UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 14A

SCHEDULE 14A INFORMATION

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Securities
Exchange Act of 1934 (Amendment No. __)

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LOGO

(PLUMAS BANCORP LOGO)
Dear Shareholder:

You are cordially invited to attend the annual meeting of shareholders of Plumas Bancorp, (the “Company”) which will be held at the Plumas Bank Credit Administration Building located at 32 Central Avenue, Quincy, California, on Wednesday, May 19, 201016, 2012 at 10:30 a.m. At this annual meeting, shareholders will be asked to elect eightnine directors for the next year, and vote on approval of a non-binding advisory vote on the Company’s executive compensation.

compensation and for the ratification of the appointment of Crowe Horwath LLP as our independent auditors for the fiscal year ending December 31, 2012.

Plumas Bancorp is requesting your proxy to vote in favor of all of the nominees for election as directors. The Board of Directors of Plumas Bancorp recommends that you vote “FOR” the election of each of the nominees.

nominees and “FOR” proposals two and three.

The proxy statement contains information about each of the nominees for directors and the Company’s executive compensation.

To ensure that your vote is represented at this important meeting, please sign, date and return the proxy card in the enclosed envelope as promptly as possible. As an alternative to using your paper proxy card to vote, you may also vote by telephone or over the Internetinternet by following the instructions on your proxy card.

Sincerely,

-s- Andrew J. Ryback

LOGO

Andrew J. Ryback

Interim

President and Chief Executive Officer

The date of this proxy statement is April 2, 2010

2012.


Notice of Annual Meeting of Shareholders

Plumas Bancorp

To:

To:
The Shareholders of
Plumas Bancorp
    The Shareholders of

        Plumas Bancorp

Notice is hereby given that, pursuant to its Bylaws and the call of its Board of Directors, the annual meeting of shareholders of Plumas Bancorp will be held at the Plumas Bank Credit Administration Building located at 32 Central Avenue, Quincy, California, on Wednesday, May 19, 201016, 2012 at 10:30 a.m., for the purpose of considering and voting upon the following matters:

 1.
Election of Directors.To elect eight (8)nine (9) persons to serve as directors of the Bancorp until their successors are duly elected and qualified.

Alvin G. BlickenstaffWilliam

James E. Elliott

Gerald W. FletcherJohn Flournoy
Beckwith

 Arthur C. Grohs 

Alvin G. Blickenstaff

Robert J. McClintock

William E. Elliott

 Terrance J. Reeson 

Gerald W. Fletcher

Daniel E. West

John Flournoy

 2.
Advisory Vote on Executive CompensationCompensation..To provide a non-binding advisory vote on the Company’s executive compensation.

 3.Ratification of the Appointment of Independent Auditors.To ratify the appointment of Crowe Horwath LLP as our independent auditors for the fiscal year ending December 31, 2012.

 
4.
Transaction of Other Business.To transact such other business as may properly come before the meeting and any adjournment or adjournments thereof.
The Board of Directors has fixed the close of business on April 1, 2010 as the record date for determination of shareholders entitled to notice of, and the right to vote at, the meeting.
Section 3.3 of the Bylaws of Plumas Bancorp sets forth the nomination procedure for nominations of directors. Section 3.3 provides:
Nominations of Directors. Nominations for election of members of the board may be made by the board or by any holder of any outstanding class of capital stock of the corporation entitled to vote for the election of directors. Notice of intention to make any nominations (other than for persons named in the notice of the meeting called for the election of directors) shall be made in writing and shall be delivered or mailed to the president of the corporation by the later of: (i) the close of business twenty-one (21) days prior to any meeting of shareholders called for the election of directors; or (ii) ten (10) days after the date of mailing of notice of the meeting to shareholders. Such notification shall contain the following information to the extent known to the notifying shareholder: (a) the name and address of each proposed nominee; (b) the principal occupation of each proposed nominee; (c) the number of shares of capital stock of the corporation owned by each proposed nominee; (d) the name and residence address of the notifying shareholder; (e) the number of shares of capital stock of the corporation owned by the notifying shareholder; (f) the number of shares of capital stock of any bank, bank holding company, savings and loan association or other depository institution owned beneficially by the nominee or by notifying shareholder and the identities and locations of any such

The Board of Directors has fixed the close of business on March 30, 2012 as the record date for determination of shareholders entitled to notice of, and the right to vote at, the meeting.


institutions; and (g) whether the proposed nominee has ever been convicted of or pleaded nolo contendere to any criminal offense involving dishonesty or breach of trust, filed a petition on bankruptcy or been adjudged bankrupt. The notification shall be signed by the nominating shareholder and by each nominee, and shall be accompanied by a written consent to be named as a nominee for election as a director from each proposed nominee. Nominations not made in accordance with these procedures shall be disregarded by the then chairperson of the meeting, and upon his or her instructions, the inspectors of election shall disregard all votes cast for each such nominee. The foregoing requirements do not apply to the nomination of a person to replace a proposed nominee who has become unable to serve as a director between the last day for giving notice in accordance with this paragraph and the date of election of directors if the procedure called for in this paragraph was followed with respect to the nomination of the proposed nominee.
You are urged to vote in favor of the election of all of the nominees for directors and to vote “FOR” approval of a non-binding advisory vote on the Company’s executive compensation and “FOR” the ratification of the appointment of Crowe Horwath LLP as our independent auditors for the fiscal year ending December 31, 2012 by signing and returning the enclosed proxy as promptly as possible, whether or not you plan to attend the meeting in person. As an alternative to using your paper proxy card to vote, you may also vote by telephone or over the Internetinternet by following the instructions on your proxy card. If you do attend the meeting, you may then withdraw your proxy. The proxy may be revoked at any time prior to its exercise.

 By Order of the Board of Directors,
 
-s- Terrance J. Reeson

LOGO

Dated: April 2, 20102012 Terrance J. Reeson, Vice Chairman and Secretary


Plumas Bancorp

Proxy Statement

Annual Meeting of Shareholders

May 19, 2010

16, 2012

Plumas Bancorp (the “Company”) is providing this proxy statement to its shareholders in connection with the annual meeting (the “Meeting”) of shareholders to be held at the Plumas Bank Credit Administration Building located at 32 Central Avenue, Quincy, California, on Wednesday, May 19, 201016, 2012 at 10:30 a.m. and at any and all adjournments thereof.

It is expected that the Company will mail this proxy statement and accompanying notice and form of proxy to shareholders on or about April 12, 2010.

10, 2012.

Shareholders may also view thesethis proxy materialsstatement and the 2011 Annual Report to Stockholders on the internet at http://materials.proxyvote.com/729273. The

General Information

Voting By Proxy. Whether or not you plan to attend the annual meeting, you may submit a proxy materialsto vote theshares registered in your namevia internet, telephone or mail as more fully described below:

By Internet: Go tohttp://www.proxyvote.com and follow the instructions. You will need information from your proxy card or electronic delivery notice to submit your proxy.

By Telephone: Call 1.800.690.6903 and follow the voice prompts. You will need information from your proxy card or electronic delivery notice to submit your proxy.

By Mail: Mark your vote, sign your name exactly as it appears on your proxy card, date your proxy card and return it in the envelope provided.

If a bank, broker or other nominee holds your shares, you will receive voting instructions directly from the holder of record. All shares represented by valid proxies that we receive through this solicitation, and that are not revoked, will be voted in accordance with your instructions on the proxy card or as instructed via internet includeor telephone. If you properly submit a proxy without giving specific voting instructions, your shares will be voted in accordance with the noticeBoard’s recommendations “FOR”:

Proposal 1: Election to the Board of the 9 nominees named in this proxy statement;

Proposal 2: Approval of a non-binding advisory vote on the Company’s executive compensation; and

Proposal 3: Ratification of the appointment of Crowe Horwath LLP as our independent auditors for the fiscal year ending December 31, 2012.

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If other matters properly come before the annual meeting, the persons appointed to vote the proxies will vote on such matters in accordance with their best judgment. Such persons also have discretionary authority to vote to adjourn the annual meeting, including for the purpose of shareholders and this proxy statement.

soliciting proxies to vote in accordance with the Board’s recommendations on any of the above items.

Revocability of Proxies

A proxy for use at the meeting is enclosed. Any shareholder who executes and delivers suchProxy Voting

You may revoke your proxy has the right to revoke it at any time before it is exercised by filing with the Secretaryby:

written notice of the Company an instrument revoking it, or a duly executed proxy bearing a later date. The Secretary of the Company isrevocation delivered to Terrance J. Reeson, and any revocation should be filed with him atCorporate Secretary of Plumas Bancorp, at 35 S. Lindan Avenue, Quincy, California 95971. 95971;

a properly executed proxy of a later date mailed to the Company;

casting a new vote by telephone or internet; or

voting in person at the annual meeting.

In addition, the powers of the proxy holders will be revoked if the person executing the proxy is present at the meeting and elects to vote in person. Subject to such revocation or suspension, the proxy holders will vote all shares represented by a properly executed proxy received in time for the meeting in accordance with the instructions on the proxy.

If no instruction is specified by the shareholder with regard to the matter on the proxy to be acted upon, the proxy holders will vote the shares represented by the proxy “FOR” each of the nominees for directors, and “FOR” approval of a non-binding advisory vote on the Company’s executive compensation.compensation and “FOR” the ratification of the appointment of Crowe Horwath LLP as our independent auditors for the fiscal year ending December 31, 2012. If any other matter is presented at the meeting, the proxy holders will vote in accordance with the recommendations of management.

Persons Making the Solicitation

The Board of Directors of the Company is soliciting proxies. The Company will bear the expense of preparing, assembling, printing and mailing this proxy statement and the material used in the solicitation of proxies for the meeting. The Company contemplates that proxies will be solicited principally through the use of the mail, but officers, directors and employees of Plumas Bancorp may solicit proxies personally or by telephone, without receiving special compensation for the solicitation. Although there is no formal agreement to do so, the Company will reimburse banks, brokerage houses and other custodians, nominees and fiduciaries for their reasonable expenses in forwarding these proxy materials to their principals. In addition, the Company may utilize the services of individuals or entities not regularly employed by the Company in connection with the solicitation of proxies, if management of the Company determines that this is advisable.

 

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Voting Securities

Management of the Company has fixed April 1, 2010March 30, 2012 as the record date for purposes of determining the shareholders entitled to notice of, and to vote at, the meeting. On April 1, 2010,March 30, 2012, there were 4,776,339 shares of Plumas Bancorp’s common stock issued and outstanding. Each holder of Plumas Bancorp’s common stock will be entitled to one vote for each share of the Company’s common stock held of record on the books of Plumas Bancorp as of the record date. In connection with the election of directors, shares may be voted cumulatively if a shareholder present at the meeting gives notice at the meeting, prior to the voting for election of directors, of his or her intention to vote cumulatively. If any shareholder of Plumas Bancorp gives that notice, then all shareholders eligible to vote will be entitled to cumulate their shares in voting for election of directors. Cumulative voting allows a shareholder to cast a number of votes equal to the number of shares held in his or her name as of the record date, multiplied by the number of directors to be elected. These votes may be cast for any one nominee, or may be distributed among as many nominees as the shareholder sees fit. If cumulative voting is declared at the meeting, votes represented by proxies delivered pursuant to this proxy statement may be cumulated in the discretion of the proxy holders, in accordance with management’s recommendation.

