##### 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, 2007
 o
    
    TRANSITION REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934
 FOR THE TRANSITION PERIOD FROM  TO
 COMMISSION FILE NUMBER: 000-49883
 PLUMAS BANCORP
  California
    
    75-2987096(State or Other Jurisdiction of
    
    (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
 o þ




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TABLE OF CONTENTS  PART I  FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTSPART I  FINANCIAL INFORMATIONITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKITEM 4. CONTROLS AND PROCEDURESPART II  OTHER INFORMATIONITEM 1. LEGAL PROCEEDINGSITEM 1A RISK FACTORSITEM 2. UNREGISTERD SALES OF EQUITY SECURITIES AND USE OF PROCEEDSITEM 3. DEFAULTS UPON SENIOR SECURITIESITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSITEM 5. OTHER INFORMATIONITEM 6. EXHIBITSSIGNATURESEXHIBIT 10.70EXHIBIT 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 31,2007
    
    
    2006AssetsCash and due from banks
    
    $
    15,167
    
    
    $
    11,293Federal funds sold
    
    
    8,045
    
    
    
    Cash and cash equivalents
    
    
    23,212
    
    
    
    11,293Investment securities (fair value of $62,263 at
September 30, 2007 and $74,841 at December 31, 2006)
    
    
    62,252
    
    
    
    74,795Loans, less allowance for loan losses of $4,127 at
September 30, 2007 and $3,917 at December 31, 2006
(Notes 3 and 4)
    
    
    349,291
    
    
    
    351,977Premises and equipment, net
    
    
    14,799
    
    
    
    15,190Intangible assets, net
    
    
    1,112
    
    
    
    1,337Bank owned life insurance
    
    
    9,700
    
    
    
    9,449Accrued interest receivable and other assets
    
    
    9,355
    
    
    
    9,198Total assets
    
    $
    469,721
    
    
    $
    473,239Liabilities and Shareholders EquityDeposits:Non-interest bearing
    
    $
    119,956
    
    
    $
    121,464Interest bearing
    
    
    296,865
    
    
    
    280,712Total deposits
    
    
    416,821
    
    
    
    402,176Short-term borrowings
    
    
    
    
    
    
    20,000Accrued interest payable and other liabilities
    
    
    4,963
    
    
    
    4,901Junior subordinated deferrable interest debentures
    
    
    10,310
    
    
    
    10,310Total liabilities
    
    
    432,094
    
    
    
    437,387Commitments and contingencies (Note 4)
    
    
    
    
    
    
    Shareholders equity (Notes 5 and 7):Serial preferred stock, no par value; 10,000,000
shares authorized, none issued
    
    
    
    
    
    
    Common stock, no par value; 22,500,000 shares
authorized; issued and outstanding  4,933,616
shares at September 30, 2007 and 5,023,205 shares
at December 31, 2006
    
    
    4,987
    
    
    
    4,828Retained earnings
    
    
    32,965
    
    
    
    31,716Accumulated other comprehensive loss (Note 6)
    
    
    (325
    )
    
    
    (692
    )Total shareholders equity
    
    
    37,627
    
    
    
    35,852Total liabilities and shareholders equity
    
    $
    469,721
    
    
    $
    473,239
  2




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PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Interest Income:Interest and fees on loans
    
    $
    6,898
    
    
    $
    6,837
    
    
    $
    20,908
    
    
    $
    19,221Interest on investment securities:Taxable
    
    
    448
    
    
    
    608
    
    
    
    1,413
    
    
    
    1,940Exempt from Federal income taxes
    
    
    131
    
    
    
    133
    
    
    
    397
    
    
    
    397Interest on Federal funds sold
    
    
    83
    
    
    
    14
    
    
    
    91
    
    
    
    158Total interest income
    
    
    7,560
    
    
    
    7,592
    
    
    
    22,809
    
    
    
    21,716Interest Expense:Interest on deposits
    
    
    1,864
    
    
    
    1,561
    
    
    
    5,348
    
    
    
    4,342Interest on short-term borrowings
    
    
    29
    
    
    
    69
    
    
    
    465
    
    
    
    108Interest on junior subordinated deferrable interest debentures
    
    
    213
    
    
    
    215
    
    
    
    627
    
    
    
    599Other
    
    
    6
    
    
    
    6
    
    
    
    17
    
    
    
    15Total interest expense
    
    
    2,112
    
    
    
    1,851
    
    
    
    6,457
    
    
    
    5,064Net interest income before provision for loan losses
    
    
    5,448
    
    
    
    5,741
    
    
    
    16,352
    
    
    
    16,652Provision for Loan Losses
    
    
    125
    
    
    
    300
    
    
    
    500
    
    
    
    900Net interest income after provision for loan losses
    
    
    5,323
    
    
    
    5,441
    
    
    
    15,852
    
    
    
    15,752Non-Interest Income:Service charges
    
    
    1,009
    
    
    
    945
    
    
    
    2,766
    
    
    
    2,731Earnings on Bank owned life insurance policies
    
    
    105
    
    
    
    100
    
    
    
    311
    
    
    
    291Other
    
    
    314
    
    
    
    271
    
    
    
    918
    
    
    
    831Total non-interest income
    
    
    1,428
    
    
    
    1,316
    
    
    
    3,995
    
    
    
    3,853Non-Interest Expenses:Salaries and employee benefits
    
    
    2,675
    
    
    
    2,500
    
    
    
    8,142
    
    
    
    7,366Occupancy and equipment
    
    
    870
    
    
    
