Oct 29 - Plumas Bancorp (Nasdaq: PLBC), a bank holding company and the parent company of Plumas Bank in Quincy, Calif., has repurchased the remaining 3,133 shares of the company's fixed-rate cumulative perpetual preferred stock, series A; liquidation preference of $1,000 per share from a third party private investor. The company paid $3,101,670 plus accrued dividends of $30,453. This represents a discount of 1 percent from the liquidation value of the preferred shares.
Funding for this purchase was provided from a promissory note dated Oct. 24, 2013, payable to an unrelated third party. The note bears interest at the U.S. "Prime Rate" + three-quarters percent per annum and has a term of 18 months.
Commenting on the transaction, President and CEO of Plumas Bancorp and Plumas Bank, Andrew J. Ryback, said, "Several years ago we made the important decision to participate in the Troubled Asset Relief Program. This government program provided us with additional capital, and this capital was a vital component of our strategy for navigating through the recession. The fact that we are now in a position to pay back our final outstanding TARP balance is a strong indication that we have made significant progress in our return to a position of financial strength."
He concluded, "We remain focused on building shareholder value and maintaining strong customer relationships that are based on a foundation of trust, integrity and a genuine desire to help our clients become more successful financially."
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 Small Business Administration. For more information on Plumas Bancorp and Plumas Bank, visit www.plumasbank.com.