
    
    357Depreciation and amortization
    
    
    1,475
    
    
    
    1,665Stock-based compensation expense
    
    
    218
    
    
    
    209Amortization of investment security premiums
    
    
    46
    
    
    
    125Accretion of investment security discounts
    
    
    (43
    )
    
    
    (47
    )Impairment loss on investment security
    
    
    415
    
    
    
    Net loss on disposal/sale of premises and equipment
    
    
    13
    
    
    
    32Net loss (gain) on sale of vehicles owned
    
    
    17
    
    
    
    (24
    )Earnings on Bank owned life insurance policies
    
    
    (252
    )
    
    
    (251
    )Write-down of other real estate to market value
    
    
    39
    
    
    
    Increase in accrued interest receivable and other assets
    
    
    (97
    )
    
    
    (456
    )(Decrease) increase in accrued interest payable and other liabilities
    
    
    (751
    )
    
    
    62Net cash provided by operating activities
    
    
    4,667
    
    
    
    5,532Cash Flows from Investing Activities:Proceeds from matured and called available-for-sale investment securities
    
    
    13,475
    
    
    
    21,375Proceeds from matured and called held-to-maturity investment securities
    
    
    100
    
    
    
    435Purchases of available-for-sale investment securities
    
    
    (2,990
    )
    
    
    (11,009
    )Proceeds from principal repayments from available-for-sale
government-guaranteed mortgage-backed securities
    
    
    2,190
    
    
    
    2,288Net (increase) decrease in loans
    
    
    (8,500
    )
    
    
    1,295Proceeds from sale of other vehicles
    
    
    298
    
    
    
    354Purchase of premises and equipment
    
    
    (2,425
    )
    
    
    (835
    )Net cash provided by investing activities
    
    
    2,148
    
    
    
    13,903
   4




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PLUMAS BANCORP
 
 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
 (Unaudited)
 For the Nine MonthsEnded September 30,2008
    
    
    2007Cash Flows from Financing Activities:Net increase (decrease) in demand, interest bearing and savings deposits
    
    $
    17,026
    
    
    $
    (15,973
    )Net (decrease) increase in time deposits
    
    
    (25,751
    )
    
    
    30,618Net increase (decrease) in short-term borrowings
    
    
    19,500
    
    
    
    (20,000
    )Net proceeds from exercise of stock options
    
    
    21
    
    
    
    40Payment of cash dividends
    
    
    (770
    )
    
    
    (750
    )Repurchase and retirement of common stock
    
    
    (945
    )
    
    
    (1,451
    )Net cash provided by (used in) financing activities
    
    
    9,081
    
    
    
    (7,516
    )Increase in cash and cash equivalents
    
    
    15,896
    
    
    
    11,919Cash and Cash Equivalents at Beginning of Year
    
    
    13,207
    
    
    
    11,293Cash and Cash Equivalents at End of Period
    
    $
    29,103
    
    
    $
    23,212Supplemental Disclosure of Cash Flow Information:Cash paid during the period for:Interest expense
    
    $
    4,639
    
    
    $
    5,995Income taxes
    
    $
    1,090
    
    
    $
    2,475Non-Cash Investing Activities:Real estate and vehicles acquired through foreclosure
    
    $
    2,229
    
    
    $
    534Net change in unrealized loss on available-for-sale securities
    
    $
    174
    
    
    $
    367Non-Cash Financing Activities:Common stock retired in connection with the exercise of stock options
    
    $
    
    
    
    $
    49
   5




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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
  September 30,
    
    
    December 31,2008
    
    
    2007Commercial
    
    $
    33,624
    
    
    $
    39,584Agricultural
    
    
    34,903
    
    
    
    35,762Real estate  mortgage
    
    
    152,745
    
    
    
    128,357Real estate  construction and land development
    
    
    75,383
    
    
    
    76,478Consumer
    
    
    61,560
    
    
    
    72,768358,215
    
    
    
    352,949Deferred loan costs, net
    
    
    329
    
    
    
    564Allowance for loan losses
    
    
    (4,896
    )
    
    
    (4,211
    )$
    353,648
    
    
    $
    349,302
 4. COMMITMENTS AND CONTINGENCIES
      7




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5. EARNINGS PER SHARE
  For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,2008
    
    
    2007
    
    
    2008
    
    
    2007Earnings Per Share:Basic earnings per share
    
    $
    0.08
    
    
    $
    0.26
    
    
    $
    0.34
    
    
    $
    0.67Diluted earnings per share
    
    $
    0.08
    
    
    $
    0.26
    
    
    $
    0.34
    
    
    $
    0.67Weighted Average Number of
Shares Outstanding:(in thousands)Basic shares
    
    
    4,809
    
    
    
    4,945
    
    
    
    4,830
    
    
    
    4,980Diluted shares
    
    
    4,820
    
    
    
    4,976
    
    
    
