##### 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 March 31, 2007
 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 10.8EXHIBIT 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)
 March 31,
    
    
    December 31,2007
    
    
    2006AssetsCash and due from banks
    
    $
    12,457
    
    
    $
    11,293Federal funds sold
    
    
    
    
    
    
    Cash and cash equivalents
    
    
    12,457
    
    
    
    11,293Investment securities (fair value of $66,904 at March 31, 2007 and
$74,841 at December 31, 2006)
    
    
    66,849
    
    
    
    74,795Loans, less allowance for loan losses of $4,150 at March 31, 2007
and $3,917 at December 31, 2006 (Notes 3 and 4)
    
    
    357,485
    
    
    
    351,977Premises and equipment, net
    
    
    15,153
    
    
    
    15,190Intangible assets, net
    
    
    1,262
    
    
    
    1,337Bank owned life insurance
    
    
    9,531
    
    
    
    9,449Accrued interest receivable and other assets
    
    
    9,441
    
    
    
    9,198Total assets
    
    $
    472,178
    
    
    $
    473,239Liabilities and Shareholders EquityDeposits:Non-interest bearing
    
    $
    113,284
    
    
    $
    121,464Interest bearing
    
    
    292,076
    
    
    
    280,712Total deposits
    
    
    405,360
    
    
    
    402,176Short-term borrowings
    
    
    14,800
    
    
    
    20,000Accrued interest payable and other liabilities
    
    
    5,179
    
    
    
    4,901Junior subordinated deferrable interest debentures
    
    
    10,310
    
    
    
    10,310Total liabilities
    
    
    435,649
    
    
    
    437,387Commitments 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  4,999,596 shares at March 31, 2007 and
5,023,205 shares at December 31, 2006
    
    
    4,871
    
    
    
    4,828Retained earnings
    
    
    32,201
    
    
    
    31,716Accumulated other comprehensive loss (Note 6)
    
    
    (543
    )
    
    
    (692
    )Total shareholders equity
    
    
    36,529
    
    
    
    35,852Total liabilities and shareholders equity
    
    $
    472,178
    
    
    $
    473,239
  2




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##### Table of Contents



PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENT OF INCOME
 UnauditedFor the Three MonthsEnded March 31,2007
    
    
    2006Interest Income:Interest and fees on loans
    
    $
    6,905
    
    
    $
    6,004Interest on investment securities:Taxable
    
    
    519
    
    
    
    687Exempt from Federal income taxes
    
    
    134
    
    
    
    131Interest on Federal funds sold
    
    
    2
    
    
    
    117Total interest income
    
    
    7,560
    
    
    
    6,939Interest Expense:Interest on deposits
    
    
    1,675
    
    
    
    1,361Interest on short-term borrowings
    
    
    186
    
    
    
    Interest on junior subordinated deferrable interest debentures
    
    
    206
    
    
    
    183Other
    
    
    6
    
    
    
    4Total interest expense
    
    
    2,073
    
    
    
    1,548Net interest income before provision for loan losses
    
    
    5,487
    
    
    
    5,391Provision for Loan Losses
    
    
    250
    
    
    
    300Net interest income after provision for loan losses
    
    
    5,237
    
    
    
    5,091Non-Interest Income:Service charges
    
    
    855
    
    
    
    859Gain (loss) on sale of loans
    
    
    27
    
    
    
    (4
    )Earnings on Bank owned life insurance policies
    
    
    102
    
    
    
    94Other
    
    
    287
    
    
    
    261Total non-interest income
    
    
    1,271
    
    
    
    1,210Non-Interest Expenses:Salaries and employee benefits
    
    
    2,828
    
    
    
    2,537Occupancy and equipment
    
    
    910
    
    
    
    750Other
    
    
    1,270
    
    
    
    1,121Total non-interest expenses
    
    
    5,008
    
    
    
    4,408Income before provision for income taxes
    
    
    1,500
    
    
    
    1,893Provision for Income Taxes
    
    
    552
    
    
    
    718Net income
    
    $
    948
    
    
    $
    1,175Basic earnings per share (Note 5)
    
    $
    0.19
    
    
    $
    0.24Diluted earnings per share (Note 5)
    
    $
    0.19
    
    
    $
    0.23
  3




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PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
 For the Three MonthsEnded March 31,2007
    
    
    2006Cash Flows from Operating Activities:Net income
    
    $
    948
    
    
    $
    1,175Adjustments to reconcile net income to net cash provided by operating
activities:Provision for loan losses
    
