TEMECULA, Calif., Jan. 20, 2006 (PRIMEZONE) -- Mission Oaks Bancorp (OTCBB:MOKB), which has offered personalized banking services to customers in Inland Southern California since 2000, reported record results in 2005 as assets surpassed the $150 million mark.
Mission Oaks Bancorp, whose principal subsidiary is Temecula-based Mission Oaks National Bank, said it earned a record $2 million, or 52 cents a share, in 2005, up from the $1.6 million, or 42 cents a share, posted a year earlier. Per share amounts were adjusted to account for a two-for-one stock split that was effective Sept. 1, 2005.
Assets at year-end reached an all-time high of $151.2 million, an increase of $35.5 million, or 30.7 percent, from a year ago.
"Overall it was a very gratifying year for us," said Gary Votapka, Mission Oaks Bancorp president and chief executive. "Not only did we post record earnings, but did it while we added a third branch, formed a bank holding company and paid out a 2-for-1 stock split to our shareholders."
The banks efficiency ratio - a comparison of operating expenses and income - fell to 60 percent at year-end. The ratio measures how efficiently the bank manages expenses and enhances profitability. The lower the number, the greater the efficiency. A year earlier Mission Oak's efficiency ratio stood at 62 percent.
During the year Mission Oaks National Bank became a wholly owned subsidiary of Mission Oaks Bancorp. The bank holding company structure makes it easier for Mission Oaks to raise additional capital, repurchase its own stock, borrow money, acquire other banks and non-bank entities and issue stock.
For the year, interest income reached a record $8.4 million, up from $5.7 million a year earlier. Net loans increased nearly $10 million, or 12.1 percent, to a record $91.9 million. Total deposits increased by $36.4 million, or 37.86 percent, to a record $132.5 million.
Annualized return on average assets (ROA), a ratio of profit to assets, reached 1.51 percent at yearend. Annualized return on average shareholders' equity (ROE), a ratio of profit to equity, was 16.21 percent for the 12 months ended Dec. 31, 2005, up from 15.37 percent a year earlier.
More than 750 similarly sized U.S. banks reported an average ROA and ROE of 1.14 percent and 12.23 percent, respectively, according to a Federal Deposit Insurance Corp. survey as of September 30, 2005.
In the fourth quarter of 2005, Mission Oaks Bancorp earned $637,000, or 16 cents a share, compared with earnings of $589,000, or 15 cents a share, reported in the same period a year ago.
Mission Oaks National Bank is a federally chartered community bank that is committed to serving consumers and businesses in Southern California. The bank offers personalized services and products through three full-service branch offices in Temecula and Ontario and loan production offices in San Diego and Phoenix.
Mission Oaks Bancorp common stock is traded over the counter under the stock symbol MOKB.OB.
For more on Mission Oaks National Bank visit its Web site at 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.
The Mission Oaks National Bank company logo is available at http://media.primezone.com/prs/single/?pkgid=471
MISSION OAKS BANCORP
FOURTH QUARTER REPORT / DECEMBER 31, 2005
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BALANCE SHEET
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(all amounts in whole dollars except share and per share information)
December 31, Increase Increase
2005 2004 (Decrease) (Decrease)
------------- ------------ ---------- ----------
ASSETS
Cash and
due from
banks $ 3,223,000 $ 1,425,000 $ 1,798,000 126.2%
Certificates
of deposit
in other
banks 5,832,000 1,089,000 4,743,000 435.5%
Federal
funds sold 11,750,000 2,120,000 9,630,000 454.2%
Investment
securities -
available
for sale 31,257,000 22,882,000 8,375,000 36.6%
Loans 93,092,000 83,013,000 10,079,000 12.1%
Less allowance
for loan
losses (1,190,000) (1,050,000) (140,000) 13.3%
------------- ------------ ----------
Loans, net 91,902,000 81,963,000 9,939,000 12.1%
Premises and
equipment, net 863,000 536,000 327,000 61.0%
SBA-Loan
servicing asset/
interest only
strips 885,000 891,000 (6,000) -0.7%
Cash surrender
value of life
insurance 2,729,000 2,625,000 104,000 4.0%
Other assets 2,761,000 2,126,000 635,000 29.9%
------------- ------------ ----------
$151,202,000 $115,657,000 $35,545,000 30.7%
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LIABILITIES AND SHAREHOLDERS' EQUITY
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Demand
deposits $ 45,069,000 $ 32,748,000 $12,321,000 37.6%
Interest
bearing
deposits 87,397,000 63,342,000 24,055,000 38.0%
Borrowings 4,025,000 7,000,000 (2,975,000) -42.5%
Other
liabilities 1,186,000 1,050,000 136,000 13.0%
------------- ------------ ----------
Total
liabilities 137,677,000 104,140,000 33,537,000 32.2%
Total shareholders'
equity 13,525,000 11,517,000 2,008,000 17.4%
------------- ------------ ----------
$151,202,000 $115,657,000 $35,545,000 30.7%
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STATEMENT OF INCOME
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3 Mos ended 12 Mos ended
December 31, December 31,
------------------------ ------------------------
2005 2004 2005 2004
---------- ---------- ----------- -----------
Interest
income $2,368,000 $1,672,000 $ 8,434,000 $ 5,708,000
Interest
expense 524,000 292,000 1,725,000 1,007,000
---------- ---------- ----------- -----------
Net interest
income 1,844,000 1,380,000 6,709,000 4,701,000
Provision
for loan
losses 82,000 103,000 286,000 213,000
---------- ---------- ----------- -----------
Net interest
income after
provision for
loan losses 1,762,000 1,277,000 6,423,000 4,488,000
Noninterest
income 741,000 958,000 2,573,000 2,781,000
Noninterest
expense 1,452,000 1,249,000 5,653,000 4,623,000
---------- ---------- ----------- -----------
Income before
income taxes 1,051,000 986,000 3,343,000 2,646,000
Provision
for income
taxes 414,000 397,000 1,328,000 1,043,000
---------- ---------- ----------- -----------
Net income $ 637,000 $ 589,000 $ 2,015,000 $ 1,603,000
========== ========== =========== ===========
Average common shares
outstanding 3,919,403 3,860,262(a) 3,904,947 3,849,180(a)
Net income per
share-basic $0.16 $0.15(a) $ 0.52 $0.42(a)
Return on
average assets
(annualized) 1.71% 2.03% 1.51% 1.54%
Return on
average equity
(annualized) 19.35% 21.13% 16.21% 15.37%
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SELECTED RATIOS
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December 31,
2005 2004
------ ------
Leveraged capital ratio 9.27% 9.98%
Total risk based capital
ratio 13.84% 14.17%
Allowance for loan losses
as a percent of total loans 1.26% 1.25%
Nonperforming assets as a
percent of total assets 1.07% 0.12%
Loan to deposit ratio 71.08% 87.38%
(a) Adjusted for September 1, 2005 two-for-one stock split