    4,852
    
    
    
    5,025
  6. COMPREHENSIVE INCOME
    7. STOCK-BASED COMPENSATION
    8




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WeightedAverageRemainingWeightedAverage
    
    
    ContractualTerm
    
    
    Intrinsic ValueShares
    
    
    Exercise Price
    
    
    (in years)
    
    
    (in thousands)Options outstanding at December 31, 2007
    
    
    395,772
    
    
    $
    13.37Options granted
    
    
    90,300
    
    
    
    12.40Options exercised
    
    
    (3,200
    )
    
    
    6.59Options cancelled
    
    
    (3,000
    )
    
    
    14.53Options outstanding at September 30, 2008
    
    
    479,872
    
    
    $
    13.23
    
    
    
    5.8
    
    
    $
    141Options exercisable at September 30, 2008
    
    
    243,381
    
    
    $
    11.98
    
    
    
    4.8
    
    
    $
    141Expected to vest after September 30, 2008
    
    
    236,491
    
    
    $
    14.52
    
    
    
    6.7
    
    
    $
    
   8. INCOME TAXES
     9




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9. FAIR VALUE MEASUREMENT
 Fair Value Measurements
       Fair Value Measurements at September 30, 2008 UsingQuoted Prices inActive Markets for
    
    
    Significant Other
    
    
    SignificantIdentical Assets
    
    
    Observable Inputs
    
    
    Unobservable Inputs(in 000s)
    
    September 30, 2008
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Available-for-sale securities
    
    $
    29,010
    
    
    $
    16,257
    
    
    $
    12,753
    
    
    $
    
   10




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Fair Value Measurements at September 30, 2008 UsingQuoted Prices inActive Markets for
    
    
    Significant Other
    
    
    SignificantIdentical Assets
    
    
    Observable Inputs
    
    
    Unobservable Inputs(in 000s)
    
    September 30, 2008
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Impaired loans
    
    $
    3,687
    
    
    $
    
    
    
    $
    3,687
    
    
    $
    
  10. STOCK REPURCHASE
  11. NEW ACCOUNTING PRONOUNCEMENTS
 " .
  12. SUBSEQUENT EVENTS
   11




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PART I  FINANCIAL INFORMATION
 
 
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  forward-looking forward-looking
 INTRODUCTION
   CASH DIVIDEND
  CRITICAL ACCOUNTING POLICIES
  OVERVIEW
   12




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RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008
 Net interest income before provision for loan losses.
      13




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14




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For the Nine Months Ended September 30, 2008
    
    
    For the Nine Months Ended September 30, 2007Average Balance
    
    
    Interest
    
    
    Yield/
    
    
    Average Balance
    
    
    Interest
    
    
    Yield/(in thousands)
    
    
    (in thousands)
    
    
    Rate
    
    
    (in thousands)
    
    
    (in thousands)
    
    
    RateInterest-earning assets:Loans (1) (2)
    
    $
    353,639
    
    
    $
    18,169
    
    
    
    6.86
    %
    
    $
    354,478
    
    
    $
    20,908
    
    
    
    7.89
    %Investment securities (1)
    
    
    48,911
    
    
    
    1,475
    
    
    
    4.03
    %
    
    
    63,955
    
    
    
    1,810
    
    
    
    3.78
    %Federal funds sold
    
    
    153
    
    
    
    3
    
    
    
    2.62
    %
    
    
    2,384
    
    
    
    91
    
    
    
    5.10
    %Total interest-earning assets
    
    
    402,703
    
    
    
    19,647
    
    
    
    6.52
    %
    
    
    420,817
    
    
    
    22,809
    
    
    
    7.25
    %Cash and due from banks
    
    
    11,845
    
    
    
    
    
    
    
    
    
    
    
    12,886Other assets
    
    
    32,745
    
    
    
    
    
    
    
    
    
    
    
    32,413Total assets
    
    $
    447,293
    
    
    
    
    
    
    
    
    
    
    $
    466,116Interest-bearing liabilities:NOW deposits
    
    $
    73,957
    
    
    
    449
    
    
    
    0.81
    %
    
    $
    77,783
    
    
    
    1,043
    
    
    
    1.79
    %Money market deposits
    
    
    36,300
    
    
    
    216
    
    
    
    0.79
    %
    
    
    40,634
    
    
    
    266
    
    
    
    0.88
    %Savings deposits
    
    
    48,090
    
    
    
    125
    
    
    
    0.35
    %
    
    
    51,552
    
    
    
    199
    
    
    
    0.52
    %Time deposits
    
    
    114,372
    
    
    
    2,856
    
    
    
    3.34
    %
    
    
    118,753
    
    
    
    3,840
    
    
    
    4.32
    %Total deposits
    
    
    272,719
    
    
    
    3,646
    
    
    
    1.79
    %
    
    
    288,722
    
    
    
    5,348
    
    
    
