##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-QSB

|           |  |                                                                                                                               
|---------- |  | ------------------------------------------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                                                               
|          
|          
|          
|          
|x          |  | QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED June 30, 2002
|          
|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

(Name of small business issuer in its charter)


|                                                                                 |  |                                                
|-------------------------------------------------------------------------------- |  | -----------------------------------------------
|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)                               

Issuers telephone number (530) 283-7305

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15 (d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.

Yes x No o


State the number of shares outstanding of each of the issuers classes of
common equity, as of August 8, 2002. 2,135,199 shares

Transitional Small business Disclosure Format (check one)

Yes o No x






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TABLE OF CONTENTS



|                               |                                                                                               |                                            |  |  |  |  |  | 
|------------------------------ | --------------------------------------------------------------------------------------------- | ------------------------------------------ |  |  |  |  |  | 
|PART I  FINANCIAL INFORMATION
|                               | ITEM 1. FINANCIAL STATEMENT                                                                  
|                               |                                                                                               | CONSOLIDATED BALANCE SHEET                
|                               |                                                                                               | CONSOLIDATED STATEMENT OF INCOME          
|                               |                                                                                               | CONSOLIDATED STATEMENT OF CASH FLOWS      
|                               |                                                                                               | CONSOLIDATED STATEMENT OF CASH FLOWS      
|                               |                                                                                               | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|                               | ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|PART II  OTHER INFORMATION   
|                               | ITEM 1. LEGAL PROCEEDINGS                                                                    
|                               | ITEM 2. CHANGES IN SECURITIES                                                                
|                               | ITEM 3. DEFAULTS UPON SENIOR SECURITIES                                                      
|                               | ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                  
|                               | ITEM 5. OTHER INFORMATION                                                                    
|                               | ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K                                                     
|SIGNATURES                    
|EXHIBIT 10.1                  
|EXHIBIT 10.2                  
|EXHIBIT 10.3                  
|EXHIBIT 10.4                  
|EXHIBIT 10.5                  
|EXHIBIT 10.6                  
|EXHIBIT 10.7                  
|EXHIBIT 10.8                  
|EXHIBIT 10.9                  
|EXHIBIT 10.10                 
|EXHIBIT 10.11                 
|EXHIBIT 10.12                 
|EXHIBIT 10.13                 
|EXHIBIT 10.14                 
|EXHIBIT 10.15                 
|EXHIBIT 10.16                 
|EXHIBIT 10.17                 
|EXHIBIT 10.18                 
|EXHIBIT 10.19                 
|EXHIBIT 10.20                 
|EXHIBIT 10.21                 
|EXHIBIT 10.22                 
|EXHIBIT 10.23                 
|EXHIBIT 10.24                 
|EXHIBIT 10.25                 
|EXHIBIT 10.26                 
|EXHIBIT 10.27                 
|EXHIBIT 10.28                 
|EXHIBIT 10.29                 
|EXHIBIT 10.30                 
|EXHIBIT 10.31                 
|EXHIBIT 10.32                 
|EXHIBIT 10.33                 
|EXHIBIT 10.34                 
|EXHIBIT 10.35                 
|EXHIBIT 10.36                 
|EXHIBIT 10.37                 
|EXHIBIT 10.38                 
|EXHIBIT 10.39                 
|EXHIBIT 10.40                 
|EXHIBIT 10.41                 



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##### Table of Contents






PART I  FINANCIAL INFORMATION




ITEM 1.   FINANCIAL STATEMENT

PLUMAS BANCORP




CONSOLIDATED BALANCE SHEET

(In thousands, except share data)


|                                                                                                  |                      |                                                                                                                                                        |                            |                                            |         |             |         |              |         |        |         | 
|------------------------------------------------------------------------------------------------- | -------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------- | ------------------------------------------ | ------- | ----------- | ------- | ------------ | ------- | ------ | ------- | 
|                                                                                                  |                      |                                                                                                                                                        |                            |                                            |         | June 30,    |         | December 31,
|                                                                                                  |                      |                                                                                                                                                        |                            |                                            |         | 2002        |         | 2001        
|                                                                                                  |                      |                                                                                                                                                        |                            |                                            |         |             |         |             
|                                                                                                  |                      |                                                                                                                                                        |                            |                                            |         | (Unaudited) |         | (Audited)   
|Assets                                                                                            |                      |                                                                                                                                                        |                            |                                            |         |             |         |             
|Cash and due from banks                                                                           |                      | $                                                                                                                                                      | 14,395                     |                                            |         | $           | 10,088  |             
|Federal funds sold                                                                                |                      |                                                                                                                                                        | 10,000                     |                                            |         |             | 20,000  |             
|Loans held for sale                                                                               |                      |                                                                                                                                                        | 801                        |                                            |         |             | 649     |             
|Investment securities (market value of $44,049 at June
30, 2002 and $46,275 at December 31, 2001) |                      |                                                                                                                                                        | 43,619                     |                                            |         |             | 45,843  |             
|Loans less allowance for loan losses of $2,486 at June
30, 2002 and $2,153 at December 31, 2001   |                      |                                                                                                                                                        | 198,569                    |                                            |         |             | 180,775 |             
|Bank premises and equipment, net                                                                  |                      |                                                                                                                                                        | 8,826                      |                                            |         |             | 8,133   |             
|Intangible assets, net                                                                            |                      |                                                                                                                                                        | 758                        |                                            |         |             | 825     |             
|Accrued interest receivable and other assets                                                      |                      |                                                                                                                                                        | 9,312                      |                                            |         |             | 8,777   |             
|                                                                                                  |                      |                                                                                                                                                        |                            |                                            |         |             |         |             
|                                                                                                  |                      |                                                                                                                                                        |                            | Total assets                               |         | $           | 286,280 |              |         | $      | 275,090 | 
|                                                                                                  |                      |                                                                                                                                                        |                            |                                            |         |             |         |             
|                                                                                                 
|                                                                                                 
|                                                                                                 
|                                                                                                 
|Liabilities and Shareholders Equity                                                              |                      |                                                                                                                                                        |                            |                                            |         |             |         |             
|Deposits:                                                                                         |                      |                                                                                                                                                        |                            |                                            |         |             |         |             
|                                                                                                  | Non-interest bearing |                                                                                                                                                        | $                          | 60,054                                     |         |             | $       | 53,543       |        
|                                                                                                  | Interest bearing     |                                                                                                                                                        |                            | 202,718                                    |         |             |         | 198,663      |        
|                                                                                                  |                      |                                                                                                                                                        |                            |                                            |         |             |         |             
|                                                                                                  |                      | Total deposits                                                                                                                                         |                            |                                            | 262,772 |             |         |              | 252,206 |       
|Accrued interest payable and other liabilities                                                    |                      |                                                                                                                                                        | 2,027                      |                                            |         |             | 2,267   |             
|                                                                                                  |                      |                                                                                                                                                        |                            |                                            |         |             |         |             
|                                                                                                  |                      | Total liabilities                                                                                                                                      |                            |                                            | 264,799 |             |         |              | 254,473 |       
|                                                                                                  |                      |                                                                                                                                                        |                            |                                            |         |             |         |             
|Shareholders equity:                                                                             |                      |                                                                                                                                                        |                            |                                            |         |             |         |             
|                                                                                                  |                      | Preferred stock, no par value; 10,000,000 shares
authorized, no shares issued or outstanding                                                           |                            |                                            |        |             |         |              |        |       
|                                                                                                  |                      | Common stock, no par value; 20,000,000 shares
authorized, 2,131,119 and 2,128,223 shares
issued and outstanding at June 30, 2002 and
December 31, 2001 |                            |                                            | 2,365   |             |         |              | 2,347   |       
|                                                                                                  |                      | Additional paid-in capital                                                                                                                             |                            |                                            | 1,291   |             |         |              | 1,276   |       
|                                                                                                  |                      | Retained earnings                                                                                                                                      |                            |                                            | 17,562  |             |         |              | 16,846  |       
|                                                                                                  |                      | Accumulated other comprehensive income                                                                                                                 |                            |                                            | 263     |             |         |              | 148     |       
|                                                                                                  |                      |                                                                                                                                                        |                            |                                            |         |             |         |             
|                                                                                                  |                      |                                                                                                                                                        | Total shareholders equity |                                            |         | 21,481      |         |              |         | 20,617 |        
|                                                                                                  |                      |                                                                                                                                                        |                            |                                            |         |             |         |             
|                                                                                                  |                      |                                                                                                                                                        |                            | Total liabilities and shareholders equity |         | $           | 286,280 |              |         | $      | 275,090 | 
|                                                                                                  |                      |                                                                                                                                                        |                            |                                            |         |             |         |             
|                                                                                                 
|See notes to consolidated financial statements.                                                  

