Plumas in California Exits Tarp with Warrant Purchase

Plumas Bancorp (PLBC) in Quincy, Calif., has exited the Troubled Asset Relief Program by repurchasing a warrant from the Treasury Department.

The $476 million-asset company paid the Treasury $234,500 for the right to buy nearly 238,000 shares of its common stock at $7.54 per share, it said Thursday. Shares of Plumas common stock were trading at $5.81 Thursday afternoon.

In April, Plumas paid $7.6 million at a Treasury Department auction to repurchase a portion of the preferred stock it issued through the Tarp program. Other bidders unrelated to the bank paid $5.3 million for the remainder of the preferred shares. Plumas received $11.9 million through the Tarp program in January 2009.

"We are pleased that we were able to repurchase our warrant at a fair price," said Plumas President and Chief Executive Andrew Ryback in the news release. "The repurchase of our warrant not only protects our shareholders against dilution but also brings our relationship with the Treasury to a close."

Plumas Bank is well capitalized, with a Tier 1 leverage ratio of 10.61% and a total risk-based capital ratio of 15.35%. The Federal Deposit Insurance Corp terminated a consent order with the bank last year.

Plumas has 12 branches in California.