##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 (Mark One)
 þ
    
    QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
 FOR THE QUARTERLY PERIOD ENDED June 30, 2009
 o
    
    TRANSITION REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934
 FOR THE TRANSITION PERIOD FROM  TO .
 COMMISSION FILE NUMBER: 000-49883
 PLUMAS BANCORP
  California
(State or Other Jurisdiction of Incorporation or 
Organization)
    
    75-2987096
(I.R.S. Employer Identification No.)35 S. Lindan Avenue, Quincy, California
(Address of Principal Executive Offices)
    
    95971
(Zip Code)
 (530) 283-7305
 þ o
 o o
  Large Accelerated Filer o
    
    Accelerated Filer o
    
    Non-Accelerated Filer o
    
    Smaller Reporting Company þ
 o þ




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TABLE OF CONTENTS  PART I  FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTSCONDENSED CONSOLIDATED BALANCE SHEETCONDENSED CONSOLIDATED STATEMENT OF INCOMECONDENSED CONSOLIDATED STATEMENT OF CASH FLOWSNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTSPART I  FINANCIAL INFORMATIONITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKITEM 4. CONTROLS AND PROCEDURESPART II  OTHER INFORMATIONITEM 1. LEGAL PROCEEDINGSITEM 1A RISK FACTORSITEM 2. UNREGISTERD SALES OF EQUITY SECURITIES AND USE OF PROCEEDSITEM 3. DEFAULTS UPON SENIOR SECURITIESITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSITEM 5. OTHER INFORMATIONITEM 6. EXHIBITSSIGNATURESEXHIBIT INDEXExhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2    Table of Contents  
 PART I  FINANCIAL INFORMATION
 
 ITEM 1. FINANCIAL STATEMENTS
 PLUMAS BANCORP
 
 CONDENSED CONSOLIDATED BALANCE SHEET
 (Unaudited)
  June 30,
    
    
    December 31,2009
    
    
    2008AssetsCash and due from banks
    
    $
    11,207
    
    
    $
    18,791Federal funds sold
    
    
    
    
    
    
    Cash and cash equivalents
    
    
    11,207
    
    
    
    18,791Investment securities (fair value of $54,996 at June 30, 2009 and
$38,606 at December 31, 2008)
    
    
    54,739
    
    
    
    38,374Loans, less allowance for loan losses of $9,882 at June 30, 2009
and $7,224 at December 31, 2008 (Notes 3 and 4)
    
    
    353,914
    
    
    
    359,072Premises and equipment, net
    
    
    15,193
    
    
    
    15,764Intangible assets, net
    
    
    735
    
    
    
    821Bank owned life insurance
    
    
    9,938
    
    
    
    9,766Real estate and vehicles acquired through foreclosure
    
    
    3,962
    
    
    
    4,277Accrued interest receivable and other assets
    
    
    13,332
    
    
    
    10,310Total assets
    
    $
    463,020
    
    
    $
    457,175Liabilities and Shareholders EquityDeposits:Non-interest bearing
    
    $
    106,059
    
    
    $
    112,783Interest bearing
    
    
    292,738
    
    
    
    258,710Total deposits
    
    
    398,797
    
    
    
    371,493Short-term borrowings
    
    
    5,000
    
    
    
    34,000Accrued interest payable and other liabilities
    
    
    6,131
    
    
    
    5,935Junior subordinated deferrable interest debentures
    
    
    10,310
    
    
    
    10,310Total liabilities
    
    
    420,238
    
    
    
    421,738Commitments and contingencies (Note 4)
    
    
    
    
    
    
    Shareholders equity:Serial preferred stock, no par value; 10,000,000 shares
authorized; 11,949 issued and outstanding at June 30, 2009
    
    
    11,552
    
    
    
    Common stock, no par value; 22,500,000 shares authorized; issued
and outstanding   4,776,339 shares at June 30, 2009 and
4,775,339 shares at December 31, 2008
    
    
    5,843
    
    
    
    5,302Retained earnings
    
    
    25,025
    
    
    
    29,818Accumulated other comprehensive income (Note 6)
    
    
    362
    
    
    
    317Total shareholders equity
    
    
    42,782
    
    
    
    35,437Total liabilities and shareholders equity
    
    $
    463,020
    
    
    $
    457,175
   2




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##### Table of Contents



PLUMAS BANCORP
 
 CONDENSED CONSOLIDATED STATEMENT OF INCOME
 (Unaudited)
  For the Three Months
    
    
    For the Six MonthsEnded June 30,
    
    
    Ended June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Interest Income:Interest and fees on loans
    
    $
    5,364
    
    
    $
    5,966
    
    
    $
    10,466
    
    
    $
    12,190Interest on investment securities:Taxable
    
    
    411
    
    
    
    358
    
    
    
    744
    
    
    
    769Exempt from Federal income taxes
    
    
    118
    
    
    
    128
    
    
    
    237
    
    
    
    255Interest on Federal funds sold
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    2Total interest income
    
    
    5,893
    
    
    
    6,453
    
    
    
    11,447
    
    
    
    13,216Interest Expense:Interest on deposits
    
    
    776
    
    
    
    1,124
    
    
    
    1,539
    
    
    
    2,670Interest on short-term borrowings
    
    
    18
    
    
    
    61
    
    
    
    35
    
    
    
    95Interest on junior subordinated deferrable interest debentures
    
    
    99
    
    
    
    138
    
    
    
    209
    
    
    
    329Other
    
    
    2
    
    
    
    6
    
    
    
    5
    
    
    
    10Total interest expense
    
    
    895
    
    
    
    1,329
    
    
    
    1,788
    
    
    
    3,104Net interest income before provision for loan losses
    
    
    4,998
    
    
    
    5,124
    
    
    
    9,659
    
    
    
    10,112Provision for Loan Losses
    
    
    5,850
    
    
    
    470
    
    
    
    8,750
    
    
    
    990Net interest income after provision for loan losses
    
    
    (852
    )
    
    
    4,654
    
    
    
    909
    
    
    
    9,122Non-Interest Income:Service charges
    
    
    947
    
    
    
    969
    
    
    
    1,853
    
    
    
    1,922Earnings on Bank owned life insurance policies
    
    
    108
    
    
    
    104
    
    
    
    215
    
    
    
    207Other
    
    
    144
    
    
    
    332
    
    
    
    297
    
    
    
    626Total non-interest income
    
    
    1,199
    
    
    
    1,405
    
    
    
    2,365
    
    
    
    2,755Non-Interest Expenses:Salaries and employee benefits
    
    
    2,710
    
    
    
    2,710
    
    
    
    5,590
    
    
    
    5,466Occupancy and equipment
    
    
    936
    
    
    
    975
    
    
    
    1,933
    
    
    
    1,934Other
    
    
    2,271
    
    
    
    1,308
    
    
    
    3,634
    
    
    
    2,553Total non-interest expenses
    
    
    5,917
    
    
    
    4,993
    
    
    
    11,157
    
    
    
    9,953Income (loss) before provision for income taxes
    
    
    (5,570
    )
    
    
    1,066
    
    
    
    (7,883
    )
    
    
    1,924Provision (Benefit) for Income Taxes
    
    
    (2,339
    )
    
    
    369
    
    
    
    (3,376
    )
    
    
    651Net income (loss)
    
    $
    (3,231
    )
    
    $
    697
    
    
    $
    (4,507
    )
    