    
    250
    
    
    
    300Change in deferred loan origination costs/fees, net
    
    
    69
    
    
    
    (246
    )Depreciation and amortization
    
    
    564
    
    
    
    482Stock-based compensation expense
    
    
    53
    
    
    
    43Amortization of investment security premiums
    
    
    59
    
    
    
    122Accretion of investment security discounts
    
    
    (16
    )
    
    
    (22
    )Net loss on disposal/sale of premises and equipment
    
    
    27
    
    
    
    1Net gain on sale of other vehicles owned
    
    
    (20
    )
    
    
    Earnings on Bank owned life insurance policies
    
    
    (102
    )
    
    
    (94
    )Expenses on Bank owned life insurance policies
    
    
    20
    
    
    
    17Increase in accrued interest receivable and other assets
    
    
    (419
    )
    
    
    (120
    )Increase in accrued interest payable and other liabilities
    
    
    278
    
    
    
    33Net cash provided by operating activities
    
    
    1,711
    
    
    
    1,691Cash Flows from Investing Activities:Proceeds from matured and called available-for-sale investment securities
    
    
    7,375
    
    
    
    7,346Proceeds from matured and called held-to-maturity investment securities
    
    
    26
    
    
    
    Purchases of held-to-maturity investment securities
    
    
    
    
    
    
    (155
    )Proceeds from principal repayments from available-for-sale
government-guaranteed mortgage-backed securities
    
    
    755
    
    
    
    837Proceeds from principal repayments from held-to-maturity
government-guaranteed mortgage-backed securities
    
    
    
    
    
    
    19Net increase in loans
    
    
    (5,921
    )
    
    
    (1,209
    )Proceeds from sale of other real estate and vehicles
    
    
    89
    
    
    
    54Purchase of premises and equipment
    
    
    (382
    )
    
    
    (2,001
    )Net cash provided by investing activities
    
    
    1,942
    
    
    
    4,891
  4




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PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
 For the Three MonthsEnded March 31,2007
    
    
    2006Cash Flows from Financing Activities:Net (decrease) increase in demand, interest bearing and savings deposits
    
    $
    (11,813
    )
    
    $
    3,028Net increase (decrease) in time deposits
    
    
    14,997
    
    
    
    (5,911
    )Net decrease in short-term borrowings
    
    
    (5,200
    )
    
    
    Net proceeds from exercise of stock options
    
    
    17
    
    
    
    61Repurchase and retirement of common stock
    
    
    (490
    )
    
    
    Net cash used in financing activities
    
    
    (2,489
    )
    
    
    (2,822
    )Increase in cash and cash equivalents
    
    
    1,164
    
    
    
    3,760Cash and Cash Equivalents at Beginning of Year
    
    
    11,293
    
    
    
    24,596Cash and Cash Equivalents at End of Period
    
    $
    12,457
    
    
    $
    28,356Supplemental Disclosure of Cash Flow Information:Cash paid during the period for:Interest expense
    
    $
    1,809
    
    
    $
    1,468Income taxes
    
    $
    75
    
    
    $
    Non-Cash Investing Activities:Real estate and vehicles acquired through foreclosure
    
    $
    94
    
    
    $
    60Net change in unrealized loss on available-for-sale securities
    
    $
    149
    
    
    $
    (99
    )Non-Cash Financing Activities:Common stock retired in connection with the exercise of stock options
    
    $
    49
    
    
    $
    312
  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
  March 31,
    
    
    December 31,2007
    
    
    2006Commercial
    
    $
    35,148
    
    
    $
    36,182Agricultural
    
    
    36,831
    
    
    
    35,577Real estate  mortgage
    
    
    122,987
    
    
    
    116,329Real estate  construction and land development
    
    
    76,305
    
    
    
    75,930Consumer
    
    
    89,251
    
    
    
    90,694360,522
    
    
    
    354,712Deferred loan costs, net
    
    
    1,113
    
    
    
    1,182Allowance for loan losses
    
    
    (4,150
    )
    
    
    (3,917
    )$
    357,485
    
    
    $
    351,977
 4. COMMITMENTS AND CONTINGENCIES
     7




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5. EARNINGS PER SHARE
  For the Three MonthsEnded March 31,2007
    
    2006Earnings Per Share:Basic earnings per share
    
    $
    0.19
    
    
    $
    0.24Diluted earnings per share
    
    $
    0.19
    
    
    $
    0.23Weighted Average Number of Shares Outstanding:
(in thousands)Basic shares
    
    
    5,012
    
    
    