    827
    
    
    
    2,659
    
    
    
    2,387Other
    
    
    1,139
    
    
    
    1,176
    
    
    
    3,631
    
    
    
    3,579Total non-interest expenses
    
    
    4,684
    
    
    
    4,503
    
    
    
    14,432
    
    
    
    13,332Income before provision for income taxes
    
    
    2,067
    
    
    
    2,254
    
    
    
    5,415
    
    
    
    6,273Provision for Income Taxes
    
    
    789
    
    
    
    858
    
    
    
    2,055
    
    
    
    2,392Net income
    
    $
    1,278
    
    
    $
    1,396
    
    
    $
    3,360
    
    
    $
    3,881Basic earnings per share (Note 5)
    
    $
    0.26
    
    
    $
    0.28
    
    
    $
    0.67
    
    
    $
    0.78Diluted earnings per share (Note 5)
    
    $
    0.26
    
    
    $
    0.27
    
    
    $
    0.67
    
    
    $
    0.76
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PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
 For the Nine MonthsEnded September 30,2007
    
    
    2006Cash Flows from Operating Activities:Net income
    
    $
    3,360
    
    
    $
    3,881Adjustments to reconcile net income to net cash provided by operating
activities:Provision for loan losses
    
    
    500
    
    
    
    900Change in deferred loan origination costs/fees, net
    
    
    357
    
    
    
    (398
    )Depreciation and amortization
    
    
    1,665
    
    
    
    1,582Stock-based compensation expense
    
    
    209
    
    
    
    130Amortization of investment security premiums
    
    
    125
    
    
    
    312Accretion of investment security discounts
    
    
    (47
    )
    
    
    (67
    )Net loss on disposal/sale of premises and equipment
    
    
    32
    
    
    
    6Gain on sale of vehicles owned
    
    
    (24
    )
    
    
    (6
    )Earnings on Bank owned life insurance policies
    
    
    (311
    )
    
    
    (291
    )Expenses on Bank owned life insurance policies
    
    
    60
    
    
    
    55Increase in accrued interest receivable and other assets
    
    
    (456
    )
    
    
    (673
    )Increase (decrease) in accrued interest payable and other liabilities
    
    
    62
    
    
    
    (349
    )Net cash provided by operating activities
    
    
    5,532
    
    
    
    5,082Cash Flows from Investing Activities:Proceeds from matured and called available-for-sale investment securities
    
    
    21,375
    
    
    
    14,346Proceeds from matured and called held-to-maturity investment securities
    
    
    435
    
    
    
    45Purchases of available-for-sale investment securities
    
    
    (11,009
    )
    
    
    Purchases of held-to-maturity investment securities
    
    
    
    
    
    
    (155
    )Proceeds from principal repayments from available-for-sale
government-guaranteed mortgage-backed securities
    
    
    2,288
    
    
    
    2,782Net decrease (increase) in loans
    
    
    1,295
    
    
    
    (28,591
    )Proceeds from sale of other vehicles
    
    
    354
    
    
    
    124Purchase of bank owned life insurance
    
    
    
    
    
    
    (200
    )Purchase of premises and equipment
    
    
    (835
    )
    
    
    (4,035
    )Net cash provided by (used in) investing activities
    
    
    13,903
    
    
    
    (15,684
    )
  4




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PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
 For the Nine MonthsEnded September 30,2007
    
    
    2006Cash Flows from Financing Activities:Net decrease in demand, interest bearing and savings deposits
    
    $
    (15,973
    )
    
    $
    (1,779
    )Net increase (decrease) in time deposits
    
    
    30,618
    
    
    
    (6,768
    )Net (decrease) increase in short-term borrowings
    
    
    (20,000
    )
    
    
    9,500Net proceeds from exercise of stock options
    
    
    40
    
    
    
    108Payment of cash dividends
    
    
    (750
    )
    
    
    (651
    )Repurchase and retirement of common stock
    
    
    (1,451
    )
    
    
    Net cash (used in) provided by financing activities
    
    
    (7,516
    )
    
    
    410Increase (decrease) in cash and cash equivalents
    
    
    11,919
    
    
    
    (10,192
    )Cash and Cash Equivalents at Beginning of Year
    
    
    11,293
    
    
    
    24,596Cash and Cash Equivalents at End of Period
    
    $
    23,212
    
    
    $
    14,404Supplemental Disclosure of Cash Flow Information:Cash paid during the period for:Interest expense
    
    $
    5,995
    
    
    $
    4,945Income taxes
    
    $
    2,475
    
    
    $
    2,585Non-Cash Investing Activities:Vehicles acquired through foreclosure
    
    $
    352
    
    
    $
    117Real estate acquired through foreclosure
    
    $
    182
    
    
    $
    Loan transferred to other assets
    
    $
    
    
    
    $
    230Net decrease in unrealized loss on available-for-sale securities
    
    $
    367
    
    
    $
    227Non-Cash Financing Activities:Common stock retired in connection with the exercise of stock options
    
    $
    49
    
    
    $
    354
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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 31,2007
    
    
    2006Commercial
    
    $
    37,319
    
    
    $
    36,182Agricultural
    
    
    37,429
    
    
    
    35,577Real estate  mortgage
    
    
    120,733
    
    
    
    116,329Real estate  construction and land development
    
    
    80,281
    
    
    
    75,930Consumer
    
    
    76,831
    
    
    
    90,694352,593
    
    
    
    354,712Deferred loan costs, net
    
    
    825
    
    
    
    1,182Allowance for loan losses
    
    
    (4,127
    )
    