2



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##### Table of Contents



PLUMAS BANCORP




CONSOLIDATED STATEMENT OF INCOME

(In thousands, except share data)


|                                                |                                                                      |                                  |                                                      |                       |     |                      |       |                    |     |       |       |       |     |       |       |       |       |       |       | 
|----------------------------------------------- | -------------------------------------------------------------------- | -------------------------------- | ---------------------------------------------------- | --------------------- | --- | -------------------- | ----- | ------------------ | --- | ----- | ----- | ----- | --- | ----- | ----- | ----- | ----- | ----- | ----- | 
|                                                |                                                                      |                                  |                                                      |                       |     | For the Three Months |       | For the Six Months
|                                                |                                                                      |                                  |                                                      |                       |     | Ended June 30,       |       | Ended June 30,    
|                                                |                                                                      |                                  |                                                      |                       |     |                      |       |                   
|                                                |                                                                      |                                  |                                                      |                       |     | 2002                 |       | 2001               |     | 2002  |       | 2001 
|                                                |                                                                      |                                  |                                                      |                       |     |                      |       |                    |     |       |       |      
|                                                |                                                                      |                                  |                                                      |                       |     | (Unaudited)          |       | (Unaudited)       
|                                               
|                                               
|                                               
|                                               
|Interest Income:                                |                                                                      |                                  |                                                      |                       |     |                      |       |                    |     |       |       |       |     |       |       |      
|                                                | Interest and fees on loans                                           |                                  | $                                                    | 3,942                 |     |                      | $     | 4,059              |     |       | $     | 7,806 |     |       | $     | 8,119 |      
|                                                | Interest on investment securities:                                   |                                  |                                                      |                       |     |                      |       |                    |     |       |       |       |     |       |       |       |      
|                                                |                                                                      | Taxable                          |                                                      |                       | 492 |                      |       |                    | 561 |       |       |       | 974 |       |       |       | 1,217 |      
|                                                |                                                                      | Exempt from Federal income taxes |                                                      |                       | 37  |                      |       |                    | 32  |       |       |       | 73  |       |       |       | 63    |      
|                                                | Interest on Federal funds sold                                       |                                  |                                                      | 46                    |     |                      |       | 58                 |     |       |       | 104   |     |       |       | 119   |      
|                                                | Interest on loans held for sale                                      |                                  |                                                      | 9                     |     |                      |       | 29                 |     |       |       | 19    |     |       |       | 33    |      
|                                                |                                                                      |                                  |                                                      |                       |     |                      |       |                    |     |       |       |       |     |       |       |      
|                                                |                                                                      |                                  |                                                      | Total interest income |     |                      | 4,526 |                    |     |       | 4,739 |       |     |       | 8,976 |       |       |       | 9,551 | 
|                                                |                                                                      |                                  |                                                      |                       |     |                      |       |                    |     |       |       |       |     |       |       |      
|Interest Expense:                               |                                                                      |                                  |                                                      |                       |     |                      |       |                    |     |       |       |       |     |       |       |      
|                                                | Interest on deposits                                                 |                                  |                                                      | 980                   |     |                      |       | 1,687              |     |       |       | 2,050 |     |       |       | 3,525 |      
|                                                | Other                                                                |                                  |                                                      | 1                     |     |                      |       | 1                  |     |       |       | 1     |     |       |       | 1     |      
|                                                |                                                                      |                                  |                                                      |                       |     |                      |       |                    |     |       |       |       |     |       |       |      
|                                                |                                                                      |                                  | Total interest expense                               |                       |     | 981                  |       |                    |     | 1,688 |       |       |     | 2,051 |       |       |       | 3,526 |      
|                                                |                                                                      |                                  |                                                      |                       |     |                      |       |                    |     |       |       |       |     |       |       |      
|                                                |                                                                      |                                  | Net interest income before provision
for loan losses |                       |     | 3,545                |       |                    |     | 3,051 |       |       |     | 6,925 |       |       |       | 6,025 |      
|Provision for Loan Losses                       |                                                                      |                                  | 300                                                  |                       |     |                      | 300   |                    |     |       | 525   |       |     |       | 450   |      
|                                                |                                                                      |                                  |                                                      |                       |     |                      |       |                    |     |       |       |       |     |       |       |      
|                                                |                                                                      |                                  | Net interest income after provision
for loan losses  |                       |     | 3,245                |       |                    |     | 2,751 |       |       |     | 6,400 |       |       |       | 5,575 |      
|Non-Interest Income:                            |                                                                      |                                  |                                                      |                       |     |                      |       |                    |     |       |       |       |     |       |       |      
|                                                | Service charges                                                      |                                  |                                                      | 489                   |     |                      |       | 414                |     |       |       | 919   |     |       |       | 784   |      
|                                                | Gain on sale of loans, net                                           |                                  |                                                      | 36                    |     |                      |       | 127                |     |       |       | 25    |     |       |       | 123   |      
|                                                | Gain (loss) on sale of available-for-sale
investment securities, net |                                  |                                                      | 2                     |     |                      |       | 29                 |     |       |       | 62    |     |       |       | (30   | )    
|                                                | Gain on sale of other real estate owned                              |                                  |                                                      |                      |     |                      |       |                   |     |       |       |      |     |       |       | 78    |      
|                                                | Earnings on cash surrender value of life
insurance policies          |                                  |                                                      | 54                    |     |                      |       | 53                 |     |       |       | 108   |     |       |       | 107   |      
|                                                | Other income                                                         |                                  |                                                      | 207                   |     |                      |       | 175                |     |       |       | 404   |     |       |       | 316   |      
|                                                |                                                                      |                                  |                                                      |                       |     |                      |       |                    |     |       |       |       |     |       |       |      
|                                                |                                                                      |                                  | Total non-interest income                            |                       |     | 788                  |       |                    |     | 798   |       |       |     | 1,518 |       |       |       | 1,378 |      
|                                                |                                                                      |                                  |                                                      |                       |     |                      |       |                    |     |       |       |       |     |       |       |      
|Non-Interest Expense:                           |                                                                      |                                  |                                                      |                       |     |                      |       |                    |     |       |       |       |     |       |       |      
|                                                | Salaries and employee benefits                                       |                                  |                                                      | 1,485                 |     |                      |       | 1,433              |     |       |       | 3,039 |     |       |       | 2,842 |      
|                                                | Occupancy and equipment                                              |                                  |                                                      | 422                   |     |                      |       | 352                |     |       |       | 821   |     |       |       | 708   |      
|                                                | Other expense                                                        |                                  |                                                      | 931                   |     |                      |       | 785                |     |       |       | 1,723 |     |       |       | 1,495 |      
|                                                |                                                                      |                                  |                                                      |                       |     |                      |       |                    |     |       |       |       |     |       |       |      
|                                                |                                                                      |                                  | Total non-interest expenses                          |                       |     | 2,838                |       |                    |     | 2,570 |       |       |     | 5,583 |       |       |       | 5,045 |      
|                                                |                                                                      |                                  |                                                      |                       |     |                      |       |                    |     |       |       |       |     |       |       |      
|                                                |                                                                      |                                  | Income before income taxes                           |                       |     | 1,195                |       |                    |     | 979   |       |       |     | 2,335 |       |       |       | 1,908 |      
|Income Tax Expense                              |                                                                      |                                  | 475                                                  |                       |     |                      | 363   |                    |     |       | 916   |       |     |       | 702   |      
|                                                |                                                                      |                                  |                                                      |                       |     |                      |       |                    |     |       |       |       |     |       |       |      
|                                                |                                                                      |                                  | Net income                                           |                       | $   | 720                  |       |                    | $   | 616   |       |       | $   | 1,419 |       |       | $     | 1,206 |      
|                                                |                                                                      |                                  |                                                      |                       |     |                      |       |                    |     |       |       |       |     |       |       |      
|Basic earnings per share                        |                                                                      | $                                | 0.34                                                 |                       |     | $                    | 0.29  |                    |     | $     | 0.67  |       |     | $     | 0.58  |      
|                                                |                                                                      |                                  |                                                      |                       |     |                      |       |                    |     |       |       |       |     |       |       |      
|Diluted earnings per share                      |                                                                      | $                                | 0.33                                                 |                       |     | $                    | 0.28  |                    |     | $     | 0.65  |       |     | $     | 0.56  |      
|                                                |                                                                      |                                  |                                                      |                       |     |                      |       |                    |     |       |       |       |     |       |       |      
|                                               
|See notes to consolidated financial statements.

