(mark one)

x  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2002

o  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)  OF THE SECURITIES
EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM _______________TO _______________

California

33-0937517

(State of Incorporation)

(IRS Employer Identification No)

86 North Main Street, Porterville, California  93257

(Address of principal executive offices)                   (Zip Code)

(559)            782-4900

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Page

Part I -

- Financial Information

3

Item 1.

Financial Statements (Unaudited)

3

Consolidated Balance Sheets

3

Consolidated Statements of Income & Comprehensive Income

4

Consolidated Statements of Cash Flows

5

Notes to Unaudited Consolidated Financial Statements

6

Item 2.

Management’s Discussion & Analysis of Financial Condition & Results of Operations

9

Summary of Financial Data

9

Earnings Performance

11

Net Interest Income

11

Non-interest Income/Expense

16

Balance Sheet Analysis

19

Earning Assets

19

Investment Portfolio

19

Loan Portfolio

20

Non-accrual and Restructured Loans and Other Assets

21

Allowance for Loan Losses

22

Deposits and Interest Bearing Liabilities

24

Deposits

24

Fed Funds Purchased & Securities Sold Under Agreements to Repurchase

25

Non-Interest Bearing Liabilities

25

Liquidity and Market Risk Management

25

Capital Resources

27

Item 3.

Qualitative & Quantitative Disclosures About Market Risk

28

Forward-Looking Statements

28

Part II - Other Information

29

Item 1. -

Legal Proceedings

29

Item 2. -

Changes in Securities

29

Item 3. -

Defaults upon Senior Securities

29

Item 4. -

Submission of Matters to a vote of Security Holders

29

Item 5. -

Other Information

29

Item 6. -

Exhibits and Reports on Form 8-K

29

Signatures

30

ASSETS

June 30, 2002

December 31, 2001

Cash and due from banks

$

37,923

$

40,025

Federal funds sold

$

12,500

$

-

Total Cash & Cash Equivalents

$

50,423

$

40,025

Investment securities available for sale

$

89,143

$

92,689

Loans:

Gross loans

$

504,143

$

486,601

Allowance for loan losses

$

(5,800

)

$

(5,675

)

Deferred loan fees

$

(862

)

$

(533

)

Net Loans

$

497,481

$

480,393

Other equity securities

$

1,804

$

2,422

Premises and equipment, net

$

14,932

$

14,304

Other real estate owned

$

1,388

$

769

Accrued interest receivable

$

3,492

$

3,766

Other assets

$

19,267

$

16,042

TOTAL ASSETS

$

677,930

$

650,410

LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES

Deposits:

Demand

$

147,014

$

142,884

Interest bearing demand

$

49,464

$

49,455

Savings

$

34,503

$

31,128

MMDA's

$

109,544

$

93,928

TDOA's, IRA's & KEOGH'S

$

18,704

$

21,185

Time deposits < $100,000

$

95,477

$

106,188

Time deposits > $100,000

$

119,797

$

76,549

Total Deposits

$

574,503

$

521,317

Repurchase agreements

$

30,193

$

22,253

Other borrowed funds

$

40

$

38,530

Accrued interest payable

$

720

$

442

Other liabilities

$

7,411

$

6,727

Company obligated manditorily redeemable cumulative trust preferred security of subsidiary trust holding solely junior subordinated debentures

$

15,000

$

15,000

TOTAL LIABILITIES

$

627,867

$

604,269

SHAREHOLDERS' EQUITY

Common stock, no par value; 24,000,000 shares authorized; 9,260,280 and 9,212,280 shares issued and outstanding at 6/30/02 and 12/31/01 respectively.

$

2,645

$

2,285

Retained earnings

$

45,803

$

42,651

Accumulated other comprehensive income

$

1,615

$

1,205

Total shareholders' equity

$

50,063

$

46,141

TOTAL LIABILITIES AND

SHAREHOLDERS' EQUITY

$

677,930

$

650,410

For the Three-Month Period
Ended June 30,

For the Six-Month Period
Ended June 30,

INTEREST INCOME:

2002

2001

2002

2001

Federal funds sold and interest bearing deposits

$

86

$

211

$

113

$

264

US Treasury securities

$

14

$

65

$

28

$

238

US Government agencies

$

251

$

530

$

543

$

1,157

State and political subdivsions

$

482

$

510

$

970

$

1,029

Mortgage-backed securities

$

261

$

202

$

527

$

342

Corporate Bonds

$

79

$

132

$

167

$

256

Equities

$

60

$

27

$

82

$

56

Loans, including fee income

$

9,297

$

9,280

$

18,484

$

19,044

Total interest income

$

10,530

$

10,957

$

20,914

$

22,386

INTEREST EXPENSE:

Interest on deposits

$

1,995

$

4,383

$

4,020

$

9,278

Interest on borrowed funds

$

334

$

130

$

716

$

309

Total interest expense

$

2,329

$

4,513

$

4,736

$

9,587

Net Interest Income

$

8,201

$

6,444

$

16,178

$

12,799

Provision for loan losses

$

950

$

200

$

1,550

$

600

Net Interest Income after Provision for Loan Losses

$

7,251

$

6,244

$

14,628

$

12,199

OTHER OPERATING INCOME:

Service charges on deposit accounts

$

1,360

$

1,200

$

2,555

$

2,302

Gains on sales of loans

$

97

$

286

$

520

$

439

Gain on investments

$

238

$

294

$

145

$

328

Other

$

494

$

1,034

$

1,077

$

1,868

Total other operating income

$

2,189

$

2,814

$

4,297

$

4,937

OTHER OPERATING EXPENSES:

Salaries and employee benefits

$

2,702

$

3,137

$

5,420

$

5,933

Occupancy expense

$

1,014

$

998

$

2,011

$

2,078

Other

$

2,448

$

2,430

$

4,861

$

4,898

Total other operating expenses

$

6,164

$

6,565

$

12,292

$

12,909

INCOME BEFORE PROVISION FOR INCOME TAXES

$

3,276

$

2,493

$

6,633

$

4,227

Provision for income taxes

$

1,015

$

897

$

2,189

$

1,522

NET INCOME

$

2,261

$

1,596

$

4,444

$

2,705

Other comprehensive income, unrealized gain on securities, net of