TEMECULA, Calif., April 11, 2006 (PRIMEZONE) -- Mission Oaks Bancorp (OTCBB:MOKB) reported earnings increased 88 percent in the first quarter of 2006 to record levels.
Mission Oaks Bancorp, whose principal subsidiary is Temecula-based Mission Oaks National Bank, said it earned a record $788,000, or 20 cents a share, in the first three months of 2006, up from $419,000, or 11 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.
Results included the sale of $4 million in Small Business Administration and SBA-related loans that contributed $587,000 to non-interest income. The sale included $3 million of the unguaranteed portion of SBA 7(a) loans.
"We started 2006 on a very positive note," said Gary Votapka, Mission Oaks Bancorp president and chief executive. "Not only did we realize a gain on sale from the SBA loans, but reduced the risk in our loan portfolio."
Assets as of March 31, 2006 reached $144.2 million, up $22.7 million, or 18.7 percent from the same period a year ago.
Last 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.
In the quarter, interest income reached $2.4 million, up from $1.8 million a year earlier. Following the loan sale, net loans finished the quarter at $88.25 million, virtually unchanged from a year ago. Total deposits increased by $17.3 million, or 16.5 percent, to $121.8 million.
Annualized return on average assets (ROA), a ratio of profit to assets, reached 2.20 percent at quarter's end. A year ago, it stood at 1.42 percent. Annualized return on average shareholders' equity (ROE), a ratio of profit to equity, was 22.56 percent for the three months ended March 31, 2006, up from 14.53 percent a year earlier.
More than 750 similarly sized U.S. banks reported an average ROA and ROE of 1.13 percent and 12.07 percent, respectively, according to a Federal Deposit Insurance Corp. survey as of December 31, 2005.
For the third year in a row, Mission Oaks was named a Super Premier Performing Bank in 2005 by Findley Reports, a 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 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.
The Mission Oaks National Bank company logo is available at http://media.primezone.com/prs/single/?pkgid=471
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 BANCORP
FIRST QUARTER REPORT / MARCH 31, 2006
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BALANCE SHEET
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(all amounts in whole dollars except share and per share information)
Increase Increase
March 31, 2006 March 31, 2005 (Decrease) (Decrease)
-------------- -------------- ---------- ---------
ASSETS
Cash and due
from banks $ 3,569,000 $ 2,852,000 $ 717,000 25.1%
Certificates of
deposit in
other banks 5,832,000 693,000 5,139,000 741.6%
Federal funds
sold 5,836,000 1,235,000 4,601,000 372.6%
Investment
securities
available
for sale 30,284,000 21,897,000 8,387,000 38.3%
Loans 89,517,000 89,848,000 (331,000) -0.4%
Less allowance
for loan losses (1,263,000) (1,160,000) (103,000) 8.9%
------------ ------------ ------------
Loans, net 88,254,000 88,688,000 (434,000) -0.5%
Premises and
equipment 852,000 486,000 366,000 75.3%
SBA-Loan
servicing
asset/interest
only strips 808,000 954,000 (146,000) -15.3%
Cash surrender
value of life
insurance 2,754,000 2,651,000 103,000 3.9%
Real estate
owned 2,958,000 0 2,958,000
Other assets 3,073,000 2,070,000 1,003,000 48.5%
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$144,220,000 $121,526,000 $ 22,694,000 18.7%
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LIABILITIES AND SHAREHOLDERS' EQUITY
Demand deposits $ 37,526,000 $ 30,405,000 $ 7,121,000 23.4%
Interest
bearing
deposits 84,331,000 74,190,000 10,141,000 13.7%
Borrowings 5,672,000 4,000,000 1,672,000 41.8%
Other
liabilities 1,728,000 1,110,000 618,000 55.7%
------------ ------------ ------------
Total
liabilities 129,257,000 109,705,000 19,552,000 17.8%
Total
shareholders'
equity 14,963,000 11,821,000 3,142,000 26.6%
------------ ------------ ------------
$144,220,000 $121,526,000 $ 22,694,000 18.7%
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STATEMENT OF INCOME
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3 Mos ended 3 Mos ended
March 31, 2006 March 31, 2005
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Interest income $ 2,439,000 $ 1,832,000
Interest expense 563,000 330,000
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Net interest income 1,876,000 1,502,000
Provision for loan losses 72,000 110,000
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Net interest income after
provision for loan losses 1,804,000 1,392,000
Noninterest income 1,170,000 657,000
Noninterest expense 1,655,000 1,354,000
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Income before income taxes 1,319,000 695,000
Provision for income taxes 531,000 276,000
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Net income $ 788,000 $ 419,000
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Average common shares
outstanding 3,974,750 3,887,724 (a)
Net income per share-basic $ 0.20 $ 0.11 (a)
Return on average assets
(annualized) 2.20% 1.42%
Return on average equity
(annualized) 22.56% 14.53%
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SELECTED RATIOS
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March 31, 2006 March 31, 2005
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Leveraged capital ratio 10.50% 10.00%
Total risk based capital ratio 15.86% 13.56%
Allowance for loan losses as
a percent of total loans 1.40% 1.28%
Nonperforming assets as a
percent of total assets 2.05% 0.00%
Loan to deposit ratio 73.94% 86.91%
(a) Adjusted for September 1, 2005 two-for-one stock split