##### 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, 2008
 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
    
    (I.R.S. Employer Identification No.)Organization)35 S. Lindan Avenue, Quincy, California
    
    95971(Address of Principal Executive Offices)
    
    (Zip Code)
 (530) 283-7305
 þ o
  Large Accelerated Filer o
    
    Accelerated Filer þ
    
    Non-Accelerated Filer o
    
    Smaller Reporting Company
þ
 Yes o No þ




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TABLE OF CONTENTS  PART I  FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTSCONDENSED CONSOLIDATED BALANCE SHEETCONDENSED CONSOLIDATED STATEMENT OF INCOMECONDENSED CONSOLIDATED STATEMENT OF CASH FLOWSNOTES TO CONDENSED CONSOLIDATED FINANCIAL 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. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDSITEM 3. DEFAULTS UPON SENIOR SECURITIESITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSITEM 5. OTHER INFORMATIONITEM 6. EXHIBITSSIGNATURESEXHIBIT INDEXExhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2    Table of Contents  
 
 PART I  FINANCIAL INFORMATION
 
 
 ITEM 1. FINANCIAL STATEMENTS
 PLUMAS BANCORP
 
 
 CONDENSED CONSOLIDATED BALANCE SHEET
 (Unaudited)
  June 30,
    
    
    December 31,2008
    
    
    2007AssetsCash and due from banks
    
    $
    15,903
    
    
    $
    13,207Federal funds sold
    
    
    
    
    
    
    Cash and cash equivalents
    
    
    15,903
    
    
    
    13,207Investment securities (fair value of $46,864 at June
30, 2008 and $55,367 at December 31, 2007)
    
    
    46,935
    
    
    
    55,292Loans, less allowance for loan losses of $4,455 at
June 30, 2008 and $4,211 at December 31, 2007 (Notes
3 and 4)
    
    
    352,502
    
    
    
    349,302Premises and equipment, net
    
    
    15,474
    
    
    
    14,666Intangible assets, net
    
    
    908
    
    
    
    1,037Bank owned life insurance
    
    
    9,594
    
    
    
    9,428Real estate and vehicles acquired through foreclosure
    
    
    2,425
    
    
    
    537Accrued interest receivable and other assets
    
    
    9,242
    
    
    
    9,646Total assets
    
    $
    452,983
    
    
    $
    453,115Liabilities and Shareholders EquityDeposits:Non-interest bearing
    
    $
    114,625
    
    
    $
    111,240Interest bearing
    
    
    260,404
    
    
    
    280,700Total deposits
    
    
    375,029
    
    
    
    391,940Short-term borrowings
    
    
    24,500
    
    
    
    7,500Accrued interest payable and other liabilities
    
    
    6,355
    
    
    
    6,226Junior subordinated deferrable interest debentures
    
    
    10,310
    
    
    
    10,310Total liabilities
    
    
    416,194
    
    
    
    415,976Commitments and contingencies (Note 4)
    
    
    
    
    
    
    Shareholders equity (Notes 5, 7 and 10):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  4,819,858 shares at June 30, 2008 and 4,869,130 shares at
December 31, 2007
    
    
    5,158
    
    
    
    5,042Retained earnings
    
    
    31,665
    
    
    
    32,204Accumulated other comprehensive loss (Note 6)
    
    
    (34
    )
    
    
    (107
    )Total shareholders equity
    
    
    36,789
    
    
    
    37,139Total liabilities and shareholders equity
    
    $
    452,983
    
    
    $
    453,115
   2




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##### Table of Contents



PLUMAS BANCORP
 
 
 CONDENSED CONSOLIDATED STATEMENT OF INCOME
 (Unaudited)
  For the Three Months
    
    
    For the Six MonthsEnded June 30,
    
    
    Ended June 30,2008
    
    
    2007
    
    
    2008
    
    
    2007Interest Income:Interest and fees on loans
    
    $
    5,966
    
    
    $
    7,105
    
    
    $
    12,190
    
    
    $
    14,010Interest on investment securities:Taxable
    
    
    358
    
    
    
    447
    
    
    
    769
    
    
    
    966Exempt from Federal income taxes
    
    
    128
    
    
    
    132
    
    
    
    255
    
    
    
    266Interest on Federal funds sold
    
    
    1
    
    
    
    5
    
    
    
    2
    
    
    
    8Total interest income
    
    
    6,453
    
    
    
    7,689
    
    
    
    13,216
    
    
    
    15,250Interest Expense:Interest on deposits
    
    
    1,124
    
    
    
    1,808
    
    
    
    2,670
    
    
    
    3,484Interest on short-term borrowings
    
    
    61
    
    
    
    250
    
    
    
    95
    
    
    
    436Interest on junior subordinated deferrable interest
debentures
    
    
    138
    
    
    
    208
    
    
    
    329
    
    
    
    414Other
    
    
    6
    
    
    
    5
    
    
    
    10
    
    
    
    11Total interest expense
    
    
    1,329
    
    
    
    2,271
    
    
    
    3,104
    
    
    
    4,345Net interest income before provision for loan
losses
    
    
    5,124
    
    
    
    5,418
    
    
    
    10,112
    
    
    
    10,905Provision for Loan Losses
    
    
    470
    
    
    
    125
    
    
    
    990
    
    
    
    375Net interest income after provision for loan losses
    
    
    4,654
    
    
    
    5,293
    
    
    
    9,122
    
    
    
    10,530Non-Interest Income:Service charges
    
    
    969
    
    
    
    902
    
    
    
    1,922
    
    
    
    1,757Earnings on Bank owned life insurance policies
    
    
    104
    
    
    
    104
    
    
    
    207
    
    
    
    205Other
    
    
    317
    
    
    
    289
    
    
    
    587
    
    
    
    605Total non-interest income
    
    
    1,390
    
    
    
    1,295
    
    
    
    2,716
    
    
    
    2,567Non-Interest Expenses:Salaries and employee benefits
    
    
    2,710
    
    
    
    2,640
    
    
    
    5,466
    
    
    
    5,468Occupancy and equipment
    
    
    975
    
    
    
    879
    
    
    
    1,934
    
    
    
