Plumas Bancorp (PLBC) 8-K Plumas Bancorp Reports Record Annual Earnings

Exhibit 99.1

PLUMAS BANCORP REPORTS RECORD ANNUAL EARNINGS

QUINCY, California, January 18, 2006 — Plumas Bancorp (NASDAQ: PLBC) today announced that annual earnings for 2005 were $4,528,000, up over 24% from the $3,646,000 earned in 2004. This is the seventeenth consecutive year of record earnings. Quarterly earnings rose 14% to $1,300,000 compared to the $1,139,000 earned in the fourth quarter of 2004.

     At the end of 2005, net loan totaled $319,156,000, an increase of $55,265,000 or 21% over the December 31, 2004 figure of $263,891,000.

     Douglas N. Biddle, president and chief executive officer of Plumas Bancorp and Plumas Bank, commented, “Our record earnings resulted from strong loan growth which positively impacted our net interest margin.” He added, “The board of directors and I are very proud of our loan team and all of our 200 employees who worked so hard to make 2005 such a successful year.” Biddle concluded, “Barring any unforeseen events, we look forward to solid earnings in 2006 and beyond.”

     Adjusted for the September 2005 three-for-two stock split, basic earnings per share for the year rose from $0.75 in 2004 to $0.92 in 2005, an increase of 23%. Diluted earnings per share rose from $0.73 in 2004 to $0.89 in 2005, an increase of 22%. Basic earnings per share for the fourth quarter 2005 rose to $0.26 per share, up 13% from $0.23 for the same quarter in 2004. Diluted earnings per share for the fourth quarter 2005 rose to $0.25 up from $0.23 for 2004, an increase of almost 9%.

     The Company’s assets grew $55,457,000 during 2005 to $472,803,000, up 13% over December 31, 2004. Deposits in 2005 grew $47,993,000 to $426,560,000, up nearly 13% from the December 31, 2004 figure of $378,567,000. Shareholders’ equity at year end was $31,137,000, up almost 12% from the previous year.

     Plumas Bank, a wholly owned subsidiary of Plumas Bancorp, currently operates twelve traditional branches plus five independent ATM sites in Northeastern California’s Plumas, Lassen, Modoc, Shasta, Sierra, Placer, and Nevada counties. The Bank provides consumer, commercial and agricultural banking services, and various investment and insurance services. Additional financial information can be obtained at www.plumasbank.com.

     This news release includes forward-looking statements about Plumas Bancorp’s financial condition, results of operations, plans, objectives and future performance. A number of factors, many of which are beyond the control of the company, could cause actual results to differ materially from those in the forward-looking statements.

PLUMAS BANCORP
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)

	Unaudited
	As of December 31,
							Dollar			Percentage
	2005			2004			Change			Change
ASSETS
Cash and due from banks	$	17,271		$	11,444		$	5,827			50.9	%
Federal funds sold		7,325			—			7,325			100.0	%
Investment securities		97,844			113,252			(15,408	)		(13.6	%)
Loans, less allowance for loan losses of $3,256 at December 31, 2005 and $2,762 at December 31, 2004.		319,156			263,891			55,265			20.9	%
Premises and equipment, net		11,404			9,793			1,611			16.5	%
Intangible assets, net		1,638			1,939			(301	)		(15.5	%)
Company owned life insurance		8,930			8,362			568			6.8	%
Accrued interest receivable and other assets		9,235			8,665			570			6.6	%
Total assets	$	472,803		$	417,346		$	55,457			13.3	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	426,560		$	378,567		$	47,993			12.7	%
Federal funds purchased		—			1,035			(1,035	)		(100.0	%)
Accrued interest payable and other liabilities		4,796			3,667			1,129			30.8	%
Junior subordinated deferrable interest debentures		10,310			6,186			4,124			66.7	%
Total liabilities		441,666			389,455			52,211			13.4	%
Shareholders’ equity		31,137			27,891			3,246			11.6	%
Total liabilities and shareholders’ equity	$	472,803		$	417,346		$	55,457			13.3	%
KEY BALANCE SHEET DATA AND RATIOS
Nonperforming loans	$	1,661		$	1,207
Nonperforming assets	$	1,701		$	1,240
Nonperforming loans as a percentage of total loans		0.52	%		0.45	%
Nonperforming assets as a percentage of total assets		0.36	%		0.30	%
Allowance for loan losses as a percentage of total loans		1.01	%		1.03	%
Loan to deposit ratio		75.4	%		70.5	%
Capital ratios Leverage		8.5	%		7.6	%
Tier 1 risk-based		10.3	%		10.1	%
Total risk-based		11.1	%		10.9	%

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

	Unaudited
	For the Three Months
	Ended December 31
							Dollar		Percentage
	2005			2004			Change		Change
Interest income	$	7,003		$	5,490		$	1,513		27.6	%
Interest expense		1,462			798			664		83.2	%
Net interest income before provision for loan losses		5,541			4,692			849		18.1	%
Provision for loan losses		200			150			50		33.3	%
Net interest income after provision for loan losses		5,341			4,542			799		17.6	%
Non-interest income		1,235			1,169			66		5.6	%
Non-interest expenses		4,496			3,989			507		12.7	%
Income before provision for income taxes		2,080			1,722			358		20.8	%
Provision for income taxes		780			583			197		33.8	%
Net income	$	1,300		$	1,139		$	161		14.1	%
Basic earnings per share	$	0.26		$	0.23		$	0.03		13.0	%
Diluted earnings per share	$	0.25		$	0.23		$	0.02		8.7	%
KEY INCOME STATEMENT DATA AND RATIOS
Net loan charge-offs	$	233		$	113
Net loan charge-offs as a percentage of average loans		0.29	%		0.17	%
Return on average assets (annualized)		1.08	%		1.05	%
Return on average equity (annualized)		16.8	%		16.3	%
Net interest margin		5.05	%		4.84	%

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

	Unaudited
	For the Year
	Ended December 31
							Dollar			Percentage
	2005			2004			Change			Change
Interest income	$	25,497		$	20,110		$	5,387			26.8	%
Interest expense		4,793			2,914			1,879			64.5	%
Net interest income before provision for loan losses		20,704			17,196			3,508			20.4	%
Provision for loan losses		1,100			750			350			46.7	%
Net interest income after provision for loan losses		19,604			16,446			3,158			19.2	%
Non-interest income		4,653			4,784			(131	)		(2.7	%)
Non-interest expenses		17,129			15,583			1,546			9.9	%
Income before provision for income taxes		7,128			5,647			1,481			26.2	%
Provision for income taxes		2,600			2,001			599			29.9	%
Net income	$	4,528		$	3,646		$	882			24.2	%
Basic earnings per share	$	0.92		$	0.75		$	0.17			22.7	%
Diluted earnings per share	$	0.89		$	0.73		$	0.16			21.9	%
KEY INCOME STATEMENT DATA AND RATIOS
Net loan charge-offs	$	567		$	552
Net loan charge-offs as a percentage of average loans		0.19	%		0.24	%
Return on average assets (annualized)		1.00	%		0.89	%
Return on average equity (annualized)		15.3	%		13.5	%
Net interest margin		5.06	%		4.77	%