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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q

(Mark One)

|x |  | QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934  
|- |  | -----------------------------------------------------------------------------------
|  |  | FOR THE QUARTERLY PERIOD ENDED March 31, 2003                                      
|  |  |                                                                                    
|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

(Exact Name of Registrant as Specified 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)                               

Registrants Telephone Number, Including Area Code (530) 283-7307

Indicated by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 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


Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).

Yes o   No x


Indicate the number of shares outstanding of each of the issuers classes of
common stock, as of May 8, 2003; 3,228,990 shares





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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
|PART I  FINANCIAL INFORMATION
|                               | ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|                               | ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                           
|                               | ITEM 4. CONTROLS AND PROCEDURES                                                              
|PART II  OTHER INFORMATION   
|                               | ITEM 1. LEGAL PROCEEDINGS                                                                    
|                               | ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS                                            
|                               | 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 10.44                 
|EXHIBIT 10.45                 
|EXHIBIT 99.1                  
|EXHIBIT 99.2                  
|EXHIBIT 99.3                  



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PART I  FINANCIAL INFORMATION




ITEM 1. FINANCIAL STATEMENT


PLUMAS BANCORP




CONSOLIDATED BALANCE SHEET
(In thousands, except share data)


|                                                                                                                 |                                                                                                                                                                 |                |                            |                                            |         |             |         |              |         |         |         | 
|---------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------- | -------------------------- | ------------------------------------------ | ------- | ----------- | ------- | ------------ | ------- | ------- | ------- | 
|                                                                                                                 |                                                                                                                                                                 |                |                            |                                            |         | March 31,   |         | December 31,
|                                                                                                                 |                                                                                                                                                                 |                |                            |                                            |         | 2003        |         | 2002        
|                                                                                                                 |                                                                                                                                                                 |                |                            |                                            |         |             |         |             
|                                                                                                                 |                                                                                                                                                                 |                |                            |                                            |         | (Unaudited) |         | (Audited)   
|Assets                                                                                                           |                                                                                                                                                                 |                |                            |                                            |         |             |         |             
|Cash and due from banks                                                                                          |                                                                                                                                                                 | $              | 18,184                     |                                            |         | $           | 22,665  |             
|Federal funds sold                                                                                               |                                                                                                                                                                 |                | 12,550                     |                                            |         |             | 15,265  |             
|Loans held for sale                                                                                              |                                                                                                                                                                 |                | 615                        |                                            |         |             | 1,472   |             
|Investment securities (market value of $63,328 at March 31, 2003 and
$61,807 at December 31, 2002)               |                                                                                                                                                                 |                | 62,997                     |                                            |         |             | 61,436  |             
|Loans less allowance for loan losses of $2,555 at March 31, 2003 and
$2,471 at December 31, 2002 (Notes 3 and 4) |                                                                                                                                                                 |                | 207,321                    |                                            |         |             | 204,649 |             
|Bank premises and equipment, net                                                                                 |                                                                                                                                                                 |                | 9,183                      |                                            |         |             | 9,323   |             
|Intangible assets, net                                                                                           |                                                                                                                                                                 |                | 657                        |                                            |         |             | 690     |             
|Accrued interest receivable and other assets                                                                     |                                                                                                                                                                 |                | 10,429                     |                                            |         |             | 9,964   |             
|                                                                                                                 |                                                                                                                                                                 |                |                            |                                            |         |             |         |             
|                                                                                                                 |                                                                                                                                                                 |                |                            | Total assets                               |         | $           | 321,936 |              |         | $       | 325,464 | 
|                                                                                                                 |                                                                                                                                                                 |                |                            |                                            |         |             |         |             
|Liabilities and Shareholders Equity                                                                             |                                                                                                                                                                 |                |                            |                                            |         |             |         |             
|Deposits:                                                                                                        |                                                                                                                                                                 |                |                            |                                            |         |             |         |             
|                                                                                                                 | Non-interest bearing                                                                                                                                            |                | $                          | 69,751                                     |         |             | $       | 73,552       |        
|                                                                                                                 | Interest bearing                                                                                                                                                |                |                            | 219,700                                    |         |             |         | 220,387      |        
|                                                                                                                 |                                                                                                                                                                 |                |                            |                                            |         |             |         |             
|                                                                                                                 |                                                                                                                                                                 | Total deposits |                            |                                            | 289,451 |             |         |              | 293,939 |        
|Accrued interest payable and other liabilities                                                                   |                                                                                                                                                                 |                | 2,453                      |                                            |         |             | 2,237   |             
|Mandatorily redeemable cumulative trust preferred securities of subsidiary
grantor trust                         |                                                                                                                                                                 |                | 6,000                      |                                            |         |             | 6,000   |             
|                                                                                                                 |                                                                                                                                                                 |                |                            |                                            |         |             |         |             
|                                                                                                                 |                                                                                                                                                                 |                | Total liabilities          |                                            |         | 297,904     |         |              |         | 302,176 |        
|                                                                                                                 |                                                                                                                                                                 |                |                            |                                            |         |             |         |             
|Commitments and contingencies (Note 4)                                                                           |                                                                                                                                                                 |                |                           |                                            |         |             |        |             
|                                                                                                                 |                                                                                                                                                                 |                |                            |                                            |         |             |         |             
|Shareholders equity (Notes 5, 8 and 9):                                                                         |                                                                                                                                                                 |                |                            |                                            |         |             |         |             
|                                                                                                                 | Preferred stock, no par value; 10,000,000 shares authorized, no
shares issued or outstanding                                                                    |                |                            |                                           |         |             |         |             |        
|                                                                                                                 | Common stock, no par value; 15,000,000 shares authorized; issued
and outstanding  3,227,168 shares at March 31, 2003 and
3,209,396 shares at December 31, 2002 |                |                            | 3,856                                      |         |             |         | 3,743        |        
|                                                                                                                 | Retained earnings                                                                                                                                               |                |                            | 19,849                                     |         |             |         | 19,135       |        
|                                                                                                                 | Accumulated other comprehensive income (Note 6)                                                                                                                 |                |                            | 327                                        |         |             |         | 410          |        
|                                                                                                                 |                                                                                                                                                                 |                |                            |                                            |         |             |         |             
|                                                                                                                 |                                                                                                                                                                 |                | Total shareholders equity |                                            |         | 24,032      |         |              |         | 23,288  |        
|                                                                                                                 |                                                                                                                                                                 |                |                            |                                            |         |             |         |             
|                                                                                                                 |                                                                                                                                                                 |                |                            | Total liabilities and shareholders equity |         | $           | 321,936 |              |         | $       | 325,464 | 
|                                                                                                                 |                                                                                                                                                                 |                |                            |                                            |         |             |         |             

See notes to consolidated financial statements.