    
    (3,917
    )$
    349,291
    
    
    $
    351,977
 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 30,2007
    
    2006
    
    2007
    
    2006Earnings Per Share:Basic earnings per share
    
    $
    0.26
    
    
    $
    0.28
    
    
    $
    0.67
    
    
    $
    0.78Diluted earnings per share
    
    $
    0.26
    
    
    $
    0.27
    
    
    $
    0.67
    
    
    $
    0.76Weighted Average Number of
Shares Outstanding:
(in thousands)Basic shares
    
    
    4,945
    
    
    
    5,005
    
    
    
    4,980
    
    
    
    4,998Diluted shares
    
    
    4,976
    
    
    
    5,090
    
    
    
    5,025
    
    
    
    5,090
  6. COMPREHENSIVE INCOME
    7. STOCK-BASED COMPENSATION
  8




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WeightedAverageWeighted
    
    RemainingAverage
    
    Contractual
    
    AggregateExercise
    
    Term
    
    Intrinsic ValueShares
    
    Price
    
    (in years)
    
    (in thousands)Options outstanding at December 31, 2006
    
    
    290,914
    
    
    $
    11.62Options granted
    
    
    155,700
    
    
    
    16.37Options exercised
    
    
    (11,091
    )
    
    
    8.10Options cancelled
    
    
    (30,693
    )
    
    
    15.74Options outstanding at September 30, 2007
    
    
    404,830
    
    
    $
    13.23
    
    
    
    6.3
    
    
    $
    302Options exercisable at September 30, 2007
    
    
    175,993
    
    
    $
    10.60
    
    
    
    5.2
    
    
    $
    288Expected to vest after September 30, 2007
    
    
    228,837
    
    
    $
    15.25
    
    
    
    7.1
    
    
    $
    14
   8. INCOME TAXES
 Accounting for Uncertainty in Income Taxesan Interpretation of
FASB Statement No. 109 Accounting for
Income Taxes
 Accounting for Contingencies
  9




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9. RECENT ACCOUNTING DEVELOPMENTS
 Fair Value Option for Financial Assets and Financial Liabilities
 The Fair Value Option for Financial
Assets and Financial Liabilities  Including an Amendment of FASB Statement No. 115
 10. SUBSEQUENT EVENTS
  10




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PART I  FINANCIAL INFORMATION
 
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
   INTRODUCTION
   CASH DIVIDEND
  CRITICAL ACCOUNTING POLICIES AND ESTIMATES
   11




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RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007
 OVERVIEW
    Net interest income before provision for loan losses.
    12




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13




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For the Nine Months Ended September 30, 2007
    
    
    For the Nine Months Ended September 30, 2006Average Balance
    
    
    Interest
    
    
    Yield/
    
    
    Average Balance
    
    
    Interest
    
    
    Yield/(Dollars in thousands)
    
    (in thousands)
    
    
    (in thousands)
    
    
    Rate
    
    
    (in thousands)
    
    
    (in thousands)
    
    
    RateInterest-earning assets:Loans (1) (2)
    
    $
    354,478
    
    
    $
    20,908
    
    
    
    7.89
    %
    
    $
    330,153
    
    
    $
    19,221
    
    
    
    7.78
    %Investment securities (1)
    
    
    63,955
    
    
    
    1,810
    
    
    
    3.78
    %
    
    
    87,142
    
    
    
    2,337
    
    
    
    3.59
    %Federal funds sold
    
    
    2,384
    
    
    
    91
    
    
    
    5.10
    %
    
    
    4,679
    
    
    
    158
    
    
    
    4.51
    %Total interest earning assets
    
    
    420,817
    
    
    
    22,809
    
    
    
    7.25
    %
    
    
    421,974
    
    
    
    21,716
    
    
    
    6.88
    %Cash and due from banks
    
    
    12,886
    
    
    
    
    
    
    
    
    
    
    
    13,489Other assets
    
    
    32,413
    
    
    
    
    
    
    
    
    
    
    
    31,425Total assets
    
    $
    466,116
    
    
    
    
    
    
    
    
    
    
    $
    466,888Interest-bearing liabilities:NOW deposits
    
    $
    77,783
    
    
    
    1,043
    
    
    
    1.79
    %
    
    $
    79,987
    
    
    
    1,085
    
    
    
    1.81
    %Money market deposits
    
    
    40,634
    
    
    
    266
    
    
    
    0.88
    %
    
    
    58,541
    
    
    
    530
    
    
    
    1.21
    %Savings deposits
    
    
    51,552
    
    
    
    199
    
    
    
    0.52
    %
    
    
    60,733
    
    
    
    332
    
    
    
    0.73
    %Time deposits
    
    
    118,753
    
    
    
    3,840
    
    
    
    4.32
    %
    
    
    93,100
    
    
    
    2,395
    
    
    
    3.44
    %Short-term borrowings
    
    
    11,585
    
    
    
    465
    
    
    
    5.37
    %
    
    
    2,743
    
    
    
    108
    
    
    
    5.26
    %Other interest-bearing liabilities
    
    
    302
    
    
    
    17
    
    
    
    7.53
    %
    
    
    281
    
    
    
    15
    
    
    
    7.14
    %Junior subordinated debentures
    
    
    10,310
    
    
    
    627
    
    
    
    8.13
    %
    
    
    10,310
    
    
    
    599
    
    
    
    7.77
    %Total interest-bearing liabilities
    
    
    310,919
    
    
    
    6,457
    
    
    