    4,988Diluted shares
    
    
    5,071
    
    
    
    5,091
  6. COMPREHENSIVE INCOME
   7. STOCK-BASED COMPENSATION
  8




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WeightedWeighted
    
    AverageAverage
    
    RemainingExercise
    
    Contractual
    
    Intrinsic ValueShares
    
    Price
    
    Term
    
    (in thousands)Options outstanding at December 31, 2006
    
    
    290,914
    
    
    $
    11.62Options granted
    
    
    155,700
    
    
    
    16.37Options exercised
    
    
    (8,841
    )
    
    
    7.43Options cancelled
    
    
    
    
    
    
    Options outstanding at March 31, 2007
    
    
    437,773
    
    
    $
    13.40
    
    
    
    6.8
    
    
    $
    1,138Options exercisable at March 31, 2007
    
    
    182,309
    
    
    $
    10.70
    
    
    
    5.7
    
    
    $
    966Expected to vest after March 31, 2007
    
    
    255,464
    
    
    $
    15.33
    
    
    
    7.6
    
    
    $
    172
   8. INCOME TAXES
 Accounting for Uncertainty in Income Taxesan Interpretation of
FASB statement No. 109 Accounting for
Income Taxes
 Accounting for Contingencies
  9




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9. RECENT ACCOUNTING DEVELOPMENTS
 Fair Value Option for Financial Assets and Financial Liabilities
 The Fair Value Option for Financial
Assets and Financial Liabilities  Including an Amendment of FASB Statement No. 115
 10. SUBSEQUENT EVENTS
  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 AND ESTIMATES
   11




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OVERVIEW
    RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2007
 Net interest income before provision for loan losses.
    12




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For the Three Months Ended March 31, 2007
    
    
    For the Three Months Ended March 31, 2006Average Balance
    
    
    Interest
    
    
    Yield/
    
    
    Average Balance
    
    
    Interest
    
    
    Yield/(in thousands)
    
    
    (in thousands)
    
    
    Rate
    
    
    (in thousands)
    
    
    (in thousands)
    
    
    RateInterest-earning assets:Loans (1) (2)
    
    $
    353,640
    
    
    $
    6,905
    
    
    
    7.92
    %
    
    $
    321,136
    
    
    $
    6,004
    
    
    
    7.58
    %Investment securities (1)
    
    
    70,700
    
    
    
    653
    
    
    
    3.75
    %
    
    
    93,366
    
    
    
    818
    
    
    
    3.55
    %Federal funds sold
    
    
    175
    
    
    
    2
    
    
    
    4.63
    %
    
    
    10,745
    
    
    
    117
    
    
    
    4.42
    %Total interest-earning assets
    
    
    424,515
    
    
    
    7,560
    
    
    
    7.22
    %
    
    
    425,247
    
    
    
    6,939
    
    
    
    6.62
    %Cash and due from banks
    
    
    12,597
    
    
    
    
    
    
    
    
    
    
    
    14,042Other assets
    
    
    32,616
    
    
    
    
    
    
    
    
    
    
    
    29,721Total assets
    
    $
    469,728
    
    
    
    
    
    
    
    
    
    
    $
    469,010Interest-bearing liabilities:NOW deposits
    
    $
    79,600
    
    
    
    369
    
    
    
    1.88
    %
    
    $
    72,658
    
    
    
    263
    
    
    
    1.47
    %Money market deposits
    
    
    44,566
    
    
    
    106
    
    
    
    0.96
    %
    
    
    64,731
    
    
    
    201
    
    
    
    1.26
    %Savings deposits
    
    
    53,487
    
    
    
    77
    
    
    
    0.58
    %
    
    
    63,945
    
    
    
    116
    
    
    
    0.74
    %Time deposits
    
    
    109,566
    
    
    
    1,123
    
    
    
    4.16
    %
    
    
    97,227
    
    
    
    781
    
    
    
    3.26
    %Short-term borrowings
    
    
    14,053
    
    
    
    186
    
    
    
    5.37
    %
    
    
    
    
    
    
    
    
    
    
    
    %Other interest-bearing liabilities
    
    
    300
    
    
    
    6
    
    
    
    8.11
    %
    
    
    273
    
    
    
    4
    
    
    
    5.94
    %Junior subordinated debentures
    
    
    10,310
    
    
    
    206
    
    
    
    8.10
    %
    
    
    10,310
    
    
    
    183
    
    
    
    7.20
    %Total interest-bearing liabilities
    
    
    311,882
    
    
    
