Note 1 - The Business of Plumas Bancorp

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Nature of Operations [Text Block]

1.

THE BUSINESS OF PLUMAS BANCORP

During

2002,

Plumas Bancorp (the "Company") was incorporated as a bank holding company for the purpose of acquiring Plumas Bank (the "Bank") in a

one

bank holding company reorganization. This corporate structure gives the Company and the Bank greater flexibility in terms of operation, expansion and diversification. The Company formed Plumas Statutory Trust I ("Trust I") for the sole purpose of issuing trust preferred securities on

September 26, 2002.

The Company formed Plumas Statutory Trust II ("Trust II") for the sole purpose of issuing trust preferred securities on

September 28, 2005.

The Bank operates

eleven

branches in California, including branches in Alturas, Chester, Fall River Mills, Greenville, Kings Beach, Portola, Quincy, Redding, Susanville, Tahoe City, and Truckee. In

December 2015

the Bank opened a branch in Reno, Nevada; its

first

branch outside of California and in

2018

the Bank purchased a branch located in Carson City, Nevada. The Bank’s administrative headquarters is in Quincy, California. In addition, the Bank operates a lending office specializing in government-guaranteed lending in Auburn, California, and commercial/agricultural lending offices in Chico California and Klamath Falls, Oregon. The Bank's primary source of revenue is generated from providing loans to customers who are predominately small and middle market businesses and individuals residing in the surrounding areas.