##### 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, 2005
 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
    
    (I.R.S. Employer Identification No.)Incorporation or Organization)
 35 S. Lindan Avenue, Quincy, California
    
    95971(Address of Principal Executive Offices)
    
    (Zip Code)
 (530) 283-7305
 þ o
 o þ
 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 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 3.3EXHIBIT 3.4EXHIBIT 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 31,2005
    
    
    2004AssetsCash and due from banks
    
    $
    17,870
    
    
    $
    11,444Federal funds sold
    
    
    15,445
    
    
    
    Investment securities (fair value of $95,170 at
September 30, 2005 and $113,390 at December 31, 2004)
    
    
    95,110
    
    
    
    113,252Loans, less allowance for loan losses of $3,329 at
September 30, 2005 and $2,762 at December 31, 2004
(Notes 3 and 4)
    
    
    310,984
    
    
    
    263,891Premises and equipment, net
    
    
    10,917
    
    
    
    9,793Intangible assets, net
    
    
    1,713
    
    
    
    1,939Company owned life insurance
    
    
    8,855
    
    
    
    8,362Accrued interest receivable and other assets
    
    
    10,278
    
    
    
    8,665Total assets
    
    $
    471,172
    
    
    $
    417,346Liabilities and Shareholders EquityDeposits:Non-interest bearing
    
    $
    138,398
    
    
    $
    108,556Interest bearing
    
    
    286,381
    
    
    
    270,011Total deposits
    
    
    424,779
    
    
    
    378,567Federal Home Loan Bank advances
    
    
    
    
    
    
    1,035Accrued interest payable and other liabilities
    
    
    5,621
    
    
    
    3,667Junior subordinated deferrable interest debentures
    
    
    10,310
    
    
    
    6,186Total liabilities
    
    
    440,710
    
    
    
    389,455Commitments and contingencies (Note 4)
    
    
    
    
    
    
    Shareholders equity (Notes 5 and 8):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  4,958,752 shares
at September 30, 2005 and 4,901,197 shares at December
31, 2004
    
    
    4,302
    
    
    
    4,013Retained earnings
    
    
    27,062
    
    
    
    24,370Accumulated other comprehensive loss (Note 6)
    
    
    (902
    )
    
    
    (492
    )Total shareholders equity
    
    
    30,462
    
    
    
    27,891Total liabilities and shareholders equity
    
    $
    471,172
    
    
    $
    417,346
  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 302005
    
    
    2004
    
    
    2005
    
    
    2004Interest Income:Interest and fees on loans
    
    $
    5,862
    
    
    $
    4,179
    
    
    $
    16,017
    
    
    $
    11,855Interest on investment securities:Taxable
    
    
    640
    
    
    
    780
    
    
    
    2,030
    
    
    
    2,320Exempt from Federal income taxes
    
    
    133
    
    
    
    126
    
    
    
    405
    
    
    
    308Interest on Federal funds sold
    
    
    30
    
    
    
    44
    
    
    
    34
    
    
    
    101Interest on loans held for sale
    
    
    
    
    
    
    19
    
    
    
    8
    
    
    
    36Total interest income
    
    
    6,665
    
    
    
    5,148
    
    
    
    18,494
    
    
    
    14,620Interest Expense:Interest on deposits
    
    
    1,107
    
    
    
    639
    
    
    
    2,817
    
    
    
    1,892Interest on junior subordinated deferrable interest
debentures
    
    
    111
    
    
    
    77
    
    
    
    295
    
    
    
    215Interest on Federal Home Loan Bank advances
    
    
    44
    
    
    
    
    
    
    
    210
    
    
    
    Other
    
    
    4
    
    
    
    3
    
    
    
    9
    
    
    
    9Total interest expense
    
    
    1,266
    
    
    
    719
    
    
    
    3,331
    
    
    
    2,116Net interest income before provision for loan
losses
    
    
    5,399
    
    
    
    4,429
    
    
    
    15,163
    
    
    
    12,504Provision for Loan Losses
    
    
    300
    
    
    
    300
    
    
    
    900
    
    
    
    600Net interest income after provision for loan losses
    
    
    5,099
    
    
    
    4,129
    
    
    
    14,263
    
    
    
    11,904Non-Interest Income:Service charges
    
    
    759
    
    
    
    789
    
    
    
    2,223
    
    
    
    2,205Gain on sale of loans
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    49Gain (loss) on sale of available-for-sale investment
securities, net
    
    
    
    
    
    
    82
    
    
    
    (8
    )
    
    
    229Gain (loss) on sale of other real estate and vehicles, net
    
    
    7
    
    
    
    (19
    )
    
    
    (37
    )
    
    
    70Earnings on company owned life insurance policies
    
    
    84
    
    
    
    108
    
    
    
    263
    
    
    
    315Other
    
    
    349
    
    
    
    299
    
    
    
    977
    
    
    
    747Total non-interest income
    
    
    1,199
    
    
    
    1,259
    
    
    
    3,418
    
    
    
    3,615Non-Interest Expenses:Salaries and employee benefits
    
    
    2,405
    
    
    
