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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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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PART I – FINANCIAL INFORMATION
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Item 1. Financial Statements (Unaudited)
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Condensed Consolidated Balance Sheets at
|
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March 31, 2012 and December 31, 2011
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Condensed Consolidated Statements of Operations
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for the Three-Month Periods Ended March 31, 2012 and 2011
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Consolidated Statements of Comprehensive Loss
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for the Three-Month Periods Ended March 31, 2012 and 2011
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Condensed Consolidated Statements of Changes of Shareholders’ Equity
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for the Three-Month Period Ended March 31, 2012
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Condensed Consolidated Statements of Cash Flows
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for the Three-Month Periods Ended March 31, 2012 and 2011
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Notes to Consolidated Financial Statements
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
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Item 4. Controls and Procedures
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PART II – OTHER INFORMATION
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Item 1. Legal Proceedings
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Item 1A. Risk Factors
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
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Item 3. Defaults Upon Senior Securities
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Item 4. Mine Safety Disclosures
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Item 5. Other Information
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Item 6. Exhibits
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Mission Community Bancorp and Subsidiaries
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||
Condensed Consolidated Balance Sheets
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||
Unaudited
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||
(dollars in thousands)
|
March 31, 2012
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December 31, 2011
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|||||||
Assets
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||||||||
Cash and due from banks
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$ | 67,093 | $ | 61,621 | ||||
Certificates of deposit in other banks
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3,492 | 3,592 | ||||||
Investment securities available for sale
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128,622 | 128,310 | ||||||
Loans held for sale
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5,874 | 3,720 | ||||||
Loans, net of unearned income
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220,096 | 229,949 | ||||||
Less allowance for loan and lease losses
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(3,562 | ) | (3,326 | ) | ||||
Net loans
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216,534 | 226,623 | ||||||
Federal Home Loan Bank stock and other stock, at cost
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3,801 | 3,926 | ||||||
Premises and equipment
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15,723 | 15,713 | ||||||
Other real estate owned
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2,031 | 5,026 | ||||||
Company owned life insurance
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7,844 | 7,786 | ||||||
Core deposit intangible asset, net of accumulated amortization
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3,068 | 3,170 | ||||||
Accrued interest and other assets
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2,990 | 3,123 | ||||||
Total Assets
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$ | 457,072 | $ | 462,610 | ||||
Liabilities and Shareholders' Equity
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||||||||
Deposits:
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||||||||
Noninterest-bearing demand
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$ | 113,387 | $ | 105,105 | ||||
Money market, NOW and savings
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156,912 | 156,273 | ||||||
Time certificates of deposit
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134,981 | 149,196 | ||||||
Total deposits
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405,280 | 410,574 | ||||||
Junior subordinated debt securities
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5,519 | 5,491 | ||||||
Accrued interest and other liabilities
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4,710 | 4,271 | ||||||
Warrant liability
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199 | 5,184 | ||||||
Total liabilities
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415,708 | 425,520 | ||||||
Mezzanine financing:
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||||||||
Redeemable Bancorp-issued preferred stock, Series A, B and C; liquidation value of $1,205
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1,205 | 1,205 | ||||||
Redeemable subsidiary-issued preferred stock; liquidation value of $7,000
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7,000 | 7,000 | ||||||
Shareholders' equity:
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||||||||
Common stock - 50,000,000 shares authorized; issued and outstanding: 7,755,066 at March 31, 2012 and December 31, 2011
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40,825 | 40,825 | ||||||
Additional paid-in capital
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7,795 | 2,803 | ||||||
Accumulated deficit
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(17,444 | ) | (16,438 | ) | ||||
Accumulated other comprehensive income
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1,983 | 1,695 | ||||||
Total shareholders' equity
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33,159 | 28,885 | ||||||
Total Liabilities and Shareholders' Equity
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$ | 457,072 | $ | 462,610 |
Mission Community Bancorp and Subsidiaries
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Condensed Consolidated Statements of Operations
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||
Unaudited
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||
(dollars in thousands, except per share data)
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For theThree Months Ended
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||||||||
March 31, 2012
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March 31, 2011
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|||||||
Interest Income
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||||||||
Interest and fees on loans
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$ | 4,299 | $ | 1,789 | ||||
Interest on investment securities
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632 | 419 | ||||||
Other interest income
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44 | 10 | ||||||
Total interest income
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4,975 | 2,218 | ||||||
Interest Expense
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||||||||
Interest on money market, NOW and savings deposits
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72 | 115 | ||||||
Interest on time certificates of deposit
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256 | 247 | ||||||
Other interest expense
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82 | 30 | ||||||
Total interest expense
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410 | 392 | ||||||
Net interest income
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4,565 | 1,826 | ||||||
Provision for loan and lease losses
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225 | - | ||||||
Net interest income (loss) after provision for loan and lease losses
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4,340 | 1,826 | ||||||
Non-interest income
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||||||||
Service charges on deposit accounts
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207 | 77 | ||||||
Gain on sale of loans
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8 | 106 | ||||||
Loan servicing fees, net of amortization
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38 | 24 | ||||||
Gain on sale or call of available-for-sale securities
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1 | - | ||||||
Loss or writedown of other real estate owned
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(358 | ) | (47 | ) | ||||
Change in fair value of warrant liability
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30 | 552 | ||||||
Other income and fees
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112 | 112 | ||||||
Total non-interest income
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38 | 824 | ||||||
Non-interest expense
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||||||||
Salaries and employee benefits
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2,483 | 1,315 | ||||||
Occupancy expenses
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455 | 321 | ||||||
Furniture and equipment
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179 | 114 | ||||||
Data processing
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792 | 201 | ||||||
Professional fees
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409 | 130 | ||||||
Marketing and business development
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125 | 37 | ||||||
Office supplies and expenses
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210 | 59 | ||||||
Insurance and regulatory assessments
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153 | 145 | ||||||
Loan and lease expenses
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64 | 37 | ||||||
Other real estate expenses
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46 | 56 | ||||||
Amortization of core deposit intangible asset
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101 | - | ||||||
Other expenses
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192 | 150 | ||||||
Total non-interest expense
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5,209 | 2,565 | ||||||
Income (loss) before income taxes
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(831 | ) | 85 | |||||
Income tax expense
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- | - | ||||||
Net income (loss)
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$ | (831 | ) | $ | 85 | |||
Less dividends on preferred stock
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175 | 64 | ||||||
Net income (loss) attributable to common stock
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$ | (1,006 | ) | $ | 21 | |||
Per Common Share Data:
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||||||||
Net income (loss) - basic and diluted
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$ | (0.13 | ) | $ | - | |||
Average common shares outstanding - basic
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7,755,066 | 7,094,274 |
Mission Community Bancorp and Subsidiaries
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Consolidated Statements of Comprehensive Loss
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||
Unaudited
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(dollars in thousands)
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For theThree Months Ended
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||||||||
March 31, 2012
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March 31, 2011
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|||||||
Net income (loss)
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$ | (831 | ) | $ | 85 | |||
Other comprehensive income (loss) - unrealized gains (losses) on securities
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288 | (184 | ) | |||||
Comprehensive (loss)
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$ | (543 | ) | $ | (99 | ) |
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
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||||||||||||||||||||||||||||
Additional
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Other
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|||||||||||||||||||||||||||
Preferred
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Common Stock
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Paid-In
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Accumulated
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Comprehensive
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||||||||||||||||||||||||
Stock
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Shares
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Amount
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Capital
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Deficit
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Income
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Total
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||||||||||||||||||||||
Balance at December 31, 2011, as previously reported
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$ | - | 7,755,066 | $ | 40,825 | $ | 2,375 | $ | (16,438 | ) | $ | 1,695 | $ | 28,457 | ||||||||||||||
Adjustment to net contribution from shareholder recognized in additional paid-in capital for Santa Lucia merger
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- | - | - | 428 | - | - | 428 | |||||||||||||||||||||
Balance at January 1, 2012, as adjusted
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$ | - | 7,755,066 | $ | 40,825 | $ | 2,803 | $ | (16,438 | ) | $ | 1,695 | $ | 28,885 | ||||||||||||||
Dividends declared on subsidiary-issued preferred stock
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(175 | ) | (175 | ) | ||||||||||||||||||||||||
Stock-based compensation
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37 | 37 | ||||||||||||||||||||||||||
Cancellation of warrants accounted for as liabilities
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4,955 | 4,955 | ||||||||||||||||||||||||||
Net (loss)
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(831 | ) | (831 | ) | ||||||||||||||||||||||||
Other comprehensive income
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- | - | - | - | - | 288 | 288 | |||||||||||||||||||||
Balance at March 31, 2012
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$ | - | 7,755,066 | $ | 40,825 | $ | 7,795 | $ | (17,444 | ) | $ | 1,983 | $ | 33,159 |
Condensed Consolidated Statements of Cash Flows
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||
