On January 25, 2022, Plumas Bancorp entered into a Loan Agreement (the “Loan Agreement”) and Promissory Note (the “Note”) for a loan in an aggregate amount not to exceed $15,000,000 with TIB, National Association (the “Lender”). The Note, which replaces its existing $15,000,000 lending facility with the Lender, has a term of 13 years. During the initial three years of the Loan Agreement the Note functions as an interest only revolving line of credit.

Beginning on year four the Note converts into a term loan requiring semi-annual principal and interest payments and no further advances can be made. The Promissory Note matures on January 25, 2035. The Note can be prepaid at any time without penalty.

The proceeds of this lending facility shall be used by the Company for general corporation purposes, and to provide capital injections into the Company's subsidiary Plumas Bank (the “Bank”). The Note bears interest at a fixed rate of 3.85% for the first 5 years and then at a floating interest rate linked to WSJ Prime Rate for the remaining eight year term. The Loan Agreement provides for a $187,500.00 loan fee.

The Note is secured by the common stock of the Bank. The Loan Agreement contains certain financial and non-financial covenants, which include, but are not limited to, a minimum leverage ratio at the Bank, a minimum total risk-based capital ratio at the Bank, a maximum Texas Ratio at the Bank, a minimum level of tier 1 capital at the Bank and a return on average assets needed to generate a 1.25X debt service coverage ratio.