Note 4 - Loans

3 Months Ended

Mar. 31, 2013

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note 4 — Loans

The Company’s loan portfolio consists primarily of loans to borrowers within the Central Coast area of California.  Although the Company seeks to avoid concentrations of loans to a single industry or based upon a single class of collateral, real estate and real estate associated businesses are among the principal industries in the Company’s market area and, as a result, the loan and collateral portfolios are concentrated in those industries and in that geographic area.

The following table shows the composition of the Company’s loans by type:

	March 31, 2013					December 31, 2012					March 31, 2012
Type of Loan	Amount		Percentage			Amount		Percentage			Amount		Percentage
Construction and land development	$	12,711		5.2	%	$	11,995		4.9	%	$	18,087		8.0	%
Commercial real estate - owner-occupied		67,824		27.6	%		72,036		29.4	%		70,894		31.4	%
Commercial real estate - non-owner-occupied		68,992		28.1	%		69,145		28.2	%		60,302		26.7	%
Residential real estate		30,795		12.4	%		31,501		12.8	%		33,012		14.6	%
All other real estate loans		12,686		5.2	%		8,299		3.4	%		2,014		0.9	%
Commercial and industrial loans		29,955		12.2	%		33,580		13.7	%		26,019		11.5	%
Agricultural loans		16,089		6.6	%		14,252		5.8	%		9,524		4.2	%
Municipal loans		2,342		1.0	%		2,347		1.0	%		2,388		1.1	%
Leases, net of unearned income		976		0.4	%		1,057		0.4	%		1,835		0.8	%
Consumer loans		3,120		1.3	%		1,077		0.4	%		1,895		0.8	%
Total loans	$	245,490		100.0	%	$	245,289		100.0	%	$	225,970		100.0	%

The table above includes loans held for sale as follows:

	March 31, 2013					December 31, 2012					March 31, 2012
Type of Loan	Amount		% of Total Loans			Amount		% of Total Loans			Amount		% of Total Loans
Commercial and industrial	$	239		0.1	%	$	346		0.1	%	$	721		0.3	%
Real estate		1,187		0.5	%		1,202		0.5	%		1,974		0.9	%
Total loans held for sale	$	1,426		0.6	%	$	1,548		0.6	%	$	5,874		2.6	%

* Consists of all loans held at Mission Asset Management, Inc. and SBA-guaranteed loans held for sale at Mission Community Bank

Loans and leases, other than those held for sale, are carried at the principal amount outstanding, net of any deferred loan origination fee income and deferred direct loan origination costs, and net of any unearned interest on discounted loans.  A separate allowance for loan and lease losses is provided for loans held for investment.  Loans held for sale, including $1,082,000 of impaired loans, are carried at the lower of cost or fair value, with no allowance for loan losses.

As of March 31, 2013, and December 31, 2012, loans totaling $226,915,000 and $218,802,000, respectively, were pledged to secure potential borrowings from the Federal Home Loan Bank of San Francisco.