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PLUMAS BANCORP




CONSOLIDATED STATEMENT OF INCOME
(In thousands, except per share data)


|                                           |                                                               |                                                      |                       |       |                      |       |      |       |       |       | 
|------------------------------------------ | ------------------------------------------------------------- | ---------------------------------------------------- | --------------------- | ----- | -------------------- | ----- | ---- | ----- | ----- | ----- | 
|                                           |                                                               |                                                      |                       |       | Unaudited           
|                                           |                                                               |                                                      |                       |       | For the Three Months
|                                           |                                                               |                                                      |                       |       | Ended March 31      
|                                           |                                                               |                                                      |                       |       |                     
|                                           |                                                               |                                                      |                       |       | 2003                 |       | 2002
|                                           |                                                               |                                                      |                       |       |                      |       |     
|Interest Income:                           |                                                               |                                                      |                       |       |                      |       |      |      
|                                           | Interest and fees on loans                                    |                                                      | $                     | 3,945 |                      |       | $    | 3,864 |      
|                                           | Interest on investment securities:                            |                                                      |                       |       |                      |       |      |       |      
|                                           |                                                               | Taxable                                              |                       |       | 509                  |       |      |       | 482   |      
|                                           |                                                               | Exempt from Federal income taxes                     |                       |       | 33                   |       |      |       | 36    |      
|                                           | Interest on Federal funds sold                                |                                                      |                       | 32    |                      |       |      | 58    |      
|                                           | Interest on loans held for sale                               |                                                      |                       | 10    |                      |       |      | 10    |      
|                                           |                                                               |                                                      |                       |       |                      |       |      |      
|                                           |                                                               |                                                      | Total interest income |       |                      | 4,529 |      |       |       | 4,450 | 
|                                           |                                                               |                                                      |                       |       |                      |       |      |      
|Interest Expense:                          |                                                               |                                                      |                       |       |                      |       |      |      
|                                           | Interest on deposits                                          |                                                      |                       | 787   |                      |       |      | 1,070 |      
|                                           | Other                                                         |                                                      |                       | 77    |                      |       |      |      |      
|                                           |                                                               |                                                      |                       |       |                      |       |      |      
|                                           |                                                               | Total interest expense                               |                       |       | 864                  |       |      |       | 1,070 |      
|                                           |                                                               |                                                      |                       |       |                      |       |      |      
|                                           |                                                               | Net interest income before provision for loan losses |                       |       | 3,665                |       |      |       | 3,380 |      
|Provision for Loan Losses                  |                                                               |                                                      | 225                   |       |                      |       | 225  |      
|                                           |                                                               |                                                      |                       |       |                      |       |      |      
|                                           |                                                               | Net interest income after provision for loan losses  |                       |       | 3,440                |       |      |       | 3,155 |      
|Non-Interest Income:                       |                                                               |                                                      |                       |       |                      |       |      |      
|                                           | Service charges                                               |                                                      |                       | 474   |                      |       |      | 430   |      
|                                           | Gain (loss) on sale of loans, net                             |                                                      |                       | 29    |                      |       |      | (11   | )    
|                                           | Gain on sale of available-for-sale investment securities, net |                                                      |                       | 62    |                      |       |      | 60    |      
|                                           | (Loss) gain on sale of other real estate                      |                                                      |                       | (5    | )                    |       |      |      |      
|                                           | Earnings on cash surrender value of life insurance policies   |                                                      |                       | 54    |                      |       |      | 54    |      
|                                           | Other income                                                  |                                                      |                       | 211   |                      |       |      | 197   |      
|                                           |                                                               |                                                      |                       |       |                      |       |      |      
|                                           |                                                               | Total non-interest income                            |                       |       | 825                  |       |      |       | 730   |      
|                                           |                                                               |                                                      |                       |       |                      |       |      |      
|Non-Interest Expense:                      |                                                               |                                                      |                       |       |                      |       |      |      
|                                           | Salaries and employee benefits                                |                                                      |                       | 1,772 |                      |       |      | 1,554 |      
|                                           | Occupancy and equipment                                       |                                                      |                       | 518   |                      |       |      | 399   |      
|                                           | Other expense                                                 |                                                      |                       | 797   |                      |       |      | 792   |      
|                                           |                                                               |                                                      |                       |       |                      |       |      |      
|                                           |                                                               | Total non-interest expense                           |                       |       | 3,087                |       |      |       | 2,745 |      
|                                           |                                                               |                                                      |                       |       |                      |       |      |      
|                                           |                                                               | Income before income taxes                           |                       |       | 1,178                |       |      |       | 1,140 |      
|Income Tax Expense                         |                                                               |                                                      | 462                   |       |                      |       | 441  |      
|                                           |                                                               |                                                      |                       |       |                      |       |      |      
|                                           |                                                               | Net income                                           |                       | $     | 716                  |       |      | $     | 699   |      
|                                           |                                                               |                                                      |                       |       |                      |       |      |      
|Basic earnings per share (Notes 5 and 8)   |                                                               | $                                                    | 0.22                  |       |                      | $     | 0.22 |      
|                                           |                                                               |                                                      |                       |       |                      |       |      |      
|Diluted earnings per share (Notes 5 and 8) |                                                               | $                                                    | 0.22                  |       |                      | $     | 0.21 |      
|                                           |                                                               |                                                      |                       |       |                      |       |      |      

See notes to consolidated financial statements.

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PLUMAS BANCORP




CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)