    2,221
    
    
    
    7,071
    
    
    
    6,650Occupancy and equipment
    
    
    775
    
    
    
    675
    
    
    
    2,268
    
    
    
    2,027Other
    
    
    1,127
    
    
    
    1,024
    
    
    
    3,294
    
    
    
    2,917Total non-interest expenses
    
    
    4,307
    
    
    
    3,920
    
    
    
    12,633
    
    
    
    11,594Income before provision for income taxes
    
    
    1,991
    
    
    
    1,468
    
    
    
    5,048
    
    
    
    3,925Provision for Income Taxes
    
    
    743
    
    
    
    537
    
    
    
    1,820
    
    
    
    1,418Net income
    
    $
    1,248
    
    
    $
    931
    
    
    $
    3,228
    
    
    $
    2,507Basic earnings per share (Notes 5 and 8)
    
    $
    0.25
    
    
    $
    0.19
    
    
    $
    0.65
    
    
    $
    0.51Diluted earnings per share (Notes 5 and 8)
    
    $
    0.24
    
    
    $
    0.19
    
    
    $
    0.64
    
    
    $
    0.50
  3




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PLUMAS BANCORP
 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
 For the Nine MonthsEnded September 30,2005
    
    
    2004Cash Flows from Operating Activities:Net income
    
    $
    3,228
    
    
    $
    2,507Adjustments to reconcile net income to net cash provided by operating
activities:Provision for loan losses
    
    
    900
    
    
    
    600Decrease in deferred loan origination fees, net
    
    
    (967
    )
    
    
    (109
    )Depreciation and amortization
    
    
    1,565
    
    
    
    1,220Net loss (gain) on sale of available-for-sale investment securities
    
    
    8
    
    
    
    (229
    )Amortization of investment security premiums
    
    
    541
    
    
    
    710Accretion of investment security discounts
    
    
    (52
    )
    
    
    (61
    )Net loss on sale of premises and equipment
    
    
    4
    
    
    
    2Net loss (gain) on sale of other real estate and vehicles
    
    
    37
    
    
    
    (70
    )Net decrease in loans held for sale
    
    
    
    
    
    
    44Increase in cash surrender value of life insurance policies
    
    
    (212
    )
    
    
    (266
    )(Increase) decrease in accrued interest receivable and other assets
    
    
    (1,383
    )
    
    
    286Increase in accrued interest payable and other liabilities
    
    
    1,954
    
    
    
    595Benefit for deferred taxes
    
    
    (22
    )
    
    
    (8
    )Net cash provided by operating activities
    
    
    5,601
    
    
    
    5,221Cash Flows from Investing Activities:Proceeds from matured and called available-for-sale investment securities
    
    
    11,000
    
    
    
    13,320Proceeds from matured and called held-to-maturity investment securities
    
    
    1,097
    
    
    
    1,275Proceeds from sales of available-for-sale investment securities
    
    
    1,992
    
    
    
    31,378Purchases of available-for-sale investment securities
    
    
    
    
    
    
    (36,652
    )Purchases of held-to-maturity investment securities
    
    
    
    
    
    
    (6,231
    )Proceeds from principal repayments from available-for-sale
government-guaranteed mortgage-backed securities
    
    
    2,780
    
    
    
    2,029Proceeds from principal repayments from held-to-maturity
government-guaranteed mortgage-backed securities
    
    
    79
    
    
    
    49Net increase in loans
    
    
    (47,167
    )
    
    
    (34,067
    )Proceeds from sale of other real estate and vehicles
    
    
    183
    
    
    
    853Purchase of company owned life insurance
    
    
    (281
    )
    
    
    Purchase of premises and equipment
    
    
    (2,467
    )
    
    
    (688
    )Net cash used in investing activities
    
    
    (32,784
    )
    
    
    (28,734
    )
  4




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##### Table of Contents



PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
 For the Nine MonthsEnded September 30,2005
    
    
    2004Cash Flows from Financing Activities:Net increase in demand, interest bearing and savings deposits
    
    $
    36,718
    
    
    $
    35,822Net increase in time deposits
    
    
    9,494
    
    
    
    1,791Payment of Federal Home Loan Bank advances
    
    
    (1,035
    )
    
    
    Proceeds from issuance of junior subordinated deferrable interest debentures
    
    
    4,124
    
    
    
    Proceeds from exercise of stock options
    
    
    289
    
    
    
    67Payment of cash dividends
    
    
    (536
    )
    
    
    (456
    )Net cash provided by financing activities
    
    
    49,054
    
    
    
    37,224Increase in cash and cash equivalents
    
    
    21,871
    
    
    
    13,711Cash and Cash Equivalents at Beginning of Year
    
    
    11,444
    
    
    
    30,012Cash and Cash Equivalents at End of Period
    
    $
    33,315
    
    
    $
    43,723Supplemental Disclosure of Cash Flow Information:Cash paid during the period for:Interest expense
    
    $
    3,075
    
    
    $
    2,049Income taxes
    
    $
    730
    
    
    $
    1,485Non-Cash Investing Activities:Real estate and vehicles acquired through foreclosure
    
