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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended March 31, 2011
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OR
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|
o
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TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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California
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77-0559736
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(State or other jurisdiction
of incorporation)
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(I.R.S. Employer
Identification No.)
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Large accelerated filer o
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Accelerated filer o
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Non-accelerated filer o
(Do not check if a smaller reporting company)
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Smaller reporting company þ
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
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Item 4T. Controls and Procedures
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Condensed Consolidated Balance Sheets
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||||||||||||
Unaudited
|
||||||||||||
(dollars in thousands)
|
||||||||||||
March 31, 2011
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December 31, 2010
|
March 31, 2010
|
||||||||||
Assets
|
||||||||||||
Cash and due from banks
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$ | 8,370 | $ | 10,817 | $ | 13,900 | ||||||
Federal funds sold
|
- | - | - | |||||||||
Total cash and cash equivalents
|
8,370 | 10,817 | 13,900 | |||||||||
Interest-bearing deposits in other banks
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302 | 550 | 400 | |||||||||
Investment securities available for sale
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79,399 | 75,435 | 40,662 | |||||||||
Loans held for sale
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12,457 | 15,115 | 771 | |||||||||
Loans, net of unearned income
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105,294 | 105,110 | 131,714 | |||||||||
Less allowance for loan and lease losses
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(3,245 | ) | (3,198 | ) | (5,080 | ) | ||||||
Net loans
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102,049 | 101,912 | 126,634 | |||||||||
Federal Home Loan Bank stock and other stock, at cost
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2,606 | 2,682 | 3,003 | |||||||||
Premises and equipment
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3,165 | 3,199 | 3,335 | |||||||||
Other real estate owned
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4,053 | 3,137 | 1,500 | |||||||||
Company owned life insurance
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3,002 | 2,980 | 2,909 | |||||||||
Accrued interest and other assets
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2,216 | 1,974 | 1,847 | |||||||||
Total Assets
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$ | 217,619 | $ | 217,801 | $ | 194,961 | ||||||
Liabilities and Shareholders' Equity
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest-bearing demand
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$ | 24,706 | $ | 22,910 | $ | 22,194 | ||||||
Money market, NOW and savings
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63,346 | 70,010 | 57,979 | |||||||||
Time certificates of deposit
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86,606 | 80,320 | 85,178 | |||||||||
Total deposits
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174,658 | 173,240 | 165,351 | |||||||||
Other borrowings
|
- | 349 | 6,000 | |||||||||
Junior subordinated debt securities
|
3,093 | 3,093 | 3,093 | |||||||||
Accrued interest and other liabilities
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1,445 | 1,975 | 2,234 | |||||||||
Total liabilities
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179,196 | 178,657 | 176,678 | |||||||||
Shareholders' equity:
|
||||||||||||
Preferred stock - Series A (100,000 shares issued and outstanding)
|
392 | 392 | 392 | |||||||||
Preferred stock - Series B (20,500 shares issued and outstanding)
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192 | 192 | 192 | |||||||||
Preferred stock - Series C (50,000 shares issued and outstanding)
|
500 | 500 | 500 | |||||||||
Preferred stock - Series D (5,116 shares issued and outstanding)
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5,068 | 5,068 | 5,068 | |||||||||
Common stock - 50,000,000 shares authorized;
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||||||||||||
Issued and outstanding: 7,094,274 at March 31, 2011
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||||||||||||
and December 31, 2010, and 1,345,602 at March 31, 2010
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46,387 | 46,427 | 18,042 | |||||||||
Additional paid-in capital
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361 | 327 | 251 | |||||||||
Retained deficit
|
(13,751 | ) | (13,220 | ) | (6,730 | ) | ||||||
Accumulated other comprehensive (loss) income
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(726 | ) | (542 | ) | 568 | |||||||
Total shareholders' equity
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38,423 | 39,144 | 18,283 | |||||||||
Total Liabilities and Shareholders' Equity
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$ | 217,619 | $ | 217,801 | $ | 194,961 |
Mission Community Bancorp and Subsidiaries
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||||||||
Condensed Consolidated Statements of Operations
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||||||||
Unaudited
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||||||||
(in thousands, except per share data)
|
||||||||
For the Three Months Ended
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||||||||
March 31, 2011
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March 31, 2010
|
|||||||
Interest Income
|
||||||||
Interest and fees on loans
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$ | 1,789 | $ | 2,058 | ||||
Interest on investment securities
|
419 | 309 | ||||||
Other interest income
|
10 | 7 | ||||||
Total interest income
|
2,218 | 2,374 | ||||||
Interest Expense
|
||||||||
Interest on money market, NOW and savings deposits
|
115 | 119 | ||||||
Interest on time certificates of deposit
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247 | 338 | ||||||
Other interest expense
|
30 | 99 | ||||||
Total interest expense
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392 | 556 | ||||||
Net interest income
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1,826 | 1,818 | ||||||
Provision for loan and lease losses
|
- | 200 | ||||||
Net interest income after provision for loan and lease losses
|
1,826 | 1,618 | ||||||
Non-interest income
|
||||||||
Service charges on deposit accounts
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77 | 82 | ||||||
Gain on sale of loans
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106 | - | ||||||
Loan servicing fees, net of amortization
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24 | 34 | ||||||
Gain on sale of available-for-sale securities
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- | 58 | ||||||
Other real estate income
|
20 | - | ||||||
Net losses and writedowns of fixed assets or other real estate
|
(47 | ) | (106 | ) | ||||
Gain on disposition of loans held for sale
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50 | - | ||||||
Other income and fees
|
42 | 39 | ||||||
Total non-interest income
|
272 | 107 | ||||||
Non-interest expense
|
||||||||
Salaries and employee benefits
|
1,315 | 923 | ||||||
Occupancy expenses
|
321 | 300 | ||||||
Furniture and equipment
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114 | 124 | ||||||
Data processing
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201 | 188 | ||||||
Professional fees
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130 | 134 | ||||||
Marketing and business development
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37 | 29 | ||||||
Office supplies and expenses
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59 | 57 | ||||||
Insurance and regulatory assessments
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145 | 204 | ||||||
Loan and lease expenses
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37 | 28 | ||||||
Other real estate expenses
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56 | 10 | ||||||
Other expenses
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150 | 114 | ||||||
Total non-interest expense
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2,565 | 2,111 | ||||||
Loss before income taxes
|
(467 | ) | (386 | ) | ||||
Income tax expense (benefit)