|                                      |                                                                                   |                                                                                                             |                                           |                                                     |        |                      |        |      |        |       |       | 
|------------------------------------- | --------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------- | ----------------------------------------- | --------------------------------------------------- | ------ | -------------------- | ------ | ---- | ------ | ----- | ----- | 
|                                      |                                                                                   |                                                                                                             |                                           |                                                     |        | Unaudited           
|                                      |                                                                                   |                                                                                                             |                                           |                                                     |        | For the Three Months
|                                      |                                                                                   |                                                                                                             |                                           |                                                     |        | Ended March 31      
|                                      |                                                                                   |                                                                                                             |                                           |                                                     |        |                     
|                                      |                                                                                   |                                                                                                             |                                           |                                                     |        | 2003                 |        | 2002
|                                      |                                                                                   |                                                                                                             |                                           |                                                     |        |                      |        |     
|Cash Flows from Operating Activities: |                                                                                   |                                                                                                             |                                           |                                                     |        |                      |        |     
|                                      | Net income                                                                        |                                                                                                             | $                                         | 716                                                 |        |                      | $      | 699  |       
|                                      | Adjustments to reconcile net income to net cash provided by
operating activities: |                                                                                                             |                                           |                                                     |        |                      |        |      |       
|                                      |                                                                                   | Provision for loan losses                                                                                   |                                           |                                                     | 225    |                      |        |      | 225    |      
|                                      |                                                                                   | Deferred loan origination fees, net                                                                         |                                           |                                                     | 10     |                      |        |      | (93    | )    
|                                      |                                                                                   | Depreciation, amortization and accretion, net                                                               |                                           |                                                     | 305    |                      |        |      | 238    |      
|                                      |                                                                                   | Net realized gain on available-for-sale investment securities                                               |                                           |                                                     | (62    | )                    |        |      | (60    | )    
|                                      |                                                                                   | Amortization of investment security premiums                                                                |                                           |                                                     | 163    |                      |        |      | 28     |      
|                                      |                                                                                   | Accretion of investment security discounts                                                                  |                                           |                                                     | (4     | )                    |        |      | (60    | )    
|                                      |                                                                                   | Net loss on sale of premises and equipment and other real estate                                            |                                           |                                                     |       |                      |        |      | 6      |      
|                                      |                                                                                   | Write down of other real estate to market value                                                             |                                           |                                                     | 5      |                      |        |      |       |      
|                                      |                                                                                   | Net decrease in loans held for sale                                                                         |                                           |                                                     | 857    |                      |        |      | 380    |      
|                                      |                                                                                   | Increase in cash surrender value of life insurance                                                          |                                           |                                                     | (46    | )                    |        |      | (46    | )    
|                                      |                                                                                   | Net increase in accrued interest receivable and other assets                                                |                                           |                                                     | (187   | )                    |        |      | (102   | )    
|                                      |                                                                                   | Net increase in accrued interest payable and other liabilities                                              |                                           |                                                     | 216    |                      |        |      | 235    |      
|                                      |                                                                                   | Deferred taxes, net                                                                                         |                                           |                                                     |       |                      |        |      | 25     |      
|                                      |                                                                                   |                                                                                                             |                                           |                                                     |        |                      |        |     
|                                      |                                                                                   |                                                                                                             | Net cash provided by operating activities |                                                     |        | 2,198                |        |      |        | 1,475 |      
|Cash Flows from Investing Activities: |                                                                                   |                                                                                                             |                                           |                                                     |        |                      |        |     
|                                      |                                                                                   | Proceeds from matured and called available-for-sale investment
securities                                   |                                           |                                                     | 1,500  |                      |        |      | 13,996 |      
|                                      |                                                                                   | Proceeds from matured and called held-to-maturity investment
securities                                     |                                           |                                                     | 2,000  |                      |        |      | 2,949  |      
|                                      |                                                                                   | Proceeds from sales of available-for-sale investment securities                                             |                                           |                                                     | 3,648  |                      |        |      |       |      
|                                      |                                                                                   | Purchases of available-for-sale investment securities                                                       |                                           |                                                     | (9,346 | )                    |        |      | (7,726 | )    
|                                      |                                                                                   | Purchases of held-to-maturity investment securities                                                         |                                           |                                                     |       |                      |        |      | (685   | )    
|                                      |                                                                                   | Proceeds from principal repayments from available-for-sale
government-guaranteed mortgage-backed securities |                                           |                                                     | 266    |                      |        |      | 271    |      
|                                      |                                                                                   | Proceeds from principal repayments from held-to-maturity
government-guaranteed mortgage-backed securities   |                                           |                                                     | 134    |                      |        |      | 146    |      
|                                      |                                                                                   | Net increase in loans                                                                                       |                                           |                                                     | (2,907 | )                    |        |      | (6,043 | )    
|                                      |                                                                                   | Proceeds from sale of other real estate                                                                     |                                           |                                                     | 40     |                      |        |      |       |      
|                                      |                                                                                   | Purchase of premises and equipment                                                                          |                                           |                                                     | (131   | )                    |        |      | (340   | )    
|                                      |                                                                                   | Deposits on single premium cash surrender value life insurance
policies                                     |                                           |                                                     | (220   | )                    |        |      |       |      
|                                      |                                                                                   |                                                                                                             |                                           |                                                     |        |                      |        |     
|                                      |                                                                                   |                                                                                                             |                                           | Net cash (used in) provided by investing activities |        |                      | (5,016 | )    |        |       | 2,568 | 

Continued on next page.

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PLUMAS BANCORP




CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
(Continued)


|                                                  |                                                                |                                                                          |                                                     |     |                      |        |        |     |        |       | 
|------------------------------------------------- | -------------------------------------------------------------- | ------------------------------------------------------------------------ | --------------------------------------------------- | --- | -------------------- | ------ | ------ | --- | ------ | ----- | 
|                                                  |                                                                |                                                                          |                                                     |     | Unaudited           
|                                                  |                                                                |                                                                          |                                                     |     | For the Three Months
|                                                  |                                                                |                                                                          |                                                     |     | Ended March 31      
|                                                  |                                                                |                                                                          |                                                     |     |                     
|                                                  |                                                                |                                                                          |                                                     |     | 2003                 |        | 2002  
|                                                  |                                                                |                                                                          |                                                     |     |                      |        |       
|Cash Flows from Financing Activities:             |                                                                |                                                                          |                                                     |     |                      |        |        |    
|                                                  |                                                                | Net (decrease) increase in demand, interest bearing and savings deposits |                                                     | $   | (3,076               | )      |        | $   | 6,803  |      
|                                                  |                                                                | Net decrease in time deposits                                            |                                                     |     | (1,412               | )      |        |     | (1,363 | )    
|                                                  |                                                                | Proceeds from exercise of stock options                                  |                                                     |     | 110                  |        |        |     | 17     |      
|                                                  |                                                                |                                                                          |                                                     |     |                      |        |        |     |        |      
|                                                  |                                                                |                                                                          | Net cash (used in) provided by financing activities |     |                      | (4,378 | )      |     |        | 5,457 | 
|                                                  |                                                                |                                                                          |                                                     |     |                      |        |        |     |        |      
|                                                  |                                                                |                                                                          | (Decrease) increase in cash and cash equivalents    |     |                      | (7,196 | )      |     |        | 9,500 | 
|Cash and Cash Equivalents at Beginning of Year    |                                                                |                                                                          | 37,930                                              |     |                      |        | 30,088 |    
|                                                  |                                                                |                                                                          |                                                     |     |                      |        |        |     |        |      
|Cash and Cash Equivalents at End of Period        |                                                                | $                                                                        | 30,734                                              |     |                      | $      | 39,588 |    
|                                                  |                                                                |                                                                          |                                                     |     |                      |        |        |     |        |      
|Supplemental Disclosure of Cash Flow Information: |                                                                |                                                                          |                                                     |     |                      |        |        |    
|                                                  | Cash paid during the period for:                               |                                                                          |                                                     |     |                      |        |        |     |       
|                                                  |                                                                | Interest expense                                                         |                                                     | $   | 838                  |        |        | $   | 1,117  |      
|                                                  |                                                                | Income taxes                                                             |                                                     | $   | 302                  |        |        | $   | 191    |      
|Non-Cash Investing Activities:                    |                                                                |                                                                          |                                                     |     |                      |        |        |    
|                                                  | Net change in unrealized gain on available-for-sale securities |                                                                          | $                                                   | 141 |                      |        | $      | 147 |       

See notes to consolidated financial statements.