    $
    141
    
    
    $
    237Net change in unrealized gain on available-for-sale securities
    
    $
    (409
    )
    
    $
    (386
    )Non-Cash Financing Activities:Common stock retired in connection with the exercise of stock options
    
    $
    80
    
    
    $
    176
  5




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##### Table of Contents



PLUMAS BANCORP
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 1. GENERAL
   2. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
     6




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##### Table of Contents



3. LOANS
  September 30,
    
    
    December 31,2005
    
    
    2004Commercial
    
    $
    43,881
    
    
    $
    42,689Agricultural
    
    
    31,287
    
    
    
    31,067Real estate
 mortgage
    
    
    108,544
    
    
    
    102,125Real estate
 construction and land development
    
    
    51,837
    
    
    
    31,964Consumer
    
    
    78,057
    
    
    
    59,068313,606
    
    
    
    266,913Deferred loan costs (fees), net
    
    
    707
    
    
    
    (260
    )Allowance for loan losses
    
    
    (3,329
    )
    
    
    (2,762
    )$
    310,984
    
    
    $
    263,891
 4. COMMITMENTS AND CONTINGENCIES
     7




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##### Table of Contents



5. EARNINGS PER SHARE
  For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004Earnings Per Share:Basic earnings per share
    
    $
    0.25
    
    
    $
    0.19
    
    
    $
    0.65
    
    
    $
    0.51Diluted earnings per share
    
    $
    0.24
    
    
    $
    0.19
    
    
    $
    0.64
    
    
    $
    0.50Weighted Average Number of
Shares Outstanding:Basic shares
    
    
    4,951,006
    
    
    
    4,896,606
    
    
    
    4,938,998
    
    
    
    4,887,109Diluted shares
    
    
    5,351,364
    
    
    
    5,016,544
    
    
    
    5,355,103
    
    
    
    5,007,046
  6. COMPREHENSIVE INCOME
    7. ACCOUNTING PRONOUCEMENTS
 Share-Based
Payments
 8. STOCK-BASED COMPENSATION
  8




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Accounting for Stock Issued to Employees
 Accounting for Stock-Based Compensation
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004Net income as reported
    
    $
    1,248
    
    
    $
    931
    
    
    $
    3,228
    
    
    $
    2,507Deduct: Total stock-based compensation
expense determined under the fair value
based method for all awards, net of
related tax effects
    
    
    45
    
    
    
    23
    
    
    
    132
    
    
    
    68Pro forma net income
    
    $
    1,203
    
    
    $
    908
    
    
    $
    3,096
    
    
    $
    2,439Basic earnings per share  as reported
    
    $
    0.25
    
    
    $
    0.19
    
    
    $
    0.65
    
    
    $
    0.51Basic earnings per share  pro forma
    
    $
    0.24
    
    
    $
    0.18
    
    
    $
    0.63
    
    
    $
    0.49Diluted earnings per share  as reported
    
    $
    0.24
    
    
    $
    0.19
    
    
    $
    0.64
    
    
    $
    0.50Diluted earnings per share  pro forma
    
    $
    0.24
    
    
    $
    0.18
    
    
    $
    0.62
    
    
    $
    0.49
  For the Three Months EndedSeptember 30, 2005
    
    
    September 30, 2004Weighted average fair value of options granted
    
    
    4.77
    
    
    $
    N/ADividend yield
    
    
    1.4
    %
    
    
    N/AExpected volatility
    
    
    13.7
    %
    
    
    N/ARisk-free interest rate
    
    
    4.1
    %
    
    
    N/AExpected option life in years
    
    
    5.0
    
    
    
    N/A
  For the Nine Months EndedSeptember 30, 2005
    
    
    September 30, 2004Weighted average fair value of options granted
    
    
    4.77
    
    
    $
    4.32Dividend yield
    
    
    1.4
    %
    
    
    1.5
    %Expected volatility
    
    
    13.7
    %
    
    
    15.5
    %Risk-free interest rate
    
    
    4.1
    %
    
    
    2.8
    %Expected option life in years
    
    
    5.0
    
    
    
    5.0
 9




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PART
I  FINANCIAL INFORMATION
 
 ITEM 2.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND
RESULTS OF OPERATIONS
   INTRODUCTION
   STOCK SPLIT
  OVERVIEW
  10




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##### Table of Contents



RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005
 Net interest income before provision for loan losses.
    11




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For the Nine Months Ended September 30, 2005
    
    
    For the Nine Months Ended September 30, 2004Average Balance
    
    
    Interest
    
    
    Yield/
    
    
    Average Balance
    
    
    Interest
    
    
    Yield/(in thousands)
    
    
    (in thousands)
    
    
    Rate
    
    
    (in thousands)
    
    
    (in thousands)
    
    
    RateInterest-earning assets:Loans (1) (2)
    
    $
    297,526
    
    
    $
    16,025
    
    
    
    7.20
    %
    
    $
    225,484
    
    
    $
    11,891
    
    
    
    7.05
    %Investment securities (1)
    
    
    101,545
    
    
    
    2,435
    
    
    