    1,789Other
    
    
    1,293
    
    
    
    1,222
    
    
    
    2,514
    
    
    
    2,492Total non-interest expenses
    
    
    4,978
    
    
    
    4,741
    
    
    
    9,914
    
    
    
    9,749Income before provision for income taxes
    
    
    1,066
    
    
    
    1,847
    
    
    
    1,924
    
    
    
    3,348Provision for Income Taxes
    
    
    369
    
    
    
    713
    
    
    
    651
    
    
    
    1,266Net income
    
    $
    697
    
    
    $
    1,134
    
    
    $
    1,273
    
    
    $
    2,082Basic earnings per share (Note 5)
    
    $
    0.14
    
    
    $
    0.23
    
    
    $
    0.26
    
    
    $
    0.42Diluted earnings per share (Note 5)
    
    $
    0.14
    
    
    $
    0.23
    
    
    $
    0.26
    
    
    $
    0.41Cash dividends per share
    
    $
    0.16
    
    
    $
    0.15
    
    
    $
    0.16
    
    
    $
    0.15
   3




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##### Table of Contents



PLUMAS BANCORP
 
 
 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
 For the Six MonthsEnded June 30,2008
    
    
    2007Cash Flows from Operating Activities:Net income
    
    $
    1,273
    
    
    $
    2,082Adjustments to reconcile net income to net cash provided by operating activities:Provision for loan losses
    
    
    990
    
    
    
    375Change in deferred loan origination costs/fees, net
    
    
    164
    
    
    
    197Depreciation and amortization
    
    
    1,014
    
    
    
    1,124Stock-based compensation expense
    
    
    144
    
    
    
    131Amortization of investment security premiums
    
    
    32
    
    
    
    96Accretion of investment security discounts
    
    
    (32
    )
    
    
    (33
    )Net loss on disposal/sale of premises and equipment
    
    
    7
    
    
    
    29Net loss (gain) on sale of vehicles owned
    
    
    11
    
    
    
    (28
    )Earnings on Bank owned life insurance policies
    
    
    (166
    )
    
    
    (166
    )Write-down of other real estate to market value
    
    
    39
    
    
    
    Decrease (increase) in accrued interest receivable and other assets
    
    
    178
    
    
    
    (33
    )Decrease in accrued interest payable and other liabilities
    
    
    (291
    )
    
    
    (589
    )Net cash provided by operating activities
    
    
    3,363
    
    
    
    3,185Cash Flows from Investing Activities:Proceeds from matured and called available-for-sale investment securities
    
    
    7,975
    
    
    
    15,875Proceeds from matured and called held-to-maturity investment securities
    
    
    
    
    
    
    26Purchases of available-for-sale investment securities
    
    
    (993
    )
    
    
    Proceeds from principal repayments from available-for-sale
government-guaranteed mortgage-backed securities
    
    
    1,499
    
    
    
    1,526Net increase in loans
    
    
    (6,509
    )
    
    
    (3,750
    )Proceeds from sale of other vehicles
    
    
    217
    
    
    
    176Purchase of premises and equipment
    
    
    (1,526
    )
    
    
    (647
    )Net cash provided by investing activities
    
    
    663
    
    
    
    13,206
   4




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PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
 For the Six MonthsEnded June 30,2008
    
    
    2007Cash Flows from Financing Activities:Net increase (decrease) in demand, interest bearing and savings
deposits
    
    $
    3,154
    
    
    $
    (23,441
    )Net (decrease) increase in time deposits
    
    
    (20,065
    )
    
    
    21,929Net increase (decrease) in short-term borrowings
    
    
    17,000
    
    
    
    (7,700
    )Net proceeds from exercise of stock options
    
    
    21
    
    
    
    17Payment of cash dividends
    
    
    (770
    )
    
    
    (750
    )Repurchase and retirement of common stock
    
    
    (670
    )
    
    
    (1,054
    )Net cash used in financing activities
    
    
    (1,330
    )
    
    
    (10,999
    )Increase in cash and cash equivalents
    
    
    2,696
    
    
    
    5,392Cash and Cash Equivalents at Beginning of Year
    
    
    13,207
    
    
    
    11,293Cash and Cash Equivalents at End of Period
    
    $
    15,903
    
    
    $
    16,685Supplemental Disclosure of Cash Flow Information:Cash paid during the period for:Interest expense
    
    $
    3,434
    
    
    $
    4,026Income taxes
    
    $
    975
    
    
    $
    1,625Non-Cash Investing Activities:Real estate and vehicles acquired through foreclosure
    
    $
    2,155
    
    
    $
    340Net change in unrealized loss on available-for-sale securities
    
    $
    73
    
    
    $
    87Non-Cash Financing Activities:Common stock retired in connection with the exercise of stock options
    
    $
    
    
    
    $
    49Cumulative effect of adopting EITF 06-04
    
    $
    420
    
    
    $
    
   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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##### Table of Contents



3. LOANS
  June 30,
    
    
    December 31,2008
    
    
    2007Commercial
    
    $
    41,081
    
    
    $
    39,584Agricultural
    
    
    36,311
    
    
    
    35,762Real estate  mortgage
    
    
    143,565
    
    
    
    128,357Real estate  construction and land development
    
    
    70,949
    
    
    
    76,478Consumer
    
    
    64,651
    
    
    
    72,768356,557
    
    
    
    352,949Deferred loan costs, net
    
    
    400
    
    
    
    564Allowance for loan losses
    
    
    (4,455
    )
    
    
    (4,211
    )$
    352,502
    
    
    $
    349,302
 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 30,2008
    
    
    2007
    
    
    2008
    
    
    2007Earnings Per Share:Basic earnings per share
    
    $
    0.14
    
    
    $
    0.23
    
    
    $
    0.26
    
    
    $
    0.42Diluted earnings per share
    
    $
    0.14
    
    
    $
    0.23
    
    
    $
    0.26
    
    
    $
    0.41Weighted Average Number of
Shares Outstanding:
(in thousands)Basic shares
    
    
    4,822
    
    
    
    4,984
    
    
    
    4,841
    
    
    
    4,998Diluted shares
    
    
    4,849
    
    
    
