##### 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 March 31, 2008
 o
    
    TRANSITION REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934
 FOR THE TRANSITION PERIOD FROM  TO
 COMMISSION FILE NUMBER: 000-49883
 PLUMAS BANCORP
  California
(State or Other Jurisdiction of Incorporation or 
Organization)
    
    75-2987096
(I.R.S. Employer Identification No.)
 35 S. Lindan Avenue, Quincy, California
(Address of Principal Executive Offices)
    
    95971
(Zip Code)
 (530) 283-7305
 þ o
  Large accelerated filer o
Accelerated filer þ
Non-accelerated filer o(Do not check if a smaller reporting company)
Smaller reporting company þ o þ




---



TABLE OF CONTENTS  PART I  FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTSPART I  FINANCIAL INFORMATIONITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKITEM 4. CONTROLS AND PROCEDURESPART II  OTHER INFORMATIONITEM 1. LEGAL PROCEEDINGSITEM 1A RISK FACTORSITEM 2. UNREGISTERD SALES OF EQUITY SECURITIES AND USE OF PROCEEDSITEM 3. DEFAULTS UPON SENIOR SECURITIESITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSITEM 5. OTHER INFORMATIONITEM 6. EXHIBITSSIGNATURESEXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1EXHIBIT 32.2    Table of Contents  
 PART I  FINANCIAL INFORMATION
 
 ITEM 1. FINANCIAL STATEMENTS
 PLUMAS BANCORP
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
 March 31,
    
    
    December 31,2008
    
    
    2007AssetsCash and due from banks
    
    $
    12,692
    
    
    $
    13,207Federal funds sold
    
    
    
    
    
    
    Cash and cash equivalents
    
    
    12,692
    
    
    
    13,207Investment securities (fair value of $51,002 at March 31, 2008 and
$55,367 at December 31, 2007)
    
    
    50,692
    
    
    
    55,292Loans, less allowance for loan losses of $4,633 at March 31, 2008
and $4,211 at December 31, 2007 (Notes 3 and 4)
    
    
    346,327
    
    
    
    349,302Premises and equipment, net
    
    
    14,639
    
    
    
    14,666Intangible assets, net
    
    
    962
    
    
    
    1,037Bank owned life insurance
    
    
    9,510
    
    
    
    9,428Real estate and vehicles acquired through foreclosure
    
    
    855
    
    
    
    537Accrued interest receivable and other assets
    
    
    9,260
    
    
    
    9,646Total assets
    
    $
    444,937
    
    
    $
    453,115Liabilities and Shareholders EquityDeposits:Non-interest bearing
    
    $
    107,976
    
    
    $
    111,240Interest bearing
    
    
    283,012
    
    
    
    280,700Total deposits
    
    
    390,988
    
    
    
    391,940Short-term borrowings
    
    
    
    
    
    
    7,500Accrued interest payable and other liabilities
    
    
    6,436
    
    
    
    6,226Junior subordinated deferrable interest debentures
    
    
    10,310
    
    
    
    10,310Total liabilities
    
    
    407,734
    
    
    
    415,976Commitments and contingencies (Note 4)
    
    
    
    
    
    
    Shareholders equity (Notes 5, 7 and 10):Serial preferred stock, no par value; 10,000,000 shares
authorized, none issued
    
    
    
    
    
    
    Common stock, no par value; 22,500,000 shares authorized; issued
and outstanding   4,829,820 shares at March 31, 2008 and
4,869,130 shares at December 31, 2007
    
    
    5,076
    
    
    
    5,042Retained earnings
    
    
    31,893
    
    
    
    32,204Accumulated other comprehensive income (loss) (Note 6)
    
    
    234
    
    
    
    (107
    )Total shareholders equity
    
    
    37,203
    
    
    
    37,139Total liabilities and shareholders equity
    
    $
    444,937
    
    
    $
    453,115
  2




---



##### Table of Contents



PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
 For the Three MonthsEnded March 31,2008
    
    
    2007Interest Income:Interest and fees on loans
    
    $
    6,224
    
    
    $
    6,905Interest on investment securities:Taxable
    
    
    411
    
    
    
    519Exempt from Federal income taxes
    
    
    127
    
    
    
    134Interest on Federal funds sold
    
    
    1
    
    
    