The effect of broker nonvotesnon-votes is that such votes are not counted as being voted; however, such votes are counted for purposes of determining a quorum. The effect of a vote of abstention on any matter is that such vote is not counted as a vote for or against the matter, but is counted as an abstention.

Shareholdings of Certain Beneficial Owners and Management

Management of Plumas Bancorp knows of no person who owns, beneficially or of record, either individually or together with associates, 5 percent or more of the outstanding shares of the Company’s common stock, except as set forth in the table below. The following table sets forth, as of March 29, 2010,23, 2012, the number and percentage of shares of Plumas Bancorp’s outstanding common stock beneficially owned, directly or indirectly, by principal shareholders, by each of the Company’s directors, our executive officers named in the Summary Compensation Table belowcontained in this Proxy and by the directors and executive officers of the Company as a group. The shares “beneficially owned” are determined under the Securities and Exchange Commission Rules, and do not necessarily indicate ownership for any other purpose. In general, beneficial ownership includes shares over which the director, named executive officer or principal shareholder has sole or shared voting or investment power and shares which such person has the right to acquire within 60 days of March 29, 2010.23, 2012. Unless otherwise indicated, the persons listed below have sole voting and investment powers of the shares beneficially owned or acquirable by exercise of stock options. Management is not aware of any arrangements, which may result in a change of control of Plumas Bancorp.

 

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   Amount and Nature of    

Beneficial Owner

  Beneficial Ownership (a)  Percent of Class (a) 

Principal Shareholders that own 5% or more:

   

Cortopassi (b)

   509,967    10.7  

Directors and Named Executive Officers:

   

Andrew J. Ryback, President and CEO

   58,575(1)   1.2  

Monetta R. Dembosz, EVP- Operations Manager of Plumas Bank

   36,616(2)   *  

B. J. North, EVP—Retail Banking

   3,600(3)   *  

Daniel E. West, Director and Chairman of the Board

   76,579(4)   1.6  

Terrance J. Reeson, Director, Vice Chairman of the Board and Secretary of the Board

   93,680(5)   2.0  

Alvin G. Blickenstaff, Director

   83,668(6)   1.7  

William E. Elliott, Director

   80,210(7)   1.7  

Gerald W. Fletcher, Director

   43,736(8)   *  

John Flournoy, Director

   40,625(9)   *  

Arthur Grohs, Director

   43,098(10)   *  

Robert J. McClintock

   66,169(11)   1.4  

All 13 Directors and Executive Officers as a Group

   683,384    13.8  

         
  Amount and Nature of    
Beneficial Owner Beneficial Ownership (a)  Percent of Class (a) 
Principal Shareholders that own 5% or more:        
         
Cortopassi (b)  502,367   10.5 
         
Directors and Named Executive Officers:        
 
Douglas N. Biddle (Director and Former President and CEO)  108,439(1)  2.2 
Robert T. Herr, EVP and Loan Administrator  33,250(2)  * 
B. J. North, EVP of Retail Banking  0   * 
Daniel E. West, Director and Chairman of the Board  159,939(3)  3.3 
Terrance J. Reeson, Director, Vice Chairman of the Board and Secretary of the Board  191,091(4)  4.0 
Alvin G. Blickenstaff, Director  181,531(5)  3.8 
William E. Elliott, Director  78,660(6)  1.6 
Gerald W. Fletcher, Director  41,978(7)  * 
John Flournoy, Director  11,075(8)  * 
Arthur Grohs, Director  140,509(9)  2.9 
Robert J. McClintock  17,990(10)  * 
         
All 13 Directors and Executive Officers as a Group  738,777   14.9 
*Less than one percent
(a)Includes 184,809168,212 shares subject to options held by the directors and executive officers that were exercisable within 60 days of March 29, 2010.23, 2012. These are treated as issued and outstanding for the purpose of computing the percentage of each director, named executive officer and the directors and executive officers as a group, but not for the purpose of computing the percentage of class owned by any other person, including principal shareholders.
(b)Two Cortopassi controlled entities have beneficial ownership over a total of 502,367509,967 shares of Plumas Bancorp. The Cortopassi Family Trust owns 181,810189,410 shares of Plumas Bancorp, while Cortopassi Partners, L.P. owns 320,557 shares of Plumas Bancorp. Dean A. Cortopassi is the Trustee of the Cortopassi Family Trust and is also President of San Tomo, Inc., the general partner of Cortopassi Partners, L.P. Mr. Cortopassi disclaims beneficial ownership of the shares held by Cortopassi Family Trust and Cortopassi Partners, L.P. except to the extent of his pecuniary or partnership interests therein. The address of the Limited PartnershipCortopassi entities is 11292 North Alpine Road, Stockton, California 95212.

 

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(1)Mr. BiddleRyback has sole voting and the Company ended their employment relationship on March 26, 2010. Mr. Biddle hasinvestment powers as to 18,026 shares and shared voting and investment powers as to 40,45510,000 shares. Mr. Ryback has 30,549 shares acquirable by exercise of stock options.
(2)Ms. Dembosz has sole voting and investment powers as to 9,6794,608 shares and soleshared voting and investment powers but no voting powers as to 12,547 shares. He also4,359 shares and has 45,75827,649 shares acquirable by exercise of stock options.
(2)(3)Mr. HerrMs. North has 33,2503,600 shares acquirable by exercise of stock options.
(3)(4)Mr. West has sole voting and investment powers as to 7,125 shares, shared voting and investment powers as to 20,92332,754 shares, sole voting powers but shared investment powers as to 16,794 shares and no voting or investment powers as to 3,6375,857 shares. Mr. West, along with Messrs. Blickenstaff, Grohs and Reeson, are members of the Corporate Governance Committee and have shared voting powers as to 98,961 shares held by the Plumas Bank 401k Plan, of which beneficial ownership of 98,961 shares are disclaimed by Mr. West. He also has 12,49914,049 shares acquirable by exercise of stock options.
(4)(5)Mr. Reeson has shared voting and investment powers as to 71,97574,771 shares and sole voting and investing powers as to 7,6564,860 shares. Mr. Reeson, along with Messrs. Blickenstaff, Grohs and West, are members of the Corporate Governance Committee and have shared voting powers as to 98,961 shares held by the Plumas Bank 401k Plan, of which beneficial ownership of 98,961 shares are disclaimed by Mr. Reeson. He also has 12,49914,049 shares acquirable by exercise of stock options.
(5)(6)Mr. Blickenstaff has shared voting and investment powers as to 67,17267,202 shares, sole voting and investing powers as to 5,6735,191 shares and no voting or investment powers as to 2,851 shares. Mr. Blickenstaff, along with Messrs. Reeson, Grohs and West, are members of the Corporate Governance Committee and have shared voting powers as to 98,961 shares held by the Plumas Bank 401k Plan, of which beneficial ownership of 98,961 shares are disclaimed by Mr. Blickenstaff. He also has 6,8748,424 shares acquirable by exercise of stock options.
(6)(7)Mr. Elliott has shared voting and investment powers as to 66,867 shares and sole voting and investment powers as to 10,543 shares.77,410. He also has 1,2502,800 shares acquirable by exercise of stock options.
(7)(8)Mr. Fletcher has shared voting and investment powers as to 30,04630,209 shares and sole voting and investing powers as to 45 shares. He also has 11,93213,482 shares acquirable by exercise of stock options.
(8)(9)Mr. Flournoy has sole voting and investment powers as to 7,45034,950 shares and no voting or investment powers as to 375 shares. He also has 3,2505,300 shares acquirable by exercise of stock options.
(9)(10)Mr. Grohs has shared voting and investment powers as to 28,478 shares and no voting or investment powers as to 571 shares. Mr. Grohs, along with Messrs. Reeson, Blickenstaff and West, are members of the Corporate Governance Committee and have shared voting powers as to 98,961 shares held by the Plumas Bank 401k Plan, of which beneficial ownership of 98,961 shares are disclaimed by Mr. Grohs. He also has 12,49914,049 shares acquirable by exercise of stock options.
(10)(11)Mr. McClintock has sole voting and investment powers as to 17,99027,310 shares and shared voting and investment powers as to 38,059 shares. He also has 800 shares acquirable by exercise of stock options.

 

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Section 16(a) Beneficial Ownership Compliance

Section 16(a) of the Securities Exchange Act of 1934 requires Plumas Bancorp’s directors and certain executive officers and persons who own more than ten percent (10%) of a registered class of the Company’s equity securities (collectively, the “Reporting Persons”), to file reports of ownership and changes in ownership with the Securities and Exchange Commission (the “SEC”). The Reporting Persons are required by SEC regulation to furnish the Bancorp with copies of all Section 16(a) forms they file.

Based solely upon a review of Forms 3, 4 and 5 and amendments thereto furnished to the Company during and with respect to its 20092011 fiscal year, no director, executive officer or beneficial owner of 10% or more of the Company’s common stock failed to file, on a timely basis, reports required during or with respect to 20092011 by Section 16(a) of the Securities Exchange Act of 1934, as amended, except for the Cortopassi Family Trust which inadvertently failed to file one timely report on Form 3 reporting Securities Beneficially Owned and one timely report on Form 4 with respect to twelve transactions.

one transaction.

 

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Election of Directors

The persons named below, all of whom, with the exception of Mr. Beckwith, are current members of the Board of Directors (the “Board”), will be nominated for election as directors at the Meeting to serve until the 20112012 Annual Meeting of Shareholders and until their successors are elected and have qualified. Votes of the proxy holders will be cast in such a manner as to effect the election of all 89 nominees, as appropriate. The 89 nominees for directors receiving the most votes will be elected directors. In the event that any of the nominees should be unable to serve as a director, it is intended that the Proxy will be voted for the election of such substitute nominee, if any, as shall be designated by the Board. The Board has no reason to believe that any of the nominees named below will be unable to serve if elected. However, in the case of Mr. Beckwith, his appointment to the Board is subject to the review and non disapproval of the Federal Deposit Insurance Corporation and the California Department of Financial Institutions. Additional nominations for directors may only be made by complying with the nomination procedures which are included in the Notice of Annual Meeting of Shareholders accompanying this Proxy Statement.

The following table sets forth the names of, and certain information concerning, the persons to be nominated by the Board for election as directors of Plumas Bancorp.

           
      Year First  
Name and Title     Appointed  
Other than Director Age Director Principal Occupation During the Past Five Years
           
Daniel E. West
Chairman of the Board
  56   1997  President, Graeagle Land & Water Co., a land management company. President, Graeagle Water Co, a private water utility, Graeagle, CA.
           