    5,029
    
    
    
    4,868
    
    
    
    5,050
  6. COMPREHENSIVE INCOME
    7. STOCK-BASED COMPENSATION
     8




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WeightedAverageWeighted
    
    
    RemainingAverage
    
    
    ContractualExercise
    
    
    Term
    
    
    Intrinsic ValueShares
    
    
    Price
    
    
    (in years)
    
    
    (in thousands)Options outstanding at December 31, 2007
    
    
    395,772
    
    
    $
    13.37Options granted
    
    
    90,300
    
    
    
    12.40Options exercised
    
    
    (3,200
    )
    
    
    6.59Options cancelled
    
    
    (870
    )
    
    
    15.59Options outstanding at June 30, 2008
    
    
    482,002
    
    
    $
    13.23
    
    
    
    6.0
    
    
    $
    152Options exercisable at June 30, 2008
    
    
    243,411
    
    
    $
    11.96
    
    
    
    5.1
    
    
    $
    152Expected to vest after June 30, 2008
    
    
    238,591
    
    
    $
    14.53
    
    
    
    7.0
    
    
    $
    
   8. INCOME TAXES
     9




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9. FAIR VALUE MEASUREMENT
 Fair Value Measurements
       Fair Value Measurements at June 30, 2008 UsingQuoted Prices inActive Markets for
    
    
    Significant Other
    
    
    SignificantIdentical Assets
    
    
    Observable Inputs
    
    
    Unobservable Inputs(in 000s)
    
    June 30, 2008
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Available-for-sale securities
    
    $
    33,449
    
    
    $
    20,156
    
    
    $
    13,293
    
    
    $
    
   Fair Value Measurements at June 30, 2008 UsingQuoted Prices inActive Markets for
    
    
    Significant Other
    
    
    SignificantIdentical Assets
    
    
    Observable Inputs
    
    
    Unobservable Inputs(in 000s)
    
    June 30, 2008
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Assets:Impaired loans
    
    $
    1,659
    
    
    $
    
    
    
    $
    1,659
    
    
    $
    
  10. STOCK REPURCHASE
   10




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PART I  FINANCIAL INFORMATION
 
 
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
   INTRODUCTION
   CASH DIVIDEND
  CRITICAL ACCOUNTING POLICIES
  OVERVIEW
   11




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RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2008
 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, 2008
    
    
    For the Six Months Ended June 30, 2007Average Balance
    
    
    Interest
    
    
    Yield/
    
    
    Average Balance
    
    
    Interest
    
    
    Yield/(in thousands)
    
    
    (in thousands)
    
    
    Rate
    
    
    (in thousands)
    
    
    (in thousands)
    
    
    RateInterest-earning assets:Loans (1) (2)
    
    $
    351,450
    
    
    $
    12,190
    
    
    
    6.98
    %
    
    $
    356,958
    
    
    $
    14,010
    
    
    
    7.91
    %Investment securities (1)
    
    
    50,779
    
    
    
    1,024
    
    
    
    4.06
    %
    
    
    66,310
    
    
    
    1,232
    
    
    
    3.75
    %Federal funds sold
    
    
    164
    
    
    
    2
    
    
    
    2.45
    %
    
    
    254
    
    
    
    8
    
    
    
    6.35
    %Total interest-earning assets
    
    
    402,393
    
    
    
    13,216
    
    
    
    6.60
    %
    
    
    423,522
    
    
    
    15,250
    
    
    
    7.26
    %Cash and due from banks
    
    
    11,947
    
    
    
    
    
    
    
    
    
    
    
    12,653Other assets
    
    
    31,842
    
    
    
    
    
    
    
    
    
    
    
    32,440Total assets
    
    $
    446,182
    
    
    
    
    
    
    
    
    
    
    $
    468,615Interest-bearing liabilities:NOW deposits
    
    $
    74,518
    
    
    
    323
    
    
    
    0.87
    %
    
    $
    78,522
    
    
    
    713
    
    
    
    1.83
    %Money market deposits
    
    
    36,037
    
    
    
    137
    
    
    
    0.76
    %
    
    
    42,010
    
    
    
    198
    
    
    
    0.95
    %Savings deposits
    
    
    47,404
    
    
    
    83
    
    
    
    0.35
    %
    
    
    52,327
    
    
    
    149
    
    
    
    0.57
    %Time deposits
    
    
    118,912
    
    
    
    2,127
    
    
    
    3.60
    %
    
    
    114,890
    
    
    
    2,424
    
    
    
    4.25
    %Total deposits
    
    
    276,871
    
    
    
    2,670
    
    
    
    1.94
    %
    
    
    287,749
    
    
    
    3,484
    
    
    
    2.44
    %Short-term borrowings
    
    
    7,633
    
    
    
    95
    
    
    
    2.50
    %
    
    
    16,324
    
    
    
    436
    
    
    
    5.39
    %Other interest-bearing liabilities
    
    
    309
    
    
    
    10
    
    
    
    6.51
    %
    
    
    301
    
    
    
    11
    
    
    
    7.36
    %Junior subordinated debentures
    
    
    10,310
    
    
    
    329
    
    
    
    6.42
    %
    
    
    10,310
    
    
    
    414
    
    
    
    8.10
    %Total interest-bearing liabilities
    
    
    295,123
    
    
    
    3,104
    
    
    
    2.12
    %
    
    
    314,684
    
    
    
    4,345
    
    
    
    2.78
    %Non-interest bearing deposits
    
    
    108,142
    
    
    
    
    
    
    
    
    
    
    
    112,658Other liabilities
    
    
    5,570
    
    
    
    
    
    
    
    
    
    
    
    4,669Shareholders equity
    
    
    37,347
    
    
    
    
    
    
    
    
    
    
    
    36,604Total liabilities & equity
    
    $
    446,182
    
    
    
    
    
    
    
    
    
    
    $
    468,615Cost of funding interest-earning assets (3)
    
    
    
    
    
    
    
    
    
    
    1.55
    %
    
    
    
    
    
    
    
    
    
    
    2.07
    %Net interest income and margin (4)
    
    
    
    
    
    $
    10,112
    
    
    