    2Total interest income
    
    
    6,763
    
    
    
    7,560Interest Expense:Interest on deposits
    
    
    1,546
    
    
    
    1,675Interest on short-term borrowings
    
    
    34
    
    
    
    186Interest on junior subordinated deferrable interest debentures
    
    
    191
    
    
    
    206Other
    
    
    4
    
    
    
    6Total interest expense
    
    
    1,775
    
    
    
    2,073Net interest income before provision for loan losses
    
    
    4,988
    
    
    
    5,487Provision for Loan Losses
    
    
    520
    
    
    
    250Net interest income after provision for loan losses
    
    
    4,468
    
    
    
    5,237Non-Interest Income:Service charges
    
    
    953
    
    
    
    855Earnings on Bank owned life insurance policies
    
    
    103
    
    
    
    102Other
    
    
    270
    
    
    
    314Total non-interest income
    
    
    1,326
    
    
    
    1,271Non-Interest Expenses:Salaries and employee benefits
    
    
    2,756
    
    
    
    2,828Occupancy and equipment
    
    
    959
    
    
    
    910Other
    
    
    1,221
    
    
    
    1,270Total non-interest expenses
    
    
    4,936
    
    
    
    5,008Income before provision for income taxes
    
    
    858
    
    
    
    1,500Provision for Income Taxes
    
    
    282
    
    
    
    552Net income
    
    $
    576
    
    
    $
    948Basic earnings per share (Note 5)
    
    $
    0.12
    
    
    $
    0.19Diluted earnings per share (Note 5)
    
    $
    0.12
    
    
    $
    0.19
  3




---



##### Table of Contents



PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
 For the Three MonthsEnded March 31,2008
    
    
    2007Cash Flows from Operating Activities:Net income
    
    $
    576
    
    
    $
    948Adjustments to reconcile net income to net cash provided by operating
activities:Provision for loan losses
    
    
    520
    
    
    
    250Change in deferred loan origination costs/fees, net
    
    
    76
    
    
    
    69Depreciation and amortization
    
    
    528
    
    
    
    564Stock-based compensation expense
    
    
    69
    
    
    
    53Amortization of investment security premiums
    
    
    16
    
    
    
    59Accretion of investment security discounts
    
    
    (16
    )
    
    
    (16
    )Net loss on disposal/sale of premises and equipment
    
    
    
    
    
    
    27Net gain on sale of other vehicles owned
    
    
    
    
    
    
    (20
    )Earnings on bank-owned life insurance policies
    
    
    (82
    )
    
    
    (82
    )Write-down of other real estate to market value
    
    
    25
    
    
    
    Decrease (increase) in accrued interest receivable and other assets
    
    
    58
    
    
    
    (419
    )(Decrease) increase in accrued interest payable and other liabilities
    
    
    (210
    )
    
    
    278Net cash provided by operating activities
    
    
    1,560
    
    
    
    1,711Cash Flows from Investing Activities:Proceeds from matured and called available-for-sale investment securities
    
    
    4,500
    
    
    
    7,375Proceeds from matured and called held-to-maturity investment securities
    
    
    
    
    
    
    26Purchases of held-to-maturity investment securities
    
    
    
    
    
    
    Proceeds from principal repayments from available-for-sale
government-guaranteed mortgage-backed securities
    
    
    681
    
    
    
    755Net decrease (increase) in loans
    
    
    1,896
    
    
    
    (5,921
    )Proceeds from sale of other vehicles
    
    
    140
    
    
    
    89Purchase of premises and equipment
    
    
    (338
    )
    
    
    (382
    )Net cash provided by investing activities
    
    
    6,879
    
    
    
    1,942
  4




---



##### Table of Contents



PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
 For the Three MonthsEnded March 31,2008
    
    
    2007Cash Flows from Financing Activities:Net increase (decrease) in demand, interest bearing and savings deposits
    
    $
    5,781
    
    
    $
    (11,813
    )Net (decrease) increase in time deposits
    
    
    (6,733
    )
    
    
    14,997Net decrease in short-term borrowings
    
    
    (7,500
    )
    
    
    (5,200
    )Net proceeds from exercise of stock options
    
    
    3
    
    
    
    17Repurchase and retirement of common stock
    
    
    (505
    )
    