    3.21
    %
    
    
    114,,346
    
    
    
    2,628
    
    
    
    3.07
    %Federal funds sold
    
    
    1,267
    
    
    
    34
    
    
    
    3.59
    %
    
    
    12,117
    
    
    
    101
    
    
    
    1.11
    %Total interest-earning assets
    
    
    400,338
    
    
    
    18,494
    
    
    
    6.18
    %
    
    
    351,947
    
    
    
    14,620
    
    
    
    5.55
    %Cash and due from banks
    
    
    16,276
    
    
    
    
    
    
    
    
    
    
    
    24,943Other assets
    
    
    26,580
    
    
    
    
    
    
    
    
    
    
    
    25,658Total assets
    
    $
    443,194
    
    
    
    
    
    
    
    
    
    
    $
    402,548Interest-bearing liabilities:NOW deposits
    
    $
    44,786
    
    
    
    62
    
    
    
    0.19
    %
    
    $
    43,475
    
    
    
    43
    
    
    
    0.13
    %Money market deposits
    
    
    63,621
    
    
    
    528
    
    
    
    1.11
    %
    
    
    64,972
    
    
    
    358
    
    
    
    0.74
    %Savings deposits
    
    
    67,788
    
    
    
    320
    
    
    
    0.63
    %
    
    
    63,320
    
    
    
    214
    
    
    
    0.45
    %Time deposits
    
    
    98,044
    
    
    
    1,907
    
    
    
    2.60
    %
    
    
    93,187
    
    
    
    1,277
    
    
    
    1.83
    %Federal Home Loan Bank advances
    
    
    9,254
    
    
    
    210
    
    
    
    3.03
    %
    
    
    
    
    
    
    
    
    
    
    Other interest-bearing liabilities
    
    
    237
    
    
    
    9
    
    
    
    5.08
    %
    
    
    209
    
    
    
    9
    
    
    
    5.76
    %Junior subordinated debentures
    
    
    6,231
    
    
    
    295
    
    
    
    6.33
    %
    
    
    6,186
    
    
    
    215
    
    
    
    4.65
    %Total interest-bearing liabilities
    
    
    289,961
    
    
    
    3,331
    
    
    
    1.54
    %
    
    
    271,349
    
    
    
    2,116
    
    
    
    1.04
    %Non-interest bearing deposits
    
    
    120,256
    
    
    
    
    
    
    
    
    
    
    
    101,789Other liabilities
    
    
    4,094
    
    
    
    
    
    
    
    
    
    
    
    2,671Shareholders equity
    
    
    28,883
    
    
    
    
    
    
    
    
    
    
    
    26,739Total liabilities & equity
    
    $
    443,194
    
    
    
    
    
    
    
    
    
    
    $
    402,548Cost of funding interest-earning assets (3)
    
    
    
    
    
    
    
    
    
    
    1.11
    %
    
    
    
    
    
    
    
    
    
    
    0.80
    %Net interest income and margin (4)
    
    
    
    
    
    $
    15,163
    
    
    
    5.06
    %
    
    
    
    
    
    $
    12,504
    
    
    
    4.75
    %
 
 (1)
    
    Not computed on a tax-equivalent basis.(2)
    
    Loan fees included in loan interest income for the nine-month periods ended September 30,
2005 and 2004 were $148,000 and $340,000, 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. 12




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2005 over 2004 change in net interest incomefor the nine months ended September 30(in thousands)Volume (1)
    
    
    Rate (2)
    
    
    Mix (3)
    
    
    TotalInterest-earning assets:Loans
    
    $
    3,799
    
    
    $
    254
    
    
    $
    81
    
    
    $
    4,134Investment securities
    
    
    (294
    )
    
    
    114
    
    
    
    (13
    )
    
    
    (193
    )Federal funds sold
    
    
    (90
    )
    
    
    224
    
    
    
    (201
    )
    
    
    (67
    )Total interest income
    
    
    3,415
    
    
    
    592
    
    
    
    (133
    )
    
    
    3,874Interest-bearing liabilities:NOW deposits
    
    
    1
    
    
    
    17
    
    
    
    1
    
    
    
    19Money market deposits
    
    
    (7
    )
    
    
    181
    
    
    
    (4
    )
    
    
    170Savings deposits
    
    
    15
    
    
    
    85
    
    
    
    6
    
    
    
    106Time deposits
    
    
    67
    
    
    
    536
    
    
    
    27
    
    
    
    630FHLB advances
    
    
    
    
    
    
    
    
    
    
    210
    
    
    
    210Other interest-bearing liabilities
    
    
    1
    
    
    
    (1
    )
    
    
    
    
    
    
    Junior subordinated debentures
    
    
    1
    
    
    
    78
    
    
    
    1
    
    
    
    80Total interest expense
    
    
    78
    
    
    
    896
    
    
    
    241
    
    
    
    1,215Net interest income
    
    $
    3,337
    
    
    $
    (304
    )
    
    $
    (374
    )
    
    $
    2,659
 
 (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.
  13




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##### Table of Contents



For the Nine MonthsEnded September 30
    
    
    
    
    
