##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 (Mark One)
 þ
    
    QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
 FOR THE QUARTERLY PERIOD ENDED June 30, 2006
 o
    
    TRANSITION REPORT UNDER SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
 FOR THE TRANSITION PERIOD FROM  TO
 COMMISSION FILE NUMBER: 000-49883
 PLUMAS BANCORP
  California
    
    75-2987096(State or Other Jurisdiction of
Incorporation or Organization)
    
    (I.R.S. Employer Identification No.)35 S. Lindan Avenue, Quincy, California
    
    95971(Address of Principal Executive Offices)
    
    (Zip Code)
 (530) 283-7305
 þ o
  o þ o
 o þ




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TABLE OF CONTENTS  PART I  FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTSITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKITEM 4. CONTROLS AND PROCEDURESPART II  OTHER INFORMATIONITEM 1. LEGAL PROCEEDINGSITEM 1A RISK FACTORSITEM 2. UNREGISTERD SALES OF EQUITY SECURITIES AND USE OF PROCEEDSITEM 3. DEFAULTS UPON SENIOR SECURITIESITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSITEM 5. OTHER INFORMATIONITEM 6. EXHIBITSSIGNATURESEXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1EXHIBIT 32.2    Table of Contents  
 PART I  FINANCIAL INFORMATION
 
 ITEM 1. FINANCIAL STATEMENTS
 PLUMAS BANCORP
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
 June 30,
    
    
    December 31,2006
    
    
    2005AssetsCash and due from banks
    
    $
    17,248
    
    
    $
    17,271Federal funds sold
    
    
    455
    
    
    
    7,325Cash and cash equivalents
    
    
    17,703
    
    
    
    24,596Investment securities (fair value of $82,702 at June 30, 2006 and
$97,712 at December 31, 2005)
    
    
    83,051
    
    
    
    97,844Loans, less allowance for loan losses of $3,701 at June 30, 2006
and $3,256 at December 31, 2005 (Notes 3 and 4)
    
    
    334,592
    
    
    
    319,156Premises and equipment, net
    
    
    13,300
    
    
    
    11,404Intangible assets, net
    
    
    1,488
    
    
    
    1,638Bank owned life insurance
    
    
    9,085
    
    
    
    8,930Accrued interest receivable and other assets
    
    
    10,311
    
    
    
    9,235Total assets
    
    $
    469,530
    
    
    $
    472,803Liabilities and Shareholders EquityDeposits:Non-interest bearing
    
    $
    127,254
    
    
    $
    129,734Interest bearing
    
    
    289,999
    
    
    
    296,826Total deposits
    
    
    417,253
    
    
    
    426,560Federal Home Loan Bank advances
    
    
    5,000
    
    
    
    Accrued interest payable and other liabilities
    
    
    4,182
    
    
    
    4,796Junior subordinated deferrable interest debentures
    
    
    10,310
    
    
    
    10,310Total liabilities
    
    
    436,745
    
    
    
    441,666Commitments and contingencies (Note 4)
    
    
    
    
    
    
    Shareholders equity (Notes 5 and 8):Serial preferred stock, no par value; 10,000,000 shares
authorized, none issued
    
    
    
    
    
    
    Common stock, no par value; 22,500,000 shares authorized; issued
and outstanding   5,004,241 shares at June 30, 2006 and
4,976,654 shares at December 31, 2005
    
    
    4,579
    
    
    
    4,412Retained earnings
    
    
    29,651
    
    
    
    27,816Accumulated other comprehensive loss (Note 6)
    
    
    (1,445
    )
    
    
    (1,091
    )Total shareholders equity
    
    
    32,785
    
    
    
    31,137Total liabilities and shareholders equity
    
    $
    469,530
    
    
    $
    472,803
  2




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PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
 For the Three Months
    
    
    For the Six MonthsEnded June 30
    
    
    Ended June 302006
    
    
    2005
    
    
    2006
    
    
    2005Interest Income:Interest and fees on loans
    
    $
    6,379
    
    
    $
    5,354
    
    
    $
    12,384
    
    
    $
    10,163Interest on investment securities:Taxable
    
    
    645
    
    
    
    678
    
    
    
    1,332
    
    
    
    1,390Exempt from Federal income taxes
    
    
    133
    
    
    
    134
    
    
    
    264
    
    
    
    272Interest on Federal funds sold
    
    
    27
    
    
    
    3
    
    
    
    144
    
    
    
    4Total interest income
    
    
    7,184
    
    
    
    6,169
    
    
    
    14,124
    
    
    
    11,829Interest Expense:Interest on deposits
    
    
    1,421
    
    
    
    915
    
    
    
    2,782
    
    
    
    1,710Interest on Federal Home Loan Bank advances
    
    
    39
    
    
    
    131
    
    
    
    39
    
    
    
    166Interest on junior subordinated deferrable interest
debentures
    
    
    201
    
    
    
    93
    
    
    
    384
    
    
    
    184Other
    
    
    4
    
    
    
    3
    
    
    
    8
    
    
    
    5Total interest expense
    
    
    1,665
    
    
    
    1,142
    
    
    
    3,213
    
    
    
    2,065Net interest income before provision for loan
losses
    
    
    5,519
    
    
    
    5,027
    
    
    
    10,911
    
    
    
    9,764Provision for Loan Losses
    
    
    300
    
    
    
    300
    
    
    
    600
    
    
    
    600Net interest income after provision for loan
losses
    
    
    5,219
    
    
    
    4,727
    
    
    
    10,311
    
    
    
    9,164Non-Interest Income:Service charges
    
    
    948
    
    
    
    739
    
    
    
    1,709
    
    
    
    1,469Gain (loss) on sale of other real estate and vehicles, net
    
    
    2
    
    
    
    (29
    )
    
    
    2
    
    
    
    (45
    )Earnings on Bank owned life insurance policies
    
    
    97
    
    
    
    87
    
    
    
    191
    
    
    
    179Other
    
    
    301
    
    
    
    313
    
    
    
    558
    
    
    
    616Total non-interest income
    
    
    1,348
    
    
    
    1,110
    
    
    
    2,460
    
    
    
    2,219Non-Interest Expenses:Salaries and employee benefits
    
    
    2,329
    
    
    
    2,263
    
    
    
    4,866
    
    
    
    4,666Occupancy and equipment
    
    
    810
    
    
    
    737
    
    
    
    1,560
    
    
    