    
    (490
    )Net cash used in financing activities
    
    
    (8,954
    )
    
    
    (2,489
    )(Decrease) increase in cash and cash equivalents
    
    
    (515
    )
    
    
    1,164Cash and Cash Equivalents at Beginning of Year
    
    
    13,207
    
    
    
    11,293Cash and Cash Equivalents at End of Period
    
    $
    12,692
    
    
    $
    12,457Supplemental Disclosure of Cash Flow Information:Cash paid during the period for:Interest expense
    
    $
    1,940
    
    
    $
    1,809Income taxes
    
    $
    
    
    
    $
    75Non-Cash Investing Activities:Real estate and vehicles acquired through foreclosure
    
    $
    483
    
    
    $
    94Net change in unrealized gain/loss on available-for-sale securities
    
    $
    341
    
    
    $
    149Non-Cash Financing Activities:Common stock retired in connection with the exercise of stock options
    
    $
    
    
    
    $
    49Cumulative effect of adopting EITF 06-04
    
    $
    420
    
    
    $
    
  5




---



##### Table of Contents



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




---



##### Table of Contents



3. LOANS
  March 31,
    
    
    December 31,2008
    
    
    2007Commercial
    
    $
    41,479
    
    
    $
    39,584Agricultural
    
    
    36,124
    
    
    
    35,762Real estate  mortgage
    
    
    130,069
    
    
    
    128,357Real estate  construction and land development
    
    
    74,004
    
    
    
    76,478Consumer
    
    
    68,796
    
    
    
    72,768350,472
    
    
    
    352,949Deferred loan costs, net
    
    
    488
    
    
    
    564Allowance for loan losses
    
    
    (4,633
    )
    
    
    (4,211
    )$
    346,327
    
    
    $
    349,302
 4. COMMITMENTS AND CONTINGENCIES
     7




---



##### Table of Contents



5. EARNINGS PER SHARE
  For the Three MonthsEnded March 31,2008
    
    2007Earnings Per Share:Basic earnings per share
    
    $
    0.12
    
    
    $
    0.19Diluted earnings per share
    
    $
    0.12
    
    
    $
    0.19Weighted Average Number of Shares Outstanding:(in thousands)Basic shares
    
    
    4,859
    
    
    
    5,012Diluted shares
    
    
    4,886
    
    
    
    5,071
  6. COMPREHENSIVE INCOME
   7. STOCK-BASED COMPENSATION
    8




---



##### Table of Contents



WeightedAverageWeighted
    
    
    RemainingAverage
    
    
    ContractualExercise
    
    
    Term
    
    
    Intrinsic ValueShares
    
    
    Price
    
    
    (in years)
    
    
    (in thousands)Options outstanding at December 31, 2007
    
    
    395,772
    
    
    $
    13.37Options granted
    
    
    90,300
    
    
    
    12.40Options exercised
    
    
    (500
    )
    
    
    5.43Options cancelled
    
    
    
    
    
    
    Options outstanding at March 31, 2008
    
    
    485,572
    
    
    $
    13.20
    
    
    
    6.3
    
    
    $
    504Options exercisable at March 31, 2008
    
    
    245,511
    
    
    $
    11.91
    
    
    
    5.3
    
    
    $
    449Expected to vest after March 31, 2008
    
    
    240,061
    
    
    $
    14.52
    
    
    
    7.3
    
    
    $
    55
   8. Income Taxes
    9




---



##### Table of Contents



9. FAIR VALUE MEASUREMENT
 Fair Value Measurements
       Fair Value Measurements at March 31, 2008 UsingQuoted Prices inActive Markets for
    
    Significant Other
    
    SignificantIdentical Assets
    
    Observable Inputs
    
    Unobservable Inputs(in 000s)
    
    March 31, 2008
    
    (Level 1)
    
    (Level 2)
    
    (Level 3)Assets:Available-for-sale securities
    
    $
    37,205
    
    
    $
    22,797
    
    
    $
    14,408
    
    
    $
    
   Fair Value Measurements at March 31, 2008 UsingQuoted Prices inActive Markets for
    
    Significant Other
    
    SignificantIdentical Assets
    
    Observable Inputs
    
    Unobservable Inputs(in 000s)
    
    March 31, 2008
    
    (Level 1)
    
    (Level 2)
    