Terrance J. Reeson
Vice Chairman and
Secretary of the Board
  65   1984  Retired. Formerly with the U.S. Forestry Service, Quincy, CA.
           
Alvin G. Blickenstaff  74   1988  Farmer and Rancher, partner in Blickenstaff Ranch, Janesville, CA.
           
William E. Elliott  69   1987  Retired. Formerly President and CEO of Plumas Bancorp and Plumas Bank, Quincy, CA.
           
Gerald W. Fletcher  67   1988  Forest Products Wholesaler, Susanville, CA.
           
John Flournoy  65   2005  Rancher and Chief Financial Officer of Likely Land and Livestock Corporation. Likely, CA.
           
Arthur C. Grohs  73   1988  Retired. Former Retailer, Sparks, NV.
           
Robert J. McClintock  52   2008  Certified Public Accountant, co-owner of McClintock Accountancy Corporation, Tahoe City, CA.

       Year First    
Name and Title      Appointed    

Other than Director

  Age   Director   

Principal Occupation During the Past Five Years

Daniel E. West

Chairman of the Board

   58     1997    President, Graeagle Land & Water Co., a land management company. President, Graeagle Water Co, a private water utility, Graeagle, CA.

Terrance J. Reeson

Vice Chairman and Secretary of the Board

   67     1984    Retired. Formerly with the U.S. Forestry Service, Quincy, CA.

James E. Beckwith

   54     N/A    President and Chief Executive Officer of Five Star Bank, Sacramento, CA.

Alvin G. Blickenstaff

   76     1988    Farmer and Rancher, partner in Blickenstaff Ranch, Janesville, CA.

William E. Elliott

   71     1987    Retired. Formerly President and CEO of Plumas Bancorp and Plumas Bank, Quincy, CA.

Gerald W. Fletcher

   69     1988    Forest Products Wholesaler, Susanville, CA.

John Flournoy

   67     2005    Rancher and Chief Financial Officer of Likely Land and Livestock Corporation, Likely, CA.

Arthur C. Grohs

   75     1988    Retired. Former Retailer, Sparks, NV.

Robert J. McClintock

   54     2008    Certified Public Accountant, co-owner of McClintock Accountancy Corporation, Tahoe City, CA.

 

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The following is a brief discussion of the experience and qualifications of each nominee that the Corporate Governance Committee considered, in light of the Company’s business and structure, in nominating them for service as Directors:

Daniel E. West

Chairman of the Board

Director since 1997

Mr. Daniel E. West has lived in Graeagle, California since 1958. He is president of Graeagle Land and Water Company a land management company and Graeagle Water Company.Company private water utility. Mr. West is a managing member of Graeagle Timber Company, LLC and is a member of the Feather River College Foundation. He also serves as a director on the boards of Graeagle Fire Protection District and California Water Association. He was the Plumas County Planning Commissioner for 12 years. Mr. West’s valuable business acumen, his extensive experience on various and diverse boards, and his deep ties to his community highly qualify him for service as a board director and chairman.

Terrance J. Reeson

Vice Chairman

Director since 1984

Mr. Terrance J. Reeson has lived in Quincy, California for nearly 50 years. He is a retired U.S. Forest Service Aviation Officer for the Plumas National Forest. Mr. Reeson is active in his community and is a former executive director of the Quincy Chamber of Commerce. Mr. Reeson’s relevant experience qualifying him for service as a director includes: extensive government service and widespread civic and community involvement.

James E. Beckwith

Mr. James E. Beckwith is the President and Chief Executive Officer of Five Star Bank and its holding company, Five Star Bancorp. He has over 25 years of banking experience. Prior to joining Five Star Bank, Mr. Beckwith served as Chief Financial Officer and Chief Operating Officer for National Bank of the Redwoods, in Santa Rosa, California. Mr. Beckwith graduated from San Francisco State University where he earned a Bachelor of Science degree in Business Administration with a concentration in Accounting. He is also a graduate of the Pacific Coast Banking School at the University of Washington. Mr. Beckwith serves on the boards of KDIE, Valley Vision, Sacramento Metropolitan Chamber, California Bankers Association and California Independent Bankers. Mr. Beckwith’s extensive experience in banking and accounting and his dedication to civil service highly qualifies him for service as a director.

Alvin G. Blickenstaff

Director

Director since 1988

Mr. Alvin G. Blickenstaff was born and raised in the Susanville, California area. Mr. Blickenstaff is the senior partner of Blickenstaff Ranch, a family owned and operated partnership, where they raise premium alfalfa hay, grain, and alfalfa seed; and, operateseed. The partnership also operates a game bird club. He is a former director and chairman of former Sierra Security Bank.

He Mr. Blickenstaff is a member and past president of both the Lassen County Farm Bureau and Lassen County Cattleman’s Association. Mr. BlickenstaffHe served on the Jr. Sale Livestock Sale Committee for 42 years and received the Conservationist of the Year Award in 1972. In 2007, he was recognized with a Distinguished Service Award for community service by his peers. Mr. Blickenstaff’s expertise in the agricultural industry and business management highly qualifies him for service as a board director.

 

7

8


William E. Elliott

Director

Director since 1987

Mr. William E. Elliott joined Plumas Bank in 1987 as President and Chief Executive Officer and retired in 2005. He has been in the banking industry for over 45 years holding various management and board positions; this experience highly qualifies Mr. Elliotthim for service as a board director. Mr. ElliotElliott graduated from California State University, Sacramento where he received a Bachelor of Science degree in Accounting and a Masters in Business Administration. He also graduated from the Pacific Coast Banking School at the University of Washington. Mr. Elliott is very active in his community; he is chairman of the Feather River Community College Board with over 20 years experience, and he is a former director on the Plumas District Hospital Board and chairman of the Feather River Community College Board,with 22 years experience, both in Quincy, California. He has been a member of the Rotary Club for over 3540 years.

Gerald W. Fletcher

Director

Director since 1988

Mr. Gerald W. Fletcher has lived in Susanville, California for 53 yearssince 1956 and is a retired rancher, realtor, and insurance agent. He is a former director of former Sierra Security Bank. Mr. Fletcher owns and operates Fletcher Christmas Trees. He is a member and past president of Lassen County Cattleman’s Association and a member of the Lassen County Farm Bureau. Mr. Fletcher’s relevant experience qualifying him for service as a board director includes:is comprised of a broad range of management and customercommunity service experience.

experience including his past service as Lieutenant in the Susanville Volunteer Fire Department, ex-Sergeant of the California National Guard, a past 4-H Leader and member of the Lassen County Jr. Livestock Auction Committee.

John Flournoy

Director

Director since 2005

Mr. John Flournoy was born and raised in Likely, California. He is a rancher and hay producer in Likely, California. Since 1971, he has served on the board of directors of the South Fork Irrigation District (SFID). He served for many years as a committee member for the Farm Service Agency where he reviewed all loan applications for small agricultural operations and evaluated collateral releases and settlements. Mr. Flournoy’s relevant experience qualifying him for service as a board director includes: lifelong experience as a rancher and hay producer on his family owned ranch, expertise in business and agricultural lending, and operational risk management.

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Arthur C. Grohs

Director

Director since 1988

Mr. Arthur C. Grohs was born in Susanville, California and raised in Westwood and Susanville, California. He retired after 35 years of retail store ownership in Susanville. Mr. Grohs now resides in Reno, Nevada. As an experienced business owner and entrepreneur, he is an active counselor with SCORE of Northern Nevada. Through SCORE, Mr. Grohs enjoys providing free and confidential business advice to entrepreneurs working to start new businesses and grow existing businesses; and in turn, helps them become a vital part of the Northern Nevada business community. Mr. Grohs’ relevant experience qualifying him for service as a board director includes: marketing, long range planning, personnel management, and operational risk management.

8


Robert J. McClintock

Director

Director since 2008

Mr. Robert J. McClintock has lived in Tahoe City, California for over 2025 years. He is a Certified Public Accountant and is co-owner of McClintock Accountancy Corporation headquartered in Tahoe City, California with an additional office in Truckee, California. As a Certified Public Accountant, Mr. McClintock brings strong accounting and financial skills important to the oversight of the Company’s financial reporting, enterprise and operational risk management. Mr. McClintock serves as treasurer for the Tahoe Truckee Excellence in Education Foundation and as ais Assistant Scoutmaster for Boy Scouts of America. He is also a board member of the Kiwanis Club of North Lake Tahoe and has served as past President and Treasurer. BobHe is also the former treasurer for the Tahoe Truckee Excellence in Education Foundation. Mr. McClintock attended Michigan Tech University where he received his Bachelor of Science degree in Business Administration.

All nominees, with the possible exception of Mr. Beckwith whose appointment to the Board is subject to the review and non disapproval of the Federal Deposit Insurance Corporation and the California Department of Financial Institutions, will continue to serve if elected at the meeting until the 20112013 annual meeting of shareholders and until their successors are elected and have been qualified. None of the directors were selected pursuant to any arrangement or understanding other than with the directors and executive officers of Plumas Bancorp acting within their capacities as such. There are no family relationships between any of the directors of Plumas Bancorp. No director of the Company serves as a director of any company that has a class of securities registered under, or which is subject to the periodic reporting requirements of, the Securities Exchange Act of 1934, or of any company registered as an investment company under the Investment Company Act of 1940.

The Board of Directors and Committees

During 2009,2011, the Company’s Board of Directors met 1219 times. None of Plumas Bancorp’s directors attended less than 75 percent of all Board of Directors’ meetings and committee meetings of which they were members. The Company does not have a policy requiring director attendance at its annual meeting. However, most directors attend the meeting as a matter of course. All current directors attended the annual meeting of shareholders held in May 2009.2011. The Board has established, among others, an Audit Committee and a Corporate Governance Committee and each of these committees have charters. Charters for each of these committees are available on the Company’s website www.plumasbank.com.

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Shareholder Communication with the Board of Directors

If you wish to communicate with the Board of Directors or the Chairman of the Board of Directors you may send correspondence to the Corporate Secretary, Plumas Bancorp, 35 S. Lindan Avenue, Quincy, California 95971. The Corporate Secretary will submit yourperform a review of such correspondence to ensure that communications forwarded to the Board of Directors or the appropriate committee,Chairman preserve the integrity of the process. For example, items that are unrelated to the duties and responsibilities of the Board of Directors or the Chairman such as applicable.

spam, junk mail and mass mailings, product complaints, personal employee complaints, product inquiries, new product suggestions, resumes and other forms of job inquiries, surveys, business solicitations or advertisements (the “Unrelated Items”) will not be forwarded. In addition, material that is unduly hostile, threatening, illegal or similarly unsuitable will not be forwarded. Any communication that is relevant to the conduct of the Company’s business and is not forwarded will be retained for one year (other than Unrelated Items) and made available to the Chairman and any other independent director on request. The independent directors grant the Corporate Secretary discretion to decide what correspondence shall be shared with Company management and specifically instruct that any personal employee complaints be forwarded to Company’s Human Resources Department.