    $
    1,273Preferred Stock Dividends and Discount Accretion
    
    
    (171
    )
    
    
    
    
    
    
    (287
    )
    
    
    Net income (loss) available to common shareholders
    
    $
    (3,402
    )
    
    $
    697
    
    
    $
    (4,794
    )
    
    $
    1,273Basic earnings (loss) per share (Note 5)
    
    $
    (0.71
    )
    
    $
    0.14
    
    
    $
    (1.00
    )
    
    $
    0.26Diluted earnings (loss) per share (Note 5)
    
    $
    (0.71
    )
    
    $
    0.14
    
    
    $
    (1.00
    )
    
    $
    0.26Common dividends per share
    
    $
    
    
    
    $
    0.16
    
    
    $
    
    
    
    $
    0.16
   3




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PLUMAS BANCORP
 
 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
 (Unaudited)
  For the Six MonthsEnded June 30,2009
    
    
    2008Cash Flows from Operating Activities:Net income (loss)
    
    $
    (4,507
    )
    
    $
    1,273Adjustments to reconcile net income to net cash provided by operating activities:Provision for loan losses
    
    
    8,750
    
    
    
    990Change in deferred loan origination costs/fees, net
    
    
    (9
    )
    
    
    164Depreciation and amortization
    
    
    1,000
    
    
    
    1,014Stock-based compensation expense
    
    
    129
    
    
    
    144Amortization of investment security premiums
    
    
    85
    
    
    
    32Accretion of investment security discounts
    
    
    (30
    )
    
    
    (32
    )Net gain on disposal/sale of premises and equipment
    
    
    
    
    
    
    7Net loss on sale of vehicles owned
    
    
    37
    
    
    
    11Earnings on Bank owned life insurance policies
    
    
    (172
    )
    
    
    (166
    )Net loss on sale of real estate
    
    
    104
    
    
    
    Provision for losses on other real estate
    
    
    356
    
    
    
    39(Increase) decrease in accrued interest receivable and other assets
    
    
    (3,340
    )
    
    
    178Increase (decrease) in accrued interest payable and other liabilities
    
    
    119
    
    
    
    (291
    )Net cash provided by operating activities
    
    
    2,522
    
    
    
    3,363Cash Flows from Investing Activities:Proceeds from matured and called available-for-sale investment securities
    
    
    7,000
    
    
    
    7,975Proceeds from matured and called held-to-maturity investment securities
    
    
    250
    
    
    
    Purchases of available-for-sale investment securities
    
    
    (27,212
    )
    
    
    (993
    )Proceeds from principal repayments from available-for-sale
government-guaranteed mortgage-backed securities
    
    
    3,618
    
    
    
    1,499Net increase in loans
    
    
    (4,655
    )
    
    
    (6,509
    )Proceeds from sale of other vehicles
    
    
    180
    
    
    
    217Proceeds from sale of other real estate
    
    
    855
    
    
    
    Purchase of premises and equipment
    
    
    (201
    )
    
    
    (1,526
    )Net cash (used in) provided by investing activities
    
    
    (20,165
    )
    
    
    663
   4




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PLUMAS BANCORP
 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
 (Unaudited)
 For the Six MonthsEnded June 30,2009
    
    
    2008Cash Flows from Financing Activities:Net increase in demand, interest bearing and savings deposits
    
    $
    23,078
    
    
    $
    3,154Net increase (decrease) increase in time deposits
    
    
    4,226
    
    
    
    (20,065
    )Net (decrease) increase in short-term borrowings
    
    
    (29,000
    )
    
    
    17,000Net proceeds from exercise of stock options
    
    
    5
    
    
    
    21Payment of cash dividends on common stock
    
    
    
    
    
    
    (770
    )Payment of cash dividends on preferred stock
    
    
    (174
    )
    
    
    Issuance of preferred stock, net of discount
    
    
    11,517
    
    
    
    Issuance of common stock warrant
    
    
    407
    
    
    
    Repurchase and retirement of common stock
    
    
    
    
    
    
    (670
    )Net cash provided by (used in) financing activities
    
    
    10,059
    
    
    
    (1,330
    )(Decrease) increase in cash and cash equivalents
    
    
    (7,584
    )
    
    
    2,696Cash and Cash Equivalents at Beginning of Year
    
    
    18,791
    
    
    
    13,207Cash and Cash Equivalents at End of Period
    
    $
    11,207
    
    
    $
    15,903Supplemental Disclosure of Cash Flow Information:Cash paid during the period for:Interest expense
    
    $
    1,820
    
    
    $
    3,434Income taxes
    
    $
    65
    
    
    $
    975Non-Cash Investing Activities:Real estate and vehicles acquired through foreclosure
    
    $
    1,072
    
    
    $
    2,155Net change in unrealized loss on available-for-sale securities
    
    $
    45
    
    
    $
    73
   5




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




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3. LOANS
  June 30,
    
    
    December 31,2009
    
    
    2008Commercial
    
    $
    44,504
    
    
    $
    42,528Agricultural
    
    
    41,905
    
    
    
    36,020Real estate  mortgage
    
    
    152,400
    
    
    
    151,943Real estate  construction and land development
    
    
    66,466
    
    
    
    73,820Consumer
    
    
    58,233
    
    
    
    61,706363,508
    
    
    
    366,017Deferred loan costs, net
    
    
    288
    
    
    
    279Allowance for loan losses
    
    
    (9,882
    )
    
    
    (7,224
    )$
    353,914
    
    
    $
    359,072
  June 30,
    
    
    December 31,2009
    
    
    2008Balance, beginning of year
    
    $
    7,224
    
    
    $
    4,211Provision charged to operations
    
    
    8,750
    
    
    
    4,600Losses charged to allowance
    
    
    (6,241
    )
    
    
    (1,783
    )Recoveries
    
    
    149
    
    
    
    196Balance, end of period
    
    $
    9,882
    
    
    $
    7,224
  4. COMMITMENTS AND CONTINGENCIES
      7




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5. EARNINGS PER SHARE
  For the Three Months
    
    
    For the Six MonthsEnded June 30,
    
    
    Ended June 30,(In thousands, except per share data)
    
    2009
    
    
    2008
    
    
    2009
    
    
    2008Net Income (loss):Net income (loss)
    
    $
    (3,231
    )
    
    $
    697
    
    
    $
    (4,507
    )
    
    $
    1,273Dividends accrued and discount accreted on
preferred shares
    
    
    (171
    )
    
    
    
    
    
    
    (287
    )
    
    
    Net income (loss) available to common shareholders
    
    $
    (3,402
    )
    
    $
    697
    
    
    $
    (4,794
    )
    
    $
    1,273Earnings Per Share:Basic earnings per share
    
    $
    (0.71
    )
    
    $
    0.14
    
    
    $
    (1.00
    )
    
    $
    0.26Diluted earnings per share
    
    $
    (0.71
    )
    
    $
    0.14
    
    
    $
    (1.00
    )
    
    $
    0.26Weighted Average Number of Shares Outstanding:Basic shares
    
    
    4,776
    
    
    
    4,822
    
    
    
    4,776
    
    
    
    4,841Diluted shares
    
    
    4,776
    
    
    
    4,849
    
    
    
    4,776
    
    
    