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##### Table of Contents



PLUMAS BANCORP




CONSOLIDATED STATEMENT OF CASH FLOWS


(In thousands)


|                                      |                                                                                   |                                                                                                             |                                           |       |                    |         |             |       |         |        |  
|------------------------------------- | --------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | ----------------------------------------- | ----- | ------------------ | ------- | ----------- | ----- | ------- | ------ | -
|                                      |                                                                                   |                                                                                                             |                                           |       | For the Six Months
|                                      |                                                                                   |                                                                                                             |                                           |       | Ended June 30,    
|                                      |                                                                                   |                                                                                                             |                                           |       |                   
|                                      |                                                                                   |                                                                                                             |                                           |       | 2002               |         | 2001       
|                                      |                                                                                   |                                                                                                             |                                           |       |                    |         |            
|                                      |                                                                                   |                                                                                                             |                                           |       | (Unaudited)        |         | (Unaudited)
|                                     
|                                     
|                                     
|                                     
|Cash Flows from Operating Activities: |                                                                                   |                                                                                                             |                                           |       |                    |         |             |      
|                                      | Net income                                                                        |                                                                                                             | $                                         | 1,419 |                    |         | $           | 1,206 |        
|                                      | Adjustments to reconcile net income to net cash provided by operating
activities: |                                                                                                             |                                           |       |                    |         |             |       |        
|                                      |                                                                                   | Provision for loan losses                                                                                   |                                           |       | 525                |         |             |       | 450     |       
|                                      |                                                                                   | Deferred loan origination fees, net                                                                         |                                           |       | (153               | )       |             |       | 12      |       
|                                      |                                                                                   | Depreciation, amortization and accretion, net                                                               |                                           |       | 492                |         |             |       | 423     |       
|                                      |                                                                                   | Net realized gain on available-for-sale investment securities                                               |                                           |       | (62                | )       |             |       | (30     | )     
|                                      |                                                                                   | Amortization of investment security premiums                                                                |                                           |       | 84                 |         |             |       | 34      |       
|                                      |                                                                                   | Accretion of investment security discounts                                                                  |                                           |       | (64                | )       |             |       | (17     | )     
|                                      |                                                                                   | Net gain (loss) on sale of premises and equipment and other real estate                                     |                                           |       | 6                  |         |             |       | (81     | )     
|                                      |                                                                                   | Write down of held-to-maturity investment security                                                          |                                           |       |                   |         |             |       | 60      |       
|                                      |                                                                                   | Write down of other real estate to market value                                                             |                                           |       |                   |         |             |       |        |       
|                                      |                                                                                   | Net increase in loans held for sale                                                                         |                                           |       | (152               | )       |             |       | (1,873  | )     
|                                      |                                                                                   | Increase in cash surrender value of life insurance                                                          |                                           |       | (108               | )       |             |       | (107    | )     
|                                      |                                                                                   | Net (increase) decrease in accrued interest receivable and other assets                                     |                                           |       | (22                | )       |             |       | 355     |       
|                                      |                                                                                   | Net decrease in accrued interest payable and other liabilities                                              |                                           |       | (240               | )       |             |       | (41     | )     
|                                      |                                                                                   | Deferred taxes, net                                                                                         |                                           |       | 24                 |         |             |       | (34     | )     
|                                      |                                                                                   |                                                                                                             |                                           |       |                    |         |             |      
|                                      |                                                                                   |                                                                                                             | Net cash provided by operating activities |       |                    | 1,749   |             |       |         | 357    |  
|                                      |                                                                                   |                                                                                                             |                                           |       |                    |         |             |      
|Cash Flows from Investing Activities: |                                                                                   |                                                                                                             |                                           |       |                    |         |             |      
|                                      |                                                                                   | Proceeds from matured and called available-for-sale investment
securities                                   |                                           |       | 13,996             |         |             |       | 5,450   |       
|                                      |                                                                                   | Proceeds from matured and called held-to-maturity investment securities                                     |                                           |       | 3,699              |         |             |       | 6,695   |       
|                                      |                                                                                   | Proceeds from sales of available-for-sale investment securities                                             |                                           |       | 530                |         |             |       | 2,952   |       
|                                      |                                                                                   | Purchases of available-for-sale investment securities                                                       |                                           |       | (15,977            | )       |             |       | (2,191  | )     
|                                      |                                                                                   | Purchases of held-to-maturity investment securities                                                         |                                           |       | (685               | )       |             |       | (103    | )     
|                                      |                                                                                   | Proceeds from principal repayments from available-for-sale
government-guaranteed mortgage-backed securities |                                           |       | 431                |         |             |       | 306     |       
|                                      |                                                                                   | Proceeds from principal repayments from held-to-maturity
government-guaranteed mortgage-backed securities   |                                           |       | 468                |         |             |       | 80      |       
|                                      |                                                                                   | Net increase in loans                                                                                       |                                           |       | (18,166            | )       |             |       | (13,639 | )     
|                                      |                                                                                   | Proceeds from sale of other real estate                                                                     |                                           |       |                   |         |             |       | 113     |       
|                                      |                                                                                   | Purchase of premises and equipment                                                                          |                                           |       | (1,124             | )       |             |       | (788    | )     
|                                      |                                                                                   | Proceeds from sale of equipment                                                                             |                                           |       |                   |         |             |       | 8       |       
|                                      |                                                                                   | Deposits on single premium cash surrender value life insurance policies                                     |                                           |       | (510               | )       |             |       |        |       
|                                      |                                                                                   |                                                                                                             |                                           |       |                    |         |             |      
|                                      |                                                                                   |                                                                                                             | Net cash used in investing activities     |       |                    | (17,338 | )           |       |         | (1,117 | )
|                                     
|Continued on next page.              