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Board Role in Risk Oversight

The Board’s duties include understanding and assessing risks to the Company and monitoring the management of those risks. To fulfill this responsibility the directors are expected to attend all meetings and review materials in advance of the meetings. Each meeting includes a review of the activities of each board committee including the committee’s activities related to risk management. Each of our board committees concentrates on specific risks for which they have an expertise and each committee is required to regularly report to the Board of Directors on its findings.

The Board believes that evaluating how the executive team manages the various risks confronting the Company is one of its most important areas of oversight. In carrying out this critical responsibility, the Board has designated the Audit Committee with primary responsibility for overseeing enterprise risk management. While the Audit Committee has primary responsibility for overseeing enterprise risk management, each of the other Board committees also considers risk within its area of responsibility. For example, the Audit Committee oversees management of financial risks and reputational risks by monitoring the Company’s internal controls over financial reporting. The Corporate Governance Committee managesreviews risks associated withrelated to legal and regulatory compliance as they relate to corporate governance structure and processes, reviews risks related to compensation matters. The Board is apprised by the independencecommittee chairs of significant risks and management’s response to those risks via periodic reports. While the Board of Directors and its committees oversee risk management strategy, management is responsible for overseeing theimplementing and supervising day-to-day risk management of risks relatingprocesses and reporting to the Company’s executive compensation plansBoard and arrangements. its committees on such matters.

Furthermore, because the banking industry is highly regulated, certain risks to the Company are monitored by the Board of Directors through its review of the Company’s compliance with regulations set forth by its regulatory authorities, including the FDIC and recommendations contained in regulatory examinations.

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With respect to risk related to compensation matters, the Corporate Governance Committee considers, in establishing and reviewing the Company’s executive compensation program, whether the program encourages unnecessary or excessive risk taking and has concluded that it does not. Executives’ base salaries are fixed in amount and thus do not encourage risk-taking. Currently no bonuses programs are in effect. The other significant source of compensation to Executives is in the form of long-term equity awards that are important to help further align executives’ interests with those of the Company’s shareholders. The Corporate Governance Committee believes that these awards do not encourage unnecessary or excessive risk-taking since the ultimate value of the awards is tied to the Company’s stock price, and since awards are subject to long-term vesting schedules to help ensure that executives have significant value tied to long-term stock price performance.

The Corporate Governance Committee has also reviewed the Company’s compensation programs for employees generally and has concluded that these programs do not create risks that are reasonably likely to have a material adverse effect on the Company. The Corporate Governance Committee believes that the design of the Company’s annual cash and long-term equity incentives provides an effective and appropriate mix of incentives to help ensure the Company’s performance is focused on long-term stockholder value creation and does not encourage the taking of short-term risks at the expense of long-term results.

Leadership Structure of Board

The Board believes that the Company and its shareholders are best served by having an independent Board Chairman and a separate CEO. We separate these roles in recognition of the differences between the two roles. The CEO is responsible for day to day leadership and performance of the Company, while the Chairman of the Board provides strategic guidance to the CEO and presides over meetings of the full Board.

Code of Ethics

The Board of Directors has adopted a code of business conduct and ethics for directors, officers (including Plumas Bancorp’s principal executive officer and principal financial officer) and financial personnel, known as the Corporate Governance Code of Ethics. This Code of Ethics Policy is available on Plumas Bancorp’s website at www.plumasbank.com. Shareholders may request a free copy of the Code of Ethics Policy from Plumas Bancorp, Ms. Elizabeth Kuipers, Investor Relations, 35 S. Lindan Avenue, Quincy, California 95971.

Additionally, a copy of the Company’s Corporate Governance Code of Ethics can be accessed athttp://www.plumasbank.com. Click on the “Investor Relations tab” and then Governance Documents.

Director Independence

The Board has determined that each of the following non-employee directors isand Mr. Beckwith are “independent” within the meaning of the listing standards and rules of NASDAQ.

Daniel E. West

 Terrance J. Reeson

Alvin G. Blickenstaff

 Gerald W. Fletcher

John Flournoy

 Arthur C. Grohs

  Robert J. McClintock

 Robert J. McClintock

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Audit Committee

Plumas Bancorp has an Audit Committee composed of Mr. McClintock, Chairman and Messrs. Flournoy, Grohs and Reeson. The Board has determined that each member of the Audit Committee meets the independence and experience requirements of the listing standards of NASDAQ and the Securities and Exchange Commission. The Board has also determined that Mr. Robert J. McClintock is qualified as an audit committee financial expert and that he has accounting or related financial management expertise, in each case in accordance with the rules of the Securities and Exchange Commission and NASDAQ’s listing standards.

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The Audit Committee met seveneight times during 2009.2011. The Audit Committee reviews all internal and external audits including the audit by Perry-SmithCrowe Horwath LLP, the Company’s independent auditor. The Audit Committee reports any significant findings of audits to the Board of Directors, and ensures that the Company’s internal audit plans are met, programs are carried out, and deficiencies and weaknesses, if any, are addressed. The Audit Committee meets regularly to discuss and review the overall audit plan. The Audit Committee’s policy is to pre-approve all recurring audit and non-audit services provided by the independent auditors through the use of engagement letters. These services may include audit services, audit-related services, tax services and other services. Pre-approval is generally provided for up to one year and any pre-approval is detailed as to particular service or category of services and is generally subject to a specific budget. The independent auditors and management are required to periodically report to the Audit Committee regarding all services provided by the independent auditors and fees associated with those services performed to date. Other than some ancillary tax services, theThe fees paid to the independent auditors in 20092011 and 20082010 were approved per the Audit Committee’s pre-approval policies.

Audit Committee Report

This report of the Audit Committee shall not be deemed incorporated by reference by any general statement incorporating by reference this proxy statement into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that Plumas Bancorp specifically incorporates this information by reference, and shall not otherwise be deemed filed under the Acts.

The Board of Directors and the Audit Committee has reviewed Plumas Bancorp’s audited financial statements and discussed such statements with management. The Audit Committee has discussed with Perry-SmithCrowe Horwath LLP, the Company’s independent auditors during the year 2009,2011, the matters required to be discussed by Statement of Auditing Standards No. 61, as amended (Communication with Audit and Finance Committees, as amended).

The Audit Committee received written disclosures and a letter from Perry-SmithCrowe Horwath LLP, required by Independence Standards Board Standard No. 1 and has discussed with them their independence from management. The Audit Committee has also considered whether the independent auditors’ provision of other non-audit services is compatible with the auditors’ independence.

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Based on the review and discussions noted above, the Audit Committee recommended to the Board of Directors that Plumas Bancorp’s audited financial statements be included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2009,2011, for filing with the Securities and Exchange Commission.

            THE AUDIT COMMITTEE:

 
THE AUDIT COMMITTEE:

Robert J. McClintock, Chairman

 John Flournoy

Arthur C. Grohs

 Terrance J. Reeson

Corporate Governance Committee

Plumas Bancorp has a Corporate Governance Committee which met six times during 2009.2011. The Corporate Governance Committee consists of Mr. Grohs, Chairman and Messrs. Blickenstaff, Reeson and West. The Board has determined that Messrs. Grohs, Blickenstaff, Reeson and West are “independent” within the meaning of the listing standards and rules of NASDAQ. The Corporate Governance Committee provides assistance to the Board by identifying qualified individuals as prospective Board members, recommends to the Board the director nominees for election at the annual meeting of shareholders, nominates the Chairperson and Vice-Chairperson of the Board, oversees the annual review and evaluation of the performance of the Board and its committees, and develops and recommends corporate governance guidelines to the Board of Directors.

11


During 2008 the Board transferred the duties and responsibilities of the Compensation Committee to the Corporate Governance Committee and eliminated the separate Compensation Committee. This expanded the responsibilities of the Corporate Governance Committee to include among other duties, to at least annually review, adjust (as necessary), and approve the Company’s directors’ compensation, including cash, equity or other compensation for service on the Board, any committee of the Board and as Chairperson of the Board or any committee of the Board, at least annually review, adjust (as necessary) and approve the Chief Executive Officer’s compensation, provide advice and consent to the Chief Executive Officer in the review and adjustment of executive officer compensation (other than the Chief Executive Officer), approve the compensation strategy for the Company’s employees, review and recommend for approval by the Board all equity-based compensation, including stock options and stock grants and approve other personnel matters, which are in excess of management’s authority.

The Corporate Governance Committee is also responsible for compliance with the Emergency Economic Stabilization Act with respect to the semi-annual review and certification of incentive compensation arrangements for the Chief Executive Officer and other senior executive officers to ensure that the senior executive officer (SEO) incentive compensation arrangements do not encourage the senior executive officers to take unnecessary and excessive risks that threaten the value of the Company for the duration that the Company has funds from the United States Treasury under the Capital Purchase Program. The Corporate Governance Committee has completed two such reviews during 2011 and has identified and limited during the applicable period any features of the SEO compensation plans that could lead SEOs to take unnecessary and excessive risks that could threaten the value of Plumas Bancorp, and during that same applicable period has identified any features of the employee compensation plans that pose risks to Plumas Bancorp and has limited those features to ensure that Plumas Bancorp is not unnecessarily exposed to risks. The Corporate Governance Committee has reviewed the terms of each employee compensation plan and identified any features of the plan that could encourage the manipulation of reported earnings of Plumas Bancorp to enhance the compensation of an employee and has limited those features.

14


The Corporate Governance Committee has the authority, to the extent it deems necessary, to retain and terminate an outside compensation consultant to assist in the evaluation of director and executive officer compensation and benefit matters. During the year ending December 31, 20092011 the Corporate Governance Committee did not engage an outside compensation consultant.

The Corporate Governance Committee does not have any written specific minimum qualifications or skills that the committee believes must be met by either a committee-recommended or a security holder-recommended candidate in order to serve on the Board. The Corporate Governance Committee identifies nominees by first evaluating the current members of the Board of Directors willing to continue in service. Current members of the Board with skills and experience that are relevant to the Company’s business and who are willing to continue in service are considered for re-nomination, balancing the value of continuity of service by existing members of the Board with that of obtaining a new perspective. If any member of the Board does not wish to continue in service or if the Corporate Governance Committee or the Board decided not to re-nominate a member for re-election, the Corporate Governance Committee identifies the desired skills and experience of a new nominee in light of the following criteria. While no specific diversity policy exists, when identifying and evaluating new directors, the

12


Corporate Governance Committee considers the diversity and mix of the existing Board of Directors, including, but not limited to, such factors as: the age of the current directors, their geographic location (being a community bank, there is a strong preference for local directors), background, skills and employment experience. Among other things, when examining a specific candidate’s qualifications, the Corporate Governance Committee considers the candidate’s: ability to represent the best interest of the Company, existing relationships with the Company, interest in the affairs of the Company and its purpose, ability to fulfill director responsibilities, leadership skill, reputation within the Company’s community, community service, integrity, business judgment, ability to develop business for Plumas Bancorp and ability to work as a member of a team. The Committee does not assign specific weights to particular criteria and no particular criterion is necessarily applicable to all prospective nominees. Nominees are not discriminated against on the basis of race, religion, national origin, sexual orientation, disability or any other basis proscribed by law. All nominees to be considered at the Meeting were recommended by the Corporate Governance Committee.

