Plumas Bancorp Announces Revised Second Quarter Results

QUINCY, CA--(Marketwire - August 14, 2009) - Plumas Bancorp, (NASDAQ: PLBC), a bank holding
company and the parent company of Plumas Bank, today announced that it has
filed its Report on Form 10-Q for the quarter ended June 30, 2009 with the
Securities and Exchange Commission.

The Company has revised its results compared to those announced in its
press release on July 24, 2009. This revision arises from additional
provisions to the Company's allowance for loan losses due to a recent
reappraisal of real estate collateral for a previously identified impaired
loan in which Plumas Bank is a participant. Plumas Bank received this
appraisal information from the lead bank after issuing the July 24, 2009
press release but before the filing of the Form 10-Q for the quarter ended
June 30, 2009. As required under generally accepted accounting principles,
the Company has recorded an additional provision for loan losses of $2.0
million, offset in part by a tax benefit of $820,000, and revised the
financial statements included with the press release of July 24, 2009.

The Company reported a net loss of $3.2 million or $0.71 per diluted share
in the Form 10-Q for the second quarter of 2009 as compared to a loss of
$2.1 million or $0.47 per diluted share as reported in its press release of
July 24, 2009. For the first six months of 2009, the Company reported a
net loss of $4.5 million or $1.00 per diluted share in the Form 10-Q for
the second quarter of 2009 as compared to a net loss of $3.3 million or
$0.76 per diluted share in its press release of July 24, 2009.

Douglas N. Biddle, president and chief executive officer, commented,
"Subsequent to issuing our press release on July 24, 2009, we received
appraisal information from the lead bank related to a participation loan
that required us to make an adjustment to the provision and allowance for
loan losses. The allowance for loan losses represents management's best
estimate of the inherent probable losses in the loan portfolio. Actual
losses will ultimately be determined by future events that will likely be
linked to the future condition of the general economy and real estate
markets."

Shareholders' Equity

Total shareholders' equity increased by $6.0 million from $36.8 million at
June 30, 2008 to $42.8 million at June 30, 2009. This increase is related
to the issuance of $11.9 million in preferred stock under the government's
Capital Purchase Program ("CPP") during January of 2009, partially offset
by our 2009 loss, common stock cash dividends paid during 2008, preferred
stock dividends during 2009 and common stock repurchases made from April
through December of 2008. No stock repurchases were made in 2009 and none
are anticipated as long as the preferred stock is outstanding.

Book value per common share decreased to $6.54 at June 30, 2009 from $7.63
at June 30, 2008. Plumas Bancorp's total risk-based capital ratio increased
to 14.3% at June 30, 2009 compared to 12.7% and 12.2% at June 30, 2008 and
December 31, 2008, respectively.

Investments, Loans, Deposits and Borrowings

Investment securities increased by $7.8 million from June 30, 2008 as we
invested the funds received from the CPP in government guaranteed
securities. These funds also provide us with additional lending capacity
which we can utilize to support our growth objectives and local economic
expansion. Net loans increased by $1.4 million from $353 million at June
30, 2008 to $354 million at June 30, 2009. During the same period,
deposits increased by $23.8 million to $399 million. This increase in
deposits is primarily related to a new interest bearing transaction account
designed for local public agencies, which we have successfully marketed to
several of the municipalities in our service area. The Company's loan to
deposit ratio decreased from 95.1% at June 30, 2008 to 91.2% at June 30,
2009.

The increase in deposits allowed us to reduce our level of short-term
borrowings which consist of over night borrowings with the Federal Home
Loan Bank of San Francisco ("FHLB"). FHLB borrowings totaled $5 million at
June 30, 2009, down $19.5 million from $24.5 million at June 30, 2008.