    2.78
    %
    
    
    305,695
    
    
    
    5,064
    
    
    
    2.21
    %Non-interest bearing deposits
    
    
    113,748
    
    
    
    
    
    
    
    
    
    
    
    123,677Other liabilities
    
    
    4,628
    
    
    
    
    
    
    
    
    
    
    
    4,466Shareholders equity
    
    
    36,821
    
    
    
    
    
    
    
    
    
    
    
    33,050Total liabilities & equity
    
    $
    466,116
    
    
    
    
    
    
    
    
    
    
    $
    466,888Cost of funding interest-earning assets (3)
    
    
    
    
    
    
    
    
    
    
    2.05
    %
    
    
    
    
    
    
    
    
    
    
    1.60
    %Net interest income and margin (4)
    
    
    
    
    
    $
    16,352
    
    
    
    5.20
    %
    
    
    
    
    
    $
    16,652
    
    
    
    5.28
    %
 
 (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, 2007 and 2006 were $306,000 and $251,000, 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. 14




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2007 over 2006 change in net interest incomefor the nine months ended September 30:(in thousands)Volume (1)
    
    
    Rate (2)
    
    
    Mix (3)
    
    
    TotalInterest-earning assets:Loans
    
    $
    1,416
    
    
    $
    252
    
    
    $
    19
    
    
    $
    1,687Investment securities
    
    
    (622
    )
    
    
    129
    
    
    
    (34
    )
    
    
    (527
    )Federal funds sold
    
    
    (78
    )
    
    
    21
    
    
    
    (10
    )
    
    
    (67
    )Total interest income
    
    
    716
    
    
    
    402
    
    
    
    (25
    )
    
    
    1,093Interest-bearing liabilities:NOW deposits
    
    
    (30
    )
    
    
    (12
    )
    
    
    
    
    
    
    (42
    )Money market deposits
    
    
    (162
    )
    
    
    (147
    )
    
    
    45
    
    
    
    (264
    )Savings deposits
    
    
    (50
    )
    
    
    (98
    )
    
    
    15
    
    
    
    (133
    )Time deposits
    
    
    660
    
    
    
    615
    
    
    
    170
    
    
    
    1,445Short-term borrowings
    
    
    348
    
    
    
    2
    
    
    
    7
    
    
    
    357Other interest-bearing liabilities
    
    
    1
    
    
    
    1
    
    
    
    
    
    
    
    2Junior subordinated debentures
    
    
    
    
    
    
    28
    
    
    
    
    
    
    
    28Total interest expense
    
    
    767
    
    
    
    389
    
    
    
    237
    
    
    
    1,393Net interest income
    
    $
    (51
    )
    
    $
    13
    
    
    $
    (262
    )
    
    $
    (300
    )
 
 (1)
    
    The volume change in net interest income represents the change in average balance divided by
the previous periods rate.(2)
    
    The rate change in net interest income represents the change in rate multiplied by the previous
period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.
 15




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For the Nine MonthsEnded September 30,
    
    
    Dollar
    
    
    Percentage2007
    
    
    2006
    
    
    Change
    
    
    ChangeService charges on deposit accounts
    
    $
    2,766
    
    
    $
    2,731
    
    
    $
    35
    
    
    
    1.3
    %Earnings on life insurance policies
    
    
    311
    
    
    
    291
    
    
    
    20
    
    
    
    6.9
    %Merchant processing income
    
    
    221
    
    
    
    242
    
    
    
    (21
    )
    
    
    -8.7
    %Investment services income
    
    
    127
    
    
    
    78
    
    
    
    49
    
    
    
    62.8
    %Official check fees
    
    
    119
    
    
    
    126
    
    
    
    (7
    )
    
    
    -5.6
    %Customer service fees
    
    
    89
    
    
    
    83
    
    
    
    6
    
    
    
    7.2
    %Loan commission and servicing fees
    
    
    84
    
    
    
    36
    
    
    
    48
    
    
    
    133.3
    %Federal Home Loan Bank dividends
    
    
    82
    
    
    
    76
    
    
    
    6
    
    
    
    7.9
    %Safe deposit box and night depository income
    
    
    49
    
    
    
    51
    
    
    
    (2
    )
    
    
    -3.9
    %Gain (loss) on sale of loans
    
    
    46
    
    
    
    (4
    )
    
    
    50
    
    
    
    1250.0
    %Other deposit account fees
    
    
    29
    
    
    
    40
    
    
    
    (11
    )
    
    
    -27.5
    %Gain on sale of real estate and vehicles
    
    
    24
    
    
    
    6
    
    
    
    18
    
    
    
    300.0
    %Printed check fee income
    
    
    23
    
    
    
    38
    
    
    
    (15
    )
    
    
    -39.5
    %Other
    
    
    25
    
    
    
    59
    
    
    
    (34
    )
    
    
    -57.6
    %Total non-interest income
    
    $
    3,995
    
    
    $
    3,853
    
    
    $
    142
    
    
    
    3.7
    %
 Non-interest expenses.
     16




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For the Nine MonthsEnded September 30,
    
    
    Dollar
    
    
    Percentage2007
    
    
    2006
    
    
    Change
    
    
    ChangeSalaries and employee benefits
    
    $
    8,142
    
    
    $
    7,366
    
    
    $
    776
    
    
    
    10.5
    %Occupancy and equipment
    
    
    2,659
    
    
    
    2,387
    
    
    
    272
    
    
    
    11.4
    %Professional fees
    
    
    556
    
    
    
    533
    
    
    
    23
    
    
    
