Note 5 - Concentration of Credit Risk

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

Note

5:

Concentration of Credit Risk

Under the California Financial Code, credit extended to any

one

person owing to a commercial bank at any

one

time shall

not

exceed the following limitations: (a) unsecured loans shall

not

exceed

15

percent of the sum of the shareholders' equity, allowance for loan losses, capital notes, and debentures of the bank, or (b) secured and unsecured loans in all shall

not

exceed

25

percent of the sum of the shareholders' equity, allowance for loan losses, capital notes, and debentures of the bank. At

March 31, 2019,

the Bank did

not

have credit extended to any

one

entity exceeding these limits. At

March 31, 2019,

the Bank had

36

lending relationships each with aggregate amounts of

$5

million or more. The Company has significant credit arrangements that are secured by real estate collateral. In addition to real estate loans outstanding as disclosed in Note

4,

the Company had loan commitments related to real estate loans of

$51,175

thousand and

$53,891

thousand at

March 31, 2019

and

December 31, 2018,

respectively. The Company requires collateral on all real estate loans with loan-to-value ratios at origination generally

no

greater than

75%

on commercial real estate loans and

no

greater than

80%

on residential real estate loans. At

March 31, 2019,

the Bank held corporate bonds in

78

issuing entities that exceeded

$5

million for each issuer.