    4,868
  6. COMPREHENSIVE INCOME
    7. STOCK-BASED COMPENSATION
   8




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WeightedAverageWeighted
    
    
    RemainingAverage
    
    
    ContractualExercise
    
    
    Term
    
    
    Intrinsic ValueShares
    
    
    Price
    
    
    (in years)
    
    
    (in thousands)Options outstanding at December 31, 2008
    
    
    466,956
    
    
    $
    13.38Options granted
    
    
    
    
    
    
    Options exercised
    
    
    (1,000
    )
    
    
    5.43Options cancelled
    
    
    (61,990
    )
    
    
    12.38Options outstanding at June 30, 2009
    
    
    403,966
    
    
    $
    13.56
    
    
    
    5.2
    
    
    $
    Options exercisable at June 30, 2009
    
    
    261,031
    
    
    $
    13.06
    
    
    
    4.7
    
    
    $
    Expected to vest after June 30, 2009
    
    
    134,277
    
    
    $
    14.46
    
    
    
    6.1
    
    
    $
    
   8. INCOME TAXES
     9




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9. FAIR VALUE MEASUREMENT
   June 30, 2009
    
    
    December 31, 2008Carrying
    
    
    Fair
    
    
    Carrying
    
    
    FairAmount
    
    
    Value
    
    
    Amount
    
    
    ValueFinancial assets:Cash and cash equivalents
    
    $
    11,207,000
    
    
    $
    11,207,000
    
    
    $
    18,791,000
    
    
    $
    18,791,000Investment securities
    
    
    54,739,000
    
    
    
    54,996,000
    
    
    
    38,374,000
    
    
    
    38,606,000Loans
    
    
    353,914,000
    
    
    
    365,098,000
    
    
    
    359,072,000
    
    
    
    363,811,000Cash surrender value of life
insurance policies
    
    
    9,938,000
    
    
    
    9,938,000
    
    
    
    9,766,000
    
    
    
    9,766,000Accrued interest receivable
    
    
    2,212,000
    
    
    
    2,212,000
    
    
    
    2,063,000
    
    
    
    2,063,000Financial liabilities:Deposits
    
    $
    398,797,000
    
    
    $
    398,986,000
    
    
    $
    371,493,000
    
    
    $
    371,761,000Short-term borrowings
    
    
    5,000,000
    
    
    
    5,000,000
    
    
    
    34,000,000
    
    
    
    34,000,000Junior subordinated deferrable
interest debentures
    
    
    10,310,000
    
    
    
    2,649,000
    
    
    
    10,310,000
    
    
    
    2,420,000Accrued interest payable
    
    
    456,000
    
    
    
    456,000
    
    
    
    487,000
    
    
    
    487,000
       10




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11




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Fair Value Measurements at June 30, 2009 UsingQuoted Prices inActive Markets for
    
    
    Significant Other
    
    
    SignificantIdentical Assets
    
    
    Observable Inputs
    
    
    Unobservable InputsTotal Fair Value
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Available-for-
sale securities
    
    $
    42,421,000
    
    
    $
    19,383,000
    
    
    $
    23,038,000
    
    
    $
    
   Fair Value Measurements at June 30, 2009 UsingQuoted Prices inActive Markets for
    
    
    Significant Other
    
    
    SignificantIdentical Assets
    
    
    Observable Inputs
    
    
    Unobservable InputsTotal Fair Value
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Impaired loans
    
    $
    20,504,000
    
    
    $
    
    
    
    $
    20,504,000
    
    
    $
    Other real
estate owned
    
    
    3,896,000
    
    
    
    
    
    
    
    3,896,000
    
    
    
    $
    24,400,000
    
    
    $
    
    
    
    $
    24,400,000
    
    
    $
    
    12




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10. RECENT ACCOUNTING DEVELOPMENTS
  Determining Fair Value When the Volume and Level of Activity for the Asset or
Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly
 Interim Disclosures about Fair Value of Financial Instruments
 Recognition and Presentation of Other-Than-Temporary Impairments
 Subsequent Events
 Accounting for Transfers of Financial Assets Amendments to FASB Interpretation No. 46(R)
  Consolidation of Variable Interest
Entities
  13




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The TM and the Hierarchy of Generally Accepted
Accounting Principles  a replacement of FASB Statement No. 162 (SFAS 168) FASB Accounting Standards Codification TM
 
 PART I  FINANCIAL INFORMATION
 
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
   INTRODUCTION
    14




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CASH DIVIDEND
  CRITICAL ACCOUNTING POLICIES
  OVERVIEW
     RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2009
 Net interest income before provision for loan losses.
  15




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For the Six Months Ended June 30, 2009
    
    
    For the Six Months Ended June 30, 2008Average Balance
    
    
    Interest
    
    
    Yield/
    
    
    Average Balance
    
    
    Interest
    
    
    Yield/(in thousands)
    
    
    (in thousands)
    
    
    Rate
    
    
    (in thousands)
    
    
    (in thousands)
    
    
    RateInterest-earning assets:Loans (1) (2)
    
    $
    362,547
    
    
    $
    10,466
    
    
    
    5.82
    %
    
    $
    351,450
    
    
    $
    12,190
    
    
    
    6.98
    %Investment securities (1)
    
    
    51,809
    
    
    
    981
    
    
    
    3.82
    %
    
    
    50,779
    
    
    
    1,024
    
    
    
    4.06
    %Federal funds sold
    
    
    25
    
    
    
    
    
    
    
    2.05
    %
    
    
    164
    
    
    
    2
    
    
    
    2.45
    %Total interest-earning assets
    
    
    414,381
    
    
    
    11,447
    
    
    
    5.57
    %
    
    
    402,393
    
    
    
    13,216
    
    
    
    6.60
    %Cash and due from banks
    
    
    21,870
    
    
    
    
    
    
    
    
    
    
    
    11,947Other assets
    
    
    33,094
    
    
    
    
    
    
    
    
    
    
    
    31,842Total assets
    
    $
    469,345
    
    
    
    
    
    
    
    
    
    
    $
    446,182Interest-bearing liabilities:NOW deposits
    
    $
    84,927
    
    
    
    269
    
    
    
    0.64
    %
    
    $
    74,518
    
    
    
    323
    
    
    
    0.87
    %Money market deposits
    
    
    41,219
    
    
    
    177
    
    
    
    0.87
    %
    
    
    36,037
    
    
    
    137
    
    
    
    0.76
    %Savings deposits
    
    
    50,101
    
    
    
    46
    
    
    
    0.19
    %
    
    
    47,404
    
    
    
    83
    
    
    
    0.35
    %Time deposits
    
    
    99,606
    
    
    
    1,047
    
    
    
    2.12
    %
    
    
    118,912
    
    
    
    2,127
    
    
    
    3.60
    %Total deposits
    
    
    275,853
    
    
    
    1,539
    
    
    
    1.13
    %
    
    
    276,871
    
    
    
    2,670
    
    
    
    1.94
    %Short-term borrowings
    
    
    27,609
    
    
    
    35
    
    
    
    0.26
    %
    
    
    7,633
    
    
    
    95
    
    
    
    2.50
    %Other interest-bearing liabilities
    
    
    218
    
    
    
    5
    
    
    
    4.62
    %
    
    
    309
    
    
    
    10
    
    
    
    6.51
    %Junior subordinated debentures
    
    
    10,310
    
    
    
    209
    
    
    
    4.09
    %
    
    
    10,310
    
    
    
    329
    
    
    