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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 the merger 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 consolidated financial statements
contain all adjustments (consisting of only normal recurring adjustments)
necessary to present fairly the Companys financial position at March 31, 2003
and December 31, 2002 and the results of operations and cash flows for the
three months ended March 31, 2003 and 2002. Certain reclassifications have
been made to prior years balances to conform to classifications used in 2003.

Certain disclosures normally presented in the notes to the consolidated
financial statements prepared in accordance with accounting principles
generally accepted in the United States of America have been omitted. These
interim financial statements should be read in conjunction with the
consolidated financial statements and notes thereto included in the Companys
2002 Annual Report to Shareholders. The results of operations for the
three-month period ended March 31, 2003 and 2002 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. LOANS

Outstanding loans are summarized below:

|                                                |  |           |         |              |  |   |         |  
|----------------------------------------------- |  | --------- | ------- | ------------ |  | - | ------- | -
|                                                |  | March 31, |         | December 31,
|                                                |  | 2003      |         | 2002        
|                                                |  |           |         |             
|Commercial                                      |  | $         | 50,864  |              |  | $ | 52,432  |  
|Agricultural                                    |  |           | 26,588  |              |  |   | 25,610  |  
|Real estate  mortgage                          |  |           | 68,055  |              |  |   | 66,039  |  
|Real estate  construction and land development |  |           | 18,400  |              |  |   | 15,175  |  
|Consumer                                        |  |           | 46,580  |              |  |   | 48,465  |  
|                                                |  |           |         |              |  |   |         |  
|                                                |  |           | 210,487 |              |  |   | 207,721 |  
|Deferred loans fees, net                        |  |           | (611    | )            |  |   | (601    | )
|Allowance for loan losses                       |  |           | (2,555  | )            |  |   | (2,471  | )
|                                                |  |           |         |              |  |   |         |  
|                                                |  | $         | 207,321 |              |  | $ | 204,649 |  
|                                                |  |           |         |              |  |   |         |  

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4. COMMITMENTS AND CONTIGENCIES

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 $49,573,000 and $49,267,000 and letters of credit of
$1,170,000 and $509,000 at March 31, 2003 and December 31, 2002, respectively.

Approximately $11,187,000 of the loan commitments outstanding at March 31, 2003
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.

5. EARNINGS PER SHARE COMPUTATION

Basic earnings per share are computed by dividing net income by the weighted
average common shares outstanding for the period. Diluted earnings per share
reflect the potential dilution that could occur if outstanding stock options
were exercised. Diluted earnings per share are computed by dividing net income
by the weighted average common shares outstanding for the period plus the
dilutive effect of options. Earnings per share computations have been
retroactively adjusted for splits for all periods presented.

|                           |  |                    |      |      |  |   |      | 
|-------------------------- |  | ------------------ | ---- | ---- |  | - | ---- | 
|                           |  | For Quarters Ended
|                           |  | March 31          
|                           |  |                   
|Earnings Per Share         |  | 2003               |      | 2002
|                           |  |                    |      |     
|Basic earnings per share   |  | $                  | 0.22 |      |  | $ | 0.22 | 
|Diluted earnings per share |  | $                  | 0.22 |      |  | $ | 0.21 | 

|                                              |  |                    |           |      |  |  |           | 
|--------------------------------------------- |  | ------------------ | --------- | ---- |  |  | --------- | 
|                                              |  | For Quarters Ended
|                                              |  | March 31          
|                                              |  |                   
|Weighted Average Number of Shares Outstanding |  | 2003               |           | 2002
|                                              |  |                    |           |     
|Basic Shares                                  |  |                    | 3,217,940 |      |  |  | 3,193,739 | 
|Diluted Shares                                |  |                    | 3,300,299 |      |  |  | 3,243,164 | 

6. COMPREHENSIVE INCOME

Total comprehensive income for the three months ended March 31, 2003 and 2002
totaled $633,000 and $613,000, respectively. Comprehensive income is comprised
of net unrealized losses, net of taxes, on available-for-sale investment
securities, which were $83,000 and $86,000 for the three months ended March 31,
2003 and 2002, respectively, along with net income. At March 31, 2003 and
2002, accumulated other comprehensive income totaled $327,000 and $62,000,
respectively.

7. ACCOUNTING PRONOUCEMENTS

On April 30, 2003, the Financial Accounting Standards Board issued Statement
No. 149, Amendment of Statement 133 on Derivative Instruments and Hedging
Activities.This Statement amends and clarifies the accounting for derivative
instruments by providing guidance related to circumstances under which a
contract with a net investment meets the characteristics of a derivative as
discussed in Statement 133. The

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Statement also clarifies when a derivative contains a financing component. The
Statement is intended to result in more consistent reporting for derivative
contracts and must be applied prospectively for contracts entered into or
modified after June 30, 2003, except for hedging relationships designated after
June 30, 2003. In managements opinion, adoption of this statement is not
expected to have a material effect on the Companys consolidated financial
position or results of operations.

8. STOCK-BASED COMPENSATION

At March 31, 2003, the Company had two stock-based compensation plans, the
Plumas Bank 2001 and 1991 Stock Option Plans. The Company accounts for these
plans under the recognition and measurement principles of APB Opinion No. 25,
Accounting for Stock Issued to Employees, and related Interpretations. No
stock-based compensation cost is reflected in net income, as all options
granted under these plans had an exercise price equal to the market value of
the underlying common stock on the date of grant.

Pro forma adjustments to the Companys consolidated net earnings and earnings
per share are disclosed during the years in which the options become vested.
The following table illustrates the effect on net income and earnings per share
if the Company had applied the fair value recognition provisions of FASB
Statements No. 123, Accounting for Stock-Based Compensation, to stock-based
compensation:

|                                                                                                                                       |  |           |         |           |  |   |         | 
|-------------------------------------------------------------------------------------------------------------------------------------- |  | --------- | ------- | --------- |  | - | ------- | 
|                                                                                                                                       |  | March 31, |         | March 31,
|                                                                                                                                       |  | 2003      |         | 2002     
|                                                                                                                                       |  |           |         |          
|Net earnings as reported                                                                                                               |  | $         | 716,000 |           |  | $ | 699,000 | 
|Deduct: Total stock-based compensation expense
determined under the fair value based method for all
awards, net of related tax effects |  |           | 21,000  |           |  |   | 15,000  | 
|                                                                                                                                       |  |           |         |           |  |   |         | 
|Pro forma net income                                                                                                                   |  | $         | 695,000 |           |  | $ | 684,000 | 
|                                                                                                                                       |  |           |         |           |  |   |         | 
|Basic earnings per share - as reported                                                                                                 |  | $         | 0.22    |           |  | $ | 0.22    | 
|Basic earnings per share - pro forma                                                                                                   |  | $         | 0.22    |           |  | $ | 0.21    | 
|Diluted earnings per share - as reported                                                                                               |  | $         | 0.22    |           |  | $ | 0.22    | 
|Diluted earnings per share - pro forma                                                                                                 |  | $         | 0.21    |           |  | $ | 0.21    | 

9. SUBSEQUENT EVENTS

On April 16, 2003, the Company announced a semi-annual cash dividend. The cash
dividend will be paid on May 14, 2003 to shareholders of record as of the close
of business on April 30, 2003.