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##### Table of Contents



PLUMAS BANCORP




CONSOLIDATED STATEMENT OF CASH FLOWS


(In thousands)
(Continued)


|                                                  |                                                                       |                                                               |                                                  |     |                    |        |        |     |       |        | 
|------------------------------------------------- | --------------------------------------------------------------------- | ------------------------------------------------------------- | ------------------------------------------------ | --- | ------------------ | ------ | ------ | --- | ----- | ------ | 
|                                                  |                                                                       |                                                               |                                                  |     | Unaudited         
|                                                  |                                                                       |                                                               |                                                  |     | For the Six Months
|                                                  |                                                                       |                                                               |                                                  |     | Ended June 30,    
|                                                  |                                                                       |                                                               |                                                  |     |                   
|                                                  |                                                                       |                                                               |                                                  |     | 2002               |        | 2001  
|                                                 
|                                                 
|                                                 
|                                                 
|Cash Flows from Financing Activities:             |                                                                       |                                                               |                                                  |     |                    |        |        |    
|                                                  |                                                                       | Net increase in demand, interest bearing and savings deposits |                                                  | $   | 13,385             |        |        | $   | 9,564 |       
|                                                  |                                                                       | Net (decrease) increase in time deposits                      |                                                  |     | (2,819             | )      |        |     | 4,189 |       
|                                                  |                                                                       | Proceeds from exercise of stock options                       |                                                  |     | 33                 |        |        |     | 90    |       
|                                                  |                                                                       | Cash dividends paid                                           |                                                  |     | (703               | )      |        |     | (635  | )     
|                                                  |                                                                       |                                                               |                                                  |     |                    |        |        |    
|                                                  |                                                                       |                                                               | Net cash provided by financing activities        |     |                    | 9,896  |        |     |       | 13,208 | 
|                                                  |                                                                       |                                                               | (Decrease) increase in cash and cash equivalents |     |                    | (5,693 | )      |     |       | 12,448 | 
|Cash and Cash Equivalents at Beginning of Year    |                                                                       |                                                               | 30,088                                           |     |                    |        | 13,563 |    
|                                                  |                                                                       |                                                               |                                                  |     |                    |        |        |    
|Cash and Cash Equivalents at End of Period        |                                                                       | $                                                             | 24,395                                           |     |                    | $      | 26,011 |    
|                                                  |                                                                       |                                                               |                                                  |     |                    |        |        |    
|                                                 
|                                                 
|                                                 
|                                                 
|Supplemental Disclosure of Cash Flow Information: |                                                                       |                                                               |                                                  |     |                    |        |        |    
|                                                  | Cash paid during the period for:                                      |                                                               |                                                  |     |                    |        |        |     |      
|                                                  |                                                                       | Interest expense                                              |                                                  | $   | 2,098              |        |        | $   | 3,358 |       
|                                                  |                                                                       | Income taxes                                                  |                                                  | $   | 1,045              |        |        | $   | 627   |       
|Non-Cash Investing Activities:                    |                                                                       |                                                               |                                                  |     |                    |        |        |    
|                                                  | Real estate acquired through foreclosure                              |                                                               | $                                                |    |                    |        | $      | 40  |      
|                                                  | Net change in unrealized gain on available-for-sale securities        |                                                               | $                                                | 196 |                    |        | $      | 189 |      
|Non-Cash Financing Activities:                    |                                                                       |                                                               |                                                  |     |                    |        |        |    
|                                                  | Common stock retired in connection with the exercise of stock options |                                                               | $                                                |    |                    |        | $      | 162 |      
|                                                 
|See notes to consolidated financial statements.  

5



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##### Table of Contents



PLUMAS BANCORP




NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)


1.   GENERAL

Plumas Bancorp (the Company) was incorporated on January 17, 2002 and
subsequently obtained approval from various state and federal agencies to be a
bank holding company in connection with its acquisition of Plumas Bank (the
Bank). The Company became the sole shareholder of the Bank on June 21, 2002
pursuant to a Plan of Reorganization and Merger Agreement dated April 3, 2002.
Pursuant to that plan, on June 21, 2002 each outstanding share of the Banks
common stock was exchanged for one share of common stock of the Company.

2.   CONSOLIDATED FINANCIAL STATEMENTS

In the opinion of management, the unaudited financial statements contain all
adjustments (consisting of only normal recurring adjustments) necessary to
present fairly the Companys financial position at June 30, 2002 and December
31, 2001, the results of operations and cash flows for the six months ended
June 30, 2002 and 2001 and the results of operations for the three months ended
June 30, 2002 and 2001. Certain reclassifications have been made to prior
years balances to conform to classifications used in 2002.

Certain disclosures normally presented in the notes to the financial statements
prepared in accordance with generally accepted accounting principles have been
omitted. These interim financial statements should be read in conjunction with
the financial statements and notes thereto included in the Banks 2001Annual
Report to Shareholders. The results of operations for the three and six-month
periods ended June 30, 2002 and 2001 may not necessarily be indicative of
future operating results.

In preparing such financial statements, management is required to make
estimates and assumptions that affect the reported amounts of assets and
liabilities as of the date of the balance sheet and revenues and expenses for
the periods reported. Actual results could differ significantly from those
estimates.

3.   COMMITMENTS AND CONTINGENCIES

In the normal course of business, there are various outstanding commitments to
extend credit which are not reflected in the financial statements, including
loan commitments of approximately $39,643,000 and $35,753,000 and letters of
credit of $207,000 and $279,000 at June 30, 2002 and December 31, 2001,
respectively.

Approximately $5,638,000 of the loan commitments outstanding at June 30, 2002
are for real estate construction loans and are expected to fund within the next
twelve months. The remaining commitments primarily relate to revolving lines
of credit or other commercial loans, and many of these are expected to expire
without being drawn upon. Therefore, the total commitments do not necessarily
represent future cash requirements. Each loan commitment and the amount and
type of collateral obtained, if any, are evaluated on an individual basis.
Collateral held varies, but may include real property, bank deposits, debt or
equity securities or business assets.