    6.42
    %Total interest-bearing liabilities
    
    
    313,990
    
    
    
    1,788
    
    
    
    1.15
    %
    
    
    295,123
    
    
    
    3,104
    
    
    
    2.12
    %Non-interest bearing deposits
    
    
    104,811
    
    
    
    
    
    
    
    
    
    
    
    108,142Other liabilities
    
    
    5,427
    
    
    
    
    
    
    
    
    
    
    
    5,570Shareholders equity
    
    
    45,117
    
    
    
    
    
    
    
    
    
    
    
    37,347Total liabilities & equity
    
    $
    469,345
    
    
    
    
    
    
    
    
    
    
    $
    446,182Cost of funding interest-earning assets (3)
    
    
    
    
    
    
    
    
    
    
    0.87
    %
    
    
    
    
    
    
    
    
    
    
    1.55
    %Net interest income and margin (4)
    
    
    
    
    
    $
    9,659
    
    
    
    4.70
    %
    
    
    
    
    
    $
    10,112
    
    
    
    5.05
    %
 
 (1)
    
    Not computed on a tax-equivalent basis.(2)
    
    Net loan costs included in loan interest income for the six-month periods ended June 30, 2009
and 2008 were $85 thousand and $151 thousand, respectively.(3)
    
    Total annualized interest expense divided by the average balance of total earning assets.(4)
    
    Annualized net interest income divided by the average balance of total earning assets.  17




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##### Table of Contents



2009 over 2008 change in net interest incomefor the six months ended June 30(in thousands)Volume (1)
    
    
    Rate (2)
    
    
    Mix (3)
    
    
    TotalInterest-earning assets:Loans
    
    $
    384
    
    
    $
    (2,011
    )
    
    $
    (97
    )
    
    $
    (1,724
    )Investment securities
    
    
    21
    
    
    
    (60
    )
    
    
    (4
    )
    
    
    (43
    )Federal funds sold
    
    
    (2
    )
    
    
    
    
    
    
    
    
    
    
    (2
    )Total interest income
    
    
    403
    
    
    
    (2,071
    )
    
    
    (101
    )
    
    
    (1,769
    )Interest-bearing liabilities:NOW deposits
    
    
    45
    
    
    
    (86
    )
    
    
    (13
    )
    
    
    (54
    )Money market deposits
    
    
    20
    
    
    
    18
    
    
    
    2
    
    
    
    40Savings deposits
    
    
    5
    
    
    
    (39
    )
    
    
    (3
    )
    
    
    (37
    )Time deposits
    
    
    (344
    )
    
    
    (871
    )
    
    
    135
    
    
    
    (1,080
    )Short-term borrowings
    
    
    248
    
    
    
    (85
    )
    
    
    (223
    )
    
    
    (60
    )Other interest-bearing liabilities
    
    
    (3
    )
    
    
    (3
    )
    
    
    1
    
    
    
    (5
    )Junior subordinated debentures
    
    
    
    
    
    
    (120
    )
    
    
    
    
    
    
    (120
    )Total interest expense
    
    
    (29
    )
    
    
    (1,186
    )
    
    
    (101
    )
    
    
    (1,316
    )Net interest income
    
    $
    432
    
    
    $
    (885
    )
    
    $
    
    
    
    $
    (453
    )
 
 (1)
    
    The volume change in net interest income represents the change in average balance divided by
the previous years rate.(2)
    
    The rate change in net interest income represents the change in rate multiplied by the previous
years average balance.(3)
    
    The mix change in net interest income represents the change in average balance multiplied by
the change in rate. Provision for loan losses.
   18




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##### Table of Contents



Non-interest income.
   19




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##### Table of Contents



For the Six MonthsEnded June 30,
    
    
    Dollar
    
    
    Percentage2009
    
    
    2008
    
    
    Change
    
    
    ChangeService charges on deposit accounts
    
    $
    1,853
    
    
    $
    1,922
    
    
    $
    (69
    )
    
    
    -3.6
    %Earnings on life insurance policies
    
    
    215
    
    
    
    207
    
    
    
    8
    
    
    
    3.9
    %Merchant processing income
    
    
    112
    
    
    
    125
    
    
    
    (13
    )
    
    
    -10.4
    %Customer service fees
    
    
    59
    
    
    
    57
    
    
    
    2
    
    
    
    3.5
    %Investment services income
    
    
    47
    
    
    
    78
    
    
    
    (31
    )
    
    
    -39.7
    %Safe deposit box and night depository income
    
    
    34
    
    
    
    34
    
    
    
    
    
    
    
    
    %Official check fees
    
    
    10
    
    
    
    63
    
    
    
    (53
    )
    
    
    -84.1
    %Gain on sale of loans
    
    
    10
    
    
    
    79
    
    
    
    (69
    )
    
    
    -87.3
    %Federal Home Loan Bank dividends
    
    
    
    
    
    
    57
    
    
    
    (57
    )
    
    
    -100.0
    %Loss on sale of real estate and vehicles
    
    
    (141
    )
    
    
    (11
    )
    
    
    (130
    )
    
    
    -1,181.8
    %Other
    
    
    166
    
    
    
    144
    
    
    
    22
    
    
    
    15.3
    %Total non-interest income
    
    $
    2,365
    
    
    $
    2,755
    
    
    $
    (390
    )
    
    
    -14.2
    %
 Non-interest expenses.
     20




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##### Table of Contents



For the Six MonthsEnded June 30,
    
    
    Dollar
    
    
    Percentage2009
    
    
    2008
    
    
    Change
    
    
    ChangeSalaries and employee benefits
    
    $
    5,590
    
    
    $
    5,466
    
    
    $
    124
    
    
    
    2.3
    %Occupancy and equipment
    
    
    1,933
    
    
    
    1,934
    
    
    
    (1
    )
    
    
    -0.1
    %FDIC insurance and assessments
    
    
    669
    
    
    
    115
    
    
    
    554
    
    
    
    481.7
    %Professional fees
    
    
    424
    
    
    
    307
    
    
    
    117
    
    
    
    38.1
    %Outside service fees
    
    
    396
    
    
    
    348
    
    
    
    48
    
    
    
    13.8
    %Provision for OREO losses
    
    
    356
    
    
    
    39
    
    
    
    317
    
    
    
    812.8
    %Loan and collection expenses
    
    
    287
    
    
    
    165
    
    
    
    122
    
    
    
    73.9
    %Telephone and data communication
    
    
    201
    
    
    
    198
    
    
    
    3
    
    
    
    1.5
    %Advertising and shareholder relations
    
    
    173
    
    
    
    227
    
    
    
    (54
    )
    
    
    -23.8
    %Business development
    
    
    170
    
    
    
    237
    
    
    
    (67
    )
    
    
    -28.3
    %Director compensation
    
    
    148
    
    
    
    175
    
    
    
    (27
    )
    
    
    -15.4
    %Armored car and courier
    
    
    137
    
    
    
    142
    
    
    
    (5
    )
    
    
    -3.5
    %Postage
    
    
    107
    
    
    
    120
    
    
    
    (13
    )
    
    
    -10.8
    %Stationery and supplies
    
    
    101
    
    
    
    116
    
    
    
    (15
    )
    
    
    -12.9
    %Deposit premium amortization
    
    
    87
    
    
    
    129
    
    
    
    (42
    )
    
    
    -32.6
    %Insurance
    
    
    29
    
    
    