    (Level 3)Assets:Impaired loans
    
    $
    2,979
    
    
    $
    
    
    
    $
    2,979
    
    
    $
    
 10




---



##### Table of Contents



10. STOCK REPURCHASE
  11. SUBSEQUENT EVENTS
  11




---



##### Table of Contents



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
   12




---



##### Table of Contents



OVERVIEW
    RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2008
 Net interest income before provision for loan losses.
   13




---



##### Table of Contents



14




---



##### Table of Contents



For the Three Months Ended March 31, 2008
    
    
    For the Three Months Ended March 31, 2007Average
    
    
    
    
    
    
    
    
    
    
    AverageBalance
    
    
    Interest
    
    
    Yield/
    
    
    Balance
    
    
    Interest
    
    
    Yield/(in thousands)
    
    
    (in thousands)
    
    
    Rate
    
    
    (in thousands)
    
    
    (in thousands)
    
    
    RateInterest-earning assets:Loans (1) (2)
    
    $
    351,221
    
    
    $
    6,224
    
    
    
    7.13
    %
    
    $
    353,640
    
    
    $
    6,905
    
    
    
    7.92
    %Investment securities (1)
    
    
    53,088
    
    
    
    538
    
    
    
    4.08
    %
    
    
    70,700
    
    
    
    653
    
    
    
    3.75
    %Federal funds sold
    
    
    179
    
    
    
    1
    
    
    
    2.25
    %
    
    
    175
    
    
    
    2
    
    
    
    4.63
    %Total interest-earning assets
    
    
    404,488
    
    
    
    6,763
    
    
    
    6.72
    %
    
    
    424,515
    
    
    
    7,560
    
    
    
    7.22
    %Cash and due from banks
    
    
    11,715
    
    
    
    
    
    
    
    
    
    
    
    12,597Other assets
    
    
    31,668
    
    
    
    
    
    
    
    
    
    
    
    32,616Total assets
    
    $
    447,871
    
    
    
    
    
    
    
    
    
    
    $
    469,728Interest-bearing liabilities:NOW deposits
    
    $
    73,277
    
    
    
    188
    
    
    
    1.03
    %
    
    $
    79,600
    
    
    
    369
    
    
    
    1.88
    %Money market deposits
    
    
    36,531
    
    
    
    68
    
    
    
    0.75
    %
    
    
    44,566
    
    
    
    106
    
    
    
    0.96
    %Savings deposits
    
    
    46,679
    
    
    
    43
    
    
    
    0.37
    %
    
    
    53,487
    
    
    
    77
    
    
    
    0.58
    %Time deposits
    
    
    125,303
    
    
    
    1,247
    
    
    
    4.00
    %
    
    
    109,566
    
    
    
    1,123
    
    
    
    4.16
    %Total deposits
    
    
    281,790
    
    
    
    1,546
    
    
    
    2.21
    %
    
    
    287,219
    
    
    
    1,675
    
    
    
    2.37
    %Short-term borrowings
    
    
    4,057
    
    
    
    34
    
    
    
    3.37
    %
    
    
    14,053
    
    
    
    186
    
    
    
    5.37
    %Other interest-bearing liabilities
    
    
    308
    
    
    
    4
    
    
    
    5.22
    %
    
    
    300
    
    
    
    6
    
    
    
    8.11
    %Junior subordinated debentures
    
    
    10,310
    
    
    
    191
    
    
    
    7.45
    %
    
    
    10,310
    
    
    
    206
    
    
    
    8.10
    %Total interest-bearing liabilities
    
    
    296,465
    
    
    
    1,775
    
    
    
    2.41
    %
    
    
    311,882
    
    
    
    2,073
    
    
    
    2.70
    %Non-interest bearing deposits
    
    
    108,192
    
    
    
    
    
    
    
    
    
    
    
    116,284Other liabilities
    
    
    5,743
    
    
    
    
    
    
    
    
    
    
    
    4,982Shareholders equity
    
    
    37,471
    
    
    
    
    
    
    
    
    
    
    
    36,580Total liabilities & equity
    
    $
    447,871
    
    
    
    
    
    
    
    
    
    
    $
    469,728Cost of funding interest-earning assets (3)
    
    
    
    
    
    
    
    
    
    
    1.76
    %
    
    
    
    
    
    
    