    Percentage2005
    
    
    2004
    
    

Dollar Change
    
    

ChangeService charges on deposit accounts
    
    $
    2,223
    
    
    $
    2,205
    
    
    $
    18
    
    
    
    0.8
    %Earnings on life insurance policies
    
    
    263
    
    
    
    315
    
    
    
    (52
    )
    
    
    -16.5
    %Merchant processing income
    
    
    252
    
    
    
    187
    
    
    
    65
    
    
    
    34.8
    %Investment services income
    
    
    148
    
    
    
    127
    
    
    
    21
    
    
    
    16.5
    %Mortgage loan commission and servicing fees
    
    
    130
    
    
    
    151
    
    
    
    (21
    )
    
    
    -13.9
    %Customer service fees
    
    
    84
    
    
    
    95
    
    
    
    (11
    )
    
    
    -11.6
    %Official check fees
    
    
    78
    
    
    
    43
    
    
    
    35
    
    
    
    81.4
    %Federal Home Loan Bank dividends
    
    
    59
    
    
    
    33
    
    
    
    26
    
    
    
    78.8
    %Tax refunds
    
    
    58
    
    
    
    
    
    
    
    58
    
    
    
    100.0
    %Safe deposit box and night depository income
    
    
    51
    
    
    
    46
    
    
    
    5
    
    
    
    10.9
    %Printed check fee income
    
    
    31
    
    
    
    15
    
    
    
    16
    
    
    
    106.7
    %Other deposit account fees
    
    
    29
    
    
    
    18
    
    
    
    11
    
    
    
    61.1
    %Gain on sale of loans
    
    
    
    
    
    
    49
    
    
    
    (49
    )
    
    
    -100.0
    %(Loss) gain on sale of securities
    
    
    (8
    )
    
    
    229
    
    
    
    (237
    )
    
    
    -103.5
    %(Loss) gain on sale of real estate and vehicles
    
    
    (37
    )
    
    
    70
    
    
    
    (107
    )
    
    
    152.9
    %Other
    
    
    57
    
    
    
    32
    
    
    
    25
    
    
    
    78.1
    %Total non-interest income
    
    $
    3,418
    
    
    $
    3,615
    
    
    $
    (197
    )
    
    
    -5.4
    %
 Non-interest expenses.
    14




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##### Table of Contents



For the Nine MonthsEnded September 30
    
    
    
    
    
    Percentage2005
    
    
    2004
    
    

Dollar Change
    
    
    ChangeSalaries and employee benefits
    
    $
    7,071
    
    
    $
    6,650
    
    
    $
    421
    
    
    
    6.3
    %Occupancy and equipment
    
    
    2,268
    
    
    
    2,027
    
    
    
    241
    
    
    
    11.9
    %Professional fees
    
    
    542
    
    
    
    384
    
    
    
    158
    
    
    
    41.1
    %Business development
    
    
    364
    
    
    
    284
    
    
    
    80
    
    
    
    28.2
    %Advertising and shareholder relations
    
    
    340
    
    
    
    238
    
    
    
    102
    
    
    
    42.9
    %Armored car and courier
    
    
    270
    
    
    
    277
    
    
    
    (7
    )
    
    
    -2.5
    %Telephone and data communication
    
    
    265
    
    
    
    256
    
    
    
    9
    
    
    
    3.5
    %Stationery and supplies
    
    
    253
    
    
    
    223
    
    
    
    30
    
    
    
    13.5
    %Director compensation
    
    
    237
    
    
    
    213
    
    
    
    24
    
    
    
    11.3
    %Deposit premium amortization
    
    
    226
    
    
    
    224
    
    
    
    2
    
    
    
    0.9
    %Outside service fees
    
    
    208
    
    
    
    176
    
    
    
    32
    
    
    
    0.2
    %Postage
    
    
    182
    
    
    
    185
    
    
    
    (3
    )
    
    
    -1.6
    %Insurance
    
    
    177
    
    
    
    174
    
    
    
    3
    
    
    
    1.7
    %Loan and collection expenses
    
    
    79
    
    
    
    153
    
    
    
    (74
    )
    
    
    -48.4
    %Other
    
    
    151
    
    
    
    130
    
    
    
    21
    
    
    
    16.2
    %Total non-interest expense
    
    $
    12,633
    
    
    $
    11,594
    
    
    $
    1,039
    
    
    
    9.0
    %
 RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005
 Net interest income before provision for loan losses.
    15




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##### Table of Contents



For the Three Months Ended September 30, 2005
    
    
    For the Three Months Ended September 30, 2004Average Balance
    
    
    Interest
    
    
    Yield/
    
    
    Average Balance
    
    
    Interest
    
    
    Yield/(in thousands)
    
    
    (in thousands)
    
    
    Rate
    
    
    (in thousands)
    
    
    (in thousands)
    
    
    RateInterest-earning assets:Loans (1) (2)
    
    $
    317,730
    
    
    $
    5,862
    
    
    
    7.32
    %
    
    $
    239,912
    
    
    $
    4,198
    
    
    
    6.94
    %Investment securities (1)
    