    5.05
    %
    
    
    
    
    
    $
    10,905
    
    
    
    5.19
    %
 
 (1)
    
    Not computed on a tax-equivalent basis.(2)
    
    Net loan costs included in loan interest income for the six-month periods ended June 30, 2008
and 2007 were  $151 thousand and $254 thousand, respectively.(3)
    
    Total annualized interest expense divided by the average balance of total earning assets.(4)
    
    Annualized net interest income divided by the average balance of total earning assets.  14




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2008 over 2007 change in net interest incomefor the six months ended June 30(in thousands)Volume (1)
    
    
    Rate (2)
    
    
    Mix (3)
    
    
    TotalInterest-earning assets:Loans
    
    $
    (217
    )
    
    $
    (1,668
    )
    
    $
    65
    
    
    $
    (1,820
    )Investment securities
    
    
    (289
    )
    
    
    102
    
    
    
    (21
    )
    
    
    (208
    )Federal funds sold
    
    
    (3
    )
    
    
    (5
    )
    
    
    2
    
    
    
    (6
    )Total interest income
    
    
    (509
    )
    
    
    (1,571
    )
    
    
    46
    
    
    
    (2,034
    )Interest-bearing liabilities:NOW deposits
    
    
    (36
    )
    
    
    (375
    )
    
    
    21
    
    
    
    (390
    )Money market deposits
    
    
    (28
    )
    
    
    (39
    )
    
    
    6
    
    
    
    (61
    )Savings deposits
    
    
    (14
    )
    
    
    (58
    )
    
    
    6
    
    
    
    (66
    )Time deposits
    
    
    85
    
    
    
    (376
    )
    
    
    (6
    )
    
    
    (297
    )Short-term borrowings
    
    
    (233
    )
    
    
    (234
    )
    
    
    126
    
    
    
    (341
    )Other interest-bearing liabilities
    
    
    
    
    
    
    (1
    )
    
    
    
    
    
    
    (1
    )Junior subordinated debentures
    
    
    
    
    
    
    (85
    )
    
    
    
    
    
    
    (85
    )Total interest expense
    
    
    (226
    )
    
    
    (1,168
    )
    
    
    153
    
    
    
    (1,241
    )Net interest income
    
    $
    (283
    )
    
    $
    (403
    )
    
    $
    (107
    )
    
    $
    (793
    )
 
 (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 30,
    
    
    Dollar
    
    
    Percentage2008
    
    
    2007
    
    
    Change
    
    
    ChangeService charges on deposit accounts
    
    $
    1,922
    
    
    $
    1,757
    
    
    $
    165
    
    
    
    9.4
    %Earnings on life insurance policies
    
    
    207
    
    
    
    206
    
    
    
    1
    
    
    
    0.5
    %Merchant processing income
    
    
    125
    
    
    
    127
    
    
    
    (2
    )
    
    
    -1.6
    %Gain on sale of loans
    
    
    79
    
    
    
    27
    
    
    
    52
    
    
    
    192.6
    %Investment services income
    
    
    78
    
    
    
    85
    
    
    
    (7
    )
    
    
    -8.2
    %Official check fees
    
    
    63
    
    
    
    80
    
    
    
    (17
    )
    
    
    -21.3
    %Customer service fees
    
    
    57
    
    
    
    60
    
    
    
    (3
    )
    
    
    -5.0
    %Federal Home Loan Bank dividends
    
    
    57
    
    
    
    56
    
    
    
    1
    
    
    
    1.8
    %Loan servicing fees
    
    
    41
    
    
    
    60
    
    
    
    (19
    )
    
    
    -31.7
    %Safe deposit box and night depository income
    
    
    34
    
    
    
    35
    
    
    
    (1
    )
    
    
    -2.9
    %Other deposit account fees
    
    
    17
    
    
    
    21
    
    
    
    (4
    )
    
    
    -19.0
    %Printed check fee income
    
    
    15
    
    
    
    21
    
    
    
    (6
    )
    
    
    -28.6
    %(Loss) gain on sale of vehicles
    
    
    (11
    )
    
    
    28
    
    
    
    (39
    )
    
    
    -139.3
    %Other
    
    
    32
    
    
    
    4
    
    
    
    28
    
    
    
    700.0
    %Total non-interest income
    
    $
    2,716
    
    
    $
    2,567
    
    
    $
    149
    
    
    
    5.8
    %
 Non-interest expenses.
     16




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##### Table of Contents



For the Six MonthsEnded June 30,
    
    
    Dollar
    
    
    Percentage2008
    
    
    2007
    
    
    Change
    
    
    ChangeSalaries and employee benefits
    
    $
    5,466
    
    
    $
    5,468
    
    
    $
    (2
    )
    
    
    
    %Occupancy and equipment
    
    
    1,934
    
    
    
    1,789
    
    
    
    145
    
    
    
    8.1
    %Outside service fees
    
    
    348
    
    
    
    324
    
    
    
    24
    
    
    
    7.4
    %Professional fees
    
    
    307
    
    
    
    389
    
    
    
    (82
    )
    
    
    -21.1
    %Business development
    
    
    237
    
    
    
    286
    
    
    
    (49
    )
    
    
    -17.1
    %Advertising and shareholder relations
    
    
    227
    
    
    
    278
    
    
    
    (51
    )
    
    
    -18.3
    %Telephone and data communication
    
    
    198
    
    
    
    169
    
    
    
    29
    
    
    
    17.2
    %Director compensation
    
    
    175
    
    
    
    174
    
    
    
    1
    
    
    
    0.6
    %Loan and collection expenses
    
    
    165
    
    
    
    87
    
    
    
    78
    
    
    
    89.7
    %Armored car and courier
    
    
    142
    
    
    
    134
    
    
    
    8
    
    
    
    6.0
    %Deposit premium amortization
    
    
    129
    
    
    
    150
    
    
    
    (21
    )
    
    
    -14.0
    %Postage
    
    
    120
    
    
    
    121
    
    
    
    (1
    )
    
    
    -0.8
    %Stationery and supplies
    
    
    116
    
    
    
    152
    
    
    
    (36
    )
    