    2,073
    
    
    
    2.70
    %
    
    
    309,144
    
    
    
    1,548
    
    
    
    2.03
    %Non-interest bearing deposits
    
    
    116,284
    
    
    
    
    
    
    
    
    
    
    
    123,102Other liabilities
    
    
    4,982
    
    
    
    
    
    
    
    
    
    
    
    4,642Shareholders equity
    
    
    36,580
    
    
    
    
    
    
    
    
    
    
    
    32,122Total liabilities & equity
    
    $
    469,728
    
    
    
    
    
    
    
    
    
    
    $
    469,010Cost of funding interest-earning assets (3)
    
    
    
    
    
    
    
    
    
    
    1.98
    %
    
    
    
    
    
    
    
    
    
    
    1.48
    %Net interest income and margin (4)
    
    
    
    
    
    $
    5,487
    
    
    
    5.24
    %
    
    
    
    
    
    $
    5,391
    
    
    
    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 March 31,
2007 and 2006 were $177,000 and $84,000, 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. 13




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2007 over 2006 change in net interest incomefor the three months ended March 31(in thousands)Volume (1)
    
    
    Rate (2)
    
    
    Mix (3)
    
    
    TotalInterest-earning assets:Loans
    
    $
    608
    
    
    $
    266
    
    
    $
    27
    
    
    $
    901Investment securities
    
    
    (198
    )
    
    
    44
    
    
    
    (11
    )
    
    
    (165
    )Federal funds sold
    
    
    (115
    )
    
    
    6
    
    
    
    (6
    )
    
    
    (115
    )Total interest income
    
    
    295
    
    
    
    316
    
    
    
    10
    
    
    
    621Interest-bearing liabilities:NOW deposits
    
    
    25
    
    
    
    74
    
    
    
    7
    
    
    
    106Money market deposits
    
    
    (63
    )
    
    
    (47
    )
    
    
    15
    
    
    
    (95
    )Savings deposits
    
    
    (19
    )
    
    
    (24
    )
    
    
    4
    
    
    
    (39
    )Time deposits
    
    
    99
    
    
    
    216
    
    
    
    27
    
    
    
    342Short-term borrowings
    
    
    
    
    
    
    
    
    
    
    186
    
    
    
    186Other interest-bearing liabilities
    
    
    1
    
    
    
    1
    
    
    
    
    
    
    
    2Junior subordinated debentures
    
    
    
    
    
    
    23
    
    
    
    
    
    
    
    23Total interest expense
    
    
    43
    
    
    
    243
    
    
    
    239
    
    
    
    525Net interest income
    
    $
    252
    
    
    $
    73
    
    
    $
    (229
    )
    
    $
    96
 
 (1)
    
    The volume change in net interest income represents the change in average balance multiplied 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.
 14




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For the ThreeMonthsEnded March 31
    
    
    Dollar
    
    
    Percentage2007
    
    
    2006
    
    
    Change
    
    
    ChangeService charges on deposit accounts
    
    $
    855
    
    
    $
    859
    
    
    $
    (4
    )
    
    
    -0.5
    %Earnings on life insurance policies
    
    
    102
    
    
    
    94
    
    
    
    8
    
    
    
    8.5
    %Merchant processing income
    
    
    60
    
    
    
    61
    
    
    
    (1
    )
    
    
    -1.6
    %Investment services income
    
    
    52
    
    
    
    22
    
    
    
    30
    
    
    
    136.4
    %Official check fees
    
    
    41
    
    
    
    35
    
    
    
    6
    
    
    
    17.1
    %Federal Home Loan Bank dividends
    
    
    31
    
    
    
    23
    
    
    
    8
    
    
    
    34.8
    %Customer service fees
    
    
    30
    
    
    
    28
    
    
    
    2
    
    
    
    7.1
    %Gain (loss) on sale of loans
    
    
    27
    
    
    
    (4
    )
    
    
    31
    
    
    
    775.0
    %Mortgage loan commission and servicing fees
    
    
    25
    
    
    
    30
    
    
    
    (5
    )
    
    
    -16.7
    %Gain on sale of real estate and vehicles
    
    
    20
    
    
    
    
    
    
    
    20
    
    
    
    
    %Safe deposit box and night depository income
    
    
    18
    
    
    
    20
    
    
    
    (2
    )
    
    
    -10.0
    %Printed check fee income
    
    
    15
    
    
    
    11
    
    
    
    4
    
    
    
    36.4
    %Other deposit account fees
    
    
    11
    
    
    
    15
    
    
    