    1,493Other
    
    
    1,302
    
    
    
    1,125
    
    
    
    2,326
    
    
    
    2,167Total non-interest expenses
    
    
    4,441
    
    
    
    4,125
    
    
    
    8,752
    
    
    
    8,326Income before provision for income taxes
    
    
    2,126
    
    
    
    1,712
    
    
    
    4,019
    
    
    
    3,057Provision for Income Taxes
    
    
    816
    
    
    
    629
    
    
    
    1,534
    
    
    
    1,077Net income
    
    $
    1,310
    
    
    $
    1,083
    
    
    $
    2,485
    
    
    $
    1,980Basic earnings per share (Notes 5 and 8)
    
    $
    0.26
    
    
    $
    0.22
    
    
    $
    0.50
    
    
    $
    0.40Diluted earnings per share (Notes 5 and 8)
    
    $
    0.26
    
    
    $
    0.21
    
    
    $
    0.49
    
    
    $
    0.39
  3




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PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
 For the Six MonthsEnded June 30,2006
    
    
    2005Cash Flows from Operating Activities:Net income
    
    $
    2,485
    
    
    $
    1,980Adjustments to reconcile net income to net cash provided by operating
activities:Provision for loan losses
    
    
    600
    
    
    
    600Change in deferred loan origination costs/fees, net
    
    
    (398
    )
    
    
    (614
    )Depreciation and amortization
    
    
    1,025
    
    
    
    836Stock-based compensation expense
    
    
    87
    
    
    
    Net loss on sale of available-for-sale investment securities
    
    
    
    
    
    
    8Amortization of investment security premiums
    
    
    223
    
    
    
    371Accretion of investment security discounts
    
    
    (46
    )
    
    
    (38
    )Net loss on disposal/sale of premises and equipment
    
    
    8
    
    
    
    4Net (gain) loss on sale of other real estate and vehicles
    
    
    (2
    )
    
    
    45Earnings on Bank owned life insurance policies
    
    
    (191
    )
    
    
    (179
    )Expenses on Bank owned life insurance policies
    
    
    36
    
    
    
    34(Increase) decrease in accrued interest receivable and other assets
    
    
    (852
    )
    
    
    115(Decrease) increase in accrued interest payable and other liabilities
    
    
    (614
    )
    
    
    697Net cash provided by operating activities
    
    
    2,361
    
    
    
    3,859Cash Flows from Investing Activities:Proceeds from matured and called available-for-sale investment securities
    
    
    12,346
    
    
    
    9,500Proceeds from matured and called held-to-maturity investment securities
    
    
    
    
    
    
    1,097Proceeds from sales of available-for-sale investment securities
    
    
    
    
    
    
    1,992Purchases of held-to-maturity investment securities
    
    
    (155
    )
    
    
    Proceeds from principal repayments from available-for-sale
government-guaranteed mortgage-backed securities
    
    
    1,805
    
    
    
    1,722Proceeds from principal repayments from held-to-maturity
government-guaranteed mortgage-backed securities
    
    
    18
    
    
    
    51Net increase in loans
    
    
    (15,942
    )
    
    
    (42,224
    )Proceeds from sale of other real estate and vehicles
    
    
    101
    
    
    
    154Purchase of premises and equipment
    
    
    (2,550
    )
    
    
    (1,235
    )Net cash used in investing activities
    
    
    (4,377
    )
    
    
    (28,943
    )
  4




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PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
 For the Six MonthsEnded June 30,2006
    
    
    2005Cash Flows from Financing Activities:Net (decrease) increase in demand, interest bearing and savings deposits
    
    $
    (331
    )
    
    $
    10,765Net (decrease) increase in time deposits
    
    
    (8,976
    )
    
    
    4,539Proceeds from Federal Home Loan Bank advances
    
    
    5,000
    
    
    
    16,465Proceeds from exercise of stock options
    
    
    80
    
    
    
    223Payment of cash dividends
    
    
    (650
    )
    
    
    (527
    )Net cash (used in) provided by financing activities
    
    
    (4,877
    )
    
    
    31,465(Decrease) increase in cash and cash equivalents
    
    
    (6,893
    )
    
    
    6,381Cash and Cash Equivalents at Beginning of Year
    
    
    24,596
    
    
    
    11,444Cash and Cash Equivalents at End of Period
    
    $
    17,703
    
    
    $
    17,825Supplemental Disclosure of Cash Flow Information:Cash paid during the period for:Interest expense
    
    $
    3,147
    
    
    $
    1,914Income taxes
    
    $
    1,655
    
    
    $
    555Non-Cash Investing Activities:Vehicles acquired through foreclosure
    
    $
    93
    
    
    $
    90Loan transferred to other assets
    
    $
    211
    
    
    $
    Net change in unrealized gain on available-for-sale securities
    
    $
    (354
    )
    
    $
    (162
    )Non-Cash Financing Activities:Common stock retired in connection with the exercise of stock options
    
    $
    345
    
    
    $
    80
  5




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




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3. LOANS
  June 30,
    
    
    December 31,2006
    
    
    2005Commercial
    
    $
    36,832
    
    
    $
    42,252Agricultural
    
    
    35,291
    
    
    
    31,018Real estate  mortgage
    
    
    116,203
    
    
    
    110,686Real estate  construction and land development
    
    
    63,123
    
    
    
    56,370Consumer
    
    
    85,680
    
    
    
    81,320337,129
    
    
    
    321,646Deferred loan costs, net
    
    
    1,164
    
    
    
    766Allowance for loan losses
    
    
    (3,701
    )
    
    
    (3,256
    )$
    334,592
    
    
    $
    319,156
 4. COMMITMENTS AND CONTINGENCIES
     7




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5. EARNINGS PER SHARE
  For the Three Months
    
    For the Six MonthsEnded June 30,
    
    Ended June 30,2006
    
    2005
    
    2006
    
    2005Earnings Per Share:Basic earnings per share
    
    $
    0.26
    
    
    $
    0.22
    
    
    $
    0.50
    
    
    $
    0.40Diluted earnings per share
    
    $
    0.26
    
    
    $
    0.21
    
    
    $
    0.49
    
    
    $
    0.39Weighted Average Number of
Shares Outstanding:
(in thousands)Basic shares
    
    
    5,000
    
    
    
    4,945
    
    
    
    4,994
    
    
    
    4,933Diluted shares
    
    
    5,089
    
    
    
    5,078
    
    
    