The Corporate Governance Committee will consider nominees to the Board proposed by shareholders, although the Board has no formal policy with regard to shareholder nominees as it considers all nominees on their merits as aforementioned. Any shareholder nominations proposed for consideration by the Board may only be made by complying with the nomination procedures which are included in the Notice of Annual Meeting of Shareholders accompanying this Proxyproxy statement and should be addressed to:

President

Plumas Bancorp

35 S. Lindan Avenue

Quincy, CA 95971

Non-Binding Advisory Vote on Executive Compensation

15


PROPOSAL 2

NON-BINDING ADVISORY VOTE ON EXECUTIVE COMPENSATION

The Company has chosen to participate in the Troubled Asset Relief Program (“TARP”) Capital Purchase Program. On January 30, 2009 the Company, issued to the United States Department of the Treasury (“Treasury”) 11,949 shares of the Company’s Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the “Series A Preferred Stock”).

The American Recovery and Reinvestment Act of 2009 (the “ARRA”) more commonly known as the economic stimulus package, was signed into law on February 17, 2009. In addition to a wide variety of programs intended to stimulate the economy, ARRA imposes significant new requirements for and restrictions relating to the compensation arrangements of financial institutions that received government funds through TARP, including institutions like the Company that participated in the Capital Purchase Program prior to ARRA. These restrictions apply until a participant repays the financial assistance received through TARP.

One of the new requirements for any recipient of funds in the TARP is to provide an advisory vote on the compensation of executives, as disclosed in this proxy statement pursuant to the compensation disclosure rules of the Securities and Exchange Commission.

13


This proposal, commonly known as a “Say-on-Pay” proposal, gives you as a shareholder the opportunity to provide an advisory vote on the Company’s executive compensation as disclosed in this proxy statement through the following resolution:

“Resolved, that the shareholders approve the compensation of the Company’s executives, as described in the tabular and accompanying narrative disclosure regarding Named Executive Officer compensation in this Proxy Statement for its 20102012 Annual Meeting.”

Because the vote is advisory, it will not be binding upon the Board of Directors, will not overrule any decision made by the Board of Directors, and will not create or imply any additional fiduciary duty on the Board of Directors. The Corporate Governance Committee may, however, take into account the outcome of the vote when considering future executive compensation arrangements.

The Board of Directors believes that the Company’s executive compensation program is reasonable in comparison both to similar sized companies in the industry and to the performance of the Company during 2009.2011. We also believe that the Company’s compensation program is effective in aligning the interests of the executives with the interests of the Company’s stockholders on a long-term basis and is appropriate.

Recommendation:THE BOARD OF DIRECTORS RECOMMENDS A VOTEFOR THE APPROVAL OF A NON-BINDING ADVISORY VOTE ON EXECUTIVE COMPENSATION AS DESCRIBED IN THIS PROXY STATEMENT.The Board of Directors recommends a vote “FOR” approval of a non-binding advisory vote on executive compensation as described in this Proxy Statement.

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Executive Officers

The following table sets forth information concerning executive officers of Plumas Bancorp and Plumas Bank:

Name

  Age 

Position and Principal Occupation for the Past Five Years

Andrew J. Ryback

   4447    President and Chief Executive Officer of Plumas Bancorp and Plumas Bank since November 16, 2011. Interim President and Chief Executive Officer of Plumas Bancorp and Plumas Bank effective March 29, 2010. Formerly Executive Vice President and Chief Financial Officer of Plumas Bancorp and Plumas Bank.

Richard L. Belstock

   55    Senior Vice President since September, 2010. Chief Financial Officer of Plumas Bancorp and Plumas Bank since November 16, 2011. Interim Chief Financial Officer of Plumas Bancorp and Plumas Bank effective March 31, 2010. Formerly Vice President and Controller of Plumas Bancorp and Plumas Bank.

Monetta R. Dembosz

   5961    Executive Vice President and Operations Manager of Plumas Bank since February 2007. Previously Senior Vice President and Operations Manager of Plumas Bank.
Robert T. Herr

B. J. North

   61Executive Vice President and Loan Administrator of Plumas Bank.
B. J. North59    Executive Vice President of Retail Banking, Marketing and Wealth Management of Plumas Bank since July 2008. Previously Chief Advancement Officer for Truckee Meadows Community College.

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Executive Compensation
Summary Compensation Table
                                     
                      Non-Equity          
                      Incentive  Nonqualified       
              Stock  Option  Plan  Deferred  All Other    
Name and Principal             Awards  Awards  Compensation  Compensation  Compensation    
Position Year  Salary  Bonus  (1)  (2)  (3)  Earnings  (4)  Total 
(a) (b)  (c)  (d)  (e)  (f)  (g)  (h)  (i)  (j) 
                                     
Douglas N. Biddle
(Former President and CEO of
  2009  $235,000  $0  $0  $0  $0  $0  $10,265  $245,265 
Plumas Bancorp and Plumas Bank)  2008  $235,000  $0  $0  $36,805  $0  $0  $10,194  $281,999 
                                     
Robert T. Herr
EVP and Loan Administrator
  2009  $150,000  $0  $0  $0  $4,950  $0  $10,654  $165,604 
of Plumas Bank  2008  $148,750  $0  $0  $14,976  $1,450  $0  $10,284  $175,460 
                                     
B. J. North
EVP of retail banking of
  2009  $150,000  $0  $0  $0  $4,950  $0  $6,000  $160,950 
Plumas Bank (5)  2008  $72,789  $0  $0  $0  $750  $0  $2,875  $76,414 

Kerry D. Wilson

   55Senior Vice President and Chief Credit Administrator since February, 2012. Previously Senior Vice President – Assistant Loan Administrator.

Executive Compensation

Summary Compensation Table

(1)

Name and Principal Position

 YearSalaryBonusStock
Awards
(1)
Option
Awards
(2)
Non-Equity
Incentive
Plan
Compensation
(3)
Nonqualified
Deferred
Compensation
Earnings
All Other
Compensation
(4)
Total

(a)

(b)(c)(d)(e)(f)(g)(h)(i)(j)

Andrew J. Ryback President and CEO of Plumas Bancorp and Plumas Bank


2011

2010


$

$

175,000

168,750


$

$

0

0


$

$

0

0


$

$

0

0


$

$

0

0


$

$

0

0


$

$

3,216

3,093


$

$

178,216

171,843


B. J. North EVP, Retail Banking Plumas Bank


2011

2010


$

$

135,000

138,750


$

$

0

0


$

$

0

0


$

$

14,256

0


$

$

0

0


$

$

0

0


$

$

9,840

9,000


$

$

159,096

147,750


Monetta R Dembosz EVP, Operations Manager of Plumas Bank


2011

2010


$

$

135,000

138,750


$

$

0

0


$

$

0

0


$

$

14,256

0


$

$

0

0


$

$

0

0


$

$

700

2,096


$

$

149,956

140,846


(1)The Company has not granted stock awards.

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(2)No options were grantedThe amounts in 2009. The amount for 2008 representscolumn (f) reflect the aggregate grant date fair value computed in accordance with FASB ASC Topic 718. Assumptions used in the calculation of these amounts are included in footnote 23 to the Company’s audited financial statements for the fiscal year ended December 31, 20092011 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 19,23, 2012. No options were granted in 2010.
(3)With the exception of Mr. Biddle, who was precluded from receiving bonus payments until theThe Company no longer holds Series A Preferred Stock, the Company’s named executive officers participate indid not provide a bonusnon-equity incentive plan in which payments are determined based on the achievement of certain financial performance measures and to a lesser extent to discretionary factors. Amounts in this column represent amounts earned in the year listed and paid in the following year under this plan.for its employees during 2011 or 2010.
(4)The amounts in column (i) include tax gross-ups (2008 only), premiums paid and accrued on life insurance policies, personal use of Company automobile, cell phone allowance and during 2010 the Company’s contribution under Plumas Bank’s 401(k) Plan. The amount for Ms. North relates toincludes automobile allowances of $6,000$9,000 in 20092011 and $2,875 in 2008.
(5)Ms. North began her employment with the Company in July 2008.2010.
Douglas N. Biddle Employment Agreement
The Board of Directors of the Company entered into an employment agreement with Mr. Biddle dated February 18, 2009. This agreement had a one year term. Under this agreement Mr. Biddle’s initial base salary was set at $235,000 per year with future base salary increases to be granted at the sole discretion of the Board. Mr. Biddle was entitled to participate in any and all other employee benefits and plans existing or developed by the Company. In addition, the agreement provided for the use of a Bank automobile and a life insurance policy with Mr. Biddle as the insured and with a death benefit of $100,000 for the benefit of his designated beneficiary.

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Non-Equity Incentive Plan
We provide annual incentive bonuses to pay our executives for performance. The 2009 incentive bonus plan was designed to drive achievement of our 2009 financial performance goals, and to promote and reward leadership among our executives. For the year ended December 31, 2009, we established the annual corporate financial performance targets based on the following measures: net income of $1.6 million, return on equity of 3.4%, deposit growth of 6.2% and classified loans to equity capital of 45.0%.
The annual incentive bonus for executive officers is based 80% on the achievement of corporate financial performance measures and 20% on the leadership factor. The Company establishes an annual target for each financial performance measure based on its confidential business plan and budget for the coming year. For 2009, performance below the target on a corporate financial performance measure results in the absence of an incentive payment based on that measure. Mr. Biddle was the most highly compensated employee of the Company and was therefore not eligible for bonus payments while the Company holds Series A Preferred Stock. Assuming all corporate financial performance goals were at the target performance level, Mr. Herr and Ms. North could have earned up to 10% of their salary based on targeted achievement of the financial performance measures and up to a maximum of 20% of their salary for achievement in excess of targeted performance. In addition, up to 5% of their salary could have been earned under the leadership incentive.
The only performance factor that exceeded the threshold level required for payment of an incentive was that related to deposit growth. Additionally, related to the Company’s financial performance in 2009 the Company chose not to pay any bonuses based on the discretionary leadership incentive. Based on exceeding the deposit growth objective the following bonus payments were earned: Mr. Herr: $4,950 (3.3% of base salary); Ms. North: $4,950 (3.3% of base salary).

The Company has chosen not to provide a non-equity incentive plan for its employees during 2011 or 2010, and no bonus or incentive payments willwere made in 2011 or 2010 and none are anticipated to be accrued for executive officerspaid during 2010.

2012.

Stock Option Awards

We consider equity compensation in the form of annual stock option awards an important component of our total compensation package because it helps align the interests of our executives to those of our shareholders and provides a significant retention benefit. During 2006 the Company’s shareholders approved an amendment and restatement of the Plumas Bank 2001 Stock Option Plan allowing restricted stock awards to employees. The Corporate Governance Committee approves and recommends to the Board approvesfor its approval all stock option and restricted stock grants.

