TEMECULA, Calif., July 9, 2004 (PRIMEZONE) -- Mission Oaks National Bank (OTCBB:MKNB) reported record earnings of $404,000, or 21 cents a share, in the second quarter ended June 30.
That was up 46.4 percent from $276,000, or 18 cents a share, the Temecula-based community bank earned in the same period a year ago. Results from the second quarter of 2003 included 393,250 fewer average outstanding shares of common stock and $101,000 in tax credits resulting from a net operating loss carryforward.
Earnings before taxes in the quarter were $666,000, up 122.7 percent from $299,000 from the same period a year earlier.
Annualized return on average assets (ROA), a ratio of profit to assets, reached 1.65 percent in the second quarter. Annualized return on average shareholders' equity (ROE), a ratio of profit to equity, reached nearly 16 percent.
More than 400 similarly sized U.S. banks reported an average ROA and ROE of 1.01 percent and 9.93 percent, respectively, according to a Federal Deposit Insurance Corp. survey as of March 31, 2004.
"Our strong financial performance in the quarter can be attributed to a strong volume of SBA related and commercial real estate mortgage business," said Gary Votapka, Mission Oaks president and chief executive. "Better than expected results in the first six months of 2004 should set the stage for a strong second half of the year and allow us to build for the future."
Other key financial highlights in the 2004 quarter compared to the same 2003 quarter include:
Total assets increased $25 million, or 33.4 percent, to a record $100 million.
Net loans increased $16.4 million, or 32.1 percent, to a record $67.4 million.
Total deposits increased by $17.8 million, or 26.5 percent, to an all-time high of $84.6 million.
Interest income increased $332,000, or 32.8 percent, to $1.3 million.
Non-interest income from the sale of loans, fees and mortgage originations grew $279,000, or 61.6 percent, to $732,000.
For the six months ended June 30, Mission Oaks earned a record $690,000, or 36 cents a share, compared with earnings of $502,000, or 33 cents a share, in the same period a year ago. Results from a year ago were based on 392,803 fewer outstanding shares of common stock.
Mission Oaks National Bank is an award-winning, community-based, federally chartered bank that is committed to serving consumers and businesses in Southern California. The bank offers personalized services and products through two full-service branch offices and loan production offices in San Diego and Phoenix. Mission Oaks plans to open a third branch in the Ontario/Rancho Cucamonga area early next year.
The bank was recently named a Super Premier Performing Bank for 2003 by Findley Reports, a leading California banking industry analyst and consulting firm.
Super Premier is the highest rating a bank can receive from Findley. It is based on growth, income, loan quality and return on equity among other criteria. Mission Oaks was the youngest of six banks headquartered in Riverside County to receive the designation from Findley Reports.
For more on Mission Oaks National Bank visit its Web site at www.missionoaksbank.com.
Safe Harbor
Certain statements in this press release, including statements regarding the anticipated development and expansion of the Bank's business, and the intent, belief or current expectations of the Bank, its directors or its officers, are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, risks related to the local and national economy, the Bank's performance, regulatory matters and those discussed in filings by the Bank with the Office of the Comptroller of the Currency.
MISSION OAKS NATIONAL BANK
SECOND QUARTER REPORT / JUNE 30, 2004
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BALANCE SHEET
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(all amounts in whole dollars except share and per share information)
June 30, June 30, Increase Increase
2004 2003 (Decrease) (Decrease)
----------- ----------- ----------- -----------
ASSETS
Cash and due from
banks $ 1,900,000 $ 2,489,000 ($589,000) -23.7%
Due from banks --
time 693,000 496,000 197,000 39.7%
Federal funds
sold 5,915,000 3,370,000 2,545,000 75.5%
Securities --
available for
sale 18,261,000 15,620,000 2,641,000 16.9%
Loans 68,331,000 51,665,000 16,666,000 32.3%
Less allowance
for loan losses (941,000) (640,000) (301,000) 47.0%
----------- ----------- -----------
Loans, net 67,390,000 51,025,000 16,365,000 32.1%
Premises and
equipment, net 564,000 649,000 (85,000) -13.1%
SBA -- Loan
servicing asset/
Interest only
strips 860,000 147,000 713,000 485.0%
Cash surrender of
life insurance 2,568,000 0 2,568,000
Other assets 1,832,000 1,166,000 666,000 57.1%
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$99,983,000 $74,962,000 $25,021,000 33.4%
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LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits $23,150,000 $16,150,000 $ 7,000,000 43.3%
Interest bearing
deposits 61,498,000 50,746,000 10,752,000 21.2%
Federal funds
purchased and
other borrowings 4,000,000 0 4,000,000
Other liabilities 950,000 596,000 354,000 59.4%
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Total
liabilities 89,598,000 67,492,000 22,106,000 32.8%
Total stockholders'
equity 10,385,000 7,323,000 3,062,000 41.8%
----------- ----------- -----------
$99,983,000 $74,815,000 $25,168,000 33.6%
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STATEMENT OF INCOME
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3 Mos ended 3 Mos ended 6 Mos ended 6 Mos ended
June 30, June 30, June 30, June 30,
2004 2003 2004 2003
----------- ----------- ----------- -----------
Interest income $ 1,345,000 $ 1,013,000 $ 2,604,000 $ 1,923,000
Interest expense 240,000 228,000 443,000 435,000
----------- ----------- ----------- -----------
Net interest income 1,105,000 785,000 2,161,000 1,488,000
Provision for loan
losses 40,000 75,000 100,000 145,000
----------- ----------- ----------- -----------
Net interest income
after provision for
loan losses 1,065,000 710,000 2,061,000 1,343,000
Other income 732,000 453,000 1,319,000 788,000
Other expense 1,131,000 864,000 2,248,000 1,642,000
----------- ----------- ----------- -----------
Earnings before
income taxes 666,000 299,000 1,132,000 489,000
Income taxes
(benefit) 262,000 23,000 442,000 (13,000)
----------- ----------- ----------- -----------
Net earnings $ 404,000 $ 276,000 $ 690,000 $ 502,000
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Average common
shares outstanding 1,920,192 1,526,942 1,919,745 1,526,942
Basic earnings per
share $ 0.21 $ 0.18 $ 0.36 $ 0.33
Return on average
assets (annualized) 1.65% 1.53% 1.45% 1.49%
Return on average
equity (annualized) 15.96% 15.42% 13.84% 14.40%
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SELECTED RATIOS
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June 30, June 30,
2004 2003
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Leveraged capital ratio 10.62% 10.09%
Total risk based capital ratio 15.11% 15.05%
Allowance for loan losses as a percent
of total loans 1.36% 1.23%
Nonperforming assets as a percent of
total assets 0.00% 0.00%
Loan to deposit ratio 81.81% 77.62%