May 28 - Plumas Bancorp (Nasdaq: PLBC), a bank holding company and the parent company of Plumas Bank in Quincy, Calif., has announced that it completed the repurchase of the warrant issued to the United States Department of the Treasury in 2009 as part of the Treasury's Troubled Asset Relief Program's Capital Purchase Program. The warrant provided the Treasury the right to purchase 237,712 shares of the Plumas Bancorp's common stock at a price of $7.54 per share. Plumas Bancorp and the Treasury agreed on a repurchase price of $234,500 for the warrant. As a result of the company's repurchase of the warrant, the Treasury no longer has any equity interest in the company.
In April 2013, the company repurchased, at auction, 7,000 of the 11,949 shares of preferred stock originally sold to the Treasury in 2009. The remaining 4,949 shares were sold by the Treasury to investment firms unrelated to the company. The company paid $7.6 million for the 7,000 shares, resulting in a discount of approximately 7 percent on the face value of the preferred shares, plus related outstanding dividends.
Andrew J. Ryback, president and CEO of Plumas Bancorp and Plumas Bank, commented, "We are pleased that we were able to repurchase our warrant at a fair price. The repurchase of our warrant not only protects our shareholders against dilution but also brings our relationship with the Treasury to a close. The conclusion of our participation in the TARP program will allow us to focus on the critical tasks of strengthening our customer relationships and maximizing long-term shareholder value."
Founded in 1980, Plumas Bank is a locally owned and managed full-service community bank based in Northeastern California. The bank operates 11 branches located in the counties of Plumas, Lassen, Placer, Nevada, Modoc and Shasta. Plumas Bank offers a wide range of financial and investment services to consumers and businesses and has received nationwide Preferred Lender status with the United States Small Business Administration. For more information on Plumas Bancorp and Plumas Bank, please visit our website at www.plumasbank.com.