UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 11-K

þ		ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)

For the fiscal year ended December 31, 2006

o		TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)

For the transition period from                      to                     

A. Full title of the plan and address of the plan, if different from that of issuer named below:

B. Name of issuer of the securities held pursuant to the plan and address of its principal executive office:

Plumas Bancorp

REQUIRED INFORMATION

1.		Not Applicable
2.		Not Applicable
3.		Not Applicable
4.		The Plumas Bank 401(k) Profit Sharing Plan, (the “Plan”) is subject to the requirements of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Furnished herewith are the financial statements and schedules of the Plan for the fiscal year ended December 31, 2006, prepared in accordance with the financial reporting requirements of ERISA.

 

 

PLUMAS BANK

401(k) PROFIT SHARING PLAN

FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2006 AND 2005

AND FOR THE YEARS THEN ENDED

AND

SUPPLEMENTAL SCHEDULE

AS OF DECEMBER 31, 2006

AND

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

PLUMAS BANK
401(k) PROFIT SHARING PLAN

FINANCIAL STATEMENTS
AND SUPPLEMENTAL SCHEDULE

TABLE OF CONTENTS

		Page
Report of Independent Registered Public Accounting Firm			1
Financial Statements:
Statement of Net Assets Available for Benefits as of December 31, 2006 and 2005			2
Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 2006 and 2005			3
Notes to Financial Statements			4-9
Supplemental Schedule:
Schedule H, Line 4i — Schedule of Assets (Held at End of Year) as of December 31, 2006			10
EXHIBIT 23.1

All other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustees of

Plumas Bank 401(k)
Profit Sharing Plan

          We have audited the accompanying statement of net assets available for benefits and the related statement of changes in net assets available for benefits of the Plumas Bank 401(k) Profit Sharing Plan (the “Plan”) as of and for the years ended December 31, 2006 and 2005. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

          We conducted our audits in accordance with the Auditing Standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

          In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits and the changes in net assets available for benefits of the Plumas Bank 401(k) Profit Sharing Plan as of and for the years ended December 31, 2006 and 2005, in conformity with accounting principles generally accepted in the United States of America.

          Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets (held at end of year), as of December 31, 2006, is presented for the purpose of additional analysis and is not a required part of the basic financial statements, but is supplementary information required by the United States Department of Labor Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audit of the basic 2006 financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic 2006 financial statements taken as a whole.

/s/ Perry-Smith LLP

Sacramento, California
June 26, 2007

PLUMAS BANK
401(k) PROFIT SHARING PLAN

STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS

December 31, 2006 and 2005

		2006				2005
ASSETS
Investments:
Participant-directed investments at fair value (Note 3)		$	7,770,733			$	7,972,330
Participant loans			175,562				237,099
Total investments			7,946,295				8,209,429
Receivables:
Employer contributions							7,283
Participant contributions							25,847
Total receivables							33,130
Net assets available for benefits		$	7,946,295			$	8,242,559

The accompanying notes are an integral
part of these financial statements.

PLUMAS BANK
401(k) PROFIT SHARING PLAN

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

For the Years Ended December 31, 2006 and 2005

		2006				2005
ADDITIONS
Investment income:
Net (depreciation) appreciation in fair value of investments (Note 3)		$	(60,781	)		$	1,202,003
Interest and dividends			110,008				90,214
Total investment income			49,227				1,292,217
Contributions:
Participant			660,619				629,069
Employer			197,625				181,214
Total contributions			858,244				810,283
Total additions			907,471				2,102,500
DEDUCTIONS
Benefits paid to participants			1,203,735				492,870
Net (decrease) increase			(296,264	)			1,609,630
Net assets available for benefits:
Beginning of year			8,242,559				6,632,929
End of year		$	7,946,295			$	8,242,559

The accompanying notes are an integral
part of these financial statements.