    5,090
    
    
    
    5,057
  6. COMPREHENSIVE INCOME
    7. STOCK-BASED COMPENSATION
 Share Based Payment Accounting for Stock Based Compensation Accounting for Stock Issued to Employees
 8




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For the ThreeAnd Six MonthsEnded June 30, 2005Net income as reported
    
    $
    1,083
    
    
    $
    1,980Deduct: Total stock-based compensation expense
determined under the fair value based method
for all awards, net of related tax effects
    
    
    43
    
    
    
    87Pro forma net income
    
    $
    1,040
    
    
    $
    1,893Basic earnings per share  as reported
    
    $
    0.22
    
    
    $
    0.40Basic earnings per share  pro forma
    
    $
    0.21
    
    
    $
    0.38Diluted earnings per share  as reported
    
    $
    0.21
    
    
    $
    0.39Diluted earnings per share  pro forma
    
    $
    0.20
    
    
    $
    0.37
 8. STOCK OPTION PLANS
  9




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Weighted AverageWeighted Average
    
    
    Remaining
    
    
    Intrinsic ValueShares
    
    
    Exercise Price
    
    
    Contractual Term
    
    
    (in thousands)Incentive:Options outstanding at January 1, 2006
    
    
    242,845
    
    
    
    11.05Options granted
    
    
    
    
    
    
    Options exercised
    
    
    44,418
    
    
    
    8.96Options cancelled
    
    
    4,756
    
    
    
    12.68Options outstanding at June 30, 2006
    
    
    193,671
    
    
    
    11.48
    
    
    
    6.9
    
    
    $
    1,360Options exercisable at June 30, 2006
    
    
    95,632
    
    
    
    9.72
    
    
    
    6.1
    
    
    $
    840Nonstatutory:Options outstanding at January 1, 2006
    
    
    113,131
    
    
    
    10.59Options granted
    
    
    2,500
    
    
    
    18.79Options exercised
    
    
    
    
    
    
    Options cancelled
    
    
    
    
    
    
    Options outstanding at June 30, 2006
    
    
    115,631
    
    
    
    10.77
    
    
    
    6.2
    
    
    $
    894Options exercisable at June 30, 2006
    
    
    70,386
    
    
    
    9.15
    
    
    
    5.3
    
    
    $
    658
   Weighted average fair value of options granted
    
    $
    4.60Dividend yield
    
    
    1.2
    %Expected volatility
    
    
    16.7
    %Risk-free interest rate
    
    
    4.6
    %Expected option life in years
    
    
    5.0
  9. RECENT ACCOUNTING DEVELOPMENTS
 Accounting for Uncertainty in Income Taxes
 Accounting for Uncertainty in Income Taxes Accounting for Income Taxes.
 10




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PART I  FINANCIAL INFORMATION
 
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
   INTRODUCTION
   STOCK SPLIT
  11




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CASH DIVIDEND
  CRITICAL ACCOUNTING POLICIES AND ESTIMATES
 Share Based Payment for Stock-Based
Compensation.
  OVERVIEW
    RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2006
 Net interest income before provision for loan losses.
  12




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13




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For the Six Months Ended June 30, 2006
    
    
    For the Six Months Ended June 30, 2005Average Balance
    
    
    Interest
    
    
    Yield/
    
    
    Average Balance
    
    
    Interest
    
    
    Yield/(in thousands)
    
    
    (in thousands)
    
    
    Rate
    
    
    (in thousands)
    
    
    (in thousands)
    
    
    RateInterest-earning assets:Loans (1) (2)
    
    $
    323,307
    
    
    $
    12,384
    
    
    
    7.72
    %
    
    $
    287,257
    
    
    $
    10,163
    
    
    
    7.13
    %Investment securities (1)
    
    
    90,002
    
    
    
    1,596
    
    
    
    3.58
    %
    
    
    104,328
    
    
    
    1,662
    
    
    
    3.21
    %Federal funds sold
    
    
    6,492
    
    
    
    144
    
    
    
    4.47
    %
    
    
    280
    
    
    
    4
    
    
    
    2.88
    %Total interest earning assets
    
    
    419,801
    
    
    
    14,124
    
    
    
    6.78
    %
    
    
    391,865
    
    
    
    11,829
    
    
    
    6.08
    %Cash and due from banks
    
    
    13,677
    
    
    
    
    
    
    
    
    
    
    
    15,565Other assets
    
    
    30,567
    
    
    
    
    
    
    
    
    
    
    
    26,386Total assets
    
    $
    464,045
    
    
    
    
    
    
    
    
    
    
    $
    433,816Interest-bearing liabilities:NOW deposits
    
    $
    75,748
    
    
    
    623
    
    
    
    1.66
    %
    
    $
    43,793
    
    
    
    33
    
    
    
    0.15
    %Money market deposits
    
    
    61,010
    
    
    
    371
    
    
    
    1.23
    %
    
    
    63,035
    
    
    
    324
    
    
    
    1.04
    %Savings deposits
    
    
    61,858
    
    
    
    224
    
    
    
    0.73
    %
    
    
    67,417
    
    
    
    200
    
    
    
    0.60
    %Time deposits
    
    
    94,378
    
    
    
    1,564
    
    
    
    3.34
    %
    
    
    95,877
    
    
    
    1,153
    
    
    
    2.43
    %FHLB advances
    
    
    1,525
    
    
    
    39
    
    
    
    5.16
    %
    
    
    11,449
    
    
    
    166
    
    
    
    2.92
    %Other interest-bearing liabilities
    
    
    278
    
    
    
    8
    
    
    
    5.80
    %
    
    
    232
    
    
    
    5
    
    
    
    4.35
    %Junior subordinated debentures
    
    
    10,310
    
    
    
    384
    
    
    
    7.51
    %
    
    
    6,186
    
    
    
    184
    
    
    
    6.00
    %Total interest-bearing liabilities
    
    
    305,107
    
    
    
    3,213
    
    
    
    2.12
    %
    
    
    287,989
    
    
    
    2,065
    
    
    
    1.44
    %Non-interest bearing deposits
    
    
    121,915
    
    
    
    
    
    
    
    
    
    
    
    113,018Other liabilities
    
    
    4,525
    
    
    
    
    
    
    
    
    
    
    
    3,834Shareholders equity
    
    
    32,498
    
    
    
    
    
    
    
    
    
    
    
    28,975Total liabilities & equity
    
    $
    464,045
    
    
    