    
    
    
    1.98
    %Net interest income and margin (4)
    
    
    
    
    
    $
    4,988
    
    
    
    4.96
    %
    
    
    
    
    
    $
    5,487
    
    
    
    5.24
    %
 
 (1)
    
    Not computed on a tax-equivalent basis.(2)
    
    Net loan costs included in loan interest income for the three-month periods ended March 31,
2008 and 2007 were $77,000 and $147,000, 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. 15




---



##### Table of Contents



2008 over 2007 change in net interest incomefor the three months ended March 31(in thousands)Volume (1)
    
    
    Rate (2)
    
    
    Mix (3)
    
    
    TotalInterest-earning assets:Loans
    
    $
    (48
    )
    
    $
    (696
    )
    
    $
    63
    
    
    $
    (681
    )Investment securities
    
    
    (164
    )
    
    
    58
    
    
    
    (9
    )
    
    
    (115
    )Federal funds sold
    
    
    
    
    
    
    (1
    )
    
    
    
    
    
    
    (1
    )Total interest income
    
    
    (212
    )
    
    
    (639
    )
    
    
    54
    
    
    
    (797
    )Interest-bearing liabilities:NOW deposits
    
    
    (30
    )
    
    
    (168
    )
    
    
    17
    
    
    
    (181
    )Money market deposits
    
    
    (19
    )
    
    
    (24
    )
    
    
    5
    
    
    
    (38
    )Savings deposits
    
    
    (10
    )
    
    
    (28
    )
    
    
    4
    
    
    
    (34
    )Time deposits
    
    
    163
    
    
    
    (42
    )
    
    
    3
    
    
    
    124Short-term borrowings
    
    
    (133
    )
    
    
    (70
    )
    
    
    51
    
    
    
    (152
    )Other interest-bearing liabilities
    
    
    
    
    
    
    (2
    )
    
    
    
    
    
    
    (2
    )Junior subordinated debentures
    
    
    
    
    
    
    (17
    )
    
    
    2
    
    
    
    (15
    )Total interest expense
    
    
    (29
    )
    
    
    (351
    )
    
    
    82
    
    
    
    (298
    )Net interest income
    
    $
    (183
    )
    
    $
    (288
    )
    
    $
    (28
    )
    
    $
    (499
    )
 
 (1)
    
    The volume change in net interest income represents the change in average balance multiplied by
the previous years rate.(2)
    
    The rate change in net interest income represents the change in rate multiplied by the previous
years average balance.(3)
    
    The mix change in net interest income represents the change in average balance multiplied by
the change in rate. Provision for loan losses.
 Non-interest income.
 16




---



##### Table of Contents



For the ThreeMonthsEnded March 31
    
    
    Dollar
    
    
    Percentage2008
    
    
    2007
    
    
    Change
    
    
    ChangeService charges on deposit accounts
    
    $
    953
    
    
    $
    855
    
    
    $
    98
    
    
    
    11.5
    %Earnings on life insurance policies
    
    
    103
    
    
    
    102
    
    
    
    1
    
    
    
    1.0
    %Merchant processing income
    
    
    63
    
    
    
    60
    
    
    
    3
    
    
    
    5.0
    %Official check fees
    
    
    38
    
    
    
    41
    
    
    
    (3
    )
    
    
    -7.3
    %Investment services income
    
    
    35
    
    
    
    52
    
    
    
    (17
    )
    
    
    -32.7
    %Customer service fees
    
    
    29
    
    
    
    30
    
    
    
    (1
    )
    
    
    -3.3
    %Federal Home Loan Bank dividends
    
    
    28
    
    
    
    31
    
    
    
    (3
    )
    
    
    -9.7
    %Mortgage loan commission and servicing fees
    
    
    21
    
    
    
    25
    
    
    
    (4
    )
    
    
    -16.0
    %Gain on sale of loans
    
    
    18
    
    
    
    27
    
    
    
    (9
    )
    
    
    -33.3
    %Safe deposit box and night depository income
    
    
    17
    
    
    
    18
    
    
    
    (1
    )
    
    
    -5.6
    %Printed check fee income
    
    
    11
    
    
    
    15
    
    
    
    (4
    )
    
    
    -26.7
    %Other deposit account fees
    
    
    9
    
    
    
    11
    
    
    