    (4
    )
    
    
    -26.7
    %Other
    
    
    (16
    )
    
    
    16
    
    
    
    (32
    )
    
    
    -200.0
    %Total non-interest income
    
    $
    1,271
    
    
    $
    1,210
    
    
    $
    61
    
    
    
    5.0
    %
 Non-interest expense.
   15




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For the ThreeMonthsEnded March 31
    
    
    Dollar
    
    
    Percentage2007
    
    
    2006
    
    
    Change
    
    
    ChangeSalaries and employee benefits
    
    $
    2,828
    
    
    $
    2,537
    
    
    $
    291
    
    
    
    11.5
    %Occupancy and equipment
    
    
    910
    
    
    
    750
    
    
    
    160
    
    
    
    21.3
    %Professional fees
    
    
    207
    
    
    
    164
    
    
    
    43
    
    
    
    26.2
    %Outside service fees
    
    
    156
    
    
    
    142
    
    
    
    14
    
    
    
    9.9
    %Advertising and shareholder relations
    
    
    139
    
    
    
    99
    
    
    
    40
    
    
    
    40.4
    %Business development
    
    
    125
    
    
    
    133
    
    
    
    (8
    )
    
    
    -6.0
    %Telephone and data communication
    
    
    103
    
    
    
    86
    
    
    
    17
    
    
    
    19.8
    %Director compensation
    
    
    93
    
    
    
    88
    
    
    
    5
    
    
    
    5.7
    %Stationery and supplies
    
    
    77
    
    
    
    74
    
    
    
    3
    
    
    
    4.1
    %Deposit premium amortization
    
    
    75
    
    
    
    75
    
    
    
    
    
    
    
    
    %Armored car and courier
    
    
    66
    
    
    
    65
    
    
    
    1
    
    
    
    1.5
    %Postage
    
    
    60
    
    
    
    63
    
    
    
    (3
    )
    
    
    -4.8
    %Loan and collection expenses
    
    
    44
    
    
    
    27
    
    
    
    17
    
    
    
    63.0
    %Insurance
    
    
    37
    
    
    
    42
    
    
    
    (5
    )
    
    
    -11.9
    %Other
    
    
    88
    
    
    
    63
    
    
    
    25
    
    
    
    39.7
    %Total non-interest expense
    
    $
    5,008
    
    
    $
    4,408
    
    
    $
    600
    
    
    
    13.6
    %
 Provision for income taxes.
 FINANCIAL CONDITION
 Loan portfolio composition.
  16




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##### Table of Contents



Nonperforming assets.
  Analysis of allowance for loan losses.
  For the Three MonthsEnded March 31,2007
    
    
    2006Balance at January 1,
    
    $
    3,917
    
    
    $
    3,256Charge-offs:Commercial and agricultural
    
    
    
    
    
    
    (77
    )Real estate mortgage
    
    
    
    
    
    
    Real estate construction
    
    
    
    
    
    
    Consumer
    
    
    (134
    )
    
    
    (98
    )Total charge-offs
    
    
    (134
    )
    
    
    (175
    )Recoveries:Commercial and agricultural
    
    
    46
    
    
    
    19Real estate mortgage
    
    
    
    
    
    
    Real estate construction
    
    
    
    
    
    
    Consumer
    
    
    71
    
    
    
    36Total recoveries
    
    
    117
    
    
    
    55Net charge-offs
    
    
    (17
    )
    
    
    (120
    )Provision for loan losses
    
    
    250
    
    
    
    300Balance at March 31,
    
    $
    4,150
    
    
    $
    3,436Net charge-offs during the three-month period to average loans
    
    
    0.00
    %
    
    
    0.04
    %Allowance for loan losses to total loans
    
    
    1.15
    %
    
    
    1.06
    %
 Investment securities.
 17




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##### Table of Contents



Premises and equipment.
 Deposits.
  Short-term borrowings.
 CAPITAL RESOURCES
     18




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##### Table of Contents



March 31, 2007
    
    December 31,2006Amount
    
    Ratio
    
    Amount
    
    RatioTier 1 Leverage RatioPlumas Bancorp and Subsidiary
    
    $
    45,810
    
    
    
    9.8
    %
    
    $
    45,206
    
    
    
    9.5
    %Minimum regulatory requirement
    
    
    18,739
    
    
    
    4.0
    %
    
    
    18,955
    
    
    
    4.0
    %Plumas Bank
    
    
    44,184
    
    
    
    9.4
    %
    
    
    44,094
    
    
    
