TEMECULA, Calif., Oct. 12, 2004 (PRIMEZONE) -- Mission Oaks National Bank (OTCBB:MKNB) reported record results in the third quarter ended Sept. 30 as assets climbed to more than $107 million.
For the quarter, the Temecula-based community bank earned $324,000, 17 cents a share, up 35 percent from the $240,000, or 15 cents a share, reported in the same period a year ago. Results from the third quarter of 2003 included 335,390 fewer average outstanding shares of common stock.
"We are pleased with third quarter results after such a strong performance in the second quarter," said Gary Votapka, Mission Oaks president and chief executive. "Loan quality is good, assets and deposits are growing as the bank continues to benefit from a strong local economy."
In the first nine months of 2004, Mission Oaks earned $1,014,000, or 53 cents a share, an increase of 36.8 percent from earnings of $741,000, or 48 cents a share, reported in the same period a year ago.
Nine-month earnings for 2004 nearly matched the earnings for all of 2003. Pre-tax results in the first three quarters of 2004 reached $1,660,000, nearly double the $897,000 reported for the same period a year ago. Results from 2003 included 374,177 fewer average outstanding shares of common stock.
Assets at quarter's end reached a record $107.8 million, up $27.2 million, or 33.7 percent, from a year ago.
Net loans increased $17.5 million, or 31.1 percent, to a record $73.7 million. Total deposits increased by $20.6 million, or 28.8 percent, to a record $92.1 million.
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 next year.
The bank was designated a Super Premier Performing Bank for 2003 by Findley Reports, a leading California banking industry analyst and consulting firm.
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
THIRD QUARTER REPORT / SEPTEMBER 30, 2004
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BALANCE SHEET
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(all amounts in whole dollars except share and per share information)
September 30, Increase
2004 2003 (Decrease)
------------ ----------- --------------------
ASSETS
Cash and due
from banks $ 3,120,000 $ 2,932,000 $ 188,000 6.4%
Due from banks
- time 1,089,000 496,000 593,000 119.6%
Federal funds sold 2,460,000 1,385,000 1,075,000 77.6%
Securities -
available for sale 21,468,000 17,563,000 3,905,000 22.2%
Loans 74,652,000 56,931,000 17,721,000 31.1%
Less allowance for
loan losses (951,000) (715,000) (236,000) 33.0%
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Loans, net 73,701,000 56,216,000 17,485,000 31.1%
Premises and
equipment, net 555,000 624,000 (69,000) -11.1%
SBA-Loan servicing
asset/interest
only strips 881,000 326,000 555,000 170.2%
Cash surrender
value of life
insurance 2,597,000 0 2,597,000
Other assets 1,946,000 1,079,000 867,000 80.4%
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$107,817,000 $80,621,000 $27,196,000 33.7%
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LIABILITIES AND
STOCKHOLDERS' EQUITY
Demand deposits $ 24,325,000 $20,056,000 $ 4,269,000 21.3%
Interest bearing
deposits 67,770,000 51,434,000 16,336,000 31.8%
Federal funds
purchased and
other borrowings 4,000,000 0 4,000,000
Other liabilities 909,000 729,000 180,000 24.7%
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Total liabilities 97,004,000 72,219,000 24,785,000 34.3%
Total stockholders'
equity 10,813,000 8,402,000 2,411,000 28.7%
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$107,817,000 $80,621,000 $27,196,000 33.7%
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STATEMENT OF INCOME
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3 Mos ended Sept. 30, 9 Mos ended Sept. 30,
2004 2003 2004 2003
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Interest income $1,432,000 $1,075,000 $4,036,000 $2,998,000
Interest expense 272,000 210,000 715,000 645,000
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Net interest income 1,160,000 865,000 3,321,000 2,353,000
Provision for loan
losses 10,000 75,000 110,000 220,000
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Net interest income
after provision
for loan losses 1,150,000 790,000 3,211,000 2,133,000
Other income 504,000 543,000 1,823,000 1,331,000
Other expense 1,127,000 925,000 3,374,000 2,567,000
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Earnings before
income taxes 527,000 408,000 1,660,000 897,000
Income taxes 203,000 168,000 646,000 156,000
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Net income $ 324,000 $ 240,000 $1,014,000 $ 741,000
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Average common
shares outstanding 1,925,930 1,590,540 1,922,319 1,548,142
Basic income
per share $ 0.17 $ 0.15 $ 0.53 $ 0.48
Return on average
assets (annualized) 1.25% 1.17% 1.38% 1.38%
Return on average
equity (annualized) 12.20% 11.53% 13.27% 13.67%
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SELECTED RATIOS
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September 30,
2004 2003
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Leveraged capital ratio 10.43% 10.70%
Total risk based capital ratio 14.45% 16.01%
Allowance for loan losses as a
percent of total loans 1.27% 1.25%
Nonperforming assets as a percent
of total assets 0.12% 0.18%
Loan to deposit ratio 81.17% 80.17%