In addition, on April 30 the Company announced that it has entered into an
agreement with Placer Sierra Bank to purchase five branches from the Auburn,
California based bank, subject to regulatory approval. These branches are
located in Quincy, Portola, Loyalton, Truckee and Kings Beach, California. As
of March 31, 2003, total deposits at these branches amounted to $57.4 million.
If the transaction is approved, it is expected that the assets acquired will
include premises and equipment of approximately $600 thousand and a core
deposit intangible estimated to range between $2.2 million and $2.6 million
that will be amortized using the straight-line method over a period of ten
years.

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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 March 31, 2003 and
December 31, 2002 and for the three months ended March 31, 2003 and March 31,
2002. This discussion should be read in conjunction with the financial
statements and related notes included elsewhere in this Quarterly Report on
Form 10-Q and the financial statements and notes thereto included in Plumas
Bancorps Annual Report filed on Form 10-KSB for the year ended December 31,
2002. 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 $17,000, or 2.4%, to $716,000 for the three
months ended March 31, 2003 from $699,000 for the same period in 2002. The
primary contributors to the increase in net income for the first three months
of 2003 were a $285 thousand increase in net interest income before provision
for loan losses and a $95 thousand increase in non-interest income, partially
offset by a $342 thousand increase in non-interest expenses and a $21 thousand
increase in income tax expense.

Total assets at March 31, 2003 decreased $3.5 million, or 1.1%, to $321.9
million from $325.5 million at December 31, 2002. The decline in total assets
during this period was primarily concentrated in balances due from other
institutions and Federal funds sold partially offset by growth in the loan
portfolio and investment portfolio. The loan portfolio grew $2.7 million, or
1.3%, to $210.5 million while the investment portfolio grew $1.6 million, or
2.5%, to $63.0 million during this same period. The decline in the Companys
balances in due from other institutions and Federal funds sold was the result
of declines in the Companys deposits. Deposits declined $4.5 million, or
1.5%, to $289.5 million at March 31, 2003 from $293.9 million at December 31,
2002.

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The return on average assets was 0.89% for the three months ended March 31,
2003 compared to 1.01% for the same period in 2002. The return on average
equity was 12.0% for the three months ended March 31, 2003 compared to 13.2%
for the same period in 2002. Although the Companys earnings increased
slightly during the first quarter of 2003 when compared to the first quarter of
2002, the Companys overall growth during this same time-frame resulted in
declines in the return on average asset and equity ratios. Total average
assets for the quarter ended March 31, 2003 increased $46.6 million, or 16.9%,
from the same period in 2002. Total average equity for the quarter ended March
31, 2003 increased $2.6 million, or 12.2%, from the same period in 2002.

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2003

Net interest income before provision for loan losses.Net interest income, on
a nontax-equivalent basis, was $3.7 million for the three months ended March
31, 2003, an increase of $285,000, or 8.4%, from $3.4 million for the same
period in 2002. 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 investment balances, partially offset by declines in
the yield on the Companys interest-earning assets.

Interest income increased $79,000 or 1.8%, to $4.5 million for the three months
ended March 31, 2003, up slightly from $4.4 million for the same period in
2003. The increase in interest income was primarily attributed to volume
increases in loans and investment balances mostly offset by falling yields on
loan and investment balances. The Companys average loan balances were $208.9
million for the three months ended March 31, 2003, up $23.7 million, or 12.8%,
from the $185.2 million for the same period in 2002. Significantly offsetting
the benefits of the increased loan volume was the impact of falling interest
rates on the Companys loan portfolio. The Companys average loan yield was
7.68% for the three months ended March 31, 2003, down 80 basis points, or 9.4%,
from the 8.48% for the same period in 2002.

Interest expense decreased $206,000, or 19.3%, to $864 thousand for the three
months ended March 31, 2003, down from $1.1 million for the same period in
2002. The decrease in interest expense was primarily attributed to rate
decreases for time deposits partially offset by interest expense on the
Companys trust preferred securities issued in September of 2002. The
Companys average rate paid on time deposits was 2.49% for the three months
ended March 31, 2003, down 110 basis points, or 30.6%, from the 3.59% paid for
the same period in 2002.

The net interest margin for the three months ended March 31, 2003 decreased 42
basis points, or 7.5%, to 5.21%, down from 5.63% for the same period in 2002.
Similar to most of the banking industry, the Companys net interest margin
continues to be challenged by the impact of decreases in the Federal funds
interest rate by the Federal Open Market Committee (FOMC) in 2001 and 2002.
Managing the decrease in loan yields and the effective rates paid on deposits
has become increasingly difficult as deposit rates may be near the bottom of
consumer tolerance and customers may seek higher yielding alternatives outside
the Bank.

Provision for loan losses.The Company recorded $225,000 in provision for loan
losses for both three-month periods ended March 31, 2003 and March 31, 2002.
The provision for loan losses 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. The
Companys loan portfolio composition and non-performing assets are further
discussed under the financial condition section below.

Non-interest income.During the three months ended March 31, 2003, total
non-interest income increased $95,000, or 13.0%, to $825,000, up from $730,000
for the comparable period in 2002. The increase in non-interest income is
primarily due to increases in the number of fee generating accounts, the
restructuring of the Banks service charge fee schedule halfway through the
first quarter of 2002, gains realized on the sale of mortgage loans and
dividend income on Federal Home Loan Bank Stock holdings.

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Non-interest expenses.Non-interest expenses consist of salaries and related
employee benefits, occupancy and equipment expenses, professional fees,
business development expenses, telephone expense, stationery and supplies
expense, armored car and courier expense, advertising and promotion expense,
loan expenses, directors fees, and other operating expenses. For the three
months ended March 31, 2003, non-interest expense increased $342,000, or 12.5%,
to $3.1 million, up from $2.7 million for the comparable period in 2002.

Salary and benefits increased $218,000 or 14.0% over the same three-month
period last year. This increase was due primarily to the expansion of the
Companys centralized lending function, staffing additions to manage the
overall growth of the Company and increased employee benefit costs related to
health-care insurance.