(Unaudited - dollars in thousands)
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For the Three Months Ended
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||||||||
March 31, 2012 | March 31, 2011 | |||||||
Operating Activities
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||||||||
Net (loss) income
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$ | (831 | ) | $ | 85 | |||
Adjustments to reconcile net (loss) income to net cash (used in) operating activities:
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||||||||
Depreciation
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222 | 125 | ||||||
Accretion of discount on securities and loans, net
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334 | 119 | ||||||
Amortization of core deposit intangible asset
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101 | - | ||||||
Accretion of discount on assets acquired in merger
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(753 | ) | - | |||||
Amortization of discount on liabilities assumed in merger
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28 | - | ||||||
Provision for loan and lease losses
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225 | - | ||||||
Stock-based compensation
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37 | 34 | ||||||
Gain on sale or call of available-for-sale securities
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(1 | ) | - | |||||
Change in the fair value of warrant liability
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(30 | ) | (552 | ) | ||||
Gain on sale of loans
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(8 | ) | (106 | ) | ||||
Gains on disposition of loans held for sale
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(12 | ) | (50 | ) | ||||
Net losses and writedowns of fixed assets or other real estate
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358 | 47 | ||||||
Increase in company-owned life insurance
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(59 | ) | (22 | ) | ||||
Other, net
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(459 | ) | (723 | ) | ||||
Proceeds from loan sales
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183 | 965 | ||||||
Loans originated for sale
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(154 | ) | (933 | ) | ||||
Net cash used in operating activities
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(819 | ) | (1,011 | ) | ||||
Investing Activities
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||||||||
Net decrease in Federal Home Loan Bank and other stock
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125 | 76 | ||||||
Net decrease in deposits in other banks
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100 | 248 | ||||||
Purchase of available-for-sale securities
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(7,717 | ) | (7,995 | ) | ||||
Proceeds from maturities, calls and paydowns of available-for-sale securities
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9,122 | 3,703 | ||||||
Proceeds from sales of available-for-sale securities
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223 | - | ||||||
Net decrease in loans
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7,326 | 1,550 | ||||||
Purchases of premises and equipment
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(232 | ) | (91 | ) | ||||
Additional investments in other real estate owned
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- | (32 | ) | |||||
Proceeds from sale of other real estate owned
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2,638 | 139 | ||||||
Net cash provided by (used in) investing activities
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11,585 | (2,402 | ) | |||||
Financing Activities
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||||||||
Net increase (decrease) in demand deposits and savings accounts
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8,922 | (4,868 | ) | |||||
Net increase (decrease) in time deposits
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(14,216 | ) | 6,287 | |||||
Net decrease in other borrowings
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- | (349 | ) | |||||
Additional costs of 2010 shareholder rights offering
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- | (40 | ) | |||||
Payment of TARP-CPP dividends
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- | (64 | ) | |||||
Net cash provided by (used in) financing activities
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(5,294 | ) | 966 | |||||
Net increase (decrease) in cash and cash equivalents
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5,472 | (2,447 | ) | |||||
Cash and cash equivalents at beginning of period
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61,621 | 10,817 | ||||||
Cash and cash equivalents at end of period
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$ | 67,093 | $ | 8,370 | ||||
Non-cash changes:
|
||||||||
Change in unrealized gains (losses) on available-for-sale securities
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$ | 288 | (184 | ) | ||||
Loans reclassified to held for sale
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4,583 | - | ||||||
Real estate acquired by foreclosure
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- | 1,070 | ||||||
Adjustment to net contribution from shareholder recognized in additional paid-in capital for Santa Lucia merger
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428 | - | ||||||
Cancellation of warrants accounted for as liabilities
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(4,955 | ) | - | |||||
Supplemental disclosures of cash flow information:
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||||||||
Interest paid
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536 | 382 | ||||||
Taxes paid
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- | - |
Date of grant
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1/25/2011
|
|||
Number of options granted
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20,000 | |||
Exercise price
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$ | 5.00 | ||
Market price of common stock
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$ | 3.65 | ||
Expected stock price volatility
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37.4% | |||
Expected option life
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6 years
|
|||
Risk-free interest rate
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2.32% | |||
Weighted average fair value of all options granted during the period:
|
||||
3 months ended 3/31/11
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$ | 1.09 |
April 1 through December 31, 2012
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$ | 107 | ||
2013
|
85 | |||
2014
|
29 | |||
2015
|
29 | |||
2016
|
19 | |||
Total unrecognized compensation cost
|
$ | 269 |
Weighted-
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Aggregate
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|||||||||||||||
Weighted-
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Average
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Intrinsic
|
||||||||||||||
Average
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Remaining
|
Value of
|
||||||||||||||
Exercise
|
Contractual
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In-the-Money
|
||||||||||||||
Shares
|
Price
|
Term
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Options
|
|||||||||||||
Outstanding at beginning of period
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297,219 | $ | 7.84 | |||||||||||||
Options granted
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- | |||||||||||||||
Options exercised
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- | |||||||||||||||
Options forfeited
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(12,319 | ) | 18.00 | |||||||||||||
Outstanding at end of period
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284,900 | $ | 7.40 | 8.0 Years | $ | - | ||||||||||
Options exercisable at end of period
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139,338 | $ | 9.53 | 6.9 Years | $ | - | ||||||||||
Options Vested or Expected to Vest
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284,900 | $ | 7.40 | 8.0 Years | $ | - |
(in thousands)
|
Gross
|
Gross
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Estimated
|
|||||||||||||
Amortized
|
Unrealized
|
Unrealized
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Fair
|
|||||||||||||
Cost
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Gains
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Losses
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Value
|
|||||||||||||
March 31, 2012:
|
||||||||||||||||
U.S. Government agencies
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$ | 26,650 | $ | 360 | $ | (12 | ) | $ | 26,998 | |||||||
Residential mortgage-backed securities
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85,474 | 1,404 | - | 86,878 | ||||||||||||
Municipal securities
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4,596 | 219 | (2 | ) | 4,813 | |||||||||||
Corporate debt securities
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3,048 | 3 | (12 | ) | 3,039 | |||||||||||
Asset-backed securities
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6,871 | 32 | (9 | ) | 6,894 | |||||||||||
$ | 126,639 | $ | 2,018 | $ | (35 | ) | $ | 128,622 | ||||||||
December 31, 2011:
|
||||||||||||||||
U.S. Government agencies
|
$ | 26,098 | $ | 331 | $ | (12 | ) | $ | 26,417 | |||||||
Residential mortgage-backed securities
|
88,209 | 1,122 | (38 | ) | 89,293 | |||||||||||
Municipal securities
|
4,820 | 239 | (2 | ) | 5,057 | |||||||||||
Corporate debt securities
|
2,059 | - | (4 | ) | 2,055 | |||||||||||
Asset-backed securities
|
5,429 | 79 | (20 | ) | 5,488 | |||||||||||
$ | 126,615 | $ | 1,771 | $ | (76 | ) | $ | 128,310 |
(in thousands)
|
Available-for-Sale Securities
|
|||||||
Amortized
|
Fair
|
|||||||
Cost
|
Value
|
|||||||
Within one year
|
$ | 3,425 | $ | 3,444 | ||||
Due in one year to five years
|
16,203 | 16,294 | ||||||
Due in five years to ten years
|
32,506 | 32,879 | ||||||
Due in greater than ten years
|
74,505 | 76,005 | ||||||
$ | 126,639 | $ | 128,622 |
(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, 2012:
|
||||||||||||||||||||||||
U.S. Government agencies
|
2,988 | $ | 12 | $ | - | $ | - | $ | 2,988 | $ | 12 | |||||||||||||
Residential mortgage-backed securities
|
- | - | - | - | - | - | ||||||||||||||||||
Municipal securities
|
240 | 2 | - | - | 240 | 2 | ||||||||||||||||||
Corporate debt securities
|
988 | 12 | - | - | 988 | 12 | ||||||||||||||||||
Asset-backed securities
|
3,221 | 9 | - | - | 3,221 | 9 | ||||||||||||||||||
$ | 7,437 | $ | 35 | $ | - | $ | - | $ | 7,437 | $ | 35 | |||||||||||||
December 31, 2011:
|
||||||||||||||||||||||||
U.S. Government agencies
|
$ | 2,082 | $ | 12 | $ | - | $ | - | $ | 2,082 | $ | 12 | ||||||||||||
Residential mortgage-backed securities
|
9,731 | 38 | - | - | 9,731 | 38 | ||||||||||||||||||
Municipal securities
|
240 | 2 | - | - | 240 | 2 | ||||||||||||||||||
Corporate debt securities
|
1,055 | 4 | - | - | 1,055 | 4 | ||||||||||||||||||
Asset-backed securities
|
1,585 | 20 | - | - | 1,585 | 20 | ||||||||||||||||||
$ | 14,693 | $ | 76 | $ | - | $ | - | $ | 14,693 | $ | 76 |
Loan Composition
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
March 31, 2012
|
December 31, 2011
|
|||||||||||||||
Type of Loan
|
Amount
|
Percentage
|
Amount
|
Percentage
|
||||||||||||
Construction and land development
|
$ | 18,087 | 8.0 | % | $ | 18,022 | 7.6 | % | ||||||||
Commercial real estate - owner-occupied
|
70,894 | 31.4 | % | 70,153 | 30.0 | % | ||||||||||
Commercial real estate - non-owner-occupied
|
60,302 | 26.7 | % | 64,382 | 27.6 | % | ||||||||||
Residential real estate
|
33,012 | 14.6 | % | 32,609 | 14.0 | % | ||||||||||
All other real estate loans
|
2,014 | 0.9 | % | 2,321 | 1.0 | % | ||||||||||
Commercial and industrial loans
|
26,019 | 11.5 | % | 30,176 | 12.9 | % | ||||||||||
Agricultural loans
|
9,524 | 4.2 | % | 9,272 | 4.0 | % | ||||||||||
Municipal loans
|
2,388 | 1.1 | % | 2,393 | 1.0 | % | ||||||||||
Leases, net of unearned income
|
1,835 | 0.8 | % | 2,323 | 1.0 | % | ||||||||||
Consumer loans
|
1,895 | 0.8 | % | 2,018 | 0.9 | % | ||||||||||
Total loans
|
$ | 225,970 | 100.0 | % | $ | 233,669 | 100.0 | % |
Loans Held for Sale*
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
March 31, 2012
|
December 31, 2011
|
|||||||||||||||
Type of Loan
|
Amount
|
% of Total Loans
|
Amount
|
% of Total Loans
|
||||||||||||
Commercial
|
$ | 721 | 0.3 | % | $ | 115 | 0.0 | % | ||||||||
Real estate
|
1,974 | 0.9 | % | 3,030 | 1.3 | % | ||||||||||
Construction and land development
|
3,179 | 1.4 | % | 575 | 0.2 | % | ||||||||||
Total loans held for sale
|
$ | 5,874 | 2.6 | % | $ | 3,720 | 1.6 | % |
* Consists of all loans held at Mission Asset Management, Inc. and SBA-guaranteed loans held for sale at Mission Community Bank
|
Three Months Ended
|
||||||||
March 31, 2012
|
March 31, 2011
|
|||||||
Balance at beginning of period
|
$ | 3,326 | $ | 3,198 | ||||
Provision for loan and lease losses charged to expense
|
225 | - | ||||||
Loans charged off
|
(1 | ) | (8 | ) | ||||
Recoveries on loans previously charged off
|
12 | 55 | ||||||
Balance at end of period
|
$ | 3,562 | $ | 3,245 |
Three Months Ended March 31, 2012
|
||||||||||||||||||||
Loan Portfolio Segment
|
Balance at Beginning of Period
|
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
|
$ | 157 | $ | (8 | ) | $ | - | $ | - | $ | 149 | |||||||||
Commercial real estate - owner-occupied
|
253 | 3 | - | - | 256 | |||||||||||||||
Commercial real estate - non-owner-occupied
|
675 | (136 | ) | - | - | 539 | ||||||||||||||
Residential real estate
|
640 | 71 | - | - | 711 | |||||||||||||||
All other real estate loans
|
4 | - | - | - | 4 | |||||||||||||||
Commercial and industrial loans
|
1,363 | 189 | - | 10 | 1,562 | |||||||||||||||
Consumer and all other loans and lease financing
|
124 | 60 | (1 | ) | 2 | 185 | ||||||||||||||
Unallocated
|
110 | 46 | - | - | 156 | |||||||||||||||
Totals
|
$ | 3,326 | $ | 225 | $ | (1 | ) | $ | 12 | $ | 3,562 |
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
|
$ | 531 | $ | 94 | $ | - | $ | - | $ | 625 | ||||||||||
Commercial real estate - owner-occupied
|
164 | 136 | - | 10 | 310 | |||||||||||||||
Commercial real estate - non-owner-occupied
|
697 | (222 | ) | - | - | 475 | ||||||||||||||
Residential real estate
|
501 | (83 | ) | - | 14 | 432 | ||||||||||||||
All other real estate loans
|
4 | - | - | - | 4 | |||||||||||||||
Commercial and industrial loans
|
1,021 | (132 | ) | - | 31 | 920 | ||||||||||||||
Consumer and all other loans and lease financing
|
124 | (6 | ) | (8 | ) | - | 110 | |||||||||||||
Unallocated
|
156 | 213 | - | - | 369 | |||||||||||||||
Totals
|
$ | 3,198 | $ | - | $ | (8 | ) | $ | 55 | $ | 3,245 |
|
Pass – A pass loan meets all of the Company’s underwriting criteria and provides adequate protection for the Bank through the paying capacity of the borrower and/or the value and marketability of the collateral.
