##### 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, 2009
 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
 Yes o
No o
  Large Accelerated Filer o   
    Accelerated Filer o
    Non-Accelerated Filer o
    Smaller Reporting Company þ
 o þ




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TABLE OF CONTENTS  PART I  FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTSCONDENSED CONSOLIDATED BALANCE SHEETCONDENSED CONSOLIDATED STATEMENT OF INCOMECONDENSED CONSOLIDATED STATEMENT OF CASH FLOWSNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTSPART I  FINANCIAL INFORMATIONITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKITEM 4. CONTROLS AND PROCEDURESPART II  OTHER INFORMATIONITEM 1. LEGAL PROCEEDINGSITEM 1A RISK FACTORSITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDSITEM 3. DEFAULTS UPON SENIOR SECURITIESITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSITEM 5. OTHER INFORMATIONITEM 6. EXHIBITSSIGNATURESEXHIBIT INDEXExhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2    Table of Contents  
 PART I  FINANCIAL INFORMATION
 
 ITEM 1. FINANCIAL STATEMENTS
 PLUMAS BANCORP
 
 CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)
 September 30,
    
    
    December 31,2009
    
    
    2008AssetsCash and due from banks
    
    $
    35,158
    
    
    $
    18,791Federal funds sold
    
    
    
    
    
    
    Cash and cash equivalents
    
    
    35,158
    
    
    
    18,791Investment securities (fair value of $76,404 at September 30, 2009
and $38,606 at December 31, 2008 Note 3)
    
    
    75,777
    
    
    
    38,374Loans, less allowance for loan losses of $8,350 at September 30,
2009 and $7,224 at December 31, 2008 (Notes 4 and 5)
    
    
    335,838
    
    
    
    359,072Premises and equipment, net
    
    
    14,838
    
    
    
    15,764Intangible assets, net
    
    
    691
    
    
    
    821Bank owned life insurance
    
    
    10,023
    
    
    
    9,766Real estate and vehicles acquired through foreclosure
    
    
    15,584
    
    
    
    4,277Accrued interest receivable and other assets
    
    
    14,659
    
    
    
    10,310Total assets
    
    $
    502,568
    
    
    $
    457,175Liabilities and Shareholders EquityDeposits:Non-interest bearing
    
    $
    110,502
    
    
    $
    112,783Interest bearing
    
    
    313,436
    
    
    
    258,710Total deposits
    
    
    423,938
    
    
    
    371,493Short-term borrowings
    
    
    20,000
    
    
    
    34,000Accrued interest payable and other liabilities
    
    
    6,648
    
    
    
    5,935Junior subordinated deferrable interest debentures
    
    
    10,310
    
    
    
    10,310Total liabilities
    
    
    460,896
    
    
    
    421,738Commitments and contingencies (Note 5)
    
    
    
    
    
    
    Shareholders equity:Serial preferred stock, no par value; 10,000,000 shares
authorized; 11,949 issued and outstanding at September 30, 2009
    
    
    11,574
    
    
    
    Common stock, no par value; 22,500,000 shares authorized; issued
and outstanding  4,776,339 shares at September 30, 2009 and
4,775,339 shares at December 31, 2008
    
    
    5,907
    
    
    
    5,302Retained earnings
    
    
    23,713
    
    
    
    29,818Accumulated other comprehensive income (Note 7)
    
    
    478
    
    
    
    317Total shareholders equity
    
    
    41,672
    
    
    
    35,437Total liabilities and shareholders equity
    
    $
    502,568
    
    
    $
    457,175
   2




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##### Table of Contents



PLUMAS BANCORP
 
 CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
 For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Interest Income:Interest and fees on loans
    
    $
    5,090
    
    
    $
    5,978
    
    
    $
    15,556
    
    
    $
    18,169Interest on investment securities:Taxable
    
    
    440
    
    
    
    324
    
    
    
    1,185
    
    
    
    1,092Exempt from Federal income taxes
    
    
    123
    
    
    
    128
    
    
    
    360
    
    
    
    383Interest on Federal funds sold
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    3Total interest income
    
    
    5,653
    
    
    
    6,431
    
    
    
    17,101
    
    
    
    19,647Interest Expense:Interest on deposits
    
    
    810
    
    
    
    975
    
    
    
    2,350
    
    
    
    3,646Interest on short-term borrowings
    
    
    21
    
    
    
    79
    
    
    
    56
    
    
    
    174Interest on junior subordinated deferrable
interest debentures
    
    
    84
    
    
    
    144
    
    
    
    294
    
    
    
    473Other
    
    
    2
    
    
    
    4
    
    
    
    6
    
    
    
    13Total interest expense
    
    
    917
    
    
    
    1,202
    
    
    
    2,706
    
    
    
    4,306Net interest income before
provision for loan losses
    
    
    4,736
    
    
    
    5,229
    
    
    
    14,395
    
    
    
    15,341Provision for Loan Losses
    
    
    2,550
    
    
    
    700
    
    
    
    11,300
    
    
    
    1,690Net interest income after provision
for loan losses
    
    
    2,186
    
    
    
    4,529
    
    
    
    3,095
    
    
    
    13,651Non-Interest Income:Service charges
    
    
    970
    
    
    
    1,015
    
    
    
    2,823
    
    
    
    2,937Earnings on Bank owned life insurance policies
    
    
    108
    
    
    
    107
    
    
    
    323
    
    
    
    314Impairment loss on investment security
    
    
    
    
    
    
    (415
    )
    
    
    
    
    
    
    (415
    )Other
    
    
    457
    
    
    
    309
    
    
    
    895
    
    
    
    946Total non-interest income
    
    
    1,535
    
    
    
    1,016
    
    
    
    4,041
    
    
    
    3,782Non-Interest Expenses:Salaries and employee benefits
    
    
    2,827
    
    
    
    2,799
    
    
    
    8,417
    
    
    
    8,265Occupancy and equipment
    
    
    903
    
    
    
    939
    
    
    
    2,836
    
    
    
    2,873Other
    
    
    2,013
    
    
    
    1,247
    
    
    
    5,788
    
    
    
    3,811Total non-interest expenses
    
    
    5,743
    
    
    
    4,985
    
    
    
    17,041
    
    
    
    14,949Income (loss) before income taxes
    
    
    (2,022
    )
    
    
    560
    
    
    
    (9,905
    )
    
    
    2,484Provision (Benefit) for Income Taxes
    
    
    (882
    )
    
    
    170
    
    
    
    (4,258
    )
    
    
    822Net income (loss)
    
    $
    (1,140
    )
    
    $
    390
    
    
    $
    (5,647
    )
    
    $
    1,662Preferred Stock Dividends and Discount Accretion
    
    
    (171
    )
    
    
    
    
    
    
    (458
    )
    
    
    Net income (loss) available to
common shareholders
    
    $
    (1,311
    )
    
    $
    390
    
    
    $
    (6,105
    )
    
    $
    1,662Basic earnings (loss) per share (Note 6)
    
    $
    (0.27
    )
    
    $
    0.08
    
    
    $
    (1.28
    )
    
    $
    0.34Diluted earnings (loss) per share (Note 6)
    
    $
    (0.27
    )
    
    $
    0.08
    
    
    $
    (1.28
    )
    
    $
    0.34Common dividends per share
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    0.16
   3




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PLUMAS BANCORP
 
 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
 For the Nine MonthsEnded September 30,2009
    
    
    2008Cash Flows from Operating Activities:Net income (loss)
    