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- | - | ||||||
Net loss
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$ | (467 | ) | $ | (386 | ) | ||
Net loss applicable to common stock
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$ | (522 | ) | $ | (413 | ) | ||
Per Common Share Data:
|
||||||||
Net loss - basic
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$ | (0.07 | ) | $ | (0.31 | ) | ||
Average common shares outstanding - basic
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7,094,274 | 1,345,602 |
Mission Community Bancorp and Subsidiaries
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||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Changes in Shareholders' Equity
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||||||||||||||||||||||||||||||||
(Unaudited - dollars in thousands)
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||||||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||||||
Additional
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Other
|
|||||||||||||||||||||||||||||||
Preferred
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Common Stock
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Paid-In
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Comprehensive
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Retained
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Comprehensive
|
|||||||||||||||||||||||||||
Stock
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Shares
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Amount
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Capital
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Loss
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Deficit
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Loss
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Total
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|||||||||||||||||||||||||
Balance at January 1, 2010
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$ | 6,152 | 1,345,602 | $ | 18,042 | $ | 242 | $ | (6,280 | ) | $ | 482 | $ | 18,638 | ||||||||||||||||||
Dividends declared and paid
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||||||||||||||||||||||||||||||||
on Series D preferred stock
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(64 | ) | (64 | ) | ||||||||||||||||||||||||||||
Stock-based compensation
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9 | 9 | ||||||||||||||||||||||||||||||
Comprehensive loss:
|
||||||||||||||||||||||||||||||||
Net (loss)
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$ | (386 | ) | (386 | ) | (386 | ) | |||||||||||||||||||||||||
Less beginning of year unrealized
|
||||||||||||||||||||||||||||||||
gain on securities sold during
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||||||||||||||||||||||||||||||||
the period, net of taxes of $0
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(22 | ) | (22 | ) | (22 | ) | ||||||||||||||||||||||||||
Net unrealized gain on remaining
|
||||||||||||||||||||||||||||||||
available-for-sale securities,
|
||||||||||||||||||||||||||||||||
net of taxes of $-0-
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- | - | - | - | 108 | - | 108 | 108 | ||||||||||||||||||||||||
Total comprehensive loss
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$ | (300 | ) | |||||||||||||||||||||||||||||
Balance at March 31, 2010
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$ | 6,152 | 1,345,602 | $ | 18,042 | $ | 251 | $ | (6,730 | ) | $ | 568 | $ | 18,283 | ||||||||||||||||||
Balance at January 1, 2011
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$ | 6,152 | 7,094,274 | $ | 46,427 | $ | 327 | $ | (13,220 | ) | $ | (542 | ) | $ | 39,144 | |||||||||||||||||
Dividends declared and paid
|
||||||||||||||||||||||||||||||||
on Series D preferred stock
|
(64 | ) | (64 | ) | ||||||||||||||||||||||||||||
Stock-based compensation
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34 | 34 | ||||||||||||||||||||||||||||||
Additional expenses of 2010
|
||||||||||||||||||||||||||||||||
shareholder rights offering
|
(40 | ) | (40 | ) | ||||||||||||||||||||||||||||
Comprehensive loss:
|
||||||||||||||||||||||||||||||||
Net (loss)
|
$ | (467 | ) | (467 | ) | (467 | ) | |||||||||||||||||||||||||
Net unrealized gain on
|
||||||||||||||||||||||||||||||||
available-for-sale securities,
|
||||||||||||||||||||||||||||||||
net of taxes of $-0-
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- | - | - | - | (184 | ) | - | (184 | ) | (184 | ) | |||||||||||||||||||||
Total comprehensive loss
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$ | (651 | ) | |||||||||||||||||||||||||||||
Balance at March 31, 2011
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$ | 6,152 | 7,094,274 | $ | 46,387 | $ | 361 | $ | (13,751 | ) | $ | (726 | ) | $ | 38,423 |
Mission Community Bancorp and Subsidiaries
|
||||||||
Condensed Consolidated Statements of Cash Flows
|
||||||||
(Unaudited - dollars in thousands)
|
||||||||
For the Three Months Ended
|
||||||||
March 31, 2011
|
March 31, 2010
|
|||||||
Operating Activities
|
||||||||
Net loss
|
$ | (467 | ) | $ | (386 | ) | ||
Adjustments to reconcile net loss to net
|
||||||||
cash provided by (used in) operating activities:
|
||||||||
Depreciation
|
125 | 133 | ||||||
Accretion of discount on securities and loans, net
|
119 | (23 | ) | |||||
Provision for credit losses
|
- | 200 | ||||||
Stock-based compensation
|
34 | 9 | ||||||
Gain on sale of available-for-sale securities
|
- | (58 | ) | |||||
Gain on sale or disposition of loans held for sale
|
(106 | ) | - | |||||
Net losses and writedowns of fixed assets or other real estate
|
47 | 106 | ||||||
Increase in company-owned life insurance
|
(22 | ) | (23 | ) | ||||
Other, net
|
(773 | ) | 503 | |||||
Proceeds from loan sales
|
965 | 2,920 | ||||||
Loans originated for sale
|
(933 | ) | (2,041 | ) | ||||
Net cash (used in) provided by operating activities
|
(1,011 | ) | 1,340 | |||||
Investing Activities
|
||||||||
Net change in Federal Home Loan Bank and other stock
|
76 | - | ||||||
Net decrease in deposits in other banks
|
248 | 25 | ||||||
Purchase of available-for-sale securities
|
(7,995 | ) | (3,967 | ) | ||||
Proceeds from maturities, calls and paydowns of available-for-sale securities
|
3,703 | 3,536 | ||||||
Proceeds from sales of available-for-sale securities
|
- | 58 | ||||||
Net decrease in loans
|
1,550 | 2,409 | ||||||
Purchases of premises and equipment
|
(91 | ) | (213 | ) | ||||
Additional investments in other real estate owned
|
(32 | ) | - | |||||
Proceeds from sale of other real estate owned
|
139 | 600 | ||||||
Net cash (used in) provided by investing activities
|
(2,402 | ) | 2,448 | |||||
Financing Activities
|
||||||||
Net (decrease) increase in demand deposits and savings accounts
|
(4,868 | ) | 1,413 | |||||
Net increase in time deposits
|
6,287 | 168 | ||||||
Net (decrease) in other borrowings
|
(349 | ) | - | |||||
Additional stock offering costs
|
(40 | ) | - | |||||
Payment of TARP-CPP dividends
|
(64 | ) | (64 | ) | ||||
Net cash provided by financing activities
|
966 | 1,517 | ||||||
Net (decrease) increase in cash and cash equivalents
|
(2,447 | ) | 5,305 | |||||
Cash and cash equivalents at beginning of year
|
10,817 | 8,595 | ||||||
Cash and cash equivalents at end of period
|
$ | 8,370 | $ | 13,900 | ||||
Non-cash changes:
|
||||||||
Change in unrealized gains (losses) on available-for-sale securities
|
$ | (184 | ) | 86 | ||||
Real estate acquired by foreclosure
|
1,070 | - | ||||||
Supplemental disclosures of cash flow information:
|
||||||||
Interest paid
|
382 | 545 | ||||||
Taxes paid
|
- | - |
April 1 through December 31, 2011
|
$ | 104 | ||
2012
|
138 | |||
2013
|
69 | |||
2014
|
6 | |||
2015
|
5 | |||
2016
|
1 | |||
Total unrecognized compensation cost
|
$ | 323 |
(in thousands)
|
Gross
|
Gross
|
Estimated
|
|||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Market
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
March 31, 2011:
|
||||||||||||||||
U.S. Government agencies
|
$ | 27,907 | $ | 41 | $ | (298 | ) | $ | 27,650 | |||||||
Mortgage-backed securities
|
48,164 | 197 | (722 | ) | 47,639 | |||||||||||
Municipal securities
|
2,917 | 46 | - | 2,963 | ||||||||||||
Corporate debt securities
|
996 | 4 | - | 1,000 | ||||||||||||
Asset-backed securities
|
141 | 6 | - | 147 | ||||||||||||
$ | 80,125 | $ | 294 | $ | (1,020 | ) | $ | 79,399 | ||||||||
December 31, 2010:
|
||||||||||||||||
U.S. Government agencies
|
$ | 21,083 | $ | 47 | $ | (270 | ) | $ | 20,860 | |||||||
Mortgage-backed securities
|
49,831 | 215 | (566 | ) | 49,480 | |||||||||||
Municipal securities
|
2,917 | 20 | (15 | ) | 2,922 | |||||||||||
Corporate debt securities
|
1,981 | 20 | - | 2,001 | ||||||||||||
Asset-backed securities
|
165 | 7 | - | 172 | ||||||||||||
$ | 75,977 | $ | 309 | $ | (851 | ) | $ | 75,435 |