    2.48
    %Short-term borrowings
    
    
    10,299
    
    
    
    174
    
    
    
    2.26
    %
    
    
    11,585
    
    
    
    465
    
    
    
    5.37
    %Other interest-bearing liabilities
    
    
    309
    
    
    
    13
    
    
    
    5.62
    %
    
    
    302
    
    
    
    17
    
    
    
    7.53
    %Junior subordinated debentures
    
    
    10,310
    
    
    
    473
    
    
    
    6.13
    %
    
    
    10,310
    
    
    
    627
    
    
    
    8.13
    %Total interest-bearing liabilities
    
    
    293,637
    
    
    
    4,306
    
    
    
    1.96
    %
    
    
    310,919
    
    
    
    6,457
    
    
    
    2.78
    %Non-interest bearing deposits
    
    
    110,677
    
    
    
    
    
    
    
    
    
    
    
    113,748Other liabilities
    
    
    5,602
    
    
    
    
    
    
    
    
    
    
    
    4,628Shareholders equity
    
    
    37,377
    
    
    
    
    
    
    
    
    
    
    
    36,821Total liabilities & equity
    
    $
    447,293
    
    
    
    
    
    
    
    
    
    
    $
    466,116Cost of funding interest-earning 
assets (3)
    
    
    
    
    
    
    
    
    
    
    1.43
    %
    
    
    
    
    
    
    
    
    
    
    2.05
    %Net interest income and margin (4)
    
    
    
    
    
    $
    15,341
    
    
    
    5.09
    %
    
    
    
    
    
    $
    16,352
    
    
    
    5.20
    %
 
 (1)
    
    Not computed on a tax-equivalent basis.(2)
    
    Net loan costs included in loan interest income for the nine-month periods ended September
30, 2008 and 2007 were
$208 thousand and $306 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.  15




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2008 over 2007 change in net interest incomefor the nine months ended September 30(in thousands)Volume (1)
    
    
    Rate (2)
    
    
    Mix (3)
    
    
    TotalInterest-earning assets:Loans
    
    $
    (50
    )
    
    $
    (2,715
    )
    
    $
    26
    
    
    $
    (2,739
    )Investment securities
    
    
    (426
    )
    
    
    117
    
    
    
    (26
    )
    
    
    (335
    )Federal funds sold
    
    
    (85
    )
    
    
    (44
    )
    
    
    41
    
    
    
    (88
    )Total interest income
    
    
    (561
    )
    
    
    (2,642
    )
    
    
    41
    
    
    
    (3,162
    )Interest-bearing liabilities:NOW deposits
    
    
    (51
    )
    
    
    (572
    )
    
    
    29
    
    
    
    (594
    )Money market deposits
    
    
    (29
    )
    
    
    (24
    )
    
    
    3
    
    
    
    (50
    )Savings deposits
    
    
    (13
    )
    
    
    (65
    )
    
    
    4
    
    
    
    (74
    )Time deposits
    
    
    (142
    )
    
    
    (878
    )
    
    
    36
    
    
    
    (984
    )Short-term borrowings
    
    
    (51
    )
    
    
    (270
    )
    
    
    30
    
    
    
    (291
    )Other interest-bearing liabilities
    
    
    
    
    
    
    (4
    )
    
    
    
    
    
    
    (4
    )Junior subordinated debentures
    
    
    
    
    
    
    (155
    )
    
    
    1
    
    
    
    (154
    )Total interest expense
    
    
    (286
    )
    
    
    (1,968
    )
    
    
    103
    
    
    
    (2,151
    )Net interest income
    
    $
    (275
    )
    
    $
    (674
    )
    
    $
    (62
    )
    
    $
    (1,011
    )
 
 (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.
    16




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##### Table of Contents



For the Nine MonthsEnded September 30,
    
    
    Dollar
    
    
    Percentage2008
    
    
    2007
    
    
    Change
    
    
    ChangeService charges on deposit accounts
    
    $
    2,937
    
    
    $
    2,766
    
    
    $
    171
    
    
    
    6.2
    %Earnings on life insurance policies
    
    
    314
    
    
    
    311
    
    
    
    3
    
    
    
    1.0
    %Merchant processing income
    
    
    222
    
    
    
    221
    
    
    
    1
    
    
    
    0.5
    %Gain on sale of loans
    
    
    111
    
    
    
    46
    
    
    
    65
    
    
    
    141.3
    %Investment services income
    
    
    99
    
    
    
    127
    
    
    
    (28
    )
    
    
    -22.0
    %Customer service fees
    
    
    87
    
    
    
    89
    
    
    
    (2
    )
    
    
    -2.2
    %Federal Home Loan Bank dividends
    
    
    87
    
    
    
    82
    
    
    
    5
    
    
    
    6.1
    %Official check fees
    
    
    83
    
    
    
    119
    
    
    