    9.3
    %Minimum requirement for
Well-Capitalized institution
    
    
    23,397
    
    
    
    5.0
    %
    
    
    23,669
    
    
    
    5.0
    %Minimum regulatory requirement
    
    
    18,718
    
    
    
    4.0
    %
    
    
    18,935
    
    
    
    4.0
    %Tier 1 Risk-Based Capital RatioPlumas Bancorp and Subsidiary
    
    
    45,810
    
    
    
    11.1
    %
    
    
    45,206
    
    
    
    10.9
    %Minimum regulatory requirement
    
    
    16,572
    
    
    
    4.0
    %
    
    
    16,610
    
    
    
    4.0
    %Plumas Bank
    
    
    44,184
    
    
    
    10.7
    %
    
    
    44,094
    
    
    
    10.6
    %Minimum requirement for
Well-Capitalized institution
    
    
    24,826
    
    
    
    6.0
    %
    
    
    24,885
    
    
    
    6.0
    %Minimum regulatory requirement
    
    
    16,550
    
    
    
    4.0
    %
    
    
    16,590
    
    
    
    4.0
    %Total Risk-Based Capital RatioPlumas Bancorp and Subsidiary
    
    
    49,960
    
    
    
    12.1
    %
    
    
    49,123
    
    
    
    11.8
    %Minimum regulatory requirement
    
    
    33,144
    
    
    
    8.0
    %
    
    
    33,221
    
    
    
    8.0
    %Plumas Bank
    
    
    48,334
    
    
    
    11.7
    %
    
    
    48,011
    
    
    
    11.6
    %Minimum requirement for
Well-Capitalized institution
    
    
    41,376
    
    
    
    10.0
    %
    
    
    41,475
    
    
    
    10.0
    %Minimum regulatory requirement
    
    
    33,101
    
    
    
    8.0
    %
    
    
    33,180
    
    
    
    8.0
    %
 LIQUIDITY
    19




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##### Table of Contents



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK
      20




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##### Table of Contents



ITEM 4. CONTROLS AND PROCEDURES
   
 PART II  OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
  
 ITEM 1A RISK FACTORS
  
 ITEM 2. UNREGISTERD SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
    Total Number ofSharesPurchased asPart of
    
    MaximumTotal
    
    Average
    
    Publicly
    
    Number of SharesNumber of
    
    Price Paid
    
    Announced
    
    That May Yet BeShares
    
    per Share
    
    Plans or
    
    Purchased Under thePeriod
    
    Purchased (1)
    
    (2)
    
    Programs (3)
    
    Plans or Programs (3)January 1, 2007 to January 31, 2007
    
    
    0
    
    
    $
    0.00
    
    
    
    0
    
    
    
    250,000February 1, 2007 to February 28, 2007
    
    
    24,650
    
    
    $
    16.56
    
    
    
    22,500
    
    
    
    227,500March 1, 2007 to March 31, 2007
    
    
    7,800
    
    
    $
    16.68
    
    
    
    7,000
    
    
    
    220,500Total
    
    
    32,450
    
    
    $
    16.59
    
    
    
    29,500
 
 (1)
    
    The difference between total number of shares purchased and the
total number of shares purchased as part of publicly announced
programs is due to repurchases of common stock from certain
employees in connection with their exercise of stock options.(2)
    
    Includes commissions.(3)
    
    On January 22, 2007 the Company announced that its Board of
Directors authorized a common stock repurchase plan. The plan
calls for the repurchase of up to 250,000 shares, or
approximately 5%, of the Companys shares outstanding as of
January 22, 2007. 21




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##### Table of Contents



ITEM 3. DEFAULTS UPON SENIOR SECURITIES
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  
 ITEM 5. OTHER INFORMATION
  22




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##### Table of Contents



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.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, 2007.10.9
    
    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.
 23




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##### Table of Contents



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.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.
 24




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##### Table of Contents



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. 333-96957.10.43
    
    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.10.49
    
    Amended and Restated Plumes 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.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.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 May 9, 2007.31.2
    
    Rule 13a-14(a) [Section 302] Certification of Principal Executive Officer dated May 9, 2007.32.1
    
    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 May 9, 2007.32.2
    
    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 May 9, 2007.
 25




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##### Table of Contents



SIGNATURES
  PLUMAS BANCORP
 
 /s/ Andrew J. RybackAndrew J. RybackExecutive Vice President Chief Financial Officer/s/ Douglas N. BiddleDouglas N. BiddlePresident and Chief Executive Officer
 26