PLUMAS BANK
401(k) PROFIT SHARING PLAN

NOTES TO FINANCIAL STATEMENTS

1.		DESCRIPTION OF PLAN
		The following description of the Plumas Bank (the “Bank”) 401(k) Profit Sharing Plan (the “Plan”) provides only general information. Participants should refer to the Summary Plan Description or the Plan Document for a more complete description of the Plan’s provisions.
		General
		Plumas Bank, the Plan Sponsor, established the Plan effective on April 1, 1988, that provides all Bank employees, not otherwise excluded, who have completed 90 days of service and are eighteen years of age with the opportunity to defer a portion of their eligible compensation on a pre-tax basis. All investments in the Plan are participant directed. Prudential Trust Company (Prudential) is the Trustee of the Plan. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
		Participant Contributions
		Each year, participants may make salary deferral contributions in any percentage of their pretax annual compensation, as defined in the Plan, subject to certain Internal Revenue Code (IRC) limitations. All participant contributions and earnings thereon are 100% vested.
		Employer Contributions
		The Bank provides a 100% match on each participant’s elective deferral up to 3% of the participant’s eligible compensation. At the discretion of the Bank, the Bank may also make a non-elective contribution to the Plan. Bank contributions are subject to certain IRC limitations. During 2005 and 2006 the Bank made no discretionary contributions. Both the matching contribution and any non-elective contribution vest over a five-year period as follows:

		Percentage
Service		Vested
2 years but less than 3 years			25	%
3 years but less than 4 years			50	%
4 years but less than 5 years			75	%
5 years or more			100	%

		Participant Accounts
		Individual accounts are maintained for each Plan participant. Each participant’s account is credited with the participant’s contribution and allocations of the Bank’s matching and discretionary contributions and Plan earnings and charged with withdrawals and an allocation of Plan losses. Allocations are based on participant earnings or account balances as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.

PLUMAS BANK
401(k) PROFIT SHARING PLAN

NOTES TO FINANCIAL STATEMENTS
(Continued)

1.		DESCRIPTION OF PLAN (Continued)
		Participant’s Investment Options
		Participants direct all of their voluntary contributions and their portion of the employer matching contributions among any or all of the investment options offered by Prudential Insurance Company of America (Prudential). The investment options include a range of funds that are invested in shares of thirteen registered investment companies (mutual funds) that invest mainly in common stocks and bonds.
		In addition, participants have the option of investing in Plumas Bancorp common stock, up to 50% of the participant’s total elective deferrals. These investments are also maintained by the Plan’s Trustee.
		Participants may change their investment options without restriction.
		Participant Loans
		Participants may borrow from their accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance. Loan transactions are treated as a transfer (from) to the investment fund (to) from the Participant Loans fund. Loan terms range from one to five years, or longer if used to purchase the primary residence of the participant. The loans are secured by the balance in the participant’s account and bear interest at prevailing market rates at the time of borrowing. Principal and interest is paid ratably through semi-monthly payroll deductions.
		Payment of Benefits
		Upon termination of employment or other reasons specified by the Plan, a participant with a vested account balance that exceeds $5,000 may elect to receive: (1) a lump sum payment, (2) a part lump sum payment and part installment payments as described in (3), or (3) installment payments (annually, quarterly or monthly) over a specified period of time, not exceeding the participant’s life expectancy or the joint life expectancy of the participant or participant’s beneficiary. For a participant with a vested account balance of $5,000 or less, a lump sum payment is distributed to the participant. Distributions between $1,000 and $5,000 may be made automatically to a participant without requiring the participant’s consent. If the participant does not elect to have such distribution paid directly to an “eligible retirement plan” in a direct rollover or to receive the distribution directly, then the Plan’s Sponsor automatically pays the distribution through a direct rollover to an individual retirement plan designated by the Plan’s Sponsor. As of December 31, 2006 and 2005, there were no benefits payable to participants that have elected to withdraw from the Plan but have not yet been paid.

