About Plumas Bancorp

Plumas Bancorp operates as the bank holding company for Plumas Bank that provides various banking products and services. The bank’s deposit accounts are insured by the Federal Deposit Insurance Corporation (the ‘FDIC’) up to applicable legal limits. The bank is a member of the Federal Reserve System. The bank’s operations are conducted through its administrative office in Quincy, California. The bank’s primary service area covers the Northeastern portion of California, with Lake Tahoe to the south and the Oregon border to the north, and the Northwestern portion of Nevada. The bank, through its branch network, serves Washoe and Carson City counties in Nevada and the contiguous California counties of Plumas, Nevada, Sierra, Placer, Lassen, Modoc, Sutter and Shasta. The branches are located in the California communities of Quincy, Portola, Greenville, Truckee, Fall River Mills, Alturas, Susanville, Chester, Tahoe City, Kings Beach, Redding and Yuba City and in Reno and Carson City, Nevada. On July 1, 2021, the company acquired its Yuba City branch with the acquisition of the bank of Feather River. The bank maintains automated teller machines (‘ATMs’) tied in with major statewide and national networks. In addition to its branch network, the bank operates a lending office specializing in government-guaranteed lending in Auburn, California and commercial/agricultural lending offices located in Chico, California and Klamath Falls, Oregon. The bank’s primary business is servicing the banking needs of these communities. Its marketing strategy stresses its local ownership and commitment to serve the banking needs of individuals living and working in the bank’s primary service areas. The bank primarily generates revenue from loans and investment securities in its portfolio and, to a lesser extent, service fees.With a predominant focus on personal service, the bank positions itself as a multi-community independent bank serving the financial needs of individuals and businesses within the bank’s geographic footprint. The bank’s principal commercial lending services include term real estate, commercial and industrial term loans. In addition, the bank provides government-guaranteed and agricultural loans, as well as credit lines. The bank’s principal retail lending services include consumer, automobile, and home equity loans. The bank provides land development and construction loans on a limited basis. The bank provides Small Business Administration (SBA) loans to qualified borrowers throughout Northern California, and Northern Nevada through its government-guaranteed lending center headquartered in Auburn, California. In 2007, the bank was granted nationwide Preferred Lender status with the U.S. Small Business Administration and the company expects government-guaranteed lending to continue to be an important part of the company’s overall lending operation. The Agricultural Credit Centers located in Alturas, Chico, and Yuba City, California and Klamath Falls, Oregon provide an array of credit services supporting the agricultural activities that are key to the continued economic development of these communities.’ Ag lending’ clients include a full range of individual farming customers, small to medium-sized business farming organizations and corporate farming units. In addition to the company’s lending activities, the company offers a wide range of deposit products for the commercial and retail banking markets, including checking, money market checking, business sweep, public funds sweep, savings, time deposit and retirement accounts, as well as remote deposit, telephone and mobile banking, including mobile deposit, and internet banking with bill-pay options. Interest bearing deposits include higher yielding sweep accounts designed for the company’s commercial customers and for public entities, such as municipalities. The company attracts deposits through its customer-oriented product mix, competitive pricing, convenient locations, mobile and internet banking and remote deposit operations, all provided with a high level of customer service. Most of the bank’s deposits are attracted from individuals, business-related sources, and smaller municipal entities. The company also offers a variety of other products and services complementing the company’s lending and deposit services. These include cashier’s checks, bank-by-mail, ATMs, night depository, safe deposit boxes, direct deposit, electronic funds transfers and other customary banking services. The company offers a Remote Deposit product that allows the company’s business customers to make non-cash deposits remotely from their physical location. This product enables the company to extend its service area because the company can now meet the deposit needs of customers who may not be located within a convenient distance of one of the company’s branch offices. The bank has devoted a substantial amount of time and capital to the improvement of existing bank services. During 2015, the company enhanced its mobile banking services and began offering mobile deposit services, and in 2018, the company began offering the ability for its customers to send money to others from their mobile devices through a linked debit card (‘P2P’ transfers). During 2020, the company added the ability for customers to make loan payments via the company’s website regardless of whether they have a deposit relationship with the company. During 2021, the company increased its online banking product offerings for commercial clients, including enhanced security controls. Additionally, the company created a streamlined login process for the company’s consumer clients in order to instantly access their accounts once enrolled in online banking. In 2022 Plumas Bank upgraded and replaced the company’s fleet of ATM machines. Enhanced and streamlined incoming wire notifications and developed electronic tracking and monitoring for ACH origination and Remote Deposit Capture services and implemented the ability for the company’s commercial online banking clients to originate one-time ACH payments. The bank has a continuing responsibility to provide a wide range of lending and deposit services to both individuals and businesses. The company strives to tailor these services to meet the needs of the communities served by the company and