    
    96,071
    
    
    
    773
    
    
    
    3.19
    %
    
    
    113,776
    
    
    
    906
    
    
    
    3.16
    %Federal funds sold
    
    
    3,207
    
    
    
    30
    
    
    
    3.71
    %
    
    
    12,172
    
    
    
    44
    
    
    
    1.43
    %Total interest-earning assets
    
    
    417,008
    
    
    
    6,665
    
    
    
    6.34
    %
    
    
    365,860
    
    
    
    5,148
    
    
    
    5.58
    %Cash and due from banks
    
    
    17,675
    
    
    
    
    
    
    
    
    
    
    
    24,675Other assets
    
    
    27,467
    
    
    
    
    
    
    
    
    
    
    
    26,199Total assets
    
    $
    462,150
    
    
    
    
    
    
    
    
    
    
    $
    416,734Interest-bearing liabilities:NOW deposits
    
    $
    46,738
    
    
    
    28
    
    
    
    0.24
    %
    
    $
    44,471
    
    
    
    13
    
    
    
    0.12
    %Money market deposits
    
    
    63,707
    
    
    
    205
    
    
    
    1.28
    %
    
    
    63,720
    
    
    
    117
    
    
    
    0.73
    %Savings deposits
    
    
    68,519
    
    
    
    121
    
    
    
    0.70
    %
    
    
    66,322
    
    
    
    75
    
    
    
    0.45
    %Time deposits
    
    
    102,308
    
    
    
    753
    
    
    
    2.92
    %
    
    
    93,183
    
    
    
    434
    
    
    
    1.85
    %Federal Home Loan Bank advances
    
    
    4,935
    
    
    
    44
    
    
    
    3.54
    %
    
    
    
    
    
    
    
    
    
    
    Other interest-bearing liabilities
    
    
    251
    
    
    
    4
    
    
    
    6.32
    %
    
    
    215
    
    
    
    3
    
    
    
    5.54
    %Junior subordinated debentures
    
    
    6,320
    
    
    
    111
    
    
    
    6.97
    %
    
    
    6,186
    
    
    
    77
    
    
    
    4.94
    %Total interest-bearing liabilities
    
    
    292,778
    
    
    
    1,266
    
    
    
    1.72
    %
    
    
    274,097
    
    
    
    719
    
    
    
    1.04
    %Non-interest bearing deposits
    
    
    134,678
    
    
    
    
    
    
    
    
    
    
    
    113,031Other liabilities
    
    
    4,670
    
    
    
    
    
    
    
    
    
    
    
    2,875Shareholders equity
    
    
    30,024
    
    
    
    
    
    
    
    
    
    
    
    26,731Total liabilities & equity
    
    $
    462,150
    
    
    
    
    
    
    
    
    
    
    $
    416,734Cost of funding interest-earning assets (3)
    
    
    
    
    
    
    
    
    
    
    1.20
    %
    
    
    
    
    
    
    
    
    
    
    078
    %Net interest income and margin (4)
    
    
    
    
    
    $
    5,399
    
    
    
    5.14
    %
    
    
    
    
    
    $
    4,429
    
    
    
    4.80
    %
 
 (1)
    
    Not computed on a tax-equivalent basis.(2)
    
    Loan fees included in loan interest income for the three-month periods ended September 30,
2005 and 2004 were $48 and $96, 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. 16




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##### Table of Contents



2005 over 2004 change in net interest incomefor the three months ended September 30(in thousands)Volume (1)
    
    
    Rate (2)
    
    
    Mix (3)
    
    
    TotalInterest-earning assets:Loans
    
    $
    1,362
    
    
    $
    228
    
    
    $
    74
    
    
    $
    1,664Investment securities
    
    
    (141
    )
    
    
    9
    
    
    
    (1
    )
    
    
    (133
    )Federal funds sold
    
    
    (33
    )
    
    
    70
    
    
    
    (51
    )
    
    
    (14
    )Total interest income
    
    
    1,188
    
    
    
    308
    
    
    
    21
    
    
    
    1,517Interest-bearing liabilities:NOW deposits
    
    
    1
    
    
    
    14
    
    
    
    
    
    
    
    15Money market deposits
    
    
    
    
    
    
    88
    
    
    
    
    
    
    
    88Savings deposits
    
    
    2
    
    
    
    42
    
    
    
    2
    
    
    
    46Time deposits
    
    
    42
    
    
    
    252
    
    
    
    25
    
    
    
    319FHLB advances
    
    
    
    
    
    
    
    
    
    
    44
    
    
    
    44Other interest-bearing liabilities
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    1Junior subordinated debentures
    
    
    2
    
    
    
    32
    
    
    
    
    
    
    
    34Total interest expense
    
    
    48
    
    
    
    428
    
    
    
    71
    
    
    
    547Net interest income
    
    $
    1,140
    
    
    $
    (120
    )
    
    $
    (50
    )
    
    $
    970
 
 (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.
  17




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##### Table of Contents



For the Three MonthsEnded September 30(in thousands)
    