    
    -23.7
    %Insurance
    
    
    116
    
    
    
    84
    
    
    
    32
    
    
    
    38.1
    %Other
    
    
    234
    
    
    
    144
    
    
    
    90
    
    
    
    62.5
    %Total non-interest expense
    
    $
    9,914
    
    
    $
    9,749
    
    
    $
    165
    
    
    
    1.7
    %
 Provision for income taxes.
 RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2008
 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, 2008
    
    
    For the Three Months Ended June 30, 2007Average Balance
    
    
    Interest
    
    
    Yield/
    
    
    Average Balance
    
    
    Interest
    
    
    Yield/(in thousands)
    
    
    (in thousands)
    
    
    Rate
    
    
    (in thousands)
    
    
    (in thousands)
    
    
    RateInterest-earning assets:Loans (1) (2)
    
    $
    351,679
    
    
    $
    5,966
    
    
    
    6.82
    %
    
    $
    360,240
    
    
    $
    7,105
    
    
    
    7.91
    %Investment securities (1)
    
    
    48,471
    
    
    
    486
    
    
    
    4.03
    %
    
    
    61,968
    
    
    
    579
    
    
    
    3.75
    %Federal funds sold
    
    
    150
    
    
    
    1
    
    
    
    2.68
    %
    
    
    332
    
    
    
    5
    
    
    
    6.04
    %Total interest-earning assets
    
    
    400,300
    
    
    
    6,453
    
    
    
    6.48
    %
    
    
    422,540
    
    
    
    7,689
    
    
    
    7.30
    %Cash and due from banks
    
    
    12,179
    
    
    
    
    
    
    
    
    
    
    
    12,709Other assets
    
    
    32,016
    
    
    
    
    
    
    
    
    
    
    
    32,267Total assets
    
    $
    444,495
    
    
    
    
    
    
    
    
    
    
    $
    467,516Interest-bearing liabilities:NOW deposits
    
    $
    75,759
    
    
    
    136
    
    
    
    0.72
    %
    
    $
    77,457
    
    
    
    343
    
    
    
    1.78
    %Money market deposits
    
    
    35,544
    
    
    
    68
    
    
    
    0.77
    %
    
    
    39,483
    
    
    
    92
    
    
    
    0.93
    %Savings deposits
    
    
    48,130
    
    
    
    40
    
    
    
    0.33
    %
    
    
    51,180
    
    
    
    72
    
    
    
    0.56
    %Time deposits
    
    
    112,521
    
    
    
    880
    
    
    
    3.15
    %
    
    
    120,156
    
    
    
    1,301
    
    
    
    4.34
    %Total deposits
    
    
    271,954
    
    
    
    1,124
    
    
    
    1.66
    %
    
    
    288,276
    
    
    
    1,808
    
    
    
    2.52
    %Short-term borrowings
    
    
    11,209
    
    
    
    61
    
    
    
    2.19
    %
    
    
    18,570
    
    
    
    250
    
    
    
    5.40
    %Other interest-bearing liabilities
    
    
    309
    
    
    
    6
    
    
    
    7.81
    %
    
    
    302
    
    
    
    5
    
    
    
    6.64
    %Junior subordinated debentures
    
    
    10,310
    
    
    
    138
    
    
    
    5.38
    %
    
    
    10,310
    
    
    
    208
    
    
    
    8.09
    %Total interest-bearing liabilities
    
    
    293,782
    
    
    
    1,329
    
    
    
    1.82
    %
    
    
    317,458
    
    
    
    2,271
    
    
    
    2.87
    %Non-interest bearing deposits
    
    
    108,094
    
    
    
    
    
    
    
    
    
    
    
    109,072Other liabilities
    
    
    5,400
    
    
    
    
    
    
    
    
    
    
    
    4,360Shareholders equity
    
    
    37,219
    
    
    
    
    
    
    
    
    
    
    
    36,626Total liabilities & equity
    
    $
    444,495
    
    
    
    
    
    
    
    
    
    
    $
    467,516Cost of funding interest-earning assets (3)
    
    
    
    
    
    
    
    
    
    
    1.33
    %
    
    
    
    
    
    
    
    
    
    
    2.16
    %Net interest income and margin (4)
    
    
    
    
    
    $
    5,124
    
    
    
    5.15
    %
    
    
    
    
    
    $
    5,418
    
    
    
    5.14
    %
 
 (1)
    
    Not computed on a tax-equivalent basis.(2)
    
    Net loan costs included in loan interest income for the three-month periods ended June 30,
2008 and 2007 were
$74 thousand and $107 thousand, respectively.(3)
    
    Total interest expense divided by the average balance of total earning assets.(4)
    
    Net interest income divided by the average balance of total earning assets.  19




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##### Table of Contents



2008 over 2007 change in net interest incomefor the three months ended June 30(in thousands)Volume (1)
    
    
    Rate (2)
    
    
    Mix (3)
    
    
    TotalInterest-earning assets:Loans
    
    $
    (169
    )
    
    $
    (974
    )
    
    $
    4
    
    
    $
    (1,139
    )Investment securities
    
    
    (126
    )
    
    
    44
    
    
    
    (11
    )
    
    
    (93
    )Federal funds sold
    
    
    (3
    )
    
    
    (3
    )
    
    
    2
    
    
    
    (4
    )Total interest income
    
    
    (298
    )
    
    
    (933
    )
    
    
    (5
    )
    
    
    (1,236
    )Interest-bearing liabilities:NOW deposits
    
    
    (8
    )
    
    
    (203
    )
    
    
    4
    
    
    
    (207
    )Money market deposits
    
    
    (9
    )
    
    
    (16
    )
    
    
    1
    
    
    
    (24
    )Savings deposits
    
    
    (4
    )
    
    
    (29
    )
    
    
    1
    
    
    
    (32
    )Time deposits
    
    
    (82
    )
    
    
    (358
    )
    
    
    19
    
    
    
    (421
    )Short-term borrowings
    
    
    (99
    )
    
    
    (148
    )
    
    
    58
    
    
    
    (189
    )Other interest-bearing liabilities
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    1Junior subordinated debentures
    
    
    
    
    