Occupancy and equipment increased $119 or 29.8% over the same three-month
period last year. This increase was due primarily to the additional
depreciation expense resulting from installation of an automated teller
platform system in 2002, additional depreciation and operating costs associated
with the Companys new centralized lending facility and remodeling of the
administrative facility.

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 March 31, 2003,
real estate loans grew to 41.1% of the loan portfolio versus 39.1% at December
31, 2002. Agricultural loans increased slightly to 12.6% of the loan portfolio
versus 12.3% at December 31, 2002. Commercial loans decreased slightly to
24.2% of the portfolio as of March 31, 2003 as compared to 25.3% at December
31, 2002. Consumer loans also decreased slightly to 22.1% of the loan
portfolio at March 31, 2003 compared to 23.3% at December 31, 2002.

Nonperforming assets.Nonperforming loans as a percent of total loans were
0.85% as of March 31, 2003, down slightly from 0.86% at December 31, 2002. The
slight decrease in this ratio was the result of an overall increase in
Companys total loan balances. Nonperforming assets as a percent of total
assets were 0.58% as of March 31, 2003 down slightly from 0.59% at December 31,
2002. The slight decrease in this ratio was the result of the Company selling
one of its other real estate owned property holdings during the first quarter
of 2003.

Analysis of allowance for loan losses.Net charge-offs during the three months
ended March 31, 2003 totaled $141,000, or 0.07% of total loans, compared to
$72,000, or 0.04% of total loans, for the comparable period in 2002. The
allowance for loan losses stood at 1.21% of total loans as of March 31, 2003,
versus 1.19% of total loans as of December 31, 2002. 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 $1.2 million, or 1.5%, to $75.5 million as of
March 31, 2003, down from $76.7 million at December 31, 2002. Federal funds
sold and proceeds from maturing short-term direct obligations of U.S. agencies
and longer-term corporate bonds, along with the proceeds from the sale of
short-term direct obligations of U.S. agencies 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 decreased to 86.6% of the investment portfolio, excluding Federal
funds sold, as of March 31, 2003, versus 87.3% at December 31, 2002. The
Companys investment in corporate bonds rose slightly to 8.0% of the investment
portfolio as of March 31, 2003, versus 7.3% at December 31, 2002. The
remainder of the Companys investment portfolio consists of municipal
obligations.

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Deposits.Total deposits were $289.5 million as of March 31, 2003, a decrease
of $4.5 million, or 1.5%, from the December 31, 2002 balance of $293.9 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 March 31, 2003, non-interest bearing demand deposits and interest checking
deposits decreased slightly to 35.6% of total deposits versus 36.7% at December
31, 2002. Money market and savings deposits increased slightly to 36.2% of
total deposits as of March 31, 2003 compared to 35.1% as of December 31, 2002.
Time deposits remained unchanged at 28.2% of total deposits as of March 31,
2003 and December 31, 2002.

CAPITAL RESOURCES

Shareholders equity as of March 31, 2003 increased $744,000, or 3.2%, to $24.0
million from $23.3 million as of December 31, 2002. This increase was
primarily due to the retention of current period earnings.

The Companys leverage (Tier 1 capital to average total assets) ratios were
9.0% and 8.8% at March 31, 2003 and December 31, 2002, respectively. The
Companys Tier 1 risk-based capital ratios were 11.9% and 11.8% at March 31,
2003 and December 31, 2002, respectively. The Companys total risk-based
capital ratios were 12.9% and 12.8% at March 31, 2003 and December 31, 2002,
respectively. The improvement in these ratios was primarily the result of the
Companys retention of earnings during the first quarter of 2003. The
Companys and the Banks capital ratios well exceed the minimum required
capital ratios.

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
charging competitive offering rates on deposit products and the use of
established lines of credit from correspondent financial institutions and the
Federal Home Loan Bank.

Customer deposits are the Companys primary source of funds. Those funds are
held in various forms with varying maturities. The Company does not accept
brokered deposits. During the first quarter of 2003, deposits declined $4.5
million, or 1.5%, from the December 31, 2002 balance of $293.9 million. The
overall lack of deposit balance growth as a source of funds in the first
quarter of 2003 resulted in the Company reducing it Federal funds sold
balances.

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.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

In managements opinion there has not been a material change in the Companys
market risk profile for the three months ended March 31, 2003 compared to
December 31, 2002 as discussed in the Companys 2002 annual report and form
10-KSB.




ITEM 4. CONTROLS AND PROCEDURES

The Companys Chief Executive Officer, Chief Financial Officer and Controller,
based on their evaluation within 90 days prior to the date of this report of
the Companys disclosure controls and procedures (as defined in Exchange Act
Rule 13a14(c)), have concluded that the Companys disclosure controls and
procedures are adequate and effective for purposes of Rule 13a14(c) in timely
alerting them to material information relating to the Company required to be
included in the Companys filings with the SEC under the Securities Exchange
Act of 1934.

There were no significant changes in the Companys internal controls or in
other factors that could significantly affect internal controls subsequent to
the date of their evaluation.




PART II  OTHER INFORMATION




ITEM 1. LEGAL PROCEEDINGS

From time to time, the Company and/or its subsidiaries are a party to claims
and legal proceedings arising in the ordinary course of business. In the
opinion of the Companys management, the amount of ultimate liability with
respect to such proceedings will not have a material adverse effect on the
financial condition or results of operations of the Company taken as a whole.




ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

None.




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

The following documents are included or incorporated by reference in this
Quarterly Report on Form 10Q:

|    |  |                                                                                                                                                                        
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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.                              