    
    
    
    
    
    
    
    $
    433,816Cost of funding interest-earning assets (3)
    
    
    
    
    
    
    
    
    
    
    1.54
    %
    
    
    
    
    
    
    
    
    
    
    1.06
    %Net interest income and margin (4)
    
    
    
    
    
    $
    10,911
    
    
    
    5.24
    %
    
    
    
    
    
    $
    9,764
    
    
    
    5.02
    %
 
 (1)
    
    Not computed on a tax-equivalent basis.(2)
    
    Loan (costs) fees included in loan interest income for the six-month periods ended June 30,
2006 and 2005 were $(74,000) and $100,000, respectively.(3)
    
    Total annualized interest expense divided by the average balance of total earning assets.(4)
    
    Annualized net interest income divided by the average balance of total earning assets. 14




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2006 over 2005 change in net interest incomefor the six months ended June 30(in thousands)Volume (1)
    
    
    Rate (2)
    
    
    Mix (3)
    
    
    TotalInterest-earning assets:Loans
    
    $
    1,275
    
    
    $
    840
    
    
    $
    106
    
    
    $
    2,221Investment securities
    
    
    (228
    )
    
    
    188
    
    
    
    (26
    )
    
    
    (66
    )Federal funds sold
    
    
    89
    
    
    
    2
    
    
    
    49
    
    
    
    140Total interest income
    
    
    1,136
    
    
    
    1,030
    
    
    
    129
    
    
    
    2,295Interest-bearing liabilities:NOW deposits
    
    
    24
    
    
    
    327
    
    
    
    239
    
    
    
    590Money market deposits
    
    
    (10
    )
    
    
    59
    
    
    
    (2
    )
    
    
    47Savings deposits
    
    
    (16
    )
    
    
    44
    
    
    
    (4
    )
    
    
    24Time deposits
    
    
    (18
    )
    
    
    436
    
    
    
    (7
    )
    
    
    411FHLB advances
    
    
    (144
    )
    
    
    127
    
    
    
    (110
    )
    
    
    (127
    )Other interest-bearing liabilities
    
    
    1
    
    
    
    2
    
    
    
    
    
    
    
    3Junior subordinated debentures
    
    
    123
    
    
    
    46
    
    
    
    31
    
    
    
    200Total interest expense
    
    
    (40
    )
    
    
    1,041
    
    
    
    147
    
    
    
    1,148Net interest income
    
    $
    1,176
    
    
    $
    (11
    )
    
    $
    (18
    )
    
    $
    1,147
 
 (1)
    
    The volume change in net interest income represents the change in average balance divided by
the previous years rate.(2)
    
    The rate change in net interest income represents the change in rate multiplied by the previous
years average balance.(3)
    
    The mix change in net interest income represents the change in average balance multiplied by
the change in rate. Provision for loan losses.
 Non-interest income.
   15




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##### Table of Contents



For the Six MonthsEnded June 30Dollar
    
    
    Percentage2006
    
    
    2005
    
    
    Change
    
    
    ChangeService charges on deposit accounts
    
    $
    1,709
    
    
    $
    1,469
    
    
    $
    240
    
    
    
    16.3
    %Earnings on life insurance policies
    
    
    191
    
    
    
    179
    
    
    
    12
    
    
    
    6.7
    %Merchant processing income
    
    
    131
    
    
    
    132
    
    
    
    (1
    )
    
    
    -0.8
    %Official check fees
    
    
    80
    
    
    
    46
    
    
    
    34
    
    
    
    73.9
    %Mortgage loan commission and servicing fees
    
    
    65
    
    
    
    89
    
    
    
    (24
    )
    
    
    -27.0
    %Customer service fees
    
    
    60
    
    
    
    52
    
    
    
    8
    
    
    
    15.4
    %Investment services income
    
    
    55
    
    
    
    102
    
    
    
    (47
    )
    
    
    -46.1
    %Federal Home Loan Bank dividends
    
    
    48
    
    
    
    38
    
    
    
    10
    
    
    
    26.3
    %Safe deposit box and night depository income
    
    
    36
    
    
    
    35
    
    
    
    1
    
    
    
    2.9
    %Printed check fee income
    
    
    31
    
    
    
    21
    
    
    
    10
    
    
    
    47.6
    %Other deposit account fees
    
    
    28
    
    
    
    14
    
    
    
    14
    
    
    
    100.0
    %Gain (loss) on sale of real estate and vehicles
    
    
    2
    
    
    
    (45
    )
    
    
    47
    
    
    
    104.4
    %Loss on sale of securities
    
    
    
    
    
    
    (8
    )
    
    
    8
    
    
    
    100.0
    %Loss on sale of loans
    
    
    (4
    )
    
    
    
    
    
    
    (4
    )
    
    
    
    %Tax refunds
    
    
    
    
    
    
    58
    
    
    
    (58
    )
    
    
    -100.0
    %Other
    
    
    28
    
    
    
    37
    
    
    
    (9
    )
    
    
    -24.3
    %Total non-interest income
    
    $
    2,460
    
    
    $
    2,219
    
    
    $
    241
    
    
    
    10.9
    %
 Non-interest expenses.
 Share Based
Payment
  16




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##### Table of Contents



For the Six MonthsEnded June 30Dollar
    
    
    Percentage2006
    
    
    2005
    
    
    Change
    
    
    ChangeSalaries and employee benefits
    
    $
    4,866
    
    
    $
    4,666
    
    
    $
    200
    
    
    
    4.3
    %Occupancy and equipment
    
    
    1,560
    
    
    
    1,493
    
    
    
    67
    
    
    
    4.5
    %Professional fees
    
    
    345
    
    
    
    362
    
    
    
    (17
    )
    
    
    -4.7
    %Business development
    
    
    282
    
    
    
    238
    
    
    
    44
    
    
    
    18.5
    %Advertising and shareholder relations
    
    
    242
    
    
    
    224
    
    
    
    18
    
    
    
    8.0
    %Outside service fees
    
    
    219
    
    
    
    143
    
    
    
    76
    
    
    
    53.1
    %Telephone and data communication
    
    
    197
    
    
    
    157
    
    
    
    40
    
    
    
    25.5
    %Director compensation
    
    
    175
    
    
    
    159
    
    
    
    16
    
    
    
    10.1
    %Deposit premium amortization
    
    
    150
    
    
    
    150
    
    
    
    
    
    
    