PLUMAS BANK
401(k) PROFIT SHARING PLAN

NOTES TO FINANCIAL STATEMENTS
(Continued)

1.		DESCRIPTION OF PLAN (Continued)
		Forfeitures
		Forfeitures from the nonvested portion of terminated employees’ account balances can be used to reduce employer contributions in the following plan year. Forfeitures totaling $5,844 and $8,009 were used to reduce employer contributions for the years ending December 31, 2006 and 2005, respectively.
		Administrative Costs
		The Bank pays the administrative costs of the Plan. Investment management fees are paid by the Plan.
		Plan Termination
		Although it has not expressed any intent to do so, the Bank has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event that the Plan is terminated, participants would become 100% vested in their accounts.
2.		SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
		Basis of Accounting
		The accompanying financial statements of the Plan have been prepared in accordance with accounting principles generally accepted in the United States of America.
		Use of Estimates
		The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Plan’s management to make estimates and assumptions that affect certain reported amounts of net assets available for benefits and changes therein and disclosure of contingent assets and liabilities. Actual results may differ from those estimates. The Plan utilizes various investment instruments, including mutual funds and the common stock of the Plan Sponsor. Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the financial statements.
		Investment Valuation and Income Recognition
		The Plan’s investments are stated at fair value. Quoted market prices as of the last business day of the Plan year are used to value investments in registered investment companies (mutual funds) as well as in Plumas Bancorp’s common stock. Participant loans receivable are valued at the outstanding loan balances.

PLUMAS BANK
401(k) PROFIT SHARING PLAN

NOTES TO FINANCIAL STATEMENTS
(Continued)

2.		SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
		Investment Valuation and Income Recognition (Continued)
		Purchases and sales of securities are recorded on a trade date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation (depreciation) in fair value of investments includes net unrealized market appreciation and (depreciation) of investments and net realized gains and losses on the sale of investments during the period.
		Payment of Benefits
		Benefits are recorded when paid.
		Impact of New Financial Accounting Standard
		Fair Value Measurements
		In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“SFAS 157”), which defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. SFAS 157 does not require new fair value measurements, but provides guidance on how to measure fair value by establishing a fair value hierarchy used to classify the source of the information. SFAS 157 is effective for fiscal years beginning after November 15, 2007. The Plan’s management does not expect the adoption of SFAS 157 to have a material impact on the Plan’s financial position or results of operations.
		Fair Value Accounting
		In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities — Including an Amendment of FASB Statement No. 115 (“SFAS 159”). This Statement permits entities to choose to measure many financial instruments and certain other items at fair value. Unrealized gains and losses on items for which the fair value option has been elected will be reported in earnings. The objective is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. This Statement is expected to expand the use of fair value measurement, which is consistent with the FASB’s long-term measurement objectives for accounting for financial instruments. SFAS 159 is effective for fiscal years beginning after November 15, 2007. Early adoption is permitted as of the beginning of the previous fiscal year provided that the entity makes that choice in the first 120 days of that fiscal year and also elects to apply the provisions of SFAS 157. The Plan’s management has not chosen early adoptions of SFAS No. 159. The Plan’s management does not expect the adoption of SFAS 159 to have a material impact on the Plan’s financial position or results of operations.

PLUMAS BANK
401(k) PROFIT SHARING PLAN

NOTES TO FINANCIAL STATEMENTS
(Continued)

3.		INVESTMENTS
		The following table presents the fair value of the investments in the Plan. Investments representing more than 5% of the Plan’s net assets as of December 31, 2006 and 2005 are separately identified.

		December 31,
		2006				2005
Investments at quoted market prices:
Plumas Bancorp Common Stock		$	1,534,242			$	2,305,809
Davis NY Venture Fund			1,373,322				1,120,247
Euro Pacific Growth Fund			1,018,109				726,236
Stable Value Fund			657,969				636,921
Jennison Growth Fund			573,586				555,908
Goldman Sachs Mid Cap Fund			483,033				456,625
Van Kampen Equity Income Fund			478,058				499,641
PIMCO Total Return Fund			473,920				570,787
Other investments			1,178,494				1,100,156
			7,770,733				7,972,330
Other investments:
Loans to participants			175,562				237,099
Total investments		$	7,946,295			$	8,209,429