    $
    (5,647
    )
    
    $
    1,662Adjustments to reconcile net income to net cash provided by operating
activities:Provision for loan losses
    
    
    11,300
    
    
    
    1,690Change in deferred loan origination costs/fees, net
    
    
    (65
    )
    
    
    235Depreciation and amortization
    
    
    1,468
    
    
    
    1,475Stock-based compensation expense
    
    
    193
    
    
    
    218Amortization of investment security premiums
    
    
    174
    
    
    
    46Accretion of investment security discounts
    
    
    (42
    )
    
    
    (43
    )Impairment loss on investment security
    
    
    
    
    
    
    415Net loss on disposal/sale of premises and equipment
    
    
    
    
    
    
    13Net loss on sale of vehicles owned
    
    
    42
    
    
    
    17Earnings on Bank owned life insurance policies
    
    
    (257
    )
    
    
    (252
    )Provision for losses on other real estate
    
    
    887
    
    
    
    39Net loss on sale of real estate
    
    
    157
    
    
    
    Increase in accrued interest receivable and other assets
    
    
    (4,673
    )
    
    
    (97
    )Increase (decrease) in accrued interest payable and other liabilities
    
    
    637
    
    
    
    (751
    )Net cash provided by operating activities
    
    
    4,174
    
    
    
    4,667Cash Flows from Investing Activities:Proceeds from matured and called available-for-sale investment securities
    
    
    8,000
    
    
    
    13,475Proceeds from matured and called held-to-maturity investment securities
    
    
    1,729
    
    
    
    100Purchases of available-for-sale investment securities
    
    
    (51,132
    )
    
    
    (2,990
    )Purchases of held-to-maturity investment securities
    
    
    (1,520
    )
    
    
    Proceeds from principal repayments from available-for-sale
government-guaranteed mortgage-backed securities
    
    
    5,662
    
    
    
    2,190Net increase in loans
    
    
    (2,208
    )
    
    
    (8,500
    )Proceeds from sale of other vehicles
    
    
    219
    
    
    
    298Proceeds from sale of other real estate
    
    
    1,595
    
    
    
    Purchase of premises and equipment
    
    
    (201
    )
    
    
    (2,425
    )Net cash (used in ) provided by investing activities
    
    
    (37,856
    )
    
    
    2,148
   4




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##### Table of Contents



PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
 For the Nine MonthsEnded September 30,2009
    
    
    2008Cash Flows from Financing Activities:Net increase in demand, interest bearing and savings deposits
    
    $
    41,944
    
    
    $
    17,026Net increase (decrease) in time deposits
    
    
    10,501
    
    
    
    (25,751
    )Net (decrease) increase in short-term borrowings
    
    
    (14,000
    )
    
    
    19,500Net proceeds from exercise of stock options
    
    
    5
    
    
    
    21Payment of cash dividends on common stock
    
    
    
    
    
    
    (770
    )Payment of cash dividends on preferred stock
    
    
    (325
    )
    
    
    Issuance of preferred stock, net of discount
    
    
    11,517
    
    
    
    Issuance of common stock warrant
    
    
    407
    
    
    
    Repurchase and retirement of common stock
    
    
    
    
    
    
    (945
    )Net cash provided by financing activities
    
    
    50,049
    
    
    
    9,081Increase in cash and cash equivalents
    
    
    16,367
    
    
    
    15,896Cash and Cash Equivalents at Beginning of Year
    
    
    18,791
    
    
    
    13,207Cash and Cash Equivalents at End of Period
    
    $
    35,158
    
    
    $
    29,103Supplemental Disclosure of Cash Flow Information:Cash paid during the period for:Interest expense
    
    $
    2,693
    
    
    $
    4,639Income taxes
    
    $
    65
    
    
    $
    1,090Non-Cash Investing Activities:Real estate and vehicles acquired through foreclosure
    
    $
    14,207
    
    
    $
    2,229Net change in unrealized gain/loss on available-for-sale securities
    
    $
    161
    
    
    $
    174
  5




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




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3. INVESTMENT SECURITIES
  Available-for-Sale
 September 30, 2009Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueDebt securities:U.S. Treasury securities
    
    $
    1,067,000
    
    
    
    
    
    
    $
    (17,000
    )
    
    $
    1,050,000U.S. Government agencies
    
    
    40,839,000
    
    
    $
    378,000
    
    
    
    (36,000
    )
    
    
    41,181,000U.S. Government agencies
collateralized by mortgage
obligations
    
    
    20,611,000
    
    
    
    504,000
    
    
    
    
    
    
    
    21,115,000Corporate debt securities
    
    
    85,000
    
    
    
    
    
    
    
    (15,000
    )
    
    
    70,000$
    62,602,000
    
    
    $
    882,000
    
    
    $
    (68,000
    )
    
    $
    63,416,000
  December 31, 2008Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueDebt securities:U.S. Treasury Securities
    
    $
    1,498,000
    
    
    $
    10,000
    
    
    $
    
    
    
    $
    1,508,000U.S. Government agencies
    
    
    10,001,000
    
    
    $
    391,000
    
    
    
    
    
    
    
    10,392,000U.S. Government agencies
collateralized by mortgage
obligations
    
    
    12,183,000
    
    
    
    189,000
    
    
    
    (15,000
    )
    
    
    12,357,000Corporate debt securities
    
    
    1,585,000
    
    
    
    1,000
    
    
    
    (36,000
    )
    
    
    1,550,000$
    25,267,000
    
    
    $
    591,000
    
    
    $
    (51,000
    )
    
    $
    25,807,000
    7




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Held-to-Maturity
 September 30, 2009Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueDebt securities:Obligations of states and
political subdivisions
    
    $
    12,361,000
    
    
    $
    627,000
    
    
    $
    
    
    
    $
    12,988,000
 December 31, 2008Gross
    
    
    Gross
    
    
    EstimatedAmortized
    
    
    Unrealized
    
    
    Unrealized
    
    
    FairCost
    
    
    Gains
    
    
    Losses
    
    
    ValueDebt securities:Obligations of states and
political subdivisions
    
    $
    12,567,000
    
    
    $
    278,000
    
    
    $
    (46,000
    )
    
    $
    12,799,000
  Investment securities with unrealized losses at September 30, 2009 are summarized and classified
according to the duration of the loss period as follows:
 Less than 12 Months
    
    
    12 Months or More
    
    
    TotalFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    UnrealizedValue
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    LossesDebt securities:U.S. Treasury securities
    
    $
    1,050,000
    
    
    $
    17,000
    
    
    
    
    
    
    
    
    
    
    $
    1,050,000
    
    
    $
    17,000U.S. Government
agencies
    
    
    14,059,000
    
    
    
    36,000
    
    
    
    
    
    
    
    
    
    
    
    14,059,000
    
    
    
    36,000Corporate debt securities
    
    
    
    
    
    
    
    
    
    $
    70,000
    
    
    $
    15,000
    
    
    
    70,000
    
    
    
    15,000$
    15,109,000
    
    
    $
    53,000
    
    
    $
    70,000
    
    
    $
    15,000
    
    
    $
    15,179,000
    
    
    $
    68,000
 Investment securities with unrealized losses at December 31, 2008 are summarized and classified
according to the duration of the loss period as follows:
 Less than 12 Months
    