    (2
    )
    
    
    -18.2
    %Gain on sale of vehicles
    
    
    0
    
    
    
    20
    
    
    
    (20
    )
    
    
    -100.0
    %Other
    
    
    1
    
    
    
    (16
    )
    
    
    17
    
    
    
    106.3
    %Total non-interest income
    
    $
    1,326
    
    
    $
    1,271
    
    
    $
    55
    
    
    
    4.3
    %
 Non-interest expenses.
   17




---



##### Table of Contents



For the Three MonthsEnded March 31Dollar
    
    
    Percentage2008
    
    
    2007
    
    
    Change
    
    
    ChangeSalaries and employee benefits
    
    $
    2,756
    
    
    $
    2,828
    
    
    $
    (72
    )
    
    
    -2.5
    %Occupancy and equipment
    
    
    959
    
    
    
    910
    
    
    
    49
    
    
    
    5.4
    %Outside service fees
    
    
    170
    
    
    
    156
    
    
    
    14
    
    
    
    9.0
    %Professional fees
    
    
    163
    
    
    
    207
    
    
    
    (44
    )
    
    
    -21.3
    %Business development
    
    
    141
    
    
    
    125
    
    
    
    16
    
    
    
    12.8
    %Advertising and shareholder relations
    
    
    104
    
    
    
    139
    
    
    
    (35
    )
    
    
    -25.2
    %Telephone and data communication
    
    
    102
    
    
    
    103
    
    
    
    (1
    )
    
    
    -1.0
    %Director compensation
    
    
    92
    
    
    
    93
    
    
    
    (1
    )
    
    
    -1.1
    %Deposit premium amortization
    
    
    75
    
    
    
    75
    
    
    
    
    
    
    
    
    %Armored car and courier
    
    
    68
    
    
    
    66
    
    
    
    2
    
    
    
    3.0
    %Loan and collection expenses
    
    
    66
    
    
    
    44
    
    
    
    22
    
    
    
    50.0
    %Stationery and supplies
    
    
    58
    
    
    
    77
    
    
    
    (19
    )
    
    
    -24.7
    %Postage
    
    
    58
    
    
    
    60
    
    
    
    (2
    )
    
    
    -3.3
    %Insurance
    
    
    57
    
    
    
    37
    
    
    
    20
    
    
    
    54.1
    %Other
    
    
    67
    
    
    
    88
    
    
    
    (21
    )
    
    
    -23.9
    %Total non-interest expense
    
    $
    4,936
    
    
    $
    5,008
    
    
    $
    (72
    )
    
    
    -1.4
    %
 Provision for income taxes.
 FINANCIAL CONDITION
 Fair value. Fair Value Measurements,
 Notes to Condensed Consolidated Financial Statements
 Loan portfolio composition.
 18




---



##### Table of Contents



Nonperforming assets.
  Analysis of allowance for loan losses.
 19




---



##### Table of Contents



For the Three MonthsEnded March 31,2008
    
    
    2007Balance at January 1,
    
    $
    4,211
    
    
    $
    3,917Charge-offs:Commercial and agricultural
    
    
    (48
    )
    
    
    Real estate mortgage
    
    
    
    
    
    
    Real estate construction
    
    
    
    
    
    
    Consumer
    
    
    (103
    )
    
    
    (134
    )Total charge-offs
    
    
    (151
    )
    
    
    (134
    )Recoveries:Commercial and agricultural
    
    
    4
    
    
    
    46Real estate mortgage
    
    
    
    
    
    
    Real estate construction
    
    
    
    
    
    
    Consumer
    
    
    49
    
    
    
    71Total recoveries
    
    
    53
    
    
    
    117Net charge-offs
    
    
    (98
    )
    
    
    (17
    )Provision for loan losses
    
    
    520
    
    
    
    250Balance at March 31,
    
    $
    4,633
    
    
    $
    4,150Net charge-offs during the three-month period to average loans
    
    
    0.03
    %
    
    
    0.00
    %Allowance for loan losses to total loans
    
    
    1.32
    %
    
    
    1.15
    %
 Investment securities.
 Premises and equipment.
 Deposits.
  20




---



##### Table of Contents



Short-term borrowings.
 CAPITAL RESOURCES
      21




---



##### Table of Contents



March 31, 2008
    
    
    December 31,2007Amount
    
    
    Ratio
    
    
    Amount
    
    
    RatioTier 1 Leverage RatioPlumas Bancorp and Subsidiary
    
    $
    46,008
    
    
    