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|      |  |                                                                                                                                                                                                                           
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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, is
included as Exhibit 10.1 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.                                  
|      |  |                                                                                                                                                                                                                           
|10.2  |  | Incentive Stock Option Agreement as amended of William E. Elliott
dated November 18, 1998, is included as Exhibit 10.2 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.      
|      |  |                                                                                                                                                                                                                           
|10.3  |  | Executive Salary Continuation Agreement as amended of William E.
Elliott dated October 13, 1993, is included as Exhibit 10.3 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.
|      |  |                                                                                                                                                                                                                           
|10.4  |  | Split Dollar Agreements of William E. Elliott dated January 23,
2002, is included as Exhibit 10.4 to the Registrants 10-QSB for
June 30, 2002, which is incorporated by this reference herein.                           
|      |  |                                                                                                                                                                                                                           
|10.5  |  | Incentive Stock Option Agreement as amended of Douglas N. Biddle
dated November 18, 1998, is included as Exhibit 10.5 to the
Registrants 10-QSB for June 30, 2002, 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  |  | Incentive Stock Option Agreement as amended of Dennis C. Irvine
dated November 18, 1998, is included as Exhibit 10.8 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.        
|      |  |                                                                                                                                                                                                                           
|10.9  |  | Executive Salary Continuation Agreement as amended of Dennis C.
Irvine dated June 2, 1994, is included as Exhibit 10.9 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.      
|      |  |                                                                                                                                                                                                                           
|10.10 |  | Split Dollar Agreements of Dennis C. Irvine dated January 24, 2002,
is included as Exhibit 10.10 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.                            
|      |  |                                                                                                                                                                                                                           
|10.11 |  | Incentive Stock Option Agreement as amended of Robert T. Herr dated
July 19, 2000, is included as Exhibit 10.11 to the Registrants
10-QSB for June 30, 2002, which is incorporated by this reference
herein.             
|      |  |                                                                                                                                                                                                                           
|10.12 |  | Non-Qualified Stock Option Agreement as amended of Jerry V. Kehr
dated November 18, 1998, is included as Exhibit 10.12 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.      
|      |  |                                                                                                                                                                                                                           
|10.13 |  | Deferred Fee Agreement as amended of Jerry V. Kehr dated August 19,
1998, is included as Exhibit 10.13 to the Registrants 10-QSB for
June 30, 2002, which is incorporated by this reference herein.                      
|      |  |                                                                                                                                                                                                                           
|10.14 |  | Amended and Restated Director Retirement Agreement of Jerry V. Kehr
dated April 28, 2000, is included as Exhibit 10.14 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.      
|      |  |                                                                                                                                                                                                                           
|10.15 |  | Consulting Agreement of Jerry V. Kehr dated May 10, 2000, is
included as Exhibit 10.15 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.                                      
|      |  |                                                                                                                                                                                                                           
|10.16 |  | Non-Qualified Stock Option Agreement as amended of Daniel E. West
dated November 19, 1997, is included as Exhibit 10.16 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.     
|      |  |                                                                                                                                                                                                                           
|10.17 |  | Non-Qualified Stock Option Agreement as amended of Daniel E. West
dated November 18, 1998, is included as Exhibit 10.17 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.     

14



---



##### Table of Contents



|      |  |                                                                                                                                                                                                                             
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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 |  | Non-Qualified Stock Option Agreement as amended of Alvin G.
Blickenstaff dated November 18, 1998, is included as Exhibit 10.20
to the Registrants 10-QSB for June 30, 2002, 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.                                 
|      |  |                                                                                                                                                                                                                             
|10.23 |  | Non-Qualified Stock Option Agreement as amended of Gerald W.
Fletcher dated November 18, 1998, is included as Exhibit 10.23 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.                                   
|      |  |                                                                                                                                                                                                                             
|10.26 |  | Non-Qualified Stock Option Agreement as amended of Arthur C. Grohs
dated November 18, 1998, is included as Exhibit 10.26 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.                                       
|      |  |                                                                                                                                                                                                                             
|10.29 |  | Non-Qualified Stock Option Agreement as amended of Christine
McArthur dated August 16, 2000, is included as Exhibit 10.29 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.     
|      |  |                                                                                                                                                                                                                             
|10.30 |  | Amended and Restated Director Retirement Agreement of Christine
McArthur dated May 12, 2000, is included as Exhibit 10.30 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.     
|      |  |                                                                                                                                                                                                                             
|10.31 |  | Consulting Agreement of Christine McArthur dated May 12, 2000, is
included as Exhibit 10.31 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.                                   
|      |  |                                                                                                                                                                                                                             
|10.32 |  | Non-Qualified Stock Option Agreement as amended of Terrance J.
Reeson dated November 18, 1998, is included as Exhibit 10.32 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 |  | Non-Qualified Stock Option Agreement as amended of Walter Sphar
dated November 18, 1998, is included as Exhibit 10.35 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.         

15



---



##### Table of Contents



|      |  |                                                                                                                                                                                                                     
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|10.36 |  | Amended and Restated Director Retirement Agreement of Walter Sphar
dated April 20, 2000, is included as Exhibit 10.36 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein. 
|      |  |                                                                                                                                                                                                                     
|10.37 |  | Consulting Agreement of Walter Sphar dated May 9, 2000, is included
as Exhibit 10.37 to the Registrants 10-QSB for June 30, 2002, which
is incorporated by this reference herein.                                  
|      |  |                                                                                                                                                                                                                     
|10.38 |  | Non-Qualified Stock Option Agreement as amended of Thomas Watson
dated November 21, 2001, is included as Exhibit 10.38 to the
Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.
|      |  |                                                                                                                                                                                                                     
|10.39 |  | Deferred Fee Agreement of Thomas Watson dated March 3, 2001, is
included as Exhibit 10.39 to the Registrants 10-QSB for June 30,
2002, which is incorporated by this reference herein.                             
|      |  |                                                                                                                                                                                                                     
|10.40 |  | Form of Indemnification Agreement, is included as Exhibit 10.41 to
the Registrants 10-QSB for June 30, 2002, which is incorporated by
this reference herein.                                                       
|      |  |                                                                                                                                                                                                                     
|10.41 |  | 2001 Stock Option Plan as amended is included as exhibit 99.1 of the
Form S-8 filed July 23, 2002, File No. 333-96957                                                                                               
|      |  |                                                                                                                                                                                                                     
|10.42 |  | 1991 Stock Option Plan as amended is included as exhibit 99.1 of the
Form S-8 filed August 19, 2002, File No. 333-98319                                                                                             
|      |  |                                                                                                                                                                                                                     
|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                                                                          
|      |  |                                                                                                                                                                                                                     
|10.44 |  | Executive Salary Continuation Agreement of Robert T. Herr dated June
4, 2002.                                                                                                                                       
|      |  |                                                                                                                                                                                                                     
|10.45 |  | Branch Purchase and Assumption Agreement dated April 25, 2003.                                                                                                                                                      
|      |  |                                                                                                                                                                                                                     
|11    |  | Computation of per share earnings appears in the attached 10-Q under
Plumas Bancorp Notes to Consolidated Financial Statements as
Footnote 4  Earnings Per Share Computation.                                      
|      |  |                                                                                                                                                                                                                     
|99.1  |  | 906 Certification  Certification of Principal Accounting Officer
pursuant to 18 U.S.C. Section 1350 dated May 12, 2003.                                                                                            
|      |  |                                                                                                                                                                                                                     
|99.2  |  | 906 Certification  Certification of Principal Financial Officer
pursuant to 18 U.S.C. Section 1350 dated May 12, 2003.                                                                                             
|      |  |                                                                                                                                                                                                                     
|99.3  |  | 906 Certification  Certification of Principal Executive Officer
pursuant to 18 U.S.C. Section 1350 dated May 12, 2003.                                                                                             



|(b) |  | Reports on Form 8-K
|--- |  | -------------------
|   

| |  | On January 15, 2003, the Company filed a Current Report on Form 8-K. The
Current Report included as an exhibit, the press release dated January 15,
2003, filed by the Company containing unaudited financial information and
announcement of 2002 earnings.          
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | On February 7, 2003, the Company filed a Current Report on Form 8-K. The
Current Report included as an exhibit, the press release dated February 7,
2003, filed by the Company announcing the filing of an application to open a
new branch in Tahoe City, California.