    
    12 Months or More
    
    
    TotalFair
    
    
    Unrealized
    
    
    Fair
    
    
    Unrealized
    
    
    Fair
    
    
    UnrealizedValue
    
    
    Losses
    
    
    Value
    
    
    Losses
    
    
    Value
    
    
    LossesDebt securities:Obligations of states
and political subdivisions
    
    $
    1,366,000
    
    
    $
    39,000
    
    
    $
    809,000
    
    
    $
    7,000
    
    
    $
    2,175,000
    
    
    $
    46,000U.S. Government
agencies collateralized by mortgage
obligations
    
    
    
    
    
    
    
    
    
    
    3,419,000
    
    
    
    15,000
    
    
    
    3,419,000
    
    
    
    15,000Corporate debt securities
    
    
    
    
    
    
    
    
    
    
    1,050,000
    
    
    
    36,000
    
    
    
    1,050,000
    
    
    
    36,000$
    1,366,000
    
    
    $
    39,000
    
    
    $
    5,278,000
    
    
    $
    58,000
    
    
    $
    6,644,000
    
    
    $
    97,000
  8




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Available-for-Sale
    
    
    Held-to-MaturityEstimated
    
    
    
    
    
    
    EstimatedAmortized
    
    
    Fair
    
    
    Amortized
    
    
    FairCost
    
    
    Value
    
    
    Cost
    
    
    ValueWithin one year
    
    $
    85,000
    
    
    $
    70,000
    
    
    $
    41,000
    
    
    $
    41,000After one year through
five years
    
    
    41,906,000
    
    
    
    42,231,000
    
    
    
    3,133,000
    
    
    
    3,273,000After five years through
ten years
    
    
    
    
    
    
    
    
    
    
    9,187,000
    
    
    
    9,674,00041,991,000
    
    
    
    42,301,000
    
    
    
    12,361,000
    
    
    
    12,988,000Investment securities
not due at a single
maturity date:Government-guaranteed mortgage-backed securities
    
    
    20,611,000
    
    
    
    21,115,000$
    62,602,000
    
    
    $
    63,416,000
    
    
    $
    12,361,000
    
    
    $
    12,988,000
   9




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4. LOANS
  September 30,
    
    
    December 31,2009
    
    
    2008Commercial
    
    $
    37,578
    
    
    $
    42,528Agricultural
    
    
    40,760
    
    
    
    36,020Real estate  mortgage
    
    
    162,476
    
    
    
    151,943Real estate  construction and land development
    
    
    46,856
    
    
    
    73,820Consumer
    
    
    56,174
    
    
    
    61,706343,844
    
    
    
    366,017Deferred loan costs, net
    
    
    344
    
    
    
    279Allowance for loan losses
    
    
    (8,350
    )
    
    
    (7,224
    )$
    335,838
    
    
    $
    359,072
  September 30,
    
    
    December 31,2009
    
    
    2008Balance, beginning of year
    
    $
    7,224
    
    
    $
    4,211Provision charged to operations
    
    
    11,300
    
    
    
    4,600Losses charged to allowance
    
    
    (10,380
    )
    
    
    (1,783
    )Recoveries
    
    
    206
    
    
    
    196Balance, end of period
    
    $
    8,350
    
    
    $
    7,224
  5. COMMITMENTS AND CONTINGENCIES
      10




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6. EARNINGS PER SHARE
  For the Three Months
    
    
    For the Nine monthsEnded September 30,
    
    
    Ended September 30,(In thousands, except per share data)
    
    2009
    
    
    2008
    
    
    2009
    
    
    2008Net Income (loss):Net income (loss)
    
    $
    (1,140
    )
    
    $
    390
    
    
    $
    (5,647
    )
    
    $
    1,662Dividends accrued and discount accreted on
preferred shares
    
    
    (171
    )
    
    
    
    
    
    
    (458
    )
    
    
    Net income (loss) available to common shareholders
    
    $
    (1,311
    )
    
    $
    390
    
    
    $
    (6,105
    )
    
    $
    1,662Earnings Per Share:Basic earnings per share
    
    $
    (0.27
    )
    
    $
    0.08
    
    
    $
    (1.28
    )
    
    $
    0.34Diluted earnings per share
    
    $
    (0.27
    )
    
    $
    0.08
    
    
    $
    (1.28
    )
    
    $
    0.34Weighted Average Number of Shares Outstanding:Basic shares
    
    
    4,776
    
    
    
    4,809
    
    
    
    4,776
    
    
    
    4,830Diluted shares
    
    
    4,776
    
    
    
    4,820
    
    
    
    4,776
    
    
    
    4,852
  7. COMPREHENSIVE INCOME
    11




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8. STOCK-BASED COMPENSATION
     WeightedAverageWeighted
    
    
    RemainingAverage
    
    
    ContractualExercise
    
    
    Term
    
    
    Intrinsic ValueShares
    
    
    Price
    
    
    (in years)
    
    
    (in thousands)Options outstanding at December 31, 2008
    
    
    466,956
    
    
    $
    13.38Options granted
    
    
    
    
    
    
    Options exercised
    
    
    (1,000
    )
    
    
    5.43Options cancelled
    
    
    (61,990
    )
    
    
    12.38Options outstanding at September 30, 2009
    
    
    403,966
    
    
    $
    13.56
    
    
    
    5.0
    
    
    $
    Options exercisable at September 30, 2009
    
    
    262,031
    
    
    $
    13.07
    
    
    
    4.5
    
    
    $
    Expected to vest after September 30, 2009
    
    
    123,741
    
    
    $
    14.45
    
    
    
    5.9
    
    
    $
    
   12




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##### Table of Contents



9. INCOME TAXES
     10. FAIR VALUE MEASUREMENT
   September 30, 2009
    
    
    December 31, 2008Carrying
    
    
    Fair
    
    
    Carrying
    
    
    FairAmount
    
    
    Value
    
    
    Amount
    
    
    ValueFinancial assets:Cash and cash equivalents
    
    $
    35,158,000
    
    
    $
    35,158,000
    
    
    $
    18,791,000
    
    
    $
    18,791,000Investment securities
    
    
    75,777,000
    
    
    
    76,404,000
    
    
    
    38,374,000
    
    
    
    38,606,000Loans
    
    
    335,838,000
    
    
    
    338,337,000
    
    
    
    359,072,000
    
    
    
    363,811,000Bank owned life insurance
    
    
    10,023,000
    
    
    
    10,023,000
    
    
    
    9,766,000
    
    
    
    9,766,000Accrued interest receivable
    
    
    2,123,000
    
    
    
    2,123,000
    
    
    
    2,063,000
    
    
    
    2,063,000Financial liabilities:Deposits
    
    $
    423,938,000
    
    
    $
    424,141,000
    
    
    $
    371,493,000
    
    
    $
    371,761,000Short-term borrowings
    
    
    20,000,000
    
    
    
    20,000,000
    
    
    
    34,000,000
    
    
    
    34,000,000Junior subordinated deferrable
interest debentures
    
    
    10,310,000
    
    
    
    2,663,000
    
    
    
    10,310,000
    
    
    
    2,420,000Accrued interest payable
    
    
    500,000
    
    
    
    500,000
    
    
    
    487,000
    
    
    
    487,000
  13




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14




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##### Table of Contents



Fair Value Measurements at September 30, 2009 UsingQuoted Prices inActive Markets for
    
    
    Significant Other
    
    
    SignificantIdentical Assets
    
    
    Observable Inputs
    
    
    Unobservable InputsTotal Fair Value
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Available-for-sale
securities
    