    (36
    )
    
    
    -30.3
    %Loan servicing fees
    
    
    66
    
    
    
    84
    
    
    
    (18
    )
    
    
    -21.4
    %Safe deposit box and night depository income
    
    
    50
    
    
    
    49
    
    
    
    1
    
    
    
    2.0
    %Other deposit account fees
    
    
    27
    
    
    
    29
    
    
    
    (2
    )
    
    
    -6.9
    %Printed check fee income
    
    
    18
    
    
    
    23
    
    
    
    (5
    )
    
    
    -21.7
    %(Loss) gain on sale of vehicles
    
    
    (17
    )
    
    
    24
    
    
    
    (41
    )
    
    
    -170.8
    %Impairment loss on investment security
    
    
    (415
    )
    
    
    
    
    
    
    (415
    )
    
    
    -100.0
    %Other
    
    
    57
    
    
    
    25
    
    
    
    32
    
    
    
    128.0
    %Total non-interest income
    
    $
    3,726
    
    
    $
    3,995
    
    
    $
    (269
    )
    
    
    -6.7
    %
 Non-interest expenses.
     17




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##### Table of Contents



For the Nine MonthsEnded September 30,
    
    
    Dollar
    
    
    Percentage2008
    
    
    2007
    
    
    Change
    
    
    ChangeSalaries and employee benefits
    
    $
    8,265
    
    
    $
    8,142
    
    
    $
    123
    
    
    
    1.5
    %Occupancy and equipment
    
    
    2,872
    
    
    
    2,659
    
    
    
    213
    
    
    
    8.0
    %Outside service fees
    
    
    530
    
    
    
    487
    
    
    
    43
    
    
    
    8.8
    %Professional fees
    
    
    458
    
    
    
    556
    
    
    
    (98
    )
    
    
    -17.6
    %Business development
    
    
    339
    
    
    
    400
    
    
    
    (61
    )
    
    
    -15.3
    %Advertising and shareholder relations
    
    
    334
    
    
    
    380
    
    
    
    (46
    )
    
    
    -12.1
    %Telephone and data communication
    
    
    303
    
    
    
    260
    
    
    
    43
    
    
    
    16.5
    %Loan collection expenses
    
    
    265
    
    
    
    122
    
    
    
    143
    
    
    
    117.2
    %Director compensation
    
    
    264
    
    
    
    261
    
    
    
    3
    
    
    
    1.1
    %Armored car and courier
    
    
    218
    
    
    
    208
    
    
    
    10
    
    
    
    4.8
    %Postage
    
    
    180
    
    
    
    183
    
    
    
    (3
    )
    
    
    -1.6
    %Insurance
    
    
    176
    
    
    
    131
    
    
    
    45
    
    
    
    34.4
    %Deposit premium amortization
    
    
    172
    
    
    
    226
    
    
    
    (54
    )
    
    
    -23.9
    %Stationery and supplies
    
    
    172
    
    
    
    214
    
    
    
    (42
    )
    
    
    -19.6
    %Other
    
    
    345
    
    
    
    203
    
    
    
    142
    
    
    
    70.0
    %Total non-interest expense
    
    $
    14,893
    
    
    $
    14,432
    
    
    $
    461
    
    
    
    3.2
    %
 Provision for income taxes.
 RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2008
 Net Income. other-than-temporary non-interest
 Net interest income before provision for loan losses.
   18




---



##### Table of Contents



short-term
    19




---



##### Table of Contents



For the Three Months Ended September 30, 2008
    
    
    For the Three Months Ended September 30, 2007Average Balance
    
    
    Interest
    
    
    Yield/
    
    
    Average Balance
    
    
    Interest
    
    
    Yield/(in thousands)
    
    
    (in thousands)
    
    
    Rate
    
    
    (in thousands)
    
    
    (in thousands)
    
    
    RateInterest-earning assets:Loans (1) (2)
    
    $
    357,970
    
    
    $
    5,978
    
    
    
    6.64
    %
    
    $
    349,598
    
    
    $
    6,898
    
    
    
    7.83
    %Investment securities (1)
    
    
    45,216
    
    
    
    452
    
    
    
    3.98
    %
    
    
    59,321
    
    
    
    579
    
    
    
    3.87
    %Federal funds sold
    
    
    132
    
    
    
    1
    
    
    
    3.01
    %
    
    
    6,576
    
    
    
    83
    
    
    
    5.01
    %Total interest-earning assets
    
    
    403,318
    
    
    
    6,431
    
    
    
    6.34
    %
    
    
    415,495
    
    
    
    7,560
    
    
    
    7.22
    %Cash and due from banks
    
    
    11,643
    
    
    
    
    
    
    
    
    
    
    
    13,343Other assets
    
    
    34,529
    
    
    
    
    
    
    
    
    
    
    
    32,358Total assets
    
    $
    449,490
    
    
    
    
    