    116
    
    
    
    (87
    )
    
    
    -75.0
    %Other
    
    
    349
    
    
    
    119
    
    
    
    230
    
    
    
    193.3
    %Total non-interest expense
    
    $
    11,157
    
    
    $
    9,953
    
    
    $
    1,204
    
    
    
    12.1
    %
 Provision for income taxes.
 RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2009
 Net Income (loss).
   21




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##### Table of Contents



Net interest income before provision for loan losses.
      22




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##### Table of Contents



For the Three Months Ended June 30, 2009
    
    
    For the Three Months Ended June 30, 2008Average Balance
    
    
    Interest
    
    
    Yield/
    
    
    Average Balance
    
    
    Interest
    
    
    Yield/(in thousands)
    
    
    (in thousands)
    
    
    Rate
    
    
    (in thousands)
    
    
    (in thousands)
    
    
    RateInterest-earning assets:Loans (1) (2)
    
    $
    362,655
    
    
    $
    5,364
    
    
    
    5.93
    %
    
    $
    351,679
    
    
    $
    5,966
    
    
    
    6.82
    %Investment securities (1)
    
    
    57,715
    
    
    
    529
    
    
    
    3.68
    %
    
    
    48,471
    
    
    
    486
    
    
    
    4.03
    %Federal funds sold
    
    
    6
    
    
    
    
    
    
    
    0.80
    %
    
    
    150
    
    
    
    1
    
    
    
    2.68
    %Total interest-earning assets
    
    
    420,376
    
    
    
    5,893
    
    
    
    5.62
    %
    
    
    400,300
    
    
    
    6,453
    
    
    
    6.48
    %Cash and due from banks
    
    
    26,128
    
    
    
    
    
    
    
    
    
    
    
    12,179Other assets
    
    
    32,440
    
    
    
    
    
    
    
    
    
    
    
    32,016Total assets
    
    $
    478,944
    
    
    
    
    
    
    
    
    
    
    $
    444,495Interest-bearing liabilities:NOW deposits
    
    $
    91,424
    
    
    
    160
    
    
    
    0.70
    %
    
    $
    75,759
    
    
    
    136
    
    
    
    0.72
    %Money market deposits
    
    
    41,562
    
    
    
    91
    
    
    
    0.88
    %
    
    
    35,544
    
    
    
    68
    
    
    
    0.77
    %Savings deposits
    
    
    50,473
    
    
    
    24
    
    
    
    0.19
    %
    
    
    48,130
    
    
    
    40
    
    
    
    0.33
    %Time deposits
    
    
    100,711
    
    
    
    501
    
    
    
    2.00
    %
    
    
    112,521
    
    
    
    880
    
    
    
    3.15
    %Total deposits
    
    
    284,170
    
    
    
    776
    
    
    
    1.10
    %
    
    
    271,954
    
    
    
    1,124
    
    
    
    1.66
    %Short-term borrowings
    
    
    28,743
    
    
    
    18
    
    
    
    0.25
    %
    
    
    11,209
    
    
    
    61
    
    
    
    2.19
    %Other interest-bearing liabilities
    
    
    214
    
    
    
    2
    
    
    
    3.74
    %
    
    
    309
    
    
    
    6
    
    
    
    7.81
    %Junior subordinated debentures
    
    
    10,310
    
    
    
    99
    
    
    
    3.85
    %
    
    
    10,310
    
    
    
    138
    
    
    
    5.38
    %Total interest-bearing liabilities
    
    
    323,437
    
    
    
    895
    
    
    
    1.11
    %
    
    
    293,782
    
    
    
    1,329
    
    
    
    1.82
    %Non-interest bearing deposits
    
    
    103,727
    
    
    
    
    
    
    
    
    
    
    
    108,094Other liabilities
    
    
    5,474
    
    
    
    
    
    
    
    
    
    
    
    5,400Shareholders equity
    
    
    46,306
    
    
    
    
    
    
    
    
    
    
    
    37,219Total liabilities & equity
    
    $
    478,944
    
    
    
    
    
    
    
    
    
    
    $
    444,495Cost of funding interest-earning assets (3)
    
    
    
    
    
    
    
    
    
    
    0.85
    %
    
    
    
    
    
    
    
    
    
    
    1.33
    %Net interest income and margin (4)
    
    
    
    
    
    $
    4,998
    
    
    
    4.77
    %
    
    
    
    
    
    $
    5,124
    
    
    
    5.15
    %
 
 (1)
    
    Not computed on a tax-equivalent basis.(2)
    
    Net loan costs included in loan interest income for the three-month periods ended June 30,
2009 and 2008 were $20 thousand and $74 thousand, respectively.(3)
    
    Total interest expense divided by the average balance of total earning assets.(4)
    
    Net interest income divided by the average balance of total earning assets.  23




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##### Table of Contents



2009 over 2008 change in net interest incomefor the three months ended June 30(in thousands)Volume (1)
    
    
    Rate (2)
    
    
    Mix (3)
    
    
    TotalInterest-earning assets:Loans
    
    $
    187
    
    
    $
    (781
    )
    
    $
    (8
    )
    
    $
    (602
    )Investment securities
    
    
    93
    
    
    
    (43
    )
    
    
    (7
    )
    
    
    43Federal funds sold
    
    
    (1
    )
    
    
    (1
    )
    
    
    1
    
    
    
    (1
    )Total interest income
    
    
    279
    
    
    
    (825
    )
    
    
    (14
    )
    
    
    (560
    )Interest-bearing liabilities:NOW deposits
    
    
    28
    
    
    
    (4
    )
    
    
    
    
    
    
    24Money market deposits
    
    
    12
    
    
    
    10
    
    
    
    1
    
    
    
    23Savings deposits
    
    
    2
    
    
    
    (17
    )
    
    
    (1
    )
    
    
    (16
    )Time deposits
    
    
    (93
    )
    
    
    (322
    )
    
    
    36
    
    
    
    (379
    )Short-term borrowings
    
    
    96
    
    
    
    (54
    )
    
    
    (85
    )
    
    
    (43
    )Other interest-bearing liabilities
    
    
    (2
    )
    
    
    (3
    )
    
    
    1
    
    
    
    (4
    )Junior subordinated debentures
    
    
    
    
    
    
    (39
    )
    
    
    
    
    
    
    (39
    )Total interest expense
    
    
    43
    
    
    
    (429
    )
    
    
    (48
    )
    
    
    (434
    )Net interest income
    
    $
    236
    
    
    $
    (396
    )
    
    $
    34
    
    
    $
    (126
    )
 
 (1)
    
    The volume change in net interest income represents the change in average balance divided by
the previous years rate.(2)
    
    The rate change in net interest income represents the change in rate divided by the previous
years average balance.(3)
    
    The mix change in net interest income represents the change in average balance multiplied by
the change in rate. Provision for loan losses.
 Non-interest income.
  24




---



##### Table of Contents



For the Three MonthsEnded June 30,
    
    
    Dollar
    
    
    Percentage2009
    
    
    2008
    
    
    Change
    
    
    ChangeService charges on deposit accounts
    
    $
    947
    
    
    $
    969
    
    
    $
    (22
    )
    
    
    -2.3
    %Earnings on life insurance policies
    
    
    108
    
    
    
    104
    
    
    
    4
    
    
    
    3.8
    %Merchant processing income
    
    
    61
    
    
    
    62
    
    
    