|
|
Special Mention – A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the Company’s credit position at some future date. Special Mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification.
|
|
Substandard – A substandard loan is not adequately protected by the current sound worth and paying capacity of the borrower or the value of the collateral pledged, if any. Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Substandard loans have a high probability of payment default, or they have other well defined weaknesses, and are generally characterized by current or expected unprofitable operations, inadequate debt service coverage, inadequate liquidity, or marginal capitalization.
|
|
Doubtful – Loans classified doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.
|
|
Loss – Loans classified as loss are considered uncollectible and are of such little value that their continuance as bankable assets is not warranted. Loans classified as loss are charged off immediately.
|
Loans by Risk Rating (excluding loans held for sale*)
|
Risk Ratings
|
|||||||||||||||||||
(in thousands)
|
Special
|
Total
|
||||||||||||||||||
Pass
|
Mention
|
Substandard
|
Doubtful
|
Loans
|
||||||||||||||||
As of March 31, 2012:
|
||||||||||||||||||||
Construction and land development
|
$ | 13,923 | $ | 148 | $ | 1,034 | $ | - | $ | 15,105 | ||||||||||
Commercial real estate - owner-occupied
|
64,194 | - | 5,781 | - | 69,975 | |||||||||||||||
Commercial real estate - non-owner-occupied
|
49,454 | 5,129 | 5,890 | - | 60,473 | |||||||||||||||
Residential real estate
|
26,788 | 484 | 4,606 | 189 | 32,067 | |||||||||||||||
All other real estate
|
1,889 | - | - | - | 1,889 | |||||||||||||||
Commercial and industrial
|
32,263 | 234 | 4,375 | 85 | 36,957 | |||||||||||||||
Consumer and all other loans and lease financing
|
3,630 | - | - | - | 3,630 | |||||||||||||||
Total loans, net of unearned income
|
$ | 192,141 | $ | 5,995 | $ | 21,686 | $ | 274 | $ | 220,096 | ||||||||||
As of December 31, 2011:
|
||||||||||||||||||||
Construction and land development
|
$ | 13,931 | $ | 157 | $ | 3,359 | $ | - | $ | 17,447 | ||||||||||
Commercial real estate - owner-occupied
|
68,899 | - | 4,566 | - | 73,465 | |||||||||||||||
Commercial real estate - non-owner-occupied
|
49,139 | 5,154 | 5,116 | - | 59,409 | |||||||||||||||
Residential real estate
|
27,672 | 491 | 3,365 | - | 31,528 | |||||||||||||||
All other real estate
|
1,895 | 138 | - | - | 2,033 | |||||||||||||||
Commercial and industrial
|
32,154 | 250 | 6,841 | 88 | 39,333 | |||||||||||||||
Consumer and all other loans and lease financing
|
6,734 | - | - | - | 6,734 | |||||||||||||||
Total loans, net of unearned income
|
$ | 200,424 | $ | 6,190 | $ | 23,247 | $ | 88 | $ | 229,949 |
* Loans held for sale consists of all loans held at Mission Asset Management, Inc. and SBA-guaranteed loans held for sale at Mission Community Bank
|
(in thousands)
|
||||||||||||||||||||||||||||||||
Construction and Land Development
|
Commercial Real Estate
|
Consumer and All Other Loans and Leases
|
||||||||||||||||||||||||||||||
Owner-Occupied
|
Non-Owner-Occupied
|
Residential Real Estate
|
All Other Real Estate
|
Commercial and Industrial
|
Total Loans | |||||||||||||||||||||||||||
As of March 31, 2012:
|
||||||||||||||||||||||||||||||||
Recorded Balance of Loans Past Due:
|
||||||||||||||||||||||||||||||||
30-59 Days
|
$ | 133 | $ | 977 | $ | - | $ | - | $ | - | $ | 240 | $ | 8 | $ | 1,358 | ||||||||||||||||
60-89 Days
|
- | - | - | - | - | 112 | - | 112 | ||||||||||||||||||||||||
90+ Days
|
- | 594 | - | 459 | - | 205 | - | 1,258 | ||||||||||||||||||||||||
Total Past Due
|
133 | 1,571 | - | 459 | - | 557 | 8 | 2,728 | ||||||||||||||||||||||||
Loans in Current Payment Status
|
14,972 | 68,404 | 60,473 | 31,608 | 1,889 | 36,400 | 3,622 | 217,368 | ||||||||||||||||||||||||
Total Loans
|
$ | 15,105 | $ | 69,975 | $ | 60,473 | $ | 32,067 | $ | 1,889 | $ | 36,957 | $ | 3,630 | $ | 220,096 | ||||||||||||||||
Loans 90+ Days Past Due and Accruing1
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Accruing troubled debt restructurings
|
200 | - | - | - | - | - | - | 200 | ||||||||||||||||||||||||
Loans in Non-accrual Status
|
279 | 1,756 | 108 | 1,640 | - | 1,692 | - | 5,475 | ||||||||||||||||||||||||
As of December 31, 2011:
|
||||||||||||||||||||||||||||||||
Recorded Balance of Loans Past Due:
|
||||||||||||||||||||||||||||||||
30-59 Days
|
$ | 492 | $ | 594 | $ | - | $ | - | $ | - | $ | 549 | $ | - | $ | 1,635 | ||||||||||||||||
60-89 Days
|
- | - | - | 423 | - | 220 | - | 643 | ||||||||||||||||||||||||
90+ Days
|
1,323 | 1,033 | 21 | 147 | - | 627 | - | 3,151 | ||||||||||||||||||||||||
Total Past Due
|
1,815 | 1,627 | 21 | 570 | - | 1,396 | - | 5,429 | ||||||||||||||||||||||||
Loans in Current Payment Status
|
15,632 | 71,838 | 59,388 | 30,958 | 2,033 | 37,937 | 6,734 | 224,520 | ||||||||||||||||||||||||
Total Loans
|
$ | 17,447 | $ | 73,465 | $ | 59,409 | $ | 31,528 | $ | 2,033 | $ | 39,333 | $ | 6,734 | $ | 229,949 | ||||||||||||||||
Loans 90+ Days Past Due and Accruing1
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Accruing troubled debt restructurings
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Loans in Non-accrual Status
|
2,031 | 1,429 | 122 | 1,296 | - | 2,107 | - | 6,985 |
1 Includes pooled loans acquired with deteriorated credit quality. Management evaluates estimated cash flows subsequent to acquisition. If cash flows have not decreased, the pooled acquired loans remain in performing status.