    4.3
    %Outside service fees
    
    
    487
    
    
    
    443
    
    
    
    44
    
    
    
    9.9
    %Business development
    
    
    400
    
    
    
    405
    
    
    
    (5
    )
    
    
    -1.2
    %Advertising and shareholder relations
    
    
    380
    
    
    
    364
    
    
    
    16
    
    
    
    4.4
    %Director compensation
    
    
    261
    
    
    
    279
    
    
    
    (18
    )
    
    
    -6.5
    %Telephone and data communication
    
    
    260
    
    
    
    286
    
    
    
    (26
    )
    
    
    -9.1
    %Deposit premium amortization
    
    
    226
    
    
    
    226
    
    
    
    
    
    
    
    
    %Stationery and supplies
    
    
    214
    
    
    
    205
    
    
    
    9
    
    
    
    4.4
    %Armored car and courier
    
    
    208
    
    
    
    202
    
    
    
    6
    
    
    
    3.0
    %Postage
    
    
    183
    
    
    
    181
    
    
    
    2
    
    
    
    1.1
    %Insurance
    
    
    131
    
    
    
    129
    
    
    
    2
    
    
    
    1.6
    %Loan and collection expenses
    
    
    122
    
    
    
    111
    
    
    
    11
    
    
    
    9.9
    %Other
    
    
    203
    
    
    
    215
    
    
    
    (12
    )
    
    
    -5.6
    %Total non-interest expense
    
    $
    14,432
    
    
    $
    13,332
    
    
    $
    1,100
    
    
    
    8.3
    %
 Provision for income taxes.
 RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2007
 OVERVIEW
 Net Income.
 Net interest income before provision for loan losses.
 17




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18




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##### Table of Contents



For the Three Months Ended September 30, 2007
    
    
    For the Three Months Ended September 30, 2006Average Balance
    
    
    Interest
    
    
    Yield/
    
    
    Average Balance
    
    
    Interest
    
    
    Yield/(Dollars in thousands)
    
    (in thousands)
    
    
    (in thousands)
    
    
    Rate
    
    
    (in thousands)
    
    
    (in thousands)
    
    
    RateInterest-earning assets:Loans (1) (2)
    
    $
    349,598
    
    
    $
    6,898
    
    
    
    7.83
    %
    
    $
    343,622
    
    
    $
    6,837
    
    
    
    7.89
    %Investment securities (1)
    
    
    59,321
    
    
    
    579
    
    
    
    3.87
    %
    
    
    81,513
    
    
    
    741
    
    
    
    3.61
    %Federal funds sold
    
    
    6,576
    
    
    
    83
    
    
    
    5.01
    %
    
    
    1,113
    
    
    
    14
    
    
    
    4.99
    %Total interest earning assets
    
    
    415,495
    
    
    
    7,560
    
    
    
    7.22
    %
    
    
    426,248
    
    
    
    7,592
    
    
    
    7.07
    %Cash and due from banks
    
    
    13,343
    
    
    
    
    
    
    
    
    
    
    
    13,119Other assets
    
    
    32,358
    
    
    
    
    
    
    
    
    
    
    
    33,114Total assets
    
    $
    461,196
    
    
    
    
    
    
    
    
    
    
    $
    472,481Interest-bearing liabilities:NOW deposits
    
    $
    76,329
    
    
    
    330
    
    
    
    1.72
    %
    
    $
    88,326
    
    
    
    463
    
    
    
    2.08
    %Money market deposits
    
    
    37,927
    
    
    
    69
    
    
    
    0.72
    %
    
    
    53,682
    
    
    
    160
    
    
    
    1.18
    %Savings deposits
    
    
    50,026
    
    
    
    50
    
    
    
    0.40
    %
    
    
    58,521
    
    
    
    107
    
    
    
    0.73
    %Time deposits
    
    
    126,353
    
    
    
    1,415
    
    
    
    4.44
    %
    
    
    90,585
    
    
    
    831
    
    
    
    3.64
    %Short-term borrowings
    
    
    2,262
    
    
    
    29
    
    
    
    5.09
    %
    
    
    5,137
    
    
    
    69
    
    
    
    5.33
    %Other interest-bearing liabilities
    
    
    304
    
    
    
    6
    
    
    
    7.83
    %
    
    
    289
    
    
    
    6
    
    
    
    8.24
    %Junior subordinated debentures
    
    
    10,310
    
    
    
    213
    
    
    
    8.20
    %
    
    
    10,310
    
    
    
    215
    
    
    
    8.27
    %Total interest-bearing liabilities
    
    
    303,511
    
    
    
    2,112
    
    
    
    2.76
    %
    
    
    306,850
    
    
    
    1,851
    
    
    
    2.39
    %Non-interest bearing deposits
    
    
    115,890
    
    
    
    
    
    
    
    
    
    
    
    127,145Other liabilities
    
    
    4,549
    
    
    
    
    
    
    
    
    
    
    
    4,350Shareholders equity
    
    
    37,246
    
    
    
    
    
    
    
    
    
    
    
    34,136Total liabilities & equity
    
    $
    461,196
    
    
    
    
    
    
    
    
    
    
    $
    472,481Cost of funding interest-earning assets (3)
    
    
    
    
    
    
    
    
    
    
    2.02
    %
    
    
    
    
    
    
    
    
    
    
    1.73
    %Net interest income and margin (4)
    
    
    
    
    
    $
    5,448
    
    
    
    5.20
    %
    
    
    
    
    
    $
    5,741
    
    
    
    5.34
    %
 
 (1)
    