    $
    63,416,000
    
    
    $
    42,301,000
    
    
    $
    21,115,000
    
    
    $
    
   Fair Value Measurements at September 30, 2009 UsingQuoted Prices inActive Markets for
    
    
    Significant Other
    
    
    SignificantIdentical Assets
    
    
    Observable Inputs
    
    
    Unobservable InputsTotal Fair Value
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Impaired
loans
    
    $
    9,128,000
    
    
    $
    
    
    
    $
    9,128,000
    
    
    $
    Other real
estate owned
    
    
    15,498,000
    
    
    
    
    
    
    
    15,498,000
    
    
    
    $
    24,626,000
    
    
    $
    
    
    
    $
    24,626,000
    
    
    $
    
  15




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##### Table of Contents



11. RECENT ACCOUTING DEVELOPMENTS
 FASB Accounting Standards Codification (ASC or Codification): Topic 105
 Generally Accepted Accounting Principles  FASB Accounting Standards Codification and
the Hierarchy of Generally Accepted Accounting Principles
 Measuring Liabilities at Fair Value: Fair Value Measurements and Disclosures (Topic 820)  Measuring Liabilities at Fair Value
 Accounting for Transfers of Financial Assets: Accounting for Transfers of Financial Assets, an amendment of FASB Statement No. 140
 FASB Amends Disclosures about Fair Value of Financial Instruments: Interim Disclosures about
Fair Value of Financial Instruments.
  16




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##### Table of Contents



FASB Clarifies Other-Than-Temporary Impairment: Recognition and Presentation of
Other-Than-Temporary-Impairment.
 FASB Clarifies Application of Fair Value Accounting: Determining Fair Value When the Volume and Level of Activity for the
Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly.
 
 PART I  FINANCIAL INFORMATION
 
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
    17




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##### Table of Contents



INTRODUCTION
   COMMON STOCK CASH DIVIDEND
  CRITICAL ACCOUNTING POLICIES
  OVERVIEW
     18




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##### Table of Contents



RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2009
 Net interest income before provision for loan losses.
    
  19




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##### Table of Contents



For the Nine Months Ended September 30, 2009
    
    
    For the Nine Months Ended September 30, 2008Average Balance
    
    
    Interest
    
    
    Yield/
    
    
    Average Balance
    
    
    Interest
    
    
    Yield/(in thousands)
    
    
    (in thousands)
    
    
    Rate
    
    
    (in thousands)
    
    
    (in thousands)
    
    
    RateInterest-earning assets:Loans (1) (2)
    
    $
    360,412
    
    
    $
    15,556
    
    
    
    5.77
    %
    
    $
    353,639
    
    
    $
    18,169
    
    
    
    6.86
    %Investment securities (1)
    
    
    57,376
    
    
    
    1,545
    
    
    
    3.60
    %
    
    
    48,911
    
    
    
    1,475
    
    
    
    4.03
    %Federal funds sold
    
    
    16
    
    
    
    
    
    
    
    0.32
    %
    
    
    153
    
    
    
    3
    
    
    
    2.62
    %Total interest-earning assets
    
    
    417,804
    
    
    
    17,101
    
    
    
    5.47
    %
    
    
    402,703
    
    
    
    19,647
    
    
    
    6.52
    %Cash and due from banks
    
    
    26,467
    
    
    
    
    
    
    
    
    
    
    
    11,845Other assets
    
    
    34,437
    
    
    
    
    
    
    
    
    
    
    
    32,745Total assets
    
    $
    478,708
    
    
    
    
    
    
    
    
    
    
    $
    447,293Interest-bearing liabilities:NOW deposits
    
    $
    93,584
    
    
    
    481
    
    
    
    0.69
    %
    
    $
    73,957
    
    
    
    449
    
    
    
    0.81
    %Money market deposits
    
    
    41,030
    
    
    
    259
    
    
    
    0.84
    %
    
    
    36,300
    
    
    
    216
    
    
    
    0.79
    %Savings deposits
    
    
    50,282
    
    
    
    69
    
    
    
    0.18
    %
    
    
    48,090
    
    
    
    125
    
    
    
    0.35
    %Time deposits
    
    
    101,364
    
    
    
    1,541
    
    
    
    2.03
    %
    
    
    114,372
    
    
    
    2,856
    
    
    
    3.34
    %Total deposits
    
    
    286,260
    
    
    
    2,350
    
    
    
    1.10
    %
    
    
    272,719
    
    
    
    3,646
    
    
    
    1.79
    %Short-term borrowings
    
    
    25,006
    
    
    
    56
    
    
    
    0.30
    %
    
    
    10,299
    
    
    
    174
    
    
    
    2.26
    %Other interest-bearing liabilities
    
    
    215
    
    
    
    6
    
    
    
    3.72
    %
    
    
    309
    
    
    
    13
    
    
    
    5.62
    %Junior subordinated debentures
    
    
    10,310
    
    
    
    294
    
    
    
    3.81
    %
    
    
    10,310
    
    
    
    473
    
    
    
    6.13
    %Total interest-bearing liabilities
    
    
    321,791
    
    
    
    2,706
    
    
    
    1.12
    %
    
    
    293,637
    
    
    
    4,306
    
    
    
    1.96
    %Non-interest bearing deposits
    
    
    106,714
    
    
    
    
    
    
    
    
    
    
    
    110,677Other liabilities
    
    
    5,723
    
    
    
    
    
    
    
    
    
    
    
    5,602Shareholders equity
    
    
    44,480
    
    
    
    
    
    
    
    
    
    
    
    37,377Total liabilities & equity
    
    $
    478,708
    
    
    
    
    
    
    
    
    
    
    $
    447,293Cost of funding interest-earning assets (3)
    
    
    
    
    
    
    
    
    
    
    0.86
    %
    
    
    
    
    
    
    
    
    
    
    1.43
    %Net interest income and margin (4)
    
    
    
    
    
    $
    14,395
    
    
    
    4.61
    %
    
    
    
    
    
    $
    15,341
    
    
    
    5.09
    %
 
 (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, 2009 and 2008 were
$133 thousand and $208 thousand, respectively.(3)
    
    Total annualized interest expense divided by the average balance of total earning assets.(4)
    
    Annualized net interest income divided by the average balance of total earning assets.  20




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##### Table of Contents



2009 over 2008 change in net interest incomefor the nine months ended September 30(in thousands)Volume (1)
    
    
    Rate (2)
    
    
    Mix (3)
    
    
    TotalInterest-earning assets:Loans
    
    $
    348
    
    
    $
    (2,889
    )
    
    $
    (72
    )
    
    $
    (2,613
    )Investment securities
    
    
    255
    
    
    
    (157
    )
    
    
    (28
    )
    
    
    70Federal funds sold
    
    
    (3
    )
    
    
    (3
    )
    
    
    3
    
    
    
    (3
    )Total interest income
    
    
    600
    
    
    
    (3,049
    )
    
    
    (97
    )
    
    
    (2,546
    )Interest-bearing liabilities:NOW deposits
    
    
    119
    
    
    
    (69
    )
    
    
    (18
    )
    
    
    32Money market deposits
    
    
    28
    
    
    
    13
    
    
    
    2
    
    
    
    43Savings deposits
    
    
    6
    
    
    
    (59
    )
    
    
    (3
    )
    
    
    (56
    )Time deposits
    
    
    (324
    )
    
    
    (1,115
    )
    
    
    124
    
    
    
    (1,315
    )Short-term borrowings
    
    
    248
    
    
    
    (151
    )
    