		The Plan’s investments, including investments bought, sold and held during the year, (depreciated) appreciated in value by $(60,781) and $1,202,003 during 2006 and 2005, respectively.
4.		CONCENTRATION OF INVESTMENTS
		At December 31, 2006 and 2005, the Plan held investments in Plumas Bancorp common stock, representing approximately 19% and 28% of net assets available for benefits, respectively. A significant decline in the performance of Plumas Bancorp common stock could have a materially adverse impact on the Plan’s net assets available for benefits.
5.		RELATED-PARTY TRANSACTIONS
		Certain Plan investments are shares of mutual funds managed by Prudential. Prudential is the Trustee as defined by the Plan and, therefore, these transactions qualify as party-in-interest transactions. Fees paid by the Plan for investment management services were included as a reduction of the return earned on each fund.

PLUMAS BANK
401(k) PROFIT SHARING PLAN

NOTES TO FINANCIAL STATEMENTS
(Continued)

5.		RELATED-PARTY TRANSACTIONS (Continued)
		At December 31, 2006 and 2005, the Plan’s investments in Plumas Bancorp common stock (a party-in-interest) are as follows:

		December 31,
		2006				2005
Number of shares			102,900				109,800
Fair value, based on quoted market values		$	1,534,242			$	2,305,809

		The Plan’s investment in Plumas Bancorp’s common stock, including investments bought, sold and held during the year, (depreciated) appreciated in value by $(657,474) and $792,117 during 2006 and 2005, respectively, which is included in the total investment appreciation discussed in Note 3.
6.		FEDERAL INCOME TAX STATUS
		The Internal Revenue Service has determined, and informed the Bank by a letter dated November 20, 1992, that the Plan and related trust are designed in accordance with applicable regulations of the Internal Revenue Code (IRC). The Plan has been amended since receiving the determination letter. However, the Plan Administrator believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC and the Plan continues to be tax exempt. Therefore, no provision for income taxes has been included in the financial statements.

SUPPLEMENTAL SCHEDULE

PLUMAS BANK
401(k) PROFIT SHARING PLAN

EMPLOYER IDENTIFICATION NUMBER: 95-3520374
PLAN NUMBER: 001

SCHEDULE H, LINE 4i — SCHEDULE OF ASSETS (HELD AT END OF YEAR)

December 31, 2006

(c)

(b)

Description of Investment,

Identity

Including Maturity Date,

of Issuer, Borrower,

Rate of Interest, Collateral,

(d)

(e)

(a)

Lessor or Similar Party

Par or Maturity Value

Cost

Value

Davis NY Venture Fund

Mutual Fund

*

$

1,373,322

Euro Pacific Growth Fund

Mutual Fund

*

1,018,109

Stable Value Fund

Common / Collective Trust

*

657,969

*

*

Jennison Growth Fund

Mutual Fund

*

573,586

Goldman Sachs Mid Cap Fund

Mutual Fund

*

483,033

Van Kampen Equity Income Fund

Mutual Fund

*

478,058

PIMCO Total Return Fund

Mutual Fund

*

473,920

Franklin Small Cap Fund

Mutual Fund

*

394,999

Goldman Sachs Small Cap Fund

Mutual Fund

*

246,070

*

*

US Emerging Growth Fund

Mutual Fund

*

218,125

*

*

Dryden Stock Index Fund

Mutual Fund

*

171,428

Growth Fund of America

Mutual Fund

*

122,955

Fidelity Adv Small Cap Fund

Mutual Fund

*

24,917

*

*

Plumas Bancorp

Common Stock — 102,900 shares

*

1,534,242

*

*

Participant Loans

Maturing at various dates through

December 2011 at interest rates

ranging from 5.25% to 9.25%

175,562

$

7,946,295

SIGNATURES

The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees or other persons who administer the Plan have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

		Plumas Bank 401(k) Profit Sharing Plan   (Name of Plan)
Date: June 28, 2007		/s/ Andrew J. Ryback   Andrew J. Ryback
		EVP/Chief Financial Officer

EXHIBIT INDEX

Exhibit		Description
23.1		Consent of Perry-Smith LLP, Independent Registered Public Accounting Firm