Beginning on

On March 1, 2007 we began an annual process of granting stock16, 2011 options totaling 14,400 each were granted to all corporate officers of the Company. We chose at this time not to incorporate restricted stock into our equity-based compensation program, but may consider issuing restricted stock in the future. Options granted in the 2008 equity-based compensation program totaling 14,500 to Mr. BiddleMs. North and 5,900 to Mr. Herr.Ms. Dembosz. During 20092010 we chose not to grant any stock options.

16


We chose to make the annual grants during the first quarter of each year after financial results for the completed fiscal year have been publicly announced and after bonus incentive payments have been calculated. It is anticipated that future annual grants also will be made during the first quarter of the Company’s fiscal year. The Company makes grants of equity-based compensation only at fair market value of our stock at the time of grant. The exercise price of stock options is set at the closing stock price on the date of grant. All option grants have a maximum vesting period of five (5) years and expire no more than ten (10) years from the date of grant.
The ability to grant options under the Company’s stock option plan terminated on March 21, 2011 and therefore until a new stock option plan is approved by its shareholders no additional options will be granted.

The Company incorporates the officer’s position level in the determination of the total value of the equity-based compensation to be included in the officer’s total compensation. The higher the officer level the more options/restricted stock that may be granted to the officer. Additional options may be granted to an individual based on outstanding achievement. This is consistent with the Company’s philosophy of rewarding those officers who have the most impact on our performance.

18


Post-Employment Benefits

We consider providing significant post-employment benefits in the form of providing salary continuation benefits to our executives as an important part of their total executive compensation to reward them for their service and loyalty to the Company. The Company has entered into salary continuation agreements with Messrs. BiddleMr. Ryback and Herr.Ms. Dembosz. The purpose of the salary continuation agreements is to provide special incentive to the experienced executive officer to continue employment with the Company on a long-term basis. The agreements provide the executive with salary continuation benefits of up to $62,000 per year for 15 years after retirement at age 65. In the event of death prior to retirement, the executive’s beneficiary will receive salary continuation benefits at a reduced amount depending on the length of service with the Company or in the executive’scase of Mr. Ryback his beneficiary is entitled to a portion of the death benefits pursuant to a split dollar agreement. In the event of disability wherein the executive does not continue employment with the Company, the executive is entitled to salary continuation benefits, at a reduced amount depending on the length of service with the Company, beginning at age 65 or on the date on which he is no longer entitled to disability benefits under the Company’s group disability insurance, whichever is earlier. If the executive terminates employment with the Company for a reason other than death or disability prior to the retirement age of 65, such person will be entitled to salary continuation benefits at a reduced amount depending on the length of service with the Company. The vesting of salary continuation benefits for Messrs. Biddle and HerrMr. Ryback occurs at a rate that provides for a 90% vesting at age 60 and 2% per year for the next five years of service, for a total vesting of 100%. Mr. Biddle’sMs. Dembosz’s salary continuation benefits stoppedwere approximately 32% vested at age 60. Between age 60 and 65 her vesting upon the endwill increase at an annual rate of his service with the Company. between 13% and 15% per year and she will become fully vested at age 65.

In the event of a change of control of the Company and the executive terminates employment with the Company or its successor within a period of 24 months after such change in control, then the executive may elect full vesting of his salary continuation payments and the payment of the salary continuation benefits beginning with the month following the month of termination, subject to the reduction of benefits if the benefits result in a limitation of deductibility of such benefits for the Company under Section 280G of the Internal Revenue Code. The salary continuation benefits are informally funded by single premium life insurance policies with the executive as the insured parties and the Company as the beneficiary of the policies.

The Company has entered into a split dollar agreementsagreement with Messrs Biddle and Herr.Mr. Ryback. The purpose of the split dollar agreementsagreement is to provide special incentive for the executivesto Mr. Ryback to continue employment with the Company on a long-term basis. To accomplish this, the Company agrees to divide the net death proceeds of life insurance policies on the executive’sMr. Ryback’s life with the executive’sMr. Ryback’s beneficiary. However, the executive’sMr. Ryback’s rights or interests in the split dollar policies no longer exist once they ceasehe ceases to be employed by the Company for any reason whatsoever prior to normal retirement age provided that the executivehe has received or had the opportunity to receive any benefit under his executive salary continuation agreement.

17


The Company has agreed to pay the taxes on the imputed income on the life insurance benefit provided to the executiveMr. Ryback under the split dollar agreement. However, the Company is precluded from making tax gross up payments while the Company has funds outstanding from the United States Treasury under the Capital Purchase Program and therefore during this period the executivehe is responsible for the payment of these taxes.

During 2008 the split dollar and salary continuation agreements of Messrs. Biddle and Herr wereMr. Ryback was amended to insure compliance with section 409A of the Internal Revenue Code.

19


Perquisites

We offer a qualified 401(k) plan in which the named executive officers participate on the same terms as all other employees. Under the terms of the 401(k) plan,During 2010, we matchmatched the first 3% on a dollar-for-dollar basis.basis until April 1, 2010 at which time we discontinued the Company’s matching contribution. In addition we offer medical, dental and vision plans under the same terms to all employees. Other perquisites and benefits, which do not represent a significant portion of the named executive’s total compensation, include for some of the executivesMr. Ryback a company provided automobile, company provided gasoline and maintenance tax gross ups related to split dollar life insurance premiums,and the payment of the executives’Mr. Ryback’s portion of the split dollar insurance. During 2009,2011 and 2010, Ms. North received a $500$750 monthly automobile allowance. Mr. Ryback, Ms. Dembosz and Ms. North also receive a monthly allowance to cover the business portion of their cellular phone use and are provided with gasoline for the business use of their automobiles. These plans, and the contributions we make to them, provide an additional benefit to attract and retain executive officers of the Company.

Outstanding Equity Awards at Fiscal Year-End

                                     
  Option Awards  Stock Awards 
                                 Equity 
                                 Incentive 
                              Equity  Plan 
                              Incentive  Awards: 
                      Number      Plan  Market or 
          Equity          of      Awards:  Payout 
          Incentive Plan          Shares  Market  Number of  Value of 
          Awards:          or Units  value of  Unearned  Unearned 
  Number of  Number of  Number of          of  Shares or  Shares,  Shares, 
  Securities  Securities  Securities          Stock  Units of  Units or  Units or 
  Underlying  Underlying  Underlying          That  Stock  Other  Other 
  Unexercised  Unexercised  Unexercised  Option  Option  Have  That Have  Rights That  Rights That 
  Options (#)  Options (#)  Unearned  Exercise  Expiration  Not  Not  Have Not  Have Not 
Name (6) Exercisable  Unexercisable  Options (#)  Price ($)  Date  Vested  Vested ($)  Vested  Vested ($) 
(a) (b)  (c)  (d)  (e)  (f)  (g)  (h)  (i)  (j) 
Douglas N. Biddle (7)  7,984(1)  0      $10.75   12/18/2012                 
   5,625(2)  0      $13.19   12/17/2013                 
   5,625(3)  0      $14.19   12/15/2014                 
   12,850(4)  12,850      $16.37   03/01/2015                 
   3,624(5)  10,876   N/A  $12.40   02/20/2016  $0  $0  $0  $0 
Robert T. Herr  11,250(1)  0      $10.75   12/18/2012                 
   5,625(2)  0      $13.19   12/17/2013                 
   5,625(3)  0      $14.19   12/15/2014                 
   5,200(4)  5,200      $16.37   03/01/2015                 
   1,475(5)  4,425   N/A  $12.40   02/20/2016  $0  $0  $0  $0 

   Option Awards   Stock Awards 
       Equity
Incentive Plan
Awards:
                   Equity
Incentive Plan
Awards:
   Equity
Incentive Plan
Awards:
 

Name (8)

  Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable
  Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable
   Number of
Securities
Underlying
Unexercised
Unearned
Options (#)
   Option
Exercise
Price ($)
   Option
Expiration
Date
   Number
of
Shares
or Units
of
Stock
That
Have
Not
Vested
   Market
value of
Shares or
Units of
Stock

That Have
Not
Vested ($)
   Number of
Unearned
Shares,
Units or
Other
Rights
That
Have Not
Vested
   Market or
Payout
Value of
Unearned
Shares,
Units or
Other
Rights That
Have Not
Vested ($)
 

(a)

  (b)  (c)   (d)   (e)   (f)   (g)   (h)   (i)   (j) 

Andrew J. Ryback

   

 

 

 

 

 

5,625

2,812

3,000

2,812

10,400

4,425

(1) 

(2) 

(6) 

(3) 

(4) 

(5) 

  

 

 

 

 

 

0

0

0

0

0

1,475

  

  

  

  

  

  

   N/A    $

$

$

$

$

$

10.75

13.19

12.67

14.19

16.37

12.40

  

  

  

  

  

  

   

 

 

 

 

 

12/18/2012

12/17/2013

04/02/2014

12/15/2014

03/01/2015

02/20/2016

  

  

  

  

  

  

  $0    $0    $0    $0  

B. J. North

   0(7)   14,400     N/A    $2.95     03/16/2019    $0    $0    $0    $0  

Monetta R. Dembosz

   

 

 

 

 

 

2,125

2,812

2,812

10,400

4,425

0

(1) 

(2) 

(3) 

(4) 

(5) 

(7) 

  

 

 

 

 

 

0

0

0

0

1,475

14,400

  

  

  

  

  

  

   N/A    $

$

$

$

$

$

10.75

13.19

14.19

16.37

12.40

2.95

  

  

  

  

  

  

   

 

 

 

 

 

12/18/2012

12/17/2013

12/15/2014

03/01/2015

02/20/2016

03/16/2019

  

  

  

  

  

  

  $0    $0    $0    $0  

(1)Options vest 20% per year beginning 12/18/2003

18


(2)Options vest 20% per year beginning 12/17/2004
(3)Options vest 20% per year beginning 12/15/2005
(4)Options were granted 3/1/2007, have an eight year life and vest 25% per year beginning 3/01/2008
(5)Options were granted 2/20/2008, have an eight year life and vest 25% per year beginning 2/20/2009
(6)Ms. North has no outstanding options as of December 31, 2009Options vest 20% per year beginning 04/02/2005
(7)Mr. BiddleOptions were granted 3/16/2011, have an eight year life and the Company ended their employment relationship on March 26, 2010 at which time 13,676 unexercisable options were cancelled.vest 25% per year beginning 3/16/2012

20


Potential Payments Upon Termination Or Change of Control

The following is a discussion of the payments that may come due to a named executive officer following a change of control or the termination of the named executive officer. Regardless of the manner in which a named executive officer’s employment terminates, he is entitled to receive amounts earned during his term of employment including all unused vacation pay and amounts vested through the Bank’s 401(k) Plan. Upon termination of employment, a named executive officer also has the right to exercise all vested stock options, unless their termination is for cause.

The Company is limited in its ability to make change of control, bonus or termination of employment payments described in this proxy statement to its most highly paid employee while the Company has funds outstanding from the United States Treasury under the Capital Purchase Program.