    
    (215
    )
    
    
    (118
    )Other interest-bearing liabilities
    
    
    (4
    )
    
    
    (4
    )
    
    
    1
    
    
    
    (7
    )Junior subordinated debentures
    
    
    
    
    
    
    (179
    )
    
    
    
    
    
    
    (179
    )Total interest expense
    
    
    73
    
    
    
    (1,564
    )
    
    
    (109
    )
    
    
    (1,600
    )Net interest income
    
    $
    527
    
    
    $
    (1,485
    )
    
    $
    12
    
    
    $
    (946
    )
 
 (1)
    
    The volume change in net interest income represents the change in average balance divided by
the previous years rate.(2)
    
    The rate change in net interest income represents the change in rate multiplied by the previous
years average balance.(3)
    
    The mix change in net interest income represents the change in average balance multiplied by
the change in rate. Provision for loan losses.
   21




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##### Table of Contents



Non-interest income.
    For the Nine MonthsEnded September 30,
    
    
    Dollar
    
    
    Percentage2009
    
    
    2008
    
    
    Change
    
    
    ChangeService charges on deposit accounts
    
    $
    2,823
    
    
    $
    2,937
    
    
    $
    (114
    )
    
    
    -3.9
    %Earnings on life insurance policies
    
    
    323
    
    
    
    314
    
    
    
    9
    
    
    
    2.9
    %Gain on sale of loans
    
    
    215
    
    
    
    111
    
    
    
    104
    
    
    
    93.7
    %Merchant processing income
    
    
    211
    
    
    
    222
    
    
    
    (11
    )
    
    
    -5.0
    %Customer service fees
    
    
    92
    
    
    
    87
    
    
    
    5
    
    
    
    5.7
    %Investment services income
    
    
    61
    
    
    
    99
    
    
    
    (38
    )
    
    
    -38.4
    %Safe deposit box and night depository income
    
    
    49
    
    
    
    50
    
    
    
    (1
    )
    
    
    -2.0
    %Official check fees
    
    
    14
    
    
    
    83
    
    
    
    (69
    )
    
    
    -83.1
    %Federal Home Loan Bank dividends
    
    
    4
    
    
    
    87
    
    
    
    (83
    )
    
    
    -95.4
    %Impairment loss on investment security
    
    
    
    
    
    
    (415
    )
    
    
    415
    
    
    
    100.0
    %Other
    
    
    249
    
    
    
    207
    
    
    
    42
    
    
    
    20.3
    %Total non-interest income
    
    $
    4,041
    
    
    $
    3,782
    
    
    $
    259
    
    
    
    6.8
    %
 Non-interest expenses.
  22




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##### Table of Contents



For the Nine MonthsEnded September 30,
    
    
    Dollar
    
    
    Percentage2009
    
    
    2008
    
    
    Change
    
    
    ChangeSalaries and employee benefits
    
    $
    8,417
    
    
    $
    8,265
    
    
    $
    152
    
    
    
    1.8
    %Occupancy and equipment
    
    
    2,836
    
    
    
    2,872
    
    
    
    (36
    )
    
    
    -1.3
    %FDIC insurance and assessments
    
    
    905
    
    
    
    183
    
    
    
    722
    
    
    
    394.5
    %Provision for OREO losses
    
    
    887
    
    
    
    39
    
    
    
    848
    
    
    
    2,174.4
    %Professional fees
    
    
    598
    
    
    
    458
    
    
    
    140
    
    
    
    30.6
    %Outside service fees
    
    
    588
    
    
    
    530
    
    
    
    58
    
    
    
    10.9
    %Loan collection and OREO expenses
    
    
    453
    
    
    
    265
    
    
    
    188
    
    
    
    70.9
    %Telephone and data communication
    
    
    301
    
    
    
    303
    
    
    
    (2
    )
    
    
    -0.7
    %Advertising and shareholder relations
    
    
    249
    
    
    
    334
    
    
    
    (85
    )
    
    
    -25.4
    %Business development
    
    
    241
    
    
    
    339
    
    
    
    (98
    )
    
    
    -28.9
    %Director compensation
    
    
    221
    
    
    
    264
    
    
    
    (43
    )
    
    
    -16.3
    %Armored car and courier
    
    
    210
    
    
    
    218
    
    
    
    (8
    )
    
    
    -3.7
    %Loss on sale of real estate and vehicles
    
    
    200
    
    
    
    17
    
    
    
    183
    
    
    
    1,076.5
    %Postage
    
    
    154
    
    
    
    180
    
    
    
    (26
    )
    
    
    -14.4
    %Stationery and supplies
    
    
    139
    
    
    
    172
    
    
    
    (33
    )
    
    
    -19.2
    %Deposit premium amortization
    
    
    130
    
    
    
    172
    
    
    
    (42
    )
    
    
    -24.4
    %Insurance
    
    
    85
    
    
    
    176
    
    
    
    (91
    )
    
    
    -51.7
    %Other
    
    
    427
    
    
    
    162
    
    
    
    265
    
    
    
    163.6
    %Total non-interest expense
    
    $
    17,041
    
    
    $
    14,949
    
    
    $
    2,092
    
    
    
    14.0
    %
  23




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##### Table of Contents



Provision for income taxes.
 RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2009
 Net Income.
  Net interest income before provision for loan losses.
   
  24




---



##### Table of Contents



For the Three Months Ended September 30, 2009
    
    
    For the Three Months Ended September 30, 2008Average Balance
    
    
    Interest
    
    
    Yield/
    
    
    Average Balance
    
    
    Interest
    
    
    Yield/(in thousands)
    
    
    (in thousands)
    
    
    Rate
    
    
    (in thousands)
    
    
    (in thousands)
    
    
    RateInterest-earning assets:Loans (1) (2)
    
    $
    356,210
    
    
    $
    5,090
    
    
    
    5.67
    %
    
    $
    357,970
    
    
    $
    5,978
    
    
    
    6.64
    %Investment securities (1)
    
    
    68,329
    
    
    
    563
    
    
    
    3.27
    %
    
    
    45,216
    
    
    
    452
    
    
    
    3.98
    %Federal funds sold
    
    
    
    
    
    
    
    
    
    
    
    %
    
    
    132
    
    
    
    1
    
    
    
    3.01
    %Total interest-earning assets
    
    
    424,539
    
    
    
    5,653
    
    
    
    5.28
    %
    
    
    403,318
    
    
    
    6,431
    
    
    
    6.34
    %Cash and due from banks
    
    
    35,511
    
    
    
    
    
    
    
    
    
    
    
    11,643Other assets
    
    
    37,091
    
    
    
    
    
    
    
    
    
    
    
    34,529Total assets
    
    $
    497,141
    
    
    
    
    
    
    
    
    
    
    $
    449,490Interest-bearing liabilities:NOW deposits
    
    $
    110,617
    
    
    
    212
    
    
    
    0.76
    %
    
    $
    72,846
    
    
    
    126
    
    
    
    0.69
    %Money market deposits
    
    
    40,660
    
    
    
    82
    
    
    
    0.80
    %
    
    
    36,821
    
    
    
    80
    
    
    
    0.86
    %Savings deposits
    
    
    50,638
    
    
    
    22
    
    
    
    0.17
    %
    
    
    49,446
    
    
    
    41
    
    
    
    0.33
    %Time deposits
    
    
    104,822
    
    
    
    494
    
    
    
    1.87
    %
    
    
    105,391
    
    
    
