NOTE E - LOANS

9 Months Ended

Sep. 30, 2011

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

NOTE E – LOANS

The Company originates loans for business, consumer and real estate activities and for equipment purchases. Such loans are concentrated in the Company’s market areas which consist of Yolo, Placer, Sonoma, Shasta, Humboldt, Mendocino, Trinity and Del Norte Counties and neighboring communities. Loans decreased $41,926,000 during the first nine months of 2011 to $472,116,000 at September 30, 2011 from $514,042,000 at December 31, 2010. At September 30, 2011 compared to December 31, 2010, real estate construction loans decreased by $20,296,000 as the Company continues to reduce its exposure in this loan type. The Company is focused on the origination of owner-occupied commercial real estate lending and commercial loans, although such loans decreased by $10,071,000 and $6,813,000, respectively, as loan demand for these products remained soft during the first nine months of 2011. Major classifications of loans were as follows (in thousands):

	September 30,			December 31,
	2011			2010
Commercial	$	47,826		$	54,639
Real estate - commercial		281,443			291,514
Real estate - construction		34,885			55,181
Real estate - mortgage		48,462			49,726
Installment		10,958			14,690
Other		48,542			48,292
		472,116			514,042
Deferred loan fees, net		(358	)		(576	)
Allowance for loan losses		(13,671	)		(14,993	)
	$	458,087		$	498,473