    
    (70
    )
    
    
    
    
    
    
    (70
    )Total interest expense
    
    
    (202
    )
    
    
    (823
    )
    
    
    83
    
    
    
    (942
    )Net interest income
    
    $
    (96
    )
    
    $
    (110
    )
    
    $
    (88
    )
    
    $
    (294
    )
 
 (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 30,
    
    
    Dollar
    
    
    Percentage2008
    
    
    2007
    
    
    Change
    
    
    ChangeService charges on deposit accounts
    
    $
    969
    
    
    $
    902
    
    
    $
    67
    
    
    
    7.4
    %Earnings on life insurance policies
    
    
    104
    
    
    
    104
    
    
    
    
    
    
    
    
    %Merchant processing income
    
    
    62
    
    
    
    67
    
    
    
    (5
    )
    
    
    -7.5
    %Gain on sale of loans
    
    
    61
    
    
    
    
    
    
    
    61
    
    
    
    
    %Investment services income
    
    
    43
    
    
    
    33
    
    
    
    10
    
    
    
    30.3
    %Federal Home Loan Bank dividends
    
    
    29
    
    
    
    25
    
    
    
    4
    
    
    
    16.0
    %Customer service fees
    
    
    28
    
    
    
    30
    
    
    
    (2
    )
    
    
    -6.7
    %Official check fees
    
    
    25
    
    
    
    39
    
    
    
    (14
    )
    
    
    -35.9
    %Loan servicing fees
    
    
    20
    
    
    
    35
    
    
    
    (15
    )
    
    
    -42.9
    %Safe deposit box and night depository income
    
    
    17
    
    
    
    17
    
    
    
    
    
    
    
    
    %Other deposit account fees
    
    
    8
    
    
    
    10
    
    
    
    (2
    )
    
    
    -20.0
    %Printed check fee income
    
    
    4
    
    
    
    6
    
    
    
    (2
    )
    
    
    -33.3
    %(Loss) gain on sale of vehicles
    
    
    (11
    )
    
    
    8
    
    
    
    (19
    )
    
    
    -237.5
    %Other
    
    
    31
    
    
    
    19
    
    
    
    12
    
    
    
    63.2
    %Total non-interest income
    
    $
    1,390
    
    
    $
    1,295
    
    
    $
    95
    
    
    
    7.3
    %
 Non-interest expenses.
     21




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##### Table of Contents



For the Three MonthsEnded June 30,
    
    
    Dollar
    
    
    Percentage2008
    
    
    2007
    
    
    Change
    
    
    ChangeSalaries and employee benefits
    
    $
    2,710
    
    
    $
    2,640
    
    
    $
    70
    
    
    
    2.7
    %Occupancy and equipment
    
    
    975
    
    
    
    879
    
    
    
    96
    
    
    
    10.9
    %Outside service fees
    
    
    178
    
    
    
    168
    
    
    
    10
    
    
    
    6.0
    %Professional fees
    
    
    144
    
    
    
    182
    
    
    
    (38
    )
    
    
    -20.9
    %Advertising and shareholder relations
    
    
    123
    
    
    
    139
    
    
    
    (16
    )
    
    
    -11.5
    %Loan and collection expenses
    
    
    99
    
    
    
    43
    
    
    
    56
    
    
    
    130.2
    %Business development
    
    
    96
    
    
    
    161
    
    
    
    (65
    )
    
    
    -40.4
    %Telephone and data communication
    
    
    96
    
    
    
    66
    
    
    
    30
    
    
    
    45.5
    %Director compensation
    
    
    83
    
    
    
    81
    
    
    
    2
    
    
    
    2.5
    %Armored car and courier
    
    
    74
    
    
    
    68
    
    
    
    6
    
    
    
    8.8
    %Postage
    
    
    62
    
    
    
    61
    
    
    
    1
    
    
    
    1.6
    %Insurance
    
    
    59
    
    
    
    47
    
    
    
    12
    
    
    
    25.5
    %Stationery and supplies
    
    
    58
    
    
    
    75
    
    
    
    (17
    )
    
    
    -22.7
    %Deposit premium amortization
    
    
    54
    
    
    
    75
    
    
    
    (21
    )
    
    
    -28.0
    %Other
    
    
    167
    
    
    
    56
    
    
    
    111
    
    
    
    198.2
    %Total non-interest expense
    
    $
    4,978
    
    
    $
    4,741
    
    
    $
    237
    
    
    
    5.0
    %
 Provision for income taxes.
 FINANCIAL CONDITION
 Fair value. Fair Value Measurements,
 Loan portfolio composition.
  22




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##### Table of Contents



Nonperforming assets.
   Analysis of allowance for loan losses.
  23




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##### Table of Contents



For the Six MonthsEnded June 30,(in thousands)2008
    
    
    2007Balance at January 1,
    
    $
    4,211
    
    
    $
    3,917Charge-offs:Commercial and agricultural
    
    
    (128
    )
    
    
    Real estate mortgage
    
    
    (68
    )
    
    
    Real estate construction
    
    
    (423
    )
    
    
    (45
    )Consumer
    
    
    (216
    )
    
    
    (220
    )Total charge-offs
    
    
    (835
    )
    
    
    (265
    )Recoveries:Commercial and agricultural
    
    
    7
    
    
    
    50Real estate mortgage
    
    
    
    
    
    
    Real estate construction
    
    
    
    
    
    
    Consumer
    
    
    82
    
    
    
    102Total recoveries
    
    
    89
    
    
    
    152Net charge-offs
    
    
    (746
    )
    
    
    (113
    )Provision for loan losses
    
    
    990
    
    
    
    375Balance at June 30,
    
    $
    4,455
    
    
    $
    4,179Net charge-offs during the six-month period to average loans
    
    
    0.21
    %
    
    
    0.03
    %Allowance for loan losses to total loans
    
    
    1.25
    %
    
    
    1.17
    %
 Investment securities.
 Premises and equipment.
 Deposits.
  Short-term borrowings.
  24




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##### Table of Contents



CAPITAL RESOURCES
       25




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##### Table of Contents



June 30, 2008
    
    