|
(in thousands)
|
||||||||||||||||||||||||||||||||||||
Commercial Real Estate
|
Consumer and All | |||||||||||||||||||||||||||||||||||
Construction and Land Development
|
Owner-Occupied
|
Non-Owner-Occupied
|
Residential Real Estate
|
All Other Real Estate
|
Commercial and Industrial
|
Other Loans and Leases
|
Unallocated
|
Total Loans
|
||||||||||||||||||||||||||||
Loans Held for Investment as of March 31, 2012:
|
||||||||||||||||||||||||||||||||||||
Recorded Investment:
|
||||||||||||||||||||||||||||||||||||
Impaired Loans With an Allowance Recorded
|
$ | - | $ | - | $ | - | $ | 189 | $ | - | $ | 450 | $ | - | $ | 639 | ||||||||||||||||||||
Impaired Loans With No Allowance Recorded
|
- | 1,571 | - | - | - | 396 | - | 1,967 | ||||||||||||||||||||||||||||
Total Loans Individually Evaluated For Impairment
|
- | 1,571 | - | 189 | - | 846 | - | 2,606 | ||||||||||||||||||||||||||||
Loans Collectively Evaluated For Impairment
|
12,224 | 51,429 | 48,512 | 26,516 | 1,889 | 33,153 | 3,444 | 177,167 | ||||||||||||||||||||||||||||
Loans Acquired With Deteriorated Credit Quality
|
2,881 | 16,975 | 11,961 | 5,362 | - | 2,958 | 186 | 40,323 | ||||||||||||||||||||||||||||
Total Loans Held for Investment
|
$ | 15,105 | $ | 69,975 | $ | 60,473 | $ | 32,067 | $ | 1,889 | $ | 36,957 | $ | 3,630 | $ | 220,096 | ||||||||||||||||||||
Unpaid Principal Balance:
|
||||||||||||||||||||||||||||||||||||
Impaired Loans With An Allowance Recorded
|
$ | - | $ | - | $ | - | $ | 190 | $ | - | $ | 483 | $ | - | $ | 673 | ||||||||||||||||||||
Impaired Loans With No Allowance Recorded
|
- | 1,615 | - | - | - | 351 | - | 1,966 | ||||||||||||||||||||||||||||
Total Loans Individually Evaluated For Impairment
|
- | 1,615 | - | 190 | - | 834 | - | 2,639 | ||||||||||||||||||||||||||||
Loans Collectively Evaluated For Impairment
|
12,224 | 51,429 | 48,512 | 26,516 | 1,889 | 33,153 | 3,444 | 177,167 | ||||||||||||||||||||||||||||
Loans Acquired With Deteriorated Credit Quality
|
6,630 | 18,799 | 13,792 | 7,400 | - | 5,089 | 190 | 51,900 | ||||||||||||||||||||||||||||
Total Loans Held for Investment
|
$ | 18,601 | $ | 70,184 | $ | 61,000 | $ | 33,225 | $ | 1,889 | $ | 37,855 | $ | 3,630 | $ | 226,384 | ||||||||||||||||||||
Related Allowance for Loan and Lease Losses:
|
||||||||||||||||||||||||||||||||||||
Impaired Loans With An Allowance Recorded
|
$ | - | $ | - | $ | - | $ | 128 | $ | - | $ | 264 | $ | - | $ | 392 | ||||||||||||||||||||
Impaired Loans With No Allowance Recorded
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
Total Loans Individually Evaluated For Impairment
|
- | - | - | 128 | - | 264 | - | 392 | ||||||||||||||||||||||||||||
Loans Collectively Evaluated For Impairment
|
149 | 192 | 539 | 583 | 4 | 1,132 | 185 | $ | 156 | 2,940 | ||||||||||||||||||||||||||
Loans Acquired With Deteriorated Credit Quality
|
- | 64 | - | - | - | 166 | - | 230 | ||||||||||||||||||||||||||||
Total Loans Held for Investment
|
$ | 149 | $ | 256 | $ | 539 | $ | 711 | $ | 4 | $ | 1,562 | $ | 185 | $ | 156 | $ | 3,562 | ||||||||||||||||||
For the Three Months Ended March 31, 2012:
|
||||||||||||||||||||||||||||||||||||
Average Recorded Investment in Impaired Loans:
|
||||||||||||||||||||||||||||||||||||
Impaired Loans With An Allowance Recorded
|
$ | - | $ | - | $ | - | $ | 94 | $ | - | $ | 464 | $ | - | $ | 558 | ||||||||||||||||||||
Impaired Loans With No Allowance Recorded
|
- | 1,606 | - | - | - | 383 | - | 1,989 | ||||||||||||||||||||||||||||
Total Loans Individually Evaluated For Impairment
|
$ | - | $ | 1,606 | $ | - | $ | 94 | $ | - | $ | 847 | $ | - | $ | 2,547 | ||||||||||||||||||||
Interest Income Recognized on Impaired Loans:
|
||||||||||||||||||||||||||||||||||||
Impaired Loans With An Allowance Recorded
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||
Impaired Loans With No Allowance Recorded
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
Total Loans Individually Evaluated For Impairment
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - |
(in thousands)
|
||||||||||||||||||||||||||||||||||||
Construction and Land Development
|
Commercial Real Estate
|
Unallocated
|
Consumer and All | |||||||||||||||||||||||||||||||||
Owner-Occupied
|
Non-Owner-Occupied
|
Residential Real Estate
|
All Other Real Estate
|
Commercial and Industrial
|
Other Loans and Leases
|
Total Loans
|
||||||||||||||||||||||||||||||
Loans Held for Investment as of December 31, 2011:
|
||||||||||||||||||||||||||||||||||||
Recorded Investment:
|
||||||||||||||||||||||||||||||||||||
Impaired Loans With an Allowance Recorded
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | 396 | $ | - | $ | 396 | ||||||||||||||||||||
Impaired Loans With No Allowance Recorded
|
- | 1,028 | - | - | - | 423 | - | 1,451 | ||||||||||||||||||||||||||||
Total Loans Individually Evaluated For Impairment
|
- | 1,028 | - | - | - | 819 | - | 1,847 | ||||||||||||||||||||||||||||
Loans Collectively Evaluated For Impairment
|
11,617 | 57,980 | 42,406 | 27,103 | 2,033 | 34,519 | 6,547 | 182,205 | ||||||||||||||||||||||||||||
Loans Acquired With Deteriorated Credit Quality
|
5,830 | 14,457 | 17,003 | 4,425 | - | 3,995 | 187 | 45,897 | ||||||||||||||||||||||||||||
Total Loans Held for Investment
|
$ | 17,447 | $ | 73,465 | $ | 59,409 | $ | 31,528 | $ | 2,033 | $ | 39,333 | $ | 6,734 | $ | 229,949 | ||||||||||||||||||||
Unpaid Principal Balance:
|
||||||||||||||||||||||||||||||||||||
Impaired Loans With An Allowance Recorded
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | 443 | $ | - | $ | 443 | ||||||||||||||||||||
Impaired Loans With No Allowance Recorded
|
- | 1,045 | - | - | - | 518 | - | 1,563 | ||||||||||||||||||||||||||||
Total Loans Individually Evaluated For Impairment
|
- | 1,045 | - | - | - | 961 | - | 2,006 | ||||||||||||||||||||||||||||
Loans Collectively Evaluated For Impairment
|
11,617 | 57,980 | 42,406 | 27,103 | 2,033 | 34,519 | 6,547 | 182,205 | ||||||||||||||||||||||||||||
Loans Acquired With Deteriorated Credit Quality
|
9,981 | 16,350 | 18,954 | 5,129 | - | 6,132 | 191 | 56,737 | ||||||||||||||||||||||||||||
Total Loans Held for Investment
|
$ | 21,598 | $ | 75,375 | $ | 61,360 | $ | 32,232 | $ | 2,033 | $ | 41,612 | $ | 6,738 | $ | 240,948 | ||||||||||||||||||||
Related Allowance for Loan and Lease Losses:
|
||||||||||||||||||||||||||||||||||||
Impaired Loans With An Allowance Recorded
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | 81 | $ | - | $ | 81 | ||||||||||||||||||||
Impaired Loans With No Allowance Recorded
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
Total Loans Individually Evaluated For Impairment
|
- | - | - | - | - | 81 | - | 81 | ||||||||||||||||||||||||||||
Loans Collectively Evaluated For Impairment
|
157 | 253 | 675 | 640 | 4 | 1,282 | 124 | $ | 110 | 3,245 | ||||||||||||||||||||||||||
Loans Acquired With Deteriorated Credit Quality
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
Total Loans Held for Investment
|
$ | 157 | $ | 253 | $ | 675 | $ | 640 | $ | 4 | $ | 1,363 | $ | 124 | $ | 110 | $ | 3,326 | ||||||||||||||||||
For the Year Ended December 31, 2011:
|
||||||||||||||||||||||||||||||||||||
Average Recorded Investment in Impaired Loans:
|
||||||||||||||||||||||||||||||||||||
Impaired Loans With An Allowance Recorded
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | 224 | $ | - | $ | 224 | ||||||||||||||||||||
Impaired Loans With No Allowance Recorded
|
- | 1,011 | - | - | - | 341 | - | 1,352 | ||||||||||||||||||||||||||||
Total Loans Individually Evaluated For Impairment
|
$ | - | $ | 1,011 | $ | - | $ | - | $ | - | $ | 565 | $ | - | $ | 1,576 | ||||||||||||||||||||
Interest Income Recognized on Impaired Loans:
|
||||||||||||||||||||||||||||||||||||
Impaired Loans With An Allowance Recorded
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||
Impaired Loans With No Allowance Recorded
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
Total Loans Individually Evaluated For Impairment
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - |
Three Months Ended
|
||||
(in thousands)
|
March 31,
|
|||
2012
|
||||
Balance at beginning of period
|
$ | 3,289 | ||
Measurement period adjustments to Santa Lucia Bank fair values
|
(428 | ) | ||
Accretion to interest income
|
(260 | ) | ||
Loans reclassified to held for sale
|
(355 | ) | ||
Transfers from non-accretable discount to accretable
|
- | |||
Balance at end of period
|
$ | 2,246 |
Weighted
|
||||||||
Average
|
||||||||
Exercise
|
||||||||
Shares
|
Price
|
|||||||
Outstanding January 1, 2011
|
5,748,672 | 5.00 | ||||||
Warrants granted in 2011
|
2,202,641 | $ | 4.54 | |||||
Warrants exercised in 2011
|
(660,792 | ) | 4.54 | |||||
Outstanding December 31, 2011
|
7,290,521 | $ | 4.90 | |||||
Warrants granted in 1st qtr. 2012
|
6,487,800 | $ | 5.00 | |||||
Warrants cancelled in 1st qtr. 2012
|
(6,387,973 | ) | 4.90 | |||||
Outstanding March 31, 2012
|
7,390,348 | $ | 4.99 |
(in thousands, except per share data)
|
Three Months Ended
|
|||||||
March 31, 2012
|
March 31, 2011
|
|||||||
Net income (loss)
|
$ | (831 | ) | $ | 85 | |||
Less dividends on preferred stock:
|
||||||||
Non-convertible subsidiary-issued preferred stock
|
175 | - | ||||||
TARP preferred stock (Series D)
|
- | 64 | ||||||
Net income allocated to all classes of preferred stock
|
175 | 64 | ||||||
Net income (loss) attributable to common stock
|
$ | (1,006 | ) | $ | 21 | |||
Average common shares outstanding
|
7,755,066 | 7,094,274 | ||||||
Basic and diluted loss per common share
|
$ | (0.13 | ) | $ | - |
|
·
|
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.