    
    
    
    
    
    $
    461,196Interest-bearing liabilities:NOW deposits
    
    $
    72,846
    
    
    
    126
    
    
    
    0.69
    %
    
    $
    76,329
    
    
    
    330
    
    
    
    1.72
    %Money market deposits
    
    
    36,821
    
    
    
    80
    
    
    
    0.86
    %
    
    
    37,927
    
    
    
    69
    
    
    
    0.72
    %Savings deposits
    
    
    49,446
    
    
    
    41
    
    
    
    0.33
    %
    
    
    50,026
    
    
    
    50
    
    
    
    0.40
    %Time deposits
    
    
    105,391
    
    
    
    728
    
    
    
    2.75
    %
    
    
    126,353
    
    
    
    1,415
    
    
    
    4.44
    %Total deposits
    
    
    264,504
    
    
    
    975
    
    
    
    1.47
    %
    
    
    290,635
    
    
    
    1,864
    
    
    
    2.54
    %Short-term borrowings
    
    
    15,573
    
    
    
    79
    
    
    
    2.02
    %
    
    
    2,262
    
    
    
    29
    
    
    
    5.09
    %Other interest-bearing liabilities
    
    
    310
    
    
    
    4
    
    
    
    5.13
    %
    
    
    304
    
    
    
    6
    
    
    
    7.83
    %Junior subordinated debentures
    
    
    10,310
    
    
    
    144
    
    
    
    5.56
    %
    
    
    10,310
    
    
    
    213
    
    
    
    8.20
    %Total interest-bearing liabilities
    
    
    290,697
    
    
    
    1,202
    
    
    
    1.64
    %
    
    
    303,511
    
    
    
    2,112
    
    
    
    2.76
    %Non-interest bearing deposits
    
    
    115,691
    
    
    
    
    
    
    
    
    
    
    
    115,890Other liabilities
    
    
    5,662
    
    
    
    
    
    
    
    
    
    
    
    4,549Shareholders equity
    
    
    37,440
    
    
    
    
    
    
    
    
    
    
    
    37,246Total liabilities & equity
    
    $
    449,490
    
    
    
    
    
    
    
    
    
    
    $
    461,196Cost of funding interest-earning assets (3)
    
    
    
    
    
    
    
    
    
    
    1.18
    %
    
    
    
    
    
    
    
    
    
    
    2.02
    %Net interest income and margin (4)
    
    
    
    
    
    $
    5,229
    
    
    
    5.16
    %
    
    
    
    
    
    $
    5,448
    
    
    
    5.20
    %
 
 (1)
    
    Not computed on a tax-equivalent basis.(2)
    
    Net loan costs included in loan interest income for the three-month periods ended September
30, 2008 and 2007 were
$58 thousand and $51 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.  20




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##### Table of Contents



2008 over 2007 change in net interest incomefor the three months ended September 30(in thousands)Volume (1)
    
    
    Rate (2)
    
    
    Mix (3)
    
    
    TotalInterest-earning assets:Loans
    
    $
    165
    
    
    $
    (1,041
    )
    
    $
    (44
    )
    
    $
    (920
    )Investment securities
    
    
    (137
    )
    
    
    16
    
    
    
    (6
    )
    
    
    (127
    )Federal funds sold
    
    
    (81
    )
    
    
    (33
    )
    
    
    32
    
    
    
    (82
    )Total interest income
    
    
    (53
    )
    
    
    (1,058
    )
    
    
    (18
    )
    
    
    (1,129
    )Interest-bearing liabilities:NOW deposits
    
    
    (15
    )
    
    
    (197
    )
    
    
    8
    
    
    
    (204
    )Money market deposits
    
    
    (2
    )
    
    
    13
    
    
    
    
    
    
    
    11Savings deposits
    
    
    (1
    )
    
    
    (8
    )
    
    
    
    
    
    
    (9
    )Time deposits
    
    
    (234
    )
    
    
    (538
    )
    
    
    85
    
    
    
    (687
    )Short-term borrowings
    
    
    170
    
    
    
    (17
    )
    
    
    (103
    )
    
    
    50Other interest-bearing liabilities
    
    
    
    
    
    
    (2
    )
    
    
    
    
    
    
    (2
    )Junior subordinated debentures
    
    
    
    
    
    
    (69
    )
    
    
    
    
    
    
    (69
    )Total interest expense
    
    
    (82
    )
    
    
    (818
    )
    
    
    (10
    )
    
    
    (910
    )Net interest income
    
    $
    29
    
    
    $
    (240
    )
    
    $
    (8
    )
    
    $
    (219
    )
 
 (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.
  21




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##### Table of Contents



For the Three MonthsEnded September 30,
    
    
    Dollar
    
    
    Percentage2008
    
    
    2007
    
    
    Change
    
    
    ChangeService charges on deposit accounts
    
    $
    1,015
    
    
    $
    1,009
    
    
    $
    6
    
    
    