    Stationery and supplies
    
    
    140
    
    
    
    160
    
    
    
    (20
    )
    
    
    -12.5
    %Armored car and courier
    
    
    132
    
    
    
    188
    
    
    
    (56
    )
    
    
    -29.8
    %Postage
    
    
    123
    
    
    
    124
    
    
    
    (1
    )
    
    
    -0.8
    %Insurance
    
    
    84
    
    
    
    117
    
    
    
    (33
    )
    
    
    -28.2
    %Loan and collection expenses
    
    
    80
    
    
    
    45
    
    
    
    35
    
    
    
    77.8
    %Other
    
    
    157
    
    
    
    100
    
    
    
    57
    
    
    
    57.0
    %Total non-interest expense
    
    $
    8,752
    
    
    $
    8,326
    
    
    $
    426
    
    
    
    5.1
    %
 Provision for income taxes.
 RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2006
 Net Income.
 Net interest income before provision for loan losses.
 17




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##### Table of Contents



18




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##### Table of Contents



For the Three Months Ended June 30, 2006
    
    
    For the Three Months Ended June 30, 2005Average Balance
    
    
    Interest
    
    
    Yield/
    
    
    Average Balance
    
    
    Interest
    
    
    Yield/(in thousands)
    
    
    (in thousands)
    
    
    Rate
    
    
    (in thousands)
    
    
    (in thousands)
    
    
    RateInterest-earning assets:Loans (1) (2)
    
    $
    325,408
    
    
    $
    6,379
    
    
    
    7.86
    %
    
    $
    299,895
    
    
    $
    5,354
    
    
    
    7.16
    %Investment securities (1)
    
    
    86,676
    
    
    
    778
    
    
    
    3.60
    %
    
    
    100,581
    
    
    
    812
    
    
    
    3.24
    %Federal funds sold
    
    
    2,286
    
    
    
    27
    
    
    
    4.74
    %
    
    
    322
    
    
    
    3
    
    
    
    3.74
    %Total interest earning assets
    
    
    414,370
    
    
    
    7,184
    
    
    
    6.95
    %
    
    
    400,798
    
    
    
    6,169
    
    
    
    6.17
    %Cash and due from banks
    
    
    13,317
    
    
    
    
    
    
    
    
    
    
    
    16,397Other assets
    
    
    31,446
    
    
    
    
    
    
    
    
    
    
    
    26,785Total assets
    
    $
    459,133
    
    
    
    
    
    
    
    
    
    
    $
    443,980Interest-bearing liabilities:NOW deposits
    
    $
    78,804
    
    
    
    360
    
    
    
    1.83
    %
    
    $
    43,250
    
    
    
    19
    
    
    
    0.18
    %Money market deposits
    
    
    57,329
    
    
    
    169
    
    
    
    1.18
    %
    
    
    62,285
    
    
    
    169
    
    
    
    1.09
    %Savings deposits
    
    
    59,794
    
    
    
    109
    
    
    
    0.73
    %
    
    
    67,614
    
    
    
    108
    
    
    
    0.64
    %Time deposits
    
    
    91,561
    
    
    
    783
    
    
    
    3.43
    %
    
    
    96,381
    
    
    
    619
    
    
    
    2.58
    %Federal Home Loan Bank advances
    
    
    3,033
    
    
    
    39
    
    
    
    5.16
    %
    
    
    17,396
    
    
    
    131
    
    
    
    3.02
    %Other interest-bearing liabilities
    
    
    281
    
    
    
    4
    
    
    
    5.71
    %
    
    
    237
    
    
    
    3
    
    
    
    5.08
    %Junior subordinated debentures
    
    
    10,310
    
    
    
    201
    
    
    
    7.82
    %
    
    
    6,186
    
    
    
    93
    
    
    
    6.03
    %Total interest-bearing liabilities
    
    
    301,112
    
    
    
    1,665
    
    
    
    2.22
    %
    
    
    293,349
    
    
    
    1,142
    
    
    
    1.56
    %Non-interest bearing deposits
    
    
    120,741
    
    
    
    
    
    
    
    
    
    
    
    117,361Other liabilities
    
    
    4,410
    
    
    
    
    
    
    
    
    
    
    
    3,983Shareholders equity
    
    
    32,870
    
    
    
    
    
    
    
    
    
    
    
    29,287Total liabilities & equity
    
    $
    459,133
    
    
    
    
    
    
    
    
    
    
    $
    443,980Cost of funding interest-earning assets (3)
    
    
    
    
    
    
    
    
    
    
    1.61
    %
    
    
    
    
    
    
    
    
    
    
    1.14
    %Net interest income and margin (4)
    
    
    
    
    
    $
    5,519
    
    
    
    5.34
    %
    
    
    
    
    
    $
    5,027
    
    
    
    5.03
    %
 
 (1)
    
    Not computed on a tax-equivalent basis.(2)
    
    Loan (costs) fees included in loan interest income for the three-month periods ended June 30,
2006 and 2005 were $(18,000) and $51,000, respectively.(3)
    
    Total interest expense divided by the average balance of total earning assets.(4)
    
    Net interest income divided by the average balance of total earning assets. 19




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##### Table of Contents



2006 over 2005 change in net interest incomefor the three months ended June 30(in thousands)Volume (1)
    
    
    Rate (2)
    
    
    Mix (3)
    
    
    TotalInterest-earning assets:Loans
    
    $
    455
    
    
    $
    525
    
    
    $
    45
    
    
    $
    1,025Investment securities
    
    
    (112
    )
    
    
    91
    
    
    
    (13
    )
    
    
    (34
    )Federal funds sold
    
    
    18
    
    
    
    1
    
    
    
    5
    
    
    
    24Total interest income
    
    
    361
    
    
    
    617
    
    
    
    37
    
    
    
    1,015Interest-bearing liabilities:NOW deposits
    
    
    16
    
    
    
    179
    
    
    
    146
    
    
    
    341Money market deposits
    
    
    (13
    )
    
    
    14
    
    
    
    (1
    )
    
    
    Savings deposits
    
    
    (12
    )
    
    
    15
    
    
    
    (2
    )
    
    
    1Time deposits
    
    
    (31
    )
    
    
    205
    
    
    
    (10
    )
    
    
    164FHLB advances
    
    
    (108
    )
    
    
    93
    
    
    
    (77
    )
    
    
    (92
    )Other interest-bearing liabilities
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    1Junior subordinated debentures
    