|
As of March 31, 2012
|
As of December 31, 2011
|
||||||
2011
|
2011
|
June 2010
|
April 2010
|
||||
Warrants
|
Warrants
|
Warrants
|
Warrants
|
||||
Warrant exercise price
|
$4.54
|
$4.54
|
$5.00
|
$5.00
|
|||
Market price of common stock
|
$3.40
|
$3.35
|
$3.35
|
$3.35
|
|||
Average risk-free interest rate
|
2.23%
|
1.89%
|
0.36%
|
0.36%
|
|||
Average expected volatility
|
34.27%
|
33.57%
|
44.01%
|
45.07%
|
|||
Average expected life (in years)
|
9.56
|
9.81
|
3.46
|
3.32
|
|||
Expected dividend yield
|
0.00%
|
0.00%
|
0.00%
|
0.00%
|
(in thousands)
|
Fair Value Measurements Using
|
|||||||||||||||
March 31, 2012
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Available for sale securities:
|
||||||||||||||||
U.S. Government agencies
|
$ | - | $ | 26,998 | $ | - | $ | 26,998 | ||||||||
Mortgage-backed securities
|
- | 86,878 | - | 86,878 | ||||||||||||
Municipal securities
|
- | 4,813 | - | 4,813 | ||||||||||||
Corporate debt securities
|
- | 3,039 | - | 3,039 | ||||||||||||
Asset-backed securities
|
- | 6,894 | - | 6,894 | ||||||||||||
Total available-for-sale securities
|
- | 128,622 | - | 128,622 | ||||||||||||
Loans held for sale
|
- | - | 5,874 | 5,874 | ||||||||||||
Warrant liability
|
- | - | (199 | ) | (199 | ) | ||||||||||
Total assets measured at fair value on a recurring basis
|
$ | - | $ | 128,622 | $ | 5,675 | $ | 134,297 | ||||||||
December 31, 2011
|
||||||||||||||||
Available for sale securities:
|
||||||||||||||||
U.S. Government agencies
|
$ | - | $ | 26,417 | $ | - | $ | 26,417 | ||||||||
Mortgage-backed securities
|
- | 89,293 | - | 89,293 | ||||||||||||
Municipal securities
|
- | 5,057 | - | 5,057 | ||||||||||||
Corporate debt securities
|
- | 2,055 | - | 2,055 | ||||||||||||
Asset-backed securities
|
- | 5,488 | - | 5,488 | ||||||||||||
Total available-for-sale securities
|
- | 128,310 | - | 128,310 | ||||||||||||
Loans held for sale
|
- | - | 3,720 | 3,720 | ||||||||||||
Warrant liability
|
- | - | (5,184 | ) | (5,184 | ) | ||||||||||
Total assets measured at fair value on a recurring basis
|
$ | - | $ | 128,310 | $ | (1,464 | ) | $ | 126,846 |
(in thousands)
|
Current
|
|||||||||||||||||||
Period
|
||||||||||||||||||||
Fair Value Measurements Using
|
Gains
|
|||||||||||||||||||
March 31, 2012
|
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--
|
||||||||||||||||||||
Construction and land development
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Commercial real estate - owner-occupied
|
- | - | 1,571 | 1,571 | - | |||||||||||||||
Commercial real estate - non-owner-occupied
|
- | - | - | - | - | |||||||||||||||
Residential real estate
|
- | - | 61 | 61 | (128 | ) | ||||||||||||||
All other real estate
|
- | - | - | - | - | |||||||||||||||
Commercial and industrial
|
- | - | 582 | 582 | (190 | ) | ||||||||||||||
Consumer and all other loans and lease financing
|
- | - | - | - | - | |||||||||||||||
Total impaired loans, net of charge-offs and specific reserves
|
$ | - | $ | - | $ | 2,214 | $ | 2,214 | $ | (318 | ) | |||||||||
Non-financial assets measured at fair value on a non-recurring basis:
|
||||||||||||||||||||
Other real estate owned
|
$ | - | $ | - | $ | 2,031 | $ | 2,031 | $ | (358 | ) |
(in thousands)
|
Level 3 Securities Available for Sale, Loans Held for Sale and Warrant Liability
|
|||||||
Three Months Ended March 31
|
||||||||
2012
|
2011
|
|||||||
Balance at beginning of year
|
$ | (1,464 | ) | $ | 10,086 | |||
Net increase (decrease) in SBA loans held for sale
|
61 | 223 | ||||||
Loans held for sale transfered into Level 3
|
4,282 | - | ||||||
Settlements - principal reductions in loans held for sale
|
(21 | ) | (1,810 | ) | ||||
Loan participations sold to related party
|
(2,168 | ) | - | |||||
Loans held for sale transferred to other real estate owned
|
- | (1,070 | ) | |||||
Loans held for sale valuation reserve
|
- | (1 | ) | |||||
Cancellation of warrants accounted for as liabilities
|
4,955 | - | ||||||
Changes in fair value of warrant liability
|
30 | 552 | ||||||
Balance at end of period
|
$ | 5,675 | $ | 7,980 |
(in thousands)
|
March 31, 2012
|
December 31, 2011
|
||||||||||||||
Carrying Value
|
Fair Value
|
Carrying Value
|
Fair Value
|
|||||||||||||
Financial Assets:
|
||||||||||||||||
Cash and due from banks
|
$ | 67,093 | $ | 67,093 | $ | 61,621 | $ | 61,621 | ||||||||
Interest-bearing deposits in other banks
|
3,492 | 3,492 | 3,592 | 3,592 | ||||||||||||
Investment securities
|
128,622 | 128,622 | 128,310 | 128,310 | ||||||||||||
Loans held for sale
|
5,874 | 5,874 | 3,720 | 3,720 | ||||||||||||
Loans, net of allowance for loan and lease losses
|
216,534 | 215,233 | 226,623 | 224,721 | ||||||||||||
Federal Home Loan Bank and other stocks
|
3,801 | 3,801 | 3,926 | 3,926 | ||||||||||||
Accrued interest receivable
|
1,277 | 1,277 | 1,450 | 1,450 | ||||||||||||
Financial Liabilities:
|
||||||||||||||||
Deposits
|
405,280 | 405,582 | 410,574 | 411,323 | ||||||||||||
Junior subordinated debt securities
|
5,519 | 4,612 | 5,491 | 4,527 | ||||||||||||
Accrued interest payable
|
205 | 205 | 330 | 330 | ||||||||||||
Warrant liability
|
199 | 199 | 5,184 | 5,184 |
Recognized amounts of identifiable assets acquired and liabilities assumed:
|
||||
Financial assets--
|
||||
Cash and cash equivalents
|
$ | 53,998 | ||
Investment securities
|
21,487 | |||
Loans
|
122,374 | |||
Federal Home Loan Bank and other stocks
|
1,574 | |||
Company-owned life insurance
|
4,690 | |||
Other financial assets
|
1,085 | |||
Total financial assets
|
205,208 | |||
Premises and equipment
|
13,021 | |||
Other real estate owned
|
2,548 | |||
Identifiable intangible assets
|
3,237 | |||
Other assets
|
289 | |||
Financial liabilities:
|
||||
Deposits
|
(220,102 | ) | ||
Junior subordinated debt securities
|
(2,380 | ) | ||
Other financial liabilities
|
(162 | ) | ||
Total financial liabilities
|
(222,644 | ) | ||
Other liabilities
|
(325 | ) | ||
Identifiable net assets acquired / net contribution from shareholder
|
$ | 1,334 |
Three Months Ended
|
||||
March 31,
|
||||
(in thousands)
|
2011
|
|||
Interest income
|
$ | 5,837 | ||
Non-interest income
|
982 | |||
Net income
|
273 | |||
Basic and diluted earnings per share
|
$ | - |
|
·
|
The Company incurred a net loss of $(831) thousand for the first quarter of 2012, as compared with net income of $85 thousand for the first quarter of 2011. Net loss applicable to common stock was $(1.006) million in the most recent quarter, as compared to net income of $21 thousand for the same period in 2011.
|
|
·
|
A $225 thousand provision for loan losses was recorded in the first quarter of 2012. No loan loss provision was recognized in the first three months of 2011.
|
|
·
|
Net interest income for the three-month period ended March 31, 2012, was $4.565 million, an increase of $2.514 million from the same period in 2011. The increase in net interest income was primarily due to the acquisition of Santa Lucia Bank in the fourth quarter of 2011.
|
|
·
|
The net interest margin (net interest income as a percentage of average interest earning assets) increased by 81 basis points, to 4.33%, for the three-month period ended March 31, 2012, as compared to the same period in 2011.
|
|
·
|
For the three months ended March 31, 2012, non-interest income decreased by $786 thousand from the same period in 2011. The decrease was primarily due write-downs on the value of other real estate owned and decreased income from changes if the fair value of warrant liability.
|
|
·
|
Non-interest expense increased by $2.644 million for the first quarter of 2012, as compared to the same quarter in 2011. Principal factors relating to the increase were salaries and benefits for Santa Lucia Bank personnel and recently-hired officers, increased professional and data processing fees related to the Santa Lucia Bank acquisition ($112 thousand and $272 thousand, respectively), and amortization of the core deposit intangible asset ($101 thousand).
|
|
·
|
Total assets decreased by $5.1 million (1.1 %) from December 31, 2011 to March 31, 2012, primarily attributable to a $7.3 million decrease in loans.
|
|
·
|
Non-performing assets decreased from $13.6 million as of December 31, 2011 to $10.5 million on March 31, 2012.