    0.6
    %Earnings on life insurance policies
    
    
    107
    
    
    
    105
    
    
    
    2
    
    
    
    1.9
    %Merchant processing income
    
    
    97
    
    
    
    94
    
    
    
    3
    
    
    
    3.2
    %Gain on sale of loans
    
    
    32
    
    
    
    19
    
    
    
    13
    
    
    
    68.4
    %Customer service fees
    
    
    30
    
    
    
    29
    
    
    
    1
    
    
    
    3.4
    %Federal Home Loan Bank dividends
    
    
    30
    
    
    
    26
    
    
    
    4
    
    
    
    15.4
    %Loan servicing fees
    
    
    25
    
    
    
    24
    
    
    
    1
    
    
    
    4.2
    %Investment services income
    
    
    21
    
    
    
    42
    
    
    
    (21
    )
    
    
    -50.0
    %Official check fees
    
    
    20
    
    
    
    39
    
    
    
    (19
    )
    
    
    -48.7
    %Safe deposit box and night depository income
    
    
    16
    
    
    
    14
    
    
    
    2
    
    
    
    14.3
    %Other deposit account fees
    
    
    10
    
    
    
    8
    
    
    
    2
    
    
    
    25.0
    %Printed check fee income
    
    
    3
    
    
    
    2
    
    
    
    1
    
    
    
    50.0
    %Loss on sale of vehicles
    
    
    (6
    )
    
    
    (4
    )
    
    
    (2
    )
    
    
    -50.0
    %Impairment loss on investment security
    
    
    (415
    )
    
    
    
    
    
    
    (415
    )
    
    
    -100.0
    %Other
    
    
    25
    
    
    
    21
    
    
    
    4
    
    
    
    19.0
    %Total non-interest income
    
    $
    1,010
    
    
    $
    1,428
    
    
    $
    (418
    )
    
    
    -29.3
    %
 Non-interest expenses.
     22




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##### Table of Contents



For the Three MonthsEnded September 30,
    
    
    Dollar
    
    
    Percentage2008
    
    
    2007
    
    
    Change
    
    
    ChangeSalaries and employee benefits
    
    $
    2,799
    
    
    $
    2,675
    
    
    $
    124
    
    
    
    4.6
    %Occupancy and equipment
    
    
    938
    
    
    
    870
    
    
    
    68
    
    
    
    7.8
    %Outside service fees
    
    
    182
    
    
    
    163
    
    
    
    19
    
    
    
    11.7
    %Professional fees
    
    
    151
    
    
    
    167
    
    
    
    (16
    )
    
    
    -9.6
    %Advertising and shareholder relations
    
    
    107
    
    
    
    102
    
    
    
    5
    
    
    
    -4.9
    %Telephone and data communication
    
    
    105
    
    
    
    91
    
    
    
    14
    
    
    
    15.4
    %Business development
    
    
    102
    
    
    
    114
    
    
    
    (12
    )
    
    
    -10.5
    %Loan collection expenses
    
    
    100
    
    
    
    35
    
    
    
    65
    
    
    
    185.7
    %Director compensation
    
    
    89
    
    
    
    87
    
    
    
    2
    
    
    
    2.3
    %Armored car and courier
    
    
    76
    
    
    
    74
    
    
    
    2
    
    
    
    2.7
    %Postage
    
    
    60
    
    
    
    62
    
    
    
    (2
    )
    
    
    -3.2
    %Insurance
    
    
    60
    
    
    
    47
    
    
    
    13
    
    
    
    27.7
    %Stationery and supplies
    
    
    56
    
    
    
    62
    
    
    
    (6
    )
    
    
    -9.7
    %Deposit premium amortization
    
    
    43
    
    
    
    76
    
    
    
    (33
    )
    
    
    -43.4
    %Other
    
    
    111
    
    
    
    59
    
    
    
    52
    
    
    
    88.1
    %Total non-interest expense
    
    $
    4,979
    
    
    $
    4,684
    
    
    $
    295
    
    
    
    6.3
    %
 Provision for income taxes.
 FINANCIAL CONDITION
 Fair value. Fair Value Measurements,
 Loan portfolio composition.
  23




---



##### Table of Contents



Nonperforming assets.
   Analysis of allowance for loan losses.
  24




---



##### Table of Contents



For the Nine MonthsEnded September 30,(in thousands)2008
    
    
    2007Balance at January 1,
    
    $
    4,211
    
    
    $
    3,917Charge-offs:Commercial and agricultural
    
    
    (182
    )
    
    
    (43
    )Real estate mortgage
    
    
    (68
    )
    
    
    Real estate construction
    
    
    (423
    )
    
    
    (46
    )Consumer
    
    
    (461
    )
    
    
    (427
    )Total charge-offs
    
    
    (1,134
    )
    
