Plumas in California Exits Tarp with $3.1M Payment

Plumas Bancorp (PLBC) in Quincy, Calif., has exited the Troubled Asset Relief Program.

The $493 million-asset company bought back its remaining shares for $3.1 million, a 1% discount, it announced Monday. It paid for the repurchase with a promissory note to an unnamed third party. The note has a term of 18 months and Plumas will pay interest of the U.S. prime rate plus 75 basis points per year, Plumas said.

Plumas received $11.9 million through the Tarp program in January 2009. The Treasury auctioned the stake in April, and Plumas bought back a portion of the shares. Earlier this year, Plumas bought back its Tarp warrant from the Treasury Department.

"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," said Chief Executive Andrew Ryback in a press release.

The Federal Deposit Insurance Corp freed Plumas bank unit from a consent order last year. The company earned $891,000 in the second quarter, up 41% from the same period in 2012, according to its latest quarterly report.