    728
    
    
    
    2.75
    %Total deposits
    
    
    306,737
    
    
    
    810
    
    
    
    1.05
    %
    
    
    264,504
    
    
    
    975
    
    
    
    1.47
    %Short-term borrowings
    
    
    19,886
    
    
    
    21
    
    
    
    0.42
    %
    
    
    15,573
    
    
    
    79
    
    
    
    2.02
    %Other interest-bearing liabilities
    
    
    209
    
    
    
    2
    
    
    
    3.79
    %
    
    
    310
    
    
    
    4
    
    
    
    5.13
    %Junior subordinated debentures
    
    
    10,310
    
    
    
    84
    
    
    
    3.23
    %
    
    
    10,310
    
    
    
    144
    
    
    
    5.56
    %Total interest-bearing liabilities
    
    
    337,142
    
    
    
    917
    
    
    
    1.08
    %
    
    
    290,697
    
    
    
    1,202
    
    
    
    1.64
    %Non-interest bearing deposits
    
    
    110,459
    
    
    
    
    
    
    
    
    
    
    
    115,691Other liabilities
    
    
    6,308
    
    
    
    
    
    
    
    
    
    
    
    5,662Shareholders equity
    
    
    43,232
    
    
    
    
    
    
    
    
    
    
    
    37,440Total liabilities & equity
    
    $
    497,141
    
    
    
    
    
    
    
    
    
    
    $
    449,490Cost of funding interest-earning assets (3)
    
    
    
    
    
    
    
    
    
    
    0.85
    %
    
    
    
    
    
    
    
    
    
    
    1.18
    %Net interest income and margin (4)
    
    
    
    
    
    $
    4,736
    
    
    
    4.43
    %
    
    
    
    
    
    $
    5,229
    
    
    
    5.16
    %
 
 (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, 2009 and 2008 were $47 thousand and $58 thousand, respectively.(3)
    
    Total interest expense divided by the average balance of total earning assets.(4)
    
    Net interest income divided by the average balance of total earning assets.  25




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##### Table of Contents



2009 over 2008 change in net interest incomefor the three months ended September 30(in thousands)Volume (1)
    
    
    Rate (2)
    
    
    Mix (3)
    
    
    TotalInterest-earning assets:Loans
    
    $
    (29
    )
    
    $
    (879
    )
    
    $
    20
    
    
    $
    (888
    )Investment securities
    
    
    232
    
    
    
    (81
    )
    
    
    (40
    )
    
    
    111Federal funds sold
    
    
    (1
    )
    
    
    
    
    
    
    
    
    
    
    (1
    )Total interest income
    
    
    202
    
    
    
    (960
    )
    
    
    (20
    )
    
    
    (778
    )Interest-bearing liabilities:NOW deposits
    
    
    66
    
    
    
    13
    
    
    
    7
    
    
    
    86Money market deposits
    
    
    8
    
    
    
    (6
    )
    
    
    
    
    
    
    2Savings deposits
    
    
    1
    
    
    
    (20
    )
    
    
    
    
    
    
    (19
    )Time deposits
    
    
    (4
    )
    
    
    (233
    )
    
    
    3
    
    
    
    (234
    )Short-term borrowings
    
    
    22
    
    
    
    (63
    )
    
    
    (17
    )
    
    
    (58
    )Other interest-bearing liabilities
    
    
    (1
    )
    
    
    (1
    )
    
    
    
    
    
    
    (2
    )Junior subordinated debentures
    
    
    
    
    
    
    (60
    )
    
    
    
    
    
    
    (60
    )Total interest expense
    
    
    92
    
    
    
    (370
    )
    
    
    (7
    )
    
    
    (285
    )Net interest income
    
    $
    110
    
    
    $
    (590
    )
    
    $
    (13
    )
    
    $
    (493
    )
 
 (1)
    
    The volume change in net interest income represents the change in average balance divided by
the previous years rate.(2)
    
    The rate change in net interest income represents the change in rate divided by the previous
years average balance.(3)
    
    The mix change in net interest income represents the change in average balance multiplied by
the change in rate. Provision for loan losses.
 Non-interest income.
  26




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##### Table of Contents



For the Three MonthsEnded September 30,
    
    
    Dollar
    
    
    Percentage2009
    
    
    2008
    
    
    Change
    
    
    ChangeService charges on deposit accounts
    
    $
    970
    
    
    $
    1,015
    
    
    $
    (45
    )
    
    
    -4.4
    %Gain on sale of loans
    
    
    205
    
    
    
    32
    
    
    
    173
    
    
    
    540.6
    %Earnings on life insurance policies
    
    
    108
    
    
    
    107
    
    
    
    1
    
    
    
    0.9
    %Merchant processing income
    
    
    99
    
    
    
    97
    
    
    
    2
    
    
    
    2.1
    %Customer service fees
    
    
    33
    
    
    
    30
    
    
    
    3
    
    
    
    10.0
    %Safe deposit box and night depository income
    
    
    15
    
    
    
    16
    
    
    
    (1
    )
    
    
    -6.3
    %Investment services income
    
    
    14
    
    
    
    21
    
    
    
    (7
    )
    
    
    -33.3
    %Official check fees
    
    
    4
    
    
    
    20
    
    
    
    (16
    )
    
    
    -80.0
    %Federal Home Loan Bank dividends
    
    
    4
    
    
    
    30
    
    
    
    (26
    )
    
    
    -86.7
    %Impairment loss on investment security
    
    
    
    
    
    
    (415
    )
    
    
    415
    
    
    
    100
    %Other
    
    
    83
    
    
    
    63
    
    
    
    20
    
    
    
    31.7
    %Total non-interest income
    
    $
    1,535
    
    
    $
    1,016
    
    
    $
    519
    
    
    
    51.1
    %
 Non-interest expenses.
    27




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##### Table of Contents



For the Three MonthsEnded September 30,
    
    
    Dollar
    
    
    Percentage2009
    
    
    2008
    
    
    Change
    
    
    ChangeSalaries and employee benefits
    
    $
    2,827
    
    
    $
    2,799
    
    
    $
    28
    
    
    
    1.0
    %Occupancy and equipment
    
    
    903
    
    
    
    938
    
    
    
    (35
    )
    
    
    -3.7
    %Provision for OREO losses
    
    
    531
    
    
    
    0
    
    
    
    531
    
    
    
    100.0
    %FDIC insurance and assessments
    
    
    236
    
    
    
    68
    
    
    
    168
    
    
    
    247.1
    %Outside service fees
    
    
    192
    
    
    
    182
    
    
    
    10
    
    
    
    5.5
    %Professional fees
    
    
    174
    
    
    
    151
    
    
    
    23
    
    
    
    15.2
    %Loan collection and OREO expenses
    
    
    166
    
    
    
    100
    
    
    
    66
    
    
    
    66.0
    %Telephone and data communication
    
    
    100
    
    
    
    105
    
    
    
    (5
    )
    
    
    -4.8
    %Advertising and shareholder relations
    
    
    76
    
    
    
    107
    
    
    
    (31
    )
    
    
    -29.0
    %Director compensation
    
    
    73
    
    
    
    89
    
    
    
    (16
    )
    
    
    -18.0
    %Armored car and courier
    
    
    73
    
    
    
    76
    
    
    
    (3
    )
    
    
    -3.9
    %Business development
    
    
    71
    
    
    
    102
    
    
    
    (31
    )
    
    
    -30.4
    %Loss on sale of real estate and vehicles
    
    
    59
    
    
    