    Not computed on a tax-equivalent basis.(2)
    
    Net loan costs included in loan interest income for the three-month periods ended September
30, 2007 and 2006 were $51,000 and $177,000, 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. 19




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##### Table of Contents



2007 over 2006 change in net interest incomefor the three months ended September 30:(in thousands)Volume (1)
    
    
    Rate (2)
    
    
    Mix (3)
    
    
    TotalInterest-earning assets:Loans
    
    $
    119
    
    
    $
    (57
    )
    
    $
    (1
    )
    
    $
    61Investment securities
    
    
    (202
    )
    
    
    55
    
    
    
    (15
    )
    
    
    (162
    )Federal funds sold
    
    
    69
    
    
    
    
    
    
    
    
    
    
    
    69Total interest income
    
    
    (14
    )
    
    
    (2
    )
    
    
    (16
    )
    
    
    (32
    )Interest-bearing liabilities:NOW deposits
    
    
    (63
    )
    
    
    (81
    )
    
    
    11
    
    
    
    (133
    )Money market deposits
    
    
    (47
    )
    
    
    (62
    )
    
    
    18
    
    
    
    (91
    )Savings deposits
    
    
    (15
    )
    
    
    (49
    )
    
    
    7
    
    
    
    (57
    )Time deposits
    
    
    328
    
    
    
    183
    
    
    
    73
    
    
    
    584Short-term borrowings
    
    
    (39
    )
    
    
    (3
    )
    
    
    2
    
    
    
    (40
    )Other interest-bearing liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Junior subordinated debentures
    
    
    
    
    
    
    (2
    )
    
    
    
    
    
    
    (2
    )Total interest expense
    
    
    164
    
    
    
    (14
    )
    
    
    111
    
    
    
    261Net interest income
    
    $
    (178
    )
    
    $
    12
    
    
    $
    (127
    )
    
    $
    (293
    )
 
 (1)
    
    The volume change in net interest income represents the change in average balance divided by
the previous periods rate.(2)
    
    The rate change in net interest income represents the change in rate divided by the previous
period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.
 20




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##### Table of Contents



For the Three MonthsEnded September 30,
    
    
    Dollar
    
    
    Percentage2007
    
    
    2006
    
    
    Change
    
    
    ChangeService charges on deposit accounts
    
    $
    1,009
    
    
    $
    945
    
    
    $
    64
    
    
    
    6.8
    %Earnings on life insurance policies
    
    
    105
    
    
    
    100
    
    
    
    5
    
    
    
    5.0
    %Merchant processing income
    
    
    94
    
    
    
    111
    
    
    
    (17
    )
    
    
    -15.3
    %Investment services income
    
    
    42
    
    
    
    23
    
    
    
    19
    
    
    
    82.6
    %Official check fees
    
    
    39
    
    
    
    46
    
    
    
    (7
    )
    
    
    -15.2
    %Customer service fees
    
    
    29
    
    
    
    23
    
    
    
    6
    
    
    
    26.1
    %Federal Home Loan Bank dividends
    
    
    26
    
    
    
    28
    
    
    
    (2
    )
    
    
    -7.1
    %Loan commission and servicing fees
    
    
    24
    
    
    
    (29
    )
    
    
    53
    
    
    
    182.8
    %Gain on sale of loans
    
    
    19
    
    
    
    
    
    
    
    19
    
    
    
    100.0
    %Safe deposit box and night depository income
    
    
    14
    
    
    
    15
    
    
    
    (1
    )
    
    
    -6.7
    %Other deposit account fees
    
    
    8
    
    
    
    12
    
    
    
    (4
    )
    
    
    -33.3
    %Printed check fee income
    
    
    2
    
    
    
    7
    
    
    
    (5
    )
    
    
    -71.4
    %(Loss) gain on sale of real estate and vehicles
    
    
    (4
    )
    
    
    4
    
    
    
    (8
    )
    
    
    -200.0
    %Other
    
    
    21
    
    
    
    31
    
    
    
    (10
    )
    
    
    -32.3
    %Total non-interest income
    
    $
    1,428
    
    
    $
    1,316
    
    
    $
    112
    
    
    
    8.5
    %
 Non-interest expenses.
    21




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##### Table of Contents



For the Three MonthsEnded September 30,
    
    
    Dollar
    
    
    Percentage2007
    
    
    2006
    
    
    Change
    
    
    ChangeSalaries and employee benefits
    
    $
    2,675
    
    
    $
    2,500
    
    
    $
    175
    
    
    
    7.0
    %Occupancy and equipment
    
    
    870
    
    
    
    827
    
    
    
    43
    
    
    
    5.2
    %Professional fees
    
    
    167
    
    
    
    188
    
    
    
    (21
    )
    
    
    -11.2
    %Outside service fees
    
    
    163
    
    
    
    147
    
    
    
    16
    
    
    
    10.9
    %Business development
    
    
    114
    
    
    
    123
    
    
    
    (9
    )
    
    
    -7.3
    %Advertising and shareholder relations
    
    
    102
    
    
    
    122
    
    
    
    (20
    )
    
    
    -16.4
    %Telephone and data communication
    
    
    91
    
    
    
    89
    
    
    
    2
    
    
    
    2.2
    %Director compensation
    
    
    87
    
    
    
    104
    
    
    
    (17
    )
    
    
    -16.3
    %Deposit premium amortization
    
    
    76
    
    
    
    76
    
    
    
    
    
    
    
    
    %Armored car and courier
    
    
    74
    
    
    