    10.3
    %
    
    $
    46,209
    
    
    
    10.0
    %Minimum regulatory requirement
    
    
    17,871
    
    
    
    4.0
    %
    
    
    18,439
    
    
    
    4.0
    %Plumas Bank
    
    
    43,918
    
    
    
    9.8
    %
    
    
    45,415
    
    
    
    9.9
    %Minimum requirement for
Well-Capitalized institution
    
    
    22,311
    
    
    
    5.0
    %
    
    
    23,024
    
    
    
    5.0
    %Minimum regulatory requirement
    
    
    17,849
    
    
    
    4.0
    %
    
    
    18,419
    
    
    
    4.0
    %Tier 1 Risk-Based Capital RatioPlumas Bancorp and Subsidiary
    
    
    46,008
    
    
    
    11.8
    %
    
    
    46,209
    
    
    
    11.6
    %Minimum regulatory requirement
    
    
    15,590
    
    
    
    4.0
    %
    
    
    15,881
    
    
    
    4.0
    %Plumas Bank
    
    
    43,918
    
    
    
    11.3
    %
    
    
    45,415
    
    
    
    11.5
    %Minimum requirement for
Well-Capitalized institution
    
    
    23,351
    
    
    
    6.0
    %
    
    
    23,790
    
    
    
    6.0
    %Minimum regulatory requirement
    
    
    15,567
    
    
    
    4.0
    %
    
    
    15,860
    
    
    
    4.0
    %Total Risk-Based Capital RatioPlumas Bancorp and Subsidiary
    
    
    50,696
    
    
    
    13.0
    %
    
    
    50,475
    
    
    
    12.7
    %Minimum regulatory requirement
    
    
    31,180
    
    
    
    8.0
    %
    
    
    31,763
    
    
    
    8.0
    %Plumas Bank
    
    
    48,606
    
    
    
    12.5
    %
    
    
    49,681
    
    
    
    12.5
    %Minimum requirement for
Well-Capitalized institution
    
    
    38,919
    
    
    
    10.0
    %
    
    
    39,651
    
    
    
    10.0
    %Minimum regulatory requirement
    
    
    31,135
    
    
    
    8.0
    %
    
    
    31,720
    
    
    
    8.0
    %
 LIQUIDITY
     22




---



##### Table of Contents



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
  
 ITEM 4. CONTROLS AND PROCEDURES
   
 PART II  OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
  
 ITEM 1A RISK FACTORS
  23




---



##### Table of Contents



ITEM 2. UNREGISTERD SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
    Total Number ofSharesPurchased asPart of
    
    MaximumTotal
    
    
    
    
    
    Publicly
    
    Number of SharesNumber of
    
    Average
    
    Announced
    
    That May Yet BeShares
    
    Price Paid
    
    Plans or
    
    Purchased Under thePeriod
    
    Purchased (1)
    
    per Share (2)
    
    Programs (3)
    
    Plans or Programs (3)January 1, 2008 to January 31, 2008
    
    
    1,878
    
    
    $
    11.99
    
    
    
    1,878
    
    
    
    242,122February 1, 2008 to February 29,
2008
    
    
    17,040
    
    
    $
    12.59
    
    
    
    17,040
    
    
    
    225,082March 1, 2008 to March 31, 2008
    
    
    20,892
    
    
    $
    12.83
    
    
    
    20,892
    
    
    
    204,190Total
    
    
    39,810
    
    
    $
    12.69
    
    
    
    39,810
 
 (1)
    
    The difference between total number of shares purchased and the total
number of shares purchased as part of publicly announced programs, if
any, is due to repurchases of common stock from certain employees in
connection with their exercise of stock options.(2)
    
    Includes commissions.(3)
    
    On December 20, 2007 the Company announced that for 2008 its board of
directors authorized a common stock repurchase plan for up to 244,000
shares, or 5% of the Companys shares outstanding on December 20,
2007. 
 ITEM 3. DEFAULTS UPON SENIOR SECURITIES
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  
 ITEM 5. OTHER INFORMATION
  24