Payments Made Upon a Change in Control

Salary Continuation Agreements:The Company has entered into salary continuation agreements with Messrs. BiddleMr. Ryback and Herr.Ms. Dembosz. The agreements for Mr. Ryback and Ms. Dembosz provide the executive with salary continuation benefits of up to $62,000 per year for 15 years after retirement.

In the event of a change of control of the Company and the executive terminates employment with the Company or its successor within a period of 24 months after such change in control, then the executive may elect full vesting of his salary continuation payments and the payment of the salary continuation benefits beginning with the month following the month of termination, subject to the reduction of benefits if the benefits result in a limitation of deductibility of such benefits for the Company under Section 280G of the Internal Revenue Code.

Under the terms of these agreements a change in control is defined as a change in the ownership or effective control of the Employer, or in the ownership of a substantial portion of the assets of the Employer, as such change is defined in section 409A of the Internal Revenue Code and regulations thereunder.

Compensation of Directors

Director Compensation: During 2009,2011, non-employee Directors, except the Chairman, each received $2,100$1,890 per month for serving on the Plumas Bancorp’s and Plumas Bank’s Board of Directors and committees. The Chairman received $2,650$2,385 per month. Mr. Biddle did not receive any separate compensation for serving as a director.

19


Deferred Fee Agreements: The Company has entered into a Deferred Fee Agreement with board member Blickenstaff who deferred $16,800 in fees during 2009. The purpose of the Deferred Fee Agreements is to provide a board member an opportunity to defer his or her director fees as an incentive to continue service with the Company. The agreement provides for deferral of director fees to the earlier of an agreed upon distribution date or the termination of director services for any reason. The Company will accrue interest on all deferred director fees at an annual floating percentage rate of the current Wall Street Journal Prime Rate minus 1%. In the event of death prior to retirement, the beneficiary will receive full-deferred fee benefits. In the event of disability wherein the director does not continue service with the Company, the director is entitled to the full-deferred fee benefit accrued up to the point of director’s termination of service.

21


Non-Qualified Stock Options:On March 16, 2011 the Company granted to each of its directors 3,200 in non-qualified stock options with an exercise price of $2.95 per share. The options vest 25% per year beginning on March 16, 2012 and have an eight year life. No stock options were granted to directors during 2009.2010. The Company makes grants of non-qualified stock options only at fair market value of our stock at the time of grant. All option grants have a maximum vesting period of five (5) years and expire no more than ten (10) years from the date of grant. Upon a change in control all stock options held by directors may vest and become exercisable.

Director Emeritus Plans

Director Retirement Agreement: The Company has entered into Director Retirement (fee continuation) Agreements with its non-employee Directors excluding Messrs. Elliott and McClintock.Mr. Elliott. Mr. Elliott retired as President and Chief Executive Officer of the Company during 2005 and is currently receiving benefits under his executive salary continuation agreement. The purpose of the fee continuation agreements is to provide a retirement benefit to the board members as an incentive to continue informal service with the Company. The agreement provides for fee continuation benefits of up to $10,000 per year with a term of 12 years after retirement with the exception of board membermembers Flournoy whose agreement hasand McClintock’s agreements which have a term of 15 years. In the event of death prior to retirement, the beneficiary will receive full fee continuation benefits, with the exception of Mr. Flournoy’sMessrs. Flournoy and McClintock’s beneficiary who would be entitled to receive a lump sum payment of $30,000. In the event of disability wherein the director does not continue service with the Company, the director is entitled to fee continuation benefits, at a reduced amount depending on the length of service with the Company, beginning the month following termination of service. The agreements, with the exception of Mr. Flournoy’sMessrs. Flournoy and McClintock’s agreement, allow for a Hardship Distribution under specified circumstances. Hardship Distributions are limited to the amount the Company had accrued under the terms of the agreement as of the day the director petitioned the Board to receive a Hardship Distribution. Upon a change in control the director is eligible to receive the full fee continuation benefits upon the director’s termination of service. The fee continuation benefits, with the exception of Mr. McClintock’s benefits, are informally funded by single premium life insurance policies. The directors are the insured parties and the Company is the beneficiary of the respective policies.

Post-Retirement Consulting Agreement: The Company has entered into Post-Retirement Consulting Agreements with its non-employee Directors with the exception of Messrs. Flournoy, Elliott and McClintock. The purpose of the AgreementsAgreement is to provide consideration to the board members in exchange for consulting services after their retirement from the Board. The agreements provide for consulting fees of $10,000 per year for 3 years after retirement. In the event of death prior to completion of the consulting services, the beneficiary will receive death benefits equal to the remaining unpaid consulting fee benefits. In the event of disability wherein the retired director is unable to continue consulting services with the Company, the Company may terminate the director’s post-retirement consulting services. If the retired director voluntarily terminates his or her consulting services for other than good reason or if the Company terminates the director’s post-retirement consulting services for cause, the Post-Retirement Consulting Agreement shall terminate.

 

20

22


The table below summarizes the compensation paid by the Company to non-employee Directors for the fiscal year ended December 31, 2009.
2011.

Director Compensation Table

                             
  Fees              Nonqualified       
  Earned      Option  Non-Equity  Deferred       
  or Paid  Stock  Awards  Incentive Plan  Compensation  All Other    
Name in Cash  Awards  ($) (1)  Compensation  Earnings  Compensation  Total 
(a) (b)  (c)  (d)  (e)  (f)  (g)  (h) 
                             
Daniel E. West $31,800   N/A   N/A   N/A   N/A  $0  $31,800 
                             
Terrance J. Reeson $25,200   N/A   N/A   N/A   N/A  $0  $25,200 
                             
Alvin G. Blickenstaff $25,200   N/A   N/A   N/A  $0  $0  $25,200 
                             
William E. Elliott $25,200   N/A   N/A   N/A   N/A  $0  $25,200 
                             
Gerald W. Fletcher $25,200   N/A   N/A   N/A   N/A  $0  $25,200 
                             
John Flournoy $25,200   N/A   N/A   N/A   N/A  $0  $25,200 
                             
Arthur Grohs $25,200   N/A   N/A   N/A   N/A  $0  $25,200 
                             
Robert J. McClintock $25,200   N/A   N/A   N/A   N/A  $0  $25,200 

Name

  Fees
Earned
or Paid
in Cash
   Stock
Awards
   Option
Awards
($) (1)
   Non-Equity
Incentive Plan
Compensation
   Nonqualified
Deferred
Compensation
Earnings
   All Other
Compensation
   Total 

(a)

  (b)   (c)   (d)   (e)   (f)   (g)   (h) 

Daniel E. West

  $28,620     N/A    $3,168     N/A     N/A    $0    $31,788  

Terrance J. Reeson

  $22,680     N/A    $3,168     N/A     N/A    $0    $25,848  

Alvin G. Blickenstaff

  $22,680     N/A    $3,168     N/A    $0    $0    $25,848  

William E. Elliott

  $22,680     N/A    $3,168     N/A     N/A    $0    $25,848  

Gerald W. Fletcher

  $22,680     N/A    $3,168     N/A     N/A    $0    $25,848  

John Flournoy

  $22,680     N/A    $3,168     N/A     N/A    $0    $25,848  

Arthur Grohs

  $22,680     N/A    $3,168     N/A     N/A    $0    $25,848  

Robert J. McClintock

  $22,680     N/A    $3,168     N/A     N/A    $0    $25,848  

(1)The amounts in column (d) reflect the aggregate grant date fair value computed in accordance with FASB ASC Topic 718. Assumptions used in the calculation of these amounts are included in footnote 3 to the Company’s audited financial statements for the fiscal year ended December 31, 2011 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 23, 2012. No options were granted during 2009.in 2010. As of December 31, 20092011 each Director has the following number of options outstanding (total options outstanding include both options that are exercisable at December 31, 20092011 and options that may become exercisable in the future): Daniel West: 13,249;16,449; Terrance Reeson: 13,249;16,449; Alvin Blickenstaff: 7,624;10,824; William Elliott: 2,000;5,200; Gerald Fletcher: 12,682;15,882; John Flournoy: 4,500;7,700; Arthur Grohs: 13,249.16,449 Robert McClintock: 3,200. The exercise price exceeded the market price for all options outstanding at December 31, 2011.

 

21

23


PROPOSAL 3

RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITORS

Independent Accountants
The firm of Perry-SmithCrowe Horwath LLP served as certified independent public accountants for Plumas Bancorp with respect tothe audit of the Company’s consolidated financial statements as of and for the year 2009, and Perry-Smithended December 31, 2011. Crowe Horwath LLP has beenwas appointed as the Company’s certified independent public accountants for 2010.accountant on November 1, 2011as a result of the Company’s previous independent auditor, Perry-Smith LLP, combining with Crowe Horwath LLP on that date. The Company’s Board of Directors has determined the firm of Perry-SmithCrowe Horwath LLP to be fully independent of the operations of Plumas Bancorp. Proposal 3 is nonbinding. If the appointment is not ratified, our Audit Committee will consider whether to appoint another independent registered public accounting firm in its discretion. If the appointment is ratified, our Audit Committee in its discretion may appoint a different independent registered public accounting firm at any time if it determines that such a change would be advisable.

Aggregate fees billed by Crowe Horwath LLP and Perry-Smith LLP to Plumas Bancorp and Plumas Bank and the percentage of those fees that were pre-approved by the Company’s Audit Committee for the years ended 20092011 and 20082010 are as follows:

                 
      Percentage      Percentage 
      Pre-      Pre- 
  2009  Approved  2008  Approved 
Audit fees $223,500   100% $204,000   100%
Audit-related fees  15,000   100%  15,000   100%
Consulting fees  16,700   100%  0   0%
Tax fees  24,400   90%  21,000   100%
             
                 
Total fees $279,600   99% $240,000   100%
             

       Percentage      Percentage 
       Pre-      Pre- 
   2011   Approved  2010   Approved 

Audit fees

  $193,000     100 $210,000     100

Audit-related fees

   19,000     100  13,000     100

Tax fees

   18,000     100  26,000     100
  

 

 

   

 

 

  

 

 

   

 

 

 

Total fees

  $230,000     100 $249,000     100
  

 

 

   

 

 

  

 

 

   

 

 

 

The Audit Committee of the Bancorp has considered the provision of nonauditnon-audit services provided by Crowe Horwath LLP and Perry-Smith LLP to be compatible with maintaining the independence of Crowe Horwath LLP and Perry-Smith LLP.

Perry-Smith LLP audited Plumas Bancorp’s financial statements for the year ended December 31, 2009.

It is anticipated that a representative of Perry-SmithCrowe Horwath LLP will be present at the annual meeting of shareholders and will be available to respond to appropriate questions from shareholders at the meeting.

THE BOARD OF DIRECTORS RECOMMENDS A VOTEFOR THE APPROVAL OF THE APPOINTMENT OF CROWE HORWATH LLP AS INDEPENDENT AUDITORS OF THE COMPANY FOR THE FISCAL YEAR ENDING DECEMBER 31, 2012.