    70
    
    
    
    4
    
    
    
    5.7
    %Stationery and supplies
    
    
    62
    
    
    
    65
    
    
    
    (3
    )
    
    
    -4.6
    %Postage
    
    
    62
    
    
    
    58
    
    
    
    4
    
    
    
    6.9
    %Insurance
    
    
    47
    
    
    
    45
    
    
    
    2
    
    
    
    4.4
    %Loan and collection expenses
    
    
    35
    
    
    
    31
    
    
    
    4
    
    
    
    12.9
    %Other
    
    
    59
    
    
    
    58
    
    
    
    1
    
    
    
    1.7
    %Total non-interest expense
    
    $
    4,684
    
    
    $
    4,503
    
    
    $
    181
    
    
    
    4.0
    %
 Provision for income taxes.
 FINANCIAL CONDITION
 Loan portfolio.
  22




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##### Table of Contents



Nonperforming assets.
   Analysis of allowance for loan losses.
  For the Nine MonthsEnded September 30,(in thousands)2007
    
    
    2006Balance at January 1,
    
    $
    3,917
    
    
    $
    3,256Charge-offs:Commercial and agricultural
    
    
    (43
    )
    
    
    (126
    )Real estate mortgage
    
    
    
    
    
    
    Real estate construction
    
    
    (46
    )
    
    
    Consumer
    
    
    (427
    )
    
    
    (349
    )Total charge-offs
    
    
    (516
    )
    
    
    (475
    )Recoveries:Commercial and agricultural
    
    
    51
    
    
    
    45Real estate mortgage
    
    
    
    
    
    
    Real estate construction
    
    
    
    
    
    
    Consumer
    
    
    175
    
    
    
    179Total recoveries
    
    
    226
    
    
    
    224Net charge-offs
    
    
    (290
    )
    
    
    (251
    )Provision for loan losses
    
    
    500
    
    
    
    900Balance at September 30,
    
    $
    4,127
    
    
    $
    3, 905Net charge-offs during the nine-month period to average loans
    
    
    0.08
    %
    
    
    0.08
    %Allowance for loan losses to total loans
    
    
    1.17
    %
    
    
    1.12
    %
 23




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##### Table of Contents



Investment securities.
 Premises and equipment.
 Deposits.
  Short-term borrowings.
 CAPITAL RESOURCES
     24




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##### Table of Contents



September 30, 2007
    
    December 31, 2006Amount
    
    Ratio
    
    Amount
    
    RatioTier 1 Leverage RatioPlumas Bancorp and Subsidiary
    
    $
    46,840
    
    
    
    10.2
    %
    
    $
    45,206
    
    
    
    9.5
    %Minimum regulatory requirement
    
    
    18,403
    
    
    
    4.0
    %
    
    
    18,955
    
    
    
    4.0
    %Plumas Bank
    
    
    45,454
    
    
    
    9.9
    %
    
    
    44,094
    
    
    
    9.3
    %Minimum requirement for
Well-Capitalized institution
    
    
    22,977
    
    
    
    5.0
    %
    
    
    23,669
    
    
    
    5.0
    %Minimum regulatory requirement
    
    
    18,382
    
    
    
    4.0
    %
    
    
    18,935
    
    
    
    4.0
    %Tier 1 Risk-Based Capital RatioPlumas Bancorp and Subsidiary
    
    
    46,840
    
    
    
    11.7
    %
    
    
    45,206
    
    
    
    10.9
    %Minimum regulatory requirement
    
    
    16,054
    
    
    
    4.0
    %
    
    
    16,610
    
    
    
    4.0
    %Plumas Bank
    
    
    45,454
    
    
    
    11.3
    %
    
    
    44,094
    
    
    
    10.6
    %Minimum requirement for
Well-Capitalized institution
    
    
    24,049
    
    
    
    6.0
    %
    
    
    24,885
    
    
    
    6.0
    %Minimum regulatory requirement
    
    
    16,033
    
    
    
    4.0
    %
    
    
    16,590
    
    
    
    4.0
    %Total Risk-Based Capital RatioPlumas Bancorp and Subsidiary
    
    
    51,022
    
    
    
    12.7
    %
    
    
    49,123
    
    
    
    11.8
    %Minimum regulatory requirement
    
    
    32,108
    
    
    
    8.0
    %
    
    
    33,221
    
    
    
    8.0
    %Plumas Bank
    
    
    49,636
    
    
    
    12.4
    %
    
    
    48,011
    
    
    
    11.6
    %Minimum requirement for
Well-Capitalized institution
    
    
    40,081
    
    
    
    10.0
    %
    
    
    41,475
    
    
    
    10.0
    %Minimum regulatory requirement
    
    
    32,065
    
    
    
    8.0
    %
    
    
    33,180
    
    
    
    8.0
    %
 LIQUIDITY
    25




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##### Table of Contents



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
      26




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##### Table of Contents



ITEM 4. CONTROLS AND PROCEDURES
   27




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##### Table of Contents



PART II  OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
  
 ITEM 1A RISK FACTORS
  
 ITEM 2. UNREGISTERD SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
    Total Numberof SharesPurchased as Part 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, 2007 to July 31, 2007
    
    
    16,100
    
    
    $
    12.99
    
    
    
    16,100
    
    
    
    166,600August 1, 2007 to August 31, 2007
    
    
    13,347
    
    
    $
    13.05
    
    
    
    13,347
    
    
    
    153,253September 1, 2007 to September 30, 2007
    
    
    983
    
    
    $
    12.72
    
    
    