16



---



##### Table of Contents





| |  | On April 16, 2003, the Company filed a Current Report on Form 8-K. The Current
Report included as an exhibit, the press release dated April 16, 2003, filed by
the Company containing unaudited financial information and announcement of a
semi-annual cash dividend.                  
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | On April 30, 2003, the Company filed a Current Report on Form 8-K. The Current
Report included as an exhibit, the press release dated April 30, 2003, filed by
the Company announcing an agreement to purchase five branches located in
Northeastern California from Placer Sierra Bank.

17



---



##### Table of Contents






SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

PLUMAS BANCORP
(Registrant)

Date: May 12, 2003

| |  |                                                                  
| |  | -----------------------------------------------------------------
| |  | /s/ William E. Elliott                                           
| |  |                                                                  
| |  | William E. ElliottPresident/Chief Executive Officer              
| |  |                                                                  
| |  | /s/ Douglas N. Biddle                                            
| |  |                                                                  
| |  | Douglas N. BiddleExecutive Vice President Chief Financial Officer
| |  |                                                                  
| |  | /s/ Andrew J. Ryback                                             
| |  |                                                                  
| |  | Andrew J. RybackSenior Vice President Controller                 

18



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##### Table of Contents



I, Andrew J. Ryback, certify that:



| | 1. |  | I have reviewed this quarterly report on Form 10-Q of Plumas
Bancorp (the Registrant);                                                                                                                                                                                                                                      
| | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | 2. |  | Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this quarterly report;
|
| | 3. |  | Based on my knowledge, the financial statements, and other
financial information included in this quarterly report, fairly present
in all material respects the financial condition, results of operations
and cash flows of the registrant as of, and for, the periods presented
in this quarterly report;                   
|
| | 4. |  | The registrants other certifying officers and I are responsible
for establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
we have:                                                                                                     



| | a) |  | designed such disclosure controls and procedures to
ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in
which this quarterly report is being prepared;
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | evaluated the effectiveness of the registrants
disclosure controls and procedures as of a date within 90 days
prior to the filing date of this quarterly report (the
Evaluation Date); and                                                                                                  
|
| | c) |  | presented in this quarterly report our conclusions
about the effectiveness of the disclosure controls and
procedures based on our evaluation as of the Evaluation Date;                                                                                                                        



| | 5. |  | The registrants other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrants auditors and
the audit committee of registrants board of directors:
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | a) |  | all significant deficiencies in the design or
operation of internal controls which could adversely affect the
registrants ability to record, process, summarize and report
financial data and have identified for the registrants auditors
any material weakness in internal controls; and
| | -- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | any fraud, whether or not material, that involves
management or other employees who have a significant role in the
registrants internal controls; and                                                                                                                                      



| | 6. |  | The registrants other certifying officers and I have indicated in
this quarterly report whether or not there were significant changes in
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant
deficiencies and material weaknesses.
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Date: May 12, 2003

|                                  
|----------------------------------
|/s/ Andrew J. Ryback              
|                                  
|Andrew J. Ryback, SVP & Controller

19



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##### Table of Contents



I, Douglas N. Biddle, certify that:



| | 1. |  | I have reviewed this quarterly report on Form 10-Q of Plumas
Bancorp (the Registrant);                                                                                                                                                                                                                                      
| | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | 2. |  | Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this quarterly report;
|
| | 3. |  | Based on my knowledge, the financial statements, and other
financial information included in this quarterly report, fairly present
in all material respects the financial condition, results of operations
and cash flows of the registrant as of, and for, the periods presented
in this quarterly report;                   
|
| | 4. |  | The registrants other certifying officers and I are responsible
for establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
we have:                                                                                                     



| | a) |  | designed such disclosure controls and procedures to
ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in
which this quarterly report is being prepared;
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | evaluated the effectiveness of the registrants
disclosure controls and procedures as of a date within 90 days
prior to the filing date of this quarterly report (the
Evaluation Date); and                                                                                                  
|
| | c) |  | presented in this quarterly report our conclusions
about the effectiveness of the disclosure controls and
procedures based on our evaluation as of the Evaluation Date;                                                                                                                        



| | 5. |  | The registrants other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrants auditors and
the audit committee of registrants board of directors:
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | a) |  | all significant deficiencies in the design or
operation of internal controls which could adversely affect the
registrants ability to record, process, summarize and report
financial data and have identified for the registrants auditors
any material weakness in internal controls; and
| | -- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | any fraud, whether or not material, that involves
management or other employees who have a significant role in the
registrants internal controls; and                                                                                                                                      



| | 6. |  | The registrants other certifying officers and I have indicated in
this quarterly report whether or not there were significant changes in
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant
deficiencies and material weaknesses.
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Date: May 12, 2003

|                                                   
|---------------------------------------------------
|/s/ Douglas N. Biddle

Douglas N. Biddle, EVP & CFO

20



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##### Table of Contents



I, William E. Elliott, certify that:



| | 1. |  | I have reviewed this quarterly report on Form 10-Q of Plumas
Bancorp (the Registrant);                                                                                                                                                                                                                                      
| | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | 2. |  | Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this quarterly report;
|
| | 3. |  | Based on my knowledge, the financial statements, and other
financial information included in this quarterly report, fairly present
in all material respects the financial condition, results of operations
and cash flows of the registrant as of, and for, the periods presented
in this quarterly report;                   
|
| | 4. |  | The registrants other certifying officers and I are responsible
for establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
we have:                                                                                                     



| | a) |  | designed such disclosure controls and procedures to
ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in
which this quarterly report is being prepared;
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | evaluated the effectiveness of the registrants
disclosure controls and procedures as of a date within 90 days
prior to the filing date of this quarterly report (the
Evaluation Date); and                                                                                                  
|
| | c) |  | presented in this quarterly report our conclusions
about the effectiveness of the disclosure controls and
procedures based on our evaluation as of the Evaluation Date;                                                                                                                        



| | 5. |  | The registrants other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrants auditors and
the audit committee of registrants board of directors:
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | a) |  | all significant deficiencies in the design or
operation of internal controls which could adversely affect the
registrants ability to record, process, summarize and report
financial data and have identified for the registrants auditors
any material weakness in internal controls; and
| | -- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | b) |  | any fraud, whether or not material, that involves
management or other employees who have a significant role in the
registrants internal controls; and                                                                                                                                      



| | 6. |  | The registrants other certifying officers and I have indicated in
this quarterly report whether or not there were significant changes in
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant
deficiencies and material weaknesses.
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Date: May 12, 2003

|                                     
|-------------------------------------
|/s/ William E. Elliott               
|                                     
|William E. Elliott, President and CEO

21