Borrowing Arrangements

12 Months Ended

Dec. 31, 2011

Regulatory Capital Requirements [Abstract]

Borrowing Arrangements

BORROWING ARRANGEMENTS

Federal Home Loan Bank Advances

Advances from the Federal Home Loan Bank (FHLB) of San Francisco at December 31, 2011 and 2010 consisted of the following:

December 31, 2011		December 31, 2010
Amount		Amount			Rate		Maturity Date
$	—	$	5,000		3.00	%	February 7, 2011
—		5,000			3.10	%	February 14, 2011
4,000		4,000			3.59	%	February 12, 2013
4,000		14,000
—		(10,000		)	Less short-term portion
$	4,000	$	4,000		Long-term debt

FHLB advances are secured by investment securities with amortized costs totaling $15,272,000 and $31,918,000 and market values totaling $15,683,000 and $33,214,000 at December 31, 2011 and 2010, respectively.  The Bank’s credit limit varies according to the amount and composition of the investment and loan portfolios pledged as collateral.

As of December 31, 2011 and 2010, the Company had no Federal funds purchased.

Lines of Credit

The Bank had unsecured lines of credit with its correspondent banks which, in the aggregate, amounted to $44,000,000 at December 31, 2011 and $39,000,000 at December 31, 2010, at interest rates which vary with market conditions.  The Bank also had a line of credit in the amount of $551,000 and $1,321,000 with the Federal Reserve Bank of San Francisco at December 31, 2011 and 2010, respectively which bears interest at the prevailing discount rate collateralized by investment securities with amortized costs totaling $542,000 and $1,322,000 and market values totaling $562,000 and $1,354,000, respectively.  At December 31, 2011 and 2010, the Bank had no outstanding short-term borrowings under these lines of credit.