    983
    
    
    
    152,270Total
    
    
    30,430
    
    
    $
    13.01
    
    
    
    30,430
 
 (1)
    
    Includes commissions.(2)
    
    On January 22, 2007 the Company announced that its Board of Directors
authorized a common stock repurchase plan. The plan calls for the
repurchase of up to 250,000 shares, or approximately 5%, of the
Companys shares outstanding as of January 22, 2007. 28




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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 June 30, 2002, which is incorporated by this
reference herein.10.7
    
    Split Dollar Agreements of Douglas N. Biddle dated January 24, 2002,
is included as Exhibit 10.7 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.8
    
    Director Retirement Agreement of John Flournoy dated March 21, 2007,
is included as Exhibit 10.8 to 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 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.
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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.10.16
    
    Deferred Fee Agreement of Jerry V. Kehr dated December 21, 2005 is
included as Exhibit 10.16 to the Registrants 8-K filed on March 15,
2006, which is incorporated by this reference herein.10.18
    
    Amended and Restated Director Retirement Agreement of Daniel E. West
dated May 10, 2000, is included as Exhibit 10.18 to the Registrants
10-QSB for June 30, 2002, which is incorporated by this reference
herein.10.19
    
    Consulting Agreement of Daniel E. West dated May 10, 2000, is
included as Exhibit 10.19 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.20
    
    Split Dollar Agreements of Robert T. Herr dated September 15, 2004,
is included as Exhibit 10.20 to the Registrants 8-K filed on
September 17, 2004, which is incorporated by this reference herein.10.21
    
    Amended and Restated Director Retirement Agreement of Alvin G.
Blickenstaff dated April 19, 2000, is included as Exhibit 10.21 to
the Registrants 10-QSB for June 30, 2002, which is incorporated by
this reference herein.10.22
    
    Consulting Agreement of Alvin G. Blickenstaff dated May 8, 2000, is
included as Exhibit 10.22 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.24
    
    Amended and Restated Director Retirement Agreement of Gerald W.
Fletcher dated May 10, 2000, is included as Exhibit 10.24 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.10.25
    
    Consulting Agreement of Gerald W. Fletcher dated May 10, 2000, is
included as Exhibit 10.25 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.27
    
    Amended and Restated Director Retirement Agreement of Arthur C.
Grohs dated May 9, 2000, is included as Exhibit 10.27 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.10.28
    
    Consulting Agreement of Arthur C. Grohs dated May 9, 2000, is
included as Exhibit 10.28 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.33
    
    Amended and Restated Director Retirement Agreement of Terrance J.
Reeson dated April 19, 2000, is included as Exhibit 10.33 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.10.34
    
    Consulting Agreement of Terrance J. Reeson dated May 10, 2000, is
included as Exhibit 10.34 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.39
    
    Deferred Fee Agreement of Thomas Watson dated March 3, 2001, is
included as Exhibit 10.39 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.
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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. 333-96957, which is
incorporated by this reference herein.10.43
    
    Plumas Bank 401(k) Profit Sharing Plan as amended is included as
exhibit 99.1 of the Form S-8 filed February 14, 2003, File No.
333-103229, which is incorporated by this reference herein.10.44
    
    Executive Salary Continuation Agreement of Robert T. Herr dated June
4, 2002, is included as Exhibit 10.44 to the Registrants 10-Q for
March 31, 2003, which is incorporated by this reference herein.10.46
    
    1991 Stock Option Plan as amended is included as Exhibit 10.46 to
the Registrants 10-Q for September 30, 2004, which is incorporated
by this reference herein.10.47
    
    Specimen form of Incentive Stock Option Agreement under the 1991
Stock Option Plan is included as Exhibit 10.47 to the Registrants
10-Q for September 30, 2004, which is incorporated by this reference
herein.10.48
    
    Specimen form of Non-Qualified Stock Option Agreement under the 1991
Stock Option Plan is included as Exhibit 10.48 to the Registrants
10-Q for September 30, 2004, which is incorporated by this reference
herein.10.49
    
    Amended and Restated Plumas Bancorp Stock Option Plan is included as
Exhibit 10.49 to the Registrants 10-Q for September 30, 2006, which
is incorporated by this reference herein.10.59
    
    Director Retirement Agreement of Thomas Watson dated May 1, 2003, is
included as Exhibit 10.59 to the Registrants 10-Q for June 30,
2003, which is incorporated by this reference herein.10.60
    
    Consulting Agreement of Thomas Watson dated May 1, 2003, is included
as Exhibit 10.60 to the Registrants 10-Q for June 30, 2003, which
is incorporated by this reference herein.10.62
    
    Deferred Fee Agreement of Thomas Watson dated December 23, 2004, is
included as Exhibit 10.62 to the Registrants 8-K filed on January
6, 2005, which is incorporated by this reference herein.10.63
    
    Deferred Fee Agreement of Jerry V. Kehr dated December 24, 2004, is
included as Exhibit 10.63 to the Registrants 8-K filed on January
6, 2005, which is incorporated by this reference herein.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.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.
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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,
200711
    
    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 8, 2007.31.2
    
    Rule 13a-14(a) [Section 302] Certification of Principal
Executive Officer dated November 8, 2007.32.1
    
    Certification of Principal Financial Officer pursuant to 18
U.S.C. Section 1350, As Adopted Pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002 dated November 8, 2007.32.2
    
    Certification of Principal Executive Officer pursuant to 18
U.S.C. Section 1350, As Adopted Pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002 dated November 8, 2007.
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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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