    2005
    
    
    2004
    
    
    Dollar Change
    
    
    Percentage ChangeService charges on deposit accounts
    
    $
    759
    
    
    $
    789
    
    
    $
    (30
    )
    
    
    -3.8
    %Merchant processing income
    
    
    120
    
    
    
    95
    
    
    
    25
    
    
    
    26.3
    %Earnings on life insurance policies
    
    
    84
    
    
    
    108
    
    
    
    (24
    )
    
    
    -22.2
    %Investment services income
    
    
    46
    
    
    
    48
    
    
    
    (2
    )
    
    
    -4.2
    %Mortgage loan commission and servicing fees
    
    
    40
    
    
    
    36
    
    
    
    4
    
    
    
    11.1
    %Official check fees
    
    
    32
    
    
    
    16
    
    
    
    16
    
    
    
    100.0
    %Customer service fees
    
    
    31
    
    
    
    29
    
    
    
    2
    
    
    
    6.9
    %Federal Home Loan Bank dividends
    
    
    21
    
    
    
    21
    
    
    
    
    
    
    
    
    %Safe deposit box and night depository income
    
    
    15
    
    
    
    15
    
    
    
    
    
    
    
    
    %Printed check fee income
    
    
    10
    
    
    
    7
    
    
    
    3
    
    
    
    42.9
    %Other deposit account fees
    
    
    10
    
    
    
    5
    
    
    
    5
    
    
    
    100.0
    %Gain (loss) on sale of real estate and vehicles
    
    
    7
    
    
    
    (19
    )
    
    
    26
    
    
    
    136.8
    %Gain on sale of securities
    
    
    
    
    
    
    82
    
    
    
    (82
    )
    
    
    -100.0
    %Other
    
    
    24
    
    
    
    27
    
    
    
    (3
    )
    
    
    -11.1
    %Total non-interest income
    
    $
    1,199
    
    
    $
    1,259
    
    
    $
    (60
    )
    
    
    -4.8
    %
 Non-interest expenses.
     18




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##### Table of Contents



For the Three MonthsEnded September 302005
    
    
    2004
    
    
    Dollar Change
    
    
    Percentage ChangeSalaries and employee benefits
    
    $
    2,405
    
    
    $
    2,221
    
    
    $
    184
    
    
    
    8.3
    %Occupancy and equipment
    
    
    775
    
    
    
    675
    
    
    
    100
    
    
    
    14.8
    %Professional fees
    
    
    180
    
    
    
    143
    
    
    
    37
    
    
    
    25.9
    %Business development
    
    
    126
    
    
    
    87
    
    
    
    39
    
    
    
    44.8
    %Advertising and shareholder relations
    
    
    116
    
    
    
    79
    
    
    
    37
    
    
    
    46.8
    %Telephone and data communication
    
    
    108
    
    
    
    88
    
    
    
    20
    
    
    
    22.7
    %Stationery and supplies
    
    
    93
    
    
    
    75
    
    
    
    18
    
    
    
    24.0
    %Armored car and courier
    
    
    82
    
    
    
    95
    
    
    
    (13
    )
    
    
    -13.7
    %Director compensation
    
    
    78
    
    
    
    71
    
    
    
    7
    
    
    
    9.9
    %Deposit premium amortization
    
    
    75
    
    
    
    76
    
    
    
    (1
    )
    
    
    1.3
    %Outside service fees
    
    
    65
    
    
    
    55
    
    
    
    10
    
    
    
    18.2
    %Insurance
    
    
    60
    
    
    
    58
    
    
    
    2
    
    
    
    3.4
    %Postage
    
    
    59
    
    
    
    60
    
    
    
    (1
    )
    
    
    -1.7
    %Loan and collection expenses
    
    
    34
    
    
    
    80
    
    
    
    (46
    )
    
    
    -57.5
    %Other
    
    
    51
    
    
    
    57
    
    
    
    (6
    )
    
    
    -10.5
    %Total
non-interest expense
    
    $
    4,307
    
    
    $
    3,920
    
    
    $
    387
    
    
    
    9.9
    %
 FINANCIAL CONDITION
 Loan portfolio composition.
 Nonperforming assets.
 19




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##### Table of Contents



Analysis of allowance for loan losses.
  For the Nine MonthsEnded September 30,2005
    
    
    2004Balance at January 1,
    
    $
    2,762
    
    
    $
    2,564Charge-offs:Commercial and agricultural
    
    
    (141
    )
    
    
    (95
    )Real estate mortgage
    
    
    
    
    
    
    Real estate construction
    
    
    
    
    
    
    Consumer
    
    
    (339
    )
    
    
    (465
    )Total charge-offs
    
    
    (480
    )
    
    
    (560
    )Recoveries:Commercial and agricultural
    
    
    19
    
    
    
    7Real estate mortgage
    
    
    
    
    
    
    1Real estate construction
    
    
    
    
    
    
    Consumer
    
    
    128
    
    
    
    113Total recoveries
    
    
    147
    
    
    
    121Net charge-offs
    
    
    (261
    )
    
    
    (439
    )Provision for loan losses
    
    
    900
    
    
    