Net Interest Income and Net Interest Margin

For the quarter ended June 30, 2009 net interest income before provision
for loan losses totaled $5.0 million, a decline of $126 thousand or 2% from
the $5.1 million earned during the second quarter of 2008. Net interest
margin declined 38 basis points from 5.15% for the quarter ended June 30,
2008 to 4.77% for the quarter ended June 30, 2009. During this same period
there was a 175 basis point decline in the Federal Funds rate and we
experienced a $29.4 million increase in nonperforming loans. While
nonperforming loans are included in the computation of net interest margin,
the vast majority of these loans are not accruing interest. The result is
a decrease in loan yield and a decrease in net interest margin. The
increase in nonperforming loans is the primary reason for the decline in
net interest margin since the effect of the decline in market rates on the
loan portfolio has been mitigated by a decline in our cost of funds. The
Company's cost of funds has benefited from both the maturity of higher rate
time deposits and the decline in market interest rates.

For the six months ended June 30, 2009 net interest income before provision
for loan losses totaled $9.7 million, a decline of $453 thousand from the
$10.1 million earned during the same period in 2008. Net interest margin
declined 35 basis points to 4.70% during the current six-month period from
5.05% for the same period in the prior year.

Asset Quality

Nonperforming loans at June 30, 2009 were $31.3 million (8.60% of total
loans), an increase of $4.6 million from the December 31, 2008 balance of
$26.7 million and $29.4 million over the $1.9 million (0.55% of total
loans) balance at June 30, 2008. The increase in nonperforming loans from
the June 30, 2008 balance is related primarily to six separate loan
relationships which are secured by commercial real estate. These loans are
considered impaired, have a total principal balance at June 30, 2009 of
$23.1 million, specific reserves of $4.4 million and a fair value of $18.7
million. Nonperforming assets (which is comprised of nonperforming loans,
discussed above, plus repossessed vehicles and foreclosed real estate) at
June 30, 2009 were $35.2 million, an increase of $4.2 million over the
balance of $31.0 million at December 31, 2008 and an increase of $30.8
million over the $4.4 million balance at June 30, 2008. Nonperforming
assets include foreclosed real estate of $3.9 million at June 30, 2009
compared to $4.1 million at December 31, 2008 and $2.4 million at June 30,
2008.

The Company increased its provision for loan losses from $990 thousand
during the six months ended June 30, 2008 to $8.75 million during the six
months ended June 30, 2009. As a percentage of total loans, the allowance
for loan losses has increased from 1.25% at June 30, 2008 to 1.97% at
December 31, 2008 and to 2.72% at June 30, 2009.

Net charge-offs during the six months ended June 30, 2009 totaled $6.1
million, an increase of $5.3 million from the $746 thousand incurred during
the first half of 2008. Net charge-offs as an annualized percentage of
average loans totaled 3.39% during the first six months of 2009, up from
0.43% for the six months ended June 30, 2008.

Founded in 1980, Plumas Bank is a locally owned and managed full-service
community bank based in Northeastern California. The Bank operates thirteen
branches located in the counties of Plumas, Lassen, Sierra, Placer, Nevada,
Modoc and Shasta, and it also operates a commercial real estate lending
office in Reno, Nevada. Plumas Bank offers a wide range of financial and
investment services to consumers and businesses and has received nationwide
Preferred Lender status with the U. S. Small Business Administration.
Plumas Bank was named a Premier Bank in 2008 by The Findley Reports.
Additionally, in recognition of the Company's long history of stock
performance, Plumas Bancorp was named to the Keefe, Bruyette & Woods Honor
Roll for banking institutions. For more information on Plumas Bancorp and
Plumas Bank, please visit our website at www.plumasbank.com.

This news release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Exchange Act of 1934, as amended and Plumas Bancorp intends for such
forward-looking statements to be covered by the safe harbor provisions for
forward-looking statements contained in the Private Securities Litigation
Reform Act of 1995. Future events are difficult to predict, and the
expectations described above are necessarily subject to risk and
uncertainty that may cause actual results to differ materially and
adversely.