    (1
    )
    
    
    -1.6
    %Customer service fees
    
    
    31
    
    
    
    28
    
    
    
    3
    
    
    
    10.7
    %Investment services income
    
    
    17
    
    
    
    43
    
    
    
    (26
    )
    
    
    -60.5
    %Safe deposit box and night depository income
    
    
    17
    
    
    
    17
    
    
    
    
    
    
    
    
    %Official check fees
    
    
    5
    
    
    
    25
    
    
    
    (20
    )
    
    
    -80.0
    %Federal Home Loan Bank dividends
    
    
    
    
    
    
    29
    
    
    
    (29
    )
    
    
    -100
    %Gain on sale of loans
    
    
    
    
    
    
    61
    
    
    
    (61
    )
    
    
    -100
    %Loss on sale of real estate and vehicles
    
    
    (77
    )
    
    
    (11
    )
    
    
    (66
    )
    
    
    -600
    %Other
    
    
    90
    
    
    
    78
    
    
    
    12
    
    
    
    15.4
    %Total non-interest income
    
    $
    1,199
    
    
    $
    1,405
    
    
    $
    (206
    )
    
    
    -14.7
    %
 Non-interest expenses.
   25




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##### Table of Contents



For the Three MonthsEnded June 30,
    
    
    Dollar
    
    
    Percentage2009
    
    
    2008
    
    
    Change
    
    
    ChangeSalaries and employee benefits
    
    $
    2,710
    
    
    $
    2,710
    
    
    $
    
    
    
    
    
    %Occupancy and equipment
    
    
    936
    
    
    
    975
    
    
    
    (39
    )
    
    
    -4.0
    %FDIC insurance and assessments
    
    
    523
    
    
    
    103
    
    
    
    420
    
    
    
    407.8
    %Professional fees
    
    
    256
    
    
    
    144
    
    
    
    112
    
    
    
    77.8
    %Provision for OREO losses
    
    
    215
    
    
    
    15
    
    
    
    200
    
    
    
    1,333.3
    %Outside service fees
    
    
    197
    
    
    
    178
    
    
    
    19
    
    
    
    10.7
    %Loan and collection expenses
    
    
    160
    
    
    
    99
    
    
    
    61
    
    
    
    61.6
    %Business development
    
    
    96
    
    
    
    96
    
    
    
    
    
    
    
    
    %Telephone and data communication
    
    
    96
    
    
    
    96
    
    
    
    
    
    
    
    
    %Advertising and shareholder relations
    
    
    95
    
    
    
    123
    
    
    
    (28
    )
    
    
    -22.8
    %Director compensation
    
    
    73
    
    
    
    83
    
    
    
    (10
    )
    
    
    -12.0
    %Armored car and courier
    
    
    70
    
    
    
    74
    
    
    
    (4
    )
    
    
    -5.4
    %Insurance
    
    
    56
    
    
    
    59
    
    
    
    (3
    )
    
    
    -5.1
    %Stationery and supplies
    
    
    50
    
    
    
    58
    
    
    
    (8
    )
    
    
    -13.8
    %Postage
    
    
    49
    
    
    
    62
    
    
    
    (13
    )
    
    
    -21.0
    %Deposit premium amortization
    
    
    44
    
    
    
    54
    
    
    
    (10
    )
    
    
    -18.5
    %Other
    
    
    291
    
    
    
    64
    
    
    
    227
    
    
    
    354.7
    %Total non-interest expense
    
    $
    5,917
    
    
    $
    4,993
    
    
    $
    924
    
    
    
    18.5
    %
 Provision for income taxes.
 FINANCIAL CONDITION
 Fair value. Fair Value Measurements,
 Notes to Condensed Consolidated Financial Statements
 Loan portfolio composition.
  26




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##### Table of Contents



Nonperforming loans.
       27




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##### Table of Contents



Nonperforming assets.
 Analysis of allowance for loan losses.
   For the Six MonthsEnded June 30,(in thousands)2009
    
    
    2008Balance at January 1,
    
    $
    7,224
    
    
    $
    4,211Charge-offs:Commercial and agricultural
    
    
    (362
    )
    
    
    (128
    )Real estate mortgage
    
    
    (774
    )
    
    
    (68
    )Real estate construction
    
    
    (4,780
    )
    
    
    (423
    )Consumer
    
    
    (325
    )
    
    
    (216
    )Total charge-offs
    
    
    (6,241
    )
    
    
    (835
    )Recoveries:Commercial and agricultural
    
    
    10
    
    
    
    7Real estate mortgage
    
    
    
    
    
    
    Real estate construction
    
    
    
    
    
    
    Consumer
    
    
    139
    
    
    
    82Total recoveries
    
    
    149
    
    
    
    89Net charge-offs
    
    
    (6,092
    )
    
    
    (746
    )Provision for loan losses
    
    
    8,750
    
    
    
    990Balance at June 30,
    
    $
    9,882
    
    
    $
    4,455Net charge-offs during the six-month period to
average loans
    
    
    1.68
    %
    
    
    0.21
    %Allowance for loan losses to total loans
    
    
    2.72
    %
    
    
    1.25
    %
 Investment securities.
  28




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##### Table of Contents



Premises and equipment. ,
 Deposits.
  Short-term borrowing arrangements.
  CAPITAL RESOURCES
    29




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30




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##### Table of Contents



June 30, 2009
    
    
    December 31, 2008Amount
    
    
    Ratio
    
    
    Amount
    
    
    RatioTier 1 Leverage RatioPlumas Bancorp and Subsidiary
    
    $
    51,271
    
    
    
    10.7
    %
    
    $
    43,885
    
    
    
    9.8
    %Minimum regulatory requirement
    
    
    19,079
    
    
    
    4.0
    %
    
    
    17,907
    
    
    
    4.0
    %Plumas Bank
    
    
    47,484
    
    
    
    10.0
    %
    
    
    43,372
    
    
    
    9.7
    %Minimum requirement for
Well-Capitalized institution
under the prompt corrective
action plan
    
    
    23,832
    
    
    
    5.0
    %
    
    
    22,365
    
    
    
    5.0
    %Minimum regulatory requirement
    
    
    19,066
    
    
    
    4.0
    %
    
    
    17,892
    
    
    
    4.0
    %Tier 1 Risk-Based Capital RatioPlumas Bancorp and Subsidiary
    
    
    51,271
    
    
    
    13.1
    %
    
    
    43,885
    
    
    
    11.0
    %Minimum regulatory requirement
    
    
    15,680
    
    
    
    4.0
    %
    
    
    16,021
    
    
    
    4.0
    %Plumas Bank
    
    
    47,484
    
    
    
    12.1
    %
    
    
    43,372
    
    
    
    10.8
    %Minimum requirement for
Well-Capitalized institution
under the prompt corrective
action plan
    
    
    23,492
    
    
    
    6.0
    %
    
    
    23,996
    
    
    
    6.0
    %Minimum regulatory requirement
    
    
    15,662
    
    
    
    4.0
    %
    
    
    15,997
    
    
    
    4.0
    %Total Risk-Based Capital RatioPlumas Bancorp and Subsidiary
    
    
    56,233
    
    
    
    14.3
    %
    
    
    48,919
    
    
    
    12.2
    %Minimum regulatory requirement
    
    
    31,360
    
    
    
    8.0
    %
    
    
    32,042
    
    
    
    8.0
    %Plumas Bank
    
    
    52,440
    
    
    
    13.4
    %
    
    
    48,399
    
    
    
    12.1
    %Minimum requirement for
Well-Capitalized institution
under the prompt corrective
action plan
    
    
    39,154
    
    
    
    10.0
    %
    
    
    39,994
    
    
    
    10.0
    %Minimum regulatory requirement
    
    
    31,323
    
    
    
    8.0
    %
    
    
    31,995
    
    
    
    8.0
    %
 LIQUIDITY
      31




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##### Table of Contents



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
  
 ITEM 4. CONTROLS AND PROCEDURES
    32




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##### Table of Contents



PART II  OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
  
 ITEM 1A RISK FACTORS
  
 ITEM 2. UNREGISTERD SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 (a)
    
    The information required by this item was included in the Companys Form 8-K filed
on January 30, 2009.(b)
    
    None.(c)
    
    None.
 