    600Balance at June 30,
    
    $
    3,329
    
    
    $
    2,725Net charge-offs during the nine-month period to average loans
    
    
    0.09
    %
    
    
    0.19
    %Allowance for loan losses to total loans
    
    
    1.06
    %
    
    
    1.08
    %
 Investment securities.
 20




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##### Table of Contents



Premises and equipment.
 Accrued interest receivable and other assets.
 Deposits.
 Federal Home Loan Bank advances.
 Junior Subordinated Deferrable Interest Debentures.
 CAPITAL RESOURCES
   21




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##### Table of Contents



September 30, 2005
    
    

December 31, 2004Amount
    
    
    Ratio
    
    
    Amount
    
    
    RatioTier 1 Leverage RatioPlumas Bancorp and Subsidiary
    
    $
    39,534
    
    
    
    8.6
    %
    
    $
    32,444
    
    
    
    7.6
    %Minimum regulatory requirement
    
    
    17,576
    
    
    
    4.0
    %
    
    
    17,120
    
    
    
    4.0
    %Plumas Bank
    
    
    35,972
    
    
    
    7.8
    %
    
    
    31,982
    
    
    
    7.5
    %Minimum requirement for
Well-Capitalized institution
    
    
    23,005
    
    
    
    5.0
    %
    
    
    21,400
    
    
    
    5.0
    %Minimum regulatory requirement
    
    
    18,404
    
    
    
    4.0
    %
    
    
    17,120
    
    
    
    4.0
    %Tier 1 Risk-Based Capital RatioPlumas Bancorp and Subsidiary
    
    
    39,534
    
    
    
    10.2
    %
    
    
    32,444
    
    
    
    10.1
    %Minimum regulatory requirement
    
    
    12,806
    
    
    
    4.0
    %
    
    
    12,858
    
    
    
    4.0
    %Plumas Bank
    
    
    35,972
    
    
    
    9.3
    %
    
    
    31,982
    
    
    
    10.0
    %Minimum requirement for
Well-Capitalized institution
    
    
    23,195
    
    
    
    6.0
    %
    
    
    19,262
    
    
    
    6.0
    %Minimum regulatory requirement
    
    
    15,463
    
    
    
    4.0
    %
    
    
    12,841
    
    
    
    4.0
    %Total Risk-Based Capital RatioPlumas Bancorp and Subsidiary
    
    
    42,979
    
    
    
    11.1
    %
    
    
    35,206
    
    
    
    10.9
    %Minimum regulatory requirement
    
    
    25,611
    
    
    
    8.0
    %
    
    
    25,715
    
    
    
    8.0
    %Plumas Bank
    
    
    39,300
    
    
    
    10.2
    %
    
    
    34,744
    
    
    
    10.8
    %Minimum requirement for
Well-Capitalized institution
    
    
    38,658
    
    
    
    10.0
    %
    
    
    32,103
    
    
    
    10.0
    %Minimum regulatory requirement
    
    
    30,926
    
    
    
    8.0
    %
    
    
    25,682
    
    
    
    8.0
    %
 LIQUIDITY
   22




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##### Table of Contents



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
    23




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ITEM 4. CONTROLS AND PROCEDURES
   
 PART II  OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
  
 ITEM
2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
  
 ITEM 3. DEFAULTS UPON SENIOR SECURITIES
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  
 ITEM 5. OTHER INFORMATION
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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, 2002.3.4
    
    Amendment of the articles of Incorporation of Registrant
dated August 17, 2005.4
    
    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.10.3
    
    Executive Salary Continuation Agreement as amended of William E. Elliott dated
October 13, 1993, is included as Exhibit 10.3 to the Registrants 10-QSB for June
30, 2002, which is incorporated by this reference herein.10.4
    
    Split Dollar Agreements of William E. Elliott dated January 23, 2002, is included
as Exhibit 10.4 to the Registrants 10-QSB for June 30, 2002, 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.10.9
    
    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.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.10.18
    
    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.10.20
    
    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.
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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.10.30
    
    Amended and Restated Director Retirement Agreement of Christine McArthur dated May
12, 2000, is included as Exhibit 10.30 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.31
    
    Consulting Agreement of Christine McArthur dated May 12, 2000, is included as
Exhibit 10.31 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.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. 333-9695710.42
    
    1991 Stock Option Plan on Form S-8 filed August 19, 2002, File No. 333-9831910.43
    
    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. 333-10322910.44
    
    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.10.47
    
    Specimen form of Incentive Stock Option Agreement under the 1991 Stock Option Plan.10.48
    
    Specimen form of Non-Qualified Stock Option Agreement under the 1991 Stock Option
Plan.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.
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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
November 9, 2005.31.2
    
    Rule 13a-14(a) [Section 302] Certification of Principal Executive Officer dated
November 9, 2005.32.1
    
    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 9, 2005.32.2
    
    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 9, 2005.
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SIGNATURES
  PLUMAS BANCORP
  /s/ Andrew J. Ryback
 Andrew
J. RybackExecutive Vice President Chief Financial Officer/s/ Douglas N. Biddle
 Douglas
N. BiddlePresident and Chief Executive Officer
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