    6
    
    
    
    53
    
    
    
    883.3
    %Insurance
    
    
    56
    
    
    
    60
    
    
    
    (4
    )
    
    
    -6.7
    %Postage
    
    
    47
    
    
    
    60
    
    
    
    (13
    )
    
    
    -21.7
    %Deposit premium amortization
    
    
    43
    
    
    
    43
    
    
    
    0
    
    
    
    
    %Stationery and supplies
    
    
    38
    
    
    
    56
    
    
    
    (18
    )
    
    
    -32.1
    %Other
    
    
    78
    
    
    
    43
    
    
    
    35
    
    
    
    81.4
    %Total non-interest expense
    
    $
    5,743
    
    
    $
    4,985
    
    
    $
    758
    
    
    
    15.2
    %
 Provision for income taxes.
 FINANCIAL CONDITION
 Fair value.
 Notes to Condensed Consolidated Financial Statements
 Loan portfolio composition.
  28




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##### Table of Contents



Nonperforming loans.
      29




---



##### Table of Contents



Nonperforming assets.
 Analysis of allowance for loan losses.
   For the Nine MonthsEnded September 30,(in thousands)2009
    
    
    2008Balance at January 1,
    
    $
    7,224
    
    
    $
    4,211Charge-offs:Commercial and agricultural
    
    
    (472
    )
    
    
    (182
    )Real estate mortgage
    
    
    (938
    )
    
    
    (68
    )Real estate construction
    
    
    (8,519
    )
    
    
    (423
    )Consumer
    
    
    (451
    )
    
    
    (461
    )Total charge-offs
    
    
    (10,380
    )
    
    
    (1,134
    )Recoveries:Commercial and agricultural
    
    
    14
    
    
    
    9Real estate mortgage
    
    
    8
    
    
    
    Real estate construction
    
    
    
    
    
    
    Consumer
    
    
    184
    
    
    
    120Total recoveries
    
    
    206
    
    
    
    129Net charge-offs
    
    
    (10,174
    )
    
    
    (1,005
    )Provision for loan losses
    
    
    11,300
    
    
    
    1,690Balance at September 30,
    
    $
    8,350
    
    
    $
    4,896Net charge-offs during the nine-month period to
average loans (annualized)
    
    
    3.77
    %
    
    
    0.38
    %Allowance for loan losses to total loans
    
    
    2.43
    %
    
    
    1.37
    %
  30




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##### Table of Contents



Investment securities.
 Premises and equipment. ,
 Deposits.
  Short-term borrowing arrangements.
   31




---



##### Table of Contents



CAPITAL RESOURCES
         32




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##### Table of Contents



September 30, 2009
    
    
    December 31, 2008Amount
    
    
    Ratio
    
    
    Amount
    
    
    RatioTier 1 Leverage RatioPlumas Bancorp and Subsidiary
    
    $
    46,392
    
    
    
    9.4
    %
    
    $
    43,885
    
    
    
    9.8
    %Minimum regulatory requirement
    
    
    19,668
    
    
    
    4.0
    %
    
    
    17,907
    
    
    
    4.0
    %Plumas Bank
    
    
    44,183
    
    
    
    9.0
    %
    
    
    43,372
    
    
    
    9.7
    %Minimum requirement for
Well-Capitalized institution
under the prompt corrective
action plan
    
    
    24,641
    
    
    
    5.0
    %
    
    
    22,365
    
    
    
    5.0
    %Minimum regulatory requirement
    
    
    19,712
    
    
    
    4.0
    %
    
    
    17,892
    
    
    
    4.0
    %Tier 1 Risk-Based Capital RatioPlumas Bancorp and Subsidiary
    
    
    46,392
    
    
    
    11.7
    %
    
    
    43,885
    
    
    
    11.0
    %Minimum regulatory requirement
    
    
    15,889
    
    
    
    4.0
    %
    
    
    16,021
    
    
    
    4.0
    %Plumas Bank
    
    
    44,183
    
    
    
    11.1
    %
    
    
    43,372
    
    
    
    10.8
    %Minimum requirement for
Well-Capitalized institution
under the prompt corrective
action plan
    
    
    23,806
    
    
    
    6.0
    %
    
    
    23,996
    
    
    
    6.0
    %Minimum regulatory requirement
    
    
    15,870
    
    
    
    4.0
    %
    
    
    15,997
    
    
    
    4.0
    %Total Risk-Based Capital RatioPlumas Bancorp and Subsidiary
    
    
    51,399
    
    
    
    12.9
    %
    
    
    48,919
    
    
    
    12.2
    %Minimum regulatory requirement
    
    
    31,777
    
    
    
    8.0
    %
    
    
    32,042
    
    
    
    8.0
    %Plumas Bank
    
    
    49,185
    
    
    
    12.4
    %
    
    
    48,399
    
    
    
    12.1
    %Minimum requirement for
Well-Capitalized institution
under the prompt corrective
action plan
    
    
    39,676
    
    
    
    10.0
    %
    
    
    39,994
    
    
    
    10.0
    %Minimum regulatory requirement
    
    
    31,741
    
    
    
    8.0
    %
    
    
    31,995
    
    
    
    8.0
    %
 LIQUIDITY
      33




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##### Table of Contents



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
  
 ITEM 4. CONTROLS AND PROCEDURES
    34




---



##### Table of Contents



PART II  OTHER INFORMATION
 
 ITEM 1.
    
    LEGAL PROCEEDINGS
  
 ITEM 1A.
    
    RISK FACTORS
  
 ITEM 2.
    
    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 (a)
    
    The information required by this item was included in the Companys Form 8-K filed
on January 30, 2009.(b)
    
    None.(c)
    
    None.
 
 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 as amended on January 21, 2009, is included as exhibit 3.2 to the
Registrants 10-K for December 31, 2008, which is incorporated by this 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.4.1
    
    
    Certificate of Determination of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, is
included as exhibit 4.1 to Registrants 8-K filed on January 30, 2009, which is incorporated
by this reference herein.
  35




---



##### Table of Contents



10.1
    
    
    Executive Salary Continuation Agreement of Andrew J. Ryback dated December 17, 2008, is
included as exhibit 10.1 to the Registrants 10-K for December 31, 2008, 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 February 18, 2009, is included as Exhibit
10.05 to the Registrants 8-K filed on February 19, 2009, 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.10.11
    
    
    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.10.18
    
    
    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.
  36




---



##### Table of Contents



10.34
    
    
    Consulting Agreement of Terrance J. Reeson dated May 10, 2000, is included as Exhibit 10.34 to
the Registrants 10-QSB for June 30, 2002, which is incorporated by this reference herein.10.35
    
    
    Letter Agreement, dated January 30, 2009 by and between Plumas Bancorp, Inc. and the United
States Department of the Treasury and Securities Purchase Agreement  Standard Terms attached
thereto, is included as exhibit 10.1 to Registrants 8-K filed on January 30, 2009, which is
incorporated by this reference herein.10.36
    
    
    Form of Senior Executive Officer letter agreement, is included as exhibit 10.2 to Registrants
8-K filed on January 30, 2009, which is incorporated by this reference herein.10.37
    
    
    Deferred Fee Agreement of Alvin Blickenstaff is included as Exhibit 10.37 to the Registrants
10-Q for March 31, 2009, 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 (Plumas Bancorp) is included as Exhibit 10.41 to the
Registrants 10-Q for March 31, 2009, which is incorporated by this reference herein.10.42
    