(in thousands)
|
Available-for-Sale Securities
|
|||||||
Amortized
|
Fair
|
|||||||
Cost
|
Value
|
|||||||
Within one year
|
$ | 997 | $ | 1,001 | ||||
Due in one year to five years
|
26,986 | 26,735 | ||||||
Due in five years to ten years
|
16,866 | 16,767 | ||||||
Due in greater than ten years
|
35,276 | 34,896 | ||||||
$ | 80,125 | $ | 79,399 |
(in thousands)
|
Less than 12 Months
|
12 Months or Longer
|
Total
|
|||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||
March 31, 2011:
|
||||||||||||||||||||||||
U.S. Government agencies
|
$ | 18,724 | $ | 298 | $ | - | $ | - | $ | 18,724 | $ | 298 | ||||||||||||
Mortgage-backed securities
|
36,242 | 722 | - | - | 36,242 | 722 | ||||||||||||||||||
Municipal securities
|
303 | - | - | - | 303 | - | ||||||||||||||||||
Corporate debt securities
|
- | - | - | - | - | - | ||||||||||||||||||
Asset-backed securities
|
- | - | - | - | - | - | ||||||||||||||||||
$ | 55,269 | $ | 1,020 | $ | - | $ | - | $ | 55,269 | $ | 1,020 | |||||||||||||
December 31, 2010:
|
||||||||||||||||||||||||
U.S. Government agencies
|
$ | 15,985 | $ | 270 | $ | - | $ | - | $ | 15,985 | $ | 270 | ||||||||||||
Mortgage-backed securities
|
37,274 | 566 | - | - | 37,274 | 566 | ||||||||||||||||||
Municipal securities
|
1,169 | 15 | - | - | 1,169 | 15 | ||||||||||||||||||
Corporate debt securities
|
- | - | - | - | - | - | ||||||||||||||||||
Asset-backed securities
|
- | - | - | - | - | - | ||||||||||||||||||
$ | 54,428 | $ | 851 | $ | - | $ | - | $ | 54,428 | $ | 851 |
Loan Composition
|
||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
March 31, 2011
|
December 31, 2010
|
March 31, 2010
|
||||||||||||||||||||||
Type of Loan
|
Amount
|
Percentage
|
Amount
|
Percentage
|
Amount
|
Percentage
|
||||||||||||||||||
Commercial
|
$ | 16,872 | 14.3 | % | $ | 17,701 | 14.7 | % | $ | 19,051 | 14.4 | % | ||||||||||||
Agricultural
|
2,484 | 2.1 | % | 1,022 | 0.9 | % | 671 | 0.5 | % | |||||||||||||||
Leases, net of unearned income
|
933 | 0.8 | % | 1,047 | 0.9 | % | 1,208 | 0.9 | % | |||||||||||||||
Municipal loans
|
3,603 | 3.1 | % | 2,987 | 2.5 | % | 3,822 | 2.9 | % | |||||||||||||||
Real estate
|
84,139 | 71.4 | % | 87,005 | 72.4 | % | 93,658 | 70.7 | % | |||||||||||||||
Construction and land development
|
8,188 | 7.0 | % | 8,972 | 7.4 | % | 12,496 | 9.4 | % | |||||||||||||||
Consumer
|
1,532 | 1.3 | % | 1,491 | 1.2 | % | 1,579 | 1.2 | % | |||||||||||||||
Total loans
|
$ | 117,751 | 100.0 | % | $ | 120,225 | 100.0 | % | $ | 132,485 | 100.0 | % |
Loans Held for Sale
|
||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
March 31, 2011
|
December 31, 2010
|
March 31, 2010
|
||||||||||||||||||||||
Type of Loan
|
Amount
|
% of Total Loans
|
Amount
|
% of Total Loans
|
Amount
|
% of Total Loans
|
||||||||||||||||||
Commercial
|
$ | 243 | 0.2 | % | $ | 32 | 0.0 | % | $ | 771 | 0.6 | % | ||||||||||||
Real estate
|
8,774 | 7.5 | % | 10,545 | 8.8 | % | - | 0.0 | % | |||||||||||||||
Construction and land development
|
3,440 | 2.9 | % | 4,538 | 3.8 | % | - | 0.0 | % | |||||||||||||||
Total loans
|
$ | 12,457 | 10.6 | % | $ | 15,115 | 12.6 | % | $ | 771 | 0.6 | % |
March 31, 2011
|
March 31, 2010
|
|||||||
Balance at beginning of year
|
$ | 3,197,636 | $ | 5,536,929 | ||||
Provision for loan and lease losses charged to expense
|
- | 200,000 | ||||||
Loans charged off
|
(8,049 | ) | (687,354 | ) | ||||
Recoveries on loans previously charged off
|
55,043 | 30,817 | ||||||
Balance at end of period
|
$ | 3,244,630 | $ | 5,080,392 |
Three Months Ended March 31, 2011
|
||||||||||||||||||||
Loan Portfolio Segment
|
Balance at Beginning of Year
|
Provision for Loan Losses Charged (Credited) to Expense
|
Less Loans Charged Off
|
Plus Recoveries on Loans Previously Charged Off:
|
Balance at End of Period
|
|||||||||||||||
Construction and land development
|
$ | 530,473 | $ | 94,082 | $ | - | $ | - | $ | 624,555 | ||||||||||
Commercial real estate - owner-occupied
|
165,181 | 136,031 | - | 10,475 | 311,687 | |||||||||||||||
Commercial real estate - non-owner-occupied
|
696,239 | (222,118 | ) | - | - | 474,121 | ||||||||||||||
Residential real estate
|
501,008 | (83,147 | ) | - | 13,509 | 431,370 | ||||||||||||||
All other real estate loans
|
3,289 | (28 | ) | - | - | 3,261 | ||||||||||||||
Commercial and industrial loans
|
1,021,240 | (131,944 | ) | - | 30,979 | 920,275 | ||||||||||||||
Consumer and all other loans and lease financing
|
123,727 | (5,503 | ) | (8,049 | ) | 80 | 110,255 | |||||||||||||
Unallocated
|
156,479 | 212,627 | - | - | 369,106 | |||||||||||||||
Totals
|
$ | 3,197,636 | $ | - | $ | (8,049 | ) | $ | 55,043 | $ | 3,244,630 | |||||||||
Year Ended December 31, 2010
|
||||||||||||||||||||
Loan Portfolio Segment
|
Balance at Beginning of Year
|
Provision for Loan Losses Charged (Credited) to Expense
|
Less Loans Charged Off
|
Plus Recoveries on Loans Previously Charged Off:
|
Balance at End of Year
|
|||||||||||||||
Construction and land development
|
$ | 1,529,114 | $ | 1,737,805 | $ | (2,755,179 | ) | $ | 18,733 | $ | 530,473 | |||||||||
Commercial real estate - owner-occupied
|
669,727 | 822,197 | (1,326,743 | ) | - | 165,181 | ||||||||||||||
Commercial real estate - non-owner-occupied
|
1,272,180 | 234,669 | (810,610 | ) | - | 696,239 | ||||||||||||||
Residential real estate
|
162,505 | 1,679,365 | (1,340,862 | ) | - | 501,008 | ||||||||||||||
All other real estate loans
|
248,029 | (9,279 | ) | (235,461 | ) | - | 3,289 | |||||||||||||
Commercial and industrial loans
|
866,580 | 1,710,065 | (1,582,702 | ) | 27,297 | 1,021,240 | ||||||||||||||
Consumer and all other loans and lease financing
|
275,646 | (18,153 | ) | (134,401 | ) | 635 | 123,727 | |||||||||||||
Unallocated
|
513,148 | (356,669 | ) | - | - | 156,479 | ||||||||||||||
Totals
|
$ | 5,536,929 | $ | 5,800,000 | $ | (8,185,958 | ) | $ | 46,665 | $ | 3,197,636 |
Loans by Risk Rating
|
Risk Ratings
|
|||||||||||||||||||
(in thousands)
|
Special
|
Total
|
||||||||||||||||||
Pass
|
Mention
|
Substandard
|
Doubtful
|
Loans
|
||||||||||||||||
As of March 31, 2011:
|
||||||||||||||||||||
Construction and land development
|
$ | 3,251 | $ | 173 | $ | 1,324 | $ | - | $ | 4,748 | ||||||||||
Commercial real estate - owner-occupied
|
25,614 | 3,534 | 1,279 | - | 30,427 | |||||||||||||||
Commercial real estate - non-owner-occupied
|
25,427 | 2,750 | 779 | - | 28,956 | |||||||||||||||
Residential real estate
|
14,502 | - | 175 | - | 14,677 | |||||||||||||||
All other real estate
|
1,304 | - | - | - | 1,304 | |||||||||||||||
Commercial and industrial
|
15,474 | 248 | 1,016 | - | 16,738 | |||||||||||||||
Consumer and all other loans and lease financing
|
8,330 | - | 114 | - | 8,444 | |||||||||||||||
Total loans, net of unearned income
|
$ | 93,902 | $ | 6,705 | $ | 4,687 | $ | - | $ | 105,294 | ||||||||||
As of December 31, 2010:
|
||||||||||||||||||||
Construction and land development
|
$ | 2,932 | $ | 179 | $ | 1,324 | $ | - | $ | 4,435 | ||||||||||
Commercial real estate - owner-occupied
|
29,590 | - | 1,023 | - | 30,613 | |||||||||||||||
Commercial real estate - non-owner-occupied
|
22,477 | 6,077 | 781 | - | 29,335 | |||||||||||||||
Residential real estate
|
15,322 | - | - | - | 15,322 | |||||||||||||||
All other real estate
|
1,315 | - | - | - | 1,315 | |||||||||||||||
Commercial and industrial
|
14,872 | 150 | 877 | 13 | 15,912 | |||||||||||||||
Consumer and all other loans and lease financing
|
8,046 | - | 132 | - | 8,178 | |||||||||||||||
Total loans, net of unearned income
|
$ | 94,554 | $ | 6,406 | $ | 4,137 | $ | 13 | $ | 105,110 | ||||||||||
As of March 31, 2010:
|
||||||||||||||||||||
Construction and land development
|
$ | 2,320 | $ | 1,321 | $ | 8,855 | $ | - | $ | 12,496 | ||||||||||
Commercial real estate - owner-occupied
|
25,344 | - | 9,801 | - | 35,145 | |||||||||||||||
Commercial real estate - non-owner-occupied
|
29,161 | 665 | 6,923 | - | 36,749 | |||||||||||||||
Residential real estate
|
16,444 | 322 | 1,752 | - | 18,518 | |||||||||||||||
All other real estate
|
1,326 | - | 1,942 | - | 3,268 | |||||||||||||||
Commercial and industrial
|
12,470 | 354 | 2,588 | 13 | 15,425 | |||||||||||||||
Consumer and all other loans and lease financing
|
9,191 | - | 922 | - | 10,113 | |||||||||||||||
Total loans, net of unearned income
|
$ | 96,256 | $ | 2,662 | $ | 32,783 | $ | 13 | $ | 131,714 |
Loans by Delinquency Status
|
Accruing
|
Past Due
|
||||||||||||||||||||||||||||||||||
(in thousands)
|
Recorded Balance of Loans Past Due
|
Troubled
|
90+ Days
|
Loans in
|
||||||||||||||||||||||||||||||||
30-59 | 60-89 | 90 | + |
Total
|
Debt
|
and
|
Non-Accrual
|
|||||||||||||||||||||||||||||
Days
|
Days
|
Days
|
Past Due
|
Current
|
Total Loans
|
Restructurings
|
Accruing
|
Status
|
||||||||||||||||||||||||||||
As of March 31, 2011:
|
||||||||||||||||||||||||||||||||||||
Construction and land development
|
$ | - | $ | - | $ | - | $ | - | $ | 4,748 | $ | 4,748 | $ | - | $ | - | $ | - | ||||||||||||||||||