|
(Dollars in thousands)
|
||||||||||||||||||||||||
For the Three Months Ended
|
||||||||||||||||||||||||
March 31, 2012
|
March 31, 2011
|
|||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
Balance
|
Interest
|
Rate
|
Balance
|
Interest
|
Rate
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans, net of unearned income*
|
$ | 234,570 | $ | 4,299 | 7.37 | % * | $ | 119,612 | $ | 1,789 | 6.06 | % * | ||||||||||||
Investment securities*
|
126,551 | 632 | 2.01 | % * | 75,267 | 419 | 2.26 | % * | ||||||||||||||||
Other interest income
|
62,580 | 44 | 0.28 | % | 15,339 | 10 | 0.26 | % | ||||||||||||||||
Total interest-earning assets / interest income
|
423,701 | 4,975 | 4.72 | % | 210,218 | 2,218 | 4.28 | % | ||||||||||||||||
Non-interest-earning assets:
|
||||||||||||||||||||||||
Allowance for loan losses
|
(3,415 | ) | (3,227 | ) | ||||||||||||||||||||
Cash and due from banks
|
2,155 | 1,426 | ||||||||||||||||||||||
Premises and equipment
|
15,787 | 3,208 | ||||||||||||||||||||||
Other assets
|
18,605 | 7,599 | ||||||||||||||||||||||
Total assets
|
$ | 456,833 | $ | 219,224 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Interest-bearing deposits:
|
||||||||||||||||||||||||
Interest-bearing demand accounts
|
$ | 27,177 | $ | 11 | 0.16 | % | $ | 11,211 | $ | 20 | 0.73 | % | ||||||||||||
Savings and Money Market deposit accounts
|
129,545 | 61 | 0.19 | % | 51,976 | 95 | 0.74 | % | ||||||||||||||||
Certificates of deposit
|
141,666 | 256 | 0.73 | % | 86,389 | 247 | 1.16 | % | ||||||||||||||||
Total interest-bearing deposits
|
298,388 | 328 | 0.44 | % | 149,576 | 362 | 0.98 | % | ||||||||||||||||
Other short-tems borrowings
|
- | - | - | 385 | 5 | 4.75 | % | |||||||||||||||||
Trust preferred securities
|
5,503 | 82 | 6.02 | % | 3,093 | 25 | 3.30 | % | ||||||||||||||||
Total borrowed funds
|
5,503 | 82 | 6.02 | % | 3,478 | 30 | 3.46 | % | ||||||||||||||||
Total interest-bearing liabilities / interest expense
|
303,891 | 410 | 0.54 | % | 153,054 | 392 | 1.04 | % | ||||||||||||||||
Non-interest-bearing liabilities:
|
||||||||||||||||||||||||
Non-interest-bearing deposits
|
107,889 | 26,604 | ||||||||||||||||||||||
Other liabilities
|
7,294 | 6,741 | ||||||||||||||||||||||
Total liabilities
|
419,074 | 186,399 | ||||||||||||||||||||||
Shareholders' equity
|
37,759 | 32,825 | ||||||||||||||||||||||
Total liabilities and shareholders' equity
|
$ | 456,833 | $ | 219,224 | ||||||||||||||||||||
Net interest-rate spread
|
4.18 | % | 3.24 | % | ||||||||||||||||||||
Impact of non-interest-bearing
|
||||||||||||||||||||||||
sources and other changes in
|
||||||||||||||||||||||||
balance sheet composition
|
0.15 | % | 0.28 | % | ||||||||||||||||||||
Net interest income / margin on earning assets
|
$ | 4,565 | 4.33 | % ** | $ | 1,826 | 3.52 | % ** |
*No taxable-equivalent adjustment has been made on municipal securities and loans because no tax benefits are currently being recognized by the Company. Loan accretion and loan fees (net of loan origination costs) included in loan interest income for the three-month periods ended March 31, 2012 and 2011, were $756 thousand and $1 thousand, respectively.
|
||||||||||||||||||||||||
** Net interest income as a % of earning assets
|
Consolidated Rate / Volume Variance Analysis
|
||||||||||||
(In thousands)
|
Three Months Ended March 31, 2012
|
|||||||||||
Compared to 2011
|
||||||||||||
Increase (Decrease)
|
||||||||||||
in interest income and expense
|
||||||||||||
due to changes in:
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
Interest-earning assets:
|
||||||||||||
Loans, net of unearned income
|
$ | 2,033 | $ | 477 | $ | 2,510 | ||||||
Investment securities
|
260 | (47 | ) | 213 | ||||||||
Other interest income
|
33 | 1 | 34 | |||||||||
Total increase in interest income
|
2,326 | 431 | 2,757 | |||||||||
Interest-bearing liabilities:
|
||||||||||||
Transaction accounts
|
14 | (23 | ) | (9 | ) | |||||||
Savings deposits
|
72 | (106 | ) | (34 | ) | |||||||
Certificates of deposit
|
121 | (112 | ) | 9 | ||||||||
Total interest-bearing deposits
|
207 | (241 | ) | (34 | ) | |||||||
Other short-term borrowings
|
(5 | ) | - | (5 | ) | |||||||
Trust preferred securities
|
27 | 30 | 57 | |||||||||
Total borrowed funds
|
22 | 30 | 52 | |||||||||
Total increase (decrease) in interest expense
|
229 | (211 | ) | 18 | ||||||||
Increase in net interest income
|
$ | 2,097 | $ | 642 | $ | 2,739 |
Non-Interest Income
|
||||||||||||||||
(In thousands)
|
For the Three Months Ended March 31,
|
|||||||||||||||
$ Amount
|
Change
|
|||||||||||||||
2012
|
2011
|
$ | % | |||||||||||||
Service charges on deposit accounts
|
$ | 207 | $ | 77 | $ | 130 | 169 | % | ||||||||
Gain on sale of loans
|
8 | 106 | (98 | ) | -92 | % | ||||||||||
Loan servicing fees, net of amortization
|
38 | 24 | 14 | 58 | % | |||||||||||
Gain on sale or call of available-for-sale securities
|
1 | - | 1 |
nm
|
||||||||||||
Net gains(losses) or writedowns of fixed assets or other real estate
|
(358 | ) | (47 | ) | (311 | ) |
nm
|
|||||||||
Change in fair value of warrant liability
|
30 | 552 | (522 | ) | -95 | % | ||||||||||
Other income and fees
|
112 | 112 | - | 0 | % | |||||||||||
Total non-interest income
|
$ | 38 | $ | 824 | $ | (786 | ) | -95 | % |
nm - not meaningful
|
Non-Interest Expense
|
||||||||||||||||
(In thousands)
|
For the Three Months Ended March 31,
|
|||||||||||||||
$ Amount
|
Change
|
|||||||||||||||
2012
|
2011
|
$ | % | |||||||||||||
Salaries and employee benefits
|
$ | 2,483 | $ | 1,315 | $ | 1,168 | 89 | % | ||||||||
Occupancy expenses
|
455 | 321 | 134 | 42 | % | |||||||||||
Furniture and equipment
|
179 | 114 | 65 | 57 | % | |||||||||||
Data processing
|
792 | 201 | 591 | 294 | % | |||||||||||
Professional fees
|
409 | 130 | 279 | 215 | % | |||||||||||
Marketing and business development
|
125 | 37 | 88 | 238 | % | |||||||||||
Office supplies and expenses
|
210 | 59 | 151 | 256 | % | |||||||||||
Insurance and regulatory assessments
|
153 | 145 | 8 | 6 | % | |||||||||||
Loan and lease expenses
|
64 | 37 | 27 | 73 | % | |||||||||||
Other real estate expenses
|
46 | 56 | (10 | ) | -18 | % | ||||||||||
Amortization of core deposit intangible asset
|
101 | - | 101 |
nm
|
||||||||||||
Other
|
192 | 150 | 42 | 28 | % | |||||||||||
Total non-interest expense
|
$ | 5,209 | $ | 2,565 | $ | 2,644 | 103 | % |
nm = not meaningful
|
|
·
|
An increase in salaries and benefits due to employees added with the Santa Lucia acquisition, as well as additional officers hired over the past year in preparation for planned growth,
|
|
·
|
Increased software and network management costs due to the integration of Santa Lucia Bank, including necessary system upgrades (included in data processing expenses in the table above),
|
|
·
|
Professional fees related to the Santa Lucia Bank acquisition, which totaled $112 thousand for the first quarter of 2012.