    
    62
    
    
    
    28
    
    
    
    18
    
    
    
    108Total interest expense
    
    
    (85
    )
    
    
    534
    
    
    
    74
    
    
    
    523Net interest income
    
    $
    446
    
    
    $
    83
    
    
    $
    (37
    )
    
    $
    492
 
 (1)
    
    The volume change in net interest income represents the change in average balance divided by
the previous years rate.(2)
    
    The rate change in net interest income represents the change in rate divided by the previous
years average balance.(3)
    
    The mix change in net interest income represents the change in average balance multiplied by
the change in rate. Provision for loan losses.
 Non-interest income.
 20




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##### Table of Contents



For the Three MonthsEnded June 30Dollar
    
    
    Percentage2006
    
    
    2005
    
    
    Change
    
    
    ChangeService charges on deposit accounts
    
    $
    948
    
    
    $
    739
    
    
    $
    209
    
    
    
    28.3
    %Earnings on life insurance policies
    
    
    97
    
    
    
    87
    
    
    
    10
    
    
    
    11.5
    %Merchant processing income
    
    
    70
    
    
    
    70
    
    
    
    
    
    
    
    
    %Official check fees
    
    
    45
    
    
    
    24
    
    
    
    21
    
    
    
    87.5
    %Mortgage loan commission and servicing fees
    
    
    35
    
    
    
    40
    
    
    
    (5
    )
    
    
    -12.5
    %Investment services income
    
    
    33
    
    
    
    58
    
    
    
    (25
    )
    
    
    -43.1
    %Customer service fees
    
    
    32
    
    
    
    28
    
    
    
    4
    
    
    
    14.3
    %Federal Home Loan Bank dividends
    
    
    25
    
    
    
    38
    
    
    
    (13
    )
    
    
    -34.2
    %Printed check fee income
    
    
    20
    
    
    
    13
    
    
    
    7
    
    
    
    53.8
    %Safe deposit box and night depository income
    
    
    16
    
    
    
    16
    
    
    
    
    
    
    
    
    %Other deposit account fees
    
    
    13
    
    
    
    8
    
    
    
    5
    
    
    
    62.5
    %Gain (loss) on sale of real estate and vehicles
    
    
    2
    
    
    
    (29
    )
    
    
    31
    
    
    
    106.9
    %Other
    
    
    12
    
    
    
    18
    
    
    
    (6
    )
    
    
    -33.3
    %Total non-interest income
    
    $
    1,348
    
    
    $
    1,110
    
    
    $
    238
    
    
    
    21.4
    %
 Non-interest expenses.
   21




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##### Table of Contents



For the Three MonthsEnded June 30Dollar
    
    
    Percentage2006
    
    
    2005
    
    
    Change
    
    
    ChangeSalaries and employee benefits
    
    $
    2,329
    
    
    $
    2,263
    
    
    $
    66
    
    
    
    2.9
    %Occupancy and equipment
    
    
    810
    
    
    
    737
    
    
    
    73
    
    
    
    9.9
    %Professional fees
    
    
    181
    
    
    
    197
    
    
    
    (16
    )
    
    
    -8.1
    %Outside service fees
    
    
    175
    
    
    
    66
    
    
    
    109
    
    
    
    165.2
    %Business development
    
    
    149
    
    
    
    138
    
    
    
    11
    
    
    
    8.0
    %Advertising and shareholder relations
    
    
    143
    
    
    
    117
    
    
    
    26
    
    
    
    22.2
    %Telephone and data communication
    
    
    111
    
    
    
    82
    
    
    
    29
    
    
    
    35.4
    %Director compensation
    
    
    87
    
    
    
    81
    
    
    
    6
    
    
    
    7.4
    %Deposit premium amortization
    
    
    75
    
    
    
    75
    
    
    
    
    
    
    
    
    %Armored car and courier
    
    
    67
    
    
    
    96
    
    
    
    (29
    )
    
    
    -30.2
    %Stationery and supplies
    
    
    66
    
    
    
    86
    
    
    
    (20
    )
    
    
    -23.3
    %Postage
    
    
    60
    
    
    
    63
    
    
    
    (3
    )
    
    
    -4.8
    %Loan and collection expense
    
    
    53
    
    
    
    8
    
    
    
    45
    
    
    
    562.5
    %Insurance
    
    
    42
    
    
    
    64
    
    
    
    (22
    )
    
    
    -34.4
    %Other
    
    
    93
    
    
    
    52
    
    
    
    41
    
    
    
    78.8
    %Total non-interest expense
    
    $
    4,441
    
    
    $
    4,125
    
    
    $
    316
    
    
    
    7.7
    %
 FINANCIAL CONDITION
 Loan portfolio composition.
 Nonperforming assets.
  22




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##### Table of Contents



Analysis of allowance for loan losses.
  For the Six MonthsEnded June 30,(in thousands)2006
    
    
    2005Balance at January 1,
    
    $
    3,256
    
    
    $
    2,762Charge-offs:Commercial and agricultural
    
    
    (118
    )
    
    
    (111
    )Real estate mortgage
    
    
    
    
    
    
    Real estate construction
    
    
    
    
    
    
    Consumer
    
    
    (201
    )
    
    
    (233
    )Total charge-offs
    
    
    (319
    )
    
    
    (344
    )Recoveries:Commercial and agricultural
    
    
    42
    
    
    
    19Real estate mortgage
    
    
    
    
    
    
    Real estate construction
    
    
    
    
    
    
    Consumer
    
    
    122
    
    
    
    70Total recoveries
    
    
    164
    
    
    
    89Net charge-offs
    
    
    (155
    )
    
    
    (255
    )Provision for loan losses
    
    
    600
    
    
    
    600Balance at June 30,
    
    $
    3,701
    
    
    $
    3,107Net charge-offs during the six-month period to average loans
    
    
    0.05
    %
    
    
    0.09
    %Allowance for loan losses to total loans
    
    
    1.10
    %
    
    
    1.01
    %
 Investment securities.
 23




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##### Table of Contents



Premises and equipment.
 Deposits.
 Federal Home Loan Bank advances.
 CAPITAL RESOURCES
    24




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##### Table of Contents



June 30, 2006
    
    December 31,2005Amount
    
    Ratio
    
    Amount
    
    RatioTier 1 Leverage RatioPlumas Bancorp and Subsidiary
    
    $
    42,742
    
    
    
    9.3
    %
    
    $
    40,589
    
    
    