Forward-looking statements can be identified by the fact that they do not
relate strictly to historical or current facts. They often include the
words "believe," "expect," "anticipate," "intend," "plan," "estimate," or
words of similar meaning, or future or conditional verbs such as "will,"
"would," "should," "could," or "may." These forward-looking statements are
not guarantees of future performance, nor should they be relied upon as
representing management's views as of any subsequent date. Forward-looking
statements involve significant risks and uncertainties and actual results
may differ materially from those presented, either expressed or implied, in
this news release. Factors that might cause such differences include, but
are not limited to: the Company's ability to successfully execute its
business plans and achieve its objectives; changes in general economic and
financial market conditions, either nationally or locally in areas in which
the Company conducts its operations; changes in interest rates; continuing
consolidation in the financial services industry; new litigation or changes
in existing litigation; increased competitive challenges and expanding
product and pricing pressures among financial institutions; legislation or
regulatory changes which adversely affect the Company's operations or
business; loss of key personnel; and changes in accounting policies or
procedures as may be required by the Financial Accounting Standards Board
or other regulatory agencies.

In addition, discussions about risks and uncertainties are set forth from
time to time in the Company's publicly available Securities and Exchange
Commission filings. The Company undertakes no obligation to publicly revise
these forward-looking statements to reflect subsequent events or
circumstances.

PLUMAS BANCORP
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)

As of June 30,
--------------------- Dollar Percentage
2009 2008 Change Change
--------- ---------- --------- ---------
ASSETS
Cash and due from banks $ 11,207 $ 15,903 $ (4,696) -29.5%
Federal funds sold - - - 0.0%
Investment securities 54,739 46,935 7,804 16.6%
Loans, net of allowance for
loan losses 353,914 352,502 1,412 0.4%
Premises and equipment, net 15,193 15,474 (281) -1.8%
Intangible assets, net 735 908 (173) -19.1%
Bank owned life insurance 9,938 9,594 344 3.6%
Real estate and vehicles
acquired through foreclosure 3,962 2,425 1,537 63.4%
Accrued interest receivable and
other assets 13,332 9,242 4,090 44.3%
--------- ---------- ---------
Total assets $ 463,020 $ 452,983 $ 10,037 2.2%
========= ========== =========

LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits $ 398,797 $ 375,029 $ 23,768 6.3%
Short-term borrowings 5,000 24,500 (19,500) -79.6%
Accrued interest payable and
other liabilities 6,131 6,355 (224) -3.5%
Junior subordinated deferrable
interest debentures 10,310 10,310 - 0.0%
--------- ---------- ---------
Total liabilities 420,238 416,194 4,044 1.0%
Shareholders' equity 42,782 36,789 5,993 16.3%
--------- ---------- ---------
Total liabilities and
shareholders' equity $ 463,020 $ 452,983 $ 10,037 2.2%
========= ========== =========

PLUMAS BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)

FOR THE THREE MONTHS Dollar Percentage
ENDED JUNE 30, 2009 2008 Change Change
--------- ---------- --------- ---------

Interest income $ 5,893 $ 6,453 $ (560) -8.7%
Interest expense 895 1,329 (434) -32.7%
--------- ---------- ---------
Net interest income before
provision for loan losses 4,998 5,124 (126) -2.5%
Provision for loan losses 5,850 470 5,380 1144.7%
--------- ---------- ---------
Net interest income after
provision for loan losses (852) 4,654 (5,506) -118.3%
Non-interest income 1,199 1,405 (206) -14.7%
Non-interest expenses 5,917 4,993 924 18.5%
--------- ---------- ---------
Income (loss) before income
taxes (5,570) 1,066 (6,636) -622.5%
Provision (benefit) for income
taxes (2,339) 369 (2,708) -733.9%
--------- ---------- ---------
Net income (loss) $ (3,231) $ 697 $ (3,928) -563.6%
Dividends accrued and discount
accreted on preferred shares (171) - (171) 100.0%
--------- ---------- ---------
Net income (loss) available
to common shareholders $ (3,402) $ 697 $ (4,099) -588.1%
========= ========== =========

Basic earnings (loss) per share $ (0.71) $ 0.14 $ (0.85) -607.1%
========= ========== =========
Diluted earnings (loss) per
share $ (0.71) $ 0.14 $ (0.85) -607.1%
========= ========== =========