    
    (516
    )Recoveries:Commercial and agricultural
    
    
    9
    
    
    
    51Real estate mortgage
    
    
    
    
    
    
    Real estate construction
    
    
    
    
    
    
    Consumer
    
    
    120
    
    
    
    175Total recoveries
    
    
    129
    
    
    
    226Net charge-offs
    
    
    (1,005
    )
    
    
    (290
    )Provision for loan losses
    
    
    1,690
    
    
    
    500Balance at September 30,
    
    $
    4,896
    
    
    $
    4,127Net charge-offs during the nine-month period to average loans
    
    
    0.28
    %
    
    
    0.08
    %Allowance for loan losses to total loans
    
    
    1.37
    %
    
    
    1.17
    %
 Investment securities.
 Premises and equipment.
 Deposits.
  25




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##### Table of Contents



Short-term borrowings.
 CAPITAL RESOURCES
     26




---



##### Table of Contents



27




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##### Table of Contents



September 30, 2008
    
    
    December 31,2007Amount
    
    
    Ratio
    
    
    Amount
    
    
    RatioTier 1 Leverage RatioPlumas Bancorp and Subsidiary
    
    $
    46,143
    
    
    
    10.3
    %
    
    $
    46,209
    
    
    
    10.0
    %Minimum regulatory requirement
    
    
    17,945
    
    
    
    4.0
    %
    
    
    18,439
    
    
    
    4.0
    %Plumas Bank
    
    
    45,591
    
    
    
    10.2
    %
    
    
    45,415
    
    
    
    9.9
    %Minimum requirement for
Well-Capitalized institution
    
    
    22,403
    
    
    
    5.0
    %
    
    
    23,024
    
    
    
    5.0
    %Minimum regulatory requirement
    
    
    17,923
    
    
    
    4.0
    %
    
    
    18,419
    
    
    
    4.0
    %Tier 1 Risk-Based Capital RatioPlumas Bancorp and Subsidiary
    
    
    46,143
    
    
    
    11.6
    %
    
    
    46,209
    
    
    
    11.6
    %Minimum regulatory requirement
    
    
    15,966
    
    
    
    4.0
    %
    
    
    15,881
    
    
    
    4.0
    %Plumas Bank
    
    
    45,591
    
    
    
    11.4
    %
    
    
    45,415
    
    
    
    11.5
    %Minimum requirement for
Well-Capitalized institution
    
    
    23,914
    
    
    
    6.0
    %
    
    
    23,790
    
    
    
    6.0
    %Minimum regulatory requirement
    
    
    15,943
    
    
    
    4.0
    %
    
    
    15,860
    
    
    
    4.0
    %Total Risk-Based Capital RatioPlumas Bancorp and Subsidiary
    
    
    51,094
    
    
    
    12.8
    %
    
    
    50,475
    
    
    
    12.7
    %Minimum regulatory requirement
    
    
    31,931
    
    
    
    8.0
    %
    
    
    31,763
    
    
    
    8.0
    %Plumas Bank
    
    
    50,542
    
    
    
    12.7
    %
    
    
    49,681
    
    
    
    12.5
    %Minimum requirement for
Well-Capitalized institution
    
    
    39,857
    
    
    
    10.0
    %
    
    
    39,651
    
    
    
    10.0
    %Minimum regulatory requirement
    
    
    31,886
    
    
    
    8.0
    %
    
    
    31,720
    
    
    
    8.0
    %
  
    
    Submission of an application on or before November 14, 2008 to the QFIs Federal
banking regulator to obtain preliminary approval to participate in the CPP;
 
    
    If the QFI receives preliminary approval, it will have 30 days within which to
submit final documentation and fulfill any outstanding requirements;
 
    
    The minimum amount of capital eligible for purchase by the UST under the CPP is 1
percent of the TotalRisk-Weighted Assets of the QFI and the maximum is the lesser of
(i) an amount equal to 3 percent of the Total Risk-Weighted Assets of the QFI or (ii)
$25 billion;
 
    
    Capital acquired by a QFI under the CPP will be accorded Tier 1 capital treatment;
 
    
    The preferred stock issued to the UST will be non-voting (except in the case of
class votes), senior perpetual preferred stock that ranks senior to common stock and
pari passu with existing preferred stock (except junior preferred stock);
 
    
    In addition to the preferred stock, the UST will be issued warrants to acquire
 shares of the QFIs common stock equal in value to 15 percent of the amount of capital
purchased by the UST;
  28




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##### Table of Contents




    
    Dividends on the preferred stock are payable to the UST at the rate of 5% per annum
for the first 5 years and 9% per annum thereafter;
 
    
    Subject to certain exceptions and other requirements, no redemption of the
preferred stock is permitted during the first 3 years;
 
    
    Certain restrictions on the payment of dividends to shareholders of the QFI shall
remain in effect while the preferred stock purchased by the UST is outstanding;
 