December 31, 2007Amount
    
    
    Ratio
    
    
    Amount
    
    
    RatioTier 1 Leverage RatioPlumas Bancorp and Subsidiary
    
    $
    45,915
    
    
    
    10.4
    %
    
    $
    46,209
    
    
    
    10.0
    %Minimum regulatory requirement
    
    
    17,733
    
    
    
    4.0
    %
    
    
    18,439
    
    
    
    4.0
    %Plumas Bank
    
    
    44,911
    
    
    
    10.1
    %
    
    
    45,415
    
    
    
    9.9
    %Minimum requirement for
Well-Capitalized institution
    
    
    22,137
    
    
    
    5.0
    %
    
    
    23,024
    
    
    
    5.0
    %Minimum regulatory requirement
    
    
    17,710
    
    
    
    4.0
    %
    
    
    18,419
    
    
    
    4.0
    %Tier 1 Risk-Based Capital RatioPlumas Bancorp and Subsidiary
    
    
    45,915
    
    
    
    11.6
    %
    
    
    46,209
    
    
    
    11.6
    %Minimum regulatory requirement
    
    
    15,887
    
    
    
    4.0
    %
    
    
    15,881
    
    
    
    4.0
    %Plumas Bank
    
    
    44,911
    
    
    
    11.3
    %
    
    
    45,415
    
    
    
    11.5
    %Minimum requirement for
Well-Capitalized institution
    
    
    23,796
    
    
    
    6.0
    %
    
    
    23,790
    
    
    
    6.0
    %Minimum regulatory requirement
    
    
    15,864
    
    
    
    4.0
    %
    
    
    15,860
    
    
    
    4.0
    %Total Risk-Based Capital RatioPlumas Bancorp and Subsidiary
    
    
    50,426
    
    
    
    12.7
    %
    
    
    50,475
    
    
    
    12.7
    %Minimum regulatory requirement
    
    
    31,775
    
    
    
    8.0
    %
    
    
    31,763
    
    
    
    8.0
    %Plumas Bank
    
    
    49,422
    
    
    
    12.5
    %
    
    
    49,681
    
    
    
    12.5
    %Minimum requirement for
Well-Capitalized institution
    
    
    39,661
    
    
    
    10.0
    %
    
    
    39,651
    
    
    
    10.0
    %Minimum regulatory requirement
    
    
    31,729
    
    
    
    8.0
    %
    
    
    31,720
    
    
    
    8.0
    %
 LIQUIDITY
      26




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##### Table of Contents



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
  
 
 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. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
    Total Numberof SharesPurchased as
    
    
    MaximumTotal
    
    
    
    
    
    Part of
    
    
    Number of SharesNumber of
    
    
    Average
    
    
    Publicly
    
    
    That May Yet BeShares
    
    
    Price Paid
    
    
    Announced
    
    
    Purchased Under thePeriod
    
    Purchased
    
    

per Share (1)
    
    
    Plans or Programs
    
    
    Plans or Programs (2)April 1, 2008 to April 30, 2008
    
    
    9,988
    
    
    $
    13.33
    
    
    
    9,988
    
    
    
    194,202May 1, 2008 to May 31, 2008
    
    
    1,620
    
    
    $
    12.34
    
    
    
    1,620
    
    
    
    192,582June 1, 2008 to June 30, 2008
    
    
    1,054
    
    
    $
    11.49
    
    
    
    1,054
    
    
    
    191,528Total
    
    
    12,662
    
    
    $
    13.05
    
    
    
    12,662
 (1)
    
    Includes commissions.(2)
    
    On December 20, 2007 the Company announced that for 2008 its board of directors authorized a
common stock repurchase plan for up to 244,000 shares, or 5% of the Companys shares outstanding on
December 20, 2007.  28




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##### Table of Contents



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
    
    
    3,946,994
    
    
    
    123,269
    
    
    
    n/a
    
    
    
    n/aAlvin G. Blickenstaff
    
    
    3,977,936
    
    
    
    92,327
    
    
    
    n/a
    
    
    
    n/aWilliam E. Elliott
    
    
    3,979,652
    
    
    
    90,611
    
    
    
    n/a
    
    
    
    n/aGerald W. Fletcher
    
    
    3,978,786
    
    
    
    91,477
    
    
    
    n/a
    
    
    
    n/aJohn Flournoy
    
    
    3,978,786
    
    
    
    91,477
    
    
    
    n/a
    
    
    
    n/aArthur C. Grohs
    
    
    3,978,686
    
    
    
    91,577
    
    
    
    n/a
    
    
    
    n/aJerry V. Kehr
    
    
    3,977,936
    
    
    
    92,327
    
    
    
    n/a
    
    
    
    n/aTerrance J. Reeson
    
    
    3,845,299
    
    
    
    224,964
    
    
    
    n/a
    
    
    
    n/aThomas Watson
    
    
    3,979,542
    
    
    
    90,721
    
    
    
    n/a
    
    
    
    n/aDaniel E. West
    
    
    3,978,786
    
    
    
    91,477
    
    
    
    n/a
    
    
    
    n/a
 
 
 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, is
included as exhibit 3.3 to the Registrants 10-Q for September 30, 2005, which is
incorporated by this reference herein.3.4
    
    
    Amendment of the Articles of Incorporation of Registrant dated August 17, 2005, is
included as exhibit 3.4 to the Registrants 10-Q for September 30, 2005, which is
incorporated by this reference herein.4
    
    
    Specimen form of certificate for Plumas Bancorp included as exhibit 4 to the
Registrants Form S-4, File No. 333-84534, which is incorporated by reference herein.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.
  29




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##### Table of Contents



10.2
    
    
    Split Dollar Agreement of Andrew J. Ryback dated August 23, 2005, is included as
Exhibit 10.2 to the Registrants 8-K filed on October 17, 2005, which is incorporated
by this reference herein.10.5
    
    
    Employment Agreement of Douglas N. Biddle dated 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.10.7
    
    
    Split Dollar Agreements of Douglas N. Biddle dated January 24, 2002, is included as
Exhibit 10.7 to the Registrants 10-QSB for June 30, 2002, which is incorporated by
this reference herein.10.8
    