Stand-by letters of credit are conditional commitments written to guarantee the
performance of a customer to a third party. These guarantees are primarily
related to the purchases of inventory by commercial customers and are typically
short term in nature. Credit risk is similar to that involved in extending
loan commitments to customers and accordingly, evaluation and collateral
requirements similar to those for loan commitments are used.

6



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##### Table of Contents



4.   EARNINGS PER SHARE COMPUTATION

|                                              |  |                      |           |                |  |   |           | 
|--------------------------------------------- |  | -------------------- | --------- | -------------- |  | - | --------- | 
|                                              |  | For Quarters Ended  
|                                              |  | June 30,            
|                                              |  |                     
|Earnings Per Share                            |  | 2002                 |           | 2001          
|                                              |  |                      |           |               
|Basic earnings per share                      |  | $                    | 0.34      |                |  | $ | 0.29      | 
|Diluted earnings per share                    |  | $                    | 0.33      |                |  | $ | 0.28      | 
|                                             
|                                              |  | For Quarter          |           | For Quarter   
|                                              |  | Ended                |           | Ended         
|Weighted Average Number of Shares Outstanding |  | June 30, 2002        |           | June 30, 2001 
|                                              |  |                      |           |               
|Basic Shares                                  |  |                      | 2,129,159 |                |  |   | 2,116,121 | 
|Diluted Shares                                |  |                      | 2,145,634 |                |  |   | 2,175,255 | 
|                                             
|                                              |  | For Six Months Ended
|                                              |  | June 30,            
|                                              |  |                     
|Earnings Per Share                            |  | 2002                 |           | 2001          
|                                              |  |                      |           |               
|Basic earnings per share                      |  | $                    | 0.67      |                |  | $ | 0.58      | 
|Diluted earnings per share                    |  | $                    | 0.65      |                |  | $ | 0.56      | 
|                                             
|                                              |  | For Six Months       |           | For Six Months
|                                              |  | Ended                |           | Ended         
|Weighted Average Number of Shares Outstanding |  | June 30, 2002        |           | June 30, 2001 
|                                              |  |                      |           |               
|Basic Shares                                  |  |                      | 2,129,531 |                |  |   | 2,091,195 | 
|Diluted Shares                                |  |                      | 2,169,615 |                |  |   | 2,167,509 | 

5.   COMPREHENSIVE INCOME

Total comprehensive income for the three months ended June 30, 2002 and 2001
totaled $921,000 and $572,000, respectively. Comprehensive income is comprised
of net unrealized gains and (losses), net of taxes, on available-for-sale
investment securities, which were $201,000 and $(44,000) for the three months
ended June 30, 2002 and 2001, respectively.

Total comprehensive income for the six months ended June 30, 2002 and 2001
totaled $1,534,000 and $1,317,000, respectively. Comprehensive income is
comprised of net unrealized gains, net of taxes, on available-for-sale
investment securities, which were $115,000 and $111,000 for the six months
ended June 30, 2002 and 2001, respectively, and net income. At June 30, 2002
and 2001, accumulated other comprehensive income totaled $263,000 and $97,000,
respectively.

7



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##### Table of Contents



PART I  FINANCIAL INFORMATION




ITEM 2.   MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

INTRODUCTION

Plumas Bancorp (the Company) is traded on the OTC Bulletin Board under the
ticker symbol PLBC. The following discussion and analysis sets forth certain
statistical information relating to the Company as of June 30, 2002 and
December 31, 2001 and for the three and six months ended June 30, 2002 and June
30, 2001. This discussion should be read in conjunction with the financial
statements and related notes included elsewhere in this Quarterly Report on
Form 10-QSB and the financial statements and notes thereto included in Plumas
Banks Annual Report filed on Form 10-KSB for the year ended December 31, 2001.
Certain matters discussed in this Quarterly Report are forward-looking
statements that are subject to risks and uncertainties that could cause actual
results to differ materially from those projected in the forward-looking
statements. Such risks and uncertainties include, among others, (1)
significant increases in competitive pressures in the financial services
industry; (2) changes in the interest rate environment resulting in reduced
margins; (3) general economic conditions, either nationally or regionally, are
less favorable than expected, resulting in, among other things, a deterioration
in credit quality; (4) changes in regulatory environment; (5) loss of key
personnel; (6) fluctuations in the real estate market; (7) changes in business
conditions and inflation; (8) operational risks including data processing
systems failures or fraud; and (9) changes in securities markets. Such risks
and uncertainties include, but are not limited to, those described in
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS. Therefore, the information set forth herein should be carefully
considered when evaluating the business prospects of Plumas Bancorp.

When the Company uses in this Quarterly Report the words anticipate,
estimate, expect, project, intend, commit, believe and similar
expressions, the Company intends to identify forward-looking statements. Such
statements are not guarantees of performance and are subject to certain risks,
uncertainties and assumptions, including those described in this Quarterly
Report. Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may vary
materially from those anticipated, estimated, expected, projected, intended,
committed or believed. The future results and stockholder values of the
Company may differ materially from those expressed in these forward-looking
statements. Many of the factors that will determine these results and values
are beyond the Companys ability to control or predict. For those statements,
the Company claims the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of 1995.

OVERVIEW

The Companys net income increased $213,000, or 17.7%, to $1,419,000 for the
six months ended June 30, 2002 from $1,206,000 for the same period in 2001.
The primary contributors to the increase in net income for the first six months
of 2002 were a $900 thousand increase in net interest income before provision
for loan losses and a $140 thousand increase in non-interest income, partially
offset by a $538 thousand increase in non-interest expenses, a $214 thousand
increase in income tax expense and a $75 thousand increase in the provision for
loan losses.

Total assets at June 30, 2002 increased $11.2 million, or 4.1%, to $286.3
million from $275.1 million at December 31, 2001. Outpacing the total asset
growth was the growth in the loan portfolio, which grew $18.0 million, or 9.8%,
to $201.7 million during the same period. The growth in the Companys loans
was primarily funded by a decline in the Federal funds sold balances and growth
in deposits. Federal funds sold balances declined $10.0 million during this
period while total deposits grew $10.6 million, or 4.2%, to $262.8 million at
June 30, 2002 from $252.2 million at December 31, 2001.

8



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##### Table of Contents



The return on average assets was 1.02% for the six months ended June 30, 2002
compared to 1.00% for the same period in 2001. The return on average equity
was 13.5% for the six months ended June 30, 2002 compared to 12.8% for the same
period in 2001. The Companys earnings increased significantly during this
period resulting in improvement in the return on average asset and equity
ratios, the positive affect of improved earnings was slightly offset by the
Companys overall growth.

RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2002

Net interest income before provision for loan losses.Net interest income
before provision for loan losses is the difference between interest earned on
assets and interest paid on liabilities. Net interest income, on a
nontax-equivalent basis, was $6.9 million for the six months ended June 30,
2002, an increase of $900,000, or 14.9%, from $6.0 million for the same period
in 2001. The increase in net interest income was attributed to declines in
rates paid on the Companys deposits combined with volume increases in the
Companys average loan and Federal funds sold balances, partially offset by
declines in the yields on the Companys interest-earning assets. The Companys
average loan balances were $190.8 million for the six months ended June 30,
2002, up $22.3 million, or 13.3%, from the $168.5 million for the same period
in 2001. Offsetting the benefits of the increased loan volume was the impact
of the 2001 falling interest rate environment on the Companys loan portfolio.
The Companys average loan yield was 8.27% for the six months ending June 30,
2002, down 149 basis points, or 15.3%, from the 9.76% for the same period in
2001.