---



##### Table of Contents



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.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.
 25




---



##### Table of Contents



10.19
    
    Consulting Agreement of Daniel E. West dated May 10, 2000, is
included as Exhibit 10.19 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.20
    
    Split Dollar Agreements of Robert T. Herr dated September 15, 2004,
is included as Exhibit 10.20 to the Registrants 8-K filed on
September 17, 2004, which is incorporated by this reference herein.10.21
    
    Amended and Restated Director Retirement Agreement of Alvin G.
Blickenstaff dated April 19, 2000, is included as Exhibit 10.21 to
the Registrants 10-QSB for June 30, 2002, which is incorporated by
this reference herein.10.22
    
    Consulting Agreement of Alvin G. Blickenstaff dated May 8, 2000, is
included as Exhibit 10.22 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.24
    
    Amended and Restated Director Retirement Agreement of Gerald W.
Fletcher dated May 10, 2000, is included as Exhibit 10.24 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.10.25
    
    Consulting Agreement of Gerald W. Fletcher dated May 10, 2000, is
included as Exhibit 10.25 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.27
    
    Amended and Restated Director Retirement Agreement of Arthur C.
Grohs dated May 9, 2000, is included as Exhibit 10.27 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.10.28
    
    Consulting Agreement of Arthur C. Grohs dated May 9, 2000, is
included as Exhibit 10.28 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.33
    
    Amended and Restated Director Retirement Agreement of Terrance J.
Reeson dated April 19, 2000, is included as Exhibit 10.33 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.10.34
    
    Consulting Agreement of Terrance J. Reeson dated May 10, 2000, is
included as Exhibit 10.34 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.39
    
    Deferred Fee Agreement of Thomas Watson dated March 3, 2001, is
included as Exhibit 10.39 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.40
    
    2001 Stock Option Plan as amended is included as exhibit 99.1 of the Form S-8 filed July 23, 2002, File No.
333-96957, which is incorporated by this reference herein.10.41
    
    Form of Indemnification Agreement, is included as Exhibit 10.41 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.10.43
    
    Plumas Bank 401(k) Profit Sharing Plan as amended is included as exhibit 99.1 of the Form S-8 filed
February 14, 2003, File No. 333-103229, which is incorporated by this reference herein.10.44
    
    Executive Salary Continuation Agreement of Robert T. Herr dated June 4, 2002, is included as Exhibit 10.44
to the Registrants 10-Q for March 31, 2003, which is incorporated by this reference herein.10.46
    
    1991 Stock Option Plan as amended is included as Exhibit 10.46 to the Registrants 10-Q for September 30,
2004, which is incorporated by this reference herein.10.47
    
    Specimen form of Incentive Stock Option Agreement under the 1991 Stock Option Plan is included as Exhibit
10.47 to the Registrants 10-Q for September 30, 2004, which is incorporated by this reference herein.
 26




---



##### Table of Contents



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.10.68
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement for Thomas Watson
adopted on September 19, 2007, is included as Exhibit 10.68 to the Registrants 8-K filed on September 25,
2007, which is incorporated by this reference herein.10.69
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement for Daniel E. West
adopted on September 19, 2007, is included as Exhibit 10.69 to the Registrants 8-K filed on September 25,
2007, which is incorporated by this reference herein.10.70
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement for Gerald W.
Fletcher adopted on October 9, 2007, is included as Exhibit 10.70 to the Registrants 10-Q for September
30, 2007, which is incorporated by this reference herein.11
    
    Computation of per share earnings appears in the attached 10-Q under Plumas Bancorp and
Subsidiary Notes to Condensed Consolidated Financial Statements as Footnote 5  Earnings
Per Share.31.1
    
    Rule 13a-14(a) [Section 302] Certification of Principal Financial Officer dated May 9, 2008.31.2
    
    Rule 13a-14(a) [Section 302] Certification of Principal Executive Officer dated May 9, 2008.32.1
    
    Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, As Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated May 9, 2008.32.2
    
    Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, As Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated May 9, 2008.
 27




---



##### Table of Contents



SIGNATURES
  PLUMAS BANCORP
  /s/ Andrew J. RybackAndrew J. RybackExecutive Vice President Chief Financial Officer/s/ Douglas N. BiddleDouglas N. BiddlePresident and Chief Executive Officer 28