    8.5
    %Minimum regulatory requirement
    
    
    18,404
    
    
    
    4.0
    %
    
    
    19,013
    
    
    
    4.0
    %Plumas Bank
    
    
    40,726
    
    
    
    8.9
    %
    
    
    37,611
    
    
    
    7.8
    %Minimum requirement for
Well-Capitalized institution
    
    
    22,852
    
    
    
    5.0
    %
    
    
    24,060
    
    
    
    5.0
    %Minimum regulatory requirement
    
    
    18,282
    
    
    
    4.0
    %
    
    
    19,248
    
    
    
    4.0
    %Tier 1 Risk-Based Capital RatioPlumas Bancorp and Subsidiary
    
    
    42,742
    
    
    
    10.5
    %
    
    
    40,589
    
    
    
    10.3
    %Minimum regulatory requirement
    
    
    16,321
    
    
    
    4.0
    %
    
    
    15,780
    
    
    
    4.0
    %Plumas Bank
    
    
    40,726
    
    
    
    10.0
    %
    
    
    37,611
    
    
    
    9.6
    %Minimum requirement for
Well-Capitalized institution
    
    
    24,446
    
    
    
    6.0
    %
    
    
    23,635
    
    
    
    6.0
    %Minimum regulatory requirement
    
    
    16,297
    
    
    
    4.0
    %
    
    
    15,757
    
    
    
    4.0
    %Total Risk-Based Capital RatioPlumas Bancorp and Subsidiary
    
    
    46,443
    
    
    
    11.4
    %
    
    
    43,845
    
    
    
    11.1
    %Minimum regulatory requirement
    
    
    32,643
    
    
    
    8.0
    %
    
    
    31,560
    
    
    
    8.0
    %Plumas Bank
    
    
    44,428
    
    
    
    10.9
    %
    
    
    40,867
    
    
    
    10.4
    %Minimum requirement for
Well-Capitalized institution
    
    
    40,744
    
    
    
    10.0
    %
    
    
    39,392
    
    
    
    10.0
    %Minimum regulatory requirement
    
    
    32,595
    
    
    
    8.0
    %
    
    
    31,514
    
    
    
    8.0
    %
 LIQUIDITY
     25




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##### Table of Contents



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
      26




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##### Table of Contents



ITEM 4. CONTROLS AND PROCEDURES
   27




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##### Table of Contents



PART II  OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
  
 ITEM 1A RISK FACTORS
  
 ITEM 2. UNREGISTERD SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
  
 ITEM 3. DEFAULTS UPON SENIOR SECURITIES
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  Proposal #1: Election of Directors
  VotesWithheld orVotes For
    
    Against
    
    
    
    
    
    BrokerNominee
    
    Nominee
    
    Nominee
    
    Abstentions
    
    Non-VotesDouglas N. Biddle
    
    
    3,933,993
    
    
    
    0
    
    
    
    1,722
    
    
    
    0Alvin G. Blickenstaff
    
    
    3,934,668
    
    
    
    0
    
    
    
    1,047
    
    
    
    0William E. Elliott
    
    
    3,934,668
    
    
    
    0
    
    
    
    1,047
    
    
    
    0Gerald W. Fletcher
    
    
    3,934,668
    
    
    
    0
    
    
    
    1,047
    
    
    
    0John Flournoy
    
    
    3,934,668
    
    
    
    0
    
    
    
    1,047
    
    
    
    0Arthur C. Grohs
    
    
    3,934,668
    
    
    
    0
    
    
    
    1,047
    
    
    
    0Jerry V. Kehr
    
    
    3,934,668
    
    
    
    0
    
    
    
    1,047
    
    
    
    0Christine McArthur
    
    
    3,934,668
    
    
    
    0
    
    
    
    1,047
    
    
    
    0Terrance J. Reeson
    
    
    3,931,319
    
    
    
    0
    
    
    
    4,396
    
    
    
    0Thomas Watson
    
    
    3,934,668
    
    
    
    0
    
    
    
    1,047
    
    
    
    0Daniel E. West
    
    
    3,934,668
    
    
    
    0
    
    
    
    1,047
    
    
    
    0
 28




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##### Table of Contents



Proposal #2: Amendment and Restatement of the 2001 Stock Option Plan
  VotesWithheld orVotes For
    
    
    Against
    
    
    
    
    
    BrokerProposal
    
    Amendment
    
    Amendment
    
    Abstentions
    
    Non-VotesAmendment and
restatement of 2001
Stock Option Plan
    
    
    1,783,873
    
    
    
    119,442
    
    
    
    79,899
    
    
    
    1,952,501
 
 ITEM 5. OTHER INFORMATION
  
 ITEM 6. EXHIBITS
  3.1
    
    Articles of Incorporation as amended of Registrant included as exhibit 3.1 to
the Registrants Form S-4, File No. 333-84534, which is incorporated by
reference herein.3.2
    
    Bylaws of Registrant included as exhibit 3.2 to the Registrants Form S-4, File
No. 333-84534, which is incorporated by reference herein.3.3
    
    Amendment of the Articles of Incorporation of Registrant dated November 1, 2002.3.4
    
    Amendment of the Articles of Incorporation of Registrant dated August 17, 2005.4
    
    Specimen form of certificate for Plumas Bancorp included as exhibit 4 to the
Registrants Form S-4, File No. 333-84534, which is incorporated by reference
herein.10.1
    
    Executive Salary Continuation Agreement of Andrew J. Ryback dated August 23,
2005, is included as Exhibit 10.1 to the Registrants 8-K filed on October 17,
2005, which is incorporated by this reference herein.10.2
    
    Split Dollar Agreement of Andrew J. Ryback dated August 23, 2005, is included
as Exhibit 10.2 to the Registrants 8-K filed on October 17, 2005, which is
incorporated by this reference herein.10.3
    
    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
    
    Employment Agreement of Douglas N. Biddle dated January 1, 2006 is included as
Exhibit 10.5 to the Registrants 8-K filed on March 15, 2006, which is
incorporated by this reference herein.10.6
    
    Executive Salary Continuation Agreement as amended of Douglas N. Biddle dated
June 2, 1994, is included as Exhibit 10.6 to the Registrants 10-QSB for June
30, 2002, which is incorporated by this reference herein.
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##### Table of Contents