Interest expense decreased $1.5 million, or 41.8%, to $2.1 million for the six
months ended June 30, 2002, down from $3.5 million for the same period in 2001.
The decrease in interest expense was primarily attributed to rate decreases
for both time and money market deposits, slightly offset by volume increases in
money market deposits. The Companys average rate paid on time deposits was
3.37% for the six months ending June 30, 2002, down 222 basis points, or 39.7%,
from the 5.59% paid for the same period in 2001. The Companys average rate
paid on money market deposits was 1.53% for the six months ending June 30,
2002, down 223 basis points, or 59.3%, from the 3.76% paid for the same period
in 2001. The Companys average money market deposit balances were $48.3
million for the six months ended June 30, 2002, up $8.5 million, or 21.3%, from
the $39.8 million for the same period in 2001.

Net interest margin is net interest income expressed as a percentage of average
interest-earning assets. The net interest margin for the six months ended June
30, 2002 increased 5 basis points, or 0.9%, to 5.66%, up from 5.61% for the
same period in 2001. The Companys declining cost of funds and increasing loan
volumes offset the adverse effects of the 2001 falling interest rate
environment on the Companys interest-earning assets and resulted in the
overall increase in the net interest margin when comparing the periods of 2002
and 2001.

Provision for loan losses.The Company recorded $525,000 in provision for loan
losses for the six months ended June 30, 2002, versus $450,000 during the same
period ended June 30, 2001. The increase in the provision for loan losses
during these periods is reflective of the increasing loan volumes. The Company
assesses its loan quality monthly to maintain an adequate allowance for loan
losses. Based on information currently available, management believes that the
allowance for loan losses is adequate to absorb potential risks in the
portfolio. However, no assurance can be given that the Company may not sustain
charge-offs which are in excess of the allowance in any given period.

Non-interest income.During the six months ended June 30, 2002, total
non-interest income increased $140,000, or 10.2%, to $1,518,000, up from
$1,378,000 for the comparable period in 2001. The increase in non-interest
income is primarily due to increases in the number of fee generating accounts
opened, growth in alternative investment fee income, gains on the sale of
available-for-sale investment securities and restructuring of the Banks
service charge fee schedule in February 2002, partially offset by reduced gains
on the sale of loans and other real estate owned.

9



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##### Table of Contents



Non-interest expenses.During the six months ended June 30, 2002, non-interest
expenses increased $538,000, or 10.7%, to $5.6 million, up from $5.0 million
for the comparable period in 2001. The increase in non-interest expense is
primarily due to increased salary and benefit costs resulting from staffing
additions to manage the overall growth of the Company, higher employee
health-care costs, additional depreciation expense resulting from installation
of an automated teller platform system, increased professional service fees
related to enhancing the systems securing customer and company information and
costs incurred to complete the merger and reorganization of the Bank under the
Company.

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2002

Net interest income before provision for loan losses.Net interest income, on
a nontax-equivalent basis, was $3.5 million for the three months ended June 30,
2002, an increase of $494,000, or 16.2%, from $3.0 million for the same period
in 2001. The increase in net interest income was attributed to declines in
rates paid on the Companys deposits combined with volume increases in the
Companys average loan balances, partially offset by declines in the yield on
the Companys interest-earning assets. The Companys average loan balances
were $196.4 million for the three months ended June 30, 2002, up $24.2 million,
or 14.0%, from the $172.2 million for the same period in 2001. Offsetting the
benefits of the increased loan volume was the impact of the 2001 falling
interest rate environment on the Companys loan portfolio. The Companys
average loan yield was 8.16% for the three months ending June 30, 2002, down
147 basis points, or 15.3%, from the 9.63% for the same period in 2001.

Interest expense decreased $707,000, or 41.9%, to $981 thousand for the three
months ended June 30, 2002, down from $1.7 million for the same period in 2001.
The decrease in interest expense was primarily attributed to rate decreases
for both time and money market deposits. The Companys average rate paid on
time deposits was 3.18% for the three months ending June 30, 2002, down 226
basis points, or 41.5%, from the 5.44% paid for the same period in 2001. The
Companys average rate paid on money market deposits was 1.54% for the three
months ending June 30, 2002, down 184 basis points, or 54.4%, from the 3.38%
paid for the same period in 2001.

The net interest margin for the three months ended June 30, 2002 increased 3
basis points, or 0.5%, to 5.74%, up from 5.71% for the same period in 2001.
The Companys declining cost of funds and increasing loan volumes offset the
adverse effects of the 2001 falling interest rate environment on the Companys
interest-earning assets and resulted in the overall increase in the net
interest margin when comparing the periods of 2002 and 2001.

Provision for loan losses.The Company recorded $300,000 in provision for loan
losses for both three-month periods ended June 30, 2002 and 2001. The
provision for loan losses during these periods is reflective of the increasing
loan volumes. The Company assesses its loan quality monthly to maintain an
adequate allowance for loan losses. Based on information currently available,
management believes that the allowance for loan losses is adequate to absorb
potential risks in the portfolio. However, no assurance can be given that the
Company may not sustain charge-offs which are in excess of the allowance in any
given period.

Non-interest income.During the three months ended June 30, 2002, total
non-interest income decreased $10,000, or 1.3%, to $788,000, down from $798,000
for the comparable period in 2001. The decrease in non-interest income is
primarily due to reduced gains on the sales of loans and investment securities
partially offset by increases in the number of fee generating accounts and the
restructuring of the Banks service charge fee schedule in February 2002.

Non-interest expenses.During the three months ended June 30, 2002,
non-interest expenses increased $268,000, or 10.4%, to $2.8 million, up from
$2.6 million for the comparable period in 2001. The increase in non-interest
expense is primarily due to additional depreciation expense resulting from
installation of an automated teller platform system, increased professional
service fees related to enhancing the systems securing customer and company
information, costs incurred to complete the merger and reorganization of the
Bank under the Company and increased insurance costs partially offset by
decreases in the Companys regulatory assessments.

10



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##### Table of Contents



FINANCIAL CONDITION

Loan portfolio composition.The Company continues to manage the mix of its
loan portfolio consistent with its identity as a community bank serving the
financing needs of all sectors of the area it serves. Although the Company
offers a broad array of financing options, it continues to concentrate its
focus on small to medium commercial businesses. These loans offer
diversification as to industries and types of businesses, thus limiting
material exposure in any industry concentrations. The Company offers both
fixed and floating rate loans and obtains collateral in the form of real
property, business assets and deposit accounts, but looks to business and
personal cash flows as its primary source of repayment. As of June 30, 2002,
commercial loans grew to 35.4% of the loan portfolio versus 27.2% at December
31, 2001. Real estate loans fell to 29.6% of the portfolio as of June 30, 2002
as compared to 35.2% at December 31, 2001. Agricultural loans decreased
slightly to 10.5% of the loan portfolio versus 11.9% at December 31, 2001.
Consumer loans also decreased slightly to 24.5% of the loan portfolio at June
30, 2002 compared to 25.7% at December 31, 2001.