Commercial real estate - owner-occupied
|
- | - | 682 | 682 | 29,745 | 30,427 | - | - | 710 | |||||||||||||||||||||||||||
Commercial real estate - non-owner-occupied
|
196 | - | - | 196 | 28,760 | 28,956 | - | - | - | |||||||||||||||||||||||||||
Residential real estate
|
- | 175 | - | 175 | 14,502 | 14,677 | - | - | - | |||||||||||||||||||||||||||
All other real estate
|
- | - | - | - | 1,304 | 1,304 | - | - | - | |||||||||||||||||||||||||||
Commercial and industrial
|
249 | - | 235 | 484 | 16,254 | 16,738 | - | - | 652 | |||||||||||||||||||||||||||
Consumer and all other loans and lease financing
|
- | - | - | - | 8,444 | 8,444 | 8 | - | - | |||||||||||||||||||||||||||
Total loans, net of unearned income
|
$ | 445 | $ | 175 | $ | 917 | $ | 1,537 | $ | 103,757 | $ | 105,294 | $ | 8 | $ | - | $ | 1,362 | ||||||||||||||||||
As of December 31, 2010:
|
||||||||||||||||||||||||||||||||||||
Construction and land development
|
$ | - | $ | - | $ | - | $ | - | $ | 4,435 | $ | 4,435 | $ | - | $ | - | $ | - | ||||||||||||||||||
Commercial real estate - owner-occupied
|
- | 681 | - | 681 | 29,932 | 30,613 | - | - | 641 | |||||||||||||||||||||||||||
Commercial real estate - non-owner-occupied
|
- | - | - | - | 29,335 | 29,335 | - | - | - | |||||||||||||||||||||||||||
Residential real estate
|
- | - | - | - | 15,322 | 15,322 | - | - | - | |||||||||||||||||||||||||||
All other real estate
|
- | - | - | - | 1,315 | 1,315 | - | - | - | |||||||||||||||||||||||||||
Commercial and industrial
|
237 | 165 | 821 | 1,223 | 14,689 | 15,912 | - | - | 1,352 | |||||||||||||||||||||||||||
Consumer and all other loans and lease financing
|
38 | - | - | 38 | 8,140 | 8,178 | - | - | - | |||||||||||||||||||||||||||
Total loans, net of unearned income
|
$ | 275 | $ | 846 | $ | 821 | $ | 1,942 | $ | 103,168 | $ | 105,110 | $ | - | $ | - | $ | 1,993 | ||||||||||||||||||
As of March 31, 2010:
|
||||||||||||||||||||||||||||||||||||
Construction and land development
|
$ | - | $ | - | $ | - | $ | - | $ | 12,496 | $ | 12,496 | $ | - | $ | - | $ | 1,428 | ||||||||||||||||||
Commercial real estate - owner-occupied
|
1,570 | - | - | 1,570 | 33,575 | 35,145 | - | - | 464 | |||||||||||||||||||||||||||
Commercial real estate - non-owner-occupied
|
- | 847 | - | 847 | 35,902 | 36,749 | - | - | 1,896 | |||||||||||||||||||||||||||
Residential real estate
|
- | - | - | - | 18,518 | 18,518 | - | - | - | |||||||||||||||||||||||||||
All other real estate
|
- | - | - | - | 3,268 | 3,268 | - | - | - | |||||||||||||||||||||||||||
Commercial and industrial
|
171 | - | 171 | 15,254 | 15,425 | 719 | - | 500 | ||||||||||||||||||||||||||||
Consumer and all other loans and lease financing
|
3 | - | - | 3 | 10,110 | 10,113 | 109 | - | - | |||||||||||||||||||||||||||
Total loans, net of unearned income
|
$ | 1,744 | $ | 847 | $ | - | $ | 2,591 | $ | 129,123 | $ | 131,714 | $ | 828 | $ | - | $ | 4,288 |
Impaired Loans
|
For the Three Months Ended
|
|||||||||||||||||||
(in thousands)
|
As of March 31, 2011
|
March 31, 2011
|
||||||||||||||||||
Unpaid
|
Average
|
Interest Income
|
||||||||||||||||||
Recorded
|
Principal
|
Related
|
Recorded
|
Recognized
|
||||||||||||||||
Investment
|
Balance
|
Allowance
|
Investment
|
While Impaired
|
||||||||||||||||
Impaired Loans With a Related Allowance for Loan and Lease Losses:
|
||||||||||||||||||||
Construction and land development
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Commercial real estate - owner-occupied
|
326 | 397 | 32 | 325 | - | |||||||||||||||
Commercial real estate - non-owner-occupied
|
- | - | - | - | - | |||||||||||||||
Residential real estate
|
- | - | - | - | - | |||||||||||||||
All other real estate
|
- | - | - | - | - | |||||||||||||||
Commercial and industrial
|
374 | 468 | 3 | 382 | - | |||||||||||||||
Consumer and all other loans and lease financing
|
8 | 8 | - | - | - | |||||||||||||||
Total Impaired Loans With An Allowance Recorded
|
708 | 873 | 35 | 707 | - | |||||||||||||||
Impaired Loans With No Related Allowance for Loan and Lease Losses:
|
||||||||||||||||||||
Construction and land development
|
- | - | - | 356 | - | |||||||||||||||
Commercial real estate - owner-occupied
|
384 | 404 | - | 15 | - | |||||||||||||||
Commercial real estate - non-owner-occupied
|
- | - | - | - | - | |||||||||||||||
Residential real estate
|
- | - | - | - | - | |||||||||||||||
All other real estate
|
- | - | - | - | - | |||||||||||||||
Commercial and industrial
|
278 | 303 | - | 600 | - | |||||||||||||||
Consumer and all other loans and lease financing
|
- | - | - | - | - | |||||||||||||||
Total Impaired Loans With No Allowance Recorded
|
662 | 707 | - | 971 | - | |||||||||||||||
Total Loans Individually Evaluated for Impairment:
|
||||||||||||||||||||
Construction and land development
|
- | - | - | 356 | - | |||||||||||||||
Commercial real estate - owner-occupied
|
710 | 801 | 32 | 340 | - | |||||||||||||||
Commercial real estate - non-owner-occupied
|
- | - | - | - | - | |||||||||||||||
Residential real estate
|
- | - | - | - | - | |||||||||||||||
All other real estate
|
- | - | - | - | - | |||||||||||||||
Commercial and industrial
|
652 | 771 | 3 | 982 | - | |||||||||||||||
Consumer and all other loans and lease financing
|
8 | 8 | - | 4 | - | |||||||||||||||
Total Loans Individually Evaluated For Impairment
|
$ | 1,370 | $ | 1,580 | $ | 35 | $ | 1,682 | $ | - | ||||||||||
Loans Collectively Evaluated for Impairment:
|
||||||||||||||||||||
Construction and land development
|
$ | 4,748 | $ | 4,748 | $ | 625 | ||||||||||||||
Commercial real estate - owner-occupied
|
29,717 | 29,717 | 280 | |||||||||||||||||
Commercial real estate - non-owner-occupied
|
28,956 | 28,956 | 474 | |||||||||||||||||
Residential real estate
|
14,677 | 14,677 | 432 | |||||||||||||||||
All other real estate
|
1,304 | 1,304 | 3 | |||||||||||||||||
Commercial and industrial
|
16,086 | 16,086 | 917 | |||||||||||||||||
Consumer and all other loans and lease financing
|
8,436 | 8,436 | 110 | |||||||||||||||||
Unallocated
|
- | - | 369 | |||||||||||||||||
Total Loans Collectively Evaluated For Impairment
|
$ | 103,924 | $ | 103,924 | $ | 3,210 | ||||||||||||||
Total Loans:
|
||||||||||||||||||||
Construction and land development
|
$ | 4,748 | $ | 4,748 | $ | 625 | ||||||||||||||
Commercial real estate - owner-occupied
|
30,427 | 30,518 | 312 | |||||||||||||||||
Commercial real estate - non-owner-occupied
|
28,956 | 28,956 | 474 | |||||||||||||||||
Residential real estate
|
14,677 | 14,677 | 432 | |||||||||||||||||
All other real estate
|
1,304 | 1,304 | 3 | |||||||||||||||||
Commercial and industrial
|
16,738 | 16,857 | 920 | |||||||||||||||||
Consumer and all other loans and lease financing
|
8,444 | 8,444 | 110 | |||||||||||||||||
Unallocated
|
- | - | 369 | |||||||||||||||||
Total Loans
|
$ | 105,294 | $ | 105,504 | $ | 3,245 |
Impaired Loans
|
For the Year Ended
|
|||||||||||||||||||
(in thousands)
|
As of December 31, 2010
|
December 31, 2010
|
||||||||||||||||||
Unpaid
|
Average
|
Interest Income
|
||||||||||||||||||
Recorded
|
Principal
|
Related
|
Recorded
|
Recognized
|
||||||||||||||||
Investment
|
Balance
|
Allowance
|
Investment
|
While Impaired
|
||||||||||||||||
Impaired Loans With a Related Allowance for Loan and Lease Losses:
|
||||||||||||||||||||
Construction and land development
|
$ | - | $ | - | $ | - | $ | 1,817 | $ | - | ||||||||||
Commercial real estate - owner-occupied
|
- | - | - | 2,053 | - | |||||||||||||||
Commercial real estate - non-owner-occupied
|
- | - | - | 1,393 | - | |||||||||||||||
Residential real estate
|
- | - | - | 94 | - | |||||||||||||||
All other real estate
|
- | - | - | - | - | |||||||||||||||
Commercial and industrial
|
1,010 | 1,424 | 9 | 1,193 | - | |||||||||||||||
Consumer and all other loans and lease financing
|
- | - | - | 226 | - | |||||||||||||||
Total Impaired Loans With An Allowance Recorded
|
1,010 | 1,424 | 9 | 6,776 | - | |||||||||||||||
Impaired Loans With No Related Allowance for Loan and Lease Losses:
|
||||||||||||||||||||
Construction and land development
|
356 | 375 | - | 307 | - | |||||||||||||||
Commercial real estate - owner-occupied
|
326 | 396 | - | 46 | - | |||||||||||||||
Commercial real estate - non-owner-occupied
|
- | - | - | 958 | - | |||||||||||||||
Residential real estate
|
- | - | - | - | - | |||||||||||||||
All other real estate
|
- | - | - | - | - | |||||||||||||||
Commercial and industrial
|
301 | 322 | - | 299 | 27 | |||||||||||||||
Consumer and all other loans and lease financing
|
- | - | - | - | - | |||||||||||||||
Total Impaired Loans With No Allowance Recorded
|
983 | 1,093 | - | 1,610 | 27 | |||||||||||||||
Total Loans Individually Evaluated for Impairment:
|
||||||||||||||||||||
Construction and land development
|
356 | 375 | - | 2,124 | - | |||||||||||||||
Commercial real estate - owner-occupied
|
326 | 396 | - | 2,099 | - | |||||||||||||||