    
    Director Retirement Agreement of John Flournoy dated March 21, 2007, is included as
Exhibit 10.8 to Registrants 10-Q for March 31, 2007, which is incorporated by this
reference herein.10.9
    
    
    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.
  30




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##### Table of Contents



10.24
    
    
    Amended and Restated Director Retirement Agreement of Gerald W. Fletcher dated May 10,
2000, is included as Exhibit 10.24 to the Registrants 10-QSB for June 30, 2002, which
is incorporated by this reference herein.10.25
    
    
    Consulting Agreement of Gerald W. Fletcher dated May 10, 2000, is included as Exhibit
10.25 to the Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.10.27
    
    
    Amended and Restated Director Retirement Agreement of Arthur C. Grohs dated May 9,
2000, is included as Exhibit 10.27 to the Registrants 10-QSB for June 30, 2002, which
is incorporated by this reference herein.10.28
    
    
    Consulting Agreement of Arthur C. Grohs dated May 9, 2000, is included as Exhibit
10.28 to the Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.10.33
    
    
    Amended and Restated Director Retirement Agreement of Terrance J. Reeson dated April
19, 2000, is included as Exhibit 10.33 to the Registrants 10-QSB for June 30, 2002,
which is incorporated by this reference herein.10.34
    
    
    Consulting Agreement of Terrance J. Reeson dated May 10, 2000, is included as Exhibit
10.34 to the Registrants 10-QSB for June 30, 2002, which is incorporated by this
reference herein.10.39
    
    
    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
    
    
    2001 Stock Option Plan as amended is included as exhibit 99.1 of the Form S-8 filed
July 23, 2002, File No. 333-96957, which is incorporated by this reference herein.10.41
    
    
    Form of Indemnification Agreement, is included as Exhibit 10.41 to the Registrants
10-QSB for June 30, 2002, which is incorporated by this reference herein.10.43
    
    
    Plumas Bank 401(k) Profit Sharing Plan as amended is included as exhibit 99.1 of the
Form S-8 filed February 14, 2003, File No. 333-103229, which is incorporated by this
reference herein.10.44
    
    
    Executive Salary Continuation Agreement of Robert T. Herr dated June 4, 2002, is
included as Exhibit 10.44 to the Registrants 10-Q for March 31, 2003, which is
incorporated by this reference herein.10.46
    
    
    1991 Stock Option Plan as amended is included as Exhibit 10.46 to the Registrants
10-Q for September 30, 2004, which is incorporated by this reference herein.10.47
    
    
    Specimen form of Incentive Stock Option Agreement under the 1991 Stock Option Plan is
included as Exhibit 10.47 to the Registrants 10-Q for September 30, 2004, which is
incorporated by this reference herein.10.48
    
    
    Specimen form of Non-Qualified Stock Option Agreement under the 1991 Stock Option Plan
is included as Exhibit 10.48 to the Registrants 10-Q for September 30, 2004, which is
incorporated by this reference herein.10.49
    
    
    Amended and Restated Plumas Bancorp Stock Option Plan is included as Exhibit 10.49 to
the Registrants 10-Q for September 30, 2006, which is incorporated by this reference
herein.10.59
    
    
    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.
  31




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##### Table of Contents



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.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.10.64
    
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement
for Alvin Blickenstaff adopted on September 19, 2007, is included as Exhibit 10.64 to
the Registrants 8-K filed on September 25, 2007, which is incorporated by this
reference herein.10.65
    
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement
for Arthur C. Grohs adopted on September 19, 2007, is included as Exhibit 10.65 to the
Registrants 8-K filed on September 25, 2007, which is incorporated by this reference
herein.10.66
    
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement
for Jerry V. Kehr adopted on September 19, 2007, is included as Exhibit 10.66 to the
Registrants 8-K filed on September 25, 2007, which is incorporated by this reference
herein.10.67
    
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement
for Terrance J. Reeson adopted on September 19, 2007, is included as Exhibit 10.67 to
the Registrants 8-K filed on September 25, 2007, which is incorporated by this
reference herein.10.68
    
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement
for Thomas Watson adopted on September 19, 2007, is included as Exhibit 10.68 to the
Registrants 8-K filed on September 25, 2007, which is incorporated by this reference
herein.10.69
    
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement
for Daniel E. West adopted on September 19, 2007, is included as Exhibit 10.69 to the
Registrants 8-K filed on September 25, 2007, which is incorporated by this reference
herein.10.70
    
    
    First Amendment to the Plumas Bank Amended and Restated Director Retirement Agreement
for Gerald W. Fletcher adopted on October 9, 2007, is included as Exhibit 10.70 to the
Registrants 10-Q for September 30, 2007, which is incorporated by this reference
herein.11
    
    
    Computation of per share earnings appears in the attached 10-Q under Plumas Bancorp
and Subsidiary Notes to Condensed Consolidated Financial Statements as Footnote 5 
Earnings Per Share.31.1
    
    
    Rule 13a-14(a) [Section 302] Certification of Principal Financial Officer dated August
8, 2008.31.2
    
    
    Rule 13a-14(a) [Section 302] Certification of Principal Executive Officer dated August
8, 2008.32.1
    
    
    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 8,
2008.32.2
    
    
    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 8,
2008.
  32




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##### Table of Contents



PLUMAS BANCORP
  /s/ Andrew J. RybackAndrew J. RybackExecutive Vice President Chief Financial Officer/s/ Douglas N. BiddleDouglas N. BiddlePresident and Chief Executive Officer  33




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##### Table of Contents



EXHIBIT INDEX
 ExhibitNo.
    
    Description11
    
    
    Computation of per share earnings appears in the attached 10-Q under Plumas Bancorp
and Subsidiary Notes to Condensed Consolidated Financial Statements as Footnote 5 
Earnings Per Share.31.1
    
    
    Rule 13a-14(a) [Section 302] Certification of Principal
Financial Officer dated August 8, 2008.31.2
    
    
    Rule 13a-14(a) [Section 302] Certification of Principal
Executive Officer dated August 8, 2008.32.1
    
    
    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 8, 2008.32.2
    
    
    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 8, 2008.
  34