Nonperforming assets.Nonperforming loans as a percent of total loans were
0.90% as of June 30, 2002, up slightly from 0.65% at December 31, 2001.
Nonperforming assets as a percent of total assets were 0.68% as of June 30,
2002 up slightly from 0.48% at December 31, 2001. The increases in these
ratios was the result of increases in nonaccrual loans, which increased
$611,000 to $1.8 million at June 30, 2002 from $1.2 million at December 31,
2001.

Analysis of allowance for loan losses.Net charge-offs during the six months
ended June 30, 2002 totaled $193,000, or 0.10% of total loans, compared to
$160,000, or 0.09% of total loans, for the comparable period in 2001. The
allowance for loan losses stood at 1.23% of total loans as of June 30, 2002,
versus 1.17% of total loans as of December 31, 2001. Based on an evaluation of
the credit quality of the loan portfolio and delinquency trends and
charge-offs, management believes the allowance for loan losses to be adequate.

Investment securities and Federal funds sold.Total investment securities and
Federal funds sold decreased $12.2 million, or 18.5%, to $53.6 million as of
June 30, 2002, down from $65.8 million at December 31, 2001. The decrease is
attributable to the Companys loan growth, which outpaced the Companys deposit
growth. Federal funds sold and proceeds from maturing short-term U.S.
Treasuries and longer-term corporate bonds were used to fund the Companys
continued loan growth.

The Companys investment in U.S. Treasury securities and direct obligations of
U.S. agencies increased to 76.4% of the investment portfolio, excluding Federal
funds sold, as of June 30, 2002, versus 72.1% at December 31, 2001. The
Companys investment in corporate bonds declined to 15.0% of the investment
portfolio as of June 30, 2002, versus 21.2% at December 31, 2001. The
remainder of the Companys investment portfolio consists of municipal
obligations and interest-bearing deposits with other financial institutions.

Deposits.Total deposits were $262.8 million as of June 30, 2002, an increase
of $10.6 million, or 4.2%, from the December 31, 2001 balance of $252.2
million. The Company continues to manage the mix of its deposits consistent
with its identity as a community bank serving the financial needs of its
customers. As of June 30, 2002, non-interest bearing demand deposits and
interest checking deposits increased slightly to 35.2% of total deposits versus
34.1% at December 31, 2001. Money market and savings deposits also increased
slightly to 32.9% of total deposits as of June 30, 2002 compared to 31.6% as of
December 31, 2001. Time deposits decreased to 31.9% of total deposits as of
June 30, 2002 compared to 34.3% at December 31, 2001.

CAPITAL RESOURCES

Shareholders equity as of June 30, 2002 increased $864,000, or 4.2%, to $21.5
million from $20.6 million as of December 31, 2001. This increase was
primarily due to the retention of current period earnings, partially offset by
a $703,000 cash dividend paid in the second quarter.

11



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##### Table of Contents



The Companys leverage (Tier 1 capital to average total assets) ratios were
7.3% and 7.4% at June 30, 2002 and December 31, 2001, respectively. The
Companys Tier 1 risk-based capital ratios were 9.0% and 9.3% for June 30, 2002
and December 31, 2001, respectively. The Companys total risk-based capital
ratios were 10.1% and 10.3% for June 30, 2002 and December 31, 2001,
respectively. These ratios exceed the minimum required capital ratios for bank
holding companies.

LIQUIDITY

The Company manages its liquidity to provide the ability to generate funds to
support asset growth, meet deposit withdrawals (both anticipated and
unanticipated), fund customers borrowing needs, satisfy maturity of short-term
borrowings and maintain reserve requirements. The Companys liquidity needs
are managed using assets or liabilities, or both. On the asset side, in
addition to Federal Funds sold, the Company maintains an investment portfolio
containing U.S. government securities and agency securities that are classified
as available for sale. On the liability side, liquidity needs are managed by
changing competitive offering rates on deposits products and the use of
established lines of credit from other financial institutions and the Federal
Home Loan Bank.

Customer deposits are the Companys primary source of funds. Deposits grew
$10.6 million, or 4.2%, from the December 31, 2001 balance of $252.2 million.
Those funds are held in various forms with varying maturities. The Company
does not accept brokered deposits. The Companys securities portfolio, Federal
funds sold, and cash and due from banks serve as the primary sources of
liquidity, providing adequate funding for loans during periods of high loan
demand. During periods of decreased lending, funds obtained from the maturing
or sale of investments, loan payments, and new deposits are invested in
short-term earning assets, such as Federal funds sold and investment
securities, to serve as a source of funding for future loan growth. Management
believes that the Companys available sources of funds, including short-term
borrowings, will provide adequate liquidity for its operations in the
foreseeable future.

12



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##### Table of Contents






PART II  OTHER INFORMATION




ITEM 1.   LEGAL PROCEEDINGS

None.




ITEM 2.   CHANGES IN SECURITIES

On February 6, 2002, 100 shares of the Companys common stock were issued to
William E. Elliott in exchange for $150 to initially capitalize the Company.
As of the date of this report the Company has repurchased all 100 shares of
common stock from William E. Elliott for $150. No dividends were paid on the
common stock.




ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

None.




ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.




ITEM 5.   OTHER INFORMATION

None.




ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

Exhibits and Reports on Form 8-K

|    |  |       |  |                                                                                                                                                                      
|--- |  | ----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | 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                              
|   
|   
|   
|   
|    |  | 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  |  | Employment Agreement of William E. Elliott dated May 16, 2001                                                                                                        
|   
|   
|   
|   
|    |  | 10.2  |  | Incentive Stock Option Agreement as amended of William E. Elliott dated
November 18, 1998                                                                            
|   
|   
|   
|   
|    |  | 10.3  |  | Executive Salary Continuation Agreement as amended of William E.
Elliott dated October 13, 1993                                                                      
|   
|   
|   
|   
|    |  | 10.4  |  | Split Dollar Agreements of William E. Elliott dated January 23, 2002                                                                                                 
|   
|   
|   
|   
|    |  | 10.5  |  | Incentive Stock Option Agreement as amended of Douglas N. Biddle dated
November 18, 1998                                                                             
|   
|   
|   
|   
|    |  | 10.6  |  | Executive Salary Continuation Agreement as amended of Douglas N. Biddle
dated June 2, 1994                                                                           
|   
|   
|   
|   
|    |  | 10.7  |  | Split Dollar Agreements of Douglas N. Biddle dated January 24, 2002                                                                                                  
|   
|   
|   
|   
|    |  | 10.8  |  | Incentive Stock Option Agreement as amended of Dennis C. Irvine dated
November 18, 1998                                                                              
|   
|   
|   
|   
|    |  | 10.9  |  | Executive Salary Continuation Agreement as amended of Dennis C. Irvine
dated June 2, 1994                                                                            
|   
|   
|   
|   
|    |  | 10.10 |  | Split Dollar Agreements of Dennis C. Irvine dated January 24, 2002                                                                                                   
|   
|   
|   
|   
|    |  | 10.11 |  | Incentive Stock Option Agreement as amended of Robert T. Herr dated
July 19, 2000                                                                                    
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|   
|   
|   
|    |  | 10.12 |  | Non-Qualified Stock Option Agreement as amended of Jerry V. Kehr dated
November 18, 1998                                                                             
|   
|   
|   
|   
|    |  | 10.13 |  | Deferred Fee Agreement as amended of Jerry V. Kehr dated August 19, 1998                                                                                             
|   
|   
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|   
|    |  | 10.14 |  | Amended and Restated Director Retirement Agreement of Jerry V. Kehr
dated                                                                                            