Commercial real estate - non-owner-occupied
|
- | - | - | 2,351 | - | |||||||||||||||
Residential real estate
|
- | - | - | 94 | - | |||||||||||||||
All other real estate
|
- | - | - | - | - | |||||||||||||||
Commercial and industrial
|
1,311 | 1,746 | 9 | 1,492 | 27 | |||||||||||||||
Consumer and all other loans and lease financing
|
- | - | - | 226 | - | |||||||||||||||
Total Loans Individually Evaluated For Impairment
|
$ | 1,993 | $ | 2,517 | $ | 9 | $ | 8,386 | $ | 27 | ||||||||||
Loans Collectively Evaluated for Impairment:
|
||||||||||||||||||||
Construction and land development
|
$ | 4,079 | $ | 4,079 | $ | 531 | ||||||||||||||
Commercial real estate - owner-occupied
|
30,287 | 30,287 | 165 | |||||||||||||||||
Commercial real estate - non-owner-occupied
|
29,335 | 29,335 | 696 | |||||||||||||||||
Residential real estate
|
15,322 | 15,322 | 501 | |||||||||||||||||
All other real estate
|
1,315 | 1,315 | 3 | |||||||||||||||||
Commercial and industrial
|
14,601 | 14,601 | 1,012 | |||||||||||||||||
Consumer and all other loans and lease financing
|
8,178 | 8,178 | 124 | |||||||||||||||||
Unallocated
|
- | - | 157 | |||||||||||||||||
Total Loans Collectively Evaluated For Impairment
|
$ | 103,117 | $ | 103,117 | $ | 3,189 | ||||||||||||||
Total Loans:
|
||||||||||||||||||||
Construction and land development
|
$ | 4,435 | $ | 4,454 | $ | 531 | ||||||||||||||
Commercial real estate - owner-occupied
|
30,613 | 30,683 | 165 | |||||||||||||||||
Commercial real estate - non-owner-occupied
|
29,335 | 29,335 | 696 | |||||||||||||||||
Residential real estate
|
15,322 | 15,322 | 501 | |||||||||||||||||
All other real estate
|
1,315 | 1,315 | 3 | |||||||||||||||||
Commercial and industrial
|
15,912 | 16,347 | 1,021 | |||||||||||||||||
Consumer and all other loans and lease financing
|
8,178 | 8,178 | 124 | |||||||||||||||||
Unallocated
|
- | - | 157 | |||||||||||||||||
Total Loans
|
$ | 105,110 | $ | 105,634 | $ | 3,198 |
Three Months Ended
|
||||||||
March 31, 2011
|
March 31, 2010
|
|||||||
Net income (loss)
|
$ | (467,291 | ) | $ | (385,840 | ) | ||
Less net income (loss) allocated to preferred stock:
|
||||||||
Convertible preferred (Series A & C)
|
(7,363 | ) | (30,679 | ) | ||||
Non-convertible preferred (Series B)
|
(1,509 | ) | (6,289 | ) | ||||
TARP preferred (Series D)
|
63,950 | 63,950 | ||||||
Net income (loss) allocated to all classes of preferred stock
|
55,078 | 26,982 | ||||||
Income (loss) allocated to common stock
|
$ | (522,369 | ) | $ | (412,822 | ) | ||
Average common shares outstanding
|
7,094,274 | 1,345,602 | ||||||
Basic earnings (loss) per common share
|
$ | (0.07 | ) | $ | (0.31 | ) |
|
·
|
Level 1—Quoted prices in active markets for identical assets or liabilities
|
|
·
|
Level 2—Estimates based on significant other observable inputs that market participants would use in pricing the asset or liability
|
|
·
|
Level 3—Estimates based on significant unobservable inputs that reflect the entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Valuation techniques include management’s judgment, which may be a significant factor.
|
|
For some assets or liabilities, the inputs used to measure fair value may fall into more than one level of the fair value hierarchy. In such cases, the asset or liability is identified based on the lowest level input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and considers factors specific to the asset or liability.
|
(in thousands)
|
Fair Value Measurements Using
|
|||||||||||||||
March 31, 2011
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Available for sale securities:
|
||||||||||||||||
U.S. Government agencies
|
$ | - | $ | 27,650 | $ | - | $ | 27,650 | ||||||||
Mortgage-backed securities
|
- | 47,639 | - | 47,639 | ||||||||||||
Municipal securities
|
- | 2,963 | - | 2,963 | ||||||||||||
Corporate debt securities
|
- | 1,000 | - | 1,000 | ||||||||||||
Asset-backed securities
|
- | 147 | - | 147 | ||||||||||||
Total available-for-sale securities
|
- | 79,399 | - | 79,399 | ||||||||||||
Loans held for sale
|
- | - | 12,457 | 12,457 | ||||||||||||
Total assets measured at fair value on a recurring basis
|
$ | - | $ | 79,399 | $ | 12,457 | $ | 91,856 | ||||||||
December 31, 2010
|
||||||||||||||||
Available for sale securities:
|
||||||||||||||||
U.S. Government agencies
|
$ | - | $ | 20,860 | $ | - | $ | 20,860 | ||||||||
Mortgage-backed securities
|
- | 49,480 | - | 49,480 | ||||||||||||
Municipal securities
|
- | 2,922 | - | 2,922 | ||||||||||||
Corporate debt securities
|
- | 2,001 | - | 2,001 | ||||||||||||
Asset-backed securities
|
- | 172 | - | 172 | ||||||||||||
Total available-for-sale securities
|
- | 75,435 | - | 75,435 | ||||||||||||
Loans held for sale
|
- | - | 15,115 | 15,115 | ||||||||||||
Total assets measured at fair value on a recurring basis
|
$ | - | $ | 75,435 | $ | 15,115 | $ | 90,550 |
(in thousands)
|
Current
|
|||||||||||||||||||
Period
|
||||||||||||||||||||
Fair Value Measurements Using
|
Gains
|
|||||||||||||||||||
March 31, 2011
|
Level 1
|
Level 2
|
Level 3
|
Total
|
(Losses)
|
|||||||||||||||
Financial assets measured at fair value on a non-recurring basis:
|
||||||||||||||||||||
Impaired loans, net of specific reserves--
|
||||||||||||||||||||
Commercial and industrial
|
$ | - | $ | - | $ | 652 | $ | 652 | $ | 6 | ||||||||||
Commercial real estate - owner-occupied
|
- | - | 710 | 710 | (32 | ) | ||||||||||||||
Construction and land development
|
- | - | - | - | - | |||||||||||||||
Consumer and all other loans and lease financing
|
- | - | 8 | 8 | - | |||||||||||||||
Total impaired loans, net of specific reserves
|
$ | - | $ | - | $ | 1,370 | $ | 1,370 | $ | (26 | ) | |||||||||
Non-financial assets measured at fair value on a non-recurring basis:
|
||||||||||||||||||||
Other real estate owned
|
$ | - | $ | - | $ | 4,053 | $ | 4,053 | $ | (47 | ) | |||||||||
Full Year
|
||||||||||||||||||||
Fair Value Measurements Using
|
Gains
|
|||||||||||||||||||
December 31, 2010
|
Level 1
|
Level 2
|
Level 3
|
Total
|
(Losses)
|
|||||||||||||||
Financial assets measured at fair value on a non-recurring basis:
|
||||||||||||||||||||
Impaired loans, net of specific reserves--
|
||||||||||||||||||||
Commercial and industrial
|
$ | - | $ | - | $ | 1,010 | $ | 1,010 | $ | (648 | ) | |||||||||
Commercial real estate - owner-occupied
|
- | - | 326 | 326 | (97 | ) | ||||||||||||||
Construction and land development
|
- | - | 356 | 356 | (10 | ) | ||||||||||||||
Total impaired loans, net of specific reserves
|
$ | - | $ | - | $ | 1,692 | $ | 1,692 | $ | (755 | ) | |||||||||
Non-financial assets measured at fair value on a non-recurring basis:
|
||||||||||||||||||||
Other real estate owned
|
$ | - | $ | - | $ | 3,137 | $ | 3,137 | $ | (486 | ) |
(in thousands)
|
Level 3 Available-for-Sale Securities and Loans Held for Sale
|
|||||||
Three Months Ended March 31
|
||||||||
2011
|
2010
|
|||||||
Balance at beginning of year
|
$ | 15,115 | $ | 913 | ||||
Securities transfered into Level 3
|
- | - | ||||||
Net increase (decrease) in SBA loans held for sale
|
223 | (132 | ) | |||||
Loans held for sale transfered into Level 3
|
- | - | ||||||
Unrealized gains (losses)
|
||||||||
included in other comprehensive income (loss)
|
- | - | ||||||
Purchases
|
- | - | ||||||
Settlements - principal reductions in loans held for sale
|
(1,810 | ) | - | |||||
Loans held for sale transferred to other real estate owned
|
(1,070 | ) | ||||||
Securities valuation reserve
|
- | (6 | ) | |||||
Loans held for sale valuation reserve
|
(1 | ) | - | |||||
Balance at end of period
|
$ | 12,457 | $ | 775 |
March 31, 2011
|
December 31, 2010
|
|||||||||||||||
Carrying Value
|
Fair Value
|
Carrying Value
|
Fair Value
|
|||||||||||||
Financial Assets:
|
||||||||||||||||
Cash and due from banks
|
$ | 8,370 | $ | 8,370 | $ | 10,817 | $ | 10,817 | ||||||||
Interest-bearing deposits in other banks
|
302 | 302 | 550 | 550 | ||||||||||||
Investment securities
|
79,399 | 79,399 | 75,435 | 75,435 | ||||||||||||
Loans held for sale
|
12,457 | 12,457 | 15,115 | 15,115 | ||||||||||||
Loans, net of allowance for loan and lease losses
|
102,049 | 104,033 | 101,912 | 102,926 | ||||||||||||
Federal Home Loan Bank and other stocks
|
2,606 | 2,606 | 2,682 | 2,682 | ||||||||||||
Company owned life insurance
|
3,002 | 3,002 | 2,980 | 2,980 | ||||||||||||
Accrued interest receivable
|
714 | 714 | 697 | 697 | ||||||||||||
Financial Liabilities:
|
||||||||||||||||
Deposits
|
174,658 | 174,933 | 173,240 | 173,590 | ||||||||||||
Other borrowings
|
- | - | 349 | 349 | ||||||||||||
Junior subordinated debt securities
|
3,093 | 1,331 | 3,093 | 1,333 | ||||||||||||
Accrued interest payable
|
190 | 190 | 180 | 180 |
|
·
|
The Company incurred a net loss of $(467) thousand for the first quarter of 2011, as compared with a net loss of $(386) thousand for the first quarter of 2010. The factors resulting in these losses will be discussed below.