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.10.9
    
    Executive Salary Continuation Agreement as amended of Dennis C. Irvine dated
June 2, 1994, is included as Exhibit 10.9 to the Registrants 10-QSB for
June 30, 2002, which is incorporated by this reference herein.10.10
    
    Split Dollar Agreements of Dennis C. Irvine dated January 24, 2002, is
included as Exhibit 10.10 to the Registrants 10-QSB for June 30, 2002,
which is incorporated by this reference herein.10.11
    
    First Amendment to Executive Salary Continuation Agreement of Robert T. Herr
dated September 15, 2004, is included as Exhibit 10.11 to the Registrants
8-K filed on September 17, 2004, which is incorporated by this reference
herein.10.13
    
    Deferred Fee Agreement as amended of Jerry V. Kehr dated August 19, 1998, is
included as Exhibit 10.13 to the Registrants 10-QSB for June 30, 2002,
which is incorporated by this reference herein.10.14
    
    Amended and Restated Director Retirement Agreement of Jerry V. Kehr dated
April 28, 2000, is included as Exhibit 10.14 to the Registrants 10-QSB for
June 30, 2002, which is incorporated by this reference herein.10.15
    
    Consulting Agreement of Jerry V. Kehr dated May 10, 2000, is included as
Exhibit 10.15 to the Registrants 10-QSB for June 30, 2002, which is
incorporated by this reference herein.10.16
    
    Deferred Fee Agreement of Jerry V. Kehr dated December 21, 2005 is included
as Exhibit 10.16 to the Registrants 8-K filed on March 15, 2006, which is
incorporated by this reference herein.10.18
    
    Amended and Restated Director Retirement Agreement of Daniel E. West dated
May 10, 2000, is included as Exhibit 10.18 to the Registrants 10-QSB for
June 30, 2002, which is incorporated by this reference herein.10.19
    
    Consulting Agreement of Daniel E. West dated May 10, 2000, is included as
Exhibit 10.19 to the Registrants 10-QSB for June 30, 2002, which is
incorporated by this reference herein.10.20
    
    Split Dollar Agreements of Robert T. Herr dated September 15, 2004, is
included as Exhibit 10.20 to the Registrants 8-K filed on September 17,
2004, which is incorporated by this reference herein.10.21
    
    Amended and Restated Director Retirement Agreement of Alvin G. Blickenstaff
dated April 19, 2000, is included as Exhibit 10.21 to the Registrants
10-QSB for June 30, 2002, which is incorporated by this reference herein.10.22
    
    Consulting Agreement of Alvin G. Blickenstaff dated May 8, 2000, is included
as Exhibit 10.22 to the Registrants 10-QSB for June 30, 2002, which is
incorporated by this reference herein.10.24
    
    Amended and Restated Director Retirement Agreement of Gerald W. Fletcher
dated May 10, 2000, is included as Exhibit 10.24 to the Registrants 10-QSB
for June 30, 2002, which is incorporated by this reference herein.10.25
    
    Consulting Agreement of Gerald W. Fletcher dated May 10, 2000, is included
as Exhibit 10.25 to the Registrants 10-QSB for June 30, 2002, which is
incorporated by this reference herein.10.27
    
    Amended and Restated Director Retirement Agreement of Arthur C. Grohs dated
May 9, 2000, is included as Exhibit 10.27 to the Registrants 10-QSB for
June 30, 2002, which is incorporated by this reference herein.
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##### Table of Contents



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.10.30
    
    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.10.33
    
    Amended and Restated Director Retirement Agreement of Terrance J. Reeson
dated April 19, 2000, is included as Exhibit 10.33 to the Registrants
10-QSB for June 30, 2002, which is incorporated by this reference herein.10.34
    
    Consulting Agreement of Terrance J. Reeson dated May 10, 2000, is included
as Exhibit 10.34 to the Registrants 10-QSB for June 30, 2002, which is
incorporated by this reference herein.10.39
    
    Deferred Fee Agreement of Thomas Watson dated March 3, 2001, is included as
Exhibit 10.39 to the Registrants 10-QSB for June 30, 2002, which is
incorporated by this reference herein.10.40
    
    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 on 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, is included as Exhibit 10.44 to the Registrants 10-Q for March 31,
2003, which is incorporated by this reference herein.10.46
    
    1991 Stock Option Plan as amended is included as Exhibit 10.46 to the
Registrants 10-Q for September 30, 2004, which is incorporated by this
reference herein.10.47
    
    Specimen form of Incentive Stock Option Agreement under the 1991 Stock
Option Plan is included as Exhibit 10.47 to the Registrants 10-Q for
September 30, 2004, which is incorporated by this reference herein.10.48
    
    Specimen form of Non-Qualified Stock Option Agreement under the 1991 Stock
Option Plan is included as Exhibit 10.48 to the Registrants 10-Q for
September 30, 2004, which is incorporated by this reference herein.10.59
    
    Director Retirement Agreement of Thomas Watson dated May 1, 2003, is
included as Exhibit 10.59 to the Registrants 10-Q for June 30, 2003, which
is incorporated by this reference herein.10.60
    
    Consulting Agreement of Thomas Watson dated May 1, 2003, is included as
Exhibit 10.60 to the Registrants 10-Q for June 30, 2003, which is
incorporated by this reference herein.10.62
    
    Deferred Fee Agreement of Thomas Watson dated December 23, 2004, is included
as Exhibit 10.62 to the Registrants 8-K filed on January 6, 2005, which is
incorporated by this reference herein.
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##### Table of Contents



10.63
    
    Deferred Fee Agreement of Jerry V. Kehr dated
December 24, 2004, is included as Exhibit 10.63
to the Registrants 8-K filed on January 6,
2005, which is incorporated by this reference
herein.11
    
    Computation of per share earnings appears in the attached 10-Q under Plumas Bancorp and Subsidiary
Notes to Consolidated Financial Statements as Footnote 5  Earnings Per Share Computation.31.1
    
    Rule 13a-14(a) [Section 302] Certification of Principal Financial Officer dated August 9, 200631.2
    
    Rule 13a-14(a) [Section 302] Certification of Principal Executive Officer dated August 9, 2006.32.1
    
    Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002 dated August 9, 2006.32.2
    
    Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002 dated August 9, 2006.
 
 SIGNATURES
  PLUMAS BANCORP
  /s/ Andrew J. RybackAndrew J. RybackExecutive Vice President Chief Financial Officer/s/ Douglas N. BiddleDouglas N. BiddlePresident and Chief Executive Officer 32