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##### Table of Contents



|    |  |       |  |                                                                                                                                                                                                                                                                                                   
|--- |  | ----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|   
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|   
|    |  |       |  | April 28, 2000                                                                                                                                                                                                                                                                                    
|   
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|    |  | 10.15 |  | Consulting Agreement of Jerry V. Kehr dated May 10, 2000                                                                                                                                                                                                                                          
|   
|   
|   
|   
|    |  | 10.16 |  | Non-Qualified Stock Option Agreement as amended of Daniel E. West dated
November 19, 1997                                                                                                                                                                                                         
|   
|   
|   
|   
|    |  | 10.17 |  | Non-Qualified Stock Option Agreement as amended of Daniel E. West dated
November 18, 1998                                                                                                                                                                                                         
|   
|   
|   
|   
|    |  | 10.18 |  | Amended and Restated Director Retirement Agreement of Daniel E. West
dated May 10, 2000                                                                                                                                                                                                           
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|   
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|    |  | 10.19 |  | Consulting Agreement of Daniel E. West dated May 10, 2000                                                                                                                                                                                                                                         
|   
|   
|   
|   
|    |  | 10.20 |  | Non-Qualified Stock Option Agreement as amended of Alvin G.
Blickenstaff dated November 18, 1998                                                                                                                                                                                                  
|   
|   
|   
|   
|    |  | 10.21 |  | Amended and Restated Director Retirement Agreement of Alvin G.
Blickenstaff dated April 19, 2000                                                                                                                                                                                                  
|   
|   
|   
|   
|    |  | 10.22 |  | Consulting Agreement of Alvin G. Blickenstaff dated May 8, 2000                                                                                                                                                                                                                                   
|   
|   
|   
|   
|    |  | 10.23 |  | Non-Qualified Stock Option Agreement as amended of Gerald W. Fletcher
dated November 18, 1998                                                                                                                                                                                                     
|   
|   
|   
|   
|    |  | 10.24 |  | Amended and Restated Director Retirement Agreement of Gerald W.
Fletcher dated May 10, 2000                                                                                                                                                                                                       
|   
|   
|   
|   
|    |  | 10.25 |  | Consulting Agreement of Gerald W. Fletcher dated May 10, 2000                                                                                                                                                                                                                                     
|   
|   
|   
|   
|    |  | 10.26 |  | Non-Qualified Stock Option Agreement as amended of Arthur C. Grohs
dated November 18, 1998                                                                                                                                                                                                        
|   
|   
|   
|   
|    |  | 10.27 |  | Amended and Restated Director Retirement Agreement of Arthur C. Grohs
dated May 9, 2000                                                                                                                                                                                                           
|   
|   
|   
|   
|    |  | 10.28 |  | Consulting Agreement of Arthur C. Grohs dated May 9, 2000                                                                                                                                                                                                                                         
|   
|   
|   
|   
|    |  | 10.29 |  | Non-Qualified Stock Option Agreement as amended of Christine McArthur
dated August 16, 2000                                                                                                                                                                                                       
|   
|   
|   
|   
|    |  | 10.30 |  | Amended and Restated Director Retirement Agreement of Christine
McArthur dated May 12, 2000                                                                                                                                                                                                       
|   
|   
|   
|   
|    |  | 10.31 |  | Consulting Agreement of Christine McArthur dated May 12, 2000                                                                                                                                                                                                                                     
|   
|   
|   
|   
|    |  | 10.32 |  | Non-Qualified Stock Option Agreement as amended of Terrance J. Reeson
dated November 18, 1998                                                                                                                                                                                                     
|   
|   
|   
|   
|    |  | 10.33 |  | Amended and Restated Director Retirement Agreement of Terrance J.
Reeson dated April 19, 2000                                                                                                                                                                                                     
|   
|   
|   
|   
|    |  | 10.34 |  | Consulting Agreement of Terrance J. Reeson dated May 10, 2000                                                                                                                                                                                                                                     
|   
|   
|   
|   
|    |  | 10.35 |  | Non-Qualified Stock Option Agreement as amended of Walter Sphar dated
November 18, 1998                                                                                                                                                                                                           
|   
|   
|   
|   
|    |  | 10.36 |  | Amended and Restated Director Retirement Agreement of Walter Sphar
dated April 20, 2000                                                                                                                                                                                                           
|   
|   
|   
|   
|    |  | 10.37 |  | Consulting Agreement of Walter Sphar dated May 9, 2000                                                                                                                                                                                                                                            
|   
|   
|   
|   
|    |  | 10.38 |  | Non-Qualified Stock Option Agreement as amended of Thomas Watson dated
November 21, 2001                                                                                                                                                                                                          
|   
|   
|   
|   
|    |  | 10.39 |  | Deferred Fee Agreement of Thomas Watson dated March 3, 2001                                                                                                                                                                                                                                       
|   
|   
|   
|   
|    |  | 10.40 |  | 1991 Stock Option Plan as amended                                                                                                                                                                                                                                                                 
|   
|   
|   
|   
|    |  | 10.41 |  | Form of Indemnification Agreement                                                                                                                                                                                                                                                                 
|   
|   
|   
|   
|    |  | 10.42 |  | 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                                                                                                                                                                             
|   
|   
|   
|   
|    |  | 11    |  | Computation of per share earnings appears in the attached 10-QSB under
Plumas Bancorp Notes to Consolidated Financial Statements as Footnote 4
 Earnings Per Share Computation                                                                                                                   
|   
|(b) |  |       |  | On July 17, 2002, the Company filed a Current Report on Form 8-K under
Item 5. The Current Report included as an exhibit, the press release,
dated July 17, 2002, filed by the Company containing unaudited
financial information and accompanying discussion for the quarter ended
June 30, 2002.

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##### Table of Contents






SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

|                       |  |                                                                                                                                                                                                                                                                                                                                                                                    
|---------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                       |  | Plumas Bancorp(Registrant)                                                                                                                                                                                                                                                                                                                                                         
|                      
|Date:  August 12, 2002 |  | I certify that this periodic report containing the issuers financial statements fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)) and that information contained in this periodic report fairly presents, in all material respects, the financial condition and results of operations of the issuer.
|                      
|                       |  | /s/ Douglas N. Biddle                                                                                                                                                                                                                                                                                                                                                              
|                       |  | Douglas N. Biddle, EVP & Chief Financial Officer                                                                                                                                                                                                                                                                                                                                   
|                      
|Date:  August 12, 2002 |  | I certify that this periodic report containing the issuers financial statements fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)) and that information contained in this periodic report fairly presents, in all material respects, the financial condition and results of operations of the issuer.
|                      
|                       |  | /s/ William E. Elliott                                                                                                                                                                                                                                                                                                                                                             
|                       |  | William E. Elliott, President & CEO                                                                                                                                                                                                                                                                                                                                                

15