|
|
·
|
No provision for loan losses was recorded in the first quarter of 2011, a decrease of $200 thousand from the first quarter of 2010.
|
|
·
|
Net interest income for the three-month period ended March 31, 2011, was $1.826 million, an increase of $8 thousand from the same period in 2010, primarily due to continued decreases in deposit rates as well as a $5.6 million decrease in the average balance of borrowed funds.
|
|
·
|
The net interest margin (net interest income as a percentage of average interest earning assets) decreased by 43 basis points, to 3.52%, for the three-month period ended March 31, 2011, as compared to the same period in 2010.
|
|
·
|
For the three months ended March 31, 2011, non-interest income increased by $165 thousand from the same period in 2010. The improvement was in increased gains on sales of SBA-guaranteed loans and disposition of other loans held for sale, as well as reduced losses on other real estate.
|
|
·
|
Non-interest expense increased by $454 thousand for the first quarter of 2011, as compared to the same quarter in 2010. Principal factors relating to the increase were
|
|
salaries and benefits for newly hired officers and increased operating expenses of foreclosed real estate.
|
|
·
|
Total assets were essentially flat from December 31, 2010 to March 31, 2011.
|
|
·
|
Non-performing assets decreased from $15.1 million as of December 31, 2010 to $12.0 million on March 31, 2011.
|
(Dollars in thousands)
|
||||||||||||||||||||||||
For the Three Months Ended
|
||||||||||||||||||||||||
March 31, 2011
|
March 31, 2010
|
|||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans, net of unearned income*
|
$ | 119,612 | $ | 1,789 | 6.06 | % * | $ | 136,010 | $ | 2,058 | 6.14 | % * | ||||||||||||
Investment securities*
|
75,267 | 419 | 2.26 | % * | 39,674 | 309 | 3.15 | % * | ||||||||||||||||
Federal funds sold
|
- | - | - | - | - | - | ||||||||||||||||||
Other interest income
|
15,339 | 10 | 0.26 | % | 11,108 | 7 | 0.25 | % | ||||||||||||||||
Total interest-earning assets / interest income
|
210,218 | 2,218 | 4.28 | % | 186,792 | 2,374 | 5.15 | % | ||||||||||||||||
Non-interest-earning assets:
|
||||||||||||||||||||||||
Allowance for loan losses
|
(3,227 | ) | (5,551 | ) | ||||||||||||||||||||
Cash and due from banks
|
1,426 | 2,701 | ||||||||||||||||||||||
Premises and equipment
|
3,208 | 3,382 | ||||||||||||||||||||||
Other assets
|
7,599 | 6,379 | ||||||||||||||||||||||
Total assets
|
$ | 219,224 | $ | 193,703 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Interest-bearing deposits:
|
||||||||||||||||||||||||
Interest-bearing demand accounts
|
$ | 11,211 | $ | 20 | 0.73 | % | $ | 20,756 | $ | 41 | 0.79 | % | ||||||||||||
Savings and Money Market deposit accounts
|
51,976 | 95 | 0.74 | % | 35,063 | 78 | 0.90 | % | ||||||||||||||||
Certificates of deposit
|
86,389 | 247 | 1.16 | % | 85,719 | 338 | 1.60 | % | ||||||||||||||||
Total interest-bearing deposits
|
149,576 | 362 | 0.98 | % | 141,538 | 457 | 1.31 | % | ||||||||||||||||
Other short-tems borrowings
|
385 | 5 | 4.75 | % | - | - | - | |||||||||||||||||
Federal Home Loan Bank advances
|
- | - | - | 6,000 | 74 | 5.01 | % | |||||||||||||||||
Trust preferred securities
|
3,093 | 25 | 3.30 | % | 3,093 | 25 | 3.25 | % | ||||||||||||||||
Total borrowed funds
|
3,478 | 30 | 3.46 | % | 9,093 | 99 | 4.41 | % | ||||||||||||||||
Total interest-bearing liabilities / interest expense
|
153,054 | 392 | 1.04 | % | 150,631 | 556 | 1.50 | % | ||||||||||||||||
Non-interest-bearing liabilities:
|
||||||||||||||||||||||||
Non-interest-bearing deposits
|
26,604 | 22,696 | ||||||||||||||||||||||
Other liabilities
|
1,355 | 1,596 | ||||||||||||||||||||||
Total liabilities
|
181,013 | 174,923 | ||||||||||||||||||||||
Shareholders' equity
|
38,211 | 18,780 | ||||||||||||||||||||||
Total liabilities and shareholders' equity
|
$ | 219,224 | $ | 193,703 | ||||||||||||||||||||
Net interest-rate spread
|
3.24 | % | 3.65 | % | ||||||||||||||||||||
Impact of non-interest-bearing
|
||||||||||||||||||||||||
sources and other changes in
|
||||||||||||||||||||||||
balance sheet composition
|
0.28 | % | 0.30 | % | ||||||||||||||||||||
Net interest income / margin on earning assets
|
$ | 1,826 | 3.52 | % ** | $ | 1,818 | 3.95 | % ** | ||||||||||||||||
*No taxable-equivalent adjustment has been made on municipal securities and loans
|
||||||||||||||||||||||||
because no tax benefits are currently being recognized by the Company.
|
||||||||||||||||||||||||
** Net interest income as a % of earning assets
|
Rate / Volume Variance Analysis
|
||||||||||||
(In thousands)
|
Three Months Ended March 31, 2011
|
|||||||||||
Compared to 2010
|
||||||||||||
Increase (Decrease)
|
||||||||||||
in interest income and expense
|
||||||||||||
due to changes in:
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
Interest-earning assets:
|
||||||||||||
Loans, net of unearned income
|
$ | (245 | ) | $ | (24 | ) | $ | (269 | ) | |||
Investment securities
|
217 | (107 | ) | 110 | ||||||||
Federal funds sold
|
- | - | - | |||||||||
Other interest income
|
3 | - | 3 | |||||||||
Total increase (decrease) in interest income
|
(25 | ) | (131 | ) | (156 | ) | ||||||
Interest-bearing liabilities:
|
||||||||||||
Transaction accounts
|
(18 | ) | (3 | ) | (21 | ) | ||||||
Savings deposits
|
33 | (16 | ) | 17 | ||||||||
Certificates of deposit
|
3 | (94 | ) | (91 | ) | |||||||
Total interest-bearing deposits
|
18 | (113 | ) | (95 | ) | |||||||
Other short-term borrowings
|
5 | - | 5 | |||||||||
FHLB advances
|
(74 | ) | - | (74 | ) | |||||||
Trust preferred securities
|
- | - | - | |||||||||
Total borrowed funds
|
(69 | ) | - | (69 | ) | |||||||
Total increase (decrease) in interest expense
|
(51 | ) | (113 | ) | (164 | ) | ||||||
Increase (decrease) in net interest income
|
$ | 26 | $ | (18 | ) | $ | 8 |
Non-Interest Income
|
||||||||||||||||
(In thousands)
|
For the Three Months Ended March 31,
|
|||||||||||||||
$ Amount
|
Change
|
|||||||||||||||
2011
|
2010
|
$ | % | |||||||||||||
Service charges on deposit accounts
|
$ | 77 | $ | 82 | $ | (5 | ) | -6 | % | |||||||
Gain on sale of loans
|
106 | - | 106 |
nm
|
||||||||||||
Loan servicing fees, net of amortization
|
24 | 34 | (10 | ) | -29 | % | ||||||||||
Gain on sale of available-for-sale securities
|
- | 58 | (58 | ) | -100 | % | ||||||||||
Other real estate income
|
20 | - | 20 |
nm
|
||||||||||||
Loss or writedown of fixed assets or other real estate
|
(47 | ) | (106 | ) | 59 |
nm
|
||||||||||
Gain on disposition of loans held for sale
|
50 | - | 50 |
nm
|
||||||||||||
Other income and fees
|
42 | 39 | 3 | 8 | % | |||||||||||
Total non-interest income
|
$ | 272 | $ | 107 | $ | 165 | 154 | % | ||||||||
nm - not meaningful
|
Non-Interest Expense
|
||||||||||||||||
(In thousands)
|
For the Three Months Ended March 31,
|
|||||||||||||||
$ Amount
|
Change
|
|||||||||||||||
2011
|
2010
|
$ | % | |||||||||||||
Salaries and employee benefits
|
$ | 1,315 | $ | 923 | $ | 392 | 42 | % | ||||||||
Occupancy expenses
|
321 | 300 | 21 | 7 | % | |||||||||||
Furniture and equipment
|
114 | 124 | (10 | ) | -8 | % | ||||||||||
Data processing
|
201 | 188 | 13 | 7 | % | |||||||||||
Professional fees
|
130 | 134 | (4 | ) | -3 | % | ||||||||||
Marketing and business development
|
37 | 29 | 8 | 28 | % | |||||||||||
Office supplies and expenses
|
59 | 57 | 2 | 4 | % | |||||||||||
Insurance and regulatory assessments
|
145 | 204 | (59 | ) | -29 | % | ||||||||||
Loan and lease expenses
|
37 | 28 | 9 | 32 | % | |||||||||||
Other real estate expenses
|
56 | 10 | 46 | 460 | % | |||||||||||
Other
|
150 | 114 | 36 | 32 | % | |||||||||||
Total non-interest expense
|
$ | 2,565 | $ | 2,111 | $ | 454 | 22 | % |
|
·
|
An increase in salaries and benefits due to additional officers hired in the second half of 2010, including the Company’s new chief executive officer, in preparation for planned future growth,
|
|
·
|
Expenses of operating a higher volume of other real estate, and
|
|
·
|
Stock option compensation for recently-hired officers (an increase of $25 thousand).