 ITEM 3. DEFAULTS UPON SENIOR SECURITIES
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  Proposal #1: Election of Directors
  VotesWithheld orVotes For
    
    
    Against
    
    
    
    
    
    
    BrokerNominee
    
    Nominee
    
    
    Nominee
    
    
    Abstentions
    
    
    Non-VotesDouglas N. Biddle
    
    
    3,898,160
    
    
    
    129,636
    
    
    
    n/a
    
    
    
    n/aAlvin G. Blickenstaff
    
    
    3,925,503
    
    
    
    102,293
    
    
    
    n/a
    
    
    
    n/aWilliam E. Elliott
    
    
    3,932,057
    
    
    
    95,739
    
    
    
    n/a
    
    
    
    n/aGerald W. Fletcher
    
    
    3,932,057
    
    
    
    95,739
    
    
    
    n/a
    
    
    
    n/aJohn Flournoy
    
    
    3,932,057
    
    
    
    95,739
    
    
    
    n/a
    
    
    
    n/aArthur C. Grohs
    
    
    3,925,503
    
    
    
    102,293
    
    
    
    n/a
    
    
    
    n/aRobert J. McClintock
    
    
    3,932,057
    
    
    
    95,739
    
    
    
    n/a
    
    
    
    n/aTerrance J. Reeson
    
    
    3,915,613
    
    
    
    112,183
    
    
    
    n/a
    
    
    
    n/aDaniel E. West
    
    
    3,931,957
    
    
    
    95,839
    
    
    
    n/a
    
    
    
    n/a
  33




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##### Table of Contents



Proposal #2: Non-Binding Advisory Vote on Executive Compensation
  For
    
    Against
    
    Abstain3,711,190
    
    148,253
    
    168,352
 
 ITEM 5. OTHER INFORMATION
  
 ITEM 6. EXHIBITS
  3.1
    
    
    Articles of Incorporation as amended of Registrant included as exhibit 3.1 to the Registrants
Form S-4, File No. 333-84534, which is incorporated by reference herein.3.2
    
    
    Bylaws of Registrant as amended on January 21, 2009, is included as exhibit 3.2 to the
Registrants 10-K for December 31, 2008, which is incorporated by this reference herein.3.3
    
    
    Amendment of the Articles of Incorporation of Registrant dated November 1, 2002, is included as
exhibit 3.3 to the Registrants 10-Q for September 30, 2005, which is incorporated by this
reference herein.3.4
    
    
    Amendment of the Articles of Incorporation of Registrant dated August 17, 2005, is included as
exhibit 3.4 to the Registrants 10-Q for September 30, 2005, which is incorporated by this
reference herein.4
    
    
    Specimen form of certificate for Plumas Bancorp included as exhibit 4 to the Registrants
Form S-4, File No. 333-84534, which is incorporated by reference herein.4.1
    
    
    Certificate of Determination of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, is
included as exhibit 4.1 to Registrants 8-K filed on January 30, 2009, which is incorporated by
this reference herein.10.1
    
    
    Executive Salary Continuation Agreement of Andrew J. Ryback dated December 17, 2008, is
included as exhibit 10.1 to the Registrants 10-K for December 31, 2008, which is incorporated
by this reference herein.10.2
    
    
    Split Dollar Agreement of Andrew J. Ryback dated August 23, 2005, is included as Exhibit 10.2
to the Registrants 8-K filed on October 17, 2005, which is incorporated by this reference
herein.10.5
    
    
    Employment Agreement of Douglas N. Biddle dated February 18, 2009, is included as Exhibit 10.05
to the Registrants 8-K filed on February 19, 2009, which is incorporated by this reference
herein.10.6
    
    
    Executive Salary Continuation Agreement as amended of Douglas N. Biddle dated June 2, 1994, is
included as Exhibit 10.6 to the Registrants 10-QSB for June 30, 2002, which is incorporated by
this reference herein.10.7
    
    
    Split Dollar Agreements of Douglas N. Biddle dated January 24, 2002, is included as
Exhibit 10.7 to the Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.10.8
    
    
    Director Retirement Agreement of John Flournoy dated March 21, 2007, is included as Exhibit
10.8 to Registrants 10-Q for March 31, 2007, which is incorporated by this reference herein.
  34




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##### Table of Contents



10.11
    
    
    First Amendment to Executive Salary Continuation Agreement of Robert T. Herr dated
September 15, 2004, is included as Exhibit 10.11 to the Registrants 8-K filed on September 17,
2004, which is incorporated by this reference herein.10.18
    
    
    Amended and Restated Director Retirement Agreement of Daniel E. West dated May 10, 2000, is
included as Exhibit 10.18 to the Registrants 10-QSB for June 30, 2002, which is incorporated
by this reference herein.10.19
    
    
    Consulting Agreement of Daniel E. West dated May 10, 2000, is included as Exhibit 10.19 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this reference herein.10.20
    
    
    Split Dollar Agreements of Robert T. Herr dated September 15, 2004, is included as
Exhibit 10.20 to the Registrants 8-K filed on September 17, 2004, which is incorporated by
this reference herein.10.21
    
    
    Amended and Restated Director Retirement Agreement of Alvin G. Blickenstaff dated April 19,
2000, is included as Exhibit 10.21 to the Registrants 10-QSB for June 30, 2002, which is
incorporated by this reference herein.10.22
    
    
    Consulting Agreement of Alvin G. Blickenstaff dated May 8, 2000, is included as Exhibit 10.22
to the Registrants 10-QSB for June 30, 2002, which is incorporated by this reference herein.10.24
    
    
    Amended and Restated Director Retirement Agreement of Gerald W. Fletcher dated May 10, 2000, is
included as Exhibit 10.24 to the Registrants 10-QSB for June 30, 2002, which is incorporated
by this reference herein.10.25
    
    
    Consulting Agreement of Gerald W. Fletcher dated May 10, 2000, is included as Exhibit 10.25 to
the Registrants 10-QSB for June 30, 2002, which is incorporated by this reference herein.10.27
    
    
    Amended and Restated Director Retirement Agreement of Arthur C. Grohs dated May 9, 2000, is
included as Exhibit 10.27 to the Registrants 10-QSB for June 30, 2002, which is incorporated
by this reference herein.10.28
    
    
    Consulting Agreement of Arthur C. Grohs dated May 9, 2000, is included as Exhibit 10.28 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this reference herein.10.33
    