FOR THE SIX MONTHS Dollar Percentage
ENDED JUNE 30, 2009 2008 Change Change
--------- ---------- --------- ---------

Interest income $ 11,447 $ 13,216 $ (1,769) -13.4%
Interest expense 1,788 3,104 (1,316) -42.4%
--------- ---------- ---------
Net interest income before
provision for loan losses 9,659 10,112 (453) -4.5%
Provision for loan losses 8,750 990 7,760 783.8%
--------- ---------- ---------
Net interest income after
provision for loan losses 909 9,122 (8,213) -90.0%
Non-interest income 2,365 2,755 (390) -14.2%
Non-interest expenses 11,157 9,953 1,204 12.1%
--------- ---------- ---------
Income (loss) before income
taxes (7,883) 1,924 (9,807) -509.7%
Provision (benefit) for income
taxes (3,376) 651 (4,027) -618.6%
--------- ---------- ---------
Net income (loss) $ (4,507) $ 1,273 $ (5,780) -454.0%
Dividends accrued and discount
accreted on preferred shares (287) - (287) 100.0%
--------- ---------- ---------
Net income (loss) available to
common shareholders $ (4,794) $ 1,273 $ (6,067) -476.6%
========= ========== =========

Basic earnings (loss) per share $ (1.00) $ 0.26 $ (1.26) -484.6%
========= ========== =========
Diluted earnings (loss) per
share $ (1.00) $ 0.26 $ (1.26) -484.6%
========= ========== =========

PLUMAS BANCORP
SELECTED FINANCIAL INFORMATION
(In thousands, except per share data)
(Unaudited)

June 30,
--------------------
2009 2008
--------- ---------
QUARTERLY AVERAGE BALANCES
Assets $ 478,944 $ 444,495
Earning assets $ 420,376 $ 400,300
Loans $ 362,655 $ 351,679
Deposits $ 387,897 $ 380,048
Common equity $ 34,767 $ 37,219
Total equity $ 46,306 $ 37,219

CREDIT QUALITY DATA
Allowance for loan losses $ 9,882 $ 4,455
Allowance for loan losses as a percentage of total
loans 2.72% 1.25%
Nonperforming loans $ 31,276 $ 1,946
Nonperforming assets $ 35,238 $ 4,371
Nonperforming loans as a percentage of total loans 8.60% 0.55%
Nonperforming assets as a percentage of total assets 7.59% 0.96%
Year-to-date net charge-offs $ 6,092 $ 746
Year-to-date net charge-offs as a percentage of
average loans, annualized 3.39% 0.43%

SHARE AND PER SHARE DATA
Basic earnings (loss) per share for the quarter $ (0.71) $ 0.14
Diluted earnings (loss) per share for the quarter $ (0.71) $ 0.14
Quarterly weighted average shares outstanding 4,776 4,822
Quarterly weighted average diluted shares outstanding 4,776 4,849
Basic earnings (loss) per share, year-to-date $ (1.00) $ 0.26
Diluted earnings (loss) per share, year-to-date $ (1.00) $ 0.26
Year-to-date weighted average shares outstanding 4,776 4,841
Year-to-date weighted average diluted shares
outstanding 4,776 4,868
Book value per share $ 6.54 $ 7.63
Common cash dividends paid per share, year-to-date $ 0.00 $ 0.16
Total shares outstanding 4,776 4,820

QUARTERLY KEY FINANCIAL RATIOS
Annualized return on average equity -39.2% 7.5%
Annualized return on average assets -2.71% 0.63%
Net interest margin 4.77% 5.15%
Efficiency ratio 95.5% 76.5%

YEAR-TO-DATE KEY FINANCIAL RATIOS
Annualized return (loss) on average equity -27.4% 6.9%
Annualized return (loss) on average assets -1.94% 0.57%
Net interest margin 4.70% 5.05%
Efficiency ratio 92.8% 77.4%
Loan to Deposit Ratio 91.2% 95.1%
Total Risk-Based Capital Ratio 14.3% 12.7%