|
Balance Sheet Growth
|
||||||||||||||||||||||||||||||||||||||||
(dollars in thousands)
|
Increase(Decrease) From Previous Quarter End*
|
|||||||||||||||||||||||||||||||||||||||
March 31, 2011
|
December 31, 2010
|
September 30, 2010
|
June 30, 2010
|
March 31, 2010
|
||||||||||||||||||||||||||||||||||||
$ | % | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||
Total Assets
|
$ | (182 | ) | -0.3 | % | $ | 5,596 | 10.5 | % | $ | 3,423 | 6.5 | % | $ | 13,821 | 28.4 | % | $ | 1,855 | 3.9 | % | |||||||||||||||||||
Earning Assets
|
(1,384 | ) | -2.7 | % | 5,348 | 10.6 | % | 2,889 | 5.8 | % | 12,337 | 26.7 | % | 1,894 | 4.2 | % | ||||||||||||||||||||||||
Loans
|
(2,474 | ) | -8.3 | % | (2,638 | ) | -8.5 | % | (3,033 | ) | -9.6 | % | (6,589 | ) | -19.9 | % | (3,925 | ) | -11.7 | % | ||||||||||||||||||||
Deposits
|
1,418 | 3.3 | % | 7,619 | 18.3 | % | 4,495 | 11.1 | % | (4,225 | ) | -10.2 | % | 1,581 | 3.9 | % | ||||||||||||||||||||||||
Borrowings
|
(349 | ) | -405.6 | % | (4,121 | ) | -365.8 | % | 328 | 31.4 | % | (1,858 | ) | -124.2 | % | - | 0.0 | % | ||||||||||||||||||||||
Shareholders' Equity
|
(720 | ) | -7.5 | % | 1,891 | 20.1 | % | (562 | ) | -5.9 | % | 19,531 | 428.5 | % | (355 | ) | -7.7 | % | ||||||||||||||||||||||
*Percentages shown as annualized rates
|
Loan Composition
|
||||||||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
March 31, 2011
|
December 31, 2010
|
March 31, 2010
|
||||||||||||||||||||||
Type of Loan
|
Amount
|
Percentage
|
Amount
|
Percentage
|
Amount
|
Percentage
|
||||||||||||||||||
Commercial
|
$ | 16,872 | 14.3 | % | $ | 17,701 | 14.7 | % | $ | 19,051 | 14.4 | % | ||||||||||||
Agricultural
|
2,484 | 2.1 | % | 1,022 | 0.9 | % | 671 | 0.5 | % | |||||||||||||||
Leases, net of unearned income
|
933 | 0.8 | % | 1,047 | 0.9 | % | 1,208 | 0.9 | % | |||||||||||||||
Municipal loans
|
3,603 | 3.1 | % | 2,987 | 2.5 | % | 3,822 | 2.9 | % | |||||||||||||||
Real estate
|
84,139 | 71.4 | % | 87,005 | 72.4 | % | 93,658 | 70.7 | % | |||||||||||||||
Construction and land development
|
8,188 | 7.0 | % | 8,972 | 7.4 | % | 12,496 | 9.4 | % | |||||||||||||||
Consumer
|
1,532 | 1.3 | % | 1,491 | 1.2 | % | 1,579 | 1.2 | % | |||||||||||||||
Total loans
|
$ | 117,751 | 100.0 | % | $ | 120,225 | 100.0 | % | $ | 132,485 | 100.0 | % |
Non-Performing Assets
|
||||||||||||
(in thousands)
|
March 31
|
December 31
|
March 31
|
|||||||||
2011
|
2010
|
2010
|
||||||||||
Loans in nonaccrual status:
|
||||||||||||
Nonaccrual loans held for investment
|
$ | 1,362 | $ | 1,993 | $ | 4,288 | ||||||
Nonaccrual loans held for sale*
|
7,151 | 10,011 | - | |||||||||
Loans past due 90 days or more and accruing
|
- | - | - | |||||||||
Restructured loans in accruing status
|
8 | - | 740 | |||||||||
Total nonperforming loans
|
8,521 | 12,004 | 5,028 | |||||||||
Foreclosed real estate
|
3,487 | 2,572 | 935 | |||||||||
Total nonperforming assets
|
$ | 12,008 | $ | 14,576 | $ | 5,963 | ||||||
Real estate held for possible future branch office
|
565 | 565 | 565 | |||||||||
Total nonperforming loans and other real estate owned
|
$ | 12,573 | $ | 15,141 | $ | 6,528 | ||||||
Allowance for loan and lease losses allocated to impaired loans
|
$ | 35 | $ | 9 | $ | 57 | ||||||
Allowance for loan and lease losses allocated to loans held for sale*
|
- | - | - | |||||||||
Allowance for loan and lease losses allocated to all other loans
|
3,210 | 3,189 | 5,023 | |||||||||
Total allowance for loan and lease losses
|
$ | 3,245 | $ | 3,198 | $ | 5,080 | ||||||
Asset quality ratios:
|
||||||||||||
Non-performing assets to total assets
|
5.52 | % | 6.69 | % | 3.06 | % | ||||||
Excluding loans held for sale*
|
2.37 | % | 2.25 | % | 3.07 | % | ||||||
Non-performing loans to total loans
|
7.24 | % | 9.98 | % | 3.80 | % | ||||||
Excluding loans held for sale*
|
1.30 | % | 1.90 | % | 3.82 | % | ||||||
Allowance for loan and lease losses to total loans
|
2.76 | % | 2.66 | % | 3.83 | % | ||||||
Excluding loans held for sale*
|
3.08 | % | 3.04 | % | 3.86 | % | ||||||
Allowance for loan and lease losses to total non-performing loans
|
38 | % | 27 | % | 101 | % | ||||||
Excluding non-performing loans held for sale*
|
237 | % | 160 | % | 101 | % | ||||||
* Loans held for sale are carried at fair value
|
Other Real Estate Owned
|
||||
(dollars in thousands)
|
Three Months Ended
|
|||
March 31, 2011
|
||||
Balance of foreclosed real estate at beginning of year
|
$ | 2,572 | ||
Real estate held for possible future branch office
|
565 | |||
Total other real estate owned at beginning of year
|
$ | 3,137 | ||
Foreclosures during the period
|
1,070 | |||
Additional investments in other real estate
|
32 | |||
Sales of other real estate
|
(139 | ) | ||
Writedowns and losses on sales of other real estate
|
(47 | ) | ||
Balance of other real estate owned at end of period
|
$ | 4,053 |
Allowance for Loan and Lease Losses
|
||||||||
(dollars in thousands)
|
Three Months Ended
|
|||||||
March 31,
|
||||||||
2011
|
2010
|
|||||||
Balance at beginning of period
|
$ | 3,198 | $ | 5,537 | ||||
Provision for loan losses
|
- | 200 | ||||||
Loans charged off
|
(8 | ) | (689 | ) | ||||
Recoveries of previous charge-offs
|
55 | 32 | ||||||
Net recoveries (charge-offs)
|
47 | (657 | ) | |||||
Balance at end of period
|
$ | 3,245 | $ | 5,080 | ||||
Allowance for loan losses as a percentage of:
|
||||||||
Period end loans
|
2.76 | % | 3.83 | % | ||||
Period end loans excluding loans held for sale*
|
3.08 | % | 3.86 | % | ||||
Total non-performing loans
|
38 | % | 101 | % | ||||
Non-performing loans excluding loans held for sale*
|
237 | % | 101 | % | ||||
As a percentage of average loans (annualized):
|
||||||||
Net charge-offs (recoveries)
|
-0.16 | % | 1.96 | % | ||||
Provision for loan losses
|
0.00 | % | 0.60 | % | ||||
* Loans held for sale are carried at fair value
|
Mission Community Bank
|
||||||||||||||||||||||||
Capital Ratios
|
Amount of Capital Required
|
|||||||||||||||||||||||
(dollars in thousands)
|
To Be
|
To Be Adequately
|
||||||||||||||||||||||
Actual
|
Well-Capitalized
|
Capitalized
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
As of March 31, 2011:
|
||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets)
|
$ | 21,461 | 16.99 | % | $ | 12,633 | 10.0 | % | $ | 10,106 | 8.0 | % | ||||||||||||
Tier 1 Capital (to Risk-Weighted Assets)
|
$ | 19,858 | 15.72 | % | $ | 7,580 | 6.0 | % | $ | 5,053 | 4.0 | % | ||||||||||||
Tier 1 Capital (to Average Assets)
|
$ | 19,858 | 9.85 | % | $ | 10,085 | 5.0 | % | $ | 8,068 | 4.0 | % | ||||||||||||
As of December 31, 2010:
|
||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets)
|
$ | 21,649 | 17.20 | % | $ | 12,587 | 10.0 | % | $ | 10,069 | 8.0 | % | ||||||||||||
Tier 1 Capital (to Risk-Weighted Assets)
|
$ | 20,054 | 15.93 | % | $ | 7,552 | 6.0 | % | $ | 5,035 | 4.0 | % | ||||||||||||
Tier 1 Capital (to Average Assets)
|
$ | 20,054 | 10.18 | % | $ | 9,852 | 5.0 | % | $ | 7,881 | 4.0 | % | ||||||||||||
As of March 31, 2010:
|
||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets)
|
$ | 21,701 | 14.45 | % | $ | 15,023 | 10.0 | % | $ | 12,018 | 8.0 | % | ||||||||||||
Tier 1 Capital (to Risk-Weighted Assets)
|
$ | 19,782 | 13.17 | % | $ | 9,014 | 6.0 | % | $ | 6,009 | 4.0 | % | ||||||||||||
Tier 1 Capital (to Average Assets)
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$ | 19,782 | 10.24 | % | $ | 9,663 | 5.0 | % | $ | 7,730 | 4.0 | % |
Loan Commitments
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||||||||||||
(in thousands)
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March 31
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December 31
|
March 31
|
|||||||||
2011
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2010
|
2010
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||||||||||
Commitments to Extend Credit
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$ | 18,761 | $ | 19,832 | $ | 18,610 | ||||||
Standby Letters of Credit
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861 | 901 | 301 | |||||||||
$ | 19,622 | $ | 20,733 | $ | 18,911 |
Item 1.
