Note 9 - Borrowing Arrangements

12 Months Ended

Dec. 31, 2019

9.	BORROWING ARRANGEMENTS

The Company is a member of the FHLB and can borrow up to

$229,464,000

from the FHLB secured by commercial and residential mortgage loans with carrying values totaling

$367,188,000.

The Company is required to hold FHLB stock as a condition of membership. At

December 31, 2019

and

December 31, 2018

, the Company held

$3,517,000

and

$3,027,000,

respectively of FHLB stock which is recorded as a component of other assets. Based on this level of stock holdings at

December 31, 2019

, the Company can borrow up to

$130,241,000.

To borrow the

$229,464,000

in available credit the Company would need to purchase

$2,679,000

in additional FHLB stock. In addition to its FHLB borrowing line, the Company has unsecured short-term borrowing agreements with

three

of its correspondent banks in the amounts of

$20

million,

$11

million and

$10

million. There were

outstanding borrowings to the FHLB or the correspondent banks under these agreements at

December 31, 2019

and

2018

October 1, 2019

the Company renewed its line of credit, for a

one

-year term, with the same lender (the “Note”). The maximum amount outstanding at any

one

time on the Note cannot exceed

million. There were

borrowings on the Note during the years ended

December 31, 2019

and

2018.

The Note bears interest at a rate of the U.S. "Prime Rate" plus

one

-quarter percent per annum and is secured by

100

shares of Plumas Bank stock representing the Company's

100%

ownership interest in Plumas Bank. Under the Note, the Bank is subject to several negative and affirmative covenants including, but

not

limited to providing timely financial information, maintaining specified levels of capital, restrictions on additional borrowings, and meeting or exceeding certain capital and asset quality ratios. The Bank was in compliance with all such covenants related to the Note at

December 31, 2019

and

December 31, 2018.