10.	JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES

Plumas Statutory Trust I and II are business trusts formed by the Company with capital of

$349,000

and

$179,000,

respectively, for the sole purpose of issuing trust preferred securities fully and unconditionally guaranteed by the Company.

During

2002,

Plumas Statutory Trust I issued

6,000

Floating Rate Capital Trust Pass-Through Securities ("Trust Preferred Securities"), with a liquidation value of

$1,000

per security, for gross proceeds of

$6,000,000.

During

2005,

Plumas Statutory Trust II issued

4,000

Trust Preferred Securities with a liquidation value of

$1,000

per security, for gross proceeds of

$4,000,000.

The entire proceeds were invested by Trust I in the amount of

$6,186,000

and Trust II in the amount of

$4,124,000

in Floating Rate Junior Subordinated Deferrable Interest Debentures (the "Subordinated Debentures") issued by the Company, with identical maturity, repricing and payment terms as the Trust Preferred Securities. The Subordinated Debentures represent the sole assets of Trusts I and II.

Trust I’s Subordinated Debentures mature on

September 26, 2032,

bear a current interest rate of

5.35%

(based on

-month LIBOR plus

3.40%

), with repricing and payments due quarterly. Trust II’s Subordinated Debentures mature on

September 28, 2035,

bear a current interest rate of

3.37%

(based on

-month LIBOR plus

1.48%

), with repricing and payments due quarterly. The Subordinated Debentures are redeemable by the Company, subject to receipt by the Company of prior approval from the Federal Reserve Board of Governors, on any quarterly anniversary date on or after the

-year anniversary date of the issuance. The redemption price is par plus accrued and unpaid interest, except in the case of redemption under a special event which is defined in the debenture. The Trust Preferred Securities are subject to mandatory redemption to the extent of any early redemption of the Subordinated Debentures and upon maturity of the Subordinated Debentures on

September 26, 2032

for Trust I and

September 28, 2035

for Trust II.

Holders of the Trust Preferred Securities are entitled to a cumulative cash distribution on the liquidation amount of

$1,000

per security. The interest rate of the Trust Preferred Securities issued by Trust I adjust on each quarterly anniversary date to equal the

-month LIBOR plus

3.40%.

The Trust Preferred Securities issued by Trust II adjust on each quarterly anniversary date to equal the

-month LIBOR plus

1.48%.

Both Trusts I and II have the option to defer payment of the distributions for a period of up to

five

years, as long as the Company is

not

in default on the payment of interest on the Subordinated Debentures.

The Trust Preferred Securities were sold and issued in private transactions pursuant to an exemption from registration under the Securities Act of

1933,

as amended. The Company has guaranteed, on a subordinated basis, distributions and other payments due on the Trust Preferred Securities.

Interest expense recognized by the Company for the years ended

December 31, 2019,

2018

and

2017

related to the subordinated debentures was

$531,000,

$510,000

and

$401,000,

respectively.