    
    Any repurchase of QFI shares will require the consent of the UST, subject to
certain exceptions;
 
    
    The preferred shares are not subject to any contractual restrictions on transfer;
and
 
    
    The QFI must agree to be bound by certain executive compensation and corporate
governance requirements and senior executive officers must agree to certain
compensation restrictions.
  LIQUIDITY
      29




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##### Table of Contents



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
  
 
 ITEM 4. CONTROLS AND PROCEDURES
    30




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##### Table of Contents



PART II  OTHER INFORMATION
 
 
 ITEM 1. LEGAL PROCEEDINGS
  
 
 ITEM 1A RISK FACTORS
  
 
 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
    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)July 1, 2008 to July 31, 2008
    
    
    8,774
    
    
    $
    10.57
    
    
    
    8,774
    
    
    
    182,754August 1, 2008 to August 31, 2008
    
    
    6,449
    
    
    $
    10.32
    
    
    
    6,449
    
    
    
    176,305September 1, 2008 to September 30, 2008
    
    
    10,922
    
    
    $
    10.62
    
    
    
    10,922
    
    
    
    165,383Total
    
    
    26,145
    
    
    $
    10.53
    
    
    
    26,145
 (1)
    
    Includes commissions.(2)
    
    On December 20, 2007 the Company announced that for
2008 its board of directors authorized a common stock repurchase plan for up to
244,000 shares, or 5% of the Companys shares outstanding on December 20, 2007.  31




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##### Table of Contents



ITEM 3. DEFAULTS UPON SENIOR SECURITIES
  
 
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  
 
 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 September 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 September 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 Registrant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 September 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 September 30, 2002, which is incorporated
by this reference herein.
  32




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##### Table of Contents



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.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 September 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 September 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 September 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 September 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 September 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 September
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 September 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 September 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 September 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 September 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 September 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 September
30, 2002, which is incorporated by this reference herein.
  33




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##### Table of Contents



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 September 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 September 30, 2002, which is incorporated
by this reference herein.10.40
    
    
    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.10.41
    
    
    Form of Indemnification Agreement, is included as Exhibit 10.41 to the Registrants
10-QSB for September 30, 2002, 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 September 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 September 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.10.64
    
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement
for Alvin Blickenstaff adopted on September 19, 2007, is included as Exhibit 10.64 to
the Registrants 8-K filed on September 25, 2007, which is incorporated by this
reference herein.10.65
    
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement
for Arthur C. Grohs adopted on September 19, 2007, is included as Exhibit 10.65 to the
Registrants 8-K filed on September 25, 2007, which is incorporated by this reference
herein.10.66
    
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement
for Jerry V. Kehr adopted on September 19, 2007, is included as Exhibit 10.66 to the
Registrants 8-K filed on September 25, 2007, which is incorporated by this reference
herein.
  34




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##### Table of Contents



10.67
    
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement
for Terrance J. Reeson adopted on September 19, 2007, is included as Exhibit 10.67 to
the Registrants 8-K filed on September 25, 2007, which is incorporated by this
reference herein.10.68
    
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement
for Thomas Watson adopted on September 19, 2007, is included as Exhibit 10.68 to the
Registrants 8-K filed on September 25, 2007, which is incorporated by this reference
herein.10.69
    
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement
for Daniel E. West adopted on September 19, 2007, is included as Exhibit 10.69 to the
Registrants 8-K filed on September 25, 2007, which is incorporated by this reference
herein.10.70
    
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement
for Gerald W. Fletcher adopted on October 9, 2007, is included as Exhibit 10.70 to the
Registrants 10-Q for September 30, 2007, 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 Condensed Consolidated Financial Statements as Footnote 5 -
Earnings Per Share.31.1
    
    
    Rule 13a-14(a) [Section 302] Certification of Principal Financial Officer dated
November 6, 2008.31.2
    
    
    Rule 13a-14(a) [Section 302] Certification of Principal Executive Officer dated
November 6, 2008.32.1
    
    
    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 November 6,
2008.32.2
    
    
    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 November 6,
2008.
  35




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##### Table of Contents



SIGNATURES
  Date: November 6, 2008
    PLUMAS BANCORP
(Registrant)/s/ Andrew J. RybackAndrew J. RybackExecutive Vice President Chief Financial Officer/s/ Douglas N. BiddleDouglas N. BiddlePresident and Chief Executive Officer  36




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##### Table of Contents



EXHIBIT INDEX
 ExhibitNumber
    
    Description31.1
    
    
    Rule 13a-14(a) [Section 302] Certification of Principal Financial Officer dated
November 6, 2008.31.2
    
    
    Rule 13a-14(a) [Section 302] Certification of Principal Executive Officer dated
November 6, 2008.32.1
    
    
    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 November 6,
2008.32.2
    
    
    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 November 6,
2008.