|
Balance Sheet Growth
|
||||||||||||||||||||||||||||||||||||||||
(dollars in thousands)
|
Increase(Decrease) From Previous Quarter End
|
|||||||||||||||||||||||||||||||||||||||
March 31, 2012
|
December 31, 2011
|
September 30, 2011
|
June 30, 2011
|
March 31, 2011
|
||||||||||||||||||||||||||||||||||||
$ | % | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||
Total Assets
|
$ | (5,110 | ) | -1.1 | % | $ | 227,535 | 97.0 | % | $ | 9,378 | 4.2 | % | $ | 7,650 | 3.5 | % | $ | (182 | ) | -0.1 | % | ||||||||||||||||||
Earning Assets
|
(1,782 | ) | -0.4 | % | 200,180 | 89.2 | % | 9,092 | 4.2 | % | 10,711 | 5.2 | % | (1,384 | ) | -0.7 | % | |||||||||||||||||||||||
Loans
|
(7,271 | ) | -3.1 | % | 114,015 | 95.6 | % | 2,991 | 2.6 | % | (1,516 | ) | -1.3 | % | (2,474 | ) | -2.1 | % | ||||||||||||||||||||||
Deposits
|
(5,294 | ) | -1.3 | % | 219,028 | 114.3 | % | 9,266 | 5.1 | % | 7,622 | 4.4 | % | 1,418 | 0.8 | % | ||||||||||||||||||||||||
Shareholders' Equity
|
4,701 | 16.5 | % | (4,573 | ) | -13.8 | % | (223 | ) | -0.7 | % | 512 | 1.6 | % | (169 | ) | -0.5 | % |
Loan Composition
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
March 31, 2012
|
December 31, 2011
|
|||||||||||||||
Type of Loan
|
Amount
|
Percentage
|
Amount
|
Percentage
|
||||||||||||
Construction and land development
|
$ | 18,087 | 8.0 | % | $ | 18,022 | 7.6 | % | ||||||||
Commercial real estate - owner-occupied
|
70,894 | 31.4 | % | 70,153 | 30.0 | % | ||||||||||
Commercial real estate - non-owner-occupied
|
60,302 | 26.7 | % | 64,382 | 27.6 | % | ||||||||||
Residential real estate
|
33,012 | 14.6 | % | 32,609 | 14.0 | % | ||||||||||
All other real estate loans
|
2,014 | 0.9 | % | 2,321 | 1.0 | % | ||||||||||
Commercial and industrial loans
|
26,019 | 11.5 | % | 30,176 | 12.9 | % | ||||||||||
Agricultural loans
|
9,524 | 4.2 | % | 9,272 | 4.0 | % | ||||||||||
Municipal loans
|
2,388 | 1.1 | % | 2,393 | 1.0 | % | ||||||||||
Leases, net of unearned income
|
1,835 | 0.8 | % | 2,323 | 1.0 | % | ||||||||||
Consumer loans
|
1,895 | 0.8 | % | 2,018 | 0.9 | % | ||||||||||
Total loans
|
$ | 225,970 | 100.0 | % | $ | 233,669 | 100.0 | % |
Non-Performing Assets*
|
||||||||||||
(in thousands)
|
March 31
|
December 31
|
March 31
|
|||||||||
2012
|
2011
|
2011
|
||||||||||
Loans in nonaccrual status:
|
||||||||||||
Nonaccrual loans held for investment
|
$ | 5,475 | $ | 6,557 | $ | 1,362 | ||||||
Nonaccrual loans held for sale**
|
2,774 | 1,997 | 7,151 | |||||||||
Loans past due 90 days or more and accruing
|
- | - | - | |||||||||
Restructured loans in accruing status
|
200 | - | 8 | |||||||||
Total nonperforming loans
|
8,449 | 8,554 | 8,521 | |||||||||
Foreclosed real estate
|
1,631 | 4,626 | 3,487 | |||||||||
Total nonperforming assets
|
$ | 10,080 | $ | 13,180 | $ | 12,008 | ||||||
Real estate held for possible future branch office
|
400 | 400 | 565 | |||||||||
Total nonperforming loans and other real estate owned
|
$ | 10,480 | $ | 13,580 | $ | 12,573 | ||||||
Allowance for loan and lease losses allocated to impaired loans
|
$ | 392 | $ | 81 | $ | 35 | ||||||
Allowance for loan and lease losses allocated to loans held for sale**
|
- | - | - | |||||||||
Allowance for loan and lease losses allocated to all other loans
|
3,170 | 3,245 | 3,210 | |||||||||
Total allowance for loan and lease losses
|
$ | 3,562 | $ | 3,326 | $ | 3,245 | ||||||
Asset quality ratios:
|
||||||||||||
Non-performing assets to total assets
|
2.21 | % | 2.85 | % | 5.52 | % | ||||||
Excluding loans held for sale**
|
1.62 | % | 2.44 | % | 2.37 | % | ||||||
Non-performing loans to total loans
|
3.74 | % | 3.67 | % | 7.24 | % | ||||||
Excluding loans held for sale**
|
2.58 | % | 2.86 | % | 1.30 | % | ||||||
Allowance for loan and lease losses to total loans
|
1.58 | % | 1.43 | % | 2.76 | % | ||||||
Excluding loans held for sale**
|
1.62 | % | 1.45 | % | 3.08 | % | ||||||
Allowance for loan and lease losses to total non-performing loans
|
42 | % | 39 | % | 38 | % | ||||||
Excluding non-performing loans held for sale**
|
63 | % | 51 | % | 237 | % |
* Table combines bank and non-bank subsidiaries
|
||||||||||||
** Loans held for sale consists of all loans held at Mission Asset Management, Inc. and SBA-guaranteed loans held for sale at Mission Community Bank. Loans held for sale are carried at fair value.
|
Other Real Estate Owned
|
||||
(dollars in thousands)
|
Three Months Ended
|
|||
March 31, 2012
|
||||
Balance of foreclosed real estate at beginning of year
|
$ | 4,626 | ||
Real estate held for possible future branch office
|
400 | |||
Total other real estate owned at beginning of year
|
$ | 5,026 | ||
Foreclosures during the period
|
- | |||
Additional investments in other real estate
|
- | |||
Sales of other real estate to related party
|
(2,637 | ) | ||
Writedowns on other real estate, net of gains on sale
|
(358 | ) | ||
Balance of other real estate owned at end of period
|
$ | 2,031 |
Allowance for Loan and Lease Losses
|
||||||||
(dollars in thousands)
|
Three Months Ended
|
|||||||
March 31,
|
||||||||
2012
|
2011
|
|||||||
Balance at beginning of period
|
$ | 3,326 | $ | 3,198 | ||||
Provision for loan losses
|
225 | - | ||||||
Loans charged off
|
(1 | ) | (8 | ) | ||||
Recoveries of previous charge-offs
|
12 | 55 | ||||||
Net (charge-offs) recoveries
|
11 | 47 | ||||||
Balance at end of period
|
$ | 3,562 | $ | 3,245 | ||||
Allowance for loan losses as a percentage of:
|
||||||||
Period end loans, including loan held for sale
|
1.58 | % | 2.76 | % | ||||
Period end loans, excluding loans held for sale*
|
1.67 | % | 3.08 | % | ||||
Total non-performing loans, including loans held for sale
|
42 | % | 38 | % | ||||
Non-performing loans, excluding loans held for sale*
|
63 | % | 237 | % | ||||
As a percentage of average loans (annualized):
|
||||||||
Net charge-offs (recoveries)
|
-0.02 | % | -0.16 | % | ||||
Provision for loan losses
|
0.39 | % | 0.00 | % | ||||
Total loans, including loans held for sale
|
$ | 225,970 | $ | 117,751 | ||||
Loans excluding loans held for sale
|
213,513 | 105,294 |
* Loans held for sale consists of all loans held at Mission Asset Management, Inc. and SBA-guaranteed loans held for sale at Mission Community Bank. 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, 2012:
|
||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets)
|
$ | 37,053 | 13.78 | % | $ | 26,887 | 10.0 | % | $ | 21,510 | 8.0 | % | ||||||||||||
Tier 1 Capital (to Risk-Weighted Assets)
|
$ | 33,685 | 12.53 | % | $ | 16,132 | 6.0 | % | $ | 10,755 | 4.0 | % | ||||||||||||
Tier 1 Capital (to Average Assets)
|
$ | 33,685 | 7.56 | % | $ | 22,284 | 5.0 | % | $ | 17,827 | 4.0 | % | ||||||||||||
As of December 31, 2011:
|
||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets)
|
$ | 36,437 | 13.25 | % | $ | 27,491 | 10.0 | % | $ | 21,992 | 8.0 | % | ||||||||||||
Tier 1 Capital (to Risk-Weighted Assets)
|
$ | 32,997 | 12.00 | % | $ | 16,494 | 6.0 | % | $ | 10,996 | 4.0 | % | ||||||||||||
Tier 1 Capital (to Average Assets)
|
$ | 32,997 | 8.19 | % | $ | 20,145 | 5.0 | % | $ | 16,116 | 4.0 | % |
Loan Commitments
|
||||||||||||
(in thousands)
|
March 31,
|
December 31,
|
March 31,
|
|||||||||
2012
|
2011
|
2011
|
||||||||||
Commitments to Extend Credit
|
$ | 38,193 | $ | 38,702 | $ | 18,761 | ||||||
Standby Letters of Credit
|
1,836 | 2,444 | 861 | |||||||||
$ | 40,029 | $ | 41,146 | $ | 19,622 |
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Item 3.