the bank. The company offers various loan products which encourage job growth and support community economic development. Types of loans offered range from personal and commercial loans to real estate, construction, agricultural, automobile and government-guaranteed loans. Many banking decisions are made locally with the goal of maintaining customer satisfaction through the timely delivery of high quality products and services. The company’s business activities are focused in the California counties of Plumas, Nevada, Placer, Lassen, Modoc, Shasta, Sutter and Sierra and Washoe and Carson City counties in Nevada. The company’s strategy is to counter rising competition by providing the company’s own style of community-oriented, personalized service. Investment Portfolio As of December 31, 2022, the company’s investment portfolio included U.S. Treasury securities; U.S. government-sponsored agencies collateralized by mortgage obligations-residential; U.S. Government agency mortgage-backed securities – commercial; and obligations of states and political subdivisions. Supervision and Regulation The company is a registered bank holding company under the bank Holding Company Act of 1956, as amended, and is subject to supervision and regulation by the Board of Governors of the Federal Reserve System (the ‘FRB’). The company is also a bank holding company for purposes of the California Financial Code, so the company and its subsidiaries are also subject to supervision and examination by the California Department of Financial Protection and Innovation (‘DFPI’). As a California-chartered commercial bank that is a member of the Federal Reserve System, the bank is subject to the supervision and regulation of the DFPI and the FRB, as well as certain of the regulations of the FDIC and the Consumer Financial Protection Bureau (‘CFPB’). The bank’s most recent Community Reinvestment Act rating was ‘Satisfactory.’ The bank is subject to certain restrictions imposed by the Federal Reserve Act on extensions of credit to executive officers, directors, principal shareholders (including the company) or any related interest of such persons. The Federal Reserve Act and the FRB’s Regulation W limit the amount of certain loan and investment transactions between the bank and its affiliates, require certain levels of collateral for such loans, and limit the amount of advances to third parties that may be collateralized by the securities of the company or its subsidiaries. The FDIC insures the bank’s deposits, up to prescribed statutory limits, through the Deposit Insurance Fund, currently $250,000 per depositor per institution. While the FRB is the bank’s primary federal regulator, as a federally insured depository institution, the bank is also subject to certain regulations of and supervision by the FDIC. The company is subject to many federal and state consumer protection and privacy statutes and regulations, including but not limited to the following: The Equal Credit Opportunity Act generally prohibits discrimination in any credit transaction, whether for consumer or business purposes, on the basis of race, color, religion, national origin, sex, marital status, age (except in limited circumstances), receipt of income from public assistance programs, or good faith exercise of any rights under the Consumer Credit Protection Act. The Truth in Lending Act (‘TILA’) is designed to ensure that credit terms are disclosed in a meaningful way so that consumers may compare credit terms more readily and knowledgeably. As a result of the TILA, all creditors must use the same credit terminology to express rates and payments, including the annual percentage rate, the finance charge, the amount financed, the total of payments and the payment schedule, among other things. As a result of the Dodd-Frank Act, Regulation Z promulgated under the TILA includes new limits on loan originator compensation for all closed-end mortgages. These changes include, prohibiting certain payments to a mortgage broker or loan officer based on the transaction’s terms or conditions, prohibiting dual compensation and prohibiting a mortgage broker or loan officer from ‘‘steering’’ consumers to transactions not in their interest to increase mortgage broker or loan officer compensation. The Fair Housing Act (‘FH Act’) regulates many practices, including making it unlawful for any lender to discriminate in its housing-related lending activities against any person because of race, color, religion, national origin, sex, handicap or familial status. A number of lending practices have been found by the courts to be, or may be considered, illegal under the FH Act, including some that are not specifically mentioned in the FH Act itself. The Home Mortgage Disclosure Act (‘HMDA’), in response to public concern over credit shortages in certain urban neighborhoods, requires public disclosure of information that shows whether financial institutions are serving the housing credit needs of the neighborhoods and communities in which they are located. The HMDA also includes a ‘fair lending’ aspect that requires the collection and disclosure of data about applicant and borrower characteristics as a way of identifying possible discriminatory lending patterns and enforcing anti-discrimination statutes. The Right to Financial Privacy Act imposes a new requirement for financial institutions to provide new privacy protections to consumers. Financial institutions must provide disclosures to consumers of its privacy policy, and state the rights of consumers to direct their financial institution not to share their nonpublic personal information with third parties. The Real Estate Settlement Procedures Act (‘RESPA’) requires lenders to provide noncommercial borrowers with disclosures regarding the nature and cost of real estate settlements. Also, RESPA prohibits certain abusive practices, such as kickbacks, and places limitations on the amount of escrow accounts. Smaller institutions, including the bank, are generally subject to rules promulgated by the CFPB but continue to be examined and supervised by their primary federal banking regulators for consumer compliance purposes. The DFPI also has authority to bring similar enforcement actions against the bank. History Plumas Bancorp was founded in 1980. The company was incorporated in 1980.