    
    Amended and Restated Director Retirement Agreement of Terrance J. Reeson dated April 19, 2000,
is included as Exhibit 10.33 to the Registrants 10-QSB for June 30, 2002, which is
incorporated by this reference herein.10.34
    
    
    Consulting Agreement of Terrance J. Reeson dated May 10, 2000, is included as Exhibit 10.34 to
the Registrants 10-QSB for June 30, 2002, which is incorporated by this reference herein.10.35
    
    
    Letter Agreement, dated January 30, 2009 by and between Plumas Bancorp, Inc. and the United
States Department of the Treasury and Securities Purchase Agreement  Standard Terms attached
thereto, is included as exhibit 10.1 to Registrants 8-K filed on January 30, 2009, which is
incorporated by this reference herein.10.36
    
    
    Form of Senior Executive Officer letter agreement, is included as exhibit 10.2 to Registrants
8-K filed on January 30, 2009, which is incorporated by this reference herein.10.37
    
    
    Deferred Fee Agreement of Alvin Blickenstaff is included as Exhibit 10.37 to the Registrants
10-Q for March 31, 2009, which is incorporated by this reference herein.10.40
    
    
    2001 Stock Option Plan as amended is included as exhibit 99.1 of the Form S-8 filed July 23,
2002, File No. 333-96957, which is incorporated by this reference herein.10.41
    
    
    Form of Indemnification Agreement (Plumas Bancorp) is included as Exhibit 10.41 to the
Registrants 10-Q for March 31, 2009, which is incorporated by this reference herein.
  35




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##### Table of Contents



10.42
    
    
    Form of Indemnification Agreement (Plumas Bank) is included as Exhibit 10.42 to the
Registrants 10-Q for March 31, 2009, which is incorporated by this reference herein.10.43
    
    
    Plumas Bank 401(k) Profit Sharing Plan as amended is included as exhibit 99.1 of the Form S-8
filed February 14, 2003, File No. 333-103229, which is incorporated by this reference herein.10.44
    
    
    Executive Salary Continuation Agreement of Robert T. Herr dated June 4, 2002, is included as
Exhibit 10.44 to the Registrants 10-Q for March 31, 2003, which is incorporated by this
reference herein.10.46
    
    
    1991 Stock Option Plan as amended is included as Exhibit 10.46 to the Registrants 10-Q for
September 30, 2004, which is incorporated by this reference herein.10.47
    
    
    Specimen form of Incentive Stock Option Agreement under the 1991 Stock Option Plan is included
as Exhibit 10.47 to the Registrants 10-Q for September 30, 2004, which is incorporated by this
reference herein.10.48
    
    
    Specimen form of Non-Qualified Stock Option Agreement under the 1991 Stock Option Plan is
included as Exhibit 10.48 to the Registrants 10-Q for September 30, 2004, which is
incorporated by this reference herein.10.49
    
    
    Amended and Restated Plumas Bancorp Stock Option Plan is included as Exhibit 10.49 to the
Registrants 10-Q for September 30, 2006, which is incorporated by this reference herein.10.50
    
    
    Executive Salary Continuation Agreement of Rose Dembosz, is included as exhibit 10.50 to the
Registrants 10-K for December 31, 2008, which is incorporated by this reference herein.10.51
    
    
    First Amendment to Split Dollar Agreement of Andrew J. Ryback, is included as exhibit 10.51 to
the Registrants 10-K for December 31, 2008, which is incorporated by this reference herein.10.52
    
    
    Executive Salary Continuation Agreement of Douglas N. Biddle dated December 17, 2008, is
included as exhibit 10.52 to the Registrants 10-K for December 31, 2008, which is incorporated
by this reference herein.10.53
    
    
    Second Amendment to Executive Salary Continuation Agreement of Douglas N. Biddle dated June 2,
1994 and Amended February 16, 2000, is included as exhibit 10.53 to the Registrants 10-K for
December 31, 2008, which is incorporated by this reference herein.10.54
    
    
    First Amendment to Addendum A of Split Dollar Agreements of Douglas N. Biddle dated January 24,
2002, is included as exhibit 10.54 to the Registrants 10-K for December 31, 2008, which is
incorporated by this reference herein.10.55
    
    
    First Amendment to Addendum B of Split Dollar Agreements of Douglas N. Biddle dated January 24,
2002, is included as exhibit 10.55 to the Registrants 10-K for December 31, 2008, which is
incorporated by this reference herein.10.56
    
    
    Second Amendment to Executive Salary Continuation Agreement of Robert T. Herr dated
June 4, 2002 and Amended September 15, 2004, is included as exhibit 10.56 to the Registrants
10-K for December 31, 2008, which is incorporated by this reference herein.10.57
    
    
    First Amendment to Split Dollar Agreements of Robert T. Herr dated September 15, 2004, is
included as exhibit 10.57 to the Registrants 10-K for December 31, 2008, which is incorporated
by this reference herein.10.58
    
    
    Executive Salary Continuation Agreement of Robert T. Herr dated December 17, 2008, is included
as exhibit 10.58 to the Registrants 10-K for December 31, 2008, which is incorporated by this
reference herein.
  36




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##### Table of Contents



10.64
    
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement for Alvin
Blickenstaff adopted on September 19, 2007, is included as Exhibit 10.64 to the Registrants
8-K filed on September 25, 2007, which is incorporated by this reference herein.10.65
    
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement for
Arthur C. Grohs adopted on September 19, 2007, is included as Exhibit 10.65 to the Registrants
8-K filed on September 25, 2007, which is incorporated by this reference herein.10.67
    
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement for
Terrance J. Reeson adopted on September 19, 2007, is included as Exhibit 10.67 to the
Registrants 8-K filed on September 25, 2007, which is incorporated by this reference herein.10.69
    
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement for
Daniel E. West adopted on September 19, 2007, is included as Exhibit 10.69 to the Registrants
8-K filed on September 25, 2007, which is incorporated by this reference herein.10.70
    
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement for
Gerald W. Fletcher adopted on October 9, 2007, is included as Exhibit 10.70 to the Registrants
10-Q for September 30, 2007, which is incorporated by this reference herein.11
    
    
    Computation of per share earnings appears in the attached 10-Q under Plumas Bancorp and
Subsidiary Notes to Condensed Consolidated Financial Statements as Footnote 5  Earnings Per
Share.31.1
    
    
    Rule 13a-14(a) [Section 302] Certification of Principal Financial Officer dated August 14, 2009.31.2
    
    
    Rule 13a-14(a) [Section 302] Certification of Principal Executive Officer dated August 14, 2009.32.1
    
    
    Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, As Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated August 14, 2009.32.2
    
    
    Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, As Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated August 14, 2009.
  37




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##### Table of Contents



SIGNATURES
  PLUMAS BANCORP
(Registrant)Date: August 14, 2009/s/ Andrew J. RybackAndrew J. RybackExecutive Vice President Chief Financial Officer/s/ Douglas N. BiddleDouglas N. BiddlePresident and Chief Executive Officer  38




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##### Table of Contents



EXHIBIT INDEX
 ExhibitNumber
    
    Description31.1
    
    
    Rule 13a-14(a) [Section 302] Certification of Principal Financial Officer dated August 14, 2009.31.2
    
    
    Rule 13a-14(a) [Section 302] Certification of Principal Executive Officer dated August 14, 2009.32.1
    
    
    Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, As Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated August 14, 2009.32.2
    
    
    Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, As Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated August 14, 2009.
  39