|
Defaults Upon Senior Securities
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
Exhibit #
|
|
2.1
|
Plan of Reorganization and Agreement of Merger dated as of October 4, 2000 (A)
|
3.1
|
Restated Articles of Incorporation (I)
|
3.2
|
Certificate of Amendment to Articles of Incorporation (L)
|
3.3
|
Certificate of Amendment to Articles of Incorporation (Y)
|
3.4
|
Amended and Restated Bylaws (DD)
|
4.1
|
Certificate of Determination for Series A Non-Voting Preferred Stock (B)
|
4.2
|
Certificate of Determination for Series B Non-Voting Preferred Stock (B)
|
4.3
|
Certificate of Determination for Series C Non-Voting Preferred Stock (D)
|
4.4
|
Indenture dated as of October 14, 2003 by and between Registrant and Wells Fargo Bank, National Association, as trustee (E)
|
4.5
|
Declaration of Trust of Mission Community Capital Trust I dated October 10, 2003 (E)
|
4.6
|
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)
|
4.7
|
Guarantee Agreement dated October 14, 2003 between Registrant, as Guarantor, and Wells Fargo Bank, National Association, as Guarantee Trustee (E)
|
4.8
|
Certificate of Determination for Series D Preferred Stock (R)
|
4.9
|
Form of Common Stock Purchase Warrant (Z)
|
4.10
|
Form of Warrant Agreement for warrants issued pursuant to subscription rights (AA)
|
4.11
|
Form of Warrant Issued to Replace Warrants Issued in 2010 Private Placement (EE)
|
4.12
|
Form of Warrant Issued to Replace Warrants Issued in 2011 Private Placement (EE)
|
4.13
|
Amended and Restated Declaration of Trust, dated as of April 28, 2006, of Santa Lucia Bancorp (CA) Capital Trust (FF)
|
4.14
|
Indenture dated as of April 28, 2006, between Wells Fargo Bank, National Association, as Trustee, and Santa Lucia Bancorp (FF)
|
4.15
|
First Supplemental Indenture dated as of October 21, 2011 between Wells Fargo Bank, National Association, as trustee, and Mission Community Bancorp (FF)
|
10.1
|
Purchase and Sale Agreement and Lease dated January, 1997, as amended (B)
|
10.2
|
Intentionally omitted
|
10.3
|
Lease Agreement – Paso Robles (B)
|
10.4
|
Lease Agreement – Arroyo Grande (B)
|
10.5
|
1998 Stock Option Plan, as amended (B)
|
10.6
|
Lease Agreement – 569 Higuera, San Luis Obispo (D)
|
10.7
|
Intentionally omitted
|
10.8
|
Lease Agreement – 3480 S. Higuera, San Luis Obispo (F)
|
10.9
|
Salary Protection Agreement — Mr. Pigeon (G)
|
10.10
|
Intentionally omitted
|
Exhibit #
|
|
10.11
|
Employment Agreement dated June 3, 2007 between Brooks Wise and Mission Community Bank (J)
|
10.12
|
Financial Advisory Services Agreement dated January 4, 2007 between the Company and Seapower Carpenter Capital, Inc. (K)
|
10.13
|
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)
|
10.14
|
Lease Agreement – 1670 South Broadway, Santa Maria (O)
|
10.15
|
Mission Community Bancorp 2008 Stock Incentive Plan (P)
|
10.16
|
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)
|
10.17
|
Amendment No. 1 to Employment Agreement dated December 29, 2008 by and among Mission Community Bancorp, Mission Community Bank, and Brooks W. Wise (Q)
|
10.18
|
Amended and Restated Salary Protection Agreement dated December 29, 2008 by and between Mission Community Bank and Ronald B. Pigeon (Q)
|
10.19
|
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)
|
10.20
|
Side Letter Agreement dated January 9, 2009 amending the Stock Purchase Agreement between Mission Community Bancorp and the Department of the Treasury (R)
|
10.21
|
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)
|
10.22
|
Side Letter Agreement dated January 9, 2009 between Mission Community Bancorp and The Department of the Treasury regarding CDFI status (R)
|
10.23
|
Securities Purchase Agreement dated December 22, 2009 between the Company and Carpenter Fund Manager GP, LLC (“Securities Purchase Agreement”) (U)
|
10.24
|
Amendment No. 1 to Securities Purchase Agreement dated March 17, 2010 (V)
|
10.25
|
Amendment No. 2 to Employment Agreement of Brooks Wise dated March 22, 2010 (W)
|
10.26
|
Amendment No. 2 to Securities Purchase Agreement dated March 17, 2010 (X)
|
10.27
|
Employment Agreement dated July 1, 2010 between James W. Lokey and Mission Community Bancorp (Y)
|
10.28
|
Agreement and Plan of Merger dated as of June 24, 2011 by and among Carpenter Fund Manager GP, LLC; Mission Community Bancorp; Mission Community Bank; Santa Lucia Bancorp and Santa Lucia Bank (BB)
|
10.29
|
2011 Equity Incentive Plan (CC)
|
31.1
|
Certification of CEO pursuant to Section 302 of Sarbanes Oxley Act
|
31.2
|
Certification of CFO pursuant to Section 302 of Sarbanes Oxley Act
|
32.1
|
Certification of CEO pursuant to Section 906 of Sarbanes Oxley Act
|
32.2
|
Certification of CFO pursuant to Section 906 of Sarbanes Oxley Act
|
101
|
Interactive Data Files
|
(A)
|
Included in the Company’s Form 8-K filed on December 18, 2000, and incorporated by reference herein.
|
(B)
|
Included in the Company’s Form 10-KSB filed on April 2, 2001, and incorporated by reference herein.
|
(C)
|
Included in the Company’s Form 10-QSB filed August 12, 2002, and incorporated by reference herein.
|
(D)
|
Included in the Company’s Form 10-QSB filed on November 12, 2002, and incorporated by reference herein.
|
(E)
|
Included in the Company’s Form 8-K filed on October 21, 2003, and incorporated by reference herein.
|
(F)
|
Included in the Company’s Form 10-QSB filed on August 10, 2004, and incorporated by reference herein.
|
(G)
|
Included in the Company’s Form 8-K filed on January 19, 2005, and incorporated by reference herein.
|
(H)
|
Intentionally omitted
|
(I)
|
Included in the Company’s Form 10-QSB filed on August 14, 2006, and incorporated by reference herein.
|
(J)
|
Included in the Company’s Form 8-K filed on June 13, 2007, and incorporated by reference herein.
|
(K)
|
Included in the Form SB-2 Registration Statement of the Company filed on June 13, 2007, and incorporated by reference herein.
|
(L)
|
Included in Pre-Effective Amendment No. 1 to the Form SB-2 Registration Statement of the Company filed on July 24, 2007, and incorporated by reference herein.
|
(M)
|
Included in the Company’s Form 8-K filed on August 14, 2007, and incorporated by reference herein.
|
(N)
|
Included in the Company’s Form 8-K filed on October 23, 2007, and incorporated by reference herein.
|
(O)
|
Included in the Company’s Form 10-KSB filed on March 28, 2008, and incorporated by reference herein.
|
(P)
|
Included in the Company’s Form 10-Q filed on May 15, 2008, and incorporated by reference herein.
|
(Q)
|
Included in the Company’s Form 8-K filed on December 30, 2008, and incorporated by reference herein.
|
(R)
|
Included in the Company’s Form 8-K filed on January 14, 2009, and incorporated by reference herein.
|
(S)
|
Included in the Company’s Form 10-Q filed on August 14, 2009, and incorporated by reference herein.
|
(T)
|
Included in the Company’s Form 10-K filed on March 16, 2009, and incorporated by reference herein.
|
(U)
|
Included in the Company’s From 8-K filed on December 24, 2009, and incorporated by reference herein.
|
(V)
|
Included in the Company’s Form 8-K filed on March 22, 2010, and incorporated by reference herein.
|
(W)
|
Included in the Company’s Form 8-K filed on March 26, 2010, and incorporated by reference herein.
|
(X)
|
Included in the Company’s Form 8-K filed on June 1, 2010, and incorporated by reference herein.
|
(Y)
|
Included in the Company’s Form 8-K filed on August 2, 2010, and incorporated by reference herein.
|
(Z)
|
Included in the Company’s Form S-1 Registration Statement filed on August 31, 2010, and incorporated by reference herein.
|
(AA)
|
Included in Amendment No. 1 to the Company’s Form S-1 Registration Statement filed on October 1, 2010, and incorporated by reference herein.
|
(BB)
|
Included in the Company’s Form 8-K filed on June 27, 2011, and incorporated by reference herein.
|
(CC)
|
Included in the Company’s Form 8-K filed on September 30, 2011, and incorporated by reference herein.
|
(DD)
|
Included in the Company's Form 8-K filed on March 29, 2012, and incorporated herein by reference.
|
(EE)
|
Included in the Company's Form 8-K on filed on March 26, 2012, and incorporated herein by reference.
|
(FF)
|
Included in the Company's Form 8-K filed on October 27, 2012, and incorporated herein by reference.
|
(1)
|
I have reviewed this Form 10-Q of Mission Community Bancorp;
|
(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;
|
(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;
|
(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
|
|
(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
|
(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.
|
/s/ James W. Lokey | |||
Chairman and Chief Executive Officer |
(1)
|
I have reviewed this Form 10-Q of Mission Community Bancorp;
|
(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;
|
(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;
|
(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
|
|
(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
|
(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.
|
/s/ Mark R. Ruh | |||
Executive Vice President and Chief Financial Officer |
1.
|
This Form 10-Q for the period ended March 31, 2012, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in this Form 10-Q for the period ended March 31, 2012, fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
By:
|
/s/ James W. Lokey | |
James W. Lokey
|
|||
Chairman and Chief Executive Officer
|
|
1.
|
This Form 10-Q for the period ended March 31, 2012, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
2.
|
The information contained in this Form 10-Q for the period ended March 31, 2012, fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
By:
|
/s/ Mark R. Ruh | |
Mark R. Ruh
|
|||
Executive Vice President
|
|||
and Chief Financial Officer
|
Note 2 - Stock Based Compensation Plans
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] |
Note
2 – Stock Based Compensation Plans
The
Company has a stock option plan, adopted in 1998, which is
more fully described in Note J to the consolidated financial
statements in the Company’s Annual Report on Form
10-K. The 1998 Stock Option Plan has been
terminated with respect to the granting of future options
under the Plan. In 2008 the Company adopted the
Mission Community Bancorp 2008 Stock Incentive Plan, which
provides for the grant of various equity awards, including
stock options.
On
September 27, 2011 the Board of Directors of the Company
approved and adopted the Mission Community Bancorp 2011
Equity Incentive Plan (the “2011
Plan”). The 2011 Plan has also been approved
by the Company’s shareholders. The 2011 Plan
provides for the issuance of both “incentive” and
“nonqualified” stock options, restricted stock
awards, stock appreciation rights and stock
awards. Awards under the 2011 Plan may be made to
salaried officers and employees of the Company and its
affiliates, to non-employee directors of the Company and its
affiliates, and to consultants providing services to the
Company and its affiliates. Awards under the 2011
Plan may be granted on such terms and conditions as are
established by the Board of Directors or an authorized
Committee of the Board of Directors in its
discretion. Awards may be granted as
performance-based compensation under section 162(m) of the
Internal Revenue Code.
The
Company determines the fair value of options granted on the
date of grant using a Black-Scholes-Merton option pricing
model, which uses assumptions based on expected option life,
expected stock volatility and the risk-free interest rate.
The expected volatility assumptions used by the Company are
based on the historical volatility of the Company’s
common stock over the most recent period commensurate with
the estimated expected life of the Company’s stock
options. The Company bases its expected life assumption on
its historical experience and on the terms and conditions of
the stock options it grants to employees. The risk-free rate
is based on the U.S. Treasury yield curve for the periods
within the contractual life of the options in effect at the
time of the grant. The Company also makes assumptions
regarding estimated forfeitures that will impact the total
compensation expenses recognized.
No
options were granted in the three months ended March 31,
2012. The fair values of options granted in the
three months ended March 31, 2011, were estimated on the date
of grant using the following assumptions:
During
the three-month periods ended March 31, 2012 and 2011, the
Company recognized pre-tax stock-based compensation expense
of $37,000 and $34,000, respectively. As of March
31, 2012, the Company has unvested options outstanding with
unrecognized compensation expense totaling $269,000, which is
scheduled to be recognized as follows (in thousands):
No
options outstanding were “in the money” as of
March 31, 2012.
The
following table summarizes information about stock option
activity for the three months ended March 31,
2012:
|