Shareholder Proposals

Stockholder Proposals:

Shareholder proposalsIn order for a stockholder proposal to be submittedconsidered for presentation atinclusion in the 2011Company’s proxy statement for next year’s annual meeting, of shareholders of Plumas Bancorpthe written proposal must be received by Plumas Bancorpthe Company no later than December 31, 2010. Shareholder11, 2012 and should contain such information as is required under the Company’s Bylaws. Such proposals should be addressedwill need to Mr. Andrew J. Rybackcomply with the SEC’s regulations regarding the inclusion of shareholder proposals in the Company’s proxy materials.

24


Nomination of Director Candidates:The Company’s Bylaws permit stockholders to nominate directors at Plumas Bancorp, 35 S. Lindan Avenue, Quincy, California 95971. Shareholder proposals, which area shareholder meeting. In order to make a director nomination at an annual stockholder meeting, it is necessary that you notify the Company not contained inless than 120 days before the first anniversary of the date that the proxy statement SEC rules specify that certain requirements in the bylaws of Plumas Bancorp be satisfied. The bylaws require that any shareholder wishing to make a nomination for director give advance notice of the nomination which shall be delivered or mailed to the President of Plumas Bancorp by the later of: (i) the close of business twenty-one (21) days prior to any meeting of shareholders called for the election of directors; or (ii) ten (10) days after the date of mailing ofpreceding year’s annual meeting was first sent to stockholders. The Company’s 2012 Proxy Statement was first sent to stockholders on April 10, 2012. Thus, in order for any such nomination notice of theto be timely for next year’s annual meeting, to shareholder; provided, however, that if only 10 days notice of the meeting is given to shareholders, such notice of intention to nominate shallit must be received by the PresidentCompany not later than December 11, 2012. In addition, the time fixednotice must meet all other requirements contained in the noticeCompany’s Bylaws and include any other information required pursuant to Regulation 14A under the Exchange Act.

Copy of Bylaw Provisions:You may contact the Investor Relations Officer, Ms. Elizabeth Kuipers, at the Company for a copy of the meetingrelevant Bylaw provisions regarding the requirements for the openingmaking shareholder proposals and nominating director candidates. Additionally, a copy of the meeting.

Company’s Bylaws can be accessed athttp://www.plumasbank.com. Click on the “Investor Relations tab” and then Governance Documents.

22


Certain Transactions

Some of the directors and executive officers of Plumas Bancorp and their immediate families, as well as the companies with which they are associated, are customers of, or have had banking transactions with, Plumas Bancorp in the ordinary course of the Company’s business, and Plumas Bancorp expects to have banking transactions with such persons in the future. In management’s opinion, all loans and commitments to lend in such transactions were made in compliance with applicable laws and on substantially the same terms, including interest rates and collateral, as those prevailing for comparable transactions with other persons of similar creditworthiness and, in the opinion of management, did not involve more than a normal risk of collectibility or present other unfavorable features.

Other Matters

Management does not know of any matters to be presented at the meeting other than those set forth above. However, if other matters come before the meeting, it is the intention of the persons named in the accompanying proxy to vote the shares represented by the proxy in accordance with the recommendations of management on such matters, and discretionary authority to do so is included in the proxy.

Available Information

Plumas Bancorp’s common stock is registered under the Securities Exchange Act of 1934 and as a result the Company is required to file annual reports, quarterly reports and other periodic filings with the Securities and Exchange Commission (the “SEC”) and are posted and are available at no cost on the Company’s website,www.plumasbank.com, as soon as reasonably practicable after Plumas Bancorp files such documents with the SEC. These reports and filings are also available for inspection and/or printing at no cost through the SEC website, www.sec.gov. In addition, regulatory report data for both Plumas Bancorp and Plumas Bank are available for inspection and/or printing at no cost through the Federal Financial Institutions Examination Council’s (the “FFIEC”) Website,website, www.ffiec.gov and the Federal Deposit Insurance Corporation’s (the “FDIC”) Website,website, www.fdic.gov, respectively.

Shareholders

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You may request a freean additional copy of Plumas Bancorp’sthe proxy statement, 10-K, 2011 annual report to shareholders, and form of proxy as to this annual meeting or all future shareholder meetings by calling us at 1.888.375.8627, by writing to Ms. Elizabeth Kuipers, Investor Relations,us at Plumas Bancorp, 35 S. Lindan Avenue, Quincy, California 95971, Attn: Ms. Elizabeth Kuipers, Investor Relations Officer, or by telephoning heremail at (530) 283-7305.

investorrelations@plumasbank.com.

 

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LOGO

PLUMAS BANCORP
35 S. LINDAN AVENUE
QUINCY, CA 95971
Signature (Joint Owners) Date Date Signature [PLEASE SIGN WITHIN BOX] VOTE BY INTERNET -www.proxyvote.com
Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 P.M.p.m. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form.
ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS
If you would like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically via e-mail or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years.
VOTE BY PHONE - 1-800-690-6903
Use any touch-tone telephone to transmit your voting instructions up until 11:59 P.M.p.m. Eastern Time the day before the cut-off date or meeting date. Have your proxy card in hand when you call and then follow the instructions.
VOTE BY MAIL
Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o Broadridge, 51 Mercedes Way, Edgewood, NY 11717.


TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:
M23644-TBDKEEP THIS PORTION FOR YOUR RECORDS
DETACH AND RETURN THIS PORTION ONLY
THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.
PLUMAS BANCORP
For
All
Withhold
All
For All
Except
To withhold authority to vote for any individual nominee(s), mark “For All Except” and write the number(s) of the nominee(s) on the line below.

The Board of Directors recommends that you vote
FOR the following:
Vote on Directors
ooo
1.
Election of eight (8) persons to be directors.
Director Nominees:
01)Alvin G. Blickenstaff05)Arthur C. Grohs
02)William E. Elliott06)Terrance J. Reeson
03)Gerald W. Fletcher07)Robert J. McClintock
04)John Flournoy08)Daniel E. West
Vote on ProposalForAgainstAbstain
The Board of Directors recommends you vote FOR the following proposal:
2.   The approval of a non-binding advisory vote on executive compensation, as more fully described in the accompanying Proxy Statement.ooo
3.   In their discretion, the proxies are authorized to vote upon such other business as may properly come before the meeting and any adjournments thereof.
PLUMAS BANCORP 35 S. LINDAN AVENUE QUINCY, CA 95971 M44285-P24309 To withhold authority to vote for any individual nominee(s), mark “For All Except” and write the number(s) of the nominee(s) on the line below. PLUMAS BANCORP For All Withhold All For All Except The Board of Directors recommends that you vote FOR the following: Vote on Directors ! ! ! 1. Election of nine (9) persons to be directors. Director Nominees: 01) James E. Beckwith 02) Alvin G. Blickenstaff 03) William E. Elliott 04) Gerald W. Fletcher 05) John Flournoy 06) Arthur C. Grohs 07) Robert J. McClintock 08) Terrance J. Reeson 09) Daniel E. West Vote on Proposals The Board of Directors recommends you vote FOR the following proposals: For Against Abstain ! ! ! 2. The approval of a non-binding advisory vote on executive compensation, as more fully described in the accompanying Proxy Statement. ! ! ! 3. Ratification of the appointment of Crowe Horwath LLP as our independent auditors for the fiscal year ending December 31, 2012. 4. In their discretion, the proxies are authorized to vote upon such other business as may properly come before the meeting and any adjournments thereof. THIS PROXY MAY BE REVOKED PRIOR TO ITS EXERCISE BY FILING WITH THE SECRETARY OF THE BANCORP A DULY EXECUTED PROXY BEARING A LATER DATE OR AN INSTRUMENT REVOKING THIS PROXY, OR BY ATTENDING THE MEETING AND VOTING IN PERSON.
For address changes and/or comments, please check this box and write them on the back where indicated.o
Please indicate if you plan to attend this meeting.    oo
YesNo
! For address changes and/or comments, please check this box and write them on the back where indicated. ! ! Please indicate if you plan to attend this meeting. Yes No Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer.
Signature [PLEASE SIGN WITHIN BOX]     DateSignature (Joint Owners)Date


 

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M23645-TBD

Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:The Notice and Proxy Statement, Form 10-K and Shareholder Letter are available at www.proxyvote.com. M44286-P24309 PROXY
PLUMAS BANCORP
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS. The undersigned hereby appoints Messrs. Arthur C. Grohs, Daniel E. West, and Terrance J. Reeson, as proxies with full power of substitution, to represent, vote and act, as designated on the reverse side, with respect to all shares of common stock of Plumas Bancorp (the “Bancorp”) which the undersigned would be entitled to vote at the meeting of shareholders to be held on May 19, 201016, 2012 at 10:30 a.m., at the Plumas Bank Credit Administration building located at 32 Central Avenue, Quincy, California or any adjournments thereof, with all the powers the undersigned would possess if personally present.
THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” ALL OF THE NOMINEES LISTED ON THIS PROXY FOR DIRECTOR AND “FOR” APPROVAL OF A NON-BINDING ADVISORY VOTE ON EXECUTIVE COMPENSATION. The Proxy confers authority to vote and shall be voted in accordance with such recommendations unless contrary instructions are indicated, in which case, the shares represented by the Proxy will be voted in accordance with such instructions.COMPENSATION, AND “FOR” THE RATIFICATION OF THE APPOINTMENT OF CROWE HORWATH LLP AS OUR INDEPENDENT AUDITORS FOR THE FISCAL YEAR ENDING DECEMBER 31, 2012. IF NO INSTRUCTIONS AREINSTRUCTION IS SPECIFIED BY THE SHAREHOLDER WITH RESPECTREGARD TO THE MATTERSMATTER ON THE PROXY TO BE ACTED UPON, THE PROXY HOLDERS WILL VOTE THE SHARES REPRESENTED BY THE PROXY WILL BE VOTED IN ACCORDANCE WITH“FOR” EACH OF THE RECOMMENDATIONSNOMINEES FOR DIRECTORS, “FOR” APPROVAL OF MANAGEMENT.A NON-BINDING ADVISORY VOTE ON THE COMPANY’S EXECUTIVE COMPENSATION, AND “FOR” THE RATIFICATION OF THE APPOINTMENT OF CROWE HORWATH LLP AS OUR INDEPENDENT AUDITORS FOR THE FISCAL YEAR ENDING DECEMBER 31, 2012. IF ANY OTHER BUSINESSMATTER IS PRESENTED AT THE MEETING, THISTHE PROXY CONFERS AUTHORITY TO AND SHALL BE VOTEDHOLDERS WILL VOTE IN ACCORDANCE WITH THE RECOMMENDATIONS OF MANAGEMENT.

Address Changes/Comments:
(If Address Changes/Comments: _______________________________________________________________________________ ________________________________________________________________________________________________________ (If you noted any Address Changes/Comments above, please mark corresponding box on the reverse side.)
PLEASE SIGN AND DATE ON THE OTHER SIDE