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Legal Proceedings
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Item 1A.
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Risk Factors
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Item 2.
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Unregistered Sales of Equity Securities and Use of Proceeds
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Item 3.
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Defaults Upon Senior Securities
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Item 4.
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(Reserved)
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Item 5.
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Other Information
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Exhibit #
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2.1
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Plan of Reorganization and Agreement of Merger dated as of October 4, 2000 (A)
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3.1
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Restated Articles of Incorporation (I)
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3.2
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Certificate of Amendment to Articles of Incorporation (L)
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3.3
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Certificate of Amendment to Articles of Incorporation (Y)
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3.4
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Bylaws, as amended (B),(S)
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4.1
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Certificate of Determination for Series A Non-Voting Preferred Stock (B)
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4.2
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Certificate of Determination for Series B Non-Voting Preferred Stock (B)
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4.3
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Certificate of Determination for Series C Non-Voting Preferred Stock (D)
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4.4
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Purchase Agreement dated October 10, 2003, by and among Registrant, Mission Community Capital Trust I, and Bear Stearns & Co., Inc. (E)
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4.5
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Indenture dated as of October 14, 2003 by and between Registrant and Wells Fargo Bank, National Association, as trustee (E)
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4.6
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Declaration of Trust of Mission Community Capital Trust I dated October 10, 2003 (E)
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4.7
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Amended and Restated Declaration of Trust of Mission Community Capital Trust I dated October 14, 2003 by and among the Registrant, Wells Fargo Delaware Trust Company, as Trustee, and Anita M. Robinson and William C. Demmin, as Administrators (E)
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4.8
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Guarantee Agreement dated October 14, 2003 between Registrant, as Guarantor, and Wells Fargo Bank, National Association, as Guarantee Trustee (E)
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4.9
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Fee Agreement dated October 14, 2003 by and among the Registrant, Wells Fargo Delaware Trust Co., Bear Stearns & Co., Inc. and Mission Community Capital Trust I (E)
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4.10
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Certificate of Determination for Series D Preferred Stock (R)
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4.11
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Form of Common Stock Purchase Warrant (Z)
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4.12
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Form of Warrant Agreement for warrants issued pursuant to subscription rights (AA)
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10.1
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Purchase and Sale Agreement and Lease dated January, 1997, as amended (B)
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10.2
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Intentionally omitted
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10.3
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Lease Agreement – Paso Robles (B)
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10.4
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Lease Agreement – San Luis Obispo (B)
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10.5
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Lease Agreement – Arroyo Grande (B)
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10.6
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1998 Stock Option Plan, as amended (B)
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10.7
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Lease Agreement – 569 Higuera, San Luis Obispo (D)
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10.8
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Lease Agreement – 671 Tefft Street, Nipomo CA (C)
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10.9
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Intentionally omitted
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10.10
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Lease Agreement – 3480 S. Higuera, San Luis Obispo (F)
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10.11
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Salary Protection Agreement — Mr. Pigeon (G)
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10.12
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Intentionally omitted
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10.13
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Second Amended and Restated Employment Agreement dated August 28, 2006 between Anita M. Robinson and Mission Community Bank (J)
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Exhibit #
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||
10.14
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Employment Agreement dated June 3, 2007 between Brooks Wise and Mission Community Bank (J)
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10.15
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Financial Advisory Services Agreement dated January 4, 2007 between the Company and Seapower Carpenter Capital, Inc. (K)
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10.16
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Common Stock Repurchase Agreement dated August 10, 2007 between Fannie Mae and the Company (M)
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10.17
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Build-to-Suit Lease Agreement between Walter Bros. Construction Co., Inc. and Mission Community Bank for property at South Higuera Street and Prado Road in San Luis Obispo, California (N)
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10.18
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Lease Agreement – 1670 South Broadway, Santa Maria (O)
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10.19
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Mission Community Bancorp 2008 Stock Incentive Plan (P)
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10.20
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Amendment No. 1 to Second Amended and Restated Employment Agreement dated December 29, 2008 by and among Mission Community Bancorp, Mission Community Bank, and Anita M. Robinson (Q)
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10.21
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Amendment No. 1 to Employment Agreement dated December 29, 2008 by and among Mission Community Bancorp, Mission Community Bank, and Brooks W. Wise (Q)
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10.22
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Amended and Restated Salary Protection Agreement dated December 29, 2008 by and between Mission Community Bank and Ronald B. Pigeon (Q)
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10.23
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Letter Agreement dated January 9, 2009 between Mission Community Bancorp and the United States Department of Treasury, which includes the Securities Purchase Agreement—Standard Terms attached thereto, with respect to the issuance and sale of the Series D Preferred Stock (R)
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10.24
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Side Letter Agreement dated January 9, 2009 amending the Stock Purchase Agreement between Mission Community Bancorp and the Department of the Treasury (R)
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10.25
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Side Letter Agreement dated January 9, 2009 between Mission Community Bancorp and The Department of the Treasury regarding maintenance of two open seats on the Board of Directors (R)
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10.26
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Side Letter Agreement dated January 9, 2009 between Mission Community Bancorp and The Department of the Treasury regarding CDFI status (R)
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10.27
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Securities Purchase Agreement dated December 22, 2009 between the Company and Carpenter Fund Manager GP, LLC (“Securities Purchase Agreement”) (U)
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10.28
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Form of Warrant to be issued in connection with the Securities Purchase Agreement (U)
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10.29
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Amendment No. 1 to Securities Purchase Agreement dated March 17, 2010 (V)
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10.30
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Amendment No. 2 to Employment Agreement of Brooks Wise dated March 22, 2010 (W)
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10.31
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Amendment No. 2 to Securities Purchase Agreement dated March 17, 2010 (X)
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10.32
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Employment Agreement dated July 1, 2010 between James W. Lokey and Mission Community Bancorp (Y)
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(A) Included in the Company’s Form 8-K filed on December 18, 2000
(B) Included in the Company’s Form 10-KSB filed on April 2, 2001
(C) Included in the Company’s Form 10-QSB filed August 12, 2002
(D) Included in the Company’s Form 10-QSB filed on November 12, 2002
(E) Included in the Company’s Form 8-K filed on October 21, 2003
(F) Included in the Company’s Form 10-QSB filed on August 10, 2004
(G) Included in the Company’s Form 8-K filed on January 19, 2005
(H) Intentionally omitted
(I) Included in the Company’s Form 10-QSB filed on August 14, 2006
(J) Included in the Company’s Form 8-K filed on June 13, 2007
(K) Included in the Form SB-2 Registration Statement of the Company filed on June 13, 2007
(L) Included in Pre-Effective Amendment No. 1 to the Form SB-2 Registration Statement of the Company filed on July 24, 2007
(M) Included in the Company’s Form 8-K filed on August 14, 2007
(N) Included in the Company’s Form 8-K filed on October 23, 2007
(O) Included in the Company’s Form 10-KSB filed on March 28, 2008
(P) Included in the Company’s Form 10-Q filed on May 15, 2008
(Q)Included in the Company’s Form 8-K filed on December 30, 2008
(R)Included in the Company’s Form 8-K filed on January 14, 2009
(S)Included in the Company’s Form 10-Q filed on August 14, 2009
(T)Included in the Company’s Form 10-K filed on March 16, 2009
(U)Included in the Company’s From 8-K filed on December 24, 2009
(V)Included in the Company’s Form 8-K filed on March 22, 2010
(W)Included in the Company’s Form 8-K filed on March 26, 2010
(X)Included in the Company’s Form 8-K filed on June 1, 2010
(Y)Included in the Company’s Form 8-K filed on August 2, 2010
(Z)Included in the Company’s Form S-1 Registration Statement filed on August 31, 2010
(AA)Included in Amendment No. 1 to the Company’s Form S-1 Registration Statement filed on October 1, 2010
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(1) I have reviewed this Form 10-Q of Mission Community Bancorp;
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(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;
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(4) The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:
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(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c) Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d) Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the issuer’s most recent fiscal quarter (the issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and
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(5) The issuer’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):
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(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
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(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.
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(1) I have reviewed this Form 10-Q of Mission Community Bancorp;
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(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report;
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(4) The issuer’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:
|
|
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c) Evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d) Disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the issuer’s most recent fiscal quarter (the issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting; and
|
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(5) The issuer’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the issuer’s auditors and the audit committee of the issuer’s board of directors (or persons performing the equivalent functions):
|
|
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
|
|
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.
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1. This Form 10-Q for the period ended March 31, 2011 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2. The information contained in this Form 10-Q for the period ended March 31, 2011 fairly presents, in all material respects, the financial condition and results of operations of the Company.
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1.
|
This Form 10-Q for the period ended March 31, 2011 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
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2.
|
The information contained in this Form 10-Q for the period ended March 31, 2011 fairly presents, in all material respects, the financial condition and results of operations of the Company.
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and Chief Financial Officer
|