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Plumas Bancorp: U.S. Treasury Demonstrates Confidence in Plumas Bancorp

^{Published on 2009-02-05 08:46:03, Last Modified on 2009-02-05 08:47:20 - Market Wire}
 

QUINCY, CA--(Marketwire - February 5, 2009) - On Tuesday, February 3, 2009 the U.S. Treasury Department announced it had provided "investments of approximately $1.15 billion in 42 banks across the nation as part of its Capital Purchase Program (CPP), a means to directly infuse capital into healthy, viable banks with the goal of increasing the flow of financing available to small businesses and consumers." Plumas Bancorp (NASDAQ: [ PLBC ]), a bank holding company and the parent company of Plumas Bank, was included in this group of healthy banks, receiving an investment of $12 Million as part of the federal government's economic recovery plan.

Douglas N. Biddle, president and chief executive officer of Plumas Bancorp, commented, "We are very pleased to have qualified for this cost effective program. It is a prudent means to raise additional capital which will better position our company to meet the lending needs of our customers, and provide businesses greater access to the credit that they need to keep operating and growing."

Biddle continued, "Let me refute the media 'hype' surrounding this program by emphasizing that this capital infusion is not a government giveaway or a bailout. The U. S. Treasury will receive a 5% dividend return on its investment and an option to purchase 237,712 shares of Plumas Bancorp common stock at $7.54 per share." He added, "I consider the U. S. Treasury's confidence in Plumas Bancorp's ability to repay this investment as a validation of our company's underlying strength and confidence in its future."

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

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

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

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