    
    Form of Indemnification Agreement (Plumas Bank) is included as Exhibit 10.42 to the
Registrants 10-Q for March 31, 2009, 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.10.50
    
    
    Executive Salary Continuation Agreement of Rose Dembosz, is included as exhibit 10.50 to the
Registrants 10-K for December 31, 2008, which is incorporated by this reference herein.10.51
    
    
    First Amendment to Split Dollar Agreement of Andrew J. Ryback, is included as exhibit 10.51 to
the Registrants 10-K for December 31, 2008, which is incorporated by this reference herein.10.52
    
    
    Executive Salary Continuation Agreement of Douglas N. Biddle dated December 17, 2008, is
included as exhibit 10.52 to the Registrants 10-K for December 31, 2008, which is
incorporated by this reference herein.10.53
    
    
    Second Amendment to Executive Salary Continuation Agreement of Douglas N. Biddle dated June 2,
1994 and Amended February 16, 2000, is included as exhibit 10.53 to the Registrants 10-K for
December 31, 2008, which is incorporated by this reference herein.
  37




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##### Table of Contents



10.54
    
    
    First Amendment to Addendum A of Split Dollar Agreements of Douglas N. Biddle dated January
24, 2002, is included as exhibit 10.54 to the Registrants 10-K for December 31, 2008, which
is incorporated by this reference herein.10.55
    
    
    First Amendment to Addendum B of Split Dollar Agreements of Douglas N. Biddle dated January
24, 2002, is included as exhibit 10.55 to the Registrants 10-K for December 31, 2008, which
is incorporated by this reference herein.10.56
    
    
    Second Amendment to Executive Salary Continuation Agreement of Robert T. Herr dated
June 4, 2002 and Amended September 15, 2004, is included as exhibit 10.56 to the Registrants
10-K for December 31, 2008, which is incorporated by this reference herein.10.57
    
    
    First Amendment to Split Dollar Agreements of Robert T. Herr dated September 15, 2004, is
included as exhibit 10.57 to the Registrants 10-K for December 31, 2008, which is
incorporated by this reference herein.10.58
    
    
    Executive Salary Continuation Agreement of Robert T. Herr dated December 17, 2008, is included
as exhibit 10.58 to the Registrants 10-K for December 31, 2008, 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.10.67
    
    
    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.10.69
    
    
    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 6  Earnings Per
Share.31.1
    
    
    Rule 13a-14(a) [Section 302] Certification of Principal Financial Officer dated November 2,
2009.31.2
    
    
    Rule 13a-14(a) [Section 302] Certification of Principal Executive Officer dated November 2,
2009.32.1
    
    
    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 2, 2009.32.2
    
    
    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 2, 2009.
  38




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##### Table of Contents



PLUMAS BANCORP
(Registrant)Date: November 2, 2009
    /s/ Andrew J. RybackAndrew J. RybackExecutive Vice President Chief Financial Officer/s/ D. N. BiddleDouglas N. BiddlePresident and Chief Executive Officer  39




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##### Table of Contents



ExhibitNumber
    
    Description3.1
    
    
    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 as amended on January 21, 2009, is included as exhibit 3.2 to the
Registrants 10-K for December 31, 2008, which is incorporated by this 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.4.1
    
    
    Certificate of Determination of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, is
included as exhibit 4.1 to Registrants 8-K filed on January 30, 2009, which is incorporated
by this reference herein.10.1
    
    
    Executive Salary Continuation Agreement of Andrew J. Ryback dated December 17, 2008, is
included as exhibit 10.1 to the Registrants 10-K for December 31, 2008, 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 February 18, 2009, is included as Exhibit
10.05 to the Registrants 8-K filed on February 19, 2009, 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.10.11
    
    
    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.10.18
    
    
    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.




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##### Table of Contents



ExhibitNumber
    
    Description10.21
    
    
    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.10.35
    
    
    Letter Agreement, dated January 30, 2009 by and between Plumas Bancorp, Inc. and the United
States Department of the Treasury and Securities Purchase Agreement  Standard Terms attached
thereto, is included as exhibit 10.1 to Registrants 8-K filed on January 30, 2009, which is
incorporated by this reference herein.10.36
    
    
    Form of Senior Executive Officer letter agreement, is included as exhibit 10.2 to Registrants
8-K filed on January 30, 2009, which is incorporated by this reference herein.10.37
    
    
    Deferred Fee Agreement of Alvin Blickenstaff is included as Exhibit 10.37 to the Registrants
10-Q for March 31, 2009, 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 (Plumas Bancorp) is included as Exhibit 10.41 to the
Registrants 10-Q for March 31, 2009, which is incorporated by this reference herein.10.42
    
    
    Form of Indemnification Agreement (Plumas Bank) is included as Exhibit 10.42 to the
Registrants 10-Q for March 31, 2009, 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.




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##### Table of Contents



ExhibitNumber
    
    Description10.47
    
    
    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.10.50
    
    
    Executive Salary Continuation Agreement of Rose Dembosz, is included as exhibit 10.50 to the
Registrants 10-K for December 31, 2008, which is incorporated by this reference herein.10.51
    
    
    First Amendment to Split Dollar Agreement of Andrew J. Ryback, is included as exhibit 10.51 to
the Registrants 10-K for December 31, 2008, which is incorporated by this reference herein.10.52
    
    
    Executive Salary Continuation Agreement of Douglas N. Biddle dated December 17, 2008, is
included as exhibit 10.52 to the Registrants 10-K for December 31, 2008, which is
incorporated by this reference herein.10.53
    
    
    Second Amendment to Executive Salary Continuation Agreement of Douglas N. Biddle dated June 2,
1994 and Amended February 16, 2000, is included as exhibit 10.53 to the Registrants 10-K for
December 31, 2008, which is incorporated by this reference herein.10.54
    
    
    First Amendment to Addendum A of Split Dollar Agreements of Douglas N. Biddle dated January
24, 2002, is included as exhibit 10.54 to the Registrants 10-K for December 31, 2008, which
is incorporated by this reference herein.10.55
    
    
    First Amendment to Addendum B of Split Dollar Agreements of Douglas N. Biddle dated January
24, 2002, is included as exhibit 10.55 to the Registrants 10-K for December 31, 2008, which
is incorporated by this reference herein.10.56
    
    
    Second Amendment to Executive Salary Continuation Agreement of Robert T. Herr dated
June 4, 2002 and Amended September 15, 2004, is included as exhibit 10.56 to the Registrants
10-K for December 31, 2008, which is incorporated by this reference herein.10.57
    
    
    First Amendment to Split Dollar Agreements of Robert T. Herr dated September 15, 2004, is
included as exhibit 10.57 to the Registrants 10-K for December 31, 2008, which is
incorporated by this reference herein.10.58
    
    
    Executive Salary Continuation Agreement of Robert T. Herr dated December 17, 2008, is included
as exhibit 10.58 to the Registrants 10-K for December 31, 2008, 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.10.67
    
    
    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.10.69
    
    
    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.




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##### Table of Contents



ExhibitNumber
    
    Description10.70
    
    
    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 6  Earnings Per
Share.31.1
    
    
    Rule 13a-14(a) [Section 302] Certification of Principal Financial Officer dated November 2,
2009.31.2
    
    
    Rule 13a-14(a) [Section 302] Certification of Principal Executive Officer dated November 2,
2009.32.1
    
    
    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